E - Economic. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. Market Segmentation 13. Feel free to connect with us if you need business research. PESTLE analysis of chocolate industry in JAPAN. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Whereas it will reach USD 2.11 Bn by 2029 with a significant growth rate of 3.28% Chocolate is a very popular and sweet, food item made from cocoa beans. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. - Securities Law What are the securities law in the country and what are the conditions to list the company on national or regional stock exchange. Chocolate Hawkins has stringent norms for health and safety norms so in emerging economies it may have to compete with players who dont have high cost structures that of Chocolate Hawkins. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. Some technology factors affecting the chocolate industry in the UK could include: Automation: Chocolate manufacturers in the UK are increasingly adopting automation technology to streamline their production processes and reduce labor costs. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Gourmet. Objective 3. Foreign currency exchange rates were insignificant in the second quarter. The revenue in the chocolate market is projected to reach 340243.54 tons in 2022 and the market is expected to register a CAGR of 5.90% in terms of volume. SWOT analysis of Cadbury 12. E - Environmental. In the context of the UK, the change of government from the Labour party to the Conservative/Liberal Democrat is bound to influence Cadburys operations. Required fields are marked *. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. This analysis is also performed to assess the potential of a new market. The Hershey Company is adopting new technology to create better treats. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. - Focus & Spending on Renewable Technologies How much of the budget is spend on renewable energy sources and how Chocolate Hawkins can make this investment as part of its competitive strategy. - Gender Composition in Labor Market Chocolate Hawkins can use gender composition of labor market to understand the level of liberal nature of the society, women rights, and womens say in matter of societal issues and consumption decisions. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Chocolate Industry Contents Titles 1. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. The company would benefit greatly by automating several elements of the supply chain. In 2015, the Hersheys Company surfed upon a sea of negatives. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. In highly hierarchical societies the power of decision making often reside at the top. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. Definition of PESTEL / PEST / STEP Analysis. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. 2. Product Positioning 15. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. 988 Words4 Pages. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. - Mobile Phone & Internet Penetration Chocolate Gourmet should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. . Economic Status. Its installed specifically for their Twizzler candies. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. - Role Local Governments Play Local governments are highly influential in the policy making process and implementation as most of the policies and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding various laws. - Level of Acceptance of Technology in the Society Chocolate Hawkins has to figure out the level of technology acceptance in the society before launching new products. In this PEST analysis of Cadbury, we saw how this leading chocolate company has dealt with external factors in the UK and in many other countries as well. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. The first Cadbury shop was opened in . Here are some facts and figures about the beverage industry: The global beverage market size was valued at $1.45 trillion in 2020, and is projected to grow at a CAGR of 6.6% from 2021 to 2028. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. Political environment and other factors not only impact the cost of doing business but also long term sustainability. The leading chocolate producers in Japan are Lotto Group, Meiji Seika Kaisha Ltd, and Ezaki Glico which, in 2008, had market shares of 22%, 22% and 21%, respectively. It has decimated the culture of savings as people dont have enough to save. Chocolate Gourmet can leverage such a situation to hire the best people in business. -Environmental policy is very important to Lindt and Sprngli. - Per Capita and National Carbon Emission What is the per capita carbon emission of the country and what is the overall level of carbon emissions of the country. Brazil Chocolate Market Analysis. Chocolate Gourmet can borrow cheaply under such circumstances. Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Chocolate Industry in India 7. According to the date compiled by CNN Money, the Philippines is projected to be the fourth fastest in the world, that has a GDP at 6.7%. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . PEST or PESTLE analysis is used to identify important external (macro-environment level) forces that could affect a company, creating opportunities or threats for the organization. