Essay about Sample

1475 Words Apr 19th, 2015 6 Pages
Q.1: What are the advantages and disadvantages to Kraft Foods (Cadbury) of producing new lower-calorie versions of their existing chocolate bars?
Kraft Foods is one of the leading producers of chocolate bars in a number of different countries around the world, especially the UK. With inclining rates of obesity in countries like France, South Korea, USA, England, Greece and Italy, a decision to produce low-calorie versions of their chocolate bars could be a healthier alternative to the country. There are a number of advantages and disadvantages to Kraft Foods while producing these.

Advantages : a) They attract a new and major segment of the market which is more health conscious. This new segment of the market includes people who are
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Also, the government will benefit from the additional tax that they would impose on its citizens for purchasing products with a high fat content.
On the other hand, others may argue for the fact that the UK will not bring in legislation to tax high-fat food product like chocolate because of the following arguments; the growing chocolate market of the nation will be greatly affected by the fat-tax as this will lead to lower sales, thus little or no growth, and therefore poorer overall GDP of the country. After learning about the Danish Government’s attempt of introducing the fat-tax, the UK government will not risk the loss of workforce too. The fat-tax may have even led to Toms International’s employees going on a strike in an attempt to getting their jobs back by having the government withdrawing the tax.
Therefore, in my opinion, the UK government will not employ a fat-tax as it may affected the overall economic performance of the nation. The UK government can still lower obesity levels by stressing on the idea of a healthier lifestyle or by promoting the various chocolate companies to introduce a low calorie alternative.
Q.3: Why do you think that Denmark repealed its fat tax law after only 12 month? What are the implications for Danish chocolate manufacturers like Toms International?
Denmark repealed it fat tax due to several reasons. One of the sole reasons is

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