Chocolate confectionary - 3 (NOT DONE) Flashcards
Which hostile takeover in the chocolate industry has had an impact on staff?
- The hostile takeover of Cadbury by Kraft had a negative impact on Cadbury workers.
- At the time of its takeover, Kraft said that they could keep the Somerdale factory site in the UK open and prevent the loss of jobs.
- However a week after taking ownership of Cadbury, the factory’s fate was confirmed by Kraft, which said previous plans to move production to the UK were too advanced.
How did the closure of Cadbury factories in the UK impact staff?
- The closure of the Somerdale factory in 2011 cost 1,000 jobs, leaving loyal members of staff without a job.
How did the Kraft takeover of Cadbury cause corporate culture to change and how did this impact Cadbury staff?
- The corporate culture of Kraft and Cadbury differ in some areas.
- Cadbury workers are more likely to have deep friendships, a family atmosphere and a sense of value in their work compared to Kraft workers.
- Therefore the takeover has caused the culture of the business to change, this has negatively impacted the Cadbury brand through damaging the heritage, causing staff burn out, lower morale and this can then weaken the brand.
How did investment in technology of Cadburys production lines impact staff?
- In 2015, 200 jobs were cut at Cadbury’s plant in Birmingham as part of a deal to invest £75 mil in new production lines and improved modernised equipment at the plant.
How were Kraft allowed to cut jobs from Cadbury factories during the investment in production lines in 2015?
- Owners of kraft agreed a deal with trade unions and the cuts were achieved through voluntary redundancies.
- More than 900 people worked at the factory and mondelez said cuts were necessary to make Bournville more competitive.
How were the job cuts in Cadbury factories by Kraft beneficial for staff?
- Those who chose voluntary redundancy were mainly over 55 and received good redundancy packages, and those who stayed took on extra skills and got a 2% pay increase and annual rewards.
- This is an example of how kraft has aimed to improve the morale of the workers in order to retain Cadburys heritage.
How could investment in capital intensive production benefit staff?
- Many industry observers believe that automation would provide the opportunity for workers to train in alternative disciplines such as robotic engineering, supervisory control and data acquisition engineering, data analytics among other things.
How has the consumption of chocolate and the number of jobs in the chocolate industry in the USA varied over the last 20 years?
- Americans consume about 5.5 pounds of cocoa beans a year, about the same as they did 20 years ago.
- Meanwhile, American jobs producing the candy have been on the decline.
- In 1990, about 54,000 Americans worked at facilities making chocolate candy, but now only 38,000 do.
What does the declining number of jobs in the chocolate industry show about the rise of capital intensive production?
- The decline reflects two broader trends playing out in the manufacturing industry: Technology is eliminating jobs and producers have shifted some work overseas.
- Producers from Hershey to Nestlé to Mars, are increasingly relying on computers and robotics to create products more efficiently – they’re relying less on physical labour.
How have Hershey invested in capital intensive labour?
- In 2012, Hershey’s – the single largest American producer of chocolate confections – invested $300 million in new state-of-the-art technology that can produce products 24/7.
- A highly automatized production line in one of its Pennsylvania facilities can make 70 million Hershey’s Kisses a day.
How has Hershey’s investment in capital intensive production impacted jobs in the industry?
- The company said it trained 700 employees to work with the new high-tech machinery.
- Companies such as Hershey’s still need workers to oversee the process and control the computers, but they don’t need as many people to wrap products.
Why was there conflict over Mondelez moving dairy milk production?
- Mondelez denied they moved Dairy Milk production to Poland permanently as many have speculated they have done so because of lower workers’ rights in Eastern Europe
- Mondelez’s offshoring was only temporary, the £75 million spend on production in bournville demonstrates their intent on maintaining production in the UK.
What impact did the offshoring of mondelez have on staff?
- Mondelez’s temporary relocation of production to Poland only has a short term impact on staff.
- The reinvestment into bournville factory signifies greater job security for Britains.
- However, the £75 million invested is likely to include a higher percentage of automated production, implying that staff will be negatively affected by a decline in jobs as they become replaced by CAM
How is demand for mass market chocolate varying in comparison to niche markets?
- The 12 biggest names in chocolate lost £78 million in the past year (Cadbury sales have dropped 4.2% for example).
• Hotel Chocolat - one of the most popular high quality manufacturers, saw profits increase by 100% over the past year.
How is the changing demand for artisan and mass market chocolate impacting staff?
- The skill required for Artisan chocolates is leading to companies re-shoring their production to Britain
- In order to hand craft the chocolate, extensive training would be necessary for chocolatiers
- Therefore increased significance of artisan chocolate has created more employment opportunities for skilled workmen in countries such as Britain.