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. Full-text available. But while chocolate and other products sold by the company are socially acceptable worldwide, Cadbury has been on the receiving end of controversies, the recent one involving Cadbury products being Halal Certified to cater to Muslim markets around the world. - Political Governance System Based on the information provided in the Note on the U.S. Chocolate Market case study, it seems that the country have a stable political system. The PEST analysis looks at four types of external environmental elements: P -Political factors in an economy include various forms of government intervention and political lobbying, such as . For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level. Amul 9. - Immigration Policies and Level of Immigration What are the immigration policies of the country, what is the level of immigration, and in which sectors immigration is encouraged. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. Business Analysis: Kirkland. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. - Democracy & Other Democratic Institutions According to Linda A. Hill, Alison Berkley Wagonfeld the democratic institutions are needed to be strengthened further so that business such as Chocolate Hawkins can thrive in an open, transparent and stable political environment. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. To them, Americans have the luxury of buying several premium chocolates. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. But even then, recession did play its part as the company managed only to hit the lower end of its 4%-6% revenue for 2009, the peak of the recession. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. For example if the supply chain is not flexible it can lead to bottlenecks if shipments from one part of the world are delayed because of sudden climate shift. - Role Local Governments Play Local governments are highly influential in the policy making process and implementation as most of the policies and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding various laws. Many US companies have incurred losses in Mexico in regular forex crisis in that country. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. Thus, disruption in the supply chain of raw materials . - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. Chocolate in a Bloom 6. Analyze Strengths and Weaknesses of Chocolate Gourmet. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. But often in emerging countries these agencies delay the process as a tactic to extract bribes. 3. - Data Protection Laws Chocolate Gourmet needs to assess what are the data laws in the country and what it needs to do to comply with them. The rest of the billions of bottles end up polluting the ocean and endangering sea life. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . Chocolate Hawkins can make strategies based on the stable political environment. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. Chocolate Gourmet should be careful about the history of forex risk before entering new market. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. The American, Brazilian and Chinese dollars. Cost Based Pricing could be a bad strategy under such conditions. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. Ethical and sustainable sourcing: There is increasing concern among consumers about the environmental and social impact of chocolate production, including issues related to child labor, deforestation, and fair trade. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level. There are four major factors identified to capsulate the different factors found from the different environmental influences. Analyze Strengths and Weaknesses of Chocolate Hawkins. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - Focus & Spending on Renewable Technologies How much of the budget is spend on renewable energy sources and how Chocolate Gourmet can make this investment as part of its competitive strategy. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Note on the U.S. Chocolate Market, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Note on the U.S. Chocolate Market, SWOT Analysis of Note on the U.S. Chocolate Market, 5C Marketing Analysis of Note on the U.S. Chocolate Market, 4P Marketing Analysis of Note on the U.S. Chocolate Market, Porter Five Forces Analysis and Solution of Note on the U.S. Chocolate Market, Porter Value Chain Analysis and Solution of Note on the U.S. Chocolate Market, Case Memo & Recommendation Memo of Note on the U.S. Chocolate Market, Blue Ocean Analysis and Solution of Note on the U.S. Chocolate Market, Marketing Strategy and Analysis Note on the U.S. Chocolate Market, VRIO /VRIN Analysis & Solution of Note on the U.S. Chocolate Market, PESTEL / STEP / PEST Analysis of Note on the U.S. Chocolate Market, Case Study Solution of Note on the U.S. Chocolate Market, SWOT Analysis and Solution of Note on the U.S. Chocolate Market, Kirin Brewery Co., Ltd.: The Dry Beer War PESTEL / PEST / STEP Analysis & Solution, Monsanto and Genetically Modified Organisms PESTEL / PEST / STEP Analysis & Solution, Cola Wars Continue: Coke and Pepsi in 2006 PESTEL / PEST / STEP Analysis & Solution, Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) PESTEL / PEST / STEP Analysis & Solution, Coca-Cola FEMSA's Contribution to Peace PESTEL / PEST / STEP Analysis & Solution, Vincor and the New World of Wine PESTEL / PEST / STEP Analysis & Solution, Arcor: Global Strategy and Local Turbulence (Abridged) PESTEL / PEST / STEP Analysis & Solution, Marks and Spencer Ltd. (A) PESTEL / PEST / STEP Analysis & Solution, PepsiCo: The Challenge of Growth Through Innovation PESTEL / PEST / STEP Analysis & Solution, Adam Baxter Co./Local 190: 1985 Negotiation, Local 190 Confidential Information PESTEL / PEST / STEP Analysis & Solution. PESTEL analysis is mainly the assessment of macro environment factors. