Leadership Styles in Cadbury and Nestle: A Comparative Report

This report provides a comparative analysis of the leadership styles employed by Cadbury and Nestle, two major players in the confectionery and food industries. It begins with an executive summary outlining the report's key findings, followed by an introduction that emphasizes the significance of leadership in organizational success. Task 1 delves into various leadership styles, including participative, autocratic, transactional, and laissez-faire approaches, providing definitions and examples. Task 2 offers a direct comparison of Cadbury and Nestle's leadership styles, highlighting their strengths and weaknesses, particularly in areas such as innovation, customer focus, and pricing strategies. The report also examines the behaviors and characteristics of leaders within both companies, discussing how these traits contribute to their respective outcomes. Finally, the report concludes by summarizing the key differences and similarities in leadership approaches, offering suggestions for improvement and emphasizing the importance of adapting leadership styles to meet the challenges of the competitive market.

Human Resource
management

Executive summary
Leadership is an important aspect of organization and thus they are also known with
pillar of company who manage different employees and provide direction to have an right
direction of working in better manner. Leaders are those who help in attaining the goals and
objectives in great way too. In this report comparison in between the Cadbury and Nestle is
going to be done which will help organization to know that what type of changes and
improvement needs to be bought in Cadbury so that cut throat competition can be faced in proper
way. Moreover leaders are have different features which they show according to the different
situation in organization and they are considered as important criteria of firm which help to
motivate the employees in great way. Normally assignment will include the different and various
theories that make leaders to face any kind of situation and problem in great way as with theories
risk can be minimised and effective working can be done in entity too. Nestle is considered as
main competitor of Cadbury and make business to change their policy and procedure so that they
can have a win win situation in market but Cadbury is that firm who make research of
environment and then make strategy and decision to fight with different situation in company
too. Apart from all such suggestion are also provided to entity which has helped them to have
improvement in their working scenario and with this business can work in proper way too and
can attain the goals and objectives of organization in right format too.

