- E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. - 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. Required fields are marked *. - 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. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. - Gender Composition in Labor Market Chocolate Gourmet 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. In 2011, it is seen that major chocolate . The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. Chocolate Gourmet should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. 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. - 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. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. 2006. 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. 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. Tax rates were also terrible, according to Mr. Bilbrey. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. 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. In Asia authority is respected while in west it is something to rebel against. - 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. -Efforts to reduce consumption of water and energy and optimize transport routes. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. 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. Macroeconomics is the study of large-scale economic elements, often relating to countries as a whole.The factors this analysis represents are political, economic, social, technological, legal and environmental. Global Chocolate Market - offers growth, outlook, trends, shares, Industry Analysis, opportunities, Key Players Forecast 2019 to 2025 IND: (+91) 949418 5556 , USA: (+1) 408-915-5456 sales@envisioninteligence.com - 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. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. 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? 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). Choosing the vision, mission and the reason of existence for Chocolate Gourmet. As population is ageing it will require less tech intensive products. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. PESTEL analysis is mainly the assessment of macro environment factors. The Hershey Company is adopting new technology to create better treats. An even better option is Fair Trade Chocolate. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. 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. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. Then they scorned the dollar. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. 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. In each of these locations, the sales were weaker. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. 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. Chocolate Gourmet should be careful about the history of forex risk before entering new market. 1. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. - 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. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. 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. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. 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? Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. - 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. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. Hersheys has experienced a fair bit of controversy. The company would benefit greatly by automating several elements of the supply chain. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. Introduction 2. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. T - Technological. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Hersheys also adopted technology to move people further down the grocery aisle. E - Economic. On the other hand, Nestle has a better record of recycling. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. Chocolate Gourmet can borrow cheaply under such circumstances. Attitude towards immigration has come under sharp focus. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. Market share was divided among mass-market, gourmet, and cause-related manufacturers. Japan is a small, but articulate, country. -Kew raw materials are sourced from local suppliers. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. - 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. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular 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. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. Chocolate Gourmet can make strategies based on the stable political environment. Demographics: The UK has an aging population, which may impact chocolate consumption patterns as older consumers may be less likely to consume chocolate or may have different preferences than younger consumers. But its still a business at the end of the day; higher returns are most important for its survival. 5. 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. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. - 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. The PEST analysis looks at four types of external environmental elements: P -Political factors in an economy include various forms of government intervention and political lobbying, such as . Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. Technology is fast disrupting business models across various industries. Definition of PESTEL / PEST / STEP Analysis. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. S - Social. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. SWOT analysis of Cadbury 12. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. Your email address will not be published. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase 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. Available to download is a free sample file of the Chocolate Market report PDF. In highly hierarchical societies the power of decision making often reside at the top. Add if theyre not, then poor sales are obviously their fault right? - Mobile Phone & Internet Penetration Chocolate Gourmet should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities. Analyze Strengths and Weaknesses of Chocolate Hawkins. Then with the blame game where everything was the culprit for poor sales in 2015. 4. 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. Market Segmentation 13. The rest of the billions of bottles end up polluting the ocean and endangering sea life. 2. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Chocolate ingredients are more expensive. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. 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. PESTLE analysis of chocolate industry in JAPAN. - 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. PESTEL analysis is mainly the assessment of macro environment factors. Hersheys has dedicated commitments in social responsibility. 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. 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. The company was founded in 1924 and has gained much popularity now. While also keeping the ingredients simple to maintain environmental sustainability. 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. L - Legal. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. Chocolate in a Bloom 6. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. There is consistency in both policy making and implementations of those policies. environmental. 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. The top corporate tax rates are . But this strategy entails risks when interest rate will go up. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. - 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. 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. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption 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. Article. With so many chocolate options and new additions for 2018, Mr. Buck seemed confident in the variety they offered, as well as the new marketing campaigns launched for the products. 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. 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. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. Attitude towards immigration has come under sharp focus. Amul 9. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. It would focus on the macro-environmental factors that impact her growth and productivity. - 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 should have capabilities to navigate under this hyper sensitive environment. 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. . - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. If they were to save money here, itd be a higher return. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. - 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. - 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 conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . 3. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. 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. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. It first sold its items in United States in 1905. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. For example Trump not standing by US commitments created an environment of uncertainty. Chocolate Gourmet can leverage such a situation to hire the best people in business. Called consumer trips by the company, buying in stores went down by 2 percent that year. We will make special emphasis on Cadbury UK, as this is where the company originally began. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. View. Opening shop in the early 19thcentury, Cadbury has emerged as a global brand with factories and offices the United Kingdom and North America, and a notable presence in Asia and Africa as well. According to Michael Porter organizational performance is to large extend determined by various industry forces. Whereas it will reach USD 2.11 Bn by 2029 with a significant growth rate of 3.28% Chocolate is a very popular and sweet, food item made from cocoa beans. multiple grocers and impulse retail channels. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Hersheys current Company President and Chief Executive Officer, Michele Buck, has said the company will continue to invest in their core bands and build upon strategies to further drive growth. This technology could be adopted for Hersheys other products, particularly with chocolate. MBA Skool InstallCourses Home Courses Concepts SWOT - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. According to Jose Lopez, Nestle's Vice . Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. 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. 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. - 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 gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs.

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