Unit 1: Assignment 2
The effects of the environment on a business
The current corporation tax is 25%.
P High rate of Sugar tax.
As the UK government have decided to leave the EU, Brexit has been responsible for
Cadburys struggles of free trade in the European Union, it is now more difficult and
more expensive to do business with the EU. VAT is also added at 20%, which is the
UKs top rate. Cadbury is an international company; they must recognise trade policies
that can affect their supply chain and distribution.
Inflation has forced Cadbury to reduce their product sizes, but the price remains the
E same, therefore, the value for money is reduced for the customers. As the pound has
weekended, Cadbury has an increase in imported goods and services. Due to this, it
will be more expensive and affects the profits. When a country is struggling
economically, for instance the UK with high inflation rates, the customers would have
seen a decrease in their disposable incomes. Therefore, customers have less to spend
on non-essential products such as chocolates. In addition, with customers having
lower disposable income, they are likely to not purchase Cadbury products due to
expensive prices on essential items such as food, rent, mortgage and energy bills.
With a global market, customers can have concerns about the increase in child obesity
S therefore, Cadbury can see a decrease in sales affecting their profits. Also, there is a
global trend in healthier eating, “clean eating,” Cadbury must be able to adapt to
customer preferences and changes as they may no longer be interested in Sugary
products. Therefore, Cadbury must have innovative products with low sugar, no added
sugar and organic options. With an increase of customer concerns on the environment
and sustainability, Cadbury has a responsibility to commit in benefiting the
environment rather than negatively affecting it. The company's commitment to this
can affect their brand image and reputation.
Technology has significantly advanced over the years, Cadbury has improved their
T production and manufacturing process which leads to more productivity in product
making and reducing costs. Technology has aided Cadbury in digital marketing tools
through creating more efficient and personalised promotion. It also helps Cadbury in
researching customer behaviours and applying them to their marketing strategies. As
Cadbury is a big business, they have a huge carbon footprint, technology can support
Cadbury in creating sustainable packaging that is more efficient which leads to
reduced costs. Product innovation can help Cadbury in creating more longer shelf-life
products and unique flavours, attracting customers.
