The Pest Analysis Of Britannia

Every organization is concerned with its relationship to their environment and the effects of those relationships on organizational functioning. Some of the factors which can have a bearing on Britannia’s functioning, are issues related to economic reforms, technological advancements and political legislation. Britannia has to take into account all these factors and more while formulating its strategies and policies.

A PEST analysis can be performed to identify the external forces affecting an organization .This is a simple analysis of an organization’s Political, Economic, Social and Technological environment.

Political factors can affect the organization in many ways. The various political factors, can lead to creation of certain advantages

which can have an impact on the profitability of Britannia. Biscuits and cakes (which contribute to 85% of Britannia’s top line) is highly sensitive to price hikes and can quickly lead to change in customer preferences.

The Social aspect of PEST analysis includes the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. These factors affect our attitudes and opinions towards various products.

Various recent studies show, Indians are more prone to Coronary Artery Disease (CAD) which is one of the major reasons for cardiovascular diseases, high levels of cholesterol and Obesity. This represents a new opportunity for Britannia to focus on health related products that take into consideration the elements of Dieting and Nutrition. In recent years, Britannia has introduced an array of health associated products such as Nuti-Choice biscuits and Actimind flavored

They face stiff competition from both the organized and unorganized players in all of their product categories.

Britannia also leads the industry sector for biscuits with their key products like Good Day, Tiger and Marigold. Some of the major competitors of Britannia in this product category is ITC (Sunfeast), Parle Agro, Surya foods and Agro, as well as a number of unorganized players. In Dairy products, their major competitors are Nestle, Amul and Mother Dairy.

Although Britannia is well placed in the industry and has good market presence across all of its product categories, they will have to frequently come out with new products, variants, campaigns and promotions in order to be competitive and to improve their market share