pestle analysis chocolate industry

Introduction 2. 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. 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. It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. Hersheys has experienced a fair bit of controversy. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. The bond rating of national government is investment grade. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. 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planning tool used to evaluate the internal and external factors that can impact the success, Your email address will not be published. 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. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). Japan is a small, but articulate, country. The implication for Chocolate Gourmet is that it can boost sales of its product in short run but also expose Chocolate Gourmet to medium term forex and currency depreciation risks. - 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. For internal factors, check out the swot analysis of the UK. The next element to address in the PESTEL analysis of Switzerland is the economic environment. In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. View. 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. The company has attempted to make amends by creating socially-conscious programs to help children in need. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. 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. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. 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. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. Product Positioning 15. Hersheys also adopted technology to move people further down the grocery aisle. 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. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. 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. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. - 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. - 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. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. Chocolate Hawkins can make strategies based on the stable political environment. 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. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Thus, disruption in the supply chain of raw materials . Over one hundred million residents live in Japan and are forced to live in specific locations. 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 . 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 we specialize at providing professional PESTEL analysis & other strategic management MBA resources. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. Sep 2014. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. 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. 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. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. - Fiscal and Monetary Policies The Republican government tax break culture has increased the deficit and it can lead to fiscal trouble for the economy in coming years. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. 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. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. PESTEL analysis is mainly the assessment of macro environment factors. E - Environmental. These factors are Political, Legal, Economic and Social. Available to download is a free sample file of the Chocolate Market report PDF. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. 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. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. In 2015, the company blamed American consumers for not buying more chocolate. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. 5. Chocolate Industry 5. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. 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. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. 988 Words4 Pages. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. It is written by Linda A. Hill, Alison Berkley Wagonfeld and shed light on critical areas in field of Organizational Development, Creativity, Entrepreneurship, Leading teams, Product development that the protagonist in the case study is facing. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. - 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. Then with the blame game where everything was the culprit for poor sales in 2015. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. Strategy planning process often requires five steps The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Tax rates were also terrible, according to Mr. Bilbrey. 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. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. 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. This will help in better predicting the environment policy of the country. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. At EMBA PRO, 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). - Research and Development Investment Levels If there is high level of investment in technology development sector then there are high chances of building a self sustaining ecosystem that drives innovation. 3. 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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. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. Save my name, email, and website in this browser for the next time I comment. - 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. Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. 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. . operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Chocolate industry Presentation 1. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. - 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 Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. Show . To them, Americans have the luxury of buying several premium chocolates. 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. Research Methodology 4. 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. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. 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 . If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Political environment and other factors not only impact the cost of doing business but also long term sustainability. They include political policies and stability as well as trade, taxation and fiscal policies ". According to Jose Lopez, Nestle's Vice . Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. 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. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System If possible, the company plans to add this A.I technology to every one of their lines. Hence, Cadbury and its range of products are now owned by the American confectionary giant. Full-text available. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. 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. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. 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. 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. -Environmental policy is very important to Lindt and Sprngli. Table two below presents a PESTLE analysis for the industry Nestl are present . - 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 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. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Switzerland is one of the largest economies in the world. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. When too heavy, additional ingredients go to waste. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. 1. 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. Some technology factors affecting the chocolate industry in the UK could include: Automation: Chocolate manufacturers in the UK are increasingly adopting automation technology to streamline their production processes and reduce labor costs. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. It first sold its items in United States in 1905. 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. 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. An even better option is Fair Trade Chocolate. Called consumer trips by the company, buying in stores went down by 2 percent that year. 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 . 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? Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. 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. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. - 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 can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. In Asia authority is respected while in west it is something to rebel against. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. 1 . - Data Protection Laws Chocolate Gourmet needs to assess what are the data laws in the country and what it needs to do to comply with them. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. If they were to save money here, itd be a higher return. - 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. 5. For example most of EU countries now want the EU citizen data to be saved in EU countries only. Which dollar? - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Being a specialty retailer of home dcor and gifts, their primary products are . The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. - 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. Brazil Chocolate Market Analysis. - 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. Chocolate Gourmet should be careful about the history of forex risk before entering new market. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. The American, Brazilian and Chinese dollars. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. PESTLE stands for: P - Political. 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. - 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. South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa, with over 1,739 miles of coastline that stretches along the South Atlantic and Indian oceans. PESTLE Analysis of Nestle in light of Industry 4.0 Political and Economic Forces Politcal Factor Sustainable Politics: PESTLE Analysis Industry-4.0 efforts in UK are politically driven, commitment from the top is a motivating factor for companies to adopt new practices. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. PESTEL Analysis, SWOT Analysis and Risk Analysis of Egypt Egypt PESTEL Analysis This report covers Egypt 's PESTEL (political, economic, social, technological, environmental and legal) analysis. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. 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. The snapshot of this . In highly hierarchical societies the power of decision making often reside at the top. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. Digital Chocolate case study (referred as Chocolate Hawkins for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Organizational Development and strategic management.

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