Explain PESTLE Analysis for Cadbury.
PESTLE Analysis for Cadbury
One of the most useful tool for understanding the growth and decline of market is the PEST Analysis. It is basically a measurement tool for business. PEST is a short form for Political, Economic, Social and Technological factors. This factor in turn helps to assess the market for a trade or a managerial unit. It is very easy to complete a PEST Analysis. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. 2012).
(Source: Academy, 2016)
Cadbury is identical with the consumption of chocolate on a universal basis. The first Cadbury shop was opened in the early 19th century. Since that point of time, Cadbury had emerged as one of the global brand. Most of its factories are located in the United Kingdom as well as Asia and North America. In the year 2008, the brand of Schweppes was put up for sale to the Dr Pepper Group, and in the year 2010, Cadbury was obtained by Kraft foods located in the US. The following is the PEST Analysis for Cadbury (Mahara 2013).
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Political – the procedure of Cadbury in the UK was determined by the change in the government from Labor Party to the Traditional Democrat. As per the last report, more than 3000 employees were hired by the eight Cadbury industrial units in the UK. However, the rigorous limitations on the entry of accomplished workers from rest of Europe can have an effect on employing decisions of Cadbury in the future.
Another political factor that determines the investment and imbursement to shareholders are by the imposition of tax. In the year 2010, the value added tax rose by 2.5 percent. This in turn increased the price of chocolate and reduced their sales. In the year 2007, the Cadbury Schweppes made a decision to subcontract foremost portion of its accounting and Human Resources to an Indian firm as it was facing a progressively more operational fixed cost (Babatunde and Adebisi 2012).
Economic – the sales of Cadbury was quite stable in spite of facing a worldwide monetary downturn. Cadbury was also able to add an increase of 30 percent in its yearly income from Dairy Milk and Trident. In the year 2009, recession was at its peak the corporation was able to hit the lower end of its 4-6 percent income (Modi 2013).
Social – Cadbury was generally born due to the social factors. Being operated by a Quaker family, their resistance to alcohol provided as the base of organization of a trade that sold tea, coffee, cocoa, and liquid chocolate. The products of Cadbury which included chocolate and other goods were accepted wholly all over the world. However, Cadbury got trapped in a recent controversy which stated that the products of Cadbury are halal certified and are catering to the needs of the Muslims.
As a result, this anxiety resulted in the rising case of corpulence especially among the children. It was thus recommended by many nutritionists to reduce the consumption of chocolate and toffee. This in turn affected the sale of Cadbury.
Technology – the production and the procedures of packing of Cadbury changed due to the innovation of technology. This has started with the introduction of new brew machinery which is used to merge coffees and cocoa grains.
(Source: Markedbyteachers.com, 2016)
Legal – the legal framework is defined at the local, regional, national level. The legal standards are included that affects the lawful principles that affect the company’s operating in the region incorporating legal rules of business governance, taxation and legal responsibility of producers.
– the environmental
concerns related to Cadbury are the dairy processing that includes consumption of energy as well as usage of water and waste as well as the packaging manufacture. The environmental impact of the Cadbury industry includes a variety of schemes and programs that helps in improving the environmental performances of the life cycle of Cadbury. As far as the environmental factors are concerned, in case of the Cadbury industry the main focus is given on the emission of the greenhouse gases as well power and water usage.
The following are the qualities that can make a leader effective:
Self assessment – the leaders who are effectual take stock of their personal strengths and inadequacies. If an individual is aware about their weaknesses it will not make them weak. However, it allows entrusting to others who possess those aptitudes in order to attain the common goals. Rather than adhering to the fake faith that they can do it all, effective leaders employ inhabitants who balance, rather than supplement, their abilities. Working on the area of weaknesses in turn helps to progress the leadership qualities.
Sharp awareness – effective leaders has the ability to perceive people. The effective leaders share an easy level of truthful communication with their team associates as well as their peers. They also look into the methodical understanding of how the communication is perceived. In order to become an effective leader it is very important get a feedback that will include the fact that an environment of honesty and open communication should be established. In the open communication, an effective leader can ask about their good qualities and the areas on which they need to progress (Siegel 2015).
