Alton Towers Coursework

Topics: Stock Market

Alton Towers is a theme park and resort located in Staffordshire. It attracts around 2.8 million visitors per year. It is the 11th most visited theme park in Europe. Alton Towers opened in 1980 as a theme park and in the 1990’s it was purchased by ‘The Tussauds Group’. They added 3 rides to the park on opening, ‘The Corkscrew’, ‘Pirate Ship’ and ‘The Alpine Bob Sled Ride’. Over the years more rides were added and the theme park was heavily invested in. Alton Towers also have 3 hotels, a golf course, a conference centre, a spa and a water park.

In 2005 Dubai International Capital bought Alton Towers when it purchased Tussauds for �800 million. In March 2007 The Tussauds Group was bought by Merlin Entertainments (MEG) for over �1 billion from Dubai International Capital. In July 2007 the theme park and resort was bought by Nick Leslau and his investment firm Prestbury who now lease the park back to Merlin Entertainments.

Alton Towers is know for its breath taking rides, and has 35 in total.

The rides range from children’s froghoppers to extreme roller coasters. Alton Towers profits come mainly from families visiting the theme park and foreigners experiencing it when they’re on holiday. It is said to be the most popular and thrilling theme park in the UK. Alton Towers is in the tertiary sector, meaning they sell products e.g. food, sweets, souvenirs but also provide a service, which people pay for, e.g. the theme park. Alton Towers has a lot of competition, as all theme parks are often getting new rides to be better than other theme parks.

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I think Alton Towers competes well because it caters for all ages and provides things other theme parks don’t for example a hotel and spa. Alton Towers has been voted Britain’s biggest and best theme park, and hold the record for the most visited theme park in England. It is also the second biggest theme park in the world.

Good and Services Alton Towers Provide:

* The theme park itself (rides)

* Food Outlets

* Water parks

* Accommodation (3 hotels)

* Well known Food Outlets (KFC, Burger King, Pizza Hut)

Alton Towers also has customer services, where a help desk help customers in the case of being lost, loosing friends or loosing children. They also provide storage for visitors to put bags and belongings so they don’t have to carry them round.

Alton Towers also provide things to do within the hotel, for example Spas and Relaxation rooms. This is so you can have a rest from being at the theme park all day; alternatively for people who are unable to go on rides they offer a miniature golf course.

At the theme park they offer a variety of rides suited for all ages, there’s thrills for teenagers and adults, fun frights for the whole family and magic, young fun for kids.

Some of Alton Towers main attractions are their unique thrill rides:

* Rita Queen of Speed

* Air

* Nemesis

* Ripsaw

Alton Towers also provide goods to the public; these are things like Souvenirs (key rings, pens, pencils, clothing), food and drink. Alton Towers also have cameras on the rides, which take a picture when you get to a certain thrilling part of the ride, you can then buy the pictures or have them transferred onto a mug or into a key ring.

They also have games stalls and arcades, which just brings in more money for Alton Towers but is also fun and attracts an audience whilst they are waiting or having a break.


There are many ways Alton Towers advertise their theme park and services, these are things like:

* Adverts (TV, radio, cinema)

* Promotions (direct to houses, via Merlin Entertainments Group)

* Leaflets

Alton Towers use advertising a lot, this is to attract new customers but also older customers. Alton Towers are always putting on special offers and events to celebrate special occasions. They also offer different tickets like Family Ticket, Annual Pass and Parent Share pass (where one parent can use a ticket, and the other can use it after).

They also offer parents buggy hire, a safety child scheme and height wristbands, all to ensure the safety of visitors are the park.

Alton Towers offer discounts for large groups like foreign tourists and school trips, this is because they spend a lot of money on other goods Alton Towers offer. Alton Towers main ticket prices are �35 for adults, �17 for seniors and �26 for children aged 4-11.

Aims and Objectives

A mission statement is a short paragraph to show and remind staff what a business hopes and wants to achieve. It also shows what the business is about.

Alton Towers mission statement is: – ‘To dazzle our guests with the most captivating city centre attractions in the world and the most diverse and exciting portfolio of theme parks in Europe.’

An aim is a goal that a business would like to achieve. It usually involves something to do with making a profit, providing goods and services, surviving and expanding, maximising sales, improving the quality of products and services, making customers happy.

The aims Alton Towers have are:

* To maximise sales and increase profit.

