Breakfast Cereals in Uk 07

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Breakfast Cereals in United Kingdom 2007

The aim of this report is to discuss whether
The change of macroeconomic situation is an opportunity or threat for United Kingdom’s breakfast cereal industry.
Compare the external microenvironment that affects firms in which breakfast cereal industry operates with the help of PEST analysis.
To evaluate the operational strategy that affects the level of competitive environment in an industry using Porter’s five force model.

Why I chose this industry:
Cereals are a great start to the day.
“Breakfast like a king, lunch like a prince and dine like a pauper." By Adelle Davis
Like most proverb says, this one hold more than a gram of truth. Breakfast cereals are
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The manufacturers are stressing about their health credentials on packs (like fiber, calories, vitamins, minerals, wholegrain and super food), so that the message reaches the increasing target audiences. However, the hot cereals accounts for only 12% of the market had seen strong until 2006 driven by the growing consumers’ interest in oats, [23]. Therefore, the hot cereals have launches a number of oats based cold cereals, which include oatibix, oats&more, and cheerios oats, which now have taken over the hot cereals market. There is an ongoing development in the eating on the go and snacking market has played an important part in the growth of the industries.

PEST Analysis:
The PEST analysis is an analysis of the external microenvironment that affects all firms in which a business operates. The PEST is an ellipsis for the Political, Economic, Social, and technological factors of the external macro environment. These factors usually are beyond the control of firm’s but sometime become threat for the firm itself. This analysis is important when developing a product, business or strategy planning.

This arena will have huge influence depending on the regulation of business and the spending power of consumers and other business. Many political factors affect this industry as it deals with the foods. There are many basic regulations for the food industries but here there are only few important laws and regulations that have been

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