Responsiveness to the need of the group – a leader can become effective if they are perspective in the sense they know the requirements of the team. A number of teams worth faith over creativity; others favor a clear conversationalist to a great manager. It is relatively to build a strong team if the values and the goal of an individual are known.
Commitment – an effective leader needs to set an example for the team if they want the team to perform productively as well as produce quality. An effective team leader earns the respect from its team if they are able to prove their commitment to the brand (Gibson and Weber 2015).
Power and Authority
Authority is the demonstration of power which subsists where one person has official right to control and another has the official compulsion to obey. This is normally understood a having the authority in order to direct as well as requires observance. Authority is normally seen as the institutionalized authority. Authority is generally earned by virtue of the leadership potentials of an individual as well as knowledge. An expert is generally referred to as the authority on a subject and others adjourn to his estimation (Martin 2015).
(Source: Slideshare.net, 2016)
Power and authority are potentially obligatory. Power is defined as the capability to act in ways which authorize the behaviors of others. It is an individual aptitude that can be developed. Power is that ability which gets others to do things. It is a quantify of personal efficiency. Power is generally earned and given by those who chase (Lake 2013).
Dysfunctional leaders may possess authority but they will not posses power. As a result, they mostly mistreat the authority thereby diminishing any probable individual power. The leaders who possess both power and authority are the effective leaders and they will only use the authority as a last option in order to attain goals (Lunenburg 2012).
Types of Authority
Legitimate – this type of authority is also known as the position power or bureaucrat authority that moves towards the leader when the association authority is established. It comes from the rules of the association. It gives the leader the authority to control the resources and to reward others. This authority is widely accepted s it is believed that discipline in the society is necessary.
Charismatic – it is also known as the authority of personality that comes from each leader separately. This is the authority of attraction or dedication, the wish of one person to have a high regard for another. The leaders possess an individual charisma, an air of self-assurance and a conviction in objectives that draws and holds followers. This in turn helps to understand and value the leader (Lamprou et al. 2013).
Expert – they are known as the authority of acquaintance that comes from dedicated learning. This in turn helps to get job done.
Reward – it rises from the ability of rewarding worthy behavior. The leader has the authority to give tangible rewards such s promotion and other similar rewards.
Coercive – this authority deals with the authority to give punishment such as dismissal, relegation and low rating. Mental punishments comprises of disapproval, avoidance, displeasure, satirical comments to the subordinate (Peters 2015).
Authority and Responsibility
The facts related to authority and responsibilities are as follows:
Authority without responsibility is a dictator - Authority without responsibility is a tyrant. If a leader gives authority without any responsibility in that case the leader is bumper from the rest of the staff which in turn gives the emotion of the penalties due to the actions taken.
Responsibility without authority is a tragedy – the leaders will start feeling aggravated if they do not have the authority to execute the plan. The leaders will in turn find themselves in the boundless cycle of desirable approvals (Duff 2013).
The leaders take responsibility in spite of giving authority – the leaders will take the responsibility in order to execute the actions of his or her team.
The leaders who are given accountability with authority will authorize with brilliance – this helps the leader to achieve the task while on condition that a clear vision of achievement is achieved (Oren 2013).
In order to provide insights of leadership, three models of leadership are developed. The models are as follows:
Star group leadership models – it advocates a strength based advance to leadership. The leaders balance and bring into line the strengths of the individuals with the help of teamwork as well as the focus on results. It also helps to provide clarity on what are the factors leaders are required to focus on (Zhu et al. 2015).
Leadership model related to style and focus – this mainly brings the together the STAR constituents with the method of leadership.
5 S Uncommon Leadership model – the five uncommon leadership includes seeing, shaping, showing, sharing and serving. Seeing involves having vision, shaping involves the creation of the culture and system. Showing is the able to reveal the kind of association by action. Serving mainly focus on the serving of the colleagues and the consumers. Lastly, sharing is the development and encouragement given to others.
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Zhu, W., Zheng, X., Riggio, R.E. and Zhang, X., 2015. 7 measurements of ethics-related leadership models, including ethical leadership, transformational leadership, authentic leadership, servant leadership, spiritual leadership, and a virtues-based approach to leadership ethics. The similarities and differences among these theoretical models and measures to ethics-related. Developing Ethical Leaders: New Directions for Student Leadership, Number 146, p.81.