Assume that you are a management consultant. Although Cadbury World is a success, Cadbury’s are aware that it could be improved. They have invited you, in your capacity as a consultant, to review their operation and make appropriate recommendations. You have visited Cadbury World and your findings from the visit are contained within the case study 'Cadbury World'. Based on the information in the case study, you should write a management report for senior management at Cadbury World, analysing the current situation and making appropriate recommendations for future improvements. In making your analysis and recommendations you should draw on the lecture and seminar material, such as identification of operations, transformation processes, volume/variety mix, products and services, inventory management, capacity management, supply chain management, resource planning, layout (mentioned in a seminar) and quality (mentioned in a seminar).
Implementing the changes at Cadbury World will be a job for themselves, so how this is achieved is not your responsibility. You need to recommend what is required, rather than how it will be achieved. In particular, technical specifications are not necessary. Your recommendations should be general so, for example, detailed instructions for the content of a website are not appropriate. Bear in mind your report should be written from an operations management perspective. Please also note the marking criteria, available on Canvas. Revision: 1 Page 2 of 3 Structure of your report Whilst you may include other information, your report should contain at least four basic sections: Introduction: Explain what the report is about and any information required to understand the problem. Analysis: This is an examination of the current situation and identification of any problems. Conclusions: These should summarise the issues found in the analysis and identify any links or patterns in the information. Recommendations: Based on what you have found, write your recommendations for the benefit of the senior management at Cadbury World.
Also see the Marking Criteria. A good reference book, available in the Robinson Library as an electronic download, is: Slack, S. and Brandon-Jones, A. 2019. Operations Management. 9th ed. Harlow: Pearson Earlier editions by either Slack, Brandon-Jones and Johnston or Slack, Chambers and Johnston are also suitable. Other books on Operations Management are also appropriate. Notes
1) Whilst it is perfectly acceptable to consult (and reference) other sources for information on operations management theory, information regarding Cadbury World should only be taken from the case study. No other sources regarding Cadbury World should be consulted.
2) Whilst you obviously need to refer to the case study to provide justification of your findings, simply repeating large portions of the case study as ‘background’ will not gain you many marks. Therefore repeating the case study in your report should be done sparingly, and be justifiable in the context of your report.
3) The important aspects of your work will be both the analysis of the situation, and your recommendations. Both of these will be a reflection of the quality of your thinking.
4) References, if necessary, should be used where appropriate, but mostly this is about your analysis, understanding and evidence of your thinking.
5) If you have any questions, please email. Submission details: File type: Microsoft Word .doc or .docx (do NOT submit an Adobe Reader .pdf file) Length: 2000 words ±10% Submission date: Monday 18 January 2021 Method of submission: Electronically, through Turnitin on Canvas. Structure: Structured as a MANAGEMENT REPORT and NOT an essay (see below). Formatting: Line spacing: 1.5 or 2 times line spacing Font: Times Roman 12 point or Arial 11 point Revision: 1 Page 3 of 3 Management reports Information about writing management reports is given on Canvas. Writing management reports and analysing case studies will also be covered in a lecture and a seminar.
However, an excellent video is: http://www.youtube.com/watch?v=AFGNKJruxdg After watching this video, please note the following points: 1. Your report is an ‘Inductive’ report; 2. Avoid bullet points; 3. Recommendations are required; 4. For references use the Harvard system, not the APA system; 5. You should only have a reference list (if required) and not a bibliography; 6. Skip irrelevant stages in writing e.g. research (the case study is your research); 7. Use third person impersonal i.e. write ‘It may be thought that…’and not ‘I think that…’
Table of Contents
The report is an intensive look at Cadburys current operation in the production of chocolate. The report will enhance knowledge on current operations and market mix to enhance understanding of how returns on investments are attained. Further, the report will discuss the problems experienced at Cadburys and how they affect the production and sales of chocolate. This approach will ensure the identification of new measures that can be adapted on both a short- and long-term basis to increase the profit margin. It is no secret that corporations are always seeking alternatives that will guarantee reduction in cost structures and enhancement of profit margins through increased sales. After being in operation for more than 100 years, according to the research, there is an increased call for change since new competitors are cropping up with the aim of taking a chunk of the market share. Through its mission statement, Cadbury has laid out its strategic approach to business which encompasses social responsibility and the idea of employee concern which is rarely a factor for consideration in todays’ corporates. This has enabled them to stay on top of things in terms of sales with consumer knowledge of their market approach. The report will detail the different analytical points that are currently contributing to growth or limiting the growth curve. A conclusion of the current analysis will highlight the findings of the report and the significant problems which may lead to reduction of returns on investments if not handled professionally. A further insight into the problems will create the urge to generate new ideas that can be recommended to the management for implementation either on a short- or long-term basis with the sole purpose of ensuring stability and growth is attained.
