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. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. An even better option is Fair Trade Chocolate. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. Raw material prices: Fluctuations in the prices of cocoa, sugar, and other ingredients can affect the cost of production and ultimately the price of chocolate products. environmental. Many US companies have incurred losses in Mexico in regular forex crisis in that country. 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. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. Here are 7 professional tips that can, Our General Mills SWOT Analysis examines internal and external factors that impact the company's operations, What is root cause analysis, the goal, and why is it important? Some of the economic factors that Chocolate Gourmet should evaluate both in the present market and one in which it wants to enter are inflation rate, GDP growth rate, disposable income level etc. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. Thus, disruption in the supply chain of raw materials . multiple grocers and impulse retail channels. Feel free to connect with us if you need business research. Luckily for the company, things turned around in the first two quarters of 2018. This is where the PESTEL analysis comes in handy as a useful tool for identifying the external factors that could affect the chocolate industry in the UK. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. View. 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. PESTEL analysis is mainly the assessment of macro environment factors. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . The American, Brazilian and Chinese dollars. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. 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. Attitude towards immigration has come under sharp focus. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. . - 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. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. S - Social. If possible, the company plans to add this A.I technology to every one of their lines. Introduction PESTLE ANALYSIS and 5 FORCES ANALYSIS CHOCOLATE CONFECTIONERY PESTLE Analysis Although it has been nearly 4 years since the destruction of the twin towers in the US, terrorism remains a very real threat in much of the world, and a powerful political and economic influence on business. Switzerland is one of the largest economies in the world. -Kew raw materials are sourced from local suppliers. 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. Hersheys also adopted technology to move people further down the grocery aisle. - 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. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. Mars Incorporated. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Being run by a Quaker family, their opposition to alcohol served as the basis of running a business that sold tea, coffee, cocoa, and liquid chocolate. Being a specialty retailer of home dcor and gifts, their primary products are . Published by HBR Publications. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. - 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. And although theyre doing better financially in 2018 compared to the disastrous year of 2015, the company is not on the hunt to increase expenses just yet. According to Michael Porter organizational performance is to large extend determined by various industry forces. We will make special emphasis on Cadbury UK, as this is where the company originally began. A SWOT analysis of handbags, A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a strategic planning tool used to evaluate the internal and external factors that can impact the success, Your email address will not be published. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Chocolate Hawkins should be careful about the history of forex risk before entering new market. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. For internal factors, check out the swot analysis of the UK. Chocolate Gourmet should be careful about the history of forex risk before entering new market. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Business Analysis: Kirkland. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. 5. Some social factors that may affect the chocolate industry in the UK include: Changing consumer preferences: Consumers in the UK are becoming more health-conscious and may seek out lower-calorie or healthier chocolate products. 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 . - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Even though the global economic downturn did affect Cadburys expansion plans (owing to a reduction in disposable income of customers and other stakeholders), sales actually remained quiet steady. Chocolate Hawkins can make strategies based on the stable political environment. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. 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 . Secondly governments from all parties adhere to the treaties made by the previous governments. On the other hand, Nestle has a better record of recycling. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. - 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. As population is ageing it will require less tech intensive products. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. A PESTEL analysis is used as a strategic tool to measure industry dynamics through recognition of the core political, economic, social, technological, legal and environmental forces/changes having influence on the industry (Henry, 2007, p.23). Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Research Methodology 4. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. GDP of Afghanistan in 2019 was 19,101 billion $. Net sales ($1,751.6 million) were an increase of 5.3 percent. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. But conversely, it will also create new employment opportunities in countries like India. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. PESTLE analysis. - Likelihood of Entering into an Armed Conflict From the information in the Note on the U.S. Chocolate Market case study, I dont think there is a likelihood of country entering into an armed conflict with a neighboring country. Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. Major Players 8. Your email address will not be published. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . But this strategy entails risks when interest rate will go up. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. 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. Chocolate Hawkins should do a primary research regarding how much time it often takes to conclude a court case in the country given the sort of legal challenges Chocolate Hawkins can face. - Business Laws Before entering into new market Chocolate Hawkins has to assess what are the business laws and how they are different from home market. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage 2006. