Using The Macro External Environment Analysis

Using The Macro External Environment Analysis Macro external environment here includes the factors such as issues related to politics, economical reforms and achievements, social behaviour, technological enhancements and inventions, environmental changes and environmental concerns and legislation and legislative changes. All these factors bear a significant effect on any industry and business. A business has take into consideration all such effects and then formulate its strategies and policies to work along with them and prosper. PESTEL analysis tool helps in determining the effect of all such factors on an industry and businesses. With the help of PESTEL analysis we will be seeing the affects of such factors on Indian Bakery and Dairy Industry. PESTEL analysis is a technique for identifying and listing the political, economic, social, technological, environmental and legal factors in the general environment most relevant to an organisation. (Boddy, D (2005). Management An Intoduction. 3rd ed. UK: Pearson Education. 88.) Type of Factors Effecting Factors Political Economical Social Technological Environmental Legal Exemption on Customs on Sugar Raw Material Import Shortage of Milk Need for Healthy Eating Habits Cloning of Livestock Change in the Climatic Conditions Raising the Norms for the Probiotic Food VAT on Biscuits Rise in Sugar Production and Duty Free Sugar Imports Problems with Cloned Livestock New Age Packaging Removal of Import Duty on Dairy Products Globalization Incentives to Build Cold Storage Facilities Requirement for Logistics Political Exemption on Customs Duty on Sugar Raw Material Import Due to the shortage in the production of sugar the deadline for the exemption on customs duty on raw sugar imports has been extended by the government to April 1, 2011 (Dey, A Jha, Dilip K (2010) Duty-free sugar imports extended till April 2011, Business Standard). Since sugar is a major input in the bakery, the price of sugar highly influences the price of inputs of the bakery industry. Exemption on customs duty will help in purchasing sugar at lower cost, which in turn will control the cost of production. VAT on Biscuits The VAT of 12.5% on Biscuits, being the only processed food item to attract such high VAT rates, will affect the pricing of the product (Bhushan, R (2009) Biscuit prices to rise by 10%, The Economic Times). Price of the biscuits might need to be increased due to the high VAT rates which may result in switch of brands due to the highly competitive market. Removal of Import Duty on Dairy Products The whole-sale price based inflation indicates that the milk prices have moved up by 14.73% over the last year. Worried about the rising prices government announced the removal of duty on Skimmed Milk Powder (SMP) and other dairy products (Govt removes import duty on dairy products (2010), Business Standard). The imports at cheaper rate would help in reduce the cost factor for dairy products. Incentives to Build Cold Storage Facilities Wastage of food items due to lack of cold storage facilities lead to a loss of Rs. 500 billion every year. The government announces schemes and incentives to attract investments in cold storage warehousing (Union Budget 2010: Cold-storage incentives to attract fresh funds (2010), The Economic Times). Increase in the number of cold storage facilities would help in preserving products better and reduce the wastage cost. Economical Shortage of Milk Even though the milk production has risen by 4.6% compound annual average growth rate, it still cannot match up with the increasing demand. The demand for milk has been growing at a faster rate than the growth rate of milk production resulting in the shortage of milk supply (Milk output would stagnate (2010) The Economic Times). India cannot meet its expected demand if the demand and supply rise at the same rate. For the same the reason, the milk prices are on a constant rise. Price of milk increased by 12.6% to 13.6% (Goyal, K (2010) Indias Food-Price Inflation Holds Near 11-Year High- Business Week). This can cause an increase in the input cost for the dairy products and which in turn can lead to hike in price or lower profit margins. If the company increases the price of its products, it may affect the sales as it might lose on consumers. Rise in Sugar Production and Duty Free Sugar Imports The total sugar production in the first six months ending September 2010 is expected to be 22% more than the output in the unchanged phase last season, the total production expected is at 16.7 million (Press Trust India (PTI) (2010) Sugar output rises 22% in first half of 2009-10, Business Standard). Due to the shortage in the production of sugar the deadline for the exemption on customs duty on raw sugar imports has been extended by the government to April 1, 2011 (Dey, A Jha, Dilip K (2010) Duty-free sugar imports extended till April 2011, Business Standard). The increase in sugar production and the duty exemption on raw sugar can help in purchasing sugar at lower prices and this in turn can help in producing goods at lower prices. Globalization Globalization a universal phenomenon is affecting each and every industry. The world is coming closer, the communication gap is closing and the businesses are going