Cadbury : A Typical Example Of 19th Century Family Capitalism

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Family capitalism can be defined as a group or an organization which is charged by multiple generations of a family. In 19th century, family firms took a huge place in the market, but not all of them acting the same way. Cadbury is an important example for 19th century family capitalism since it has its own special features. The propose of this essay is to determine that if Cadbury was a typical example of 19th Century family capitalism. The essay states that Cadbury was not a typical example of 19th century family capitalism. I will explain three main points on why Cadbury is not a typical example, because its time period, its non-paternalism and its expansion. Firstly, I would focus on that most family capitalism doesn’t last for more…show more content…
The average lifespan of family firms is 24 years which is close to average working life of the corporate founder. There are 30 percent of family firms can be transferred to the second generation, and no more than two thirds of them can be transferred to the next generation (MBA lib, 2015). It seems hard to operate the family firms over two generations, because to transmit the firms to the next generation is strenuous. To choose the right successors is uneasy, to run the business properly as successful as the last generation is not easy as well. However, Cadbury is still alive till now. John Cadbury sold tea and cocoa also drinking chocolate and cocoa in a grocer’s shop in 1824 at Birmingham. The little shop became the first step of family firm of Cadbury. Cadbury then worked with his brother Benjamin, followed by his sons Richard and George. George Cadbury and Birmingham architect, George H. Gadd worked together to draw up plans for the factory. In 1893, George Cadbury bought another 120 acres to build houses with the ideals of the embryonic Garden City movement. After two years, 143 cottages were built on the land he had bought which was called as Bournville village. In 1904, George Cadbury developed a milk chocolate bar with more milk and made a huge success. In 1919, Cadbury bought Frys and the company suddenly grew. In 1969, Cadbury merged with Schweppes and developed the
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