Business Environment Analysis: Cadbury and Organizational Structures

This report provides a comprehensive analysis of Cadbury's business environment, organizational structure, and operations. It begins with an introduction to the business environment and its impact on organizations, followed by an explanation of different organizational types, including public, private, and voluntary sectors, and their legal structures. The report then delves into the size and scope of various organizations, using BT Group and Cadbury as examples. It also explores the relationship between organizational functions and objectives, highlighting the role of research and development in Cadbury's operations. Furthermore, the report includes an internal and external analysis of Cadbury, identifying its strengths, weaknesses, and the positive and negative impacts of the macro environment, supported by examples. The report concludes with a summary of the key findings and references used.

BUSINESS ENVIORNMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explain different types and purpose of organizations; public, private and voluntary sector
and legal structure...................................................................................................................1
P2 Explain the size and scope of a range of different types of organizations........................3
P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure..................................................................................1
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................2
P5 Conduct internal and external analysis of specific organizations in order to identify
strength and weakness............................................................................................................5
P6 Explain how strength and weakness interrelate with external macro factors...................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment is effectively contributing in different internal and external
environment and their main factors are directly impact on whole performance of employees as
well as organisation (Hilton and Platt, 2013). This has been identified that these effects may be in
negative and positive manner. It is necessary for all corporation is to became more familiar about
these aspects before begin their required commercial activities and functions in particular
nations. In this report, they can also conduct PESTLE analysis and also identify major business
components in proper manner. At the same time, firm also require to understand about their own
strength, weaknesses, opportunities and threats for achieving desired goals and targets. This will
be helpful in improving their capabilities and abilities by converting imperfection in effectively.
SWOT analysis required to bring out by organisation. The project is based on Cadbury which is
multinational company and offer different products and services such as dairy milk, chocolate
and some more.
TASK 1
P1. Explain different types and purpose of organizations; public, private and voluntary sector and
legal structure.
Public Sector Organisations
In this type of sector, most of agencies runs by government. These type of agencies
mostly works to improve standardisation of nation people. Along with this, they do not work for
making profit but to deliver things like transportation, roads, education, electricity health
institutes and so on to common people. BT Plc Group is being taken under this which is a British
telecommunication organisation (Welford, 2013). Taxes and fees are some type of funds that
helps these firms to run and to deliver their services or products to citizens of United Kingdom.
When it comes on expanding it has been located private firms rapidly raises up than public.
Legal structure: Legal structure in public sector are given below: Central government: Under this, the decisions are being taken by management of this
type of sector for all nation. Legal polity at this stage makes determinations and then both
state and local governmental agencies needs to follow them. State government: Power that this type of government has limited in nature. Mostly, they
take support from central government and when it comes make determinations it is
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essential for them to first take suggestions from central government and then comes to a
conclusion.
 Local government: As central government cannot make decisions at both small and big
level. Therefore, this type of agencies helps in improvising living standards of common
people in a smaller area like cities. Determinations can be made by taking advice and
suggestions from both state and central government.
Private Sector Organisations
Any individual or a group may form a company which aims to make profit. They make
products and provide services to consumers in order to enhance the living standards of them.
They mainly focus on hitting their targets by rapidly making alterations in their goods which
directly puts positive impact on their both profitability and productivity (Wetherly, 2014). Sole
proprietorship, partnership, small and medium sized businesses are some elements that comes
under this type of sector. It has been located that private sector mostly affects the economic
growth of a nation. In today's market of UK, most of people are willing to open their business in
order to gain make profit. At the same time, they are offering jobs people who are in need which
directly improvising both living standards and economy as well. Cadbury company which is
producing chocolates for their consumer come under this type of sector.
Legal structure:
 Sole trader: An individual who is running business by his/her own without taking help
from any other person can come under this type of structure. It has been located that they
earn profit and maximum as they do not need to share it with any other person. But they
also carry high risk with them because it includes capital that they have earned.
 Partnership: This type of legal structure makes profit at its maximum level as decisions
can be taken by taking suggestions from each other and then come to a conclusion. But,
at the same time profit can be distributed among two or may be more people which may
reduce the earning level of one of the group (Moutinho, 2011).
