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2022 Distinction : Unit 1 - Exploring Business Assignment 2 Learning Aim C

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Uploaded on
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Arif Mohammad
Unit 1 – Assignment 2
Learning Aim C: Examine the environment which businesses operate




UNIT 1 – ASSIGNMENT 2
Learning Aim C: Examine the environment which businesses operate

,Arif Mohammad
Unit 1 – Assignment 2
Learning Aim C: Examine the environment which businesses operate




Contents
Introduction to Cadburys.......................................................................................................................2
Pestel Analysis...................................................................................................................................2
Political Environment factors.........................................................................................................3
Economic factors:..................................................................................................................................6
Social Factors:......................................................................................................................................11
Technological Factors:.........................................................................................................................14
Environment and ethical:.....................................................................................................................16
Legal Factors:.......................................................................................................................................18
Evaluate the extent to which the business environment affects a given organisation, using a variety
of situational analysis techniques........................................................................................................20
Bibliography.........................................................................................................................................25




1

, Arif Mohammad
Unit 1 – Assignment 2
Learning Aim C: Examine the environment which businesses operate

Introduction to Cadburys
Cadbury Mondelez is a multinational company that is founded by Mondelez who is the owner of the
company. Cadbury main headquarters is in Uxbridge, West London and it operates in 50 different
countries which includes UK, Australia, India, China and USA. Cadbury makes products which
includes dairy milk chocolate, fudge minis, Cadbury roses, Cadbury dinky deckers and crème eggs.
This is showing Cadbury has diversified its product range and is selling all sorts of chocolates in order
to entice customers to purchase their products and gain profit. Cadbury also offers chocolate bars
which include fry’s chocolate cream, Turkish delight and brunch choc. They also offer bags and boxes
which include Cadbury buttons and offer drinks. Cadbury is known to be one of the best chocolate
company to produce a wide range of products because of their powerful brand and their chocolate.
Cadbury was formed in Birmingham 1924 by John Cadbury where initially he started selling
chocolate drinks, coffee and tea.

John Cadbury ran his business with his sibling Benjamin where he opened his first store in Bull
Street, Birmingham. John Cadbury sold mainly cocoa and chocolate drinks in their own factory
located on Bridge street where he sold his own products to the aristocrats. Cadbury made their first
milk chocolate in 1875 where their main ingredient was milk and this gave the bar a luscious taste.
Cadbury has 71,657 employees as of 2008 which tells you it’s a large business operating worldwide
and the sector, they are in is in the primary sector as they get their own materials which include
cocoa beans, milk and sugar.

They are also in the secondary sector because they create their own products using their own brand
which tells you they made it themselves and it adds value towards the company. Cadbury has been
importing their cocoa from Ghana as this is what makes their chocolate special. One takeover of
Cadbury included Kraft Foods where they made an offer of £10.2 billion in order to take over
Cadbury but it was rejected. In addition, Kraft Foods had 71% of Cadbury’s shares in 2010 however in
2011, Kraft foods split and become part of Mondelez.

Pestel Analysis
The pestel analysis is an analysis where you identify the external forces outside the business. Pestel
stands for Political, Economic, Social, Technological, Environmental and Legal. The purpose of
conducting a pestel analysis for a business is that it would give you a strong indication of what’s
happening outside of your business and how it may influence your business activity.




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