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SWOT and PEST analysis

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Introduction

SWOT Analysis The following swot analysis helps to shows four main things, first of all it shows the opportunities available and also the threats when releasing a new cereal bar into the market, it also helps show any strengths and weaknesses for Cadburys when releasing there new cereal bar into the market, overall helping to ensure no mistakes are made. Strengths * Cereal bars are suited to modern eating trends, i.e. snacking. * The cereal bar market is growing continuously. * Cereal bars are now more popular amongst consumers. Weaknesses * Products such as Kellogg's continue to dominate the market. * There is strong competition in the cereal bar market. * There is competition from other markets as well, i.e. cake bars and confectionery Opportunities * There is still plenty of space for more growth in the market. * Consumer demand for healthier food in the future may help boost demand for healthy cereal bars. * Cadburys brand name could help to boost sales. Threats * Overcrowding in the market could cause sales to fall for some brands. * The unsuccessful Cadburys BrunchBar could cause sales for the new bar to fall. ...read more.

Middle

2) Political instability could also crop up in the UK. This could cause unrest within a country and could also even have an affect on people buying products from Cadburys, as fewer tourists may come to the UK. 3) If the government was to raise tax on businesses selling goods, this would affect Cadburys as they would have to pay more tax, as a result leaving them with less capital. Economical factors: This includes things such as: * Government policy - Monetary policy and Interest rates * Economic Variables - Inflation and Unemployment levels The following is a list of economical factors which could possibly affect Cadburys: 1) If the government was to increase interest rates, this would mean companies wishing to expand would need to take out loans, leaving them to pay extra interest to the bank, which could also affect Cadburys. 2) Increasing interest rates could lead a business to raising its prices, therefore overcharging customers to pay for the extra interest, this could lead to customers buying from other major competitors, and this could also affect Cadburys as they may also need to charge extra to pay for the extra interests. ...read more.

Conclusion

2) If demand was then to fall Cadburys would then have extra employees to pay for, therefore they would lose money as they would have too many workers. 3) The HRP in Cadburys may need to altered if there is a sudden demographic change, if there was an increase in say the over 50's market, Cadburys may need to employ more over 50's to encourage people to buy the product. Technological factors: Factors from technological factors which may affect businesses such as Cadburys could include things such as improving facilities. The following is a list of social factors which could possibly affect Cadburys: 1) Purchasing products may have to be made easier, by introducing new technology to do so, this will help Cadburys to keep up with any other competitors in the market. 2) If demand was to increase, Cadburys would have to produce products more efficiently, which may mean buying more high tech and advanced equipment to do so. 3) If technology was to be brought or changed then someone would need to be trained to use the equipment, which would mean that Cadburys would have to pay more to train staff. ...read more.

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