Strategic Management Report: Cadbury's Strategy and Tools Analysis

This report provides a comprehensive analysis of strategic management principles and their application within the context of Cadbury, a multinational confectionery corporation. The report begins with an introduction to strategic management, defining its role in evaluating, analyzing, and implementing effective action plans to achieve organizational goals. It then explores the procedures Cadbury utilizes in determining its strategies, including setting visions, missions, objectives, assessing organizational factors through tools like SWOT and PESTLE analyses, formulating strategic plans, implementing these strategies, and continuously evaluating and controlling their effectiveness. Furthermore, the report delves into the various models and tools employed in strategic management, such as SWOT, PESTLE, Porter's Five Forces, VRIO, value chain analysis, GAP analysis, balanced scorecards, McKinsey's 7-S framework, and the BCG Matrix. The report illustrates how Cadbury leverages these tools to maintain its market position, manage change, and achieve its objectives. Finally, the report emphasizes the importance of change management as a critical tool for business entities to adapt to evolving market dynamics and ensure sustained growth and development.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Strategic management..................................................................................................................1
Procedure used by business corporation to determine strategy...................................................1
Model and tools of strategy..........................................................................................................1
Uses of strategic management tool in Nestle ..............................................................................1
Importance of change management.............................................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management is part of managerial procedure by which trade corporation
evaluate, analysis and implemented effective action plans which help in attaining goals of
organizations. In order to identify the importance ans essential acquirement of strategic
management , Cadbury has been taken. Headquarter of this organization is situated in Uxbridge,
London. Cadbury is one of the biggest multinational entrepreneurial corporation which is famous
for providing best qualities of chocolate, sweets and food beverage product. Target market of
Cadbury is spread in more then 50 countries . This report is define the meaning of strategic
management, process through which manger take decision regarding implementation of strategy.
It also describe tools and models use while determining strategy and how management
department of Cadbury implement theses tools to attain their objective. It also showcase the
importance change management in run business in effective way by maintain its sustainability.
TASK 1
Strategic management
Strategy can be define as systematic plan or action determine by managers of the
corporation in order to attain long term goals of their entity. It is a plan which showcase the path
of achieving end goal by determining relevant resource required to attaining the goal. Strategic
management is the art of managers to analysis, monitor and assign relevant strategies to run
business organization in effective way.
In other words, it is an evolutionary process of using resources of organization in strategic way
to reach ultimate objective of business corporations. In this process managerial decision are use
for growth and expansion of corporations (Baumgartner, and Rauter, 2017).
Various tools are used in strategic management in order to evaluate internal and external
opportunities and threat which directly and indirectly affect performance of business entities.
The main objective of using this tool by organization for their business activities is to determine
evaluate those action through which business entities can easily attain their long term objective
by optimal utilization of their scare resource.
In today's world it become essential for business corporations to maintain their strong position in
market place. Cadbury is one of their biggest and famous corporation of UK their management
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department apply effective strategic management procedure as well as its tools to maintain their
position and achieve objectives.
Procedure used by business corporation to determine strategy
Business organizations use strategic planning in order to formulate best strategy for their
organizations. Managers of Cadbury apply following steps to determine strategy which is
relevant to their business operations
 Determination of vision & mission: For formulate best strategy to organization the
first step is to set vision and mission of organization. Vision help in proved guideline as it
is the ultimate future goal of the corporation (Ethiraj, Gambardella and Helfat, 2016).
Mission statement determine long term object which help initiating vision of
organization. Managers decide their strategy on the basis of theses statements. Cadbury
main mission is to maximize sales revenue by fulfilling demand of customers and
provides them full satisfaction thus their strategic are include actions and plans which
thought which they can provide full satisfaction to relevant customers.
 Setting main objectives: On the basis of vision mission statement, management
department decide their objective of strategy.
 Assessment of organization factors: This is one of the most relevant steps while
determining and formulating strategy for any organization. Managers by scanning the
sole environment in which business run identify relevant factor. For this purpose, they
use various methods, swot, pestle. theses technique useful in determining opportunities,
identify main threat, risk elements, strength of internal factor and cause or factors which
may become the reason of loss of the organization in future . management department of
nestle use scanning technique for formulate best strategies to their organization(Suarez,
Calvo-Mora and Roldán, 2016).
 Formulate strategic plan: after Identifying effect of internal as well as external factors
of the corporation. Managers formate those plans through which they can able to
eliminate risk and able to gain more opportunities by taking competitive advantage.
