Corporate Strategy Corporate strategy concerned with the overall purpose and scope of the business to meet stakeholder

expectations. This level of strategy concerned with the selection of business in which the company should compete and with the development and coordination of the portfolio of business. This is a crucial level since it is heavily influenced by the investors in the business and acts to guide strategic decision making throughout the business. Corporate strategy is often stated explicitly in a mission statement along with the formulation of visions and goals. It also decides on how business unit to be governed; through direct corporate intervention (centralization) or through autonomous government (decentralization). Corporate strategy also seeks to develop synergies across the business units. Business Unit Strategy is concerned more with how a business competes successfully in a particular market. It concerns strategic decision about choice of products, meeting the needs of the customer, gaining advantage over competitors, exploiting or creating new opportunities or market, etc. The strategic issues is about developing and sustaining a competitive advantage for the product and service that are produced. Functional or Departmental Strategy the strategy level of the operating divisions. It is concerned with how each part of the business is organized to deliver the corporate and business unit level strategic directions. The functional units translate them into discrete action plans that each division must accomplish for the strategy to succeed. Operational strategy therefore focuses on issues of resources, processes, people, etc. Functional units involved in higher level strategies by providing input into the business unit level and corporate level strategy, such as providing information on customer feedback. Cadbury Corporate Strategy The demerger and reconstruction transformed the company into Cadbury plc to be a pure-play confectionery business. In order to deliver superior shareowner returns by realizing the vision to be the worlds biggest and best confectionery company (Cadbury factsheet 2009), the Vision into Action (VIA) plan of Cadbury plc for 2008 to 2011 has been brought up to embody all aspects of its strategy so as to channel all its efforts to realize its vision. At the heart of its Vision into Action plan is the performance scorecard, which has six financial targets: organic revenue growth of 4% to 6%, total confectionery share gain, mid-teens trading margins by end 2011, strong dividend growth, efficient balance sheet, and growth in ROIC (Cadbury factsheet 2009). The performance scorecard is designed to be delivered through a set of priorities, its sustainability commitments and its corporate culture. The top one priority of Cadbury plc is reflected in the mantra growth: fewer, faster, bigger, better , which aims to accomplish its objectives such as focusing on a fewer number of advantaged global and regional brands, making investments to get its new product developments into more markets at a faster rate, using joined up commercial and marketing programs to enjoy a bigger impact and underpinning the whole plan by executing its initiatives better. The following second priority is efficiency: relentless focus on cost and efficiency, which shows the companys understanding that Cadbury plc not only need to grow faster, but also need to become more profitable. The third priority of Cadbury is capabilities: ensure world -class quality, which requires, for example, ensuring that the company respond to changing customers and customer behavior as quickly as possible by developing new products or product extensions, or customizing global product platforms to new markets. In addition, Currently Cadbury plc has six sustainability commitments, which are, promote responsible consumption, ensure ethical and sustainable sourcing, priorities quality and safety, reduce carbon, water use and packaging, nurture and reward colleagues, and invest in communities. Those sustainability commitments have been chosen because Cadbury believes them to be able to improve its business performance and its influence on the world as well. In other words, those sustainability commitments have been chosen so that Cadbury plc is able to grow sustainably to make sure its changes and growth are driven via a performance driven and values led corporate culture. Cadburys corporate culture is defined to be a performance driven and values led one. In other worlds, Cadbury plc attaches great importance to performance, quality, respect, integrity and responsibility. Though being a

