PROJECT ON

Master of Commerce
Semester- I
2015-2016

Submitted
In Partial Fullfillment of the requirements
For the award of degree of
M.Com
By

Seat No.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Tolani College of Commerce

Sher-e-Punjab Society,
Andheri (East),
Mumbai - 400093

PROJECT ON

Master of Commerce
Semester- I
2015-2016

Submitted
In Partial Fullfillment of the requirements
For the award of degree of
M.Com
By

Seat No.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Tolani College of Commerce

Sher-e-Punjab Society,
Andheri (East),
Mumbai - 400093

CERTIFICATE

This is to certify that Ms. Shirley Marks of M.Com

Semester I (2015-2016) has successfully completed the
Project on

under the guidance of

Prof. Ms.

Project Guide :-

Course Co-Ordinator :-

External Examiner :-

Principal :-

DECLARATION

I Ms. Shirley Marks the student of M.Com Semester-I

(2015 2016) hereby declare that I have completed the
project on

in the course Xxxxxxxx xxxxx

xxxxxxxxx.. The information submitted is true and original

to the best of my knowledge. References have been cited
whenever necessary.

Date :Place :- Mumbai

Signature of Student

(Shirley Marks)

ACKNOWLEDGEMENT

Preparing the project on

Has given me extensive practical knowledge related to the course.

I would like to thank our Principal Dr. A. A. Rashid, for his

valuable support in preparing this project.

I express my deep sense of gratitude to the Course Co-Ordinator,

Ms. Sadhana Venkatesh for the valuable guidance and support
during my project work.

I am thankful to my guide

for providing me the

guidance throughout the course of this project. I am also thankful

to her for her patiently and critically evaluating the content of
this project.

I would like to take this opportunity to express my gratitude to all

the staff of library and Computer Lab for their support.

CADBURY

WHAT IS HUMAN RESOURCE MANAGEMENT?

Human Resource Management (HRM) is the function within an organization that focuses on
the recruitment of, management of, and providing direction for the people who work in an
organization.
Human Resource Management (HRM) has been through a lot of changes as far as
management of people is concerned. People or employees are often viewed in three ways:
cost, resource, and asset. Moreover, organisations nowadays are realizing that employees are
also a determinant factor to the performance of the organization. Along with the many

changes in the business environment: new technology, employment legislation, economic

recession, society; Strategic changes: greater customer focus, reduced levels of management,
adoption of TQM and teamworking; traditional HRM has also evolved. The need of an
integrated and sound approach to managing people gave birth to Strategic Human Resource
Management (SHRM).
Altogether, human resource management is the process of proper and maximum utilisation of
available limited skilled workforce. The core purpose of the human resource management is
to make efficient use of existing human resource in the organisation. Every organisations
desire is to have skilled and competent people to make their organisation more effective than
their competitors.

COMPANY OVERVIEW
Cadbury Schweppes has a history of being a traditional, family company, caring for its
employees by providing benefits, excellent working conditions and welfare rights. As it has
grown the culture has been maintained through the involvement of Human Resources
strategically throughout all levels of the company.
Cadbury Schweppes employs more than 50,000 people (7,000 in the UK) and has
manufacturing operations in more than 35 countries. It is the world's third largest soft drinks
company and holds either the top or second position in the market share of 24 of the world's
top 50 confectionery markets. Its brands include Cadbury, Schweppes, Trebor, Bassett's,
Trident, Dr Pepper, Halls, Dentyne, Snapple, Orangina, Bubblicious and 7UP.
It is clear that within the culture of the company they look for a certain degree of aggression
in their leaders. It is important to highlight that the HR Director is also on the main board of
directors as it guarantees that HR strategies are represented at the top level of the company.
The HR Function is supporting the Business Strategy at Cadbury's in many ways. From top to
bottom and bottom to top. The HR function is apparent in all aspects of the business
including the HR director on the main board. The HR Link is extremely important to the
business. For the company it is essential to take into account people's considerations.
The company clearly focuses on its employees. It has done this by creating a unique culture
within the organization where people enjoy their work and feel proud to be a part of the
company. The company programme managing for value was aimed at increasing how the

company could be more profitable. This programme helped employees to understand the
importance of being results focused. By developing a new culture rather than using an
existing one was a strategy of HR. This brought about a sense of ownership by everyone. The
company culture also promoted working collaboratively with the programme working better
Together. One of HR's biggest goals is to unlock the potential in its people, by using a joint
problem-solving approach.
CADBURY MISSION STATEMENT:
Cadbury means quality: this is our promise. Our reputation is built upon quality: Our
commitment to continuous improvement will ensure that our promise is delivered.

