PESTEL Analysis Kraft Foods Inc. Essay

PESTEL compendiumThe 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 trial of particular strategies. (G. Johnson, R. Whittington, K. Scholes (2011) 50).PoliticalRelating to the protection of the environment Kraft Foods Inc. is subject to non-homogeneous 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. other factor is that the UK government took a decision to increase value added task up to 20% that its previous level of 17.5% in January 2011 this can negatively the profits do in the UK (HMRC, 2010 The Guardian, 2010).EconomicKraft Foods Inc. products are made with fresh raw materials such as sugar, corn, grains, and coffee therefore, the price whimsey can affect the profitabilit y of the come with. Given the economic uncertainty this has cut the spending power of consumers. The overall operation of Kraft Foods Inc. is wide and large, thus far there are negative impacts on the company for example the counterchange rates, fluctuations in currency can have an impact on the companys earnings.SocialThe world is leaning towards being more health conscious therefore, consumers are looking for the more healthy option. This social precedent has provided the company in entering forward-looking and emerging markets where consumers are automatic to spend more.TechnologicalIn recent years technology has march on 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 in nanotechnology (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 environment. The use of new technology would assist with this problem.LegalThe highly rigid and competitive fabrication is threatened by the inherent risks arising out of legal actions and failure to agree with laws and policies could affect sales and create consumer skepticism.