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Chocolates Business Company Threats

Essay by   •  July 18, 2012  •  Essay  •  270 Words (2 Pages)  •  1,667 Views

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Globalization affected greatly almost all the industries of the world. It brought about the need for change. The changes created a new competitive environment in this industry. Globalization is one of the threats to The Real Chocolate Company. Globalization can be a threat to chocolate businesses because globalization can produce alternative products that can reduce the need for chocolate products. A threat to The Real Chocolate Company is the competitors. The competitors will try everything they can to gain a better standing against The Real Chocolate Company. The competitors might discover systems that are better than The Real Chocolate Company's system. The Real Chocolate Company needs to be always prepared for the threats brought by other chocolate companies. The threat to the company includes the laws in the country they are operating in. There may be some future laws that will regulate the ingredients of products. The laws may be used against production of chocolate products. Another threat to the company is the tariffs and taxes that the company has in different countries, each countries has its own rate of taxes and tariff that creates additional expenses for the company. A threat to The Real Chocolate Company is the health issues that might be raised by certain groups. The health concerns on the subscription to chocolate products can be used as propaganda against the company. Lastly a threat to The Real Chocolate Company is the global financial crisis which is slowly giving problems to businesses. The global financial crisis will reduce the client of The Real Chocolate Company and might force it to close some of its branches.

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