Cadbury Case Study

Cadbury is a multinational British company. Cadbury was established in Birmingham, England (1824), by John Cadbury who sold coffee, tea and drinking chocolate.

The Cadbury story in New Zealand is full of wonder and magic.

Bright eyed and bushy tailed, Richard Hudson arrives in Dunedin and opens up his first biscuit bake house. All of a sudden, cups of tea had never tasted so good.

This visionary of confectionary opened what we think was the Southern hemisphere’s first chocolate and cocoa manufacturing plant.

Lots of magical things happened in 1930. When Mr Hudson and Cadbury joined forces to make New Zealand’s first bar of Cadbury Dairy Milk chocolate. The sweetness had landed.

Cadbury is best known for its confectionery items including the

(Cadbury New Zealand, 2015)

(www.wikipedia.com, 2015)

ii. Markets

Cadbury has export its product to different parts of the world, in which Cadbury NZ exports biggest production part to USA and Australia.

iii. Competitors

The main competitors for Cadbury brand are Mars, Nestle, Hershey, Ferrero. These companies also have a demand of chocolate products in the market.

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B. Influences to export management decisions and cash management process

i. Socio Demographic

Starting from 1930 most of its target demographics are the purchasers of Cadbury from children to all age groups. Consumers age group are 3 to 60 year and buyers group are 12 to 60 year. Having mid to high income living in urban areas. Environmentalists, vegetarian, and health-conscious individuals are also targets of the product. Cadbury stocks the product in convenience stores and supermarkets. People are buying the chocolate for consumption and to give as a gift now. The target market for dairy milk is each and every member of the

Contract terms on price method

CIF (Cost, Insurance and Freight)

Cadbury NZ pays cost and freight to bring the goods to the named port of destination.

Cadbury NZ is obliged under CFR, a marine insurance against the buyer risk of loss or damaged of goods during the courier.

Cadbury NZ contract for the insurance and pays the insurance premium.

C. Cash Management Process

i. Material Purchase

Cadbury NZ exquisite raw material from Ghana, Africa and merchandise its product in USA and Australia through federal wire transfer, bank transfer and invoice discounting.

ii. Payment of resources

All resources which are needed to support sale, labour, overhead expenses, marketing etc. are met by Cadbury NZ until the cash is collected through the appropriate method of payment for the sales made.

iii. Sale of inventory or services

Cadbury NZ merchandises its sales very frequently supported by the policy of extending credit limit to customers. The timing of accounts receivable is fixed with mutual negotiation. Where collection is the major focus in cash management.

iv. Collection of receipts

Customer provide funds for the merchandise which further constitutes to the cash inflow cycle for the transaction through appropriate mode of