MODELS OF SHRM OF CADBURY

In assessing Cadbury's approach to managing its human resources:

It is important to firstly analyse Cadbury Schweppes to establish if it has a high or

low commitment to HR strategies.

There is a set of components that indicate the degree of commitment a company has

towards HR strategies.
When a company has a high commitment to HR strategy it is argued that human

resources can create high levels of uncertainty for its managers.

The organization cultures within Cadbury Schweppes indicate that the company has

shared values and an emphasis on problem solving.

The employees are encouraged to be profit driven and must be results' focused. They

do this by incentive share schemes open to everyone with a permanent contract.

This strategy reinforces and motivates the employees to see that the company does
well. The share schemes can be very lucrative for the employees.

Example 1: It was clear from the survey conducted last year where over 90 percent of the
employees had said they understood the business's purpose and values and that they were
proud to work for it. Involving the employees and ensuring that they have a good
understanding of the purpose has been key to the success of the business.
Example 2: Company's commitment to HR is after their purchase of Adams in 2003; they
went through a major reorganization in the business and formed a more decentralized
structure and way of operating the business. HR has had an important role, instead of
choosing one or the other existing cultures they looked for the kind of culture for a winning
business.

The company's emphasis on getting more from its people. The program growing Our
People was said to be an important fact in recent successes by unlocking the potential
or people at levels within the business. Andrew Gibson, the HR Director (GB and
Ireland) emphasized the need to get the most out of the people by motivating them
and creating a coaching approach.

Having a link through HR to the main board is extremely important it's important for the
people considerations and allows HR to be well informed of all business issues on a global
and local level. The company's commitment to HR is evident in its top-down programs and
bottom up initiatives.

FOUR MAIN GOALS OF THE HUMAN RESOURCE MANAGEMENT

APPROACH

Strategic integration,
Commitment of the employees to the organization,
Flexibility in structure and
Functions and high quality of goods and services.

THREE MAIN DIMENSIONS OF HRM IN CADBURY

Commitment
quality enhancements and
flexibility

They are important factors for low staff turnover, adapting to change and productive job
performance. This model was implemented in Cadbury Schweppes in 1977 with the
programme called Managing for change where the three As where talked about.
Accountability which was taking ownership, adaptability which was about coping and
adapting to change and aggressiveness which was being results focused. There are many
SHRM models. The best practice and best fit views are two traditional models but the new
trend is the resource-based approach. This model is different because it first addresses the
organization internally and its potential for developing ways of exploitation. Cadbury

Schweppes follows a combination of approaches. The strong HR presence indicates clearly

the best practice approach but they are also resource based. This approach focuses on internal
personnel and their abilities and capabilities.
SWOT Analysis of Cadbury
SWOT Analysis is the method to evaluate the Strength, Weakness, Opportunity and Threats
involved in an organization. It includes identifying the internal and external factors that are
favourable or unfavourable to achieve the objectives of the organization.
Strength:
1. Largest global confectionery supplier.
2. Market leaders in three sectors: Chocolates, Confectionery and food drinks
3. Cost of Production is low due to economic of scale which leads to higher profit and better
market penetration.
4. High financial strength.
5. Strong brand name and leader in innovations.

Weakness:
1. Poor technology in India as compared to other nations
2. Limited key products as it is depended only on chocolates and beverage market compared
to other competitors.

Opportunities:
1. Growing middle class and growing urban population.
2. Increasing gifts cultures.
3. Substitute to Mithais with higher calories/cholesterol.
4. Increasing concept in departmental stores desire @ at cash counters.

5. Opportunity increases with increase in market shares by acquisition.

6. Transfer production to low cost countries where labour cost and raw material will be
cheap.
7. Introduction of new products with low fats.

