Swot and Pest Analysis For Cadbury’s

OPPORTUNITIES

* Sponsorship for sporting events

* Diversify into a different market

* Expand Nationally

* Promote using large marketing strategies

THREATS

* Cadbury's main competitor Nestle launching a new product

* More companies diversifying into the chocolate market

* A large price war, taking Cadbury's off the market

WEAKNESSES

* Unmotivated staff in the work place

* Too big a demand for a particular product

PEST is split into four categories, political, economic, social and technological influences, which are all external factors. A PEST analysis identifys what external factors are going to effect Cadbury's in the coming months and years.

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

* Political decisions can affect Cadbury's for the good and the bad, because if taxes increase, therefore consumers decrease and sales of stock decrease. However if taxes decrease the likelyhood is consumers will buy more.

* Laws can also change Cadbury's income because if a law was brought out, that you could only work 9.00am - 5.00pm, factory hours would be cut, resulting in less chocolate being made and people would have less disposable income to spend on pleasurable items e.g. chocolate.

* If the government continue to not lower petrol taxes, it could result in another petrol crisis, which has a knock on effect to tourists from reaching Cadbury's world, it stops the distribution chain, and stops factory workers from getting to their work place, putting a halt on production.

ECONOMIC - influenced by domestic economic policies and world economic trends.

* The interest rates can affect Cadbury's because if the interest rates were high then Cadbury's would not want to borrow as much money for expansion. Also if consumers had loans they would again have less disposable income to but luxury items.

* If the minimum wage was brought down, this would mean more money for Cadbury's but would also result in low sales from the consumers.

* The government can also raise taxes, which would bring a stand still to the sales of chocolate.

SOCIAL - close analysis of society

* If Cadbury's factories do not control their pollution levels or have big buildings destroying the landscape with noise and traffic congestion, then the local residents would complain to their local council resulting to possible incentives for bringing in jobs for the community being stopped.

* On the other hand local residents with small businesses near to Cadbury's world would benefit due to the money being brought in by tourists.

TECHNOLOGICAL - developments in manufacturing and business processes.

* Cost of machinery

* New machinery

* Maintenance

* Training for advancing IT

* Upgrading old machines to improve the company

* Advances of transport of goods/cost/lorries

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