Cadbury Schweppes Case Study

Case Overview

This case discusses the future of the Cadbury Schweppes on the global arena of the confectionary and beverage market. Over the previous decades the company has made several acquisitions to complement its general confectionary business with expended definition, including chocolate, soft drinks, sugar confectionary, and gum. The company was looking into expansion in the market through acquiring another company, but there were uncertainties regarding if this decision is a proper one or not.

Cadbury Schweppes was formed by the 1969 merger of a beverage company started by Jacob Schweppe in 1783 in Geneva, Switzerland and a chocolate business started by John Cadbury in Birmingham, U.K., in 1824. Schweppe firm was number three competitor in the beverage business after Coca-Cola and PepsiCo. Meanwhile, Cadbury was also number four player in the global chocolate business. Geographically, the beverage business was focused on North America, Europe, and Australia. Since the acquisition of Dr. Pepper and Seven-Up in 1995, the business has increased steadily and delivered cost synergies. By 2002, Cadbury Schweppes had 98 manufacturing and bottling plants located in the United Kingdom (11), the Americas (19), Europe (33), Australia and the Pacific Rim (20), and other countries (15). Sixty two plants made confectionery and the remainder made and bottled beverages.

Despite such vast number of facilities this company was facing great competition mentioned above Coca-Cola and PepsiCo that they are trying to outperform.

Definition of the Business

Vision: Dream of being number one in confectionary industry. To increase distribution of confectionery into the market and consumer and to promote brands that carry a mass franchise without compromise on quality or margins. Improve quality of the product as well as packaging of it.

Mission: To keep taste of confectionary homemade. Cadbury's promises to its consumers quality products and continue to build on it.

Goals: Cadbury Schweppes goal would be by placing a bid on Adams Company that is the number two player in the worldwide gum business and a leader in sugar confectionery. Through this acquisition the company's goal is to become a leader in confectionery business. Decrease price on point packs and