Table of Contents
Executive summary .........................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Different leadership style of organisation...................................................................................1
Comparison of leadership styles within Cadbury and Nestle.....................................................3
Behaviours and characteristics of the leadership in Nestle and Cadbury...................................6
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Leadership is an art of motivating large group of people for act towards achieving desired
goals and objectives in proper manner. It is necessary for inspiring others and being prepared.
Thus, it has been assessed that effective leadership is totally based on creative ideas and
thoughts. Leaders need to be communicated with other person for identify their followers issues
and problems (Alfes and et. al., 2013). In an organisation, a leader is the inspiration and director
of specific action. Within the business, effective leadership are those who help in increasing their
firm bottom lines to that point where leaders hold their responsibility in proper way. Along with
this, they are also liable to manage and maintain all the resources of their company.
Cadbury is the multinational confectionery company which is operated and regulated by
Mondelez international since 2010. In fact this is the second largest confectionery brand in all
over the world. The company is operates in more than 50 countries and it is also known as dairy
milk chocolate, the Creme egg and Roses selection box and many other products. On contrary to
this, NESTLE is a major competitor of Cadbury which is also engaged in producing food and
drinkable commodities. Moreover, it also considered as a one of the largest food company at
global marketplace. They offer various products such as medical food, bottled water, baby food,
coffee and tea, ice cream and some other items.
Therefore, assignment is going to highlight and understand the comparison of different
leadership style of two companies which enjoy desirable or undesirable result or outcome.
Furthermore, evaluation of characteristics and behaviours of leadership in an organisation is also
outlining in this project as well as explain how they led to the outcome. At last, relevant theory
related with leading an enterprise is also discussed in this report for acquiring depth knowledge
on leadership styles of two competitors.
TASK
Different leadership style of organisation
A leadership style is that style of leaders which provide direction, path, implementation
of plan and encouraging people. Leading style is conducted in the business for managing and
maintaining employees and also motivate them for doing effective work to achieve desired goals
and objectives (Batt and Colvin, 2011). The leaders intellectual capacity assist in solving major
issues and getting knowledge for doing job.
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Various leadership styles:
Participative leadership style- It is also known as democratic leadership style. This style
is help in valued the team members and their peers who work for them. But their main
responsibility is to make final decision with the participative leaders. When company required
for making changes in the organisation then participative style assist employees for accept
changes because they are play an essential role in this procedure. If an organisation adopt this
style so their employees are capable for taking participation in company decision making
process. Also they will take appropriate decision towards achieving desired goals and targets in
effective manner.
Autocratic leadership style – In this leadership style, company manager allow to take
decision alone without participation of any other member. Autocratic leaders make choice which
is based on their opinion and judgements and mainly they accept advice from their followers.
This involves independent, authoritarian power over the large group. No one challenge the
decision of autocratic leaders (Buller and McEvoy, 2012). There are some countries which are
operated under autocratic style of leadership such as North Korea and Cuba. This type of
leadership style gain advantages from their employees and creative staff members perform
effective function in proper manner. This style of leadership can be advantageous in some time
period, such as when decisions required to be made in fast manner without consulting with large
group of individual. At some instance, when leader is one of the most skilled and educated
person in the company then it lead towards for rapid and make effective decisions which help in
getting desired goals and targets.
Transactional leaders- An organisation managers using transactional leadership style
which receive some tasks for performing and providing rewards to team members which are
based on performance result. Team members and managers set their pre determined targets and
employees are agree to follow all major direction and management of leadership for achieving
desired goals and objectives of an organisation. The managers have ability and power to review
outcome or results and train their employees when team members fail to reach with desired goals
and objectives (Campbell, Coff and Kryscynski, 2012). A transactional leader is those person
who value order and structure. They are operating military manages big organisation, or lead
towards for doing international projects which need effective rules and regulations for complete
their desired targets and goals. Such type of leaders are totally depend on self motivated people
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who are doing work for achieving desired targets. Employees receive rewards and awards such
as bonus when they accomplishing desired goals and targets for an organisation. If firm will
adopt or use this style of leadership,then they can easily motivated their employees who works
well in organisational structure and operated environmental place. Transactional style desire for
inspiring and motivating people which directly or indirectly affect on others. In this style, the
leaders promote their compliance by followers with the help of both punishments and rewards.
Laissez Faire leadership- A laissez faire leadership is also called as delegative leadership
style, in this form leader are turned their hands and allow team members for make effective
decision for the company. This will also help in leading towards lower productivity among large
group of members. These type of leaders are seek to provide most achievable direction and
guidance to their team members in better manner. If an organisation adopt or use this style of