Threats:
1. Due to highest brand equity and low cost, it is successful in India.
2. Globalization will bring in better brands for upper end of the market.
3. High fats and calories in the products of Cadbury may reduce the demand of the consumers
who are conscious of nutrition and healthier lifestyles.
4. Competitive pressure from other national and global suppliers

INSTALLING AN INFORMATION SYSTEM FOR CADBURY

Cadbury is one of the most potent players in the industry. However, the increasing number of
competition and volatility of the market tend to cast a shadow on the continued success of the
company in the international scene. This part of the project will provide a brief description of
the importance of CRM in the processes of an organisation working in an international scale.
Along with this a set of proposed courses of action will be discussed below to cater to the
CRM needs of the company and in the same time help in the improvement of the information
systems of Cadbury. Consequently, the consequent ethical issues that the company could
encounter upon the implementation of these initiatives will be addressed.
A. Customer Relationship Management
The theory of CRM has been around for a considerably long time already. For this reason, it
is thus not surprising that every field may already employed its principles in its operations.

For instance, there have been studies that looked into the conditions surrounding the
implementation of CRM principles in businesses owned and controlled by a particular family.
In this study, the executives were among those who were taken in as respondents. This study
indicated that sophisticated planning, technology and high levels of investment tend to be the
activities that a non-family executive undertake. On the other hand, family members who
have positions as executives have the propensity to take on traditional and be more risk
averse in implementing certain customer relationship management methods. To a certain
extent, the findings of this project indicates that the implementation of CRM methods and
even IS initiatives is heavily dependent on the characteristic of the executive handling a
particular CRM project. Specifically the behaviour of executive towards risk (risk aversion or
risk taking) dictates the possibility of success or failure in releasing the goals of a company.
Aside from the importance of leadership in implementing CRM methods, studies have also
indicated that the chosen CRM initiatives should complement the strategy of the company.
For instance, a company focused primarily on improving the quality of their products could
encounter problems in their implementation of CRM. It is indicated that the implementation
of modern quality manufacturing systems like the lean system tends to compromise the
relationship of the company with its clients. It is established that on focusing on one aspect, a
gaping chasm is crated with regards to the other. However it was surmised that it could be
managed though the infusion of IT technologies in the operations of the organization. It is
indicated that these information systems would be an exceptional tool that companies could
employ not only as a means of communication from the company to the consumers, but as a
tool to gather information about them. Specifically, information systems could be used to
gather data to determine consumer demands, buying behaviour and even forecasting the
possible trends in the market. To this end, CRM and IS would go hand in hand for companies
like Cadbury generating a strategy that would provide them with their much desired
international approval from the consumers.
B. Proposed information systems to be employed
Create a solid Information Technology Programme
Every modern company should have a necessary IT plan installed in their strategy. This will
be able to boost their competitive advantage over the other players in the industry. At the
same time, managers will be able to make the most of these applications to help them come
up with decisions that will essentially be beneficial for the company as a whole. Operations in

production, marketing, customer relations, distribution, finance, human resources and

network processes are among the areas where the infusion of IT processes would make the
operations more efficient and in the end establish great results for the organisation.
Online Marketing
In the emergence of the internet as a major tool in connecting the world, companies like
Cadbury use it as means to provide information about their company to the public. In the
same time, these also work in a similar fashion as a means of acquiring data from the
consumers. Basically feedback coming from those who bought their products could be used
to their favour. However, this type of information is rarely placed online, especially in the
website of the company. In the website of Cadbury Schweppes, they provide information
regarding the company for the public, especially those that intend to place investments in
their corporation; a resource centre for the investors themselves; a media centre; a link
describing their respective brands; the corporate social responsibilities on which Cadbury
adheres to; and the possible careers in the company. This paper thus recommends the
company constantly update their site and maintain it on a regular basis. Basically this is
important because the major users of the site are the companys major stakeholders. This
means that shareowners, consumers, customers, suppliers, employees and even the online
part of the society employ this as their source of information regarding the company. Seeing
the mission statement of the company, it appears that a constantly updated set of information
is necessary if they intend to develop a greater level of responsibility toward these people.
Call centre outsourcing
Basically, a considerable number of customers of the company do have access to the internet.
However, these customers should have the initiative to look at the website of the company to
actually know about the company and even provide feedback. One great way of reaching the
customers is through the use of telephones. Thus, call centre outsourcing shows great
potential for the company. This has made wonders for the banking industry as they
outsourced the incoming and outgoing calls. Studies have indicated that companies could use
these types of call centres to acquire information through telephone surveys. In the same time
these call centres could also be employed as those who accept inquiries from suppliers and
even complaints from the consumers regarding their product. In any case, the actual
employees of the company become more focused on the manufacturing area of their job.