Voluntary organisation
This type of firms usually works in order to improve living standards of people who are
in need. They deliver goods and services to persons without expecting monitory from them. Non-
governmental organisation (NGO) may come under this as an example. Along with this, funds
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can be raised by management of this type of firm through various ways. Like charity, events can
be conducted, organising marathons, quiz competition, rally and so on.
P2 Explain the size and scope of a range of different types of organizations.
Public Sector organisation
Public limited company- These organizations are controlled or run by governing bodies
by having limited liability. Basically, all the shares are freely sold or traded to the society with a
minimum shares funds of around £50,000. Moreover, public limited company is having PLC at
the end of their name which shows that they have limited liability.
British telecommunication is one of the leading companies in United Kingdom and is
providing services in fixed line, mobile and broadband. Apart from this they also give
subscription television and IT services. BT group was established in the year 1846 and gradually
has set its network across the globe. Currently it is operating in approximately 180 countries. In
terms of size the organisation has gradually enhanced their performance and have approximately
106,400 employees working in various centres. As a result, there revenues and net income has
increased by £24.062 billion and £1.908 billion respectively.
Vision of this organisation is to attain the best possible position in specific period of time
by providing better services and facilities to their customers. They are also focussing on making
products that will provide better communication in remote areas as well. Apart from this they are
trying to help customers by giving them best quality services so as to change the perspective
according to the world (Halbert and Ingulli, 2011). Therefore, an excellent team of engineers are
working on it by using appropriate tools and techniques so as to fulfil measurable objectives.
Mission of BT is to make their product unique form others so that customers can
differentiate between other rival companies. Other than this, they are trying to reduce the waste
so that environment is not affected by the entire process.
Private Sector Organisation
Private sector is all about acquiring maximum benefits by satisfying customer needs or
demands. Moreover, another name of these companies are profitable organisation as their motive
is to generate maximum revenue as well as trying to establish goodwill at marketplace. However,
private sector is classified into various types of companies which are discussed as follows-
Sole trader- According to this element, an individual whosoever are involved in a
business solely are falls under this category. In this organization, owner is liable for all the
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profits and losses because funds are belonging for entrepreneur only. For example; general
stores, Beauty parlour, repairmen, maintenance and so on.
Partnership- If two members are coming closer for opining an organization as well as
sharing liability or profit amongst them are falls under this category. They need to follow each or
every aspect of Partnership act and required to fulfilled deed. For example; two brothers are
going to launch a business together like ALDI which is a most successful company which was
launched by two brothers.
Private limited organization: - These organizations are having number of shareholders
and investors as well as registered under company’s act. Along with this, company is liable for
fulfilling each or every aspects of legal format in order to minimize the possibilities of errors and
mistakes.
International – These companies are having their platform across various global
marketplace for attaining maximum revenue as well as trying to gain more or more profits by
satisfying customer needs. They are focussing in grabbing the attention of foreign clients by
understanding their choice or preferences.
Global companies- Expanded across the nations and engaged in foreign trade which
automatically enhance their organizational performance.
Cadbury is a British confectionery company which is operating its business in around 50
countries worldwide. Organisation was founded by John Cadbury. They have approximately 10
manufacturing plants in which 71,657 workers are working day and night so as to give us the
best quality products. They are producing products like bars, beverages, ice – creams, biscuits
and many more. Thus, firms are acquiring around 4.5% of the whole market in United Kingdom.
Other than this, they are selling their products at reasonable rates which anyone can afford.
Vision of Cadbury is to work together so that they can win the loyalty of the customers.
Along with this they are trying to bring peace, equality and social justice amongst the people in
the society (Sena Ferreira and et. al., 2012).
Mission of Cadbury is to provide excellent quality of products to their consumers and for
this they are making variations in their ingredients. In order to provide the same company is
taking feedbacks and reviews form customers and as a result they are able to increase their
market shares and value as well.
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Therefore, the main motive of the Cadbury is to enhance the brand image in front of
customer so that they sustain their position for longer period of time. They are using different
strategies and plan of action in making their product different from others. Thus, it is enabling
them to give a tough fight to rival companies.
Voluntary Sector Organisation
Oxfam is a nongovernmental organization that works independently for the betterment of
people. Its headquarter is situated in England and their main motive is to give services in order to
eradicate poverty (Kelly and Scott, 2012). Other than this, they are providing basic facilities to
those who had gone through natural calamity in terms of funds, policy research. Therefore, they
are working not to gain profit but to help others.
