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Ferrero SpA

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Incorporated in 1946 by Pietro Ferrero, Ferrero SpA is a privately-held, family-owned producer of confectionary treats, most notably chocolates. Ferrero was originally headquartered in Alba, Italy, but moved its headquarters to Turin, Italy in 1964.

Some of Ferrero’s most popular products are: Nutella, the Kinder brand, Ferrero Rocher and Mon Cheri chocolates, and Tic Tac. Throughout its more than 50-year history, Ferrero expanded operations in Europe, the Americas, Asia, Africa, and Australia.

The history of his Group began after World War II, thanks to Nutella. During this period, as the cocoa bean was expensive and rare, Pietro Ferrero invented a cream of hazelnuts and cocoa and called it Pasta Gianduja. Later on his sons became joint chief executives. Michele Ferrero modified his father’s recipe to produce Nutella, which was first sold in 1964 and has become popular around the World with more than 85% of the market share of chocolate spread.

Today, the Group was comprised of seventy-two affiliated companies, including thirty-eight business units, fifteen production plants and three social enterprises, and its products are taken up by more than one hundred outlet markets.

After fifties year of experiences, Ferrero comes third in the world wide ranking of sweet manufacturers, after Masterfoods (Mars, Milky Way, Snickers) and Nestlé.

Headed by Giovanni Ferrero as Chief Executive Officer, the Group closed the operating year with a consolidated turnover of 7,218 million Euros, representing an increase of 9.1% over the previous year. Operating results were particularly good in Russia, the U.S. and Brazil.

The average number of people employed in 2010/11 was 21,913 units, well in keeping with the employment level during the previous year (21.736 units).

In the course of the year ended on 31 August 2011, the Group made new investments amounting to 382 million Euro (5.3% of turnover), and 350 million of this amount was spent to strengthen the Group’s production activities. Besides the constant contributions to innovation, research and development, further investments were made in the fields of energy and environmental sustainability at Ferrero production sites in Italy, Germany, Poland and Belgium. The Group carried on its initiatives for the development of some of the poorest areas in the world according to the Ferrero Social Enterprises program.


Different tools of Analyses

Macro environment analysis is a review of all the factors that a company is unable to control. Companies conduct this analysis to stay abreast of the issue in the current business environment. A common tool for conducting a macro environment analysis is the STEEPLE framework, which include factors from the Social-Cultural, Technological, Economic, Environmental (for Ecological), Political, Legislative and Ethical aspects in the business environment. The ultimate purpose of this analysis is to create a strategy that will leverage as many of these external factors as possible to the company’s favour.

Social-Cultural: Population demographics, Income distribution, Social mobility, Lifestyle changes, Attitudes to work and leisure, Consumerism and Levels of education Technological: Government spending on research, Government and industry focus on technological effort, New discoveries and developments, Speed of technology transfer and Rates of obsolescence. Economic: Business cycles, GNP trends, Interest rates, Money supply, Inflation, Unemployment and Disposable income. Environmental: Environmental protection laws, Waste disposal and Energy consumption. Political: Government stability, Taxation policy, Foreign trade regulations and Social welfare policies. Legal: Competition law, Employment law, Health and safety and Product safety. Ethical: Corporate Governance and CSR (Corporate Social Responsibility).

A PESTLE analysis should feed into a SWOT analysis as it helps to determine the threats and opportunities represented by macro-environment forces that the organization usually cannot control. On an international basis, it is best to perform the analysis on a country-by-country basis because factors can differ greatly between countries (or even regions).


The Five Forces Model is a tool that can be used to analyse the opportunities and overall competitive advantage of you, your organization, or your project. It is comprised of five forces that can assist in determining the competitive intensity and potential attractiveness within a specific area. This can be developed to assist in analysing a specific project and the strategic opportunities for this project, as well as the strategic opportunities, effectiveness and profitability of our organization as a whole.

We also have a tool of Emery & Trist which explain the Nature of the Business Environment.

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