C. Ethical Issues in installing an information system

In looking at the proposed courses of the action above, it shows that the bulk of the required
information system initiative is data acquisition. This means that the company will be asking
for information from their major stakeholders and use it to develop their strategies and
marketing programmes. To this end, the sole issue would be on the privacy of the respondents
as well as the other shareholders of the company.
In the same regard, another ethical issue that the company needs to address is the factual and
accurate nature of the information that they are giving in their website. Basically, this is one
of the major areas where the shareholders, suppliers, existing and possible clients acquire
information on the company. Thus, the company has the responsibility on these stakeholders
in keeping their operations transparent and open for enquiries regarding their products.

Thus, the installation of a stable and reliable information system in the organisation will
considerably give wonders to the company. There is a huge possibility that the company will
be able to improve their customer relationship management initiatives as they implement the
proposed courses of action indicated above. In improving their customer relationship
management, companies like Cadbury Schweppes will also be able to generate and even
manage their opportunities in the market. With stronger ties with close clients, companies
will tgen be able to find ways to expand their scope and then acquire the lions share of the
overall market in the international confectionary industry.

Cadburys recruitment and selection process

Cadbury Schweppes, one of the worlds largest confectionery companies, has significantly
improved the speed and efficiency of its graduate and management recruitment processes by
introducing online verbal and numerical reasoning tests in place of paper-based versions.
Provided by assessment specialist PSL, the online tests give objective evidence about
applicants to help Cadbury Schweppes shortlist the best candidates.
Psychometric assessment has always played a part in our recruitment process, said Oliver
West, Cadbury Schweppes Resourcing Manager for UK and Ireland. However paper-based

tests can be unwieldy and time-consuming. Graduates used to spend 90 minutes of an

assessment day on verbal and numerical tests. After a successful trial last year, weve cut this
down to a 45- minute online experience prior to the interview stage. We feel this is a far more
efficient way of achieving what we want to achieve. It also means we get better value out of
our assessment days because candidates can spend more time on job-related exercises.
Historically the time that needs to be dedicated to conducting testing has been
counterproductive in our efforts to see testing used more effectively and more consistently.
Having decided to enhance its online recruitment process, Cadbury Schweppes looked at a
number of suppliers but selected PSL.
We felt that PSL were comfortably the most appropriate partner, said Oliver West. This is a
new area for us, so to work with a supplier that really understands this process has been
ideal.
Around 4,000 candidates apply each year for the 20 available places on Cadbury Schweppes
graduate programme. The company looks for a base academic knowledge and the three
characteristics of judgement, drive and influence.
When you have so many applications, and can only commit to a finite number of interviews,
it is critical to carry out the broadest assessment as early as possible, said Oliver West. It will
always be a marginal choice between candidates. A-level results are becoming a less relevant
indicator of a candidates ability. We use PSLs verbal and numerical reasoning tests to
provide additional information to the recruitment process. The tests help us make a decision
by providing evidence that doesnt rely on subjective human judgement.
Applicants for managerial positions at Cadbury Schweppes may also be asked to undertake
online verbal and numerical reasoning tests, or an online personality questionnaire to inform
and target the interview process.
We need great people in our business because they create the brands that consumers love,
said Oliver West. PSLs online tests have enhanced our recruitment process. Not only do they
save us time but they also give us more information on which to assess candidates. Ultimately
they help us make a better quality of hire. This will always be our ultimate goal.

KEY TO SUCCESS OF CADBURY

The key to successful HR support to an organization is developing a culture flexible and
encouraging employees to be adaptable to change. With an open-minded outlook improved
performance becomes achievable. Communication between management and employees is of
great importance and the need for involvement in the decision making process. Also it should
be stressed the importance of listening to the employees too. HR needs to support the change
with training, workshops and constant communication. HR support should focus on the
company culture and having caring values and developing a sense of belonging and team
work.

TRENDS IN THE MANAGEMENT OF HR FUNCTIONS

Auditing performance, Auditing Performance has the objective of ensuring that the
investment in personnel can be justified. This is used for setting up agreements and
targets for the HR role within the company. Cadbury Schweppes uses this strategy of
auditing performance to invest in its people and to set budgets bringing added value to

the company.
Devolution of HR activities is important for a more business led response to
employee related issues. Devolution is when some of activities normally carried out
by HR department are given to line managers or locations away from the head office.
Cadbury Schweppes has indeed followed this trend reaping the benefits since the days
of Managing for Value was launched in 1977 by John Sunderland.

