pestle analysis chocolate industry

- Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. 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 - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. E - Environmental. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. 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. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. There are four major factors identified to capsulate the different factors found from the different environmental influences. - 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. 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. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. Chocolate Gourmet can borrow cheaply under such circumstances. While also keeping the ingredients simple to maintain environmental sustainability. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. - 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. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. Chocolate Industry Contents Titles 1. On the other hand, Nestle has a better record of recycling. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. 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 Choosing the vision, mission and the reason of existence for Chocolate Hawkins. This will help in better predicting the environment policy of the country. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. The bond rating of national government is investment grade. 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. 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. 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. 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. 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. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". Often companies enter the arena without requisite infrastructure to support the technology oriented model. 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. 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? Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. - 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. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. - 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 UK chocolate market is the biggest in all European market. This technology could be adopted for Hersheys other products, particularly with chocolate. Chocolate consumption in India is low per capita consumption in urban India is estimated INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. 4. 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. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Being a specialty retailer of home dcor and gifts, their primary products are . It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. Then with the blame game where everything was the culprit for poor sales in 2015. In highly hierarchical societies the power of decision making often reside at the top. - 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. 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. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. In 2015, the company blamed American consumers for not buying more chocolate. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. -Recycled, recyclable and biodegradable packaging. Amul Chocolates also . 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. Required fields are marked *. 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. Show . - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. 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. - 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. The company was founded in 1924 and has gained much popularity now. 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. - 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. 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. Save my name, email, and website in this browser for the next time I comment. - 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. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. Amul 9. The next element to address in the PESTEL analysis of Switzerland is the economic environment. But this strategy entails risks when interest rate will go up. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Luckily for the company, things turned around in the first two quarters of 2018. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. 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. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. 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. Table two below presents a PESTLE analysis for the industry Nestl are present . And even before that in 2007, Cadbury Schweppes decided to outsource a major portion of its accounting and HR to an Indian firm in the face of increasing operational expenses and reducing margins. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. 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. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. 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. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. The Hershey Company is adopting new technology to create better treats. This analysis is also performed to assess the potential of a new market. 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). The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. Chocolate Hawkins can make strategies based on the stable political environment. Technology is fast disrupting business models across various industries. 2006. As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. 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. In PESTEL analysis, you develop a detailed description of a company's macro-environment in terms of political, economic, socio-cultural, technological, environmental and legal factors as well as their effects. Some of the legal factors that may impact the chocolate industry in the UK include: Some environmental factors that may affect the chocolate industry in the UK include climate change and its impact on cocoa production, deforestation and habitat destruction in cocoa-growing regions, resource consumption and waste generation in the manufacturing process, and the environmental impact of packaging and transportation. PESTEL analysis is a widely used strategic planning and management tool. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Copyright 2020 Weberience LLC. There is consistency in both policy making and implementations of those policies. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. 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. - 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. Feel free to connect with us if you need business research. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. According to Michael Porter organizational performance is to large extend determined by various industry forces. Business do face problem when the conflict is between public interest and proprietary technology similar to ruling in South Africa where government & judiciary allowed generic AIDS drug irrespective of patents of global companies. - 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. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. 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. Attitude towards immigration has come under sharp focus. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. 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. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Attitude towards immigration has come under sharp focus. When too heavy, additional ingredients go to waste. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. 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. Objective 3. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. 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. Many US companies have incurred losses in Mexico in regular forex crisis in that country. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. - 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. - 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. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. SWOT analysis of Cadbury 12. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. Definition of PESTEL / PEST / STEP Analysis. Article. - Paris Climate Agreement and Commitment of National Government under the Agreement What are the commitments of the country under the Paris Agreement and what is the general level of consensus regarding Paris Climate Agreement in the country. 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. - 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. Mars Incorporated. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Nestle 10. Your email address will not be published. - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. In each of these locations, the sales were weaker. - 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. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. 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. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. 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. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. 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. 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. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. PESTLE analysis of chocolate industry in JAPAN. In doing so, theyre committed to being more transparent about the ingredients. E - Economic. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. 5. 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. Cadbury 11. Over one hundred million residents live in Japan and are forced to live in specific locations. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Mass-market chocolatiers were defined as those selling chocolate at less than $10 per pound retail, whereas gourmet chocolatiers were defined as those selling chocolate at or more than $10 per pound retail. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. The snapshot of this . Cadbury is identical with the consumption of chocolate on a universal basis. - 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. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . Hence, Cadbury and its range of products are now owned by the American confectionary giant. . Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. 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. Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. With almost 1.4 billion Chinese inhabitants and a growing middle-class, it is a wonderful opportunity for brands to conquer and retain a wide audience. They're advanced in telecommunications yet follow a patriarchal family system. Economic Status. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. According to Michael Porter organizational performance is to large extend determined by various industry forces. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al.

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