Cadbury: An Analysis of Understanding and Leading Change in Business

This report examines Cadbury's approach to understanding and leading change within the confectionery industry. It begins with an introduction highlighting the importance of change in the current business environment, using Cadbury as a case study. Task 1 compares Cadbury and Nestle, exploring how each company adapts its strategies and operations to address challenges like changing consumer preferences and health concerns, including pricing and promotional strategies. Task 2 delves into internal and external drivers of change impacting Cadbury, analyzing their effects on individual, team, and leadership behaviors. The report then addresses the measures that can be taken to mitigate the negative impacts of changes. Task 3 focuses on barriers to change and their influence on leadership decision-making. Task 4 explores different leadership approaches to manage change effectively. The conclusion summarizes the key findings and insights regarding Cadbury's change management strategies. The report provides a comprehensive overview of organizational change, leadership, and strategic adaptation within the confectionery sector.

UNDERSTANDING
AND LEADING
CHANGE

Contents
INTRODUCTION...........................................................................................................................4
TASK1.............................................................................................................................................4
P1. Comparison of different organisational examples which will have impact on organisations
strategy and operations...........................................................................................................4
TASK2.............................................................................................................................................6
P2. Internal and external drivers of change will affect leadership, team and individual
behaviour................................................................................................................................6
P3. Measures that can be taken to minimise negative impact of changes..............................9
TASK3...........................................................................................................................................10
P4. Barriers for change and determines how it influences leadership decision making......10
TASK4...........................................................................................................................................11
P5. Different leadership approaches to deal with changes...................................................11
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................13

INTRODUCTION
Understanding and leading change is one of the most important aspect in present business
scenario. Every organisation needs to adopt change in this highly dynamic environment because
to attain business goals and objectives effectively and efficiently. It is therefore, is very crucial
that people and organisation understand the importance of change. Organisation undertaken in
this report is Cadbury which was founded in 1824 and deals in confectionary industry. It serves
various products and services to its customers namely, milk chocolates, selection boxes, etc. This
report will explain the various ways in which the change has an impact on organisations strategy
and operation. It will demonstrate the influence of drivers of change on organisational behaviour.
It will also determines the various barriers for change which will have crucial impact on leaders
decision making. Furthermore, the last part of the report will apply various leadership
approaches.
TASK1
P1. Comparison of different organisational examples which will have impact on organisations
strategy and operations.
Change is inevitable part of human life and organisations. The present business world is highly
competitive and to sustain in such world by establishing themselves in the market, it is very
important to understand the role of accepting changes. Organisational change and transformation
has become permanent feature for the landscape of the business. If the companies do not accept
changes than they won’t be able to sustain for longer duration in the present business scenario.
People working in organisation hesitate and restricted to accept the changes. They do not
understand the importance of changes which will not only train them towards new methods of
working but will also lead the organisation to the greater heights. This is understood in more
detail by comparing the two different organisations. These two organisations are Cadbury and
Nestle as both the companies deals in confectionary industry and serves different kind of
chocolates and confectionary products to the customers.
In UK, the growing obesity among the people and increasing number of diabetic
patients, and the growing cavity and celiac diseases among people and kids, has brought down
the sale of the companies products and services. To overcome this challenge, the company has
introduced a greater change in its product categories and now the product ranges of

confectionary products includes gluten free products and chocolates, sugar free and diabetic
people products, new chocolates which contains more of protein and calcium for kids rather than
cavities.
Strategic changes
These changes are related to the changes in the marketing strategies, promotional,
pricing, etc. in the products which will helps the company to grow and sustain with gaining
competitive advantage in the country. To adopt these strategic changes, Cadbury and Nestle
both will adopt different strategies which are discussed below :
 Cadbury : This organisation will adopt different pricing strategies because customers are
price conscious and they are not ready to pay higher prices for new products in the
market. They will use penetration pricing strategies and economic pricing strategies.
Under penetration pricing, Cadbury will try to attract the customers by offering them
lower prices of goods and services. Though this pricing strategy tends to give loss to the
company but to be successful in its new product the company will use this strategy. Apart
from this, the economic pricing strategy is concerned with the wide range of businesses
which involves generic food suppliers and discount ant retailers. This strategy used by
Cadbury aims to attract most price conscious customers and with this, the business
minimises the cost of production for the purpose of keeping prices down. The company
will also use different promotional strategies like making advertisements on the news
paper and radio and televisions. They will also use social media to make people aware
about the products which are healthy and gluten free.
 Nestle : This organisation will also adopt different pricing and promotional strategies for
making people aware about the health benefits of the new range of products which can be
consumed by anyone and are good for health. It will adopt bundle pricing and psychology
pricing strategies. In bundling the organisation will make bundles of different products
which will help the company in selling multiple products at comparatively lower prices
and for this customers will be attracted. Also, this is a most effective way of selling the
left stock with new product range of the company. In psychology pricing, the company or
marketers used to inspire customers by emotionally rather than logically and prices are
set like £99 or £999, etc. This has proven to be attracted the customers because they focus
on first number rather than the last digit of the price. Apart from this, the company will

