Business and Environment: Economy, Strategy, and Cadbury Analysis

This report provides a comprehensive analysis of the business environment, focusing on the structure and operations of the national economy, including the UK's economic landscape and the role of government intervention. It explores key competitive indicators, various market structures such as monopolies and oligopolies, and different types of business organizations, detailing their advantages and disadvantages. The report delves into the key concepts essential for developing a successful business strategy, including mission statements and competitive advantages. Furthermore, it examines the ownership structure of Cadbury, assessing its suitability and highlighting the company's current business strategies, mission, and vision. The influence of stakeholders in business decision-making is also considered, offering a holistic view of the factors that contribute to business effectiveness.

Business and the
Environment

TABLE OF CONTENTS
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK -1...........................................................................................................................................3
Explaining the structure and operations of national economy....................................................3
Explaining why government intervene in the economy..............................................................3
Key competitive indicators and different market structures.......................................................4
Different types of business organizations with advantages and disadvantages..........................5
Key concepts to have the development of the business strategy................................................7
TASK -2...........................................................................................................................................7
Presenting type of ownership and the suitability.......................................................................7
Explaining Business strategy and Objectives............................................................................8
Responding in competitive environment....................................................................................9
Explaining influence of stakeholders in their decision-making..................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Environment is one that provides various opportunities and it is necessary for any
business to identify such opportunities for better working. Also, the present report will explain in
detail about influence of competitive environment on various type of business along with certain
key concepts that are needed for development of any business strategy. Furthermore, the study
will also analyse ownership and suitability of the Cadbury business. Also, study will highlight
the current business strategy that is used by cited firm and will provide detail description about
mission and vision statement that is been followed over the years. Lastly, influence of the
stakeholders in making the business effective in long run will also be covered in this report in
detail
TASK -1
Explaining the structure and operations of national economy
The structure of the national economy is based on the scale of the economy, its growth,
market conditions, business structure and competitiveness in the market. The structure of the UK
is so wide as it helps the economy to have positive growth. In 2020, the trade in the UK is with
around 27 members of the state that is accounted for 49% of the country exports and imports for
52%. The service sector in the national economy of the UK contributes to 81% of the GDP. The
economy used to provide the best financial services that helps the economy to grow. The national
economy of the company is highly developed and having the best social market. It is the six- the
largest national economy in the world that used to measure the gross domestic product and the
eight largest economy in order to purchase power parity (Dutchak, Rudenko and Shubenko,
2019). By having such a great economy it helps the UK businesses to operate nicely in the
economy. This will contributes in the further development and helps the country to grow more
across the globe. The UK economy was the first economy that used to industrialize. This shows
that the structure and the operations of the national economy was good and this helps the
business to operate well in the national economy.
Explaining why government intervene in the economy
The government used to intervene in the economy in order to have positive growth of the
country. The intervention done by the government is done on the basis of redistribution of
income and wealth in the market. The government used to launch different type of welfare

program that includes the unemployment insurance, health and free education to children. This
helps the economy to have the smooth flow of the working. This also sustains the quality of life
for some parts that economically disadvantaged. Without having the intervention of the
government the monopoly market structures used to charge the high prices from the customers.
By there is negative impact on the working in the national economy. By having the intervention
the government used to regulate the monopolies and increase the competition in the market.
Sometimes, the business organization in the economy is highly affected by the intervention of
the economy and decreases the growth as well. By having the intervention in the public pressure
they used to make the wrong decisions in for the economy. This lacks the business to have the
personal freedom in order to work in the economy. Sometimes it is good for the economy to have
the intervention of the government as it helps to have the fairness in the market.
Key competitive indicators and different market structures
The competitive environment refers to the environment that used to have the competition
among the different business. As the different business and each business has its own marketing
channels, promotional strategies and pricing methods (Bo, Bugayko and Grigorak, 2018). By
having this it used to create the competition in the market. This includes that how business is
affected by having the competition and the adaption in order to get succeed in the market. Key
indicators of the competitive environment is as described below:
1. Price: This is one of the most important key indicators that used to create the
competition in the market. As there are different types of business in the market
and each has different types of products. By having the big differences in the
prices this used to create the competition in the market.
2. Quality: this is the second most important factor that used to create the
competition in the market. As there are similar types of products in the market but
it used to differ in the quality. This used to create the competitiveness in the
market and affect the growth.
3. Profitability: As there are different types of business in the market of UK and
there are some market who used to sell same type of products and services. The
business having the more profit is more competitive in the market. Thus it lead to
have great competition in the market.

