PESTEL Analysis Kraft Foods Inc. Essay

PESTEL ANALYSISThe PESTEL framework categorises environmental influences into six main types political, economic, social, technological, environmental and legal. Thus PESTEL provides a comprehensive list of influences on the possible success or failure 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 and state laws in the United States, taking into account that it has manufacturing facilities in approximately 70 countries and a presence in 170 countries worldwide. Another factor is that the UK government took a decision to increase value added tax up to 20% that its previous level of 17.5% in January 2011 this can negatively the profits made in the UK (HMRC, 2010 The Guardian, 2010).EconomicKraft Foods Inc. products are made with fresh unprocessed materials such as sugar, corn, grains, and coffee therefore, the price unpredictability can affect the profit ability of the company. Given the economic uncertainty this has reduced the spending power of consumers. The boilersuit operation of Kraft Foods Inc. is wide and large, however there are negative impacts on the company for example the exchange rates, fluctuations in currency can beat an impact on the companys earnings.SocialThe world is leaning towards being more health conscious therefore, consumers are looking for the more thinking(a) option. This social pattern has provided the company in entering new and emerging markets where consumers are willing to spend more.TechnologicalIn recent years engine room has advanced to help companies to reduce carbon-dioxide emission to protect the environment. Kraft Foods has adopted a course of action to assist with this cause. The company is investing innanoengineering (Kraft Foods, 2010).environmentalThere are constant pressure from the Government and public agencies about the way in which companies operate and its impact on the environmen t. The use of new technology would assist with this problem.LegalThe highly rigid and competitive industry 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.