Contemporary Business Environment: Cadbury's SWOT and PESTLE

This report presents a comprehensive analysis of Cadbury, a British confectionery company now owned by Mondelez International (formerly Kraft Food). The analysis employs the SWOT framework to evaluate Cadbury's internal factors (strengths and weaknesses) and the PESTLE framework to assess its external macro-environment (political, economic, social, technological, legal, and environmental factors). Strengths include a strong manufacturing process, a diverse product range, ethical approach, and strong brands like Dairy Milk. Weaknesses involve dependence on the confectionery market, competition with Nestle, and potential impacts of government regulations and taxes. The PESTLE analysis examines how political factors like tax policies, economic factors like fluctuating production costs, social factors influencing ingredient choices, technological advancements in production, legal requirements, and environmental concerns such as dairy processing impact Cadbury's operations and future prospects. The report concludes by highlighting the key challenges and opportunities Cadbury faces in the contemporary business environment.

Running head: CONTEMPORARY BUSINESS ENVIRONMENT
Contemporary Business Environment
Name of the Student
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Author Note

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Table of Contents
Introduction......................................................................................................................................2
Cadbury SWOT Analysis................................................................................................................2
Internal Factors or Micro-Environment...........................................................................................3
Strengths......................................................................................................................................3
Weaknesses..................................................................................................................................4
External Factors or Macro-Environment.........................................................................................4
Political........................................................................................................................................5
Economic.....................................................................................................................................5
Social...........................................................................................................................................6
Technological..............................................................................................................................6
Legal............................................................................................................................................6
Environmental..............................................................................................................................6
References........................................................................................................................................8

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Introduction
The company Cadbury’s is a confectionery company from Britain. Since 2010, the
original owner of the company is Mondelez International (Kraft Food).
Cadbury SWOT Analysis
Some factors are always subject to the ways by which the companies would take their
decisions. Both the internal and external factors of the company help them to reduce the costs
and get the profits (Ruddick 2017).
Source Unknown
Strengths Things that help the organization to achieve their goals
Weaknesses Elements those are dangerous for the organization to reach the goals.
Opportunities Some external attributes that would provide a better future for the
company in different terms.
Threats Some external factors that might affect the reputation and profit of the

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organization.
Internal Factors or Micro-Environment
Strengths
The manufacturing process of Cadbury’s is very much strong. This process is able to
make adaptations to the changing tastes of the customers. They are able to meet the demands of
the consumers effectively. The diversified range of products for Cadbury’s has given them an
advantage in the competitive market (Ruddick 2017). The ethical approach of the company has
enhanced their reputation and their care to the customers and social responsibility has been
convincing (Wallop 2016). The stakeholders are happy with their services and they take care of
the environmental issues as well. Some strong brands like Dairy Milk, Bourneville and Flake
have been their strengths over the last 200 years.

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Weaknesses
The primary market of the company is mainly the beverage and confectionery market.
The competitor of Cadbury’s is Nestle and their products are more diversified (Morris 2014).
This is why Nestle can use their profits to make investments on the other products. The company
depends on the confectionery products that might have negative impacts if tax is imposed by the
Government on high sugar and high fat elements (Wallop 2016). In this situation the company
might have to increase the prices of their products or they might have to make the smaller bars. If
they want to enter the new markets they have to invest in higher rates as well. This thing might
be possible for Mondelez but they will have to compete directly with the other brands of the
Mondelez group. They should conduct the market research as well before the changing the recipe
of their products to assess the needs of the customers (Butler 2015).
External Factors or Macro-Environment
PESTLE