also use various promotional strategies like selling vouchers, samples, etc. It will
advertise on digital bill boards, social media like Facebook, Instagram , Twitter, etc.
Operational changes
These changes are concerned with the internal changes of working in the organisation.
They are very important in present competitive world where there are high number of companies
in the same sectors with higher competition. In this, Cadbury will have a strong focus on
research and development department through which they can produce more and more
chocolates with innovative taste and health benefits to the people. In Nestle, the organisation will
adopt changes by focussing on the products and packaging style because it plays a greater role in
attracting the customers and kids. The research and development department of the Nestle will
focus on changing new ways of packaging.
TASK2
P2. Internal and external drivers of change will affect leadership, team and individual behaviour.
Driver of changes are the elements and factors within the and outside the organisation
which plays a greater role in the success of the company. These drivers of change have a crucial
impact on the leadership, team and individual behaviour of the people within the organisation.
There are various drivers of changes that is internal and external which will affect the operations
of the Cadbury. Such changes will be useful in shaping the organisations changes with the help
of strategy, plans, designs, products, services and operations.
Internal drivers of change
These changes are concerned with the changes in the business environment that are internal
to the organisation. Such changes are controllable by the company and the following are the
internal drivers for change of the Cadbury :
 Technological capacities : Technology is emerging and growing day by day with the
increasing competition. These technologies are internal to the organisation where the old
technological equipments of the Cadbury became obsolete and this has a impact on the
operations of the company and demands new technical equipments. Furthermore, it
shapes business operations in the long run of the organisation.
 Organisational culture : Culture is concerned with the behaviour of organisations and
its people, their attitude. The success of the organisation is highly dependent on spirit and

always embraces the changes which helps the Cadbury in always listening to their
customers and staff.
 Financial management : Finances plays a very crucial role in the organisation and it
requires to meet the day to day expenses of the Cadbury. Without adequate finances no
organisation can initiate the business process. The internal business environment is
required to make effective and adequate arrangement of funds by allocating budgets for
different organisational activities so that they can be used efficiently and judiciously.
 Employee morale : Employees are treated as an asset in the Cadbury. When the
employees are happy then they produces most productive results for the company. So it is
very important to have an effective motivation for the channelizing the morale of the
employees.
External drivers for change
These drivers for changes are concerned with those elements and factors which affects the
operations of the company from outside the organisation and are generally uncontrollable. The
following are the external drivers for changes for Cadbury :
 Political factors : These factors are concerned with the stability of the country. It
includes taxation, rules and regulation of government, subsidies, import, export, etc. For
instance, if the taxation prices rises, then the cost for the companies products and services
will also be raised in order to over come the rising rate of taxation.
 Economic factors : These factors are concerned with the profitability and financial
stability of the company. It includes, inflation, deflation, recession, etc. For instance,
when the inflation rate increases than the products of the Cadbury will also increases
which will restrict the people to buy the products and they will spend their disposable
income on important aspects.
 Social factors : These factors are concerned with the social needs, tastes, preferences,
attitudes, etc. of the people. Therefore, Cadbury will focus on producing those products
and services which people preferred to be health conscious and are gluten free by
considering the needs and demands of the people.
 Technological factors : These factors are concerned with the innovative and emerging
technologies. For this, Cadbury will concentrate on focusing research and development

department for developing new and innovative gluten free and diabetic products for
health conscious customers.
Drivers for change will have significant impact on organisations individual, team and
leadership behaviour and this impact is discussed below :
Driver for change Individual Team Leadership
Internal Internal drivers for
change will affect the
individual because it
is very important to
regularly motivate
them so that they can
freely accept the
changes and work
with full zeal and
confidence in
accordance with the
accomplishment of
goals and objectives
of the Cadbury. For
this, the organisation
regularly provide
incentives, appraisals,
respect, recognition,
etc.
Internal driver for
change in Cadbury
will have a significant
impact on the team.
As any changes in the
product range will
require to form the
team for different
purposes. Such teams
need to work by
delegating work
internally so that
proper sharing of
work can be done and
people will
communicate with
each other for the
fulfilment of
organisational goals.
Leaders are
responsible for
influencing the
employees so that
they work with full
attention and
concentration to attain
business goals. In
Cadbury’s internal
environment for
changes, the leader
will use democratic
leadership style
because there will be
stability and to
motivate the
employees, the leader
will involve them in
decision making
process by taking
their views and
thoughts.
External In external business
environment, the
individual will have
serious impact on
In external business
environment, the team
will require to work
with greater efforts.
The leader of Cadbury
will use autocratic
leadership style in
external driver for

