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Cadbury Case Study
Transcript of Cadbury Case Study
Unit 1.4 HL
Resolving Stake holder Conflicts
How does a business Resolve Stakeholder Conflicts?
Presenter: Sherry Wang, Joanne Ho, Nicholas Woo Cadbury Case Study In 2003, Cadbury, the chocolate manufacturer, announced a 9 million pound scheme to put sports equipment in schools across the UK.
The scheme involved encouraging customers to save tokens from chocolate bars and give them in schools, where tokens can be exchanged for sports equipments. Cadbury QUESTION STAKEHOLDERS AFFECTED Reasons affected CONFLICTS Priorities Is a campaign such as the "Get Active Campaign" the way to make children more aware of the importance of healthy exercise or just a ploy to sell more chocolate? EXTERNAL STAKEHOLDERS
Managers and Directors Pressure Group---offended by the campaign
Shareholders---receive less profit if the profit margin is dropping.
customer---misleading in buying the chocolates
Government---negative brand image, criticized for encouraging the children to eat more chocolates
Suppliers---less contracts signed if the company is affected by the pressure group and reduced the demand for a certain stock
Rival Firms---better financial performance without Cadbury's competition
Employees---demotivated, thus are unlikely to produce good quality products or deliver good customer services
Mangers and Directors---negative publicity, lower profit, demotivation Customers vs. Company
customers buying the chocolate might realize that the campaign is just a scheme created to sell more chocolate, yet neglects the importance of healthy exercise.
Society VS Company & Government
Although the government supports Cadbury's "Get Active Campaign", the general public is still suspecting that the candy company is using the concept of being active to lure children to purchase more chocolates
to receive only a volleyball set, children must collect $2000 (British pound) of tokens, and consume 1.25 million calories
detrimental to consumer's health
leading to obesity Our group thinks that Cadbury should cancel the concept of accumulating chocolate tokens. It it is CSR for companies of encourage customers to live a fit lifestyle, not a ploy to sell more chocolate.
In order to solve the conflict, Cadbury should cancel+ donate the sports equipment to "financially hard pressed" schools as an act of charity.
Hire a PR, if they do not have one.
Public Relations (PR) firms specialize in dealing with negative publicity.
In this case, PR could publicize that Cadbury is actually taking the actions listed above.
PR may publicize the fact that Cadbury has donated the sports equipment to "fiancially hard pressed" schools.