 Implement strategy: After formation of strategy the next step is to implement these
strategy into business. Managers choose small area of their working activities where they
apply strategic.
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 Evaluation and control of strategy: This is the last step of strategy planning. In this step
managers evaluate the effect of strategy they monitor perform of workforce of the
organization by implementation of this strategy and on the basis of that they change their
strategy according to the needs of organization (Amrollahi and Ghapnchi, 2016).
 Managers of Cadbury prepare their action and plans on the basis of applying this
procedure, it will help managers to recognize the impact of strategy and they formate best
strategical plan through which managers can build positive working environment by
enhancing profit and growth rate of their business entity.

Model and tools of strategy:
◦ For identifying and formulating best strategy following are the tools manage
department apply
 SWOT analysis: This is one of the most essential tool of environment scanning . SWOT
analysis help in identifying strength, weakness, opportunists and threat elements by
implementing any plan and policies. It use to scan the entire environment in which an
organization is run its business. Internal factors help in determining the strength and
opportunities an corporation many gain during running business activities. External
factors are define the risk elements ans well as future opportunities of business .
 PESTLE analysis: It is also a relevant method of strategy determination. Managers
determine and formate their strategies for business to identify the effect of their political ,
economical, social, technological as well as legal and environment factors. All theses are
relevant element and indicator of success of any corporation. Managers ability is define
when they formulate strategies which which corporate all these factor. Strategic
management tools useful in identify how political decision, Monetary policies, changes in
interest rate, effect of foreign exchange , natural climate directly, perception of customer,
their choice directly effect actions and planning policies (Arend, Zhao, Song. and Im,
2017).
 Strategy evaluation: By using this model managers can easily recognize each and every
previous strategies and plans implement by business to run their business. On the basis of
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evaluating previous business strategies manager can determine error and build new
strategies by effectively modify previous one.
 Porter's 5 model: With the use of this tool managers can recognise the strategies of
their competitor and also identify main source to attain competitive advantage. Strategy is
build on the bias of considering bargain power of its supplier, power of organization have
to take loan, threats of coming new competition fear of rival industries. They build new
strategies which help in attract customers. Porter's 5 force model is an effective tool
through which manger can analysis the effect of essential 5 factor on the strategies of
their business organization (Oey and Nitihardjo, 2016).
 VRIO: This tool of strategic management is used to analysis the capacities, skills and
strength of internal source of corporation. Effective strategies is build on the basis of
considering the capabilities organization's workforce have to complete their plan and
action within given time period. success of strategy depend on how effectively workforce
is able to implement plan.
 Analysis of value chain: The main object of strategies to enhance value of customers.
For this purpose organization use value chain analysis basis through in which they
separate all the activities into set and analysis each activity to attain competitive business
advantage.
 GAP analysis: This includes in monitoring of performance of strategic planning process.
Management department identify the gap between plan strategies result and achieved
strategies result and on the basis of this analysis managers change strategies to fill gap of
plan and achieved strategy actions (Longo, and Rotolo, 2016).
 Balance scorecard: Managers use balance scorecard to set objective and measurement of
initiative taken by workforce of the organization This tool help in identifying
performance of workforce and build strategies to improve their performance by applying
effective strategical plan.
 McKinsey's 7 s: For formulating effective strategies it is really essential to scan
environment in effective way. Managers use McKinsey's 7 s to determine that all the
relevant factors are consider while evaluating strength as well as weakness of the
organization. Theses seven s stands, all the relevant subjects, staff, style, strategy, skills
and values shared by employees . During formulation of strategy it is really essential fr
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mangers to build strategy won the basis of identifying skills values, of their employees.
Without these factors organization well not able to attain action plan and goals.
 BCG Matrix: This matrix define value of shares of business organization in market. It
consider 4 factors which means different value of company's market share. It is also an
effective tool of determination of strategy on the basis of analysis current portfolio status
of organization. This is easy and relevant method which most of business corporation
while determining their plans and actions for aching their gas of mission statements
(Torquati, and et.al 2018).
Uses of strategic management tool in Cadbury
Cadbury is multinational organization and their market area is spread all over the world.
Thus it is essential for its management department to formulate effective strategical plan which
help the organization maintain its position in competitive market.
 SWOT: Managers to formulate strategies use SWOT analysis. They prefer SWOT as it is
the basis but he most relevant tool of strategic management through which they easily
recognizer market conditions and competitors of organization to maintain their status in
market.
