Pest Analysis On The Pestel Analysis Of Cadbury

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Pestel analysis on Cadbury:

It’s an analysis in which evaluate a firm or a nation or anything else under following domains: political, economical, social, technological, environmental and legal. This is done to chart long term plans.
Cadbury is synonymous with chocolate consumption worldwide. Opening shop in the early 19th century, Cadbury has emerged as a global brand with factories and offices the United Kingdom and North America, and a notable presence in Asia and Africa as well. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. Hence, Cadbury and its range of products are now owned by the American confectionary giant. The following is a PEST analysis of Cadbury
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Some of these are health and safety laws, employment laws of different country which affects the quality of a dairy milk chocolate. Also if the government decides to impose higher taxation by increasing the tax rate then the sale of Cadbury will fall. Since with increase in taxes the purchasing power of the buyer will decrease hence will make Cadbury a luxury product. But if taxes decrease it’ll be vice versa. Also if government passes any laws to save decrease the working hours of the workforce then it’ll bring a fall in production of Cadbury. On the hand government always has a constant concern for the health of the citizens. Products like chocolate promotes obesity, high sugar level etc which can influence government to pass laws against it. Also in few parts of underdeveloped countries, especially in the rural areas, Cadbury has been reported with poor product quality. A few consumers found cockroaches or other rodents in the chocolate, which can lead to strict action against the …show more content…
Just like other firms Cadbury also depends on bank loans for its operations. Thus, an increase in bank’s interest rate will slow down Cadbury’s expansion and growth. Also it’ll have an adverse impact on the purchasing power of the consumer since they’ll be burdened by their own loans. Hence decline in purchase of luxury goods. The factor minimum wage rate, if it falls, Cadbury’s production prices will fall. But it’ll have an adverse impact on the total disposable income of the consumer. There are various other economic factors like inflation rate which can moderate the price of raw material and cause fluctuations in the profits of Cadbury. Furthermore, if pension goes up then Cadbury’s cost will go up, leading a fall in its profit. If exchange rates changes it would affect the cost of exporting. Also a fall in national income will decrease the purchasing power of people for luxury

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