global. This can serve as an opportunity to expand the business to a global level but on the other hand there is a threat of new entrants from international market. Requirements for Logistics Logistics in India suffer due to the poor infrastructure and other limitations. There is a high demand for sophisticated third party logistics so the domestic logistics service providers are trying to improve their service. International participation is also expected in the logistics industry (Pandey, S Basu, A (2010) Logistics cos ramp up supply chain to meet rising demand, The Economic Times). Sophiscticated logistics system will help in proper supply chain management and on time delivery of goods, which help in maintaining the shelf life of goods on meeting the demand on time. Social Need for Healthy Eating Habits Studies say that Indians are more prone to Coronary Artery Disease (CAD), which is the major independent risk factor causing Cardiovascular diseases, due to the smaller calibred arteries found in Indians (Isalkar, U (2009) Indians more prone to heart disease, The Times of India). This suggests that Indians should move towards more healthy food and diet. This could be a new area to explore for Britannia with its new health associated products like Nuti-Choice biscuits and Actimind flavoured milk. Problems with Cloned Livestock Cloned animals are supposed to be suffering from large-offspring syndrome. The mother cows face a problem in giving birth to the cloned animals as they are larger than normal. Also these cloned animals suffer from health issues (Gogoi, P (2007) The case against cloning, BusinessWeek). It is morally wrong to clone animals as they cause problems to the mother during the birth and moreover the cloned livestock suffer from health issues which might make unsafe to consume the produce from them. Technological Cloning of Livestock India, a late entrant in cloning research, is now moving with a great pace in cloning technology. Hand guided cloning technique, a technique very different from the conservative cloning practice has been a successful venture (Mahalakshmi, BV Chowdhary, S (2009) Cloning Glory, The Financial Express). New Age Packaging The new packaging systems help in protecting food from micro-organisms by creating shelter layer. It uses new technologies like oxygen scavenging function, atmosphere control, biodegrability etc. and is low cost (Han, J Packaging Innovations, Bakers Journal). The packaging technology helps in preserving food for longer by protecting them from micro-organisms with the help of new technologies, thus resulting in longer shelf life of the food. The advantage of low cost packing and longer shelf life could be very beneficial for the company in increasing its profit margin. Environmental Change in the Climatic Conditions Climate plays an important role in the agriculture process. The change in the rainfall pattern has been a matter of concern now in India. The agriculture sector in areas which are monsoon dependent suffered badly due to the change in the rainfall pattern. The sector suffered a huge loss in terms of total output (Bhosale, J (2009) Farmers worried over climate disturbances, The Economic Times). The loss in crop will affect the input supply and this might delay or cause problems in the production. So the industry might not be able to meet the demands resulting in the loss of customers. Legal Raising the Norms for the Probiotic Food There is a need for setting the standards for probiotic food. Clinical tests should be conducted on the probiotic foods before they could reach the market for sale. The Indian Council of Medical and Research has submitted the proposal for the same to the government (Das, S (2009) Probiotic food likely to come under clinical trial ambit, The Financial Express). Strict norms will help in raising the quality standards but on the other hand the cost and time of production might subsequently increase. Micro External Environment Analysis Factors that influence the micro external environment are Competitor Rivalry, Threat of New Entrants, Threat of Substitutes, Buyers Power and Suppliers Power. These factors play a vital role in determining the current situation of the business and to plan strategies accordingly. With the help Porters Five Forces we will be analysing these factors and their immediate effect on the company. Five forces analysis is a technique for identifying and listing those aspects of the five forces most relevant to the profitability of an organisation at that time. (Boddy, D (2005). Management An Intoduction. 3rd ed. UK: Pearson Education. 