Strategic Management & Corporate Social Responsibility

Running head: STRATEGIC MANAGEMENT & CORPORATE SOCIAL RESPONSIBILITY
Strategic Management & Corporate Social Responsibility
Name of the Student
Name of the University
Author’s Note

1STRATEGIC MANAGEMENT & CORPORATE SOCIAL RESPONSIBILITY
Table of Contents
PART A: Introduction.....................................................................................................................2
Requirement [a]...........................................................................................................................2
Requirement [b]...........................................................................................................................2
PART B: PESTLE Analysis............................................................................................................3
PART C: Business Opportunities....................................................................................................5
References........................................................................................................................................6
Appendix..........................................................................................................................................9

2STRATEGIC MANAGEMENT & CORPORATE SOCIAL RESPONSIBILITY
PART A: Introduction
Requirement [a]
The chocolate manufacturing industry of United Kingdom (UK) is considered as a major
industry of the country contributing a significant portion to the gross domestic product. In the
year 2017, the total amount of revenue of UK chocolate industry was $4 billion. In this industry,
three major players can be seen that occupy 83% market share; they are Mondelez International
(Kraft), Mars and Nestle. It is expected that there will be decline in sales of this industry
(ibisworld.co.uk, 2018).
Requirement [b]
Advantages Disadvantages
 Easy way to frame the environmental
analysis
 Helps in the reduction of the impacts
and effects of potential threats on the
organizations.
 Aids and encourage in the aspect of
strategic planning.
 Helps in forming the implication of
entering new business market (Kew &
Stredwick, 2017).
 There is a scope of oversimplification
of information for decision making-
process.
 Irregular analysis can put negative
impact on the organizations.
 Required cost and time can restrict the
users from accessing the information
(Kew & Stredwick, 2017).
PART B: PESTLE Analysis
Political Factors: The introduction of Sale of Goods Act has affected the chocolate industry of
UK. With the help of this act, the consumers have the power to sue the companies if they are not

3STRATEGIC MANAGEMENT & CORPORATE SOCIAL RESPONSIBILITY
satisfied with the products (legislation.gov.uk, 2018). After that, the introduction of Competition
Act in 1998 made the provisions against the abuse of dominant position in the market
(legislation.gov.uk, 2018). The introduction of Conservative Party in UK also has negative
impact on the chocolate industry of UK. One important aspect is the effects of Brexit on the UK
chocolate industry. The effects of Brexit will lead to smaller chocolate bar at higher prices as
there has been 1.5% rise in cocoa prices. UK uses to export 205% of their chocolates to EU
(businesswire.com, 2018). It needs to be mentioned that all these aspects have high effects on the
chocolate industry of UK.
Economic Factors: It needs to be mentioned that the world economic crisis and the recent
economic depression have major negative effects on the whole UK chocolate industry. The
effects of these factors have decreased the spending capacity of the common people and it leads
to the decrease in the sales of the UK chocolate companies. Moreover, the decrease in the value
of pound is expected to decrease the profit margin of the chocolate companies. It is expected that
the overall revenue of the chocolate companies of UK is going to be decreased by 1.4%
(ibisworld.co.uk, 2018). Massive rise in the price of chocolate can be seen due to the effects of
Brexit and it leads to the increased price of the chocolates in UK. The material are priced in euro
and UK is buying them in sterling and paying more amounts (managers.org.uk, 2018). Thus, this
factor has high impact on the companies.
Social Factors: It can be seen that the chocolate companies of UK have become more conscious
about the health of their consumers due to the bad effects of chocolate on health. For this reason,
the companies are required to pay high amount of taxes on their products and it is responsible for
the decrease in the sales of these companies. In addition, the chocolate companies of UK have
also introduced chocolates for the ageing population of the country in order to make the older