PESTLE Analysis of Cadbury: Analyzing the Impact of Macro Environment Factors

This report conducts a PESTLE analysis of Cadbury, examining the brand's business strategies and the impact of macro environment factors on its operations. The analysis covers political, economic, social, technological, legal, and environmental factors. It highlights the opportunities and challenges faced by Cadbury in different countries and suggests ways to improve performance and mitigate threats.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
References:.......................................................................................................................................3

INTRODUCTION
Global business environment consist of large number of diversified countries with there
different political, economic, technological and other factors to pressurize the business operation
with uncertainties and complexities with fierce market competition (Hamilton and Webster,
2018). The report is about the PESTLE analysis of the 'Cadbury' – A British multinational
company in confectionery industry founded in 1824 by John Cadbury, headquartered in London,
England, Uxbridge.
MAIN BODY
PESTLE analysis of Cadbury is conducted to analyse the brand for its business strategies
and macro environment factors and there impact on the business of Cadbury. PESTLE analysis is
the framework also helps Cadbury to understand the market dynamics and know how to improve
its business continuously. Political factors: Government regulation has been changed from Labour party to Liberal
Democrat in UK, therefore, Cadbury needs to change there policies regarding hiring,
training, employee rights and HR related acts accordingly for smooth operation (You and
et. al., 2019). Brexit has no negative impact on Cadbury rather company took it as
opportunity to increase its resources and the storehouse installation. Economic factors: Economic factor like inflation period tends to fluctuate the currency
values in various countries in which Cadbury serves its products lead to downfall of sales
and profit margin. The decrease in disposable income and cost conscious environment in
customers after Covid-19 provided opportunity to Cadbury to focus on new products with
smaller size to reduce cost and rise production. Social Factors: For Cadbury customers are first pripority in business therefore changing
culture of customers towards healthy, low sugar, low fat food is considered by the
company and taken as opportunity (Nordberg, 2020). Cadbury launched strategy of well-
being food to meet customers demand with mesmerizing flavours. Technological factors: with the latest technology Cadbury has adapted new packaging
and production processing machines to melt chocolates. With improvement in technology
quality and variety of products have also increased in company (Idris and Saridakis,
2018). But technology comes with pros and cons. The disadvantage of technology is
1

company need to invest heavy amount in training the labours about new machineries and
technology adopted by the Cadbury. Legal factors: Cadbury is the popular brand operating all over the world with its famous
chocolate products. Therefore legal laws and legislations of various countries are required
to considered by the Cadbury to enter new market. In UK, due to concern of obesity there
can be increase in laws like sugar tax.
 Environmental factors: with government green drive to reduce carbon footprint in UK
Cadbury has great opportunity to reduce the emission of CO2 in its operations and
packaging. In environmental issues company is facing a disadvantage of recycle products
packaging and waste management (Nirino, Miglietta and Salvi, 2019). Technology is
also threatening many organisations like Cadbury regarding the cyber crimes and security
issues.
CONCLUSION
It is analysed and concluded from the above Pestle analysis of the Cadbury that
company's brand image make it easier for them to enter new market in various countries.
Company is lacking in the sustainability with environment due to its plastic packaging. Hence
the PESTLE analysis helps the organisation in improving there performance and mitigate their
threats.
2

References:
Books and Journals
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Idris, B. and Saridakis, G., 2018. Local formal interpersonal networks and SMEs
internationalisation: Empirical evidence from the UK. International Business
Review. 27(3). pp.610-624.
Nirino, N., Miglietta, N. and Salvi, A., 2019. The impact of corporate social responsibility on
firms’ financial performance, evidence from the food and beverage industry. British
Food Journal.
Nordberg, D., 2020. The Cadbury Code and Recurrent Crisis. Springer Books.
You, K and et. al., 2019. Bridging technology divide to improve business environment: Insights
from African nations. Journal of Business Research. 97. pp.268-280.
3