multinational business and having 45,000 employees all around the world, they strive to work as one team in spite of geographic and functional boundaries. Cadbury also works hard to create a working environment in which employees can have fun when at work. Besides, Cadbury plc fully understands that its success comes from the satisfaction with Cadbury of customers, suppliers, shareholders, employees and communities. The motto that once inspired Cadburys founders, Doing good is good for business, is still insp iring the current members of Cadbury plc who believe is indispensible to the companys growth and success. Striving to create brands that people love, Cadbury plc understands that innovation is the heart of it. Hence, Cadbury is not just satisfied with its current portfolio of successful brands. Instead, it continues to invest heavily on technology of taste, flavor, packaging, process development and nutrition to keep its competitive advantage. Business strategy The two companies have had progressive growth because of good business strategies. Cadburys has had a strategy of ensuring that it has presence in different markets to reach a wide base of customers (Holson, 2000, p. 9). To ensure that its manufacturing activities are not interfered with, it has plants in different countries for uninterrupted business activities. Because of a wide market, the company has ensured that it continues being innovative in giving customers new products every now and then to suit their divergent tastes and preferences (Weisenthal, 2009, p. 4). The company has adhered to healthy and safety practices to give itself a good name in the market. From its history it can be noted that it has introduced new products every year for continuity. Kraft Foods has been involved in a lot of research to come up with new products to increase its wide range of brands. The company has over 70 brands and this has made consumers more comfortable with their wide range became of choice (Holson, 2000, p. 2). Apart from this, the company has operations in more than 155 countries and this has enabled it to reach a wide market that it can sell its products to. It has also been involved in acquisitions to give it a wider market presence that the initial companies had. These activities have been done to enhance its financial position so that it can improve on its operations well (MacAlister, 2009, p. 5). To capture the attention of the market well with an impact, the company has engaged in promotions to enlighten the public about its products. These promotions have made consumers more knowledgeable about the company and its activities. Financial market environment This environment is responsible for an effective marketing management. The two companies have had a good history in terms of their financial performance save for a few occasions. Before the acquisition, the company (Cadbury) had started outsourcing most of its activities including marketing. Because the company has a wide global presence it has spent a lot of money in marketing activities to increase its market share. This has not been resisted at all as it has been aimed at increasing its value with investors in mind. Marketing activities have got the necessary financial support to strengthen the companys brand in the market. After acquiring Cadburys, the company (Kraft) has ensured that it engages in active marketing campaigns to strengthen its presences. The company has a wide global market that is competitive. Because of this, the management has always provided a good budget for marketing activities. This can be well demonstrated in the TV commercials that the company has been running in different countries. Since the company has a presence in more than 155 countries it has ensured that its marketing is felt in every place (MacAlister, 2009, p. 15). Marketing has been done with an aim of increasing the companys market value which has helped to increase revenues. Because the company has a large financial muscle, a sizeable amount of money has been allocated to the management to ensure that its marketing activities are felt in the market.

PESTLE implication Political The political deals with government influence. The main laws that will affect Cadburys are the consumer protection law. These are the laws and the recent changes in food labeling. The food labeling shouldnt be too influence as Cadburys has label all their goods properly to begin with. Change in manufacturing law will also greatly influence Cadburys as the company may have to change the way to product the cereal. This could lead to the introduction of new mechanical equipment being required or more thorough checks on the current equipment. If new equipment is required if could prove to be very expensive. The Weight and Measures Act, this act should not affect Cadburys since the company have all the equipment and scales used should already be at that of the highest standard. The Trade Description Act, this again should not affect Cadburys due to all the labeling on the products should be correct and thorough giving all the ingredients. The Sale of Good Act, these state that Cadburys should not mislead the consumer. These are currently three conditions. If the government was to introduce a few more it could prove to affect Cadburys. Economic The state of the economy is the main factor. It the country was to go into recession the consumer spending would also drop due to the unemployment. The recession would bring down the sales of a lot of goods mainly the expensive things, which are not necessity. The current economy is well. The interest rates are low and consumer spending is very high. Other economic factor that could affect Cadburys launching a product would be a rise in inflation. This is a rise in price over time. Social If the population size decreased then Cadburys be less people to buy the products therefore less profit. If peoples lifestyles changed. For example, nowadays more people wanting to get fit and lose weight, then they will stop eating chocolate and spend their money on gym memberships and others. This means that Cadburys profits will decrease. Technological An increase in capital expenditure will affect Cadburys. For example, more up to date equipment would mean that the goods where produced quicker and cheaper but would also result in job losses. In research and development, keep developing new products to keep up with competition and customer needs. Legal More legislation in place to make sure that the workplace is safe and the worker is better protected. Expensive costs to Cadburys to implement Environment Cadbury launched a corporate social responsibility Web site called DearCadbury.com, which provides consumers information on ethical sourcing, responsible consumption and the environment. The site features Cadburys 2007/08 Corporate Responsibility and Sustainability report, which revealed that the company has reduced carbon emissions almost 4 % to date; Cadbury is aiming for a 10 % reduction by 2010. As part of Cadburys Purple Goes Green program, the company committed to a 50 % absolute reduction in carb on emissions by 2020. Cadbury also reported that it has met its 2007 goal of reducing water use by 10 %