pestle analysis chocolate industry11 Apr pestle analysis chocolate industry
All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. Chapters Research Methodology Study of Global Market Study of Indian Market Product Profile Demand Determination of Chocolate Industry Distribution channel in chocolate industry Key issues & current trends PEST analysis Michel Porter's Five Force Model Other Portfolio Model Financial Analysis Opportunity . An even better option is Fair Trade Chocolate. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. - 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. MBA Skool InstallCourses Home Courses Concepts SWOT . SWOT analysis of Cadbury 12. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. In highly hierarchical societies the power of decision making often reside at the top. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. 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. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. 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. 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. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. - Research and Development Investment Levels If there is high level of investment in technology development sector then there are high chances of building a self sustaining ecosystem that drives innovation. Note on the U.S. Chocolate Market case study (referred as Chocolate Gourmet for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Strategy & Execution and strategic management. 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. Brazil Chocolate Market Analysis. When too heavy, additional ingredients go to waste. - Consumer Protection Laws Chocolate Hawkins needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage Switzerland is one of the largest economies in the world. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. Market Segmentation 13. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. Solutions. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. 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. L - Legal. . - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage 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. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. PESTLE Analysis for Cannabis Startups PESTLE is the acronym for a framework which analyzes the Political, Economic, Social, Technological, Legislative, and Environmental (mostly in the ecological sense) factors that have direct and indirect impacts on a business. PESTLE analysis of chocolate industry in JAPAN. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. Chocolate Gourmet 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 Gourmet can face. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. 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. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . 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. At EMBA PRO, But often in emerging countries these agencies delay the process as a tactic to extract bribes. - Nature of Social Contract between Government & Society Before entering into a market Chocolate Gourmet needs to understand the nature of social contract between government and society. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. 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. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. 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. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. They include political policies and stability as well as trade, taxation and fiscal policies ". Feel free to connect with us if you need business research. Then with the blame game where everything was the culprit for poor sales in 2015. PESTLE analysis of chocolate industry in JAPAN. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. Chocolate Gourmet can borrow cheaply under such circumstances. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. Chocolate industry Presentation 1. The bond rating of national government is investment grade. Research Methodology 4. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. - 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. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. - 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. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. 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. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. What is PESTLE Analysis. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. Many US companies have incurred losses in Mexico in regular forex crisis in that country. The implication for Chocolate Gourmet is that it can boost sales of its product in short run but also expose Chocolate Gourmet to medium term forex and currency depreciation risks. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. Table two below presents a PESTLE analysis for the industry Nestl are present . Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. 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. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. 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. GDP of Afghanistan in 2019 was 19,101 billion $. 1 . Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. Definition of PESTEL / PEST / STEP Analysis. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Finally, technology has changed Cadburys production and packing process over the years, starting with the introduction of new brew machines to blend coffee and cocoa gains. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. - 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. -Efforts to reduce consumption of water and energy and optimize transport routes. - 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. - 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 PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. Published by HBR Publications. environmental. Chocolate ingredients are more expensive. In Asia authority is respected while in west it is something to rebel against. Hersheys has dedicated commitments in social responsibility. 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. - 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. Introduction 2. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. - 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. - 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. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. Strategy planning process often requires five steps The chocolate industry has to anticipate the outcomes of their business operations in such a way that are in abidance with the rules and regulations made by the government of the country. The Company has various popular products in the Petcare as well as in the chocolate category for example; in the Petcare industry Pedigree, Royal Canin, Whiskas etc. - 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. In 2011, it is seen that major chocolate . Looking forward, IMARC Group expects the market to reach US$ 4.1 Billion by 2028, exhibiting a growth rate (CAGR) of 8.8% during 2023-2028. PESTLE stands for: P - Political. Feb 20, 2023 (The Expresswire) -- "Liqueur Chocolate Market" new research report for [2023] provides a comprehensive overview, including market size, share, growth rate, PESTEL analysis, SWOT . It first sold its items in United States in 1905. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . 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. Then they scorned the dollar. View. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Free Summary Report This report contains the table contents only. 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. We will make special emphasis on Cadbury UK, as this is where the company originally began. As population is ageing it will require less tech intensive products. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Since then, chocolate and Cadbury have been part of the same sentence. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. - Consumer Disposable Income The household income of the country has increased constantly in the last decade and half, compare to the USA market where household income is still below 2007 levels and not increased in real terms since early 1980s. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 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. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. Skip to main content Other CIPD Websites CIPD UK CIPD Middle East CIPD Ireland People Profession CIPD Learning Hub People ManagementPM jobs Log in / Register Go to the home page - 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. And to also use simpler ingredients for planet sustainability. Save my name, email, and website in this browser for the next time I comment. At EMBA PRO, Being a specialty retailer of home dcor and gifts, their primary products are . Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. Luckily for the company, things turned around in the first two quarters of 2018. 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. 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%. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. 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. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. Chocolate Gourmet should be aware of presence of such practices in a country. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. In highly hierarchical societies the power of decision making often reside at the top. - 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. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. PESTEL analysis is mainly the assessment of macro environment factors. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. Add if theyre not, then poor sales are obviously their fault right? In 2015, the Hersheys Company surfed upon a sea of negatives. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. Cadbury is identical with the consumption of chocolate on a universal basis. Tax rates were also terrible, according to Mr. Bilbrey. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. - 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. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. PEST ANALYSIS The PEST analysis is a useful tool for understanding market growth or decline and as such the position potential and direction for a business. 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. - Corporate Social Responsibilities Culture Are Chocolate Hawkins present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. By 2008, the company had expanded its operations into four countries and Digital Chocolate was one of the top developers of soloplayer games for standard mobile phones and iPhones. Often companies enter the arena without requisite infrastructure to support the technology oriented model. 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? - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. According to Jose Lopez, Nestle's Vice . 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 . 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. There is consistency in both policy making and implementations of those policies. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. Attitude towards immigration has come under sharp focus. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. Required fields are marked *. For example Trump not standing by US commitments created an environment of uncertainty. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. According to Michael Porter organizational performance is to large extend determined by various industry forces. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. 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 U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Expert Solution. Packaging: There is a growing demand for sustainable and eco-friendly packaging solutions, which has led to the development of new technology for biodegradable or compostable packaging materials. Show . Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. Thus, disruption in the supply chain of raw materials . 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. Chocolate Gourmet can leverage such a situation to hire the best people in business. It has decimated the culture of savings as people dont have enough to save. In doing so, theyre committed to being more transparent about the ingredients. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. Net sales ($1,751.6 million) were an increase of 5.3 percent. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Attitude towards immigration has come under sharp focus. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. This will help in better predicting the environment policy of the country. S - Social. 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. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. 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.
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