This means Alton Towers do what they can to sell as many tickets as possible to the theme park to get higher sales and increase their profit. They would do this by advertising special offers and events on things like the radio, television, cinema screens etc. They would also source low costing supplies. They do all these things so they can survive, pay their employees and make a profit.

* To ensure existing customer base will remain loyal.

By this Alton Towers want to ensure older customers will return to the park. Alton Towers use questionnaires to ensure nothing is wrong with the park and to ensure the customers had a good day. On the questionnaires Alton Towers have put options for customers to write down email addresses, therefore they can contact them about special events and offers on at Alton Towers which will make customers return.

* To attract new customers.

This means Alton Towers aim to attract new customers to the park and then have them return. To do this Alton Towers use advertisements such as local newspapers, billboards, cinema adverts, television. By doing this more people will notice Alton Towers and the opportunity for a good day out, therefore this attracts customers to the theme park and resort. When advertising Alton Towers offer something for every age to ensure the family there is something for them all to enjoy.

* To ensure goods and services deliver ‘Magic Moments’.

This means Alton Towers aim to have their staff make customers days at the theme park and good and as magical as they can. Alton Towers would meet this aim by employing friendly, willing, imaginative people. Alton Towers also aim to make their rides the best they can be, and everything else sold within the park should be of a high standard.

* To expand.

This means Alton Towers want to become more known and expand the park to attract the customers. They could expand by increasing goods and services, for example making a new ride, opening a new hotel etc. They could also sell a bigger variety of goods to the park. They could make more shops to sell their goods but most of all increase the size of the park and offer even more rides to different kinds of people.

* To deliver Alton Towers vision all employees must perform our key values:

1. Be able to make difficult decisions.

2. To make sure that the customers are the heart and soul of the company.

3. That staff feel they can make suggestions on how they can make the business better.

4. Staff should always have a positive attitude and energy.

In this Alton Towers are saying that staff should be able to think about decisions and make the right one, but make a quick decision if put on the spot. The second key value is saying staff must make sure they are always putting customers needs first, for example they must put customers health and safety before anyone else’s. The third key value is making sure that staff feel comfortable about the business and feel they have their own say on how it could be improved. Finally the fourth key value is making sure staff are always polite and bursting with energy, making their customers feel welcome and happy.


Businesses use SMART objectives for themselves or for their products or services they are launching, they do it to show what they hope to achieve. They also do it to motivate employees and the business to reach a goal.

Specific – This is where you have to make an objective and be very precise about what you are going to achieve.

Measurable – This means that they will be able to add up their sales and total their sale by the date.

Agreed – The objective has to be seen and agreed to by a board of directors.

Realistic – This means is the objective achievable in the time given and do they have the resources to achieve it.

Timed – This is where the business set a date for the objective to be completed by.

On our visit to Alton Towers, they would not tell us their SMART objective, this is because they have high competition and they do not want competitors to find out anything they are planning or hoping to achieve.


Alton Towers are owned by Merlin Entertainment Group (MEG), who own many other tourist attractions, for example London Eye, Lego Land, Thorpe Park. MEG are a private limited company, which means that members of the public are unable to buy a share of the company unless asked to. A private limited company (LTD) is normally a family run business. Alton Towers also have the protection of limited liability, which means if the company fails they can only loose the money they have put into the business and not their personal possessions.

Advantages for Alton Towers:

* Owners have more say in what happens to the business and how it is run; they can have their say in important decisions.

* They cannot be taken over suddenly.

* Because of limited liability they will not loose their personal possessions.

* They can be promoted as part of a group, encouraging people to visit different parts of MEG and buy shares in it.

* Visitors to other things MEG own for example Lego Land, may have their details (with permission) passed to Alton Towers who can send direct marketing material to potential visitors.

* It is easier for Alton Towers to raise capital to be able to afford new rides & events at the park, because of all the money available as part of MEG.

* The company name ‘Alton Towers’ is protected by law. This means that it is copy righted and no other business can use the name unless with permission by law and the company itself.

* Because MEG are a large entertainment group they know what the public want, where as when they were owned by Dubai International Capital (DIC), they did not know what the public wanted.

* When Alton Towers want to do something or have plans they have the money to do so straight away because MEG is a big business.

Disadvantages for Alton Towers:

* It is not easier for them to raise capital to fund new rides and events.

* They may have a lower profile because they aren’t on the stock exchange.

