"The macro environment consists of a number of broad forces that effect not only the company but also the other actors in the macro environment"(Jobber 2007:78). The main purpose of every company is to generate profit by providing its customers their products and services. In order to do that efficiently, companies should conduct their business considering the macro environment forces. Therefore often is used the PEST (political, economic, social and technological) analysis. 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 share of a competitor up to levels of monopoly. In the Crisps, Nuts and Salty Snacks market in UK 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, Dentand and Machine 2012). 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 UK government with big influence over the...