83.) Competitor Rivalry: BIL has a market share of 38% and has been growing at 27%, compared to the industry growth rate of 20% (Saxena, R (2007) Battle-scarred Britannia on expansion spree, Business Standard) and has many competitors based on the nature of product. Parle and ITC (Sunfeast) pose a great competition to BIL (Biscuit Industry: India (2010), Market Research India). BIL earning major of its income from the biscuits (Britannia Annual Report 2007-08 (2008)), and Parle and ITC are the other major players in biscuit market. BIL is also into the production of dairy products, where the two major players in market are Amul and Nestle. Amul is the leader in the dairy industry. There is also a high level of competition from the unorganised baking sector. Overall rivalry is high. Threat of New Entrants: The entry on a small scale dairy industry and in the unorganised baking sector is easy. But on the other hand to enter the large scale dairy industry and organised baking sector a huge amount of investment is required in terms acquiring assets and to establish supply and distribution chains. Government regulations pertaining to food norms and others may also seem to be unattractive. Looking at the latest trends, the bakery industry is expected to earn huge revenues which might attract new entrants (Vijay, N (2008) Indian Bakery sector foresees high growth and increasing interest in product offering, FnBNews.com). So the threat of new entrants is moderate. Threat of Substitutes: Savoury snacks, crisps, cereals, fruits and other fast food can be substituted for biscuits. Dairy products are dubious to be replacing with other products as they key ingredients of majority of peoples diet. So the threat is a very moderate threat of substitutes. Buyers Power: The buyers of these products could be a retailer or the consumer. Both the dairy and bakery industry are price sensitive, so a little increase in price might lead the consumer to shift other brand or product. So the buyers power is calculated to be very strong. Suppliers Power: The major supplies for a bakery industry include wheat, sugar and other agriculture products. And the major supplies for dairy product is milk. Its difficult to bargain with the suppliers of the above mentioned inputs as the price of these inputs is majorly influenced by the production of these inputs. The prices tend to be high as the demand for these products is rising at much faster rate than supply. The secondary supplies include the packaging material. The secondary supplies can be easily substituted with the low-cost ones to save on cost. Overall the suppliers power is assessed to be moderate. Conclusion of Five Forces Analysis: There is an existence of major players in the market with a moderate level of threat of new entrants and substitutes. The suppliers power is moderate but the buyers power is measured to be strong. So the rivalry is suggested to be high. Stakeholders and Corporate Social Responsibilities (CSR) Freedman (1984) defines a stakeholder as any individual or group who can affect, or is affected by, the achievement of the organisations objectives. Further in addition to that, Clarkson (1995), stated that the government and the other communities that effect the working of the business and the market also form as a part of stakeholders. Stakeholders, except the employees, have a high power over the strategic change ideas (Hayes, J (2007). The Theory and Practice of Change Management. 2nd ed. UK: Palgrave Macmillan. 153). Internal Stakeholders The internal stakeholders are the ones associated with the company internally. For BIL its internal stakeholders would be: The Shareholders The Board of Directors, and The Employees Currently, nearly 51% of shares are held by Corporate Bodies and the rest 49% is held by the public (Statement showing shareholding pattern (2009), Britannia Industries Limited). The board consists of 11 members (Company Overview, Britannia Industries Limited) and employees nearly 2000 people (Britannia Industries Ltd. Overview, MarketLine). External Stakeholders The external stakeholders are the ones who are not immediately associated with company but influence the decision making of the company. To BIL the external stakeholders are as follows: Customers Suppliers Contractors Government Regulatory Agenices (like Food Safety and Standards Authority of India, etc.), and Society Britannia being the leader in the baker industry of India has a huge amount of customers to cater. Britannia has to keep up the tastes and quality preferences of its customers. The government plays an important in influencing the market by creating and changing the policies. BIL has to adhere to the rules and regulations formulated by the regulatory agencies. The suppliers and contractors form an important part of a business. Britannia completely relies on its suppliers and contractors for its raw materials. Corporate Social Responsibility (CSR) For years corporate entities followed the practice of providing goods and services and maximizing wealth. But the trends have changed over the period of years. The companies are now expected to be more socially responsible. The company now has to be responsible to the stakeholders, society and environment. They are expected to pay back to the environment and society for all the affects that are caused due to its operations (Idowu, S Filho, W (2009) Global Practices of Corporate Social Responsibility. Berlin: Springer. 1-2). BIL believes in working with the society and the culture. It gives a premier importance to the nation and its policies. It believes in being a good corporate citizen by not just adhering to the rules and regulations but also by helping the community to improve the quality of life. BIL involves itself in initiating and providing support to community health and family welfare, water management, vocational training, educating people and encouraging the application of modern techniques and technologies. BIL believes in ethical behaviour.

