Business Strategy Report: CADBURY Strategic Growth Planning

This report provides a comprehensive analysis of CADBURY's business strategy. It begins with an introduction to business strategies and their importance, followed by an examination of CADBURY's mission, vision, and objectives. The report then delves into a PESTLE analysis of the external macro-environment, assessing political, economic, social, technological, legal, and environmental factors impacting CADBURY. A critical analysis of these factors highlights their strategic implications. The internal environment is analyzed using SWOT and VRIO frameworks, evaluating CADBURY's strengths, weaknesses, opportunities, and threats, as well as the value, rarity, imitability, and organization of its resources. Porter's Five Forces model evaluates competitive forces. The report concludes with strategic planning for future growth, including a flavored CADBURY shake launch, incorporating various theories and a strategic management plan with tangible priorities.

Business Strategy

3Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Application of appropriate framework to analyse macro environment.................................1
M1 Critical analysis of macro-environment to communicate strategic decisions......................3
TASK 2............................................................................................................................................3
P2 With use of appropriate framework analyse internal environment capabilities.....................3
M2 Critical analyse of internal environment with assessing strength and weakness..................7
TASK 3............................................................................................................................................7
P3 With implementing porter's five force model evaluate competitive force.............................7
M3 Justify appropriate strategy to improve competitive edge and market position of an
association...................................................................................................................................8
TASK 4............................................................................................................................................9
P4 With applying different range of theories, conduct future growth planning.........................9
M4 Strategic management plan showing tangible and tactical strategic priorities...................12
D1 Critique and Interpret information with implementing directions for setting objectives and
tactical actions...........................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business strategies are the policies with the help of which organisation can perform their
operations in appropriate manner with consideration of external market. When there is proper
strategies, then it is easy for managers to get positive impact over it. There is requirement of
proper management of operations with the help of which workforce is able to understand policies
in better and effective manner. It is important and relevant for people to understand about
changes which are taking place, then it will be easy for organisation to deal with external
environment changes (Johnson, 016). This report is based on CADBURY which is one of the
well known organisation in chocolate sector. This is the organisation operating all over the
world, hence there is requirement of proper understanding about external environment. This
report covers which PESTLE analysis, SWOT analysis, VRIO analysis for internal capabilities
and external factors. With the help of porter's five force model information about competitive
advantage can be enhanced. Lastly different theories are used with the help of which strategic
future planning for launching Flavoured CADBURY shake can be done.
TASK 1
P1 Application of appropriate framework to analyse macro environment
CADBURY is the British multinational confectionery organisation. This is the
association who services chocolates, biscuits, beverages, etc. in specified quality with the help of
which people consider this brand and are more brand loyal. It is important for managers to plan
operations with the help of which they can get an synchronise way to conduct operations.
CADBURY is established in England in 1824 by John CADBURY, at that time this operation
deals in tea, coffee and drinking chocolate, etc. When success of business, their brother also
joined the organisation. Dairy milk chocolate was launched in 1905 which is prepared with the
help of good quality raw material (THE CADBURY STORY, 2019).
Mission: Mission is: Quality is the prime factors and regular improvement in products
with promise of assurance.
Vision: “Working together to create brands people love.”
Objectives: Objectives of CADBURY are as under-
 To enhance the working efficiency with the help of consumers get best quality products.
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 To improve the marketing strategies for launching new product through which 5%
increment in sales within 1 year.
 To maintain positive and long relations with stakeholders, so market share of CADBURY
can be maintained.
For studying external market of UK and its impact on CADBURY, there is use of
PESTLE analysis. With the help of it, it is clear that external policies are favourable and non-
favourable for organisation.
Political: There are many taxes which is implemented by UK government for
maintaining quality of products. It is important for managers to understand and abide it because
this reduces government interferences. Hence this might give negative impact on sales of
CADBURY. When there is increment in taxes, then cost increase and consumers reduces
(PESTLE Analysis of Cadbury, 2019).
