Mars is a global company with a strong brand name. As well as making the well-known chocolate…

Mars is a global company with a strong brand name. As well as making the well-known chocolate bar, it produces confectionery brands such as M&M’s, foods such as Uncle Ben’s, and drinks such as Starburst. Since its foundation in the USA in 1911, Mars has remained a family-controlled business and has expanded across the globe. Recently, a new factory was opened in the Czech Republic. In the UK, Mars operates as Mars Ltd. Employees at Mars Ltd are given considerable freedom to do their jobs and given responsibility at an early stage in their careers. They are also encouraged to make the most of their abilities through training and development. The company also offers many opportunities for promotion through internal recruitment. Mars Ltd has a history of caring for its stakeholders. Its website states ‘We take upon ourselves the responsibility for seeking to ensure that we deliver benefits to all stakeholders’. The company has strict policies relating to the minimising of waste, water, energy, and packaging. Like many well-known global businesses, Mars has faced criticism. The company was criticised because some of its chocolate was considered to be unsuitable for vegetarians due to the use of rennet (an animal-based product). Also, pressure groups have criticised Mars for not using cocoa from Fairtrade sources. These issues generated bad publicity. Mars responded promptly. In 2007 it announced that it would no longer use rennet and in 2009 that it would only purchase cocoa from suppliers which met strict new environmental and labour standards. The company is also sensitive to comments about the nutritional content of its chocolate. In 2010 it announced a significant reduction of saturated fat in a number of its best-known chocolate bars; a first for the confectionery market. Mars’ sales of chocolate have continued to grow in the UK and across the world. It has also, in the last decade, expanded into pet foods, and aquarium and pond products. Some business experts have questioned the benefits of this expansion and warned that Mars could become too large and suffer from diseconomies of scale.

1. Outline two differences between an organisation in the private sector and an organisation in the public sector.

2. Identify two ways to measure the size of a business.

3. a) Outline two differences between ‘on the job training’ and ‘off the job training’.

3. b) Analyse two possible benefits of internal recruitment to Mars Ltd.

4. Analyse one source of finance which could have been used to fund this investment.

5. Evaluate whether Mars’ stakeholders will benefit from the company’s continuing growth.