This is the detailed PESTEL analysis of Cadbury, it was founded in 1824 as a confectionary company in the United Kingdom and later became a multinational when it was expanded to other companies and now their products are available worldwide. Conducting the PESTEL Analysis on Cadbury will reveal how these external factors can have an effect on Cadbury.
Political Factors
Considering the political context of different countries, factors like political conditions, trade policies, tax policies, import restrictions can affect the sales or manufacturing of Cadbury. For instance, if a country’s political conditions are unstable, it affects the industries as well, and thus it can disrupt the manufacturing of Cadbury products. Similarly, Cadbury has to imply to tax and trade policies which can affect its operations.
Economic Factors
The global economic conditions have an effect on the operations and sales of industries. For instance, if a certain country or region is facing inflation, the customers will have lesser buying power and the sales for Cadbury will decrease. Moreover, interest rate and exchange rate also effect the operations and manufacturing of Cadbury products. For instance, if the labor cost in a certain country is high and Cadbury plans on having a manufacturing unit in that country, Cadbury will face high product costs.
Sociocultural Factors
These are very important especially in terms of the ingredients that Cadbury uses. For example, if Cadbury is entering a country with Muslim majority population and alcohol is illegal, then Cadbury has to alter the ingredients accordingly to sell their products in that market. Moreover, the awareness for obesity is increasing in a lot of countries, which will definitely result in decrease of sales for Cadbury products.
Technological Factors
Use of technology has been improving the process of manufacturing for Cadbury for many years and this will continue to happen if it keeps on adopting technology in its manufacturing. The products will be manufactured more efficiently and reduce cost of production for Cadbury and more use of technology will decrease the labor cost as well.
Environmental Factors
With consumers being more aware of the issues in their environment, they start choosing products that are environmental friendly. Cadbury has been adopting techniques that are environment friendly so that they maintain their brand image in most of their markets but consumers have become more conscious than ever and thus this will affect the sale of their products. Cadbury now also have to take into account the recycling and waste management techniques as well.
Legal Factors
When entering various markets around the globe, Cadbury has to take into account various patents and laws that exist in a certain country in order to enter the market. When establishing their manufacturing plant, they also have to imply to environmental, manufacturing and employment rules of the country and all that comes with a cost. But with a brand image like Cadbury’s, it becomes easier for countries to accept the company as it has a good impact on the overall economy.