Economical: There is less economic stability in UK due to which income of people is
also unstable. When there is increment in tax rates, then managers of CADBURY does not want
to avail money from external sources and people also does not incur income on luxury products.
Hence due to less economic stability, there is possibilities of negative growth of CADBURY
business (Thompson, Strickland and Gamble, 2015).
Social: There are many people in UK who prefers to take alcohol, coffee, tea, etc. due to
which there are possibilities that people does not prefers to take chocolate. There are many
people who are suffering from obesity, so in this case avoids chocolates and beverages. Hence it
is essential that lifestyle and taste of consumers have to be analysed. As trends and taste of
consumers are changing with rapid speed, so in this case launching of new product by
CADBURY is expensive.
Technological: With the help of new and latest technology such as use pathogen systems
and filing patents for heat-resistant chocolates which maintains quality and provide provide
product is less time. Hence with technological changes, there is positive impact on consumer
satisfaction as well.
Legal: There are many legal factors such as laws related to hiring of employees,
protection of property, etc. are covered under legal factors. There are many laws in UK which
have to be followed by managers through which their operations are authentic, so possibilities of
growth are more of them (PEST Analysis of Cadbury, 2019).
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Environmental: There are many environmental prospects which has to be considered
such as UV rays, fossil, smoke, etc. due to which environment gets affects negatively. Due to
excess use of technological machines, there is harm to environment which affects operations of
CADBURY negatively. So managers of CADBURY have to invest huge money in using eco-
friendly machines. This might affect cash flow of CADBURY.
M1 Critical analysis of macro-environment to communicate strategic decisions
After studying factors of PESTLE, it is clear that majority of components gives negative
impact so it is responsibility of managers to understand it. For instance: in case of political
factors, there are many taxes which has to be paid. So in this case managers of CADBURY have
to mange their cash accordingly and due to it, sales might get reduced. In case of technology,
there is use of new and latest technological which requires change in working style and requires
huge cost. Consumer taste and requirements are changing, so managers have to use pro- active
approach to deal with it. But in this case prediction might get wrong. Legal policies of UK are
tough and rigid, so in this case it is important to consider it other wise this affects brand image of
CADBURY. Hence it is clear that it is essential for managers of CADBURY to understand and
evaluate changes properly. There must be proper planning for finance through which business
operations of CADBURY does not get affected (Akter and et. al., 2016). There are some positive
aspects as well through which CADBURY can get positive outcome with making policies in lieu
of it. If there is change in operational efficiency because of technological changes, then
employees are also satisfied because their knowledge is up to the marks and they are in
comparison to other people.
TASK 2
P2 With use of appropriate framework analyse internal environment capabilities
CADBURY is the association dealing in confectionery items, there are many other
competitors which are dealing in similar sector and have strong consumer base. So CADBURY
have threat with such organisations so they have to change their operations as per consumer
demand or external market. In order to access internal environment, SWOT analysis is
performed, while in order to access and evaluate internal capabilities, VRIO will be done (SWOT
analysis of Cadbury, 2019.).
SWOT ANALYSIS
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Strength Weakness
This is the organisation having good brand
image, so it is easy for association to distribute
product and services.
Promotional strategies of CADBURY is best,
so they can target consumers easily. This
increases sales and consumer base of
CADBURY.
Major weakness of CADBURY is that they
have weak distribution system in rural areas.
Apart from this they have some controversial
aspects as well due to which brand image
might get affected.
Opportunities Threat
Major opportunities for CADBURY is that
they can target rural areas, so consumer base
increase.
CADBURY can enter in new segment of
products and services which increase scope of
conducting operations.
Main threat is major competition among other
organisations. This affects working style
because managers have to regular research and
market new strategies which is time and cost
consuming activities (Higgins, Omer and
Phillips,2015).
Another threat is increment in cost of raw
material because operations are performed in
many countries.
VRIO ANALYSIS
VRIO analysis refers to the study in which organisation's resources are evaluated. There
are four factors which have to be considered i.e. value, rareness, imitability and organisation.
This model is propounded by Jay B. Barney which talks about resources of CADBURY. There
is study of mainly four resources i.e. Financial, human, material and non material.
