Cadbury Case Study: Risk Management in Business Operations

This case study examines Cadbury's risk management and procurement strategies, focusing on the challenges presented by the Cocoa Life program. The report analyzes the potential risks associated with the program, including consumer confusion, ethical trade concerns, and potential impacts on ...Read More

Case study of Cadbury
company

INTRODUCTION
Quality risk and procurement management influence the organisations to maintain the
flexibility in the structure and improves the performance of the business Procurement practices
in the company is best when company is making purchasing decisions by building relationship
with the suppliers and using proper technology(Fleming, 2019). Present study is based on the
company Cadbury that was founded in the year 1824 in England by John Cadbury. It is the
second largest confectionery brand operating in more than 50 countries. Report includes risk
management in Cadbury by developing risk management framework and evaluation of that
framework.
Review of the risk in the case study
Mondelez international parent company of Cadbury, plans to bring all the Cadbury lines
under there in-house scheme as Cocoa life. It is basically a sustainability programme as many
farmers are getting livelihood and it also strengthen their communities. A sudden fall in price of
the Cocoa have been seen from $3,000 to $2,500 but under Fairtrade rule farmers would not get
affected due to this program as they must get at least $2,000 per tonne as they are working
together to have secure future of Cocoa farming. With respect to investment and spendings
things are unclear for Cocoa life that whether the farmers will get influence over the prices they
will get for Cocoa(Barrientos, 2016). Mondelez- owned Cadbury products will carry logo of
Cocoa life on the packaging. Here a risk arise for the Cadbury that customers will get confused
and they will doubt about the standard of the products as ethical trade will not be there if other
companies drop Fairtrade. It is very risky if every company starts their own mark then consumers
will get confused in identifying the best. In this case, expansion of Cocoa life with respect to
Fairtrade's involvement may or may not give confidence to the consumers to buy Cadbury with
Cocoa life label as it is helping Cocoa farming community. Many of the people accuse Cadbury
for this trade movement. Another risk that may arise is related to quality of the product as
company may not quality raw material from the farmers as they were getting previously. This
may risk there product quality and customers satisfaction.