Evaluation of Cadbury's Operations Management Decisions

This report evaluates the operations management decisions made by Cadbury, including production, supply chain, logistics, location strategies, quality control, and human resources.

Business Administration

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
A. Key functions of business operations .....................................................................................3
B. Introduction and brief description to the company-................................................................4
D. Evaluation OF Company Operations......................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business operations is refereed to as activity which businesses engaged in on the daily
basis for enhancing value of company and gains huge profit. Activities can be optimized for
generating efficient revenue for covering expenses and earning profits for business owner.
Employees can accomplish business goals by performing certain functions such as accounting,
marketing and manufacturing etc.,
Cadbury is the multinational British confectionery organization which is wholly owned
by Mondelez International. It was established in 1824. The above report includes explanation to
major function of business operation. Introduction to selected company and brief description of
it. Report further carried forward with evaluation of company's management decisions. The
report ends by accessing their performance and how they can improve it further.
MAIN BODY
A. Key functions of business operations
Business operations are defined as the activities in which business engaged on routine
basis for enhancing its profits and enterprise value. The key business operations of Cadbury are
as follows:
Sales: The first business operation of the organisation is to sale its products to its different
operating regions. The function of this operational activity is to achieve the desired profit goals
so that operational expenses and other profit targets can be achieved. The sales function also
include selection of potential location, sales strategy, related decision making and goal setting for
the profits so that organisation can work in desired direction.
Marketing: The marketing operation of the organisation aims at exploring various aspects
related to product and services so that sales and brand value can be maximised. Marketing
activities includes promotional events, pricing strategy, product specification and other
marketing strategies. The function of these operations is to improve the public awareness about
the brand and products so that organisation can gain competitive advantage for long term success
(Grayson and Hodges, 2017). Marketing operations of the Cadbury also help to evaluate the
effectiveness of organisational strategies so that its competitiveness can be increased.
Production and logistic: This operational unit is responsible for producing the final products of
the Cadbury and to supply them to different suppliers and distributors. The key function of this

operation is to ensure that high quality products are produced and delivered to customers on
time.
Raw material and procurement: The function of this operation is to regulate that all necessary
raw materials are available in right quantity and are of good quality so that high quality goods
can be produced. The operation is very important as it affect the operational cost of the firm and
can also influence the timely production and delivery of goods.
Service: The service unit of Cadbury focus on improving the service quality. The department
ensures that customers and employees does not face any issues in service quality and service
aspects. The primary function of this operational unit is to ensure that customers does not face
any issue in the service or product quality so that profit goals and customer loyalty can be
achieved.
Quality control: One of the key operation of organisation is quality control. It is the
responsibility of the Cadbury to ensure and monitor that its products meet all quality and other
relevant health and safety regulations (Hazen and et.al., 2018). The failure of this operation can
lead to unsafe or dis-satisfactory products and can also have adverse impact on service quality. It
is vital for the organisation to develop a brand image which delivers good quality products for
improving customer experience and brand equity.
The integration of all these operations is necessary for the organisation to grow and to achieve
desired success and profit objectives.
B. Introduction and brief description to the company-
Cadbury was founded by John Cadbury in Birmingham, England in the 1824. Company
is the second biggest confectionery brand across the world. It had its international headquarter in
West London and Uxbridge which operate around 50 countries globally. The company conducts
business activities in confectionery industry. Number of employees which are employed by
company are 71,657. It is popular for its well known Dairy Milk chocolate, Roses and Creme R|
Egg selection box and many more confectionery goods. Cadbury is fastest and rapid growing
British company among all national and multinational organizations which are engaged in the
well known milk and dairy products. In 2010-2012 it was acquired by Kraft Foods and then
further followed by Mondelez International which operate company from 2012 till present. John
Cadbury was one of the ten child of Richard Tapper Cadbury, prominent quaker who used to
sold coffee, tea and drinking chocolate (Bailey and Alexander, 2019). Further Cadbury was

developed the business with their brother Benjamin in the 1847. Richard and George had also
joined company in 1850 and had become second Cadbury brother for running business. During
the 21st century business is expanded to across more than 70 countries. There England office
covers the space of 84,000 square feet. Cadbury contains 70% of market share across the world.
Dairy Milk chocolate alone covers 30% of market share globally. The company manufacture and
market many various kinds of confectionery goods that are snacks, chocolates, candy, beverages
and gums. Cadbury had created strong distribution network which is helpful for company to
render products to their customer on time. They had created huge brand loyalty among their
consumer as they render high quality products to them and provides good taste and source of joy
to them (Price and et.al., 2018). The company had gained a huge success and had received Gold
Award for “Best Insights and Strategic Thinking” and Silver Award for “Most Effective Use of
Advertising”. Company is well performing their business activities and day by day expanding
over developing countries. They are implementing innovation in their product range for further
success in marketplace.
C. Discuss about the evaluation of Cadbury operations management decisions.
Cadbury is based on the leading company with outstanding portfolio of candy brands,
chocolate and other type of gum. In this way, it can be performed different type of operational
management which help for made proper decision making (Nordberg and Booth, 2019). There
are different types of operations performed within organization and also make an appropriate
decision for business development.
Production
Cadbury is mainly used the production process in order to add more values by using
efficient resources. It relays on satisfy the consumer need and requirement. The organization is
used the production process by using raw materials such as sugar. The production department is
mainly performed the function which responsible for turning input into finished (Nordberg and
Booth, 2019). In Cadbury, The Manager is responsible person for ensuring an appropriate raw
material that are provided and also made goods effectively. On the other hand, it also
implemented the strategies for selecting the best quality of raw materials and also helping in
decision making for production management within organization. It is important for make
decision that needed to plan, organise and control activities of process of converting input
finished items.

