PESTEL analysis

Political: * Stable political environment * Austria and Switzerland are doing business with the whole world (opportunities)

Economical: * Same currency in AT * Exchange rate Euro – CHF 1:1.20
Economical Factors
As Austria and Germany are in the monetary union both have the EURO as the only currency which makes it easier for kekswerkstatt to sell to customers in Austria. No exchange rates fluctuations have to be considered. Switzerland’s currency is the Swiss Franc or CHF. The exchange rate of the EURO and the CHF is 1€ : 1.20 CHF. This means that a Swiss customer has to pay 20% more than a German or Austrian customer for the same cookie. An average package of kekswerkstatt costs about 10€ so that in the end a Swiss has to pay 12€ which is affordable as we will see later in the report in the section purchasing power. But imaging a business customer wants to buy some cookies as a giveaways. If the amount on the invoice is 200€ for example the Swiss customer has to pay 40€ more which can be sometimes a reason not to buy if the exchange rate is not favorable.

* Many SMEs 99.7% : contribution to total turnover 60% * Many suppliers, availability of high quality resources (also regional producers) * High motivated people are easy to find (career attitude) * Share of generic and regional products is increasing

Social: * Healthy life is important * Quality instead of quantity (people are willing to buy/ pay more for better quality) * People becoming older (cookies are for every age group) older people eat more cookies with coffee but ordering via internet is too complicated for them they might don’t even know them * High purchasing power parity in Austria, very high in Switzerland * High educated population (they know what ingredients are good, know the value of them) * Nearly 82 million people in Germany, 8.5 million in Austria, 8 million in Switzerland but decreasing

Technological: * High developed watch making industry in Switzerland * Many research institutes for food * Many business solutions companies

Legal: * Consumer protection organization * Food testing associations * Hygienic and safety standards (baker is certified) * Employment laws to consider (protection, health insurance, etc.) StB macht auch vieles * Cartel office * Competition agreements are forbidden * Some laws to regard (product identification law)

Environmental: * Good infrastructure * Bakers are not far away * DHL is located in every town -> also in Austria and Switzerland

| Helpful S | Harmful W | Internal origin | › customized hand-made cookies› Large variety of non artificial ingredients, no preservatives › Lactose free dough › Master baker › Motivated team › Winner of 2012 Elevator Pitch Competition › Personal messages on package › Many types of payment | › Start-up company (less know-how) › long delivery time due to production› Only ordering via internet possible› No experience in this market› have to find a baker› have to do advertising to get well- known | External origin | › Customization is an increasing sector for business presents, Christmas etc.› no direct competitors -> a new niche market could be developed› less regulations to be expected› easy to start business (no big restrictions)› same currency in Austria | › Local bakeries could become competitors› Exchange rate fluctuations in Switzerland to be expected› Maybe too less demand for products› Too long delivery time from Germany (better packaging necessary) | | O | T |