leadership so this will know their dominant leadership style which can help in understanding
their strength and desired weaknesses (Choi, 2011).
Comparison of leadership styles within Cadbury and Nestle
CADBURY NESTLE
Democratic leadership style:
 Cadbury management style is
democratic. This will happen when all
the employees work together as a
group. In this firm, manager listen to
their other staff members ideas and
opinions before they go ahead for
making effective decisions. By
adopting this style, they can easily fund
different ideas which has to be
achieved and reach towards them in
effective manner.
 This leadership style help Cadbury for
take care and listen to everyone who
involve in the teams views. This
Innovation and lead to winning:
 A leadership style of nestle help in
achieving and accomplishing desired
actions. It is based on nature of
situation and culture of specific
environment for adopting appropriate
leadership style. They lead towards
innovation and make creative products
for their customers.
 Nestle promotional and distribution
channel is very weak as compare with
Cadbury organisation and it is not very
popular in compare with Cadbury
organisation.
 They always make and develop new
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leading form help in motivating
employees morale for take participation
in the decision making process.
 This style of leadership is good for
Cadbury because it help in motivating
their employees with having ability and
have to participated in decision making
process (Clark and et. al., 2016). By
adopting or using this style, any
company team members identify
essential goals and developing
strategies and process for achieving
desired goals and targets in better
manner. Such type of leaders are totally
depend on self motivated people who
are doing work for achieving desired
targets.
 Cadbury firm provide pure chocolate
products which attract large number of
customers. Also they does not mix any
harmful material in their effective
products. An organisation prefer their
customers at top priority which help in
gaining maximum profitability as
compare to nestle company.
 Cadbury promote their products by
using different sources such as
advertisement, Facebook, twitter,
YouTube, etc. The pricing strategies and policies of
this company are remain same, there is
type of products whether they suffer
from high risk or loss. They mainly
deal with making latest and new goods
which are considered as innovation.
 It lead towards for win the profitability
and productivity. They think that if they
manufacture new product, they acquire
experience.
 Nestle products are mainly made by
powder which does not suitable for
each type of customers. This will
reduces the customer base who
purchase products from the firm.
 As compare with Cadbury, Nestle
organisation always change their
pricing strategies which reduce the
customer base and their buyers lost
trust and loyalty towards organisation.
They make innovative products but
they does not have fear for their
innovation product like or dislike by
customers. Still they are make and
develop creative products on regular
basis (Daley, 2012).
 The promotion channel which are used
by them are not effective in any
manner.
 Nestle company leaders are focus on
innovation and creativity not
concentrate on customers demand and
needs.
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no change in their products cost which
attract their desirable customers. This
will increasing their customer base
which help in gaining maximum
profitability and productivity of an
organisation.
 The company employees work for
reaching with their targets and goals in
proper manner. Nestle have not such
power and ability for gaining attention
of more buyers towards their
innovation and creative products and
services. They always use innovation
style of leadership which main aim is to
win the goals.
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Behaviours and characteristics of the leadership in Nestle and Cadbury
Leadership is an action of leading group of individual or business firm. This person
guides and leads staff members in an organisation. Under this included developing clear vision,
giving knowledge and information in order to realise vision, sharing developing vision with other
staff members in a proper manner (Aasland and et. al., 2010). Leader plays a necessary role in an
organization in order to make its successful. This person influence the behaviour as well as
attitude of other people so that they can work towards making business successful. Cadbury and
Nestle both are successful business firm as well as main competitors. Under this, there is a
critical evaluation of characteristics and behaviours of both firms. Behaviour as well as
characteristics of leadership of Nestle and Cadbury organisation below as above:
Behaviour of leadership in Cadbury
Cadbury is multinational confectionery organisation and it is a second biggest
confectionery brand in all over the world. Leaders are those people which provides guidance or
show right path to people which are working for company in order to achieving set aims and
objectives with in specific period of time. It is necessary that behaviour and attitude of labour
should be good or understanding. Leadership should understand feeling and sentiments of each
team members and always motivate them to work hard and well. With the help of this, all team
members will work in achieving common target and enhance their performance level. Their
perception towards company will be good and also will retain at workplace for long period of
time (Andreescu and Vito, 2010.). All the products of Cadbury firm are at growing stage and
their sales are more high. Under this organisation each and every staff member work together.
Leaders suggest the right direction to employees so that they can work towards making the
business firm more successful. Under this organisation, leader provide support to employees and
from this they feel that they are the necessary part of firm. In addition to this, in Cadbury
company leader takes advice from its team members about specific topic or project. All the
people give their different opinions as well as perspectives regarding that particular project. Then
leader selects the best one which will be suitable for an organisation and enhance its productivity
level. This person also includes its staff in the process of decision making.
Behaviour of leadership in Nestle
Nestle is transactional drink and food organisation and it is a largest food firm in all over
the world in terms of sales and revenues. It deals in large number of products such as chocolates,
6