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Political
The operations of Cadbury will surely be influenced in different ways since the
government has changed from the Labor Party to the Conservative or Liberal Democrat Party.
The sources have revealed that Cadbury employs around 5,600 staff in Britain and Ireland. The
tax imposition by the Government is a very important political factor since this will identify the
ways how Cadbury will complete their payments to the shareholders and increase its investment.
The Value Added Tax had risen from 17.5% to 20% in the year 2010. The company had to
increase the prices of their products (Butler 2015). The concerns of Government are regarding
the obesity of the people and they have proposed to impose the tax on products that have
excessive amount of sugar and fats. The increased prices of Cadbury products should be one of
the biggest outcomes in this scenario (Lewis 2016). The company should opt to decrease the
percentage of sugar from their products so they do not face any political or legal issues in the
future.
Economic
Kraft had bought the Cadbury at much lower price than the actual value due to the weak
pound in 2010. Some manufacturing had been shifted to Poland and they looked to focus on the
amount of profit that could be gained from Cadbury. Mondelez has been much conscious about
the growing production and ingredient costs and they have changed their recipes and products
have become smaller as well (Kim, 2012). The rising production costs must be managed by the
company because it is directly associated with the profit generation of the company (Holden
2011).

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Social
Cadbury Company was born of the social factors and this is why they have to take care of
the various social factors to come into prominence. The use of the ingredients has been very
important for the company from different perspectives. The company is run by a Quaker family
so they opposed against selling of alcohol and began to sell cocoa, coffee, tea and liquid
chocolate (Kim, 2012). They use social media platforms like Facebook and Instagram so they
can communicate with their customers. This helps them to make the bond stronger between the
organization and their customers.
Technological
Technology has been a very important to transform the packing and production process
of the company. They have used the new brew machines so they can mix the coffee and cocoa
grains. The company introduced the pathogen testing systems and they also had filled the patents
for the ‘heat-resistant-chocolate’.
Legal
The legal issue associated with Cadbury is regarding the requirement of letting the users
know the details of ingredients and calorie. This will be helpful for the users to assess the
percentage of fat in the ingredients. The regulatory framework regarding the takeover of Kraft in
the hostile manner could also be a challenge for the company Cadbury. The chances of imposing
sugar tax can also be there because of obesity.
Environmental
The dairy processing is one of the most crucial environmental factors for Cadbury. The
usage of water and waste is also a very significant reason behind it. Some programs should be

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initiated so the environmental performance can be improved indeed. The emission of the
greenhouse gases should be given the utmost importance in accordance with the environmental
factors for the Cadbury Company.

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References
Butler, S. 2015. Sugar tax will not change diets, says Cadbury chief. [online] the Guardian.
Available at: https://www.theguardian.com/business/2015/oct/22/sugar-tax-not-change-diets-
cadbury-mondelez-childhood-obesity-public-health-england/ [Accessed 26 Feb. 2019].
Cadbury.co.uk. 2019. Cadbury Chocolate | Cadbury.co.uk. [online] Available at:
https://www.cadbury.co.uk/ [Accessed 26 Feb. 2019].
Holden, S. 2011. VAT rises to record 20% but what impact will it have?. [online] Bbc.co.uk.
Available at: http://www.bbc.co.uk/newsbeat/article/12111655/vat-rises-to-record-20-but-what-
impact-will-it-have [Accessed 26 Feb. 2019].
Kim, J. 2012. Cadbury Develops Chocolate That Doesn’t Melt | TIME.com. [online] TIME.com.
Available at: https://newsfeed.time.com/2012/11/30/cadbury-develops-chocolate-that-doesnt-
melt/ [Accessed 26 Feb. 2019].
Lewis, K. 2016. This is what happened after Cadbury's changed the Creme Egg recipe. [online]
The Independent. Available at: http://www.independent.co.uk/news/uk/home-news/creme-egg-
easter-cadbury-mondelez-recipe-sales-a6950221.html [Accessed 26 Feb. 2019].
Morris, B. 2014. The Cadbury deal: How it changed takeovers. [online] BBC News. Available
at: https://www.bbc.co.uk/news/business-27258143 [Accessed 26 Feb. 2019].
Ruddick, G. 2017. Cadbury says chocolate could get smaller after Brexit. [online] the Guardian.
Available at: https://www.theguardian.com/business/2017/mar/24/cadbury-warns-chocolate-
could-get-smaller-after-brexit [Accessed 26 Feb. 2019].

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Wallop, H. 2016. The many ways Cadbury is losing its magic. [online] The Telegraph. Available
at: http://www.telegraph.co.uk/food-and-drink/features/the-many-ways-cadbury-is-losing-its-
magic/ [Accessed 26 Feb. 2019].