behaviour in the
organisation because
they alone cannot
handle the
consequences of the
environment. This can
affect their mental
level, can put pressure
on them, they might
feel hesitate to action
regarding the changes
because of the risk
associated with it.
These drivers for
changes are generally
uncontrollable and
this can sometimes
also create conflict
among the people.
Team must be trained
enough that they can
develop quick
solutions for changes
taking place in
external environment.
changes because this
will require quick
action and leader may
not have sufficient
time to discuss about
the changes with the
employees as this will
consume time. So by
adopting autocratic
style, leader will make
quick decision for the
attainment of business
goals and objectives.
P3. Measures that can be taken to minimise negative impact of changes.
Changes are indispensable part of every business organisation. It has various negative
consequences which are required to be eliminated by making people understand the importance
of change. When people started working in an organisation than they become prone to that kind
of working and restricts the flexibility. When the Cadbury initiated organisational changes then it
created anxiety and uncertainty among the people regarding that they may lose their sense of
security. Most expert and skilled employees can resist the changes because of the risk involved
with it. Such negative impact of changes in Cadbury is required to be minimised which can be
done in the following manner:
 Communicate with employees : When the company plans to implement changes then it
must communicate openly to the employees by considering all the benefits and
advantages of accepting changes. This will help them in preparing in advance and also
enhances flexibility.
 Develop a culture of learning : Organisation must create a culture of learning where
individuals will always be prepared to learn new skills, techniques and tools of learning.
This will help and enhance them to take up new challenges and also development of their
functional and leadership skills.

 Provide career transition support : When an individuals work collaborate with the
career consultants then it ensures them that their job is secure. It helps individuals in
assessing their strength, weaknesses so that they can deal with the changes in most
significant way.
TASK3
P4. Barriers for change and determines how it influences leadership decision making.
For implementing changes there are various barriers for change and it describes the manner
in which it influences the leadership decision making. For this purpose, force field analyses has
been used which helps the Cadbury in numerous manner.
Force field analyses
Kurt Lewin has created force field analyses in 1940 and it is a very useful and effective
instrument through which the communication takes place in the organisation by considering the
plans and discussions relating to whether the plan needs to be implemented or not. Cadbury will
use this because the main purpose of this is to maintain the situations between the forces which
drives towards changes and those that are against the changes. This instrument is used by
determining the plan, identifying forces for change, identifying forces which are against that
change, assigning them scores, analysing and applying this. The two segments of this that is
forces which are in favour of changes are like when customer requires new products,
improvement in production speed, minimises training time, low maintenance cost, etc. And the
factors which are against changes are loss of over time of staff, impact of environment, cost,
disruption, etc. These factors have significant impact on changes and influences the decision
making of leader in various aspects.
 Leader will need to take various measures regarding the improvement in the morale of
the employees, they will provide effective motivation so that people will understand the
importance of change and work with full zeal and confidence.
 Leader will also make reliable decisions regarding the flexibility. They will enhance the
flexibility among employees by making them understand the importance of changes not
only for the company but also for the employees.

TASK4
P5. Different leadership approaches to deal with changes.
Approaches of leadership
Situational leadership approach : This is the leadership style which has been developed
by Kenneth Blanchard and this is related to the adjustment of the leader of the company with the
styles which must fit into the organisation. The following is the detailed description of this
leadership approach :
 Telling and directing : In this, the leader is the one who is involved in making decisions
and communicating with others within the organisation regarding this decision. In this
employees simple perform those actions which they are asked for.
 Selling and coaching : In such type of style, the leader is involved in everyday activities
and decision making ultimately lies within the leader. In this employees are supervised
but it is more like a coaching style rather than the management. This style is suitable for
those people who are highly skilled and have greater experience.
 Participating and supporting : This style of leadership passes more responsibility to the
employers. In this leader is responsible for providing direction but the final decision is
taken by the follower only. The leader provides feedback to the employees for their work
and motivates them to work with full potential and confidence.
 Delegating to employees : In this style the leader is rarely involved in the task performed
by the employees. The employees are responsible for selecting the task and the manner in
which it is to be performed.
Advantages Disadvantages
This helps in recognising the need for
flexibility and it creates comfortable
environment for workers. This also helps in
maximising the awareness of the leader and
team can work together.
This stresses more on immediate needs and
lacks the long term needs and is infective in
task oriented in environment. It does not
provide enough information for some leaders.
CONCLUSION
From the above report it has been concluded that accepting changes are very crucial in the
present business scenario. It helps in making people understand the importance of accepting

changes. This has been explained by elaborating various leadership approaches. This has further
been explained in detail by comparing two different organisations. Furthermore, the influence of
changes has been explained in leadership, individual and teams through external drivers of
change.