In this task, I will describe the external influences of CTB that might be concerned, analyse ways in which CTB might successfully respond to a key external influence and make recommendations on way in which CTB might successfully adapt its activities in light of a key external influence. External influences The external influences that affect CTB are political issues, economic variables, social issues, technological issues, Environment issues and legal issues. This is called PESTEL analysis. Crisis management The crisis management are making contingency plans in case of disasters and crisis.
Some examples of crisis are: computer failure, scandal and terrorist attack. The government might increase the tax on businesses; this is called 'corporation tax' and means Cadburys will have to pay more money to the government. Interest rates on Cadburys The high interest rates are bad for exporters. This makes more expensive for foreign countries to buy goods exported from the UK and cheaper for UK consumers to buy products. How consumer confidence affects Cadburys? The consumer confidence affects Cadburys by the amount of consumers spend.
Cadburys must do sales promotions to solve this situation. Social issues The social issue at Cadburys includes health concerns. How health concerns affect Cadburys? * People might start eating less chocolate due to health concerns and increases in medical problems like obesity and diabetes. Environment issues People are becoming more and more concerned about our planet and the effects that business activities are having on the environment. Consumers are changing their buying decisions. More and more people are buying "environmentally friendly" products.
In response, many firms like Cadburys are changing their products and packaging to become more environmentally friendly. Taking environment issues seriously can give firms a competitive advantage – a caring "green image" can attract new customers and increase sales. Technology Computer technology has had a major impact on the way Cadburys is organised – both in making products and in communicating information. How using CAD/CAM benefits Cadburys? The benefits of CAD/CAM are that design and manufacture can be carried out quickly and with great accuracy – both quality and productivity should improve.
Also the problems resulting from human error are minimised – robots are more reliable. Cadburys can buy new machines, which help them make better chocolate. Advances in technology can lead to less work to people – technological unemployment. Changing Legislation The changing legislation includes employment laws and discrimination, health and safety laws and consumer protection. Cadburys employments policies must be regularly updated and the health and safety aspects must be regularly checked. Finally, Cadburys must consider laws protect people when buying goods and services.