The purpose of this report was to evaluate UK as a location for establishing an off shore plant to produce a new range of fair trade chocolate by the Swiss manufacturer. The external business environment has been evaluated for the opportunities and risks based on the political,…
The risks exist because of slave labor prevalent in the cocoa farms while the process of cocoa has increased manifold. Obesity and diabetic concerns may impact the confectionery market while free imports may impact the business. This report strongly recommends the UK as a location for setting up the manufacturing base because of the strong support for fare trade products.
A Swiss chocolate manufacturer is evaluating several locations to set up a manufacturing base for exports to the neighboring regions. This report evaluates UK as a location to serve European and other developing regions.
The main criterion for evaluation of a location has been the fair-trade principle which would enable the manufacturer to decide on the location. This evaluation would be based on an assessment of the opportunities and risks presented by the political, economic, social and legal environments. Fair-trade has been prevalent in the UK confectionery market as the three market leaders (Cadbury’s, Nestle and Mars) have committed themselves to fair-trade. However, the political stability is impacted by the slave labor in cocoa farming which will be discussed at length in the report. The economic power rests with the market leaders in the confectionery industry which needs assessment. Socially, people have become conscious of fair-trade and it is believed that they are willing to pay a premium for fair-trade products. However, the market strength is important. Legal implications have led to better guidance to nutrition which can promote fair-trade.
Each of these four factors is important to decide on the location for the manufacturing unit and hence the report evaluates the opportunities and risks associated with them. Based on the findings, the recommendations would be suggested and the limitations highlighted.
Fairtrade has been defined as a strategy for poverty alleviation and sustainable development. The purpose of implementing ...
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