 PESTLE: They also take review of effect of political, environmental, economic as well
as social situation of market with the help of PESTLE method. Theses technique of
scanning help manager to identify real image of external and internal factors which
effect organization 's trade actions. On the basis of that manager formulate strategies. As
Cadbury is multinational organization using only environment scanning tools is not
enough for formulating managerial strategies (Korableva and Kalimullina, 2016).
 Porter's 5 model: To build effective policies they also review Porter's 5 model through
which they recognize capacity of buyers to pay them , recognize the probability of
entering new competitive industries as well as this model also useful for analysis the
policies of rival industries to build strong position in market .Strategies help in aching
future objective thus it is essential to consider impact of rival industry on organization's
policies. Management department build strategies on the basis of theses tools of strategic
management .
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 Balance scorecard: They use balance scorecard for evaluating performance of workforce
and for identify gap of achieved and desired strategic goal they also considered various
method of performance evolution. With the use of all theses methods, Cadbury able to
formulate their strategies plan which help in enhance skills as well as capabilities of not
only employee but also workforce. Effective strategy help in reaching goals within given
time period by using scare resource . Their strategies basically aim to provides
satisfaction to world wide customer for this purpose they use plan effective
communicating and marketing strategies which help in proper strategic planning by the
use of relevant tools and applying models of strategic management (Ritter and Lettl,
2018).
Importance of change management
Change management is effective tool of management which help business entity's to
prepare and process support in caning organization policies. Change is basis and essential
outcome which is required for growth and development of business organization. It gives adverse
or positive effect depend on the policies and strategies use by organization for the change
management (Ehardt-Kistenmacher, McCarthyand Gibson, 2019).
Due to changes in technologies preference of customer has been changes in very short time
period and to maintain the strong position in market organizations change their policies,
procedure of using machine etc. Strategic change management is the procedure which also help
in transform business corporation through which it can create positive image in market.
Change management include changing policies of promoting products, change manufacturing
process, structure of employment, trade policies . It will help in proved growth and met
requirement of technology changes. Chang management help organization to make strong
connections in global market.
Organization usually take decision for changing their environment structure but due to lack of
knowledge they are not able to maintain all the changing scenario of the business corporation .
To eliminate this issue manger now use changing management strategy. This will help manger to
provide guideline to their employee so that they are able to adopt changing policies of the
organization. It is really hard for workforce to accept change and easily learn all the new
technologies and use of thesee new system during plan implementation process (Lozano, R.,
Nummert, B. and Ceulemans, K., 2016).
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Change management is cost effective procedure as it may required high initial investment but
changing in technologies and apply new relevant tools help in minimizing cost as well as
eliminate risk by maintain sustainable in market place. Being established as multinational
corporation it is relay hard for Cadbury to maintain their same status and compete their
competitor. But the management department work on the philosophy of change management
thus they formate those strategies which is build for gaining future objective (Koseoglu, 2016).
For this purposes they use environment scanning technologies and tools of strategic changer
management. Tools of effective communication help managers to make effective connection
through which they able to take favour from their workforce to change in policies when its
require. They organize training ,program , and conference, events which help in aware their
employees towards changing policies and also enhance skills of their workforce to adopt and
accept changing structure, policies and process of running business. They use change
management as it help in diversify their products range. Cadbury is able to maintain their
position because their management department apply effective strategies of change management.
Manager as well as their employees adopt changes because hey know to take sustainable in the
world market only changes in product, commination tools marketing strategic, structure precess
is reliable and help them to fulfilling demand of their customers by providing them full
satisfactory product and services (Barros, Hernangómez, and Martin-Cruz, N 2016).
CONCLUSION
From the above analysis it has been identified that to build and maintain strong position
in market it is essentially required by business corporations to use strategic management policy.
It is an effective process of managerial decision making in which manager use their capacities ,
skills to analysis, formulate and evaluate plans and policies . For build strongest strategy
manager use systematic procedure which started with determining vision and mission statement
and on the bas of these statement theory choose object, scan factors affect environment and then
build strategy. Organization by using SWOT, PESTLE, VIRO, balance scorecard technique can
easily recognize strategic strength and weakness of plans of organization strategy. All these tools
help in change strategies. To successfully run business it is required to adopt change
management plan in organization. Changing management pinnings help business corporations to
control and eliminate risk and reduce cost of working business activities by giving long term
sustainability within the world economy market.
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