By submitted to
Sunil Mohan Megha Gaur
Yuvraj Narang
Vinay Vennanmaneni
Introduction
Cadbury is a leading worldwide confectionery
organization .
organization currently has around 50,000 employees
Those brands are made which are loved by the
individuals.
The secret of Cadbury’s success
Quality
Value for cash
Advertising
Non-Financial Risks
Continuous Shifts in Consumer Demands
Increased Competition
Disruption in manufacturing and
distribution systems
Dependency of performance on various
components
Failure of Information system
Financial Risks
Market Risk
Failure of Outsourced Parties
Quality and safety standards
Effects of Economic Conditions
Risk of Investments due to volatile market
Market Diversification
development and
and vulnerability
vulnerability
Vulnerability
assessment
Market Product
penetration and development
vulnerability and
vulnerability-
Modern
technology
Product
integrity and
Risk Supplier
marketing strategies relations
Avoid
diversification
and its risks
Risk mitigation strategies of Cadbury
The Cadbury is known for its sweetness and happiness thus, they want every customer to
be satisfied and cater their need on time. Therefore, companies take variety of measure to
counter the risk that could affect the efficiency and effectiveness of the Cadbury industry.
As to maintain its strong footing in the market and distribute its risks evenly the Cadbury
had its manufacturing unit in 50 countries and export 60 % of products across the world.
Thus, making highest earning company among the world. As well company mergers with
KRAFT company which is US based food company. The reason behind such merge was to
reduce the risk in terms of legal, political, social and economical aspects.
Contingency plan
• Mainly in the food industry, Manufacturers in the supply chain must have an effective business
contingency plan also known as a business continuity plan
• The BCP plays a critical role in helping a business to manage its reputation and continue its
ability to serve customers in the event of a natural disaster e.g., tornado, flood, fire, pandemic,
accident, major food security-related problem e.g., terrorist attack, intentional contamination,
critical equipment failure, or major supplier disruption. The foundations of the BCP include
human and food safety, product quality, communications, timely response, and customer service
Companies with effective crisis management or BCPs are better able to achieve the
following :
Minimise long-term impacts to the company
Maintain a positive reputation
Protect the brand
Contingency plan
Contain the crisis to the affected entity or brand, to minimise impacts on the
overall industry
Ensure actions are in accordance with established laws or regulations, and
minimise legal liability
Work quickly and efficiently with crisis responders and government
organisations
Rapidly identify and address the concerns of affected stakeholders
Provide assistance to investigating agencies without endangering the
organisation’s legitimacy
Establish working associations with media, and choose authorities that will
help to broadcast the organisation’s message
Provide effective, precise, and timely information
Control financial exposure
Food Contamination
Food supplies are vulnerable to intentional contamination by disgruntled employees or unauthorised
persons, using physical, chemical or biological methods [. A mock food recall (traceability exercise) is a
good way to demonstrate efficiency of identifying and segregating affected product. Traceability
exercises are time-based with the goal of 100% containment of affected product. This exercise is
conducted by the recall team, which will trace material that is within and outside of the facility’s control.
Any identified opportunities for improvement must be addressed quickly .
The company can initiate other proactive tasks as follows:
Have well-documented and effective recall plans, tools, and training
Perform mock food recall drills
Provide training on food security (or a food defence plan) for all employees
Perform annual mock food security drills
Perform food security assessment of the facility and the distribution network
Perform employee background checks and access control
Identify alternate manufacturing sites and a plan of action in case of major business disruptions
Generate a product disposition plan based on the specific situation and risk assessment
TORNADO/FLOOD/FIRE:
Natural disasters such as tornados, floods, and fire can cause major business
disruptions and food safety issues. Each business must take actions to reduce the
business impact due to natural disasters. Such actions include:
Establish an Emergency Action Plan (EAP) and team
Perform EAP team training and other employee, visitor, and contractor training
Work with local government agencies to ensure the EAP is complete, effective, and
meets regulations or code
Perform risk assessment. Local weather station, fire department, and insurance
companies can help with this assessment
Identify alternate manufacturing sites and a plan of action in case of major business
disruptions
PANDEMICS:
An outbreak of infectious diseases such as the coronavirus can have adverse health
effects on employees and their availability to resume normal manufacturing
operations. The company must consider pandemic planning as part of the business
contingency plan. Such planning should include:
Establish an EAP and team
Have the EAP team assess the situation and agree to an appropriate action plan
based on demand, available supplies, and available labour
Implement appropriate prevention methods and procedures to reduce risk
Have management staff review and take appropriate action regarding sick-leave
absences unique to a pandemic, including policies that define when a previously ill
person is no longer infectious and can return to work
Work closely with the local health department to monitor the situation and to
deploy appropriate control measures
Conclusion- the risks are the part of every business, as could not be eliminated but they could be minimized through
effective business strategies. As in case of the Cadbury the risks are mitigated by the company in effective manner
the above financial and non-financial give the clear picture that Cadbury adhere to situation that could tarnish the
image of the company. Moving ahead the vulnerability analysis provide brief about how company assess to its risks.
And further more the company make its contingency plan for its future growth and prospective and also provide
complete information about company’s risks and its strategies to overcome so thus company could hold strong
footing in its supply chain and in international market. on point of view company risks provide new opportunity for
the Cadbury to grow and change according to competitive market and time.