Due to its continued presence in the market, the company has been forced to reintroduce the Cadburys outings which were famous in the 1920s with children. This approach enhances knowledge and builds on consumer loyalty from an early age which Cadburys has done to perfection. It is quite surprising and raises a lot of question when the research exploits hygiene as among the main reasons why the market approach was avoided before reintroduction in the 1980s due to increase public demand.
The current marketing method depicts an old school approach to sales which does not necessarily reach out to every potential consumer. Leaflets can be market friendly in a specific target market which is not the case for chocolates which are universally accepted. Therefore, the marketing approach should be embraced in a way to capture the global interests and not just a specific target area due to low costs of the approach.
Apart from the layout which is not designed for access by many individuals, be it visitors or employees, the different shops structures do not offer adequate space for large groups. This is very inefficient considering the large groups of visitors that come to the plant on a weekly basis. From the coffee and ice-cream parlour to the alternative exhibition center and the restaurant section, it is very obvious that spacing and layout hinders operational efficiency.
The advancement in technology will mean Cadburys has to be steadfast in adaptation if they are to survive market competition. Apparently, the current situation at the ticketing desk does not suggest any improvement or concern on the poor state of operations. Although there is no direct influence on production, it tells a lot about the current operational situation in the company which reads lack of efficiency. Computers in companies are normally integrated to give the same output at all areas of operations which is not the case for Cadburys World.
The lack of operational efficiency has created judgmental problem which may lead to accidents and failure in accountability. The employee manning the entrance to the firm operations section has no significant guiding principles on the amount of people who are supposed to enter at one specific time. This creates room for trial and error in an operation hub where any incident is likely to happen thus calling for accountability of all individuals, be it visitors or even employees and management therein.
Packaging is always very essential since it’s the last step in production before the products reach the intended market. However, strategic allocation for packaging site is a problem for Cadburys. The packaging store is on the second floor, which raise question on operational style and access to distribution. There is no electronic lift and the presence of stairs stipulate that the employees have to carry bulk packaged products to the distributing vans. This is a big risk to products safety before reaching the market which encompasses operational failures which may lead to the incurrence of additional costs. This approach will also guarantee challenges in the distribution section since inventory management will be inefficient. The bulk products packaged are likely to reach distributors in a bad condition thus a challenge in accounting for them. Additionally, visitors to the site with physical disability will have it difficult in accessing the packaging plant due to the lack of ramps that will enable easy access. The lack of technology has hindered access to the packaging plant for prospective clients who may have physical disabilities but still have the desire to enhance knowledge on chocolate production and consumption.
The problem of marketing has created a big gap in profit margins thus creating the need for new structural methods that will increase the desire from customers and prospective clients.
There is also the problem of denial of requests for visits by prospective consumers due to the large number of requests which cannot be matched by the existing facilities and structural layout of the company.
The analysis depicts a company with a lot of inefficiencies in information and operational flaws. This has hindered prospective growth in the market which is always attributed to how fast the product can reach the market and how efficient the information is to the consumers. Developing an understanding for the product will require consumer knowledge of the same thus the increase in request for visits on a weekly basis. The visits offer a perfect marketing approach which will enhance knowledge of the product on a very low cost in terms of the marketing approach. However, the perception created on a visit to the firm is equally important. The moment prospective consumers realize the inefficiencies in production department, they begin to have questions on whether the product being generated fits the current market demands. This approach gives rise to the option of substitutes which in the current economy you are likely to find quite a number.
