Macro External Environment Analysis of British Foods

Contents
BACKGROUND..................................................................................................................................1
HISTORY...........................................................................................................................................1
Market Positioning...........................................................................................................................2
External Analysis..............................................................................................................................2
I. Macro External Environment Analysis..................................................................................2
II. Micro External Environment Analysis...................................................................................3
Financial Analysis Performance.......................................................................................................4
Recommendation............................................................................................................................6
References.......................................................................................................................................8

BACKGROUND
The Associated British Foods is a British corporation where their headquarter is located in
London. According to Goldberg in 2011, it is indeed a multinational company food retailing and
processing business that has been ranked highly in various classes of food manufacturing. The
associated British Foods plc seems to be the world's largest producer of sugar and baker's
yeast, as well as a leading producer of other ingredients like emulsifiers, lactose, and enzymes.
It was a main grocery division that includes Ovaltine, Twining, Jordans, and Ryvita, as well as
private label grocery foodstuffs. This company seems to have a large retail division of more
than 15,000,000 square feet of retail space in United Kingdom, Germany, Ireland, Spain, as well
as among other countries [ CITATION Gol11 \l 1033 ]. British Foods plc, which is affiliated with the
company, is part of the leading manufacturers of consumables in the United Kingdom.
HISTORY
According to Goldberg in 2011, the Associated British Foods plc company was formed in 1935
by Canadian W. Garfield Weston as the Food Investments Limited, however after few months
were rebranded to Allied Bakeries Limited. Allied acquired ten state and local bakery firms
between 1935 and 1956. During this time, the company made a significant acquisition by
purchasing the Aerated Bread Company. Since then, Allied had achieved a considerable share of
the bakery products market in the United Kingdom throughout that period. At that time,
cookies and bread were being baked. ALLIED's gross margin increased dramatically as a result of
these acquisitions. Allied changed its name to Associated British Foods in 1960. Fine Fare, a
major British grocery store chain, was purchased by Allied in 1963. When the founder of
Association British Foods died in 1978, his children Garry and Galen took over. During the year
of 1986, the company began selling Fine Fare, and during 1991, they purchased the Sugar
Company. ABF pulled out from Ireland in 1997, sell off few of its main retails. Over the course of
the year 2000, the corporation showed interest in Burton's Biscuits as well as decided to
purchase a few shares of the company, and in 2002, ABF purchased the Argo and Kingsford's
cornstarch, Henri's dressing brands, mazona corn oil, and Karo and Golden Griddle syrups,
along with other products of Canadian. Finally in 2011, ABF Company was charged with tax

evasion. ABF was cleared of "illegal and unethical" duty evasion in February 2013 [ CITATION
Gol11 \l 1033 ].
Market Positioning
Based on Chen in 2002, market positioning is a process of developing a product's brand and
reputation so that consumers view it in a specific way [ CITATION Che02 \l 1033 ]. The Associated
British Foods PLC is a multinational corporation that has been around for nearly eighty-five
years, and one of the main tactics the business has focused during that period has been proper
market positioning and market sector selection. Throughout the year, this company has
purchased a variety of other food manufacturing entities, including bakery business but not just
limited to bakery, also have the most recent being which is the corn-made oil businesses.
External Analysis
I. Macro External Environment Analysis
The macro external environment focuses on the external nature that surrounds the business
and affects critical decisions instead of or it is not influenced by the organization [ CITATION
Bou92 \l 1033 ]. Associated British Foods plc seems to have a methods for measuring the macro
world in which it operates. The PESTEL theoretical instrument, according to Yuksel in 2012, aids
in critically evaluating the uncontrollable external. PESTEL acronyms for Political, Economic,
Social, Technical, Environmental, and Legal factors that have a substantial effect on The
Associated British foods PLC's macro ecosystem [ CITATION Yuk12 \l 1033 ].
Variations in the macro-environment have negative consequences for the business as a whole
[ CITATION Ban10 \l 1033 ]. They have the ability to affect a company's strategy and competitive
environment, as well as profit margins. A smooth business operation of Associated British
Foods plc is influenced by the political factors. Associated British Foods plc seems to have a
footprint in more than a dozen countries, positioning it in a wide range of political settings. This
can only deal with the issue by varying the structural problems that are present in different
political settings.
A lot of economic factors influence Associated British Foods plc, including the budget cycle,
inflation rates, foreign exchange rates, investment returns, and even interest rates [ CITATION