Analysis of Cadbury's Business Environment: SWOT & PESTLE Factors

This report provides an analysis of Cadbury's business environment, examining both internal and external factors that influence the company's performance. The analysis utilizes SWOT (Strengths, Weaknesses, Opportunities, and Threats) and PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) frameworks to evaluate the company's current standing and potential challenges. The internal strengths highlighted include Cadbury's global leadership in chocolates, robust manufacturing and distribution channels, and strong brand loyalty. Weaknesses such as limited distribution in rural areas and past hygiene concerns are also discussed. The report then delves into the external environment, focusing on political, economic, and social factors impacting Cadbury, such as changes in labor laws, trade wars, currency fluctuations, and consumer demands. The report concludes with a summary of how Cadbury can leverage its strengths, address its weaknesses, and navigate external challenges to improve its revenue and market position.

Introduction
Business in practises is the implementation of
various new approaches which organizes
procedures and routine like introduction of
management systems, improving employee
retention and establishing best practises
databases. It means finding and using best ways
of working to achieve the business goals (Maylor,
Blackmon and Huemann, 2016). Cadbury is the
British multinational confectionery company which
was founded in 1824 by John Cadbury. There are
about 71,657 employees currently working in the
company. Company is operating in more than 160
countries in all over the world. This report covers
Impact of external and internal factors on the
business environment of Cadbury. This is done by
the SWOT and PESTLE analysis.
Internal and external environment
External Environment
In PESTLE Analysis political factor effect companies
performance. In this Cadbury faces many challenges
associate with political issues like, change in labour act,
trade war between the countries, Govt. restrictions in
respect of sale of companies commodity, change in tax
rates etc. These factors effect Cadbury sales and
production directly because change in labour act can
change the behaviour of labour, when an approved act is
not in favour of workers. Trade war and Govt. restriction
with changed tax rates are an another factor where sales
of its commodity is not too much and sometimes company
accept challenges regarding this, to gain additional
benefits related with risk.
Economic factor in PESTLE Analysis refers the changes in
political policies, fluctuation and devaluation, changes in
currency value, increment in restriction related with trade
of raw and finished goods or product. It can be said that
change in currency value can change the companies work
frame and monetary system because each and every
company work for monetary benefits. Devaluation or
fluctuation in the value of currency is also a major
economical factor which directly impact on Cadbury.
In PESTLE Analysis social factor refers the effect of
changing in consumer demand and requirement. In this
way Cadbury always try to look on the quality of product
because if quality is not good or not according to
consumers requirement than company suffers from many
social issues like decreased brand value, reputation of
brand it will also effect the goodwill of company. Cadbury
always try to maintain quality level of product to make
people happy and healthy.
How the company impact its context
External Environment
Cadbury is well established in all over the world
with large base of customer satisfaction. It has
worked hard in making its marketing strategies
which brings good revenue. But company needs
to focus on its weakness and threats that how it
can convert them into its strengths and
opportunities. Then there are some factors
which can affect the business. Company neds to
focus on those issues and problems and plan
strategies accordingly to increase its revenue.
Internal Factors
Strength: The biggest strength of the company is that it
is a world leader in chocolates. It has best
manufacturing and distribution channel. Another is
powerhouse brands and products as it has portfolio
products like Bournvita, Oreo, Dairy milk etc. Next is its
promotional strategies are very amazing. Also, it has
superb distribution and placements channels. It has
fantastic brand loyalty and name which attract
customers more towards the company. These strength
of the company helps in attracting more customers and
increasing their revenue.
•Weakness: There are some of the weaknesses of the
company which impact its working environment.
Cadbury did not have a distribution channel in rural
areas. As at a time it was rumour that Cadbury sold
infected chocolates and it cannot maintain hygiene
Opportunities: Cadbury is covering the larger area
in all over the world. If company can distribute its
product into the rural areas then it may be an
opportunity for the company to increase its
References
Ogden, J. and Roy-Stanley, C., 2020. How do children
make food choices? Using a think-aloud method to
explore the role of internal and external factors on
eating behaviour. Appetite. 147. p.104551.
Cao, H. and Chen, Z., 2019. The driving effect of
internal and external environment on green
innovation strategy-The moderating role of top
management’s environmental awareness. Nankai
Business Review International.