* People are less likely to buy shares in MEG because Alton Towers may be less well known.

* Alton Towers have to pay huge costs because of the amount of employees they have to pay and their electricity, gas and water bills.

* Affairs results Alton Towers have must be published publicly with MEG.


Alton Towers first opened as a theme park in 1980, since then many changes have been made. Here I will include a timeline of changes within Alton Towers:


* Alton Towers opens to the public as a theme park where it added three new rides – Corkscrew, Alpine Bobsled, and Cine 2000.


* Around the Worlds in 80 days and Fantastic Fountains added. Log Flume added, opened as the longest Log Flume in the world.


* Haunted walk through attraction Doom and Sons added. Mini Apple roller coaster added.


* Black Hole added.


* Octopus, Mississippi show boat, 1001 Nights, Turbo Star and Magic Carpet added to the theme park.


* Grand Entrance Added.

* Magic Carpet closed.


* 4 Man Bob Roller coaster, Towers Street, Grand Canyon Rapids Ride and spider were added. Kiddies Kingdom opened which included over 14 attractions.

* Alpine Bob and Cable Cars closed.


* Mini Dragon renamed to Dragon.

* Open air, Monorail, Skyride, Teacup and Swan Boat added to the park.


* Ferris wheel closed.

* Alton Beast, Alton Mouse, 3D cinema added.

* Black Hole renamed to Black Hole II, Junior Apple renamed to Mini Apple.


* Black Hole II renamed to New Black Hole.

* Britannia Building Society Farm added.


* Park purchased by The Tussauds Group.

* Gravintron and Thunderloop added.

* Turbo Star closed.


* Tri Star added.

* Spider, Alton Mouse, 4 Man Bob and Octopus closed.


* Thunder Valley, Gloomy Wood, Kantanga Canyon, Haunted House and Runaway Minetrain added.

* Alton Beast relocated to Thundervalley and renamed The New Beast.

* Grand Canyon Rapids renamed to Congo River Rapids.

* Dragon relocated to Thunder Valley and renamed Beastie.

* Britannia Building Society Farm renamed to Society Farm.

* Gravitron, Doom and Sons, Fantastic Fountains, Cine 2000 and Tri Star closed.


* Talbot Street renamed to Land of Make Believe, and new attractions added.

* Vintage Car Ride relocated to Land of Make Believe.

* Astro Dancer added to Fantasy Worlds.


* Peter Rabbit on Ice show added.

* Nemesis added – Europe’s first inverted roller coaster.

* Around the Worlds in 80 Days becomes Toyland Tours.

* Thunder Valley renamed to Forbidden Valley.

* Junior Flyer added to Festival Park.

* Safeway Farm renamed to Old MacDonald’s Farm.

* 1001 Nights, Model Railway and Mississippi Show Boat closed.


* Energizer added to Festival Park.

* Miniature Golf closed.


* Kiddies Kingdom renamed to Adventure Land.

* Storybook Land added.

* Thunderlooper and Railway closed.

* Alton towers Hotel Opens.


* Land of Make Believe renamed to Cred Street.

* Beastie relocated to Adventure Land.

* Astro Dancer relocated to Festival Park.

* Nickelodeon Outta Control added to Cred Street.

* Mini Apple Roller Coaster and New Beast closed.

* Ripsaw added.


* Nickelodeon Outta Control closed.

* Fantasy World renamed to X sector.

* Enterprise and Energizer added to X sector.

* Oblivion added – Worlds first vertical drop roller coaster.


* Festival Park Renamed to Ugg Land.

* Soakasaurus added to Ugg Land.

* Astro Dancer renamed to Dino Dancer.

* Wave Swinger renamed to Ugg Swinger.

* Junior Flyer renamed to Ugg Bugs.


* Hex added to the park.


* Submission added to X-sector.

* Energizer relocated to Ugg Land and renamed Bone Shaker.


* Dino Dancer relocated to Forbidden Valley and renamed Dynamo.

* Air added – Europe’s first flying coaster.


* Duel added (re-themed Haunted House).

* Ribena Berry Bush Bash added.

* Calypso Springs Hotel and Splash Landings Water Park Added.

* Dynamo, Bone Shaker and Swan Boats closed.


* Spinball Whizzer added (spinning coaster).

* Flume added, re-themed Log Flume.

* Gallopers Carousel relocated from Adventure Land.

