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Strategy, Structure And Culture: Cadbury, Divisionalization And Merger In The 1960s

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  • Michael Rowlinson

Abstract

This case study re‐examines the history of Cadbury, the British‐based chocolate confectionery manufacturer, to give an insight into the relationship between strategies of diversification, adoption of a multidivisional structure, and culture in relation to labour management. During the 1960s Cadbury undertook diversification, divisionalization and merger, all of which were affected by, and had an effect upon the Cadbury culture developed at the Bournville factory in Birmingham, England. Contemporaneous documentary evidence, especially the Cadbury board minutes, are used to question the prevalent view, mostly based on retrospective interviews with managers, that cultural change was the outcome of intended management strategies. Instead it is argued that the dilution of the Cadbury culture was the unintended consequence of diversification and divisionalization rather than a conscious abandonment on the part of a new generation of Cadbury directors or the influence of Schweppes after the merger with Cadbury.

Suggested Citation

  • Michael Rowlinson, 1995. "Strategy, Structure And Culture: Cadbury, Divisionalization And Merger In The 1960s," Journal of Management Studies, Wiley Blackwell, vol. 32(2), pages 121-140, March.
  • Handle: RePEc:bla:jomstd:v:32:y:1995:i:2:p:121-140
    DOI: 10.1111/j.1467-6486.1995.tb00337.x
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    Cited by:

    1. Helen Callaghan, 2015. "Something left to lose? Network preservation as a motive for protectionist responses to foreign takeovers," Review of International Political Economy, Taylor & Francis Journals, vol. 22(2), pages 391-418, April.
    2. Nicholas Burton & Matthew Sinnicks, 2022. "Quaker Business Ethics as MacIntyrean Tradition," Journal of Business Ethics, Springer, vol. 176(3), pages 507-518, March.
    3. April L. Wright & Gemma Irving & Asma Zafar & Trish Reay, 2023. "The Role of Space and Place in Organizational and Institutional Change: A Systematic Review of the Literature," Journal of Management Studies, Wiley Blackwell, vol. 60(4), pages 991-1026, June.
    4. Eero Vaara & Juha-Antti Lamberg, 2016. "Taking historical embeddedness seriously : Three historical approaches to advance strategy process and practice research," Post-Print hal-02276732, HAL.
    5. Froese, Fabian Jintae & Pak, Yong Suhk & Chong, Li Choy, 2008. "Managing the human side of cross-border acquisitions in South Korea," Journal of World Business, Elsevier, vol. 43(1), pages 97-108, January.

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