Business Strategy for Cadbury: PESTLE, SWOT, VRIO and Porter's Five Forces Analysis

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART-A...........................................................................................................................................3
1. PESTLE , SWOT and VRIO frameworks..........................................................................3
2. Porter's Five Forces Model.................................................................................................9
3. Identify and justify the organisation's existing or potential competitive benefits............10
4. Valid plans and strategical objectives to attain overall business goals............................10
PART-2 .........................................................................................................................................11
1. Critically analyse the various types of strategic directions..............................................11
2. Justify and recommend the most suitable strategy to ensure organisational success.......13
3. Evaluate methods by which selected strategy can be monitored.....................................13
CONCLUSION .............................................................................................................................13
REFERNCES:................................................................................................................................14
Books and Journals:..............................................................................................................14
Online:..................................................................................................................................15

INTRODUCTION
The success of any organisation is rely on its business strategy that it follows. Through
business strategy, any business can compete in its competitive market and generates more
revenues as well. It is very necessary for the business to seeking growth in a strategic way.
Business Strategy can be meant by establishing clear objectives, vision, plans and actions that
determines how an organisation will gain competitive benefits in its target place while providing
number of commodities and services (Lacy-Nichols, Scrinis and Carey, 2020). The company
which is chosen to make this report is Cadbury. It is British multinational confectionery brand
with headquarters in Uxbridge, West London, UK. The company was announced by John
Cadbury in 1824. It is positioned itself as the second largest confectionery brand throughout the
globe after Mars. It has world-wide business operations over 50 countries. Moreover, the brand
is highly known for its “Dairy Milk Chocolate” and many other confectionery items. Through
Pestle analysis, the macro environment of business is evaluated. SWOT and VRIO frameworks
are used in the report to analyse the internal resources and capabilities of the firm (Puspitasari
and Jie, 2020). Also, Porter's five forces model is used to know the competitive forces of the
given industry. Lastly, it is mentioned with model used to devise strategic plan for the Cadbury.
PART-A
1. PESTLE , SWOT and VRIO frameworks.
PESTLE analysis:
A PESTLE analyse is a framework used to analyse the main factors affecting a company
from the outside. It stands for political, economic, social, technological, legal and environmental.
In case of Cadbury, the analysis on macro environmental factors are as follows:
 Political factors: It covers factors such as tax policies, trade policies, political
conditions, trade restrictions and more that can influence the manufacturing and sales of
the brand. With the alternations in the government regulations, the chosen firm need to
change their business policies accordingly (Ricci and et.al., 2021). These regulations
severely influence their processes from hiring, training and rights of employees as well. If
considering UK government, it has modifies Labour Party to Liberal Democrat that
delivers a huge effect on the business functioning. It is found that, around 3000 workers

have been hired by UK factories but the entry of qualified employees can be reduced
which will have an impact in the future (PEST analysis of Cadbury, 2022).
 Economic factors: It includes factors such as inflation rates, exchange rates, interest
rates, GDP and many more which have an influence on the business operations and
production of the Cadbury. Even though the world-wide economic downturn affect
Cadbury' growth plans, sales stayed even. The chosen brand was able to achieve 30
percent rise in its annual profits (Zahari and Romli, 2019). But even, recession did play
its role as the firm managed only to hit the lower end of its four to six percent for 2009,
the peak of the recession. The Trident Gum and Dairy Milk Chocolate had a significant
sales.
 Social factors: The chosen brand initially was run by the Quaker family, hence, they
were not in favour of alcohol to be added to cocoa, tea, coffee or in their melted
chocolate. Nonetheless, the chocolates and other confectionery items that are delivered
by the Cadbury are accepted at global level, the firm has been facing a range of
controversies associated to its goods not being “Halal” to offer Muslim markets around
the globe. Additionally, customers are becoming more health-conscious and ethical aware
about the practices of company. It was found that some chocolate firms utilise child
labour to plant and pick out cocoa seeds. Hence, this sector was majorly criticised over
the exploitation of child labour.
 Technological factors: Advancing technologies has changed the way of doing
production and packaging over the decades, initiating with the launch of new brew
machines to blend and mix cocoa gains and coffee. Cadbury exploits technologies to
promote their goods, introduce new goods, moreover, they pay attention on the several
social media sites to keep their customers updated.
 Legal issues: Legal problems which can influence Cadbury is the needs to give proper
details of the ingredients and details of calories to support customers with making options
based on the fat content. In UK, legal requirements have immensely rise for the food
producers because of the EU membership which may limit after the BREXIT process is
done. Additionally, in UK, the company has been suffering due to the past scandals, and
it is not likely that customers would want to overlook the aspects on food regulations
respecting ingredients, health and safety to be majorly relaxed. Hence, if there are any