BM461 - Cadbury's External Environment: Research and PESTLE Analysis

This report provides a PESTLE analysis of Cadbury, a British multinational confectionery company, to identify external factors affecting its business conduct. It examines political factors like trade relations and tariffs, economic factors such as inflation and pandemic impacts, social factors including co...Read More

BM461 CW1
External Environment
Research and
Analysis Portfolio

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis...................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
PESTLE analysis helps the organisation to identify its external factors affecting its
conduct of business. The key factors are Political, Economic, Social, Technological, legal and
Ecological/Environmental. It provides flexibility in the organisation to perform its marketing
activities in the changing environment. Further with help the organisation to formulate strategies
in order to achieve goals effectively and efficiently. This report examines the PESTLE analysis
of the Cadbury Company which is the British multinational confectionery covers the largest
market in the world (Goldstein, 2019).
MAIN BODY
PESTLE Analysis
This analysis helps to examine the external factors which are adversely affecting the
brand position (Neukirchen, Gansser and Klumpp, 2019) , are as follows:- Political Factors: Due to the political reason such as trade relations with other
countries, tariffs affects the business of the Cadbury. Further fluctuation of pound
caused great impact on the consumer expenditure and such exit created inflation as the
import price were increased. Sometimes the political rivalry also causes hindrances in
the policies and strategies of the company and thus, required to be upgraded according
to the changes. Economic Factors: Inflation rate ultimately affects the demand of the consumer and
thus, decreases the purchasing power of the consumers. It further led high cost of fuel
and the company is left with another alternative for means of transport. The company
was affected by the pandemic situation and on witnessing, the company is required to
invest in the developed countries (Kicová and Poniščiaková, 2021). Social Factors: During the pandemic situation, customer valued the healthy food and
thus, affected the Cadbury food menu. The situation aspired the customers to purchase
healthier and balanced food. Thus, the company offered healthy snacks and chocolates
and further produced the small bars with less amount of sugar. The company offers
various schemes and discounts along with gifts to the consumers in order to achieve the
desired goals.

 Technology Factors: For Hi tech customer and in order to encourage digital marketing
in the pace of technology Cadbury used the social media and network such as Facebook,
Instagram to promotes it products. Thus, the company focus to fulfil the needs and
wants of the consumer at the earliest to maintain its brand image. Legal Factors: Political decisions influences the company to change their strategies and
policies in order to meet the organisational goals effectively. Further the company is
required to follow strict regulations in respect of infringement of its copyrights. Thus
requires to keep a check on the changing policies and regulations .
 Environmental Factors: The Cadbury value the environment and thus opt eco-friendly
strategies. The company focuses on eliminating the waste by making proper use of
wasteful resources. For example the company eliminated the use of foil in its packaging.
Thus, using the ecological measures in order to run business effectively (Segura,
Morales and Somolinos, 2018).
CONCLUSION
From the above report it is concluded that, such external factors are required to be
highlighted in order to gain sustainability in the market. PESTLE analysis helps the company to
evaluate the factors affecting the conduct of business and take corrective measures in order to
cope in the changing environment. The above analysis help the Cadbury to exist in the
competitive market and will also help to overcome unforeseen situations.

REFERENCES
Books and Journals
Goldstein, B., 2019. Entrepreneurial Marketing: A Blueprint for Customer Engagement. SAGE
Publications.
Kicová, E. and Poniščiaková, O., 2021. Specifics in strategic management of non-profit
organizations in the globalization process. In SHS Web of Conferences (Vol. 92). EDP
Sciences.
Neukirchen, T., Gansser, O. and Klumpp, M., 2019. Marketing Concepts and Instruments in
Supply Chain Management. In Operations, Logistics and Supply Chain
Management (pp. 97-129). Springer, Cham.
Segura, E., Morales, R. and Somolinos, J.A., 2018. A strategic analysis of tidal current energy
conversion systems in the European Union. Applied energy. 212. pp.527-551.