1. This is a PEST analysis for Cadbury Dairy Milk
Political and Economic
· A change in government will cause a change in polices..
· If the interest rates go up it will mean that there is no capital expenditure and no new jobs will be
created which will therefore affect employment.
· If inflation went up/down it would affect the cost of materials and therefore their profit would
increase/decrease accordingly.
· If pensions and national insurance went up then Cadburys costs would go up meaning that their profit
would go down.
· If taxation went up then it would increase the production costs meaning that their profit would go
down.
· If unemployment was high then people will have less money to spend on luxury goods like chocolate,
again their profit would decrease.
· If exchange rates changed it would affect the cost of exporting, so a change to the euro would mean that
it was better for exporting
· If the national income went down people would have less money to spend on luxury items such as
chocolate.
Social
· If the population size decreased then their would be less people to buy their products therefore less
profit.
· If peoples lifestyles changed e.g. more people wanting to get fit and lose weight, then they will stop
eating chocolate and spend there money on gym memberships etc. This means that Cadburys profits will
decrease.
Technological
· An increase in capital expenditure e.g. more up to date equipment would mean that the goods where
produced quicker and cheaper but would also result in job loses.
· Research and development- keep developing new products to keep up with competition and customer
2. needs. Foucault refuted
Legal
· More legislation in place to make sure that the workplace is safe and the worker is better protected.
Expensive costs to Cadburys to implement.
Environmental
· Cadburys is built on a river which at one time they would have been able to dispose waste in, but now
that they can't its expensive to dispose of waste properly.
SWOT Analysis
A SWOT analysis considers the strengths and weaknesses of the business and its current strategy, and the
opportunities and threats the business environment may present the firm with in the future.