Page 1: Introduction
The owners of a company are called shareholders, because they each own parts - or shares - of an organisation, which provide them with a right to a portion of the profits. Shareholders are both private individuals and institutional investors who may buy shares through the stock market, as well as people who have a direct connection with the company such as employees and founding members.
In large companies most shareholders are removed from the day to day decision-making process and their interests are represented and protected by a board of directors who are paid to manage the company on their behalf. The board has a legal, or statutory, responsibility to ensure they run the business effectively and create long-term value. They must also ensure they represent the interests of all shareholders.
This case study focuses on Cadbury Schweppes, a major global company which manufactures, markets and distributes branded beverage and confectionery products in over 200 countries. To meet the need to create long-term value for its shareholders, Cadbury Schweppes has introduced a business process called Managing for Value, which now underpins every business decision made and unites every business unit within the group behind this objective.