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Abstract

This is the second of a three case series. The (A) case describes the situation of Cadbury Schweppes (CS) and its sugar confectionery business, in a state of 'satisfactory underperformance' in which past strategies and practices make it hard for new management to initiate change in this widely respected company. The (B) case shows how from 1997 to 1999 John Sunderland, the new CEO and a new divisional manager used value based management (VBM) as a vehicle for transforming respectively the company and the sugar confectionery division with strong emphasis on people and leadership practices. The (C) case describes how CS' performance management system was redesigned in line with the Managing for Value (MfV) philosophy. It illustrates the new management performance process in action in the beverages business in Spain, where the country manager is faced with major competitive challenges. The immediate purpose of the Cadbury Schweppes series is to allow an informed discussion on the use and implementation of Value Based Management, from a broader managerial rather than the typical financial perspective. The broader purpose is to illustrate how VBM can lead to corporate transformation and a sharpening of leadership practices in large firms. The series further describes how the design of the performance management system supports the implementation of MfV.
Size:
Turnover GBP4,575 billion and 36,000 employees worldwide

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Abstract

This is the second of a three case series. The (A) case describes the situation of Cadbury Schweppes (CS) and its sugar confectionery business, in a state of 'satisfactory underperformance' in which past strategies and practices make it hard for new management to initiate change in this widely respected company. The (B) case shows how from 1997 to 1999 John Sunderland, the new CEO and a new divisional manager used value based management (VBM) as a vehicle for transforming respectively the company and the sugar confectionery division with strong emphasis on people and leadership practices. The (C) case describes how CS' performance management system was redesigned in line with the Managing for Value (MfV) philosophy. It illustrates the new management performance process in action in the beverages business in Spain, where the country manager is faced with major competitive challenges. The immediate purpose of the Cadbury Schweppes series is to allow an informed discussion on the use and implementation of Value Based Management, from a broader managerial rather than the typical financial perspective. The broader purpose is to illustrate how VBM can lead to corporate transformation and a sharpening of leadership practices in large firms. The series further describes how the design of the performance management system supports the implementation of MfV.

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Size:
Turnover GBP4,575 billion and 36,000 employees worldwide

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