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Unit 9 Business Organisation Pearson BTEC Level 5 HND Diploma in Business


Business organisation is an institution introduced for the purpose of carrying on commercial organization (Srivastava and Thakur,2013). Instead of this business is of two types one is non-profit and other is profit. Thus, non-profit enterprises are such who is providing services with the motive of social welfare and their day to day activities mange with help of charity or funds provided by government, trustees many more. Whereas, profit firms are those who is working with motive of generating revenue they exchange goods and services in return of monetary form. They don't recover only operating expenses but also generate profit which is important for survival in market.

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Ferrero Rocher is chocolate company introduced in 1982 in Europe. This assignment is based on same enterprise whose place of origin is Italy and Michele Ferrero is inventor of Ferrero Rocher. Production of the sweet is done through machinery as well ingredients use in this sugar, cocoa butter, milk chocolate, cocoa mass, artifical flavour, hazelnuts, palm oil, salt, wheat flour and many more. Its roughly idea that 3.6 billion chocolates of given brand is selling each year over 40 countries. Which includes 28 Europe countries, 9 Asia, 2 Africa, 9 Americas and 2 Oceania region. Mostly selling in supermarkets and departmental stores.

Apart from all these discussion Norway is country having two official name Bokmal and Nynorsk. English name Norway introduced from the old English word which is Norpweg (Dios-Palomares, Martínez-Paz and Prieto,2013). Location of this country is in Europe and official language of same is Norwegian, Sami.

Below mention assignment will be doing PESTEL analysis of Ferrero Rocher for identifying macro environmental factors. Their examination is important because business environment is dynamic in nature and external factor changes gives huge impact on working of business. Moreover this also explain Porter's five force model for examining competition level in the same chocolate industry. Thus, enterprise can gain several competitive advantages and compete with their competitors in better manner.


1. PESTEL analysis of Forrero Rocher

PESTEL analysis is framework used by marketer for identifying and monitoring macro environmental factors that can be external elements (Pestle analysis, 2017). These gives wide impact on day to day working of company where PESTEL stands for:

  • P- political
  • E- Economic
  • S- Social
  • T- Technological
  • E- Environmental
  • L- Legal

PESTEL analysis is that which assist Forrero Rocher is identifying external environmental factors at wide level. This is important because business environment is dynamic in nature and involve several elements in it. When modification take place in these surroundings it gives impact on working of business. Thus, respective organisation have to identify these factors on time basis to minimise negative impact and grab opportunities.

Ferrero Rocher is company which is famous at global level and known in confectionery brand. As well specialise for its production, distribution and marketing of products related to chocolate base (Grigoroudis, Orfanoudaki and Zopounidis, 2012). For analysing external environment of given company PESTEL analysis is done. Description is given below:-

Political: It is the part PESTEL analysis and these are all about degree of intervention in the economy. This involves government policy, political stability or instability in overseas market, labour laws, tax policies, foreign trade policies, environmental laws, trade restriction and many more.

These factors can affect referred brand because they are dealing globally and every country have their own laws and legislations which must be followed by Ferrero Rocher. While expanding business is such nations enterprise have to expand their business if political factors are not taken seriously then these give negative impact activities of business and in some situation government charge some amount against the laws which are not following by association and they have to pay it. Such factors gives both advantage and disadvantages to the same firm. Thus, if there is increase in tax rate which Ferrero Rocher have to pay because of this people decrease their consumption level it gives direct negative impact on company sales of their stock decrease. Which result in less profit maximisation and it is most important for surviving in this competitive world. On the other hand tax rate decrease then consumer started buying more and more chocolates it help in increasing sales of enterprise as well profit maximisation.

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