What are Cadbury nestle ? (slide one)
Pestle/external analysis of the nestle and Cadbury (definition of a pestle from book)
Political
* Taxes could increase which in theory would lead to sales decreasing and profit therefore decreasing but as chocolate is such a small purchase this is unlikely * Government are always pushing for a healthier Briton as obesity is a massive cost on the NHS this would theoretically drive down sales * Food labelling and international trade laws these need to be monitored * Food safety acts in the various countries they trade in * Making sure subsidiaries aren’t underpaying staff or treating them unfairly otherwise scandals and lawsuits could happen similar to Wal-Mart in the US.
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Hence, the cost of producing products for Cadbury has also increased. * There is lack of penetration in the rural market where people tend to dismiss it as a high end product. It is mainly found in
If we want to analyse the political factors which impact upon the company we need to make a general view of the situation in the country. What are its law and requirements?
In the 21st century obesity within the UK was starting to become a major concern, after the issue of smoking had been dealt with. In order to get a handle on the growing problem of obesity, the prime minister at the time released a new piece of legislation otherwise known as “Choosing Health: Making healthy choices easier”. This piece of legislation was designed with the
The campaign we will be presenting is about obesity. In Sandwell, especially Smethwick; the number of children who are considered obese is 893 and the local value for this number is 25.9 where the England average is 19.0 and England’s worst is 26.5 ( as you can see the Sandwell figure is very close to England’s worst). These children are much more likely to develop health problems
In the UK about 46% of men in England and 32% of women are overweight, and an additional 17% of men and 21% of women are classified as obese. Overweight people and obesity is rapidly increasing so it is estimated that by 2015 over 50% of the population will be obese. These campaigns have a big emphasis on education and in particular in settings such as primary and secondary schools. Children are being taught about healthy lifestyles, one of the big changes was inputting healthy foods into school canteens. Adults are also being educated by replicating the idea in schools workplaces also have fatty foods replaced with healthier foods and reducing the number of smoking areas to discourage smoking breaks at work when it all gets too stressful.
The premium chocolate market has been growing at 20% annually, showing that buyers are willing to pay more for a better tasting and better quality chocolate. The declining growth of the overall chocolate market and rapid growth of the premium chocolate market is positive for current producers of premium chocolates in that the decline
Thyselius said, “If you make losses it means that operations are not working and that you allow negligence and stupidities” (342). The managers’ behavior is a problem that they need to solve first. They require the managers to display the “personal drive” and believe that the HR is the main factor that cause success. They want to hire the best employees for their company because “to produce quality you have to hire qualified persons” (343). So, the top management, which controls everything in the subsidiaries, is the most important thing. They can invest in “employee competence development.” After that, they can talk to the managers to find out why the managers broke the policy
One important underlying driver of change in the chocolate industry is the large manufacturers lobbying to change the definition of the term "chocolate" under USFDA guidelines, if they are successful in doing this then this could potentially have a dramatic impact on the competitive environment, with lots of cheaper products
Eating unhealthy foods is one of the major causes of obesity today; but should there be a higher tax on all soft drinks and junk food? Should people be punished for eating what they want? Yes, there are health risks involved with an unhealthy diet but is a higher taxing on these foods the right alternative? With the price of healthcare raising maybe the extra tax could help alleviate it, maybe not. Perhaps the higher tax will turn people away from buying unhealthy foods and drinks. Consuming unwholesome food can lead to clogged arteries, heart attacks and many other fatal illnesses. Buying the healthier substitute may help our
The social demand for chocolate varies for several reasons. One of which is a change in the level of the population. The population of the UK is aging, people are living longer and there are a lower percentage of children. This would indicate that although the population is increasing because of people living longer there are fewer children, which is the main consumer for the chocolate industry resulting in less demand for the product.
* There is an increasing amount of pressure from the government to encourage people to eat healthier as the number of deaths relating to obesity and an unhealthy lifestyle is on the increase year after year.
“If and when the public chooses to use government power to offset the factors that promote obesity, we can do so. A day may come when we decide to limit advertising of unhealthy food, strengthen lifestyle teaching in schools, and create stronger financial incentives to adhere to lifestyle recommendations. The more eager we the people are to fight the obesogenic environment, the more responsive and effective our governments will become” (Medscape General Medicine, vol. 9, no. 4, 2007).
In recent years, obesity in Britain is increasing. The Government believes that reducing fast food and soft drink calories in the market,
the welfare of their employees and how they want to keep their employees satisfied in turn
can be done to ensure that the company will work in the best interest of the
This would in turn effect Famous Brands negativley as Famous Brands will now have to pay a higher tax on sugary products in order to buy them forcing them to raise the costs of their end products sold to consumers meaning that the end products that consumers are now buying are going to be more expensive and taking away a competitive advantage from Famous Brands as they now have higher product prices making it easier for competitors to compete against