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. It is important to note that the Chocolate Confections Corporation PESTEL Analysis will be market specific, and the implications of the factors change for a company when the market . Macroeconomics is the study of large-scale economic elements, often relating to countries as a whole.The factors this analysis represents are political, economic, social, technological, legal and environmental. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. - Societal Norms and Hierarchy What sort of hierarchy and norms are acceptable in society also influence the types and level of consumption in a society. Note on the U.S. Chocolate Market case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. It requires less temperature and energy to produce (unlike non-raw chocolate), and thatll also bring a smile to the faces of eco-friendly consumers. Cadbury 11. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. Tax rates were also terrible, according to Mr. Bilbrey. Free Summary Report This report contains the table contents only. The total retail value of the U.S. market for chocolate was estimated at $13.7 billion in 2002, a 10.2% increase from 1998. In this essay, we will conduct a PESTEL analysis of the chocolate industry in the UK to identify the key external factors that could affect its future prospects. It would focus on the macro-environmental factors that impact her growth and productivity. Hence, Cadbury and its range of products are now owned by the American confectionary giant. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Recommended: How to write a PEST analysis. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Digital Chocolate, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Digital Chocolate, 5C Marketing Analysis of Digital Chocolate, 4P Marketing Analysis of Digital Chocolate, Porter Five Forces Analysis and Solution of Digital Chocolate, Porter Value Chain Analysis and Solution of Digital Chocolate, Case Memo & Recommendation Memo of Digital Chocolate, Blue Ocean Analysis and Solution of Digital Chocolate, Marketing Strategy and Analysis Digital Chocolate, VRIO /VRIN Analysis & Solution of Digital Chocolate, PESTEL / STEP / PEST Analysis of Digital Chocolate, Case Study Solution of Digital Chocolate, SWOT Analysis and Solution of Digital Chocolate, USA TODAY: Pursuing the Network Strategy (B) PESTEL / PEST / STEP Analysis & Solution, Washington Post (B) PESTEL / PEST / STEP Analysis & Solution, Keeping Google "Googley" (Abridged) PESTEL / PEST / STEP Analysis & Solution, Unisys: The Merger of Burroughs and Sperry PESTEL / PEST / STEP Analysis & Solution, Telegraph Media Group: The Newspaper Is Dead, Long Live the (E), Change - A Work in Progress PESTEL / PEST / STEP Analysis & Solution, Wikipedia in the Spotlight PESTEL / PEST / STEP Analysis & Solution, Walt Disney's Dennis Hightower: Weaving Together the European Operations PESTEL / PEST / STEP Analysis & Solution, Warner Cable (B) PESTEL / PEST / STEP Analysis & Solution, Man Jit Singh at Sony Entertainment Television (A) PESTEL / PEST / STEP Analysis & Solution, Cisco Systems: Developing a Human Capital Strategy (A) PESTEL / PEST / STEP Analysis & Solution, Organizational Development / MBA Resources. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. Opening shop in the early 19 th century, Cadbury has emerged as a global brand with factories and offices the United Kingdom and North America, and a notable presence in Asia and Africa as well. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. In Asia authority is respected while in west it is something to rebel against. Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Attitude towards immigration has come under sharp focus. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . It is written by Glenn Carroll, Greg Powell and shed light on critical areas in field of Strategy & Execution, Entrepreneurship, Strategy that the protagonist in the case study is facing. Hersheys has experienced a fair bit of controversy. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Gourmet business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. Add if theyre not, then poor sales are obviously their fault right? All Rights Reserved, Twitter PESTLE Analysis: 6 Notable Factors Affecting the Social Network, How to Pursue a Career in Cybersecurity: 7 Professional Tips to Follow, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. Solutions. In Asia authority is respected while in west it is something to rebel against. Being a specialty retailer of home dcor and gifts, their primary products are . Chocolate industry Presentation 1. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. The three inter-related environments are industry environment in which the company operates in, the geographic market or country in which company operates, and wider socio economic / macro environment. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. The top corporate tax rates are . Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. Higher inflation may require Chocolate Hawkins to continuously increase prices in line of inflation which could lead to lower levels brand loyalty and constant endeavors to manage costs. -Kew raw materials are sourced from local suppliers. 2012). Introduction 2. Sep 2014. 1. 1 . Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. 3. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. This will help in better predicting the environment policy of the country. Online sales: The growth of e-commerce and online sales has encouraged many chocolate manufacturers in the UK to invest in online sales channels and digital marketing strategies. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Article. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects.
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