Arif Mohammad
Unit 1 – Exploring Business
Learning Aim D: Examine business markets
UNIT 1 – ASSIGNMENT 2
Learning Aim D: Examine business markets
, Arif Mohammad
Unit 1 – Exploring Business
Learning Aim D: Examine business markets
Contents
Corporate Social Responsibility...................................................................................................................3
Business Ethics.............................................................................................................................................5
Competitive Advantage Factors...............................................................................................................6
Differentiation.........................................................................................................................................6
Pricing Policies.........................................................................................................................................7
Market Leadership and Market Share.....................................................................................................8
Reputation...............................................................................................................................................8
Cost Control.............................................................................................................................................9
Technology relationship with customers, suppliers, employees............................................................10
SWOT Analysis of Cadburys.......................................................................................................................10
Porters 5 forces (Cadbury).........................................................................................................................20
Threat of new entrants..........................................................................................................................21
Bargaining power of suppliers...............................................................................................................21
Bargaining power of customers.............................................................................................................22
Threat of substitute products................................................................................................................23
Intense Rivalry......................................................................................................................................23
Market Structure.......................................................................................................................................23
Demand and Price.....................................................................................................................................24
Price Elasticity....................................................................................................................................24
Substitutes.........................................................................................................................................25
GDP....................................................................................................................................................25
Needs/aspirations of consumers.......................................................................................................25
Competition.......................................................................................................................................26
Income..............................................................................................................................................26
Marketing..........................................................................................................................................26
External Influences............................................................................................................................27
Supply........................................................................................................................................................27
Supply................................................................................................................................................27
Logistics.................................................................................................................................................28
Ability to produce profitably..................................................................................................................28
1
, Arif Mohammad
Unit 1 – Exploring Business
Learning Aim D: Examine business markets
Government support.............................................................................................................................28
Current trends...........................................................................................................................................29
Cocoa prices risen..............................................................................................................................29
Takeover from Kraft/Mondelez.........................................................................................................30
Increase in demand for Fairtrade/Organic.........................................................................................31
Future trends.............................................................................................................................................32
Increased competition...........................................................................................................................32
Demand dropping..............................................................................................................................34
Continued increase in costs of Cocoa................................................................................................34
Increased legislation on environment...................................................................................................35
Increased desire for ethical businesses.................................................................................................36
Evaluation..................................................................................................................................................37
Bibliography...............................................................................................................................................40
Corporate Culture
Corporate culture is defined as the beliefs, visions and the behaviors that decide how a business is run.
For example, Cadburys corporate culture includes they looked after their employees by giving them
2
, Arif Mohammad
Unit 1 – Exploring Business
Learning Aim D: Examine business markets
good pay, leisure activities and good working conditions which can contribute in having happy
employees being more productive. Another example of Cadburys corporate culture is that the business
was set up by Quakers and they set up their business well. Mergers is defined as when one business
combines with another business to form a new business. Cadbury merged with Schweppes in 1969
forming Cadbury Schweppes however Schweppes demerged in March 2008 as they wanted to focus on
their drinks company. A takeover is when an existing business takes complete control over another
business and implements a change which can destroy how it’s run.
One example of a takeover includes Kraft Foods taking over Cadburys. Kraft foods is an American
company where their corporate culture is defined as being a profit driven business who are interested in
merging/taking over existing businesses. This is important because Kraft foods are heavily interested in
taking over businesses that attain a lot of profit and this can ruin the businesses values/culture they
have as another business takes over them which can cause a culture clash. Kraft wanted to take over
Cadbury because they are a profit-driven business and were attracted to Cadburys strong performance
as a business. Initially, Kraft foods gave a bid of £10.2 billion but Cadbury rejected however by February
2010 Kraft had 71% share of Cadbury. Kraft foods split in 2011 where they become 2 different
companies which include Mondelez International and Kraft Foods Group. One benefit of Cadbury
Mondelez culture is that it’s a well-established business because of Quakers who implemented positive
values that reflected their beliefs. Another benefit of Cadbury Mondelez culture is that George Cadbury
wanted to improve the working conditions of their workers by building them houses and building them
the Bourneville village. A drawback of Cadbury Mondelez Culture is Kraft foods will interfere and cause a
culture crash which can ruin their decision-making and how they run. Another drawback of Cadbury
Mondelez Culture is Kraft foods can implement changes towards the businesses values which can ruin
their heritage.
