This is a completed assignment 2 for Unit 1 Btec Business Level 3. All my units have been marked at distinction level. Following this as a guideline you will achieve the same. *DO NOT COPY* It includes learning aims C and D including P4, P5, P6, M3, M4, D2, D3. *BUNDLES AVAILABLE FOR ENTIRE UNIT 1*...
Centre Number: Candidate number: Name:
Unit 1 Exploring Business
Assignment Title: The effects of the environment on a business
C: Examine the Environment in which businesses operate.
D: Examine business markets.
Cadbury
Mondelez
,Centre Number: Candidate number: Name:
Unit 1 Exploring business
Assignment Title: The effects of the environment on a business
C: Examine the Environment in which businesses operate.
D: Examine business markets.
Contents:
Introduction:......................................................................................................................5
Brexit and the Government...............................................................................................................5
Sugar tax............................................................................................................................................6
HR Policy and Taxes...........................................................................................................................8
Grants and support...........................................................................................................................8
War and conflict................................................................................................................................9
Government....................................................................................................................................10
Taxes...............................................................................................................................................11
Employees and Economic Growth...................................................................................................12
Interest............................................................................................................................................13
Inflation...........................................................................................................................................13
Exchange Rates................................................................................................................................15
The Business Cycle...........................................................................................................................17
Unemployment...............................................................................................................................18
Savings.............................................................................................................................................18
Debts...............................................................................................................................................19
Ageing population...........................................................................................................................20
Technological:..................................................................................................................21
Technology......................................................................................................................................21
Online Purchases.............................................................................................................................22
Social Media....................................................................................................................................22
Legal:...............................................................................................................................23
‘Glass and a Half’.............................................................................................................................24
Social Costs and the Environment...................................................................................................25
Ethics and the Environment............................................................................................................25
Social Benefits and the Environment...............................................................................................25
Production of cocoa beans and the Effects of It..............................................................................26
Reducing wasteful usage.................................................................................................................26
Coca Life Sustainability Programme................................................................................................27
Corporate Culture:............................................................................................................28
Cooperate social Responsibilities:.....................................................................................28
2
,Centre Number: Candidate number: Name:
Unit 1 Exploring business
Assignment Title: The effects of the environment on a business
C: Examine the Environment in which businesses operate.
D: Examine business markets.
Business Ethics:.................................................................................................................29
SWOT:..............................................................................................................................30
Strength...........................................................................................................................................30
Weakness........................................................................................................................................30
Opportunities..................................................................................................................................31
Threats............................................................................................................................................31
Five C’s Analysis:...............................................................................................................32
Company.........................................................................................................................................32
Customers.......................................................................................................................................32
Competitors.....................................................................................................................................33
Collaborations.................................................................................................................................34
Climate:...........................................................................................................................................34
Porters Five Forces:...........................................................................................................35
Threat of New Entrants:..................................................................................................................35
Bargaining Power of suppliers:........................................................................................................35
Bargaining Power of customers:......................................................................................................36
Threat of substitute products:.........................................................................................................36
Intense Rivalry:................................................................................................................................36
Evaluation:.......................................................................................................................36
Market Structure:.............................................................................................................37
Oligopoly.........................................................................................................................................37
Demand and Price:...........................................................................................................37
Price Elasticity:................................................................................................................................37
Substitutes:......................................................................................................................................38
GDP:................................................................................................................................................38
Needs/ Aspirations of Consumers:..................................................................................................38
Competition:....................................................................................................................................39
Incomes:..........................................................................................................................................39
Marketing:.......................................................................................................................................39
External Factors:..............................................................................................................................40
Supply:.............................................................................................................................41
Availability of Raw Materials and Labour:.......................................................................................41
Logistics:..........................................................................................................................................41
3
,Centre Number: Candidate number: Name:
Unit 1 Exploring business
Assignment Title: The effects of the environment on a business
C: Examine the Environment in which businesses operate.
D: Examine business markets.
Ability to Produce Profitability:.......................................................................................................42
Government Support:......................................................................................................................42
Rise in Cocoa prices:........................................................................................................................43
Takeover from Kraft/ Mondelez:.....................................................................................................43
Increase in Demand for Fairtrade/ Organic.....................................................................................44
Future Trends:..................................................................................................................44
Increase in Competition:.................................................................................................................44
A Drop in Demand:..........................................................................................................................45
Cost Increase of Cocoa:...................................................................................................................45
Increased Legislation on Environment:...........................................................................................46
Increased Desire for Ethical Businesses:..........................................................................................46
Evaluation:.......................................................................................................................46
Bibliography:....................................................................................................................48
4
, Centre Number: Candidate number: Name:
Unit 1 Exploring business
Assignment Title: The effects of the environment on a business
C: Examine the Environment in which businesses operate.
D: Examine business markets.
Cadbury Mondelez
Introduction:
In this report I will be looking at Cadbury and examining the effects of the environment on the
business. Cadbury Mondelez is a British multinational confectionary company that is owned by
Mondelez International. Cadbury Mondelez is well known for its chocolate ‘Dairy Milk’ and ‘crème
egg’. It is claimed that Cadbury chocolate is amongst the worlds best-selling brands with more than
$3 billion in net revenues in 2016 according to Mondelez International. Cadbury was first founded in
Birmingham in 1824 and since then they have been ‘inventing, inspiring and investing in a nation of
chocolate lovers for nearly 200 years.’ Moreover approximately 350 million bars of Dairy Milk are
sold every year, which is almost one million per year. They are amongst the top 10 chocolate
manufacturers which makes them well known amongst chocolate buyers. Cadbury is a global
corporation that produces confectionaries such as chocolates, biscuits cakes, etc. It operates in over
50 countries worldwide with its headquarters in London.
The external environment impacts how businesses run and this is due to many factors. Businesses
analyse how they will be successful or unsuccessful by
taking these factors into considerations.
Revenue of leading confectionery manufacturers based on sales in
the United Kingdom (UK) in 2016* (in million GBP) by Statista
Research Department,last edited Jun 13, 2016
External Influences:
Political: Political factors relate to the government or the
public affairs of a country.
Brexit and the Government
The current political party in power is the conservatives with Boris Johnson leading the Brexit deal.
Brexit has a massive impact on Cadbury as because of Brexit Cadbury may have to raise its prices or
shrink the size of its products. Cadbury may have to increase its price as the pound becomes weaker.
Once the pound becomes weaker the exchange rate becomes weaker and they have to pay more
the same quantity of coco beans. As Cadbury’s may have to shrink the size of its products this could
lead to unsatisfied customers as they are no longer receiving the usual product, they have been
receiving over the past years. This sudden change can have a negative impact causing customers to
5
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