Mission, vision and targets: Thus, there mission is to solve all the issues which are
related to poverty, injustice caused to people. Other than this they are providing education
facilities to those who cannot afford and doesn't have adequate amount of facilities.
Shareholders: They are the one who provides funds to the company so that they can
operate their business in a proper manner. Other than this, they provide with all related resources
which are essential for manufacturing goods and products. Apart from this, stakeholders are
playing a prominent role in decision making and as a result they are getting better results in
return.
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P3 Explain the relationship between different organizational functions and how they link to
organizational objectives and structure.
Cadbury is multinational company which is owned and operated by single person. All the
functions and activities are interlinked with core objectives and organisational structure. This can
be understanding by describing mentioned points that are as under: Research and development- This has been described that Cadbury is being spending
huge amount of income or revenue in their R&D department. Along with this, there are
different surveys which help in understanding about demand and needs of an individual.
It is essential without reaching with their satisfaction, so they can be increasing their sale
level in proper manner (Lee, Olson and Trimi, 2012). Thus, they are providing lot of time
and money for such chores which will get familiar about expected requirements of
suppliers and problems associated with their present services so by this such issues can be
solved in effective manner. Human resource management- This is main part of every department because HR
manager manage and control all functions in proper manner. For doing the same, they are
expertise and specialised human resource division in where company manager is
responsible for selecting talented and skilled employees by identified their attributes and
characteristics that includes educational, self-confidence, nature, qualification, speaking
quality effectively. After selecting talented employees, it is the responsibility of company
manager is to place training and development programmes for newly selected staff
members so they are becoming able for completing their effective job roles and
efficiency without facing such type of issues and problems for future time period. This
department help in providing employing for large number of personnel so they are taken
usage of online program. At some time, online interview is being conducted for saving
time and currency in effective manner. Production department- It is the process of production marketing and offer different
products to their retailers in the large marketplace (Rossi, Vrontis and Thrissur, 2012).
CADBURY main motive is to providing luxurious services or facilities to their customers
such as high quality based products, comfortable sitting and sleeping arrangements, loyal
employees, protective measures etc. so that large number of workers can easily attract
towards their services or facilities and mention them for travel from one place to another.
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It can be disclosed from this appropriate survey by this they will easily attempt for giving
some facilities for those groups who mainly belong to Islamic region of Ramadan. For
example, they primarily prefer to use them different variety of liquor and beverages and
food stuff for determining their festival. Along with this, Cadbury think regarding their
effective and new pricing strategies and try to make them flexible as per their present
marketplace and their main motive is to gain high competitive benefits (Pham, Segers and
Gijselaers, 2013). Under this circumstances, they are moving after provide services to
being the rivals and make efforts to build strong relation with their customers. Accounting and finance- It can be determined as risky and difficult process for doing
work so they will ignore small errors or mistakes that can change the entire scenario for
earning profit or losses which they are gaining by selling different goods and services
among their customers. Therefore, manage and handle all type of risk which assist them
in advanced technology so there is no mistake that can occur for measuring such revenue
or income. Also they will also know the cost of turnover which they required to get at the
end of the month. For doing this, Cadbury are using contemporary system with updated
software that includes Spreadsheet, Power point, MS word, Ubuntu etc. Along with this,
they mainly focusing on using different software system which are used for protecting
erogenous information and data in which no information can be leaked from their firm.
 Advertisement- For reaching the large number of audience, Cadbury is using different
sources such as Facebook, twitter, email, yahoo, YouTube, What's app and some more.
For using and adopting this digital apps, they are making aware about their newly
developed services which can be offered. Apart from this, there are different manpower
for performing in this firm and using such methods and techniques for doing effective
communication or communicate message from one division to another.