* Cred Street and Vintage Car Ride closed for the season.

* Splash Kart Challenge and Bungee Run added.


* Black Hole Closed.

Timeline information taken from

From the timeline you can tell a huge amount of change has happened in the last 30 years. Some of the points in the timeline are in bold, this is because I think they are major changes that happened to the park. For example, the first major change I think happened was kids rides being added to the park, Alton towers was originally for thrill seekers. I know this because of the first ride added to Alton Towers, Corkscrew, was a roller coaster. I also made bold ‘Peter Rabbit on Ice show’ this is because it shows Alton Towers is making more rides for younger people and families. Nemesis being added to the park is a major change to the park because this would have brought Alton Towers more income, this is because it was Europe’s first inverted roller coaster and would therefore attract more customers, also other roller coaster’s being added for example Oblivion and Air would also attract new customers because they are new to Europe and the world, making people want to try them out. In 1996 Alton Towers opened their first hotel, I think this is big for them because it means people can come to the park from places further away and stay over for the night, this means Alton Towers would become more known. Opening their other hotel would have been big for Alton Towers too because it includes the water park, and therefore the park may bring in a wider variety of customers. Alton Towers are constantly adding new rides and attractions to bring in more customers. For example they are currently planning and building a new children’s land, which will bring families to the park. Information found from

Alton Towers main competitors are Drayton Manor, Thorpe Park and other theme parks in the UK. This is because they offer customers the same goods and services for similar prices. All of these theme parks have thrill rides, water rides, kids rides etc, building up competition for Alton Towers.

Drayton Manor is Alton Towers biggest rival because of how close they are to each other, and how similar the goods and services they offer are. For example Alton Towers have a pirate ship ride called ‘The Blade’ and Drayton Manor have one called ‘The Bounty’, they are very similar. I think Alton Towers is slightly ahead of Drayton Manor, this is because of the three hotels it owns and runs.

Other competition Alton Towers have is indirect competition, things people can spend their leisure time and money on instead of Alton Towers. These are things like The Sea Life Centre, cinemas, shopping, going for a meal. People do these things more often than spending time at Alton Towers because it is cheaper and easier to do.

Alton Towers also have competition globally, for example ‘Disney’ is known all over the world and has its main attraction Disney World located in Florida, and Disneyland Paris. This is a disadvantage to Alton Towers because they only have one theme park. Also Disney sell products like toys, clothing all over the world, this makes them better known.

Alton Towers main customers are families, this is because Alton Towers provide fun and rides for all ages. Other main customers they have are teenagers who spend their money on Alton Towers at weekends, occasions and half terms to go and have fun with their mates.

Other areas money comes from are Businesses, Alton Towers have conference halls in which businesses hire for meetings, speeches, lectures etc. They do this because of the large amount of land they have available. Alton Towers brings in revenue from families, they come from all over the country because they are able to stay at Alton Towers hotel. Schools visit Alton Towers on educational trips or as a treat or and award, Alton Towers benefit from this because large groups come from schools and pay.

External and Internal factors of Alton Towers

At Alton Towers they have external factors, which is what pushes customers away from visiting. These factors are unable to be solved. These can be things like:

Technology – New technology could out do Alton Towers, which Alton Towers don’t have or can’t afford, and therefore customers don’t visit because of the lack of technology.

Weather Conditions – If hurricanes, snow, or terrible rain was to occur, the park would be unable to open and customers wouldn’t turn up. It could also cause damage to the park.

Terrorist Attacks – If these occurred at Alton Towers customers would not want to visit there because of the risk.

Internal factors are things that push customers away but can be solved if Alton Towers do their best to work on them.

Production Problems – This is when Alton Towers are planning or making a new ride and the resources to make it are not right or aren’t delivered in time, this delays the building of the ride, this affects Alton Towers because say they are building a ride over January, February and march when they are not open and are due to open with a new ride, if the ride is delayed and not finished they would either not attract as many customers or not be able to open at all and loose out on important sales and profit.

Over ambitious aims, objectives and targets – These could lead to Alton Towers not meeting their aims, objectives or targets, for example their profit target they could lower because they are unlikely to meet it. Alternatively they could do things like employ more people, offer more services, expand the park etc which would help bring in profits and expand the park.

