pestle analysis chocolate industry

PEST analysis is used to control the external factors of what happens outside the . Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. Foreign currency exchange rates were insignificant in the second quarter. - 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. - 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. - 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. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. - 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. 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. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. 2. Net sales ($1,751.6 million) were an increase of 5.3 percent. The implication for Chocolate Hawkins is that it can boost sales of its product in short run but also expose Chocolate Hawkins to medium term forex and currency depreciation risks. Cadbury is a well-known producer and distributor of chocolate and milk-based products. 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 . Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. 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. 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. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System In Asia authority is respected while in west it is something to rebel against. 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. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. - 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 Industry Contents Titles 1. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. While also keeping the ingredients simple to maintain environmental sustainability. An even better option is Fair Trade Chocolate. In Asia authority is respected while in west it is something to rebel against. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. . Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. - 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. Chocolate in a Bloom 6. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. 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. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. Market Segmentation 13. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. 988 Words4 Pages. 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. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. In one respect, Cadbury was born as a result of social factors. Yasemin Oraman. If possible, the company plans to add this A.I technology to every one of their lines. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Chocolate Gourmet should be aware of presence of such practices in a country. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. 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. 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). Definition of PESTEL / PEST / STEP Analysis. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. 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. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. - 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 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. - 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. 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. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. - 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. Cost Based Pricing could be a bad strategy under such conditions. 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. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. The A.I transmits data to the cloud. As population is ageing it will require less tech intensive products. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. Called consumer trips by the company, buying in stores went down by 2 percent that year. 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. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. - 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. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. PESTLE analysis of chocolate industry in JAPAN. Hence, Cadbury and its range of products are now owned by the American confectionary giant. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. Chocolate industry Presentation 1. The Hershey Company is adopting new technology to create better treats. In 2000, 81% of U.S. adults consumed chocolate. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. PESTLE analysis. 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. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. 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. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. View. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. Objective 3. Product Positioning 15. - 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 in India 7. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. Mars Incorporated. - 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. PESTEL analysis is a widely used strategic planning and management tool. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. Its installed specifically for their Twizzler candies. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. 3. - 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. 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. Over one hundred million residents live in Japan and are forced to live in specific locations. environmental. 4. Market share was divided among mass-market, gourmet, and cause-related manufacturers. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. And to also use simpler ingredients for planet sustainability. 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. Definition of PESTEL / PEST / STEP Analysis. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. -Efforts to reduce consumption of water and energy and optimize transport routes. Expert Solution. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. SWOT analysis of Cadbury 12. Strategy planning process often requires five steps It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. 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. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. Those that cant afford it are also a problem because well, theyre not buying the chocolate. Political environment and other factors not only impact the cost of doing business but also long term sustainability. 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. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. Cadbury 11. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Feel free to connect with us if you need business research. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. The 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. Your email address will not be published. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. Luckily for the company, things turned around in the first two quarters of 2018. - 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. 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 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. But its still a business at the end of the day; higher returns are most important for its survival. 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. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. It has decimated the culture of savings as people dont have enough to save. Being a specialty retailer of home dcor and gifts, their primary products are . Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. This will help in better predicting the environment policy of the country. 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. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. - 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. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Despite the popularity of chocolate in the United States, many analysts believed that the market was far from saturated, noting that European per capita consumption of chocolate remained considerably higher than that of American consumers. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. 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. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. 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. To them, Americans have the luxury of buying several premium chocolates. Psychographics and Demographics 14. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. 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. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. Chocolate ingredients are more expensive. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. Nestle 10. - 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. Strategy planning process often requires five steps Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". 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. Chocolate Gourmet can make strategies based on the stable political environment. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Opening shop in the early 19 th century, Cadbury has emerged as a global brand with factories and offices the United Kingdom and North America, and a notable presence in Asia and Africa as well. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. Other factors may include regulations related to sustainability and greenhouse gas emissions, consumer demand for ethically and sustainably produced products, and the availability and cost of renewable energy sources. There is consistency in both policy making and implementations of those policies. The gourmet category was expected to grow as consumers incorporated more expensive gourmet foods into their diets, a trend beginning with the beer, wine, coffee, cheese, and ice cream industries. In doing so, theyre committed to being more transparent about the ingredients. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Chocolate consumption in India is low per capita consumption in urban India is estimated 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. 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 . Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. (Child Labor and Slavery in the Chocolate Industry, 2014). 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. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. 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

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