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,
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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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