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Political decisions can affect Nestle for the good and the bad, because if taxes increase, therefore consumers decrease and sales of stock decrease. However if taxes decrease the likelihood is that consumers will buy more.

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  • Essay length: 746 words
  • Submitted: 21/08/2003
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GCSE Economy & Economics

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POLITICAL - business decisions which are influenced by political and legal decisions.

Political decisions can affect Nestle for the good and the bad, because if taxes increase, therefore consumers decrease and sales of stock decrease. However if taxes decrease the likelihood is that consumers will buy more.

The confectionery has been criticised for unhealthy products with high levels of sugar in chocolate and an advertising campaign for health eating has been launched.

The confectionery market operates within the wider food industry and, as such, is subject to stringent regulation. There are a number of regulations affecting cocoa and cocoa products, including the following: The Cocoa and Chocolate Products Regulations 1976, The Cocoa and Chocolate Products (Amendment) Regulations 1982, The Food Safety Act 1990 and The Food Labelling Regulations 1996. There have been ongoing disagreements between the EC and the UK regarding the definition of milk chocolate. It is likely that the EU will introduce new regulations for UK produces like Nestle.

Raw Materials for example coco supplied by countries like South Africa so if war breaks out supply could be short and cut back on production. There could also be

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