MGT599 MoD 2 SLP Assignment External Environment Analysis - Essay Example

Furthermore, Hazard Analysis Critical Control Point (HACCP) regulations are also introduced by the Food Standard Agency in order to safeguard the food products through proper analysis and evaluation of biological, chemical and physical risk arising at the time of developing or manufacturing it (Food Standard Agency, 2011a). This law is introduced in order to protect the food product from procurement of appropriate raw materials, handling, manufacturing and ultimately selling or consumption, by target customers.

Therefore, by procuring proper raw materials, high quality of ingredients might be offered to the customers, so as to reduce the intensity of obesity or any other harmful disorder. This regulation acts as an opportunity for the Kraft food group as it might prove effective in attracting a wide range of customers towards the brand. By improvement in the range of customers, the profitability and brand value of the Kraft food group may get amplified in the market among other rival players. Economic: The economic factors such as consumer spending, disposable income, inflation, unemployment etc might offer significant impact over the organization offering food products.

The recent economic downturn of 2007-2008 created considerable changes over the food retail industry. This crisis also offers negative impact over the buying behavior of the customer, due to lack of disposable income. As the rate of unemployment increases; the rate of per capita income of the customers decreases significantly and so their buying behavior also gets hindered significantly (Mintel Group Ltd, 2009). Therefore, due to reduction of the buying behavior, the rate of total sale and profitability of the organization reduces that hinders its total revenue and market share.

Thus, such type of economic impacts acts as a threat for the Kraft food group as it decreased its total sale and profitability in the