Cadbury Schweppes has as its main objective the delivery of superior shareholder value. To achieve this objective, the company stresses the need for all employees to understand the different goals of the company so that they can tailor their efforts towards achieving these goals which will in turn lead the company toward its overall objective of delivering superior shareholder performance.
This paper aims at looking at critically evaluating the nature and presence of the human resource strategy that appears to be in operation at Cadbury Schweppes in the light of the wider business strategy. The paper also presents a discussion of how the Human Resource Function can position itself toward delivering the people strategy based on evidence gathered from the case study as well as the understanding of the development of Human resource functions. Having said this, the paper will begin by critically evaluating the nature and presence of the human resource strategy in section 1.1 below and later a discussion how the Human resource function can position itself will be presented in section 1.2.
The human resource strategy that appears to be in operation at Cadbury Schweppes seems to be in conflict with the company's business strategy. ...
Its number one goal for 2004-07 is not excellence, innovation or developing its people. It is simply to deliver superior shareholder performance". The latter quotation clearly shows that Cadbury Schweppes does not care about developing its people, all it cares about is delivering superior shareholder value.
According to Lengnick-Hall and Lengnick-Hall (1988: p. 451) citing Porter (1985) and Huselid (1995: p. 636) citing Begin (1991); Butler, Feris, & Napier (1991); Cappelli & Singh (1992); Jackson and Schuler (1995); Porter (1985); Schuler (1992); Wright and McMahan (1992), human resource management can help a firm obtain sustained competitive advantage by lowering costs, increasing sources of products and service differentiation, or by both. Lengnick-Hall and Lengnick-Hall (1988: p. 451) define competitive advantage as "those capabilities, resources, relationships, and decisions that permit a firm to capitalise on opportunities and avoid threats within its industry". Lengnick-Hall and Lengnick-Hall (1988: p. 451) further states that in order for a firm to achieve competitive advantage through human resources, the activities must be managed from a strategic perspective. Cadbury Schweppes seems to have missed out in this domain. It has focused most of its attention on delivering shareholder value but fails to understand that it is only after integrating strategic human resource management into its business strategy that superior shareholder value may be delivered. Another interesting point is that even if Cadbury Schweppes has got some competitive advantage as demonstrated through its current levels of profitability, this competitive advantage may not be sustainable if it does not properly