Cadbury and International Business
International Business 301 Dr. Omar Ramzy July 16, 2009
Table of Contents
Company Background 4
Dealing with Globalization 6
Overall Culture 8
International Trade Operations 10
Strategy and the Firm 11
Value Chain Activities 15 Primary Activities 15 Support activities 17
Value creation 18
Location Economies 19
Core Competency 20
Organizational Architecture 21
Organizational Architecture 21 Corporate Culture 21 Structure 23 People 27 Incentives and Controls 29
Competition, Strategy and Structure 30
Organizational Change 31
Entry Strategy and Strategic Alliances 32
Recommendations 35
Works Cited 36
Company Background
Cadbury is the world’s largest confectionary producer; it is also a beverage industry. Based out of London, United Kingdom, it operates worldwide with global production, marketing, and sales functions. The company was founded in 1824 when entrepreneur John Cadbury vended tea, coffee, and chocolate in the UK. He later established Cadbury Brothers Limited, which expanded operations to British occupied India, making Cadbury one of the first multinational companies in the confectionary industry. Cadbury’s many famous products last to this day. Cadbury’s world-known Dairy Milk product celebrated its centennial anniversary in 2005. Cadbury entered the Egyptian market in 1991. The Egyptian market was an opportunity for Cadbury considering its consumers’ attractive preferences and tastes for confectionary products. Moreover, the Egyptian market possessed the necessary infrastructure and production capacity for Cadbury to expand its business in Egypt. Cadbury began its operations and sales in Egypt with the launch of three products, Cadbury Dairy Milk, Cadbury Dairy Milk Krisp, and Cadbury Dairy Milk Hazelnut, its three main global products. Cadbury gradually expanded production through various acquisitions, beginning in 1997 by acquiring Egyptian-owned BimBim, a local business
Table of Contents
Company Background 4
Dealing with Globalization 6
Overall Culture 8
International Trade Operations 10
Strategy and the Firm 11
Value Chain Activities 15 Primary Activities 15 Support activities 17
Value creation 18
Location Economies 19
Core Competency 20
Organizational Architecture 21
Organizational Architecture 21 Corporate Culture 21 Structure 23 People 27 Incentives and Controls 29
Competition, Strategy and Structure 30
Organizational Change 31
Entry Strategy and Strategic Alliances 32
Recommendations 35
Works Cited 36
Company Background
Cadbury is the world’s largest confectionary producer; it is also a beverage industry. Based out of London, United Kingdom, it operates worldwide with global production, marketing, and sales functions. The company was founded in 1824 when entrepreneur John Cadbury vended tea, coffee, and chocolate in the UK. He later established Cadbury Brothers Limited, which expanded operations to British occupied India, making Cadbury one of the first multinational companies in the confectionary industry. Cadbury’s many famous products last to this day. Cadbury’s world-known Dairy Milk product celebrated its centennial anniversary in 2005. Cadbury entered the Egyptian market in 1991. The Egyptian market was an opportunity for Cadbury considering its consumers’ attractive preferences and tastes for confectionary products. Moreover, the Egyptian market possessed the necessary infrastructure and production capacity for Cadbury to expand its business in Egypt. Cadbury began its operations and sales in Egypt with the launch of three products, Cadbury Dairy Milk, Cadbury Dairy Milk Krisp, and Cadbury Dairy Milk Hazelnut, its three main global products. Cadbury gradually expanded production through various acquisitions, beginning in 1997 by acquiring Egyptian-owned BimBim, a local business
Cited: "Cadbury Strengthens Position in Ghana." Ghana Business News. 10 Feb. 2009. 2 July 2009 .