Problems with suppliers – These are things like ordered stock e.g. food not turning up on time, or being wrongly delivered. This affects Alton Towers because customers may complain and they cannot offer their goods, to overcome this they could be more cautious and make sure they are ordering from reliable suppliers.


Alton Towers is located in Staffordshire, in-between Stoke on Trent,

Derby and Uttoxeter.

Factors Influencing Location

Availability of skills – This means the amount of people in a certain area with appropriate skills to work at a particulate job.

Many jobs are available at Alton Towers, for example managing a department, working on a stall, security guards, and ride operator. What the employee becomes depends on their age experience and qualifications.

Alton is a small town and isn’t highly populated but it is situated next to motorways because it is only an hours drive from Birmingham, England’s second biggest city. Therefore it isn’t hard for Alton Towers to find employees. Although some skills are required for different jobs. For example engineering skills are required if you are a ride fixer or operator. But other jobs with fewer skills needed are available, for example selling food on a stall. Other jobs at Alton Towers like First Aider require lots of skills and qualifications, this is to ensure the Health and Safety of all customers. I do not think availability of skills was a major influence to the location of Alton Towers but I do think it is useful that the park is near Birmingham and Motorways.

Cost of labour – Cost of labour is the amount an employee gets paid. The cost of labour varies in different places, depending on the cost of living. Employees are protected by the national minimum wage, this is a wage which states the minimum a company can play an employee.

The minimum wage rates are:

Adults (22 or over) – �5.73 per hour

Workers aged 18-21 – �4.77 per hour

Workers aged 16-17 – �3.53 per hour

Apprentices under the age of 19 are not entitled to the national minimum wage for the first 12 months.

Alton Towers have to pay the minimum wage at least, however they may offer higher wages to certain jobs which require certain skills, they may higher or lower wages depending on the rate their competition pays. Alton towers might offer higher wages to people to attract more staff to the park.

In Alton there are not many other large businesses, therefore I think that the cost of labour did have an influence on the location, because there will be people in Alton with the skills to work at Alton Towers, and people around Birmingham who would be attracted to the jobs.

Cost of premises – I do not think this was a factor influencing location, because I think the buyer was more interested in the amount of land and how they could use it. To overcome the large cost of the land/premises Corkscrew was built, to bring in profits and to help expand the theme park.

Local government charges – I do not think this was a factor influencing this location because wherever you go you will get government charges. Also the charges were only a small fraction of their sales revenue, therefore it would not affect the business hugely.

Financial Help – Financial help is when the council offers grants to businesses that choose to locate their business in a run down area, they will offer them financial help to businesses who will help generate employment. Although Alton Towers did not receive funding I don’t think they needed it because they are located in an area of high unemployment.

Transport Links – I think these were a major factor for Alton Towers and I think they looked into it closely before buying the land to build on. This is because good transport links are essential for Alton Towers to receive supplies, attract customers to the park and for staff as well. Alton Towers bought the land because it is close to national motorway networks. Also Alton Towers has a number of entrances for staff/suppliers/customers so no congestion is caused. Although some of the roads near Alton Towers are very narrow they are close to Birmingham City Centre.

Closeness to competitors – Alton Towers has many competitors, its main competitor Drayton Manor is located in Tamworth, about an hour away from Alton Towers, it is not as big and doesn’t offer as many services as Alton Towers, therefore it wasn’t a major factor influencing location, although it is successful in what it does and offers huge competition to Alton Towers.

History and Tradition – I do not think this is a factor influencing location for Alton Towers because before purchasing the land they were thinking more about the size of the land and what they could do with it rather than where it was, although Alton Towers is named after the place and will always be there.

A map to show an overview of the roads surrounding Alton Towers and easy routes to access the park.

Cadbury Coursework.


Cadburys is a company that produces chocolate. It was founded in 1824 when Mr John Cadbury opened a coffee shop in Birmingham, which served hot chocolate; this was a drink only the rich drank. Mr Cadburys business took off; therefore he decided to start manufacturing drinking chocolate. He bought a factory on Bridge Street and went into partnership with his brother. Because the business got off to such a good start the government reduced the taxes of importing raw materials for the hot chocolate so less fortunate families could afford it too. The two brothers opened an office in London in 1854 where they received the Royal Warrant as manufacturers of chocolate and cocoa. In 1878 John Cadburys sons bought the Bournbrook estate, which covered loads of lands. The Bournebrook estate was renamed to Bournville and the Bourneville factory opened in 1879. The factory still stands here today and as well as producing chocolate, it is used as an educational trip that shows how chocolate is made and the history of Cadburys. Since then Cadburys has become known all over the world, and mass amounts of Cadbury chocolate is produced globally. Cadburys headquarters now stand in London. Cadburys has become the world’s second largest confectionary manufacturer. Cadburys is in the secondary industry sector because their ingredients are bought to make the chocolate and it is then manufactured into the finished product to sell. Cadbury World (located in Bourneville) is in the tertiary sector because it only sells the chocolate and provides a service to the public.