Market structures: there are different types of market structure in the economy which is
described as below:
11 Monopoly: The monopoly is the market structure in which there is only single
seller in the market. The monopoly business has the power to have increase in the
prices of the product as it is the single seller (ZHU, 2019). For example, the
railways is the best example of the monopoly as it is under the control of
government.11 Oligopoly: The oligopoly market structure is the structure having the small
number of organizations and having the significant influence on each other. There
is high barriers in order to entry in the oligopoly market (Ozu, Kasuga and
Morikawa, 2020). For example, car industry as there are few big firms in the
market dealing in providing the same product.11 Contestable: This refers to the market in which the company can be challenged
and are compared by the rival industries in order to enter the market (Durand and
Milberg, 2020). In this market the companies used enter and leave without having
the sunk cost.11 Perfect competition: The perfect competition happens when the companies used
to sell the homogeneous products and does not have influence on the prices of the
company. For example, if there are different types of the firms selling the
identical product than no individual firm used to have the competitive advantage
in the market.
Different types of business organizations with advantages and disadvantages
There are different types of the business organizations in the market and the marketer has
choice in order to have entry in the market (Valaskova and et.al., 2019). The different types of
business organizations is as described below:
1. Sole proprietorship: the characteristics of sole proprietorship is- This is one of the
simplest and easiest form of the business organization. The sole proprietorship is
owned and run by the individual and they used to take the overall profits are kept
by the individual only.
Advantages Disadvantages

 All profits are in the hands of owner.
 There are fewer rules and regulations to
be followed.
 Owner has the right to change the
running business.
 Debts are borne by the individual
owner.
 Ownership is so difficult to transfer.
 There is no difference between the
business and personal income.
2. Partnership: The characteristics of partnership is- Partnership refers to the agreement
between the two or more members that used to agree on the terms and conditions in order to
operate in the market (Enamul and Nilufar, 2018). The partners used to have limited liability on
the operations of the business.
Advantages Disadvantages
 Resources are shared which
provides more capital in the
organization.
 Each partner has share in the profits
earned in the partnership.
 Not so expensive to establish the
partnership.
 All the partners are liable for the
losses and debts.
 It is very difficult for the partnership
firm to sell there business as a whole.
 The partnership ends when any of
the partner decides to wind up.11 Corporations: The companies are created by the shareholders by purchasing the
shares. The profits are generated in the company and given to the shareholders in
the form of dividends (Mishulina and et.al., 2019). If the company use to bear
losses the shareholders are not provided dividends.
Advantages Disadvantages
 The liability of the owner is limited.
 Profits are distributed in the form of
dividends to shareholders.
 The company can be transferred to the
new owners easily.
 The operating costs of the company is
so high.
 There are more rules and regulations to
be followed in order to form the
company.
 The company have more than limited

turnover used to pay taxes.
Key concepts to have the development of the business strategy
Business strategy refers to the system that helps the business to have the clear and set
plans that helps them to outline the goals of the business. This is the most important task done by
the company in order to have overall focus on the made strategy. There are some key concepts
that has in the development of business strategy is as described below:
Mission statements: This is defined as the action- based statements that helps the
company to know the purpose and how to provide to their customers. This can be called as the
short summary of the objective of the company (Moktadir and et.al., 2020). In order to make the
proper business strategy the company must have the good mission statements that helps the
company to have the more target market.
Competitive advantage: This refers to the factors that helps the company to produce the
better goods and services that makes them to compete in the market (Kumar and et.al., 2021). By
having the good competitive advantage it makes the company to have the better productivity to
compete with the rivals. The organization must make the proper strategies that helps them to gain
the competitive advantage in the market.
TASK -2
Presenting type of ownership and the suitability
Cadbury is the largest organization that is known for selling variety of food items that are
popular among the people. Moreover, earlier it was the private limited company launched by
John Cadbury who sold drinking coffee, tea and chocolate from the premises. Later the company
was continued by his brother and expanded to various regions. However, being private company
need to struggle a lot to establish the brand image in the market and sells various products that
are consumers choices (Gogokhia and Berulava, 2021). Moreover, the company has been able to
establish and become well-known only because of its products quality and reliability on the
brand. Furthermore, currently the firm had been partnered with the fair trade and entered into the
global partnership named cocoa life programme that helps in securing the future of cocoa
farming communities. Thus, entering into such partnership not only helps in building best brand
image but also allows in attracting more customers towards the business. Furthermore,

