Internal and External Factors of Cadbury: Impact on Business

This report analyzes the internal and external factors affecting Cadbury's business environment and their impact. It includes a SWOT and PESTLE analysis.

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Business in practises is the implementation of various new
approaches which organizes procedures and routine like introduction
of management systems, improving employee retention and
establishing best practises databases. It means finding and using best
ways of working to achieve the business goals (Maylor, Blackmon
and Huemann, 2016). Cadbury is the British multinational
confectionery company which was founded in 1824 by John
Cadbury. There are about 71,657 employees currently working in the
company. Company is operating in more than 160 countries in all
over the world. This report covers Impact of external and internal
factors on the business environment of Cadbury. This is done by the
SWOT and PESTLE analysis. In PESTLE Analysis political factor effect companies performance. In this
Cadbury faces many challenges associate with political issues like, change in
labour act, trade war between the countries, Govt. restrictions in respect of sale of
companies commodity, change in tax rates etc. These factors effect Cadbury sales
and production directly because change in labour act can change the behaviour of
labour, when an approved act is not in favour of workers. Trade war and Govt.
restriction with changed tax rates are an another factor where sales of its
commodity is not too much and sometimes company accept challenges regarding
this, to gain additional benefits related with risk.
Economic factor in PESTLE Analysis refers the changes in political policies,
fluctuation and devaluation, changes in currency value, increment in restriction
related with trade of raw and finished goods or product. It can be said that change
in currency value can change the companies work frame and monetary system
because each and every company work for monetary benefits. Devaluation or
fluctuation in the value of currency is also a major economical factor which
directly impact on Cadbury.
In PESTLE Analysis social factor refers the effect of changing in
consumer demand and requirement. In this way Cadbury always try to look on the
quality of product because if quality is not good or not according to consumers
requirement than company suffers from many social issues like decreased brand
value, reputation of brand it will also effect the goodwill of company. Cadbury
always try to maintain quality level of product to make people happy and healthy.
•Strength: The biggest strength of the company is that it is a world
leader in chocolates. It has best manufacturing and distribution
channel. Another is powerhouse brands and products as it has
portfolio products like Bournvita, Oreo, Dairy milk etc. Next is its
promotional strategies are very amazing. Also, it has superb
distribution and placements channels. It has fantastic brand loyalty
and name which attract customers more towards the company.
These strength of the company helps in attracting more customers
and increasing their revenue.
•Weakness: There are some of the weaknesses of the company
which impact its working environment. Cadbury did not have a
distribution channel in rural areas. As at a time it was rumour that
Cadbury sold infected chocolates and it cannot maintain hygiene
Internal and external environment
INTRODUCTION
Internal Factors of Sainsbury
External Factors of Sainsbury
Impact on business
Cadbury is well established in all over the world with large base of customer
satisfaction. It has worked hard in making its marketing strategies which brings
good revenue. But company needs to focus on its weakness and threats that
how it can convert them into its strengths and opportunities. Then there are
some factors which can affect the business. Company neds to focus on those
issues and problems and plan strategies accordingly to increase its revenue.
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References
Hur, J.W., Shannon, D. and Wolf, S., 2016. An investigation of
relationships between internal and external factors affecting
technology integration in classrooms. Journal of Digital Learning in
Teacher Education. 32(3). pp.105-114.
Hamutoglu, N.B. and Basarmak, U., 2020. External and Internal
Barriers in Technology Integration: A Structural Regression Analysis.
Journal of Information Technology Education. 19.
Opportunities: Cadbury is covering the larger area in all over the world. If
company can distribute its product into the rural areas then it may be an
opportunity for the company to increase its revenue from rural areas as well
Internal Factors of Sainsbury