pestle analysis chocolate industry pestle analysis chocolate industry

And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. There are four major factors identified to capsulate the different factors found from the different environmental influences. Table two below presents a PESTLE analysis for the industry Nestl are present . INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. 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. 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. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. This will help in better predicting the environment policy of the country. Chocolate Industry 5. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. Chocolate industry Presentation 1. The company was founded in 1924 and has gained much popularity now. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. PESTLE analysis of chocolate industry in JAPAN. An even better option is Fair Trade Chocolate. PESTLE Analysis of Beverage Industry | Free PESTEL Analysis Net sales ($1,751.6 million) were an increase of 5.3 percent. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins 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. 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. It is written by Glenn Carroll, Greg Powell and shed light on critical areas in field of Strategy & Execution, Entrepreneurship, Strategy that the protagonist in the case study is facing. To them, Americans have the luxury of buying several premium chocolates. Raw material prices: Fluctuations in the prices of cocoa, sugar, and other ingredients can affect the cost of production and ultimately the price of chocolate products. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. - Level of Acceptance of Technology in the Society Chocolate Hawkins has to figure out the level of technology acceptance in the society before launching new products. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. - 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. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. What is PESTLE Analysis. 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. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Chocolate Gourmet should do a primary research regarding how much time it often takes to conclude a court case in the country given the sort of legal challenges Chocolate Gourmet can face. Cadbury PESTLE Analysis, as Smooth as It's Chocolate This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Market share was divided among mass-market, gourmet, and cause-related manufacturers. 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. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. - Nature of Social Contract between Government & Society Before entering into a market Chocolate Hawkins needs to understand the nature of social contract between government and society. - 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. We will make special emphasis on Cadbury UK, as this is where the company originally began. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). - 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. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. 1 . 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 . SWOT analysis of Amul Chocolates. PESTLE analysis | Factsheets | CIPD According to Michael Porter organizational performance is to large extend determined by various industry forces. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. 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. Chocolate Gourmet can make strategies based on the stable political environment. A Chocolate Industry Project Report - SlideShare - 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. - 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. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. - 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. 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. 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(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. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. Then they scorned the dollar. 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. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool devised by Harvard professor Francis Aguilar to conduct a thorough external analysis of the business environment of any industry for which data is available. 2. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. 2012). Chocolate in China: Enter the Sweet Chocolate Market Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. But while chocolate and other products sold by the company are socially acceptable worldwide, Cadbury has been on the receiving end of controversies, the recent one involving Cadbury products being Halal Certified to cater to Muslim markets around the world. Nestle 10. The UK chocolate market is the biggest in all European market. 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. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. Pest analysis chocolate industry uk. MBA PESTEL : Digital Chocolate In doing so, the companys machinery learned to adjust itself throughout the day. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. Which dollar? Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. 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 - Corporate Social Responsibilities Culture Are Chocolate Gourmet present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. In 2011, it is seen that major chocolate . Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. 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. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. 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. While also keeping the ingredients simple to maintain environmental sustainability. - Gender Composition in Labor Market Chocolate Hawkins 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. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. In highly hierarchical societies the power of decision making often reside at the top. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. 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. Hotel Chocolat Group Plc PESTEL & Environment Analysis - Essay48 Often companies enter the arena without requisite infrastructure to support the technology oriented model. Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. PEST Analysis of the Hershey Company: Major Setbacks and the Step into A.I. 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. Pestle analysis of confectionery industry. Pest analysis of - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. These factors are Political, Legal, Economic and Social. SWOT analysis of Cadbury 12. Today, we'll study the pestle analysis of UK. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Switzerland Chocolate Market Report 2023 (Global Edition) The Hershey Company is adopting new technology to create better treats. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. (PDF) Pestle Analysis Introduction - ResearchGate 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. PDF The Highs and Lows of Startups in The Cannabis Industry: a Pestle They include political policies and stability as well as trade, taxation and fiscal policies ". MBA Skool InstallCourses Home Courses Concepts SWOT The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . 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 . 2006. Feel free to connect with us if you need business research. The PESTLE Analysis of Chocolate Confectionery in the UK - Studentshare Definition of PESTEL / PEST / STEP Analysis. Insulin Delivery Devices Market Industry Analysis Database F The company has attempted to make amends by creating socially-conscious programs to help children in need. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Luckily for the company, things turned around in the first two quarters of 2018. This is why theyre using A.I to improve their products and encourage more sales. Analyze Strengths and Weaknesses of Chocolate Gourmet. 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. The snapshot of this . The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. - 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. - 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. 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. - 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. 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. Chocolate Market Analysis - Industry Report - Trends, Size & Share If they were to save money here, itd be a higher return. 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. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. According to the date compiled by CNN Money, the Philippines is projected to be the fourth fastest in the world, that has a GDP at 6.7%. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. In each of these locations, the sales were weaker. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. The top corporate tax rates are . 3. But often in emerging countries these agencies delay the process as a tactic to extract bribes. Hersheys has dedicated commitments in social responsibility. 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 of Chocolate Confections Corporation PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. The leading chocolate producers in Japan are Lotto Group, Meiji Seika Kaisha Ltd, and Ezaki Glico which, in 2008, had market shares of 22%, 22% and 21%, respectively. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. Available to download is a free sample file of the Chocolate Market report PDF. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. Know More PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. Save my name, email, and website in this browser for the next time I comment. 4. 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. Solutions. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. PESTEL analysis is mainly the assessment of macro environment factors. 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. 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. L - Legal. -Recycled, recyclable and biodegradable packaging. Chocolate consumption in India is low per capita consumption in urban India is estimated Examples Of Pestle Analysis Of The Philippines - 1354 Words | Bartleby This lack of clarity and responsibility highlights the company's failure to take action despite having all the resources and power to reduce child labour. SWOT Analysis of Mars - Mars incorporated SWOT analysis - Marketing91 we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. 3. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. - 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. In 2015, the Hersheys Company surfed upon a sea of negatives. Chocolate Hawkins can make strategies based on the stable political environment. Thus, disruption in the supply chain of raw materials . Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety.