Evaluate the relative importance of the following factors in Cadbury’s success as a company up until 1939: a) Quaker values b) Sales and marketing c) Product innovation
Since 1861, when the brothers Richard and George took over Cadbury, the British confectionary company has continually expanded and developed, now standing as the second largest confectionary company in the world, shortly followed by Mars. The company now operates in over 60 countries worldwide and has a multi-billion pound turnover each year (Factbox: British confectioner Cadbury, 2010), demonstrating its success. There are many factors that have contributed to the success of Cadbury over the years. The three decisive factors, however, will be focussed on and explored in this essay; Quaker values, sales and marketing and product innovation. The aim of the essay is to explore the relative importance of all three of these factors and discuss, from different viewpoints, how critical they were in making Cadbury the successful company that it is today. Throughout this essay, I will argue that it is a combination of the factors stated that have led Cadbury to success. No single factor stated has been enough to be fully influential in the growth of the company and I will contend that all factors considered simultaneously in order to fully explain how and why Cadburys has accomplished so much over the years. I also aim to consider other factors which may have been more significant in Cadbury’s growth. The essay will be structured in a way that discusses the contribution of firstly Quaker values, secondly product innovation and finally sales and marketing, providing critical evaluation throughout. I will also discuss the link between the three factors and allow scope for other factors that may also have contributed to Cadbury’s success story. Richard and George were both dedicated Quakers and had been brought up following strict Quaker values, which shaped their way of life. This inevitably affected the way the company was run. Dellheim argues that Quaker values instilled independence and self-discipline into the brothers and “gave them the qualities most likely to succeed in business” (Dellheim, 1987, p.15) Also in the Quaker community, failing in business and going under owing money where severely punished. (Cadbury, 2010) Without the Quaker values the brothers possessed and the pressure they faced from the Quaker community, the brothers may not have had the motivation they did, and may not have worked as hard, which could have resulted in Cadbury not achieving what they did. It could therefore be argued that Quaker Values are pinnacle to the success of the company. As well as this, the Quakers views were that they were responsible for the welfare of their employees. (Dellhiem, 1987)These values encouraged the brothers to move their factory to the Bourneville works in the countryside to provide a happier and more comfortable working and living environment for their workers. This in turn improved staff relations, happiness within the company which lead to an increase in efficiency. (Cadbury, 2010) However, the welfare and personnel policies Cadburys introduced were derived from similar schemes the brothers had observed in their competitors factories, mainly in the United States.(Rowlinson and Hazard, 1993) As Cadbury were not the first company to do this, it could imply that it may not have been their Quaker values that led them to introduce such schemes, more seeing their success in other companies. Also, Rowlinson argues that the policies implemented at the Cadbury works are just a form of scientific management. He argues that the Cadbury brother’s use of welfare policies such as piece rates to pay the workers appear to be beneficial to the employees, whereas in reality they only benefited the employer, and allowed the company to run more efficiently, at lower costs. (Rowlinson, 1988) Such management techniques have been used elsewhere in other companies,...
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