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
There is different impact which directly effect on macro factors in current business
environment, so Cadbury required to conduct PESTLE analysis. PESTEL analysis examines all
aspects from political, economic, social, technology, environment, and legal. These all factors
affect a business externally. These are discussed as follows:
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 Political – Political aspects concerns about government, security, taxes, stability,
spending. If government increases tax, then there may decline in demand. Cause it will
rise in its cost, that may be a reason of fall in demand. People can exclude it from
requirements. It is British owned company and brought by foreign companies. This
company known at a time for its power enjoyed by government by investment of foreign
capital. Its procedure determined in the UK when its government changed from Labour
party to Traditional democrat. Government being concerned about rising sugar tax, if tax
rates will incline this will pressure manufacturers to either raise rates or reduce amount of
sugar in product (Crane and Matten, 2016). That decrease chocolate bar size rather to
keep it in same size, so it can afford taxes and cost will remain same for users. Another
political factor is extending it to across boundaries. Economical factor – Recession was on peak in 2009, that's why UK economy was shaky,
it was recovering gradually. There was certain liquidity in market. But still Cadburry was
stable worldwide even after monetary was down. Cited firm cannot demand for more
loans due to high interest rates. Instead of recession it was able to increase in price from
30 percent with Dairy milk and Trident. Due to recess Kraft was able to purchase it at its
minimum value than actual economic value. Sale off to Kraft from originated company
will take products to a new direction. Its manufacturing shifted to Poland with cheap rates
and that makes Kraft to focus on profitable sales from company. Its recipes being
changed in this scenario and extended range of products also released. Social – Cadbury was initially owned by Quacker company that's why they were rigorous
with the use of alcohol in products like tea, coffee, cocoa. Chocolates a dissimilar
products have strong demand across world. Social impact on company is that it started
demanding from consumers. It begins with relative responsive to modifying customer
needs. it includes many chocolates under certification of its ingredients that is not
prohibited for any religion, but somehow it was a conspiracy that its products are not
certified and made with stuff which is not relevant to certain community. It drop-off in
size with health issues which change level of sugar in product especially for children
(Welter and Smallbone, 2011). Children intake reduces because of their health, as it was
advised to take nutrition value as it have in new products like Dairy Milk Nuts.
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 Technological factors- It is that factors which providing advantages to an organisation by
this it will help in using advanced technology Cadbury that can easily enhancing their
company productivity and its profitability level. At the same time, they can recruit or hire
employees by conducting online interviews with the help of video conferencing
alternatives. As per this result, it will assist them in recruiting large number of employees
in less period of time and this has been save lot of money and time for conducting face to
face interview sessions for doing this. At the same time, with the help of digital
technology, firm can also adopt proper machineries for make sure to protect their
customers as well employees. Along with this, increment in technological factors,
majorly enhance their competition in large marketplace so different ventures are
delivering same services at reasonable price. Technology has a great role in Cadburry
organization through research and development, manufacturing, storing it in cool space
because that can help to cure it from melting from heat. It also preserves from pathogens.
It also has evolution in social media market as Facebook, Twitter, etc. to communication
media with customers. It can take quick feedback. Technology helps to produce it at low
cost labour and according to requirements across boundary. It makes strong connection
between organizations and customers. It also using gaming apps to get engage users in
certain activities, so that ratio of business will not fall down. Environmental factors- In present day, global warming has become serious issues which
directly affect their people and upcoming generation. It is necessary for firm is to provide
accurate knowledge and information to their customers regarding effective products and
services in proper manner (Gharajedaghi, 2011). This will affect negatively on
corporation performance. For dealing with such situations, Cadbury should mainly focus
on minimising the egression toxicant fluid such as carbon dioxide which can be
ascertained in term of one of the major reason of global warming.
 Legal factor- This is necessary for each and every company is to follow all rules and
regulations which are made by government authorities. Thus, they require to
accomplished their work with the help of such policies and schemes. It will lead towards
for making adverse impact on cited organisation so it is not required for follow all rules
and regulations in effective way.
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P5 Conduct internal and external analysis of specific organizations in order to identify strength
and weakness.
CADBURY firm is multinational company which provide different products that includes
dairy milk, chocolate and some more. SWOT analysis help in providing within internal and
external performance that are as follows:
Strength- Cadbury is strong brand in their product portfolio such as dairy milk, five star,
Bournvita and others. They provide high quality based goods and services in proper manner.
They also charge reasonable price for such products and services. They also take position at the
large market place and gaining maximum profitability. Company provide a wide range of
products and services and has a global market presence within the company. String research and
development as well as innovation in the products like chocolates are creating stronger clients or
consumers for company. The organisation is more credible as well as premium brand quality.
Also this has a good presence as dairy Milk is one of major popular and broadly sold brand.