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(Source: VRIO analysis, 2019)
Resources Valuable Rarity Inimitable Organized What is the
result?
Good brand
image
Good brand
image
- - - Competitive
Disadvantage
Variety of
chocolates
Variety of
chocolates
Variety of
chocolates
- - Partially
competitive
Advertising
campaigns
Advertising
campaigns
Advertising
campaigns
Advertising
campaigns
- Competitive
advantage on
temporary basis
Work force Work force Work force Work force Work force Competitive
advantage
In order to ascertain, internal capabilities of resources properly, proper description is as
under-
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Illustration 1: VRIO analysis

Valuable: There are some resources which are valuable for organisation, so managers
take care of it in appropriate manner (Sia, Soh and Weill, 2016). These are the resources which
improves effectiveness of CADBURY. Valuable resources of CADBURY is as under-
Good brand image Varieties of chocolate Advertising campaigns Work force
There is good brand
image of CADBURY
in market as it is
operating in different
parts of country which
provides them distinct
image as compared
others.
CADBURY have
varieties of chocolates
as per difference in
demand of consumers.
They have different
flavours and tastes
which is preferred by
consumers. This
makes them different
from other brand and
consumers remain
loyal to them.
Advertising campaign
of CADBURY are
unique and innovative.
They have
sponsorships, social
media advertisements
which makes good
image in industry. In
case of festive season,
they have different
advertisements which
assist in creating
awareness.
Workers of
CADBURY are
capable and skilled,so
this provides edge to
organisation in
improving
performance.
Rare- There are factors which is available with some organisations and this assist in
improving quality of product and gain USP in industry. This is the criteria which follows
contains value and rare resources, if this is not considered then least temporary competitive
advantage can occur (Amran and et. al., 2016).
Varieties of chocolate Advertising campaigns Work force
CADBURY have wide variety
of chocolates which can not be
presented by competitors in
industry, so this resource is
rare with CADBURY through
which consumer satisfaction
There are some advertisements
which are unique and provide
different idea to attract
consumers, so this marketing
techniques are rare which
makes CADBURY different in
Workers at CADBURY are
loyal and ready to work in
innovative market. There are
many strategies with which
their satisfaction level can be
improved. Hence this is
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can be maintained. industry. resource which is rare with
CADBURY are not copied.
Imitable- These are the components which can not copied by other organisation by
analysing it with CADBURY. There are some core competencies which they get revealed, then
CADBURY can not maintain positive image. This gives unused competitive advantage to
CADBURY if imitability is not considered.
Advertising campaigns Work force
Advertisements of CADBURY are as per
change in geographical region and targeted
consumers, so this assist in maintaining
familiar relations with consumers. This is the
strategy which can not adopted by others
Workers of CADBURY are satisfied because
they are getting satisfactory rewards. There is
familiar and positive relations among work
force and management of CADBURY which
makes them different and it can not copied.
Organised- There is no benefits to organised if they are not properly organised. When
there is proper organised properly through which operations are performed in systematic manner.
Work force
Workers at CADBURY are appropriate and relevant because this is the way through which
operations of organisations are performed with best quality and it is easy for CADBURY to
maintain good brand image in industry.
M2 Critical analyse of internal environment with assessing strength and weakness
After evaluating internal factors of an organisation, it is clear that management of
CADBURY is organising business operations in better manner because of change in actions and
other alternatives. Workforce. Brand image, varieties of chocolates, etc. are some resources
which is best and unique from others, so this makes them different from others. As marketing
advertisements of CADBURY are unique and innovative so managers have to make strategies so
strengths can be improved. With evaluating internal capabilities, it is easy for CADBURY to
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improve their image and understand changes for betterment (Buckley and Ghauri, 2015). When
CADBURY expand business in rural areas, then they have to frame advertisements accordingly.
This makes ease in communicating with people and able to recognise demand of consumers as
well. Due to controversial impact on brand name of CADBURY, association is not able to
recognise and perform operations in appropriate and specific manner.
