PESTEL Analysis Kraft Foods Inc. Essay

PESTEL ANALYSISThe PESTEL framework categorises surroundal influences into six main types political, economic, social, technological, environmental and legal. and then PESTEL provides a comprehensive list of influences on the possible success or harm of particular strategies. (G. Johnson, R. Whittington, K. Scholes (2011) 50).PoliticalRelating to the protection of the environment kraft Foods Inc. is subject to various federal official and state laws in the United States, taking into account that it has manufacturing facilities in approximately 70 countries and a presence in one hundred seventy countries institutionwide. Another factor is that the UK government took a decision to increase value added tax up to 20% that its previous take aim of 17.5% in January 2011 this can negatively the internet made in the UK (HMRC, 2010 The Guardian, 2010).EconomicKraft Foods Inc. products are made with fresh gross materials such as sugar, corn, grains, and coffee at that placefore, the wrong unpredictability can guess the favourableness of the confederation. Given the economic uncertainty this has cut back the spending power of consumers. The overall cognitive process of Kraft Foods Inc. is wide and large, however there are negative impacts on the beau monde for example the exchange rates, fluctuations in up-to-dateness can have an impact on the partys earnings.SocialThe world is leaning towards being much wellness conscious therefore, consumers are looking for the more healthy option. This social pattern has provided the company in entering new and appear markets where consumers are willing to spend more.technicalIn recent years technology has advanced to help companies to reduce carbon-dioxide firing off to protect the environment. Kraft Foods has adopted a course of action to assist with this ca physical exercise. The company is investing innanotechnology (Kraft Foods, 2010).Environmental on that point are constant pressure from the regime and publ ic agencies ab let on the way in which companies operate and its impact on the environment. The use of new technology would assist with this problem. legalThe highly rigid and competitive diligence is threatened by the inherent risks arising out of legal actions and failure to comply with laws and policies could affect sales and create consumer skepticism.