Cadburys are marketing orientated, meaning they use market research to find out how they can make more money. For example, polls were done on Myspace with people saying they want Wispa back; therefore they looked into it and brought back Wispa bars.

Goods and Services

Cadburys is a company known globally and does very well. It sells goods, mainly chocolate and sweets.

Some of the main chocolate products Cadbury sells are:

* Dairy Milk Range

* Wispa

* Bourneville

* Chomp

* Fudge

* Cadburys Hot Chocolate

* Crunchie

As well as chocolate, Cadbury also own Trident Chewing gum, The National Confectionary Group, Green and Blacks and Halls. Although they own these, their chocolate range is the most well known.

Cadburys service is Cadbury World, which is situated in Bourneville, one of Cadburys first factories. It is a popular tourist attraction and is there to tell people about the history of Cadbury and how their chocolate is made; it also has a kid’s ride and a big shop, which sells all their products for a discount.


Mars and Nestle are Cadburys main competitors, they also provide a variety to their customers, Mars also own Wrigleys, Pedigree, Uncle Bens, Dolmio and Whiskas. Mars like Cadbury are known for their chocolate, popular chocolate they produce is Mars Bars, Snickers, Twix’s and Galaxy.

Nestle also produce chocolate along with other things for example cereal and coffee. Nestle advertise and use their logo on all their products, where as Cadbury and Mars don’t, for example although Cadbury own trident they don’t use the Cadburys logo on the packaging. Some chocolate brands Nestle produce are Aero, Kit Kat and Yorkie.

Aims and Objectives

Cadburys don’t have a mission statement but have a vision, which is similar and states what the company’s goals are.

Cadburys vision: – ‘To be the biggest and best chocolate confectionary company!’

This means Cadbury hope to be bigger and better than any other chocolate manufacturer. They want to be well known across the world, and want the best quality chocolate in the world. As I said, they are they second largest confectionary company, therefore they are not meeting their vision.

An aim is a goal that a business would like to achieve. It usually involves something to do with making a profit, providing goods and services, surviving and expanding, maximising sales, improving the quality of products and services, making customers happy.

Aims Cadburys have are:

* To deliver superior shareholder performance.

This aim Cadburys have means they want to show good attitude, ability and skills in making the business successful. In this they are also aiming for the people who own shares in the business to know about the business and how it runs. All shareholders get part of the profits, the more they get the more likely they will be to keep being invested in Cadburys, and invest more money into it.

* Profitability and significantly increase global confectionary shares.

This means Cadbury want to increase the amount of people who own parts of Cadbury globally and to make more profit as a business.

* To ensure our capabilities are the best in class.

In this statement Cadburys are talking about their commitments to reduce packaging and carbon emissions. They are stating they want to be as eco friendly as possible. They would do this by recycling as much as possible, therefore cutting down on waste packaging. Also by choosing more energy efficient ways of transport.

* Reinforce our reputation with society and employees.

Cadburys are saying that they want to be fair to their employees in all countries, to do this they will give more than the fair trade wage to poorer countries who prepare raw materials. Cadburys are doing things like this to show the world they are fair and to make a good impression and give them a good reputation.

* To be supportive of our consumers, customers and colleagues and to remain passionate about success.

In this Cadburys are saying they want to be supportive of people who work for them and buy off them. They are also saying they want the business a whole to always be thinking about success and where working hard will get the business.


‘To deliver superior shareowner performance’, this mean that they want to pay shareholders dividends each year.

‘Ensure our capabilities are the best, particularly in the area of environment, maybe reducing the packaging, cut in net, carbon emissions.’ this means Cadbury want to be environmentally friendly by doing everything they can to reduce packaging and recycling materials.