snacks, baby food, confectionery, bottled water, dairy items, pet foods and many others. Leaders
are responsible to give better guidelines which are responsible in making business organisation
successful. Some products of this firm is at declining stage and the sales of those goods as well
as services are not more. Under this firm, leader is not much supportive as comparison to
Cadbury organisation. So, firm faced many issues related to this like for an instance lwo market
share, minimum sales, reduced profit and many others (Bolman and Deal, 2017). The leader of
this company does not enhance motivation level of employees and does not talk with them to
know their issues, opinions as well as their ideas. From this, they are demotivated and do not
sustain at workplace for long time period. Demotivation is a main cause of decreasing
productivity, profit, performance of team members etc. Leader does not coordinate with
employees so that there is a gap among team members and leadership which affect on
performance level of people and organisation in a negative manner. So, the leadership behaviour
of Nestle firm is not good as comparison to the Cadbury firm.
Characteristics of Leadership
An ability to interact is definitely characteristics most individuals which are associate
with better leadership. Under this leader requires to able to interact its clearly vision in context to
accomplish set targets or vision and also motivating other people on firm. Leader of Cadbury
firm is very supportive as well as coordinate as comparison to Nestle organisation.
Basis Cadbury organisation Nestle firm
Honesty It is a necessary ingredients which
makes good leader. Under this, it is
necessary that leader should be honest
towards their work and show honesty
in order to achieving the set targets
(Buyl and et. al., 2011). In addition to
Cadbury organisation, leader of this
first is very honest towards work and
accomplish set target on given period
of time in a systematic or proper
manner.
As comparison to Cadbury firm,
leaders are not serious as well as
honest towards work. So goals of this
firm is not achieve on set time period
and negatively impact on development
along with profitability level of firm. If
leaders will not honest and serious
towards work then team members will
not also take interest in business
activities.
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Confidence To became a better as well as
effective leader, there should be
confidence in order to assure follow
commands to others. If in case leader
will be unsure regarding own qualities
and decisions then subordinates or
team members will not follow leader.
Leadership of Cadbury company is
confident about their work and follow
all the commands, responsibilities in
an effective and better manner. The
subordinates learn many things from
their leaders.
Confidence enhance productivity and
profit level of business. Under Nestle
business firm, leaders are not confident
towards their work and firm. They take
work for granted (Dewettinck and van
Ameijde, 2011). From this, interest of
other team members goes down and
they do not work in a systematic or
proper manner.
Good
Communicator
It is essential that a leader should be a
better communicator and should share
vision to team members so that they
can make their focus towards
achieving them with in specific period
of time. If in case leader will not good
communicator then its results or
outcomes will be bad. Leaders of
Cadbury firm interact with its staff
and communicate with them in better
manner (Larsson and Vinberg, 2010).
They guide them properly so that
team members can make their focus
on common goal.
If communication will not be proper
then there will be less coordinated
among the leader and staff members.
From this their motivation level
decreased. It is necessary that
leadership should understand feeling,
listen problems of team member and
make them better solution if in case
leader will not do these things then it
develop negative affect in the mind of
employees. As comparison to Cadbury
firm, leader of Nestle organisation is
not a good communicator and does not
interact with its staff members in
proper manner.
Capability of
decision
Leaders should always take decision
in favour of business. Decisions
Nestle company leader does not take
better decision. It is necessary that
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making which are taken through leaders of
Cadbury firm have develop positive
impact on business. They take correct
decision on right time which will be
beneficial for firm along with team
members. Before taking final
decision, leader of this firm consult
with its stakeholders. It develops
positive affect on business activities
as well as activities.
leadership should take good decision in
favour of company as well as
employees but under this organisation,
leader give not more importance to its
team members and does not include
them in process of decision making
(Piccolo and et. al., 2010 ).
Ability to
inspire
Under this, for making performance
level of team members better, it is
necessary to inspire them so that they
will work by contributing their skills
as well as activities. It will be helpful
in enhancing their motivation. In
regards to Cadbury firm, leader
inspire staff through rewards,
incentive etc. These all are the better
ways to motivate team members.
Better inspiration is helpful in making
a person as well as organisation
successful and motivated. But in Nestle
company, leader does not inspire its
team members and it is a main cause of
their demotivation and decrease
productivity of firm.
From the over all discussion, it has been concluded that behaviour as well as
characteristics of Cadbury firm's leader as comparison to Nestle company. The leaders of
Cadbury organisation are more supportive, their behaviour is good, coordinate, problem solver,
good communicator which enhance motivation as well as performance level of team members
and they work works achieving set targets and aims of firm. On the other hand leader of Nestle
firm is opposite of Cabdury's leadership (Price and Weiss, 2011). Under this leader gives not
more importance to its team members and does not take their opinions, listen their problems.
From this misunderstanding along with miscommunication arise between leadership and team
members. It also affect productivities as well as profit level of firm.
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Outcomes which come from over all discussion is that characteristics and behaviour of
Cadbury organisation is good in comparison to Nestle firm. In context to this there is a need to
Nestle organisation to make improvement in its leadership concept and also make improvement
in its leadership behaviour. It will be helpful in future for making the business firm success and
staff members will retain at workplace for long time period.
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Comparison of leadership theory of Cadbury and Nestle
Leadership plays a key role in managing business activities of organisation. It gives direction for
controlling, decision making, regulating, analysing of different factors in business organisation.
Both Cadbury and Nestle adopt different leadership theory in their business activities to perform
better in business market (Dul, Ceylan and Jaspers, 2011).
Leadership styles in Cadbury.
Leadership theory Definition Interpretation
Trait theory It is a type of theory that is
used to determine personality
of human being. It identify
traits that includes habitual
pattern, emotions and
behaviour and analyse ability
and potential of a person to
perform activities in
organisation (Fulton and et. al.,
2011).
Cadbury always focus on
making a positive environment
by making a strong bonding
with their workforces. By
better analysis of different
psychological factor company
have been able to direct their
workforces in an fettucine
manner.
Participative style of
leadership (Lewis's leadership
styles)
In this type of leadership under
which leaders give
opportunities to their
workforce to participate in
activities of organisation. This
helps employers to give their
innovative ideas that will
certainly help organisation in
their business activities
Leader and managers are
enthusiastic to share ideas of
business activities with their
employees by arranging some
brainstorming sessions and
seminars so that they can
collect some in notative ideas
and implement in their
products. For example they
have launched Cadbury bubble
in Cadbury silk range that is
performing very well in

