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

Page 7: Conclusion

Managing for Value has realigned Cadbury Schweppes' focus with the interests of its shareholders. Though radical, rigorous and sometimes demanding change that is difficult and uncomfortable for people, it is helping to ensure that Cadbury Schweppes maximises the value to be gained from the scale developed by its management over the previous ten years.

The new business process is helping build strategic capabilities on a broader and deeper front and ensuring better investment decisions are made. It is also generating more creative thinking and a willingness to look for radical solutions. Employees have embraced the shareholder value concept and expectations of higher performance have been raised throughout the company.

In its first full year, 1998, MFV helped to address many issues and generated a good set of trading results which met rigorous targets, despite a number of turbulent economies. Double-digit growth in earnings per share - and free cashflow of £157 million - means the business is on track to double shareholder value within targeted dates.

Cadbury Schweppes' MFV programme has received support externally as well as internally. Management Today magazine said the move towards a value-based culture has created 'renewed vigour and momentum' in Cadbury Schweppes and, according to Marketing magazine, it has 'put a firecracker under the company'.

Cadbury Schweppes | Growing the value of a business for shareholders

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