The Importance of Man’s First Landing on the Moon

Case Study Latin America and the Catholic Church Malaika Nicholson DeVry University Pope John Paul II visited Nicaragua in 1983. His visit was a response to rumors regarding an alliance that was developing between Marxists revolutionaries and priests that was beginning to emerge in Latin America. The Catholic Church historically was strongly against communism. Therefore, these alliances that were emerging between priests and revolutionaries were troublesome to Pope John Paul.Even though the priest denied doing anything wrong, but instead were only doing the will of God and what Christ, himself would do in taking interest in the poor. News of Pope John Paul’s II upcoming visit created hope among reform minded Catholics. Not knowing exactly how, they hoped he would lend his support for the revolutionary case. Because the Pope as well as the Catholic Church did not support the principles the Marxist held regarding Liberation Theology, the people hoped that if nothing else, he wou ld offer words of compassion and support.There were thousands of Nicaraguans who died and suffered by the oppressive regime and were in desperate need for hope . They hoped that the gap between the people and church could be repaired and that economic and social changes could become a reality. The Pope’s visit would come during the time that the country was in major lack due to governmental corruption. Reform minded Catholic in Nicaragua had high hope that he would speak out on behalf of the people. The position the pope took led to disappointment by Nicaraguan Catholics because he did not focus on political reform in his speech.They had anticipated him to serve as a catalyst in social and political reform by publically supporting their cause. Instead, Pope John Paul II expressed the civic duty by Nicaraguan priests to help the less fortunate and to be good examples to the rest of society. The people of Nicaragua became painfully aware that the pope was not going to support t heir revolutionary cause during his visit. During his visit he did express his extreme disapproval to liberation Theology encouraging people to abandon their ideological commitments in reference to his views on mingling of Marxist values withChristianity. Pope John Paul II wanted to emphasize the importance of not compromising Christian views of God at the center of all things with Sandinistas ideals of Humanism. The Pope’s visit was an event of great significance; some say even leading to the Nicaraguan Civil War. His visit also intensified tension between Sandinistas and Nicaraguan Catholics who supported them. Pope John Paul’s II visit also fueled rebel groups (Contras) as a form of propaganda, supporting their cause by giving them more legitimacy.

Eymp3-5.4 Describe Methods of Educating Children

EYMP3-5. 4 Describe methods of educating children and adults in effective food management. It is now accepted that just putting healthy food down on a plate in front of children is not always the best way to help them eat healthy. There are other ways involved in food management. It is important for carer and for parents to understand how much food a child actually needs over the course of a day. Too much food can cause overweight for children even if it is ‘healthy’, similarly, to lacking food intake can cause children to be underweight.A good plan to help parents know how much food should be given to children is to prepare a table or chart sample for each day’s food and work out its overall calorie content using food labels. It’s helpful to see how much food children of different ages may require rather than just being told how many calories they need. It is also important for carer to be aware that ‘healthy drinks’ such as smoothies and frui t juices can be high in calories and so should be limited.It is now thought helpful for parents to be advised early by professionals to notice if that their children are either under- or overweight. Interestingly, few parents notice that that their young children are becoming overweight or underweight and often don’t realize it because of the way they think about how cuddly their child are. Parents of children over 3 years old need to realise that children should begin to look quite slim and by the age of 4 years the healthy profile of children is that they should look lean.There are now plenty of websites and leaflets from variety of organisations that can help parents understand what healthy weight is for their children. Using that website to identify if their children’s weight is not at the expected level for their height, it is also important that young children are not made aware of any problems as this can lead to emotional issues with food later in life.Ideally, food should be enjoyable for children and the environment should be comfortable when its meal times, where the focus is not only on food intake. Unfortunately for some children and their families, food can become a battleground and as a result a child may develop an issues relating to eating food such as food phobia. That’s why many children decided to eat specific food that they prefer and may not try out new foods. Therefore, carer and parents need to watch out for children who are becoming distressed by food.We also need to look out for children who are becoming worried about what they eat, as some dieticians have expressed worries that children are picking up adult concerns about being overweight. If you notice that child seems to have a hard time with food, it will be important to stay relaxed and not create a tense atmosphere. You can try giving food differently or include children in food preparation. If a this method does not work and parents report that they are als o having difficulties, it will be worth parents getting some professional help via their GP.

Puritans Influence On Today s Society - 1599 Words

Today, people describe the Puritans with their biased point of view. It is not unfathomable why people do not like the Puritans. The Puritans’ society and today’s society are very different. Puritan society was very restrained; people could only believe in God and the Bible was the law. Unlike Puritan society, today’s society does not restrain religion. Even though Puritans had bad influences on today’s society, Puritans played a pivotal role in constructing the USA. If you look around more carefully, you will easily realize that some things that you took for granted were actually influenced by the Puritans, and they are very significant and necessary to today’s society. The Puritans’ influences on today’s United States are found in the areas of economy, government, education, church, and social mores. The Puritans’ influences on the economy are very palpable. On the US dollar you can clearly see the statement â€Å"In God we t rust.† Money is the most significant tool in an economy; therefore, a statement about God on the money of the USA accentuates the Puritans’ role in determining the economy of the United States. Today, people recommend frugality. Even people like Bill Gates, Carlos Slim, and Warren Buffet do not use their money prodigally. Bill Gates, the richest man in the world, only has $100,000 car; Carlos Slim, the second richest man in the world is known for his stinginess – he even checks how much he spent for his socks; lastly, Warren Buffet, the third richest manShow MoreRelatedWhy Puritans Have A Lasting Influence On American Society And Culture Of The United States1075 Words   |  5 Pagesthough Puritan society was largely unsuccessful in meeting their expectations, several of their fundamental values are still demonstrated by Americans today. 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