TASK 3
P3 With implementing porter's five force model evaluate competitive force
Porter's five forces model is a kind of framework that perform evaluation over five core
factors that are crucial to achieve competitive advantage in order to determine the actual
position of company within an industry (Linder and Williander, 2017). With application of this
model CADBURY be able to identify its market position and focused area to improve
performance and achieving competitive edge. These factors are mentioned below:
Bargaining power of buyer:- The bargaining power of buyer is relatively higher as there
are number of player that are regular brining new taste to their existing product which is
attracting the attention of customers toward purchasing it. Hence, this is consider to be a greater
threat to the Cadbury as brand switching by customer may affect the profitability and market
share of the company.
Bargaining power of supplier:- The bargaining power of supplier is relatively lower as
there are number of options available in front of Cadbury with whom it can collect raw material
to produce its products which offer material at relatively lower price (Hart, Sharma and Halme,
2016). In addition to this it also maintain a positive relationship with its suppliers throughout the
world which ensure timely delivery of raw material to the Cadbury.
Threat of substitute:- The threat of substitute for Cadbury is moderate as majority of
super markets are trying to copy the popular chocolates and provide them under the name of their
own brand at much cheaper rate. Confectioner is basically offer snacks and gifts for which larger
number of substitutes exists such as fruits, chips, beverages etc. Hence these things are affecting
the market share of Cadbury but by continuously fulfilling the demand of the customers it
become possible to reduce the threat of substitute.
Rivalry:- The competition from existing player are relatively higher as larger number of
competitors are competing against the Cadbury. These competitors are continuously working
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over improving their product or services by bringing innovative ideas which is making
competition more tough. The close competitors of Cadbury are Ferrero, Hershey's, Nestle etc. as
they are well established confectionery brand and also operating at global level.
Threat of new entrant:- The risk of new entry within the confectionery industry is
relatively lower as there are number of players which are already holding the strong position
within marketplace and are operating from several years which create barriers to their entrance in
industry. Hence it require new entrant to come up with new or innovative product along with
higher investment for establishing the business in such competitive market (Martinez-Simarro,
Devece and Llopis-Albert, 2015).
M3 Justify appropriate strategy to improve competitive edge and market position of an
association
Porter's five force model basically evaluate five major forces in order to identify the
market position of Cadbury which support it in determining the opportunity or threat that must
be consider by it in order to improve its market position. From the performed evaluation it has
been determined that like bargaining power of supplier, threat of new entrant are in favour of
Cadbury with the help of which it can maintain its market position and achieve competitive
advantage at marketplace. As there are number of suppliers available in front of Cadbury which
support them timely production as well as delivery of products to the customers. But the existing
competition is higher so for overcoming this Cadbury must try to offer unique product or
services so that competitive advantage can be achieved (Moseley III, 2017).
TASK 4
P4 With applying different range of theories, conduct future growth planning
Organisational growth is possible with considering different factors and making strategies
for organisational growth and development. Strategic plan is the organised and systematic
procedure through which future growth prospects for CADBURY gets enhanced. There are
many changes which are taking place in environment, so it is essential to evaluate changes and
take actions in consideration to it. For analysing and getting more growth prospects, managers of
CADBURY use Ansoff's Matrix. This strategy provides information about scope where
organisation can perform their operations and with the help of which they can get success path.
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There are four strategies in Ansoff's matrix among which one has to be considered by managers
of CADBURY as growth option (The Ansoff Model, 2019).
(Source: Ansoff's Matrix, 2019)
Market Penetration: This is the strategy under which products offered by CADBURY is
same and served among consumers from existing geographical region. This is the way through
which consumer base is increase by using new and innovative style of advertisements.
Market development: Market development is possible when operating country is new
but product is same and existing. This is the way to expand business in different parts of country
and it is not easy for organisation to understand changes in better and effective manner.
Product development: This is the stage in which new product is served among consumers
of existing market. CADBURY can enter in new segment if they consider this strategy. For
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Illustration 2: Ansoff's Matrix