According to Hall & Torrington (1998) devolution includes certain activities such as work
organization, training, recruitment and selection, appraisal and employee relations. There are
many benefits with devolution.
One important benefit is enhanced ownership something very important to Cadbury
Schweppes in their culture. It enables empowerment by management and a higher degree of

flexibility in the decision making process. This flexibility has brought about improvement in
the relationship between personnel and line managers
A possible disadvantage of devolution could be that it is seen as having less commitment by
top management to HR issues and integration of HR policies.

Decentralization of the human resource functions amongst other business activities.

In their period of greatest change, in 2004, they went through a major reorganization,
they moved to a decentralized organizational structure basing it on five global regions.
A principal advantage of having decentralized activities is to be more flexible in terms
of the speed at which decisions can be made.

It is based on Human resource Role-Assessment Survey by Dave Ulrich and Jill Corner to
analyse. HR is used to improve employee needs, improve operating efficiently and aid with
the process of change. HR is involved in many programmes.
Example: the working better together framework to help working collaboratively with the
decentralized structure. The company scores highly in the area of adapting to change where is
has tried to create a unique culture between the businesses. By producing this culture and
involving everyone in the process gives everyone a sense of ownership.

EVALUATION OF CADBURY HUMAN RESOURCE PRACTICES

In evaluating the success of Cadbury Schweppes and their HR strategies and more recently
Cadbury Schweppes Adams. A general overview of companywide strategic HR planning
provides evidence that supports a balanced approach in the strategic planning of HR
resources and functions. Several examples can be highlighted such as business focus, results
orientation and performance enhancement has been addressed by the policy of auditing
performance.
The number one goal of 2004-7 was "to deliver superior shareholder performance" The
auditing of performance and the adoption of coaching approach to unlock existing employee
potential which gave rise to the Growing our People programme which was deemed to be one
element in the success of the company in the last three years. The focus on behaviours and
unlocking the potential of employees at different levels of the business paid dividends and
obviously resulted in enhanced performance.

One particular area targeted for improvement is the lack of attention directed at poor
performance as felt by the employees which is to be tackled by yet another programme
denominated Passion for People which specifically tackles the mechanics of managing
performance.
The company demonstrates a balanced approach in the area of human resource management
with a strong focus upon achieving business objectives and delivering superior shareholder
performance while at the same time involving and committing employees at all levels within
the business to a programme of performance optimization and adaption to change. The
inclusion of both strong business strategies along with commitment, partnership and
involvement strategies involving employees has strongly contributed to the development of
the Cadbury's Schweppes culture rather than simply adopting an off the shelf or more generic
solution to fit their requirements

CONCLUSION
In conclusion Cadbury Schweppes has a high commitment to HR Strategy throughout the
company. This is emphasized in the company structure with HR appearing on the board of
directors and its focus on the people aspect of its company and their collective involvement
and interest in the success of the business.
Cadbury Schweppes has had to cope with change throughout its history, Recently with the
acquisition of Trebor Bassett and Adams in 2003. The organization has been continually
changing and adapting. This ability to adapt to change has to be a quality of all of their
employees. The company has run programmes to help their employees embrace, instead of
fear change.
Cultures bind an organization. They give unity of purpose and also motivate and stimulate
employees. It is vital that any organization takes time and gives consideration to the culture
they wish to develop. A resources orientated culture within an organization is more
productive than a traditional culture without clear employee goals.
According to Paul Bate (1992) there is an important relationship between organizational
culture and effective organization problem solving. Bate's model of culture is used to measure
an individual's attitude to organizational life. In Cadbury Schweppes they clearly show the

attitude of conservatism, which is the receptiveness to learn and experiment. Within the
organizational culture, it is essential to welcome all aspects of positive change.
Cadbury Schweppes has had a culture of commitment to its staff in return for loyalty and has
been results orientated for many years. With the new acquisitions in 2004 they had to involve
all relevant managers and develop a new culture, a unique culture that would allow for a
more harmonious relationship between the existing and new staff. The benefits of creating a
new culture would facilitate the integration of different groups.
The company has managed this change very effectively with HR playing a very important
role in the success of managing change within the organization.

REFERENCE
http://www.authorstream.com/Presentation/aSGuest106716-1121285-human-resourcemanagement-cadbury-ppt/
http://www.ijsrp.org/research-paper-1014/ijsrp-p3408.pdf