Executive summary on the Thornton case study

This report is subsequent to the Thornton public limited company case study.

A little, bit introduction about Thornton public limited company.

Thornton’s is one of the most prestigious brand names in the business of chocolate in the world and especially in the Great Britain (U.K.). The company has established around 100 years ago and has various products and different sources to marketing their product like own retail shops, café, franchisees, supermarket, and Thornton’s direct, commercial channel etc.

In this report, the concept of leadership and management in relation to Thornton will be review. Secondly, their stated aim of placing greater emphasis on retailing will be analyze and then their influence in situational factor on leadership in present and future will be critically examine through several leadership models


Before the report began with the Thornton’s the report would like to define the term “Leadership and Management” what does it mean to organization?

Leadership: According to http://sbinfocanada.about.com, Leadership means the art of motivating the employees of an organization to achieve their goals and help the organization for development in today competitive time.

Management: In simple words generally use in organization to achieve their desired goals effectively and efficiently. Management involves planning, organizing, employees, and controlling the organization to develop business in today’s competitive time. In addition, it is the exchanging of knowledge to create, to outsource, or to produce a new strategic or product for the development of organization.

The report is dividing into two parts. In the first part of the report will consider the achievements and negligence of the last chief executive Mr. Mike Davies. Moreover, which model of leadership he has use in Thornton during his time along with the SWOT analysis of the company will be analyze and evaluate along with the way he has role in the company is a transactional leadership skills. In the second part of the report the model Mc Kinsey 7 s and contingency: path goal theory on the new leadership will be analyze and evaluate in Thornton’s along with transformational leadership skills and how it will support Thornton’s to achieve their goals in the field of retail sales of chocolate and other products along with their situational factors.

Discussion: Where are we right now?

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Firstly, we will look at Last Chief Executive Mr. Mike Davies and his role in the Thornton public limited company. During the leadership period of Mr. Mike Davies, he has practice the leadership model Action Centered Leadership and SWOT analysis of Thornton’s.

Group needs: Strengthened our retail management team new initiatives to arise sales & strengthened the senior retail management team with innovative marketing & promotional programmes.

Task needs: Manufacturing operations, the product range and performance of its commercial channel and innovative new product.

Individuals needs:

Tough trading environment,

Reference: Action Centered Leadership

Adair, john.(1983) Effective Leadership. Gower.

SWOT ANALYSIS on Thornton public limited company:

Weakness: Thornton direct failed to meet the expectations of the company. Clearing of access stock in shops and then selling them with heavy discount.

Strength: Change of liabilities into assets, increase in eps (earnings per share) by 20.4% as compared to last year, Strong Balance sheet, and innovative new Products.

THREATS: increase in cocoa prices by 25% and butter prices has increased by 66%.

Opportunities: Introducing of Haiti charity bloc, new moulding line to increase productivity, design your own box with personal photo printed for consumers.

From the above analyzing, Mr. Mike Davies performance in Thornton’s public limited company and while looking at his past work experience in mars of 20 years along with his own consultancy, he has performed as a transactional leadership skills in Thornton’s plc. During his period of leadership, he has reconstructed the company and made a valid change in manufacturing operations along with innovation of chocolate box for the exclusively customers which had grown up by 84% in the last year and in the current year also increased by 5% in the current year. Now, Thornton has more than 30% of inlaid chocolate box market. Moreover, he shows strong balance sheet during the time of world economic crisis. However, he wants to reduce the dependence of Thornton’s public limited company. As the chocolate is a seasonal product large number of staff is temporary staff on production and own stores of Thornton that should a major problem in the management of the company.

2). Where are we going now?

Secondly, what company aspects from the new leader in Thornton should observe the situational factors and strategic development of retail sales and management of the company?

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The report will analyze the Mc Kinsey 7s model in Thornton and evaluate how it will help them to restructuring the management and retail sales along with the overcome of situational factors.

Analyze of Mc Kinsey 7 s model in Thornton has to look after the situational factors.

Structure: Change of working environment of staff from temporary to permanent staff in production and management.

Strategy: How to achieve goals and proposal to overcome with situational factors.

System: Innovation of technology, government support & etc.

Skills: Assets or resources provided by company.

Goals: Improvement in retail sales, situational factors and management.

Style: Leadership should concern with employees regarding motivation & training. Employees should feel free to share new ideas .regarding the new business source.

Staff: Looking after the employees. Like rewards and position in company.

Evaluation how does Mc Kinsey 7s model work in Thornton.

The new leader should adopt the McKinsey 7 s model approach in the Thornton along with transformational skills so that the employees should be able to share new ideas and new business source of development the organization and they should feel free to share their ideas with the leader directly. Therefore, that will help them achieve their goals in retail and over come with the situational factor. In addition, the new leader should overlook at the changes done by the last chief executive, and try to adapt some changes that are good for the company to cover up with the management in Thornton.

How contingency: path goal theory does help the leader and employees to achieve the goals.

Nature of employees: How should employees perform to cover up situational factors and improve retail sales, with determination or with disinterest in task?



2). Supportive

3). Participative

4). Achievement Oriented

Nature of task: situational factors and emphasis on retail sales of Thornton’s; it is an ambiguous structure task or manageable structure task.

Employees’ approach and motivation towards this situation in Thornton’s.

Goal Clarity shows the improved performance of the retail sales, situational factor, and job satisfaction of employees.

Evaluation how does contingency: path goal model work in Thornton public limited company.

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From the above analysis of the path goal model in the Thornton public limited company. We can examine that the working conditions of management need to be friendlier between the leader and the employees so that each task should be structure first so that management could complete the task properly within a period, it will give job satisfaction to employees, and company performance will be improve accurately.


This report has analyzed and evaluated Action Centered Leadership and SWOT analysis under the leadership of Mr. Mike Davies and he performs as a transactional leader in Thornton. Mc Kinsey 7s and contingency: path goal theory has analyzed and evaluated for the role of new leadership that is require by Thornton and it will help the cover up all the situational factor of management as the employees are on temporary basis they should be on permanent so they will be interested in their work.


From the case study of Thornton’s and this report, I would like to share my opinion that Thornton’s should go for vertical integration process of their daily needs product like milk etc. As this project is a low investment project, nevertheless it will help the organization to improve their strategic goals describe in the case study. They just need some greenery area or farm house to where they can take care of cows, and in return, they will get 100% fresh milk daily. That milk they could make butter, because it prices was arose by 66% in the year 2009. Moreover, milk can be use in the mixing of chocolate. This business is ecological and neither will it occur any global warming. Also with the help of vertical integration, they can improve the quality of chocolate that will stay for a longer period. Besides this, they can sell their own milk in their own brand name as a new product; they can launch different kinds of milk shakes in their own café in the U.K. and Ireland. That could help them to increase their own retail sales. It will also turn unemployment into employment that will help the government in terms of tax increase.

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