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Avce Business Swot/Pest Analysis. E/C Criterea. Fuse Bar + Smart Marketing Objectives

2709 words - 11 pages

PEST analysisI shall now carry out a PEST analysis for my product (Fuse bar). I will look at the political, economical, social and technological factors regarding my product.PoliticalAdvertising restrictionsThere are advertising restrictions which will prevent Cadbury from doing certain things. Cadbury will not be allowed to swear, nor will they be allowed to say anything that is offensive to any one.The competition act (1998)This allows the competition commission to investigate on any company whenever they feel it is appropriate. The competition commission can check to see weather there are any cartels taking place or any other form of un-fair play. The competition commission will prevent Cadbury from achieving the maximum amount of profit as possible as they might start to investigate into the Cadbury business to see if there is any unfair play if Cadbury do very well.The sales of goods act (1979) and the sale and supply of goods act (1994)These two laws make sure that the product is how it is being described, for example, if the advert for Fuse showed that the Fuse bar had caramel then it would have to contain caramel in it. The products must also be fit for their purpose, for example, if the Fuse bar was designed to be a filling chocolate then it would have to be a filling chocolate. Both of these factors will affect the business as Cadbury will have to make sure that every Fuse bar is made the same and that every bar is almost identical to the one being described on the wrapper or advertisement. This will reduce Cadbury's profits as they will have to dispose of the defect products which will waste time and money. If a customer receives a product that goes against these laws then the customer is entitled to a full refund which is bad for Cadbury because they will lose money from the product as they will have to give a full refund.EconomicalInterest ratesCadbury will have to pay interest on loans or outstanding debts they may have incurred to make the Fuse bar. The amount of interest that Cadbury pays depends on how high the interest rate is. For example if the interest rate is 10%, then Cadbury would have to pay 10% extra for on their loan. This is bad for Cadbury as they will not be able to enjoy all of their profits as they will have to give some of their profits away to pay for the interest added on the their repayments. Another problem is that the interest rates are always changing, this is bad for Cadbury as they don't know how much they will have to pay. If hyper inflation occurs then the interest rates will shoot up, Cadbury will then be expected to pay the amount due which will eat into their profits. If Cadbury cannot pay up then they might have to take out a loan which will further reduce their profits as they will be expected to pay it back with a little money on top as the bank also charges interest when they give out loans.When people have less money they normally cut back on luxury products,Cadbury is a luxury product therefore...

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