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Abstract

Cadbury Schweppes had grown its beverage business through several key acquisitions. Due to increased competition from other brands and a shift in consumer tastes, Cadbury started losing its market share in 2003. The company announced a restructuring plan to reorganise its operations. One of the plans was to integrate its three popular brands (Snapple, Dr Pepper/7 Up and Mott) into a new unit, Cadbury Schweppes Americas Beverages. The company also sold its European beverage business to concentrate on the beverage business of the US and Australia. The move led to speculation by analysts that the company may sell off its beverage business. The case helps in understanding the restructuring strategy being followed by Cadbury for its beverage business and provides the scope to discuss whether Cadbury would be able to face the stiff competition in the beverage business, especially in the US. The case also provides the scope to discuss whether Cadbury would sell off its beverage business to concentrate on its confectionery business. A structured assignment ''306-037-4'' is available to accompany this case.
Location:
Industry:
Size:
USD12,918 million (2004 sales)
Other setting(s):
December 2005

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Abstract

Cadbury Schweppes had grown its beverage business through several key acquisitions. Due to increased competition from other brands and a shift in consumer tastes, Cadbury started losing its market share in 2003. The company announced a restructuring plan to reorganise its operations. One of the plans was to integrate its three popular brands (Snapple, Dr Pepper/7 Up and Mott) into a new unit, Cadbury Schweppes Americas Beverages. The company also sold its European beverage business to concentrate on the beverage business of the US and Australia. The move led to speculation by analysts that the company may sell off its beverage business. The case helps in understanding the restructuring strategy being followed by Cadbury for its beverage business and provides the scope to discuss whether Cadbury would be able to face the stiff competition in the beverage business, especially in the US. The case also provides the scope to discuss whether Cadbury would sell off its beverage business to concentrate on its confectionery business. A structured assignment ''306-037-4'' is available to accompany this case.

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Location:
Industry:
Size:
USD12,918 million (2004 sales)
Other setting(s):
December 2005

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