STEP Analysis

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What is STEP Analysis?

A method used by management that provides the analysis which is based on the four external factors that may affect the organization’s performance. Social, Technological, Economic and Political are the four factors. This strategical tool helps the profitability of the company.


Social: The social factor helps a company to understand the ethical, cultural beliefs, demographics, lifestyles and education. These changes influence the growth of the company.

Technological: The change in the technological factors can change the company’s competitive area. Environmental, ecological ways. New strategies and products and the cost of improvising and innovation. And in the development of the product.

Economic: The economic structures and its varies changes at the stock exchange and the interest, and inflation rates and nation’s economic rules and performances. They directly have a great impact on the company.

Political: The changes in the government and pressures and opportunities and changes in the political system and leadership and their values will so affect the company. It also includes the taxes and rules and political grounds and involvement in the business.

Step analysis for Cadbury’s in India

The word ‘chocolate’ has been traced back in ancient times from central America –civilizations Aztec and Maya ,Chocolate made from roasted cocoa beans was mostly enjoyed and relished all over the history as a drink . In ancient times as the expensive cocoa were gifted when a newly born arrives in a family or any religious occasions. Even the traders used to exchange it for jade, clothes etc., till recent times the chocolate has been just the plain chocolate. However Sir Hans Sloane an English doctor brought chocolate milk recipe from South America to England. According to his recipe the original Cadbury milk chocolate was prepared, later it was sold to the Cadbury’s.

The cocoa crillo is harvested only 10% world wide, 90% of it is hybrid and from forestero trees and varieties are produced mainly in West Africa. The hottest region is the right soil to grow this plantation for cocoa.

The procedure to prepare chocolate are:

Crushing and shelling
Cocoa butter
Cocoa powder
In Birmingham 1824 at bull street England, John Cadbury used to do vending for coffee, tea and drinking chocolate. He started to concentrate on the chocolate drinks and beverages. He was also appointed as the Royal by the queen. He also shifted from the tea business stopped the tea shipment and started importing cocoa into UK. He tried so many different varieties. Although it was economically not an easy price to the consumer so he had a tie up with his brother and started his venture into Cadburys chocolate making business. One of the best inventions in the confectionary industry was “Cadburys Dairy Milk” which was a moulded chocolate and was introduced in 1905 although after so many brands with leading chocolate companies the Dairy Milk shows 95 years later a success and recognition.

Step Analysis

Social: “The story of Cadbury dairy milk started in 1905 at Bourneville UK but the journey with chocolate lovers in India began in 1948”. The UK confectioner Kraft foods and Cadburys had a deal in the business and they wanted to enter the international market. However they targeted a little tough market which I could say as India could not accept any foreign products so easily but still as “C.Y.Pal non executive chairman of Cadbury India quotes India is a very happy story for Kraft and Cadbury”. Kraft was initially trying hard with its products to put-up on the shelf’s in a market store like tobolerone, milka, cheese, Oreo cookies etc although all were under one umbrella. Indians could not accept it so easily. More than 60 yrs has been passed Cadburys has now become the countries biggest...
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