Growing the value of a business for shareholders
A Cadbury Schweppes case study

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Page 4: Background to MFV

Since the mid-eighties, Cadbury Schweppes has focused on growing its two core businesses, beverages and confectionery, through acquisition, capital investment and joint partnerships. This focus had strengthened the company's competitive position globally but had not maximised returns for its shareholders.

MFV was adopted in 1997, when executive members of the board of Cadbury Schweppes and the top 40 managers from around the world met to discuss progress over the previous decade and determine the direction for the business going into the 21st century.

A fundamental conclusion was that while the company recognised its ultimate responsibility to shareholders, it was not maximising their returns. Emphasis had been on increasing scale and there was a change from a 'scale-driven' strategy to a 'value-driven' strategy. Despite this change in focus, Cadbury Schweppes' strategic direction has remained the same. It still:

  • focuses upon core growth markets in beverages and confectionery
  • builds strong brands
  • grows by innovation in products, packaging and route to market
  • seeks value enhancing acquisitions.

But the process through which it achieves its strategy is now Managing for Value.

Cadbury Schweppes | Growing the value of a business for shareholders