pestle analysis chocolate industry

Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. Definition of PESTEL / PEST / STEP Analysis. -Environmental policy is very important to Lindt and Sprngli. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System 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. Some of the economic factors that Chocolate Hawkins 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. In each of these locations, the sales were weaker. Different countries have different attitude towards health and safety so it is better for Chocolate Gourmet to conduct a thorough research before entering the market. Net sales ($1,751.6 million) were an increase of 5.3 percent. Add if theyre not, then poor sales are obviously their fault right? Chocolate Gourmet should be aware of presence of such practices in a country. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. Market share was divided among mass-market, gourmet, and cause-related manufacturers. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. The next element to address in the PESTEL analysis of Switzerland is the economic environment. 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. - 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. - 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. The first Cadbury shop was opened in . - 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. T - Technological. An even better option is Fair Trade Chocolate. 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. 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. 5. 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. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. Hersheys also adopted technology to move people further down the grocery aisle. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. The top corporate tax rates are . The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. Chocolate consumption in India is low per capita consumption in urban India is estimated It speaks out against child labor and slave labor, while also using sustainable practices for the environment. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. Your email address will not be published. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. - 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. - 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. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. But often in emerging countries these agencies delay the process as a tactic to extract bribes. (Child Labor and Slavery in the Chocolate Industry, 2014). - Technology transfer and licensing issues for Chocolate Gourmet laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Chocolate Gourmet can avoid shakedowns and IPR thefts. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . 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. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Tax rates were also terrible, according to Mr. Bilbrey. - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. 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. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. Objective 3. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. What is PESTLE Analysis. - 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. PEST analysis is used to control the external factors of what happens outside the . Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Hawkins business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. Full-text available. Hersheys has dedicated commitments in social responsibility. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. It first sold its items in United States in 1905. 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. Called consumer trips by the company, buying in stores went down by 2 percent that year. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. PESTLE analysis of chocolate industry in JAPAN. A Comprehensive Project report on Chocolate Industry Bhavik Parmar Follow Co-Founder And MD at KadiBuddy Advertisement Advertisement Recommended Final report on chaco Shailesh Kumar 3.7k views 66 slides Chocolate industry project report hasnain2 6.2k views 74 slides Chocolates & confectionery Varun Deshpande 18.6k views 29 slides This analysis is also performed to assess the potential of a new 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. Business Analysis: Kirkland. 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. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. 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. - 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. We will make special emphasis on Cadbury UK, as this is where the company originally began. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Japan is a small, but articulate, country. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. 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. . 988 Words4 Pages. Chocolate ingredients are more expensive. 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. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. If they were to save money here, itd be a higher return. Until 2025, the chocolate confectionery market in South Africa is forecast to reach 1.03 billion USD (in retail prices), thus increasing at a CAGR of 5.98% per annum for the period 2020-2024. Published by HBR Publications. - Financial Market Structure and Availability of Capital at Reasonable Rates The quantitative easing policy of Federal Reserve has led to liquidity flooding all across the global financial markets. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. In 2015, the Hersheys Company surfed upon a sea of negatives. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. 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. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. - 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. Available to download is a free sample file of the Chocolate Market report PDF. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. In one respect, Cadbury was born as a result of social factors. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. E - Environmental. Due to the COVID-19 pandemic, the global Insulin Delivery Devices market size is estimated to be worth USD 11340 million in 2022 and is forecast to a readjusted size of USD 14100 million by 2028 . - Likelihood of Entering into an Armed Conflict From the information in the Digital Chocolate case study, I dont think there is a likelihood of country entering into an armed conflict with a neighboring country. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. Hersheys has experienced a fair bit of controversy. But its still a business at the end of the day; higher returns are most important for its survival. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. Health trends: The UK government has launched several campaigns in recent years to promote healthy eating, which may impact the marketing and consumption of chocolate products. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. 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. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. - 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. In 2000, 81% of U.S. adults consumed chocolate. Mars Incorporated. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . Analyze Strengths and Weaknesses of Chocolate Gourmet. 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. Cadbury is synonymous with chocolate consumption worldwide. Cadbury is a well-known producer and distributor of chocolate and milk-based products. Save my name, email, and website in this browser for the next time I comment. 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. 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. To them, Americans have the luxury of buying several premium chocolates. There are four major factors identified to capsulate the different factors found from the different environmental influences. Chocolate Gourmet should be careful about the history of forex risk before entering new market. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. Amul Chocolates also . Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. 3. PESTEL analysis is mainly the assessment of macro environment factors. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. 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. S - Social. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . - Employment Rate If the employment rate is high then it will impact Chocolate Gourmet strategies in two ways it will provide enough customers for Chocolate Gourmet products, and secondly it will make it expensive for Chocolate Gourmet to hire talented & skillful employees. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. -Kew raw materials are sourced from local suppliers. 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. 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 political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. 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. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. Solutions. Major Players 8. The UK chocolate market is the biggest in all European market. Today, we'll study the pestle analysis of UK. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. 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 . Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. - 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 the context of the UK, the change of government from the Labour party to the Conservative/Liberal Democrat is bound to influence Cadburys operations. In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. 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. 4. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. Foreign currency exchange rates were insignificant in the second quarter. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. - Nature of Social Contract between Government & Society Before entering into a market Chocolate Hawkins needs to understand the nature of social contract between government and society. multiple grocers and impulse retail channels. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. And to also use simpler ingredients for planet sustainability. - 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. Many US companies have incurred losses in Mexico in regular forex crisis in that country. 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. Feel free to connect with us if you need business research. 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? 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. 1. Research Methodology 4. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. For internal factors, check out the swot analysis of the UK. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. 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 company has attempted to make amends by creating socially-conscious programs to help children in need. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. But this strategy entails risks when interest rate will go up. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. PESTLE analysis. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. For example Trump not standing by US commitments created an environment of uncertainty.

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