Cadburys is a Public Limited Company (PLC), it is therefore able for any member of the public to buy a part of the business (share) and become a shareholder. The shares can be bought from a stock market or stock exchange. If Cadburys failed and went into debt, the shareholders would only loose money they put into the business, not any of their personal possession, this protection Cadburys have is called limited liability.

The biggest share someone owns of Cadburys is 3%, although seems a small percentage he receives millions of pounds a year for owning that small 3%. The Cadbury family own 2% of the business, but don’t have a lot of say on the way the business is now run because they are not on the board of Directors.

If a company wants to become a PLC then they must submit two documents; a Memorandum of association and Articles of association. When these are submitted the company can then go ahead and start trading.

Advantages for Cadburys:

* Shareholders have limited liability and can therefore only loose money they have invested into the business.

* Cheaper borrowing and bulk purchasing.

* Cadburys company name is protected.

* The company can continue despite the death, resignation or bankruptcy of management and members.

* New shareholders and investors can be easily assimilated.

* Goods can be produced at a lower unit cost.

* The company can be globally successful.

* The company may have large discounts when buying raw materials in bulk., for example milk and sugar (UK) and cocoa beans (Ghana).

* Share Capital helps expand the business, and could help them be a global success.

* They can raise finance easily and would not find it hard to pay back a loan.

Disadvantages for Cadburys:

* Shareholders expect a dividend in return for investing in the business.

* Original owners of the company have less control over what happens to the business.

* If dividends go down shareholders may want to sell their shares.

* Decisions can be slow due to the size of the business.

Organizational Structure


Over the years Cadbury has changed a large amount, it has gone from being a small shop selling drinking chocolate to being know globally selling chocolate, mint and chewing gum products.

Cadbury first started in 1824 when John Cadbury first opened his shop in Birmingham. By 1842 he was selling 16 sorts of drinking chocolate and 11 varieties of cocoa. A major change to the business was in 1847 when John Cadburys brother Benjamin joined the business, making it become a family business. In 1854 Cadbury received their first Royal Warrant. By 1878 Cadburys had outgrown their bridge street factory in Birmingham, they then went on to buy Bourneville factory. In 1905 Cadbury introduced Cadbury Dairy Milk bars, this was a major part in their business because it became a real hit and is still sold today.

During the 1900’s Cadburys growth accelerated with the establishment of manufacturing operations in Australia, New Zealand, Ireland and South Africa. Cadbury then became the clear market leader in the 1920’s. This was a very proud time for Cadbury, and they stayed as the market leaders for years, but now mars (master foods) have taken over, making Cadbury work harder than ever to get back on top.

In 1969 Cadbury merged with Schweppes Ltd and became Cadbury Schweppes PLC, it was then listed on the London stock exchange. In 1989 Cadbury Schweppes was listed on the Melbourne Stock Exchange in Australia. I think this was an important change for Cadburys because they were gradually becoming well known globally.

In March 2007 it was revealed that Cadbury Schweppes were planning to split its business into to separate things: one focusing on its main chocolate and confectionary and the other on the drinks. The demerger took place in May of 2008, with the drinks business becoming Dr. Pepper Snapple Group.

(Information from history taken from Wikipedia)

Throughout all of these changes Cadbury still kept their Bourneville Factory in Birmingham. It was made into and educational trip for families and schools to show how Cadburys grew and developed. Cadbury world produces chocolate where visitors can see how it is made; Cadbury World includes a chocolate factory, a ride, a playground, Cadbury shop, and a playground.

When Cadbury chocolate was first being produced it was mainly solid bars of chocolate, over the years this has developed and Cadbury now cater for all members of the family and different occasions. For example in 1915 Milk Tray was first introduced, this is a box of chocolate often bought for special occasions. Gradually Cadburys widened their range of products, for example Mini Freddo bars came out, these were suitable for children to put in their lunch boxes. At Easter Cadburys bring out a range of different Easter eggs, small, large, and huge ones. These are suitable for children and adults.

Cadburys main competitors are Mars (master foods), Nestle, Lindt, Thornton, Wrigley.

Mars and Nestle are head on competition because they both make and sell similar products. For example Boxes of Roses and Boxes of Heroes compete, Kit Kat goes against Kit Kat, Nestles ‘crunch’ is in competition with Cadburys Crunchie. Nestle and Mars also make chocolate for occasions, for example they make chocolate selection boxes.