Supply Chain Logistics
It mainly refers to the storage, movement, services and flow of good or information
inside or outside of Cadbury. This type of supply chain operation is mainly focused on the
competitive advantage while logistics for meeting consumer to fulfil requirements. In context of
supply chain decision making, it is closely linked to the other type of corporate strategy so that
manager implement policies from design perspective in Cadbury. It helps for maintaining and
controlling the daily basis activities in supply chain. It useful for operational decision for
improving entire business functions.
Location Strategies
It is based on the plan and procedure for obtaining the optimal location for Cadbury by
determining requirement, objectives and particular locations where offering the services to
customer. In this way, Manger within organization implement or formulate location strategy
which are typically involves facilities and services (Bierstaker and DeZoort, 2019). In Cadbury,
manager will use strategy for decision making in location and also boost company’s long-term
objectives. on the other hand, it also supports for increasing demand of good and services in
multiple locations.
Quality control
Quality control is involving for purpose of testing the units and determine whether
specification for final product suitable or not. Its primary aim is to identify the need and
requirement of manufacturing process within organization. it also maintained the quality control
that meet expectation for consumers. In Cadbury, Manager will use Six sigma for decision
making in quality control and also consider as main part of generating better goods in global
marketplace.
Human resource
In term of decision making, Human resource plays important role in Cadbury for making
an efficient plan to improve information processing in business operation. It helps for increasing
accuracy in faster decision making for business growth and development. HR manager always
develop a strong relationship with other staff members for providing accurate information
regarding new product launch in marketplace.

D. Evaluation OF Company Operations
Three are different operations are performed by the Cadbury in order to maintain their
performance in the current market scenario. This is important for them to maintain effective
operations in the various operational areas to achieve business goals in the target market (Valdez,
Kurylo and Mancini, 2018). The functional department that are considered by the Cadbury for
better administration are-Production, Supply chain, logistics, location strategies, quality control
and Human Resource. These are major functional areas of Cadbury that can be taken for
administrative evaluation. These functions are part of business operations of Cadbury. The
decision takes by organization are more crucial for the performance of the company in the
market place.
Production department of Cadbury is most important functional unit for their business.
With the time there are different changes are implemented in the production department from the
time company was established (Kenyon, Meixell and Westfall, 2016). In the initial phases most
of the production department was manual and products of company are handmade but with
growth in size and market area there are different changes are implemented by organization in
production department. For better performance automation and digital technology is used by
company.
Supply chain is major function of the Cadbury. There are different technologies are used
together in the supply chain management process to meet the market demand. By implementing
different technologies like Block chain technology, artificial intelligence, information system and
automation are used by Cadbury to maintain the supply of its products in the target market. In
this process the tools used by the company are efficient and capable to provide product to
consumer with in time. Just in time approach used by organization help them to maintain their
inventory.
Logistics have also important role in the operations of company. The changes that are
implemented by organization are more important for the company. As the company is
performing business in the food and beverage sector so the technology that used by them should
be according to product requirements (Huo, Gu and Prajogo, 2016). Administration has take
various decisions that can improve their logistics department to maintain supply of food product
to client without affecting the quality of products. The market area selected by the administration
is based on the geographical strategy and diversity of company. The strategy used by

administration is well efficient to maintain the profit of organization. The area of business are
selected by the administration of company and the decisions that are taken by them are efficient
for the operations.
This is how the activities that are performed by Cadbury are best for inside and outside
operations of organization. These activities are also helping them to generate higher profit by
taking efficient decisions for various functional departments.
CONCLUSION
This report is concluding the importance of administration role in the business
organization like Cadbury. Various functions of organization has been discussed and analysed in
the report. The brief introduction of organization has been provided in the report in Order to
develop better understanding of its functions and operations. The critical evaluation of
administration decision has been made in report to check the efficiency of organizational
decisions.

REFERENCES
Books and Journal
Bailey, A.R. and Alexander, A., 2019. Cadbury and the rise of the supermarket: innovation in
marketing 1953–1975. Business History. 61(4). pp.659-680.
Bierstaker, J.L. and DeZoort, F.T., 2019. The effects of problem severity and recovery strategy
on managers’ going concern judgments and decisions. Journal of Accounting and Public
Policy. 38(5). p.106682.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Hazen, B.T. and et.al., 2018. Back in business: Operations research in support of big data
analytics for operations and supply chain management. Annals of Operations
Research. 270(1-2). pp.201-211.
Huo, B., Gu, M. and Prajogo, D., 2016. Flow management and its impacts on operational
performance. Production Planning & Control. 27(15). pp.1233-1248.
Kenyon, G.N., Meixell, M.J. and Westfall, P.H., 2016. Production outsourcing and operational
performance: An empirical study using secondary data. International Journal of
Production Economics. 171. pp.336-349.
Nordberg, D. and Booth, R., 2019. Evaluating the effectiveness of corporate boards. Corporate
Governance: The International Journal of Business in Society. 19(2). pp.372-387.
Price, M and et.al., 2018. From Cadbury to Kay: discourse, intertextuality and the evolution of
UK corporate governance. Accounting, Auditing & Accountability Journal. 31(5).
pp.1542-1562.
Valdez, G.D., Kurylo, J. and Mancini, D., 2018. Intermediate Managers Experiences:
Operational Performance Within Veterinary Clinical Institutions. International Journal of
Health and Economic Development. 4(2). pp.1-15.