Weaknesses- The main weakness of Cadbury is that they do not their product from rural
area. At the same time, some cases which are happened that is based on quality of the products
where cockroaches and other rodents are found in this chocolates (Yoon, 2012). This is very
inexcusable for brand such as Cadbury for show some ignorance. Also they need to improve
their products quality in better manner and distribute various goods from several locations or
regions.
Opportunities- Emerging market may give the opportunity for Cadbury for increasing
their international share of market in different areas such as China and Russia. They gain
opportunities for increasing market share in USA which has been developed by sale of Cadbury
goods in different market place. They try to expand their business in many other locations and
places for enhancing profitability and productivity of an organisation. In rural market, they
penetrate rural market and distribution in rural market which can provide huge opportunities for
firm (Teece, 2012). This is present in international countries and if they distribute products in
rural market which help in maximising their turnover and profitability.
Threats- The major threat of Cadbury is to increasing in cost such as transport, fuel,
packaging and sugar in all over the world. This will directly affect by aggressive pricing
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activities and promotional activities from various rivals or competitors. The requirements of firm
products may directly or indirectly impact by enhancing concern regarding consumer and obesity
for became more health conscious. In case of increase in the raw material, this can lead to the
production cost increments to the company (López-Gamero, Molina-Azorín and Claver-Cortés,
2011). Also inflation can decrease the sales of company. One of the major threat that company is
facing is more health conscious people who are reducing the chocolate intake within the
company.
P6 Explain how strength and weakness interrelate with external macro factors.
It has been figured out that strength and weaknesses are two main factors that possess
direct impact on the macro factors that are available in the market which ultimately affect the
overall performance and functioning of the company. Both internal and external factor are inter-
related with each other in some manner. From the past 194 years, Cadbury is ruling the market
by operating their business practices in more than 50 countries all across the globe. As the
company headquarters in Birmingham, United Kingdom there are high chances that its entire
business operation may get affected by BREXIT. Due to ongoing political instability in UK,
barriers have generated for promoting its product in several countries. This is one of its biggest
weaknesses as the company holds large market share of UK. Any change or instability directly
affect the profitability of the company. As per the latest statistic report, it has been figure out that
Cadbury is having 8 factories only in UK which means they are providing large number of
employment opportunities to UK people. More than 3000 workers are currently working in these
8 countries which means 3000 of UK's local residents are contributing effectively towards their
economies.
Cadbury is famous for spending large proportionate of their income in its marketing and
advertisement campaigns. In-fact they promote their product taken into account the culture of
particular country that creates positive impact on general public. Talking about its another major
strength which is its strong R&D department which depicts that company is very well using the
innovative and advance technology. With the help of this, they can easily identify or figure out
diverse choices and expectation of customer. During ongoing UK's recession, the sales of the
company tremendously decreases but still they somehow managed to yield profit with some of
their product like Trident and Dairy Milk.
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Cadbury also gained popularity for strong product packaging and this is only being
possible because of implementing new innovative machine that blend coffee and cocoa gains in
short span of time and which Cadbury is utilising or spending on improving its packaging. The
firm possess strong distribution channel in the countries like UK, Australia, US. Any change in
political condition of these respective countries will going to affect the entire operations of
CADBURY either directly or indirectly. For example: The impact of Brexit will result in
lowering the demand of potential buyers which is not a good sign for country. In addition to that,
post Brexit, company needs to take permission all countries or rather they have to follow rules
and regulation of each countries that is now excluded from European Union. It creates much
complexities for them as it is little difficult to follow policies of each country when they are
habitual of following the rules and regulation of one whole single country. This illustrates that
Brexit has negatively impact the functioning and performance of Cadbury.
CONCLUSION
From assignment which has been discussed above, it has been summarised that changes
can be seen in business environment at marketplace. Thus, it is highly important for them to
organisations to keep on making alterations in their strategies and plans so that to hit their targets
for a longer period of time in much effective ways. Along with this, external and internal
environment are there which needs to be considered properly while making decisions. Away
from this, there are various sort of organisations and they also have different legal structures
from each other. Lastly, PESTLE and SWOT are two type of analysis through which proper
determinations can be made by Cadbury in order to gain competitive advantages at marketplace.
Profitability and productivity can get enhanced by hitting targets for longer period of time. If
managers are able to analyse internal and external environment, then it would assist them to take
imperative business decisions and support in grabbing better opportunities.
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REFERENCES
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University Press.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
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