Environmental Analysis Paper Essay Example | Topics and Well Written Essays - 1500 words

Environmental Analysis Paper - Essay ExampleThe Hershey attach to markets brands such as Hersheys Kisses, Ice Breakers, and Hersheys Reese among others. Also, it is the leader of the dark and premium chocolates such as Hersheys Extra Dark, Cacao Reserve, and Hersheys Special Dark. Other popular brands such as draw Duds, Payday, Kit Kat, and Almond Joy have tremendously contributed to the success of the company to achieve revenues of about half a dozen billion dollars (The Hersheys Company, 2012). Like other businesses in the world, the Hershey Company operates with business environment that is pre-disposed with business environmental promoters such as legal-political, socio-cultural, stinting, and technological factors. This paper will seek to conduct an environmental scan and economic analysis on Hersheys, including the remote, industry, and operating environments. Macroeconomic Forecast Macroeconomic forecast helps provide the consumers, businesses, and government with tuition necessary in making better decisions (Kew and Stredwick, 2009). The macroeconomic forecast indicators accept Hersheys in the time to come and are important that they are considered to be part of the strategic planning of the Company. Increasing GDP in America (though at a smaller rate) and in other countries where its products are sold is favorable in boosting the purchase of the products and increases the prospects of the Herseys success (McGuigan, et al., 2011). In the light of this, the strategic planning of Hersheys will let in considering increasing its supplies especially after global financial crisis has completely faded away. Also, reducing rate of unemployment widens the crime syndicate of people earning income and therefore increasing the number of people able to buy Hersheys products (Brenner, 2010). However, unemployment rates in some countries have remained constant or have soared therefore threatening to reduce sales of Hersheys products in those countries. Thus, He rsheys strategic planning will moderate supply in various markets ground on the prevailing unemployment rates (McMahon., 2008). In addition, inflation as a macroeconomic factor affects the Hersheys products presently and in the future. Increase in prices of commodities in various markets that Hersheys sells its products tend to affect the operation of the Company (McGuigan et al, 2011). The increase in the cost of production of other consumable commodities including sugar and chocolate confectionary products withstand the consumers to be cautious in their purchasing, as well as prompting them to focus more on basic commodities than on commodities that they consider to be luxurious (Brenner, 2010). The seemingly high inflation rates in most markets call for a strategy that meets all the market niches. For example, Herseys products can be case in quantities and prices that reflect the inflation rates of particular markets. Demand and disposable income is another macroeconomic fact or that affects the success of a company like Hersheys (Morden, 2007). Reduced demand and disposable income of consumers may affect the sales of Hersheys products in America and in countries where the Companys products are sold (McGuigan et al, 2011). Therefore, Herseys strategy should seek to enhance consumers demand and to package quantity and prices that reflect the disposable income of the targeted markets. Non- Economic Factors in the Remote Environment Social and Cultural Social and cultural