market. This idea was
generated through
brainstorming session.
2

Situational type of leadership It is a type of leadership theory
that that defines capability of
leader to adjust their
leadership according to
situation. This theory was
developed by Kenneath
Blanchand and Paul Hersey.
Cadbury have analysed that
they are performing their
business in imitative business
environment. So adapting to
situation will help them to
grow in market. For example
company is dealing in
confectionery product but they
have analysed that making
some more food items will
enhance their productivity in
market, so that have planned to
make Oreo (a biscuits) , that
turned out to be largest selling
biscuit (Guest, 2011).
Transactional style of
leadership
It is a type of leadership that
primarily focus on
performance, organisational
supervision is important in
organisation because it helps
in controlling activities of
organisation
Cadbury use this type of
leadership in leadership in
their business activities to
control functioning of
organisation so that they can
help functioning of their
organisation. The company is
having their grass roots in all
over the world so by adopting
this strategy they can be able
to to increase their
coordination in performing
business activities.
Trans formal leadership It is a style of leadership that
defines leaders approach
Leaders in Cadbury make
business policies by discussing
3

towards their subordinate.
Under this leadership style
leaders work in coordination
with their subordinate and
carry out their work in
efficient way (Jabbour and et.
al., 2013).
their policies with their
subordinate so that they can be
able to increase their potential
in market. For example
manager have truly
concentrated on making
effective design of throe
chocolate so that it can have
psychological impact on mind
of people to buy their product.
These are some of the leadership styles that are efficiently followed by Cadbury to
increase their dominance over business market of organisation.
On the other hand Nestle is adoption several theories that has helped them to maintain
their business activities (Jiang and et. al., 2012).
Leadership theory Definition Interpretation
Contingency theory This theory states that there is
no better way for making
decision, leading and
corporation instead it believe
in course of action
Nestle is dealing with nutrient
of products all over the world,
so it is very tedious for them to
make planning for every
activities so for some products
they make strategies according
to situation. For example in
analysing sales volume of baby
food they record data number
of birth instead of deeply
analysing number of birth
(Kakuma and et. al., 2011).
4

Transcriptional type of
leadership
Nestle also used to evaluate
performance of workforce in
organisation so that they
canmonitor activities of
workforce in different market.
The company has understood
that to increase their sales
volume in different market
they have hire local people to
increase their values in market,
so monitoring for better
performance activities are
necessary (Kehoe and Wright,
2013).
Situational leadership Nestle is doing business in
market all over the world, so
they cannot do business with
5

same approach in throe
business activities. Managers
of company have been able to
increase their values in
different market by planning
accordingly to need and
demand. For example in
distant geographical
boundaries like in Africa and
Europe demand and
consumption of baby food are
different.
Suggestion for improvement
It is observed that both the company are using almost same kind of leadership theory in
their business activities. They have increase their business all over the world with these kind of
business activities (Kakuma and et. al., 2011). But company has to focus on several area to
increase their dominance in more geographical areas. Cadbury is using trait theory in analysing
behaviours and attitude of people adding to that they must plot a graph for their behaviour and
monitor it regularly. Over the long journey company is only doing business in confectionery
products with an efficient workforce they can be able to increase number of products and
increase their business. On the other hand Nestle is performing their business with variety of
products so they must plan and concentrate on each product to increase productivity. Being a
large organisation it is difficult for leaders to connect to their employee. So company can make
effective strategies to increase connection between employee and employer. That will create
more positive environment. The business s environment changes very so leaders must be skilled
enough adapt to change, for doing so companies can plan training and development plan of top
level management also so that they can it can increase their potential (Meredith Belbin, 2011).
CONCLUSION
From the above report, it can be stated that leadership is that which help company to
attain its goals and objectives in perfect way and even leaders are those who use various
6

leadership styles in different situation which make them to overcome the risk associated with any
task in organization. In various company different kind of leaders are there who have distinct
feature as well and leaders are those who manages everything in better manner and direct the
employees in right direction so that increase in level of performance of different companies can
be seen. Although various theories is being included to understand the aspects of leadership in
proper way, even Cadbury leaders are very effective as if any changes occurs in environment
then they motivate their employees in great way that help in having exact working in
organization as well. Great leaders help entity to have an desirable outcome and make firm to
perform in right context too. Moreover, various problems has been also discussed and their
solution are also provided in proper format. There was difference is made in between the
Cadbury and Nestle and among those Cadbury was taken into consideration and better analysis is
done on such company.
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