The Macro Environment of the Crisps Essay Example

The Macro Environment of the Crisps Paper Political and legal forces Because of the big influence that the political and legal forces can possess over any kind of business they can be considered as one of the most important micro-environment components. The role of the state is to regulate and to set the lows and the rules in order to prevent any kind of anti- competitive behaviors. European Union has created an unified framework of whom rules the companies are supposed to run their business. Those rules are as follows: abuse of market dominance; state aid, acquisitions and mergers and collusions (Jobber 2007:79). All of them are different ways that could lead to increasing of the market hare of a competitor up to levels of monopoly. In the Crisps, Nuts and Salty Snacks market in LIKE even though the Walkers brand of PepsiCo is having 20% of the market share the rest of it IS divided almost equally between the top five competitors including Kettle Chips with its 4%. As a result of an acquisition in the year of 2010 Kettle Chips become a part of Diamond Foods but as it is obvious from the market share (4%) this did not help to the company to obtain a tremendous power over the market(Huddle, Dental and Machine 2012). We will write a custom essay sample on The Macro Environment of the Crisps specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Macro Environment of the Crisps specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Macro Environment of the Crisps specifically for you FOR ONLY $16.38 $13.9/page Hire Writer This leads to the conclusion that the European Framework Rules in this particular market are respected. Much more important for the market than the mentioned above are the specific acts taken from the LIKE government with big influence over the chips and snacks market: Because of the increasing level of obese people and children over weight the following changes are made: 1. The School Food Trust made forbidden any commercials to be connected with HUFFS foods (which includes the chips and crisps as well) to be promoted to people of age under 16(Nineteenth). . The Food Standard Agency made reductions to the salted and high saturated fat products by forcing the companies to remake the sizes of their sacks smaller with 5 to 1 Go in order t help consumers to control their portions(Mi ententes). 3. In the year of 2007 he government of UK forbidden to the market actors to make advertising that include children in them (Nineteenth). 4. The only market segment that benefited from the governm ent pressure over the non healthy food are the nuts without any sugar, salt, fat or honey. They have been approved as healthy snacks by the SET (Nineteenth). Economic Forces The Economic Forces as well have their crucial impact over the marketing environment in terms of the price, supply and demand fields. Within this market environment we could determine two most important elements: economic recession and the unemployment growth. Economic recession in UK has the biggest impact over the market in terms of sales volumes. Every seventh person out of then points out the price level as essential for his choice(Gambled 2).