partnership are always good in the fulfilling certain long term objectives more quickly and in
systematic manner
Also, it can be said that Cadbury is most suitable business over the years because the
company has developed policies and offered variety of sweet products of genuine quality that is
difficult to be available within one particular brand. Also, it has been running successfully
because company is continuously conducting market research to identify which products are not
easily available in the target market so accordingly new product line might be launched within
the business to satisfy greater consumer needs (Kurpayanidi, 2021). Moreover, it is suitable
business because it is able to achieve all short and long term goals in well-defined manner in-
spite of challenges within the way. Also, it has the ability to identify potential business ideas
through identifying the gaps in the marketplace and based on that certain methods are been
designed for the future working of the business.
Explaining Business strategy and Objectives
Mission statement : It is based on assuring the best quality to the public. Also, company have
the strong commitment to continuously improve its products and services provided to various
customer.
Vision statement : The company believe in working together to create the brand that values
everyone that are associated with brand and its products.
Furthermore, based on that working of company is decided and the top management
assign various roles and responsibilities to each of its employees. Moreover, in context of
business strategy it can be said that company is focusing on the needs of the customers and is
concern towards differentiating the products in market against its competitors so that grater
customer might be linked with the brand. Thus, it is focused on developing the position in the
market through which garter customer loyalty and satisfaction might be maintained for longer
time frame (Nikitina and Lapiņa, 2019). Moreover, currently the company is into both B2B and
B2C where all its products are sold in both consumers and retailers that are interested in the
brand and its services. Furthermore, the business strategy of Cadbury aims at reaching large
number of people and also into conducting the market research so that customer views regarding
the products and services might be known.
Also, Business strategy might be explained through STP analysis where it can be said
the company had segmented people based on variety of factors such as the behavioural,

physiographic, and demographic factors (Struwig, Nuwagaba and Krüger, 2019). Moreover, it
has targeted all age group people that wish to consume variety of Cadbury products. Lastly,
company has positioned the market through making high quality products and brand image that
is unique from others.
Responding in competitive environment
There is ever-changing competitive environment and hence it is very much required that
detailed analysis is done by the firm so that it is able to sustain in the market for longer time-
frame. Moreover, it can be said currently the competitive environment of the Cadbury is
analysed through applying the porter five forces model that is as follows:
Bargaining power of suppliers: Under this element it can say that it creates big impact
on final prices of the products and its quality. Furthermore, it is low because of established brand
image the cited company is having lot of suppliers that wants to be part of the brand in the future.
Bargaining power of buyers: This factor is high because there are lot other brands that
are trying to introduce similar brand products in the market at low prices thus creating the
pressure to launch new products in the market (Porter's Five Forces - The Framework
Explained, 2022). Moreover, the customers preferences need to be considered to survive in
market for longer time
Rivalry among existing competitors: It is also very high as big companies are having
lot of products that are having similar attributes relating to the brand. Thus, due to intense
competition in the market revenues of the firm might be decreased. However, due to established
brand image and customer loyalty this factor might be minimized.
Threat of substitute: There are lot of substitutes that are available in the market that
claims to be superior to the brand. Although these are not able to position in the market due to
lack of brand awareness and limited market share. Also, there is huge difference in the quality of
the products (Kiseľáková and et.al., 2019).
Threat of a new entry: Though small retailers are entering every day in the UK market
but these are not able to position in the market due to limited resources and the customer reach.
Moreover, new entries of small firms need to be kept under close analysis so that accordingly the
working of the firm might be monitored.