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. Traceability: Technology such as barcoding, RFID (radio frequency identification), and blockchain are being used to enhance traceability of the chocolate supply chain, from cocoa bean to finished product. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. What is PESTLE Analysis. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. 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. According to Michael Porter organizational performance is to large extend determined by various industry forces. Some of the economic factors that affect the chocolate industry in the UK include: Consumer demand: Changes in consumer preferences and tastes can affect the demand for chocolate products, which can impact the industrys profitability. Which dollar? Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. Psychographics and Demographics 14. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. Technology is fast disrupting business models across various industries. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. Japan is a small, but articulate, country. According to Jose Lopez, Nestle's Vice . The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. If they were to save money here, itd be a higher return. - Time Taken for Court Proceedings Even if the country has best of the laws, it doesnt mean much if they cant be enforced in a timely manner. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. In this section, we present a brief analysis of each element in relation to the . For example Uber employment system is not consistent with French laws and it is facing challenges in the country. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. Some political factors that can affect the chocolate industry in the UK include: Trade policies: Changes in trade policies and tariffs can affect the cost and availability of raw materials, as well as the export and import of finished chocolate products. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. These factors are Political, Legal, Economic and Social. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. It first sold its items in United States in 1905. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. Factors that should be consider while launching a new product i.e Political, Economic, Sociological, Technological, Legal and Environmental and the questions we should take under Consideration - 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. Opening shop in the early 19thcentury, 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. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. At EMBA PRO, It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. Since then, chocolate and Cadbury have been part of the same sentence. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. In 2015, the company blamed American consumers for not buying more chocolate. 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. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. In 2009, Hawkins was eager for Digital Chocolate to start developing new types of mobile games that could be played by multiple players over a period of time. - 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. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. When too heavy, additional ingredients go to waste. In highly hierarchical societies the power of decision making often reside at the top. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. It has decimated the culture of savings as people dont have enough to save. - Technology transfer and licensing issues for Chocolate Hawkins laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Chocolate Hawkins can avoid shakedowns and IPR thefts. Often companies enter the arena without requisite infrastructure to support the technology oriented model. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Technology is fast disrupting business models across various industries. PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool devised by Harvard professor Francis Aguilar to conduct a thorough external analysis of the business environment of any industry for which data is available. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. 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. Cost Based Pricing could be a bad strategy under such conditions. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. Chocolate Gourmet 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 Gourmet. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. The first Cadbury shop was opened in . Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. All Rights Reserved, Political factors: The politics and policies of chocolate, Economic factors: All problems, all the time, Social factors: A dedication to social responsibility and favor, then poor sales are obviously their fault, adopting new technology to create better treats, add this A.I technology to every one of their lines, the consumer pushback against their usage of the Ivory Coast (and potentially child labor), 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. Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. Hence, Cadbury and its range of products are now owned by the American confectionary giant. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. (Child Labor and Slavery in the Chocolate Industry, 2014). In highly hierarchical societies the power of decision making often reside at the top. Article. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. Those that cant afford it are also a problem because well, theyre not buying the chocolate. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. Know More Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Required fields are marked *. PESTEL Analysis, SWOT Analysis and Risk Analysis of Egypt Egypt PESTEL Analysis This report covers Egypt 's PESTEL (political, economic, social, technological, environmental and legal) analysis. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. Amul 9. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. The bond rating of national government is investment grade. Demographics: The UK has an aging population, which may impact chocolate consumption patterns as older consumers may be less likely to consume chocolate or may have different preferences than younger consumers. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. Report Overview The global chocolate market size was estimated at USD 113.16 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.7% from 2022 to 2030. Show . Choosing the vision, mission and the reason of existence for Chocolate Hawkins. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. It would focus on the macro-environmental factors that impact her growth and productivity. 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. The company has attempted to make amends by creating socially-conscious programs to help children in need. we specialize at providing professional PESTEL analysis & other strategic management MBA resources.
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