This article is supporting my previous point where Kraft food wanted to take over Cadbury and
succeeded with a bid of £10.2 billion.
https://www.bbc.co.uk/news/business-27258143
Corporate Social Responsibility
Corporate social responsibility refers to a business’s commitment to help social/environmental
concerns and interact with their stakeholders. It’s important for a business-like Cadbury to have
a
CSR
3
Unit 1 – Exploring Business
Learning Aim D: Examine business markets
UNIT 1 – ASSIGNMENT 2
Learning Aim D: Examine business markets
, Arif Mohammad
Unit 1 – Exploring Business
Learning Aim D: Examine business markets
Contents
Corporate Social Responsibility...................................................................................................................3
Business Ethics.............................................................................................................................................5
Competitive Advantage Factors...............................................................................................................6
Differentiation.........................................................................................................................................6
Pricing Policies.........................................................................................................................................7
Market Leadership and Market Share.....................................................................................................8
Reputation...............................................................................................................................................8
Cost Control.............................................................................................................................................9
Technology relationship with customers, suppliers, employees............................................................10
SWOT Analysis of Cadburys.......................................................................................................................10
Porters 5 forces (Cadbury).........................................................................................................................20
Threat of new entrants..........................................................................................................................21
Bargaining power of suppliers...............................................................................................................21
Bargaining power of customers.............................................................................................................22
Threat of substitute products................................................................................................................23
Intense Rivalry......................................................................................................................................23
Market Structure.......................................................................................................................................23
Demand and Price.....................................................................................................................................24
Price Elasticity....................................................................................................................................24
Substitutes.........................................................................................................................................25
GDP....................................................................................................................................................25
Needs/aspirations of consumers.......................................................................................................25
Competition.......................................................................................................................................26
Income..............................................................................................................................................26
Marketing..........................................................................................................................................26
External Influences............................................................................................................................27
Supply........................................................................................................................................................27
Supply................................................................................................................................................27
Logistics.................................................................................................................................................28
Ability to produce profitably..................................................................................................................28
1
, Arif Mohammad
Unit 1 – Exploring Business
Learning Aim D: Examine business markets
Government support.............................................................................................................................28
Current trends...........................................................................................................................................29
Cocoa prices risen..............................................................................................................................29
Takeover from Kraft/Mondelez.........................................................................................................30
Increase in demand for Fairtrade/Organic.........................................................................................31
Future trends.............................................................................................................................................32
Increased competition...........................................................................................................................32
Demand dropping..............................................................................................................................34
Continued increase in costs of Cocoa................................................................................................34
Increased legislation on environment...................................................................................................35
Increased desire for ethical businesses.................................................................................................36
Evaluation..................................................................................................................................................37
Bibliography...............................................................................................................................................40
Corporate Culture
Corporate culture is defined as the beliefs, visions and the behaviors that decide how a business is run.
For example, Cadburys corporate culture includes they looked after their employees by giving them
2
, Arif Mohammad
Unit 1 – Exploring Business
Learning Aim D: Examine business markets
good pay, leisure activities and good working conditions which can contribute in having happy
employees being more productive. Another example of Cadburys corporate culture is that the business
was set up by Quakers and they set up their business well. Mergers is defined as when one business
combines with another business to form a new business. Cadbury merged with Schweppes in 1969
forming Cadbury Schweppes however Schweppes demerged in March 2008 as they wanted to focus on
their drinks company. A takeover is when an existing business takes complete control over another
business and implements a change which can destroy how it’s run.
One example of a takeover includes Kraft Foods taking over Cadburys. Kraft foods is an American
company where their corporate culture is defined as being a profit driven business who are interested in
merging/taking over existing businesses. This is important because Kraft foods are heavily interested in
taking over businesses that attain a lot of profit and this can ruin the businesses values/culture they
have as another business takes over them which can cause a culture clash. Kraft wanted to take over
Cadbury because they are a profit-driven business and were attracted to Cadburys strong performance
as a business. Initially, Kraft foods gave a bid of £10.2 billion but Cadbury rejected however by February
2010 Kraft had 71% share of Cadbury. Kraft foods split in 2011 where they become 2 different
companies which include Mondelez International and Kraft Foods Group. One benefit of Cadbury
Mondelez culture is that it’s a well-established business because of Quakers who implemented positive
values that reflected their beliefs. Another benefit of Cadbury Mondelez culture is that George Cadbury
wanted to improve the working conditions of their workers by building them houses and building them
the Bourneville village. A drawback of Cadbury Mondelez Culture is Kraft foods will interfere and cause a
culture crash which can ruin their decision-making and how they run. Another drawback of Cadbury
Mondelez Culture is Kraft foods can implement changes towards the businesses values which can ruin
their heritage.
This article is supporting my previous point where Kraft food wanted to take over Cadbury and
succeeded with a bid of £10.2 billion.
https://www.bbc.co.uk/news/business-27258143
Corporate Social Responsibility
Corporate social responsibility refers to a business’s commitment to help social/environmental
concerns and interact with their stakeholders. It’s important for a business-like Cadbury to have
a
CSR
3