Developing a perfect marketing mix also enhances knowledge on different market demands (Bahador, 2019. P. 1-5). The current approach that entails distribution of leaflets does not provide additional market growth since the approach can only be limited to a certain number of people. This approach limits growth in an extensive way since different economies cannot obtain the same information yet they are consumers of Cadburys branded chocolates.
Growth can be termed as both internal and external and as the market demand for chocolate grows, so is the internal structures and plants supposed to develop. Cadburys have been very reluctant in the widening of their plant to be able to accommodate a large number of visitors and increase production. The large number of visitors and requests for visits explicitly shows how the demand for the product is rising. Expectations for additional budgetary allocations (Fischer et al. 2012. P. 50-59) should be on the horizon since the growth rate is way above the current expectations and operational style.
Technology has been a key factor in the growth of industrialization and aided in the access to new markets (Bruland, 2004. P. 117-146) thus enhancing returns on investments. Cadburys World is a world leader in the production of chocolate and other related products. The consistent visits from children and prospective consumers should be a wake-up call to enhance customer relation. Through technological changes in operations there will be effective transition from one area of operation to the other. The technological changes should include the integration of all company departments into one efficient system through which information can be send on a parallel level for effective implementation. A case example of the entrance level and ticketing information. If this information can be computerized and all departments get to know immediately of the visitor’s preparations will be underway at all sections that enhancing flow of work and appealing to prospective consumers and children which can improve loyalty.
Developing internal structures and departmentalization of all production levels. This will always enhance accountability in all levels and the case for quality input will be attained. The current situation limits operations to significant levels due to the various mini structures which are not functional. With changing times, production is all about quality products reaching the intended market. Thus, cutting irrelevant structures for production such as moving already packaged products from the second floor to the distributing channels in the ground floor through the stairs can be done away with. In addition, the alternative exhibition store can be transformed into stores for physical storage awaiting distribution in the market.
Marketing will always enhance sales or rather ensure an increase in knowledge of the product in the different economies. Marketing has taken a new approach since the development of globalization (Janosova et al. 2020. P. 1-2) since companies are keen on ensuring information reaches out to the current consumers and the prospective clients in a bid to widen sales and improve profit margins. The use of leaflets is limited to a very small target group therefore Cadburys should think of implementing alternative marketing styles. These marketing approach can be through print media, radio and tv on an international scale and offering additional roadshows and promotions on a monthly basis. It is important for the advertisements to be on a frequent basis since the current crop of consumers will always enhance market research before purchasing a product. A good advertisement that is convincing to the clients is likely to attract more sales thus a growth margin that competitors cannot match.
The structural layout of any company will always play a very essential role in enhancing production to market and sales time. A good layout will ensure swift production, quick packaging and distribution thus no questions of demand that are not met with adequate supply. At Cadburys, this layout is lacking and thus a contributing factor to the lack of maximization of returns on investments. Different departments have their functionalities cut out but the most essential approaches must be attributed to the products completion. Packaging is pretty much the last stage before distribution and it beats logic how the plant can be stationed in the second floor. This increases operational costs and time since after packaging an additional time and human resource will be wasted in transporting them to the ground floor. Considering the building structure of the firm is not modern and only stairs can be seen, it is essential for the packaging plant to be transferred to the ground floor and a different structure of production to be adapted. A more significant production approach of top to bottom can be adapted to enhance quantity whereby the first stage of production is in the top most floor of the production building with the end product being obtained on the ground floor.
Increase in product variety has always kept companies in business thus enhancing sustainability (Thonemann et al. 2002. P. 548-569). Market forces are changing and with it are consumers who are keen on preference to influence their purchasing behaviour. Through additional market research and feedbacks from consumers, Cadburys can ascertain the current market preference and adapt to it on specific quantity basis. The market is wide and the preference are in many varieties, thus the significant role market research plays in advancement of a company’s idea. It is very obvious that all market needs cannot be solved by one product but getting an idea of what the majority in the market want, will create a significant influence on production decision. Cadburys should therefore set a side a team of marketing professionals that are well versed with different economies and ensure they get feedbacks from the different consumers regarding demand and preferences. The team is to be distributed across the globe in order to generate varied demands from different economies and help management in decision making on market entry or how to regulate operations in the specific markets. It will enhance knowledge on product and determine future existence or the going concern of the company.
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