Explaining influence of stakeholders in their decision-making
Stakeholders are ones that helps company to grow on the vast level and hence firm like
Cadbury need to keep all its stakeholder satisfied in achieving greater competency and efficiency
in target markets. Furthermore, there are various stakeholders that have the desired roles and
creates positive impact on the working of the firm. Also, the decision-making in any firm helps
either in achieving the desired objectives or creating unnecessary losses to the firm. Furthermore,
stakeholders in Cadbury ensures that the company is able to maintain dynamic environment,
ensures good working conditions to all employees for greater productivity and organization is
moving in the right direction to achieve certain long term objectives (Khalatur and et.al., 2019).
Moreover, it is through input of various stakeholders Cadbury is able to conquer various regions
and also gather the market informations that is necessary for continuous operations of the
business in long run.
Thus, it can be said that stakeholders are most important element for running of business
for longer time period. Moreover, stakeholders are key components that allows in building long
term customer relationship and build strong supply chain network so that best marketing and
sales might be done in the long run (Nuseir and Aljumah, 2020). Furthermore, stakeholders
within the Cadbury have also helped in brining the right amount of market information so that
better decisions are made and also right sources are available to the company to get the required
funds for the future expansion. Hence, stakeholders are influencing the objectives of the business
and for the Cadbury they are the most important factor that have helped to the business to grow
through continuous efforts and support. Moreover, the cited firm with strong stakeholder group
has been able to face all the difficult challenges and overcome all the obstacles in positive
manner
CONCLUSION
From the above report it can be concluded that competitive environment is one where all
internal as well as external factors need to be taken care so that negative impact on the working
of the business is reduced. Furthermore, the report had identified reason of government
intervention in national economy along with certain key indicators of for competitive
environment such as price, quality, profitability and much more that need to be taken into
consideration in daily working. Also, various market structures such as the Monopoly, Oligopoly
etc. had also been explained that might be adopted by the business in long run. Moreover, the

study had also explained different type of business organization along with its merits and
demerits in detail under this report. Lastly, the study had analysed business strategy of Cadbury
company and influence of organization stakeholders in making it success in competitive
environment.

REFERENCES
Books and Journals
Bo, W., Bugayko, D. А. and Grigorak, M. Y., 2018. Assessment of the national economy
through the application of logistics costs. Economic Thought. (3). pp.68-82.
Durand, C. and Milberg, W., 2020. Intellectual monopoly in global value chains. Review of
International Political Economy. 27(2). pp.404-429.
Dutchak, R., Rudenko, O. and Shubenko, Y., 2019. INTERNAL CONTROL OF
ENTERPRISE’S UNREAL ECONOMIC OPERATIONS IN NATIONAL
ECONOMY. Scientific Journal of Polonia University. 35(4). pp.27-34.
Enamul, I. and Nilufar, Y., 2018. Significance of negotiation skills for Bangladeshi HR manager
in private business organization. Elixir International Journal. 120. pp.51230-51234.
Gogokhia, T. and Berulava, G., 2021. Business environment reforms, innovation and firm
productivity in transition economies. Eurasian Business Review. 11(2). pp.221-245.
Khalatur, S. and et.al., 2019. Financial instruments and innovations in business environment:
European countries and Ukraine. Investment Management & Financial Innovations.
16(3). p.275.
Kiseľáková, D. and et.al., 2019. Competitiveness and its impact on sustainability, business
environment, and human development of EU (28) countries in terms of global multi-
criteria indices. Sustainability. 11(12). p.3365.
Kumar, S. and et.al., 2021. What do we know about business strategy and environmental
research? Insights from Business Strategy and the Environment. Business Strategy and
the Environment. 30(8). pp.3454-3469.
Kurpayanidi, K.I., 2021. The institutional environment of small business: opportunities and
limitations. ISJ Theoretical & Applied Science. 9(101). pp.1-9.
Mishulina, O. V. and et.al., 2019. Comprehensive assessment of business activity of a
commercial organization. J. Advanced Res. L. & Econ. 10. p.1824.
Moktadir, M. A. and et.al., 2020. Critical success factors for a circular economy: Implications for
business strategy and the environment. Business strategy and the environment. 29(8).
pp.3611-3635.
Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge
Management Research & Practice. 17(1). pp.96-107.
Nuseir, M.T. and Aljumah, A., 2020. The role of digital marketing in business performance with
the moderating effect of environment factors among SMEs of UAE. International Journal
of Innovation, Creativity and Change. 11(3). pp.310-324.
Ozu, A., Kasuga, N. and Morikawa, H., 2020. Cloud computing and its impact on the Japanese
macroeconomy–its oligopolistic market characteristics and social
welfare. Telecommunications Policy. 44(1). p.101852.
Struwig, F.W., Nuwagaba, G. and Krüger, J., 2019. The influence of the business environment
on the growth of informal businesses in Uganda. The Southern African Journal of
Entrepreneurship and Small Business Management. 11(1). pp.1-10.
Valaskova, K. and et.al., 2019. Oligopolistic competition among providers in the
telecommunication industry: the case of Slovakia. Administrative Sciences. 9(3). p.49.
ZHU, J. J. H., 2019. The market structure of the internationalization of communication research:
From monopoly to competitive oligopoly. Communication & Society. (50). pp.187-246.