Cadbury Schweppes (B): Managing for Value

Published 01 Nov 2001
Reference 4856
Topic Strategy
Region Europe
Summary

The (B) case shows how from 1997 to 1999 John Sunderland, the new CEO and a new divisional manager use Value Based Management as a vehicle for transforming respectively the company and the sugar confectionary division with strong emphasis on people and leadership practices.

Teaching objectives

The immediate purpose of the series is to allow an informed discussion on the use and implementation of so-called Value Based Management, from a broader managerial rather than the typical financial perspective. The broader purpose is to illustrate how VBM can lead to Corporate Transformation and a sharpening of Leadership Practices in large firms.

Keywords
  • Value based management
  • Corporate transformation
  • Leadership practices
  • Managing for value
  • Performance management process
  • Performance contract
  • Strategy development
  • Strategy dialogue
  • Economic profit
  • Incentive compensation