Lindt and Thorntons compete with the chocolate Cadburys make on special occasions, for example Easter eggs, boxes of chocolate. Thorntons specialize in making boxes of chocolate and are popular with Easter eggs.

Wrigley’s are also competitors of Cadburys, because they make a well known brand of chewing gum, which competes with Cadburys chewing gum brand, Trident.

I think Nestle do better than Cadbury in some areas because they sell other products as well as chocolate, like cereal, where as Cadbury only sell chocolate and chewing gum.

Other competition Cadburys have is indirect competition with other manufacturers who make and produce snacks; these are companies who make sweets, biscuits, crisps etc. Cadbury World has indirect competition with activities people can do in their leisure time, for example swimming, cinema, and bowling. This is competition because it is things people can spend their money on instead of chocolate and visiting Cadbury World.

I think Cadbury does very well in the UK because it has no major competition that are based around there, although Mars, Nestle, Lindt products etc are sold in shops and supermarkets there are no other chocolate factories like Cadbury that can be visited.

People all over the world buy the products Cadbury make. Mainly children and people with sweet tooth’s eat the chocolate bars but on special occasion most people have some Cadburys chocolate.

The main people who buy Cadburys products are supermarkets, Cadbury benefit from this because they buy the stock in bulk to sell to the general public. Other revenue comes in from vending machines, cafes etc.

The main reason people visit Cadbury World is to find out about the history of Cadbury. Their main customers would be schools, because they go on an educational trip or as an award from school, this is interesting for students because they all enjoy the free chocolate given and the opportunities Cadbury World offer them. Families visit Cadbury World because it isn’t too expensive and it keeps kids occupied. Foreigners visit Cadbury World to learn about the process of the production, they also go because Cadbury chocolate may not be as widely available in their country; therefore they would visit the Cadbury shop.

External and Internal factors at Cadbury

Internal Factors:

Production Problems – At Cadburys there could be a problem in the production line, this could result in less products made.

External Factors:

Competition – Cadburys have very high competition (Mars ; Nestle) who are constantly bringing out new products for the public, at times this could be hard for Cadbury to keep up with.

Credit Crunch – Because of the credit crunch people may cut back on spending days out, therefore Cadbury World will not bring in as much revenue. People may also decide not to buy as much chocolate which would result in a loss of money for Cadburys.

Factors Influencing Location

Availability of skills – Birmingham is a high area of unemployment, therefore Cadburys have no problem employing people to work there, around Birmingham people do many apprenticeships, college courses and university courses to do with machinery, cookery etc, therefore the availability of skills for Cadbury Worlds was not an important factor.

Cost of labour – Cost of labour is the amount an employee gets paid. The cost of labour varies in different places, depending on the cost of living. Employees are protected by the national minimum wage; this is a wage which states the minimum a company can play an employee.

The minimum wage rates are:

Adults (22 or over) – �5.73 per hour

Workers aged 18-21 – �4.77 per hour

Workers aged 16-17 – �3.53 per hour

Apprentices under the age of 19 are not entitled to the national minimum wage for the first 12 months.

Cadbury World have to pay their employees at least the minimum wage, although for people with more advanced skills and higher qualifications they may offer a higher wage to attract them to the job. Around Cadbury there are not other chocolate factories that require skills required to make and decorate certain chocolates, therefore Cadbury would not have a problem employing people with the minimum wage.

Cost of Premises – This was not an important factor for Cadbury World because they were looking to move into a bigger factory so they could produce more chocolate and become more well know. Therefore spending money on a bigger factory to help them succeed and make profits was not a major concern.

Local Government Charges – These were not an important factor to Cadbury because it is only a small fraction of their sales revenue, also government charges are mostly the same everywhere.

Financial Help – Cadburys do not need and have never had help from the government, this is because Birmingham is a high area of unemployment. This also means that the Cadbury family used all their own funds to buy the factory.

Transport Links – These days Cadbury use Lorries, planes etc to send and receive their product/raw materials, although when Cadburys first moved to Bourneville they used the canals because they are situated very close to the canals and Birmingham has one of the best canal systems. Cadburys now use other transport links for example Lorries, because they are situated in Birmingham near motorways.

History and Tradition – The Cadbury Family were very fair, and thought everyone should be treated equally. They therefore used their money to build schools, houses etc for the Bournville village. Another tradition they’ll always have is being located in Bourneville, this is where Cadburys really set off. Therefore they will always have the factory there because it was their first major plant.

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