The UK chocolate market is the biggest in all European market. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. 1. -Environmental policy is very important to Lindt and Sprngli. Introduction 2. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. PEST analysis is used to control the external factors of what happens outside the . They're advanced in telecommunications yet follow a patriarchal family system. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. PESTLE analysis. 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. Chocolate Hawkins can make strategies based on the stable political environment. If possible, the company plans to add this A.I technology to every one of their lines. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. 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 Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. 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. Called consumer trips by the company, buying in stores went down by 2 percent that year. Chocolate industry Presentation 1. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. The company would benefit greatly by automating several elements of the supply chain. L - Legal. 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Chocolate Hawkins should be careful about the history of forex risk before entering new market. 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. - Democracy & Other Democratic Institutions According to Linda A. Hill, Alison Berkley Wagonfeld the democratic institutions are needed to be strengthened further so that business such as Chocolate Hawkins can thrive in an open, transparent and stable political environment. Article. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. Know More As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. 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. But often in emerging countries these agencies delay the process as a tactic to extract bribes. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Cadbury 11. Since then, chocolate and Cadbury have been part of the same sentence. 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. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. PESTEL analysis is mainly the assessment of macro environment factors. 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 But its still a business at the end of the day; higher returns are most important for its survival. In 2015, the company blamed American consumers for not buying more chocolate. Net sales ($1,751.6 million) were an increase of 5.3 percent. At EMBA PRO, An even better option is Fair Trade Chocolate. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. Nestle 10. The American, Brazilian and Chinese dollars. These factors are Political, Legal, Economic and Social. The Hershey Company is adopting new technology to create better treats. - 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. Switzerland is one of the largest economies in the world. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. Business Analysis: Kirkland. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Chocolate Mould Market Share, Size Global Growth Analysis, Trends, Industry Analysis, Key Players and Value,Opportunity Forecast to 2025 Posted o. Wednesday, 01 March 2023 08:34 GMT. 2. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. 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. - 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. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. According to Michael Porter organizational performance is to large extend determined by various industry forces. And to also use simpler ingredients for planet sustainability. 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. - 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. Major Players 8. Available to download is a free sample file of the Chocolate Market report PDF. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. Brazil Chocolate Market Analysis. - 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. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. According to Michael Porter organizational performance is to large extend determined by various industry forces. Today, we'll study the pestle analysis of UK. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Mars Incorporated. Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Chocolate consumption in India is low per capita consumption in urban India is estimated Attitude towards immigration has come under sharp focus. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. Amul 9. 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. 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. - 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. - 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. 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. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. 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. 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. - 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. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. Chocolate Hawkins has stringent norms for health and safety norms so in emerging economies it may have to compete with players who dont have high cost structures that of Chocolate Hawkins. For internal factors, check out the swot analysis of the UK. 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 . Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. Hersheys also adopted technology to move people further down the grocery aisle. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. The bond rating of national government is investment grade. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. 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. This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. - 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. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. - 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. Some of the economic factors that Chocolate Gourmet should evaluate both in the present market and one in which it wants to enter are inflation rate, GDP growth rate, disposable income level etc. PESTEL analysis is mainly the assessment of macro environment factors. 2006. 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. 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. Show . - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. 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 . 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. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. Conducting a PESTLE analysis of the confectionery industry can help businesses operating in this sector to identify potential opportunities and threats, and to develop strategies to mitigate risks and capitalize on opportunities. Chocolate in a Bloom 6. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. It first sold its items in United States in 1905. When too heavy, additional ingredients go to waste. Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. - Political Governance System Based on the information provided in the Note on the U.S. Chocolate Market case study, it seems that the country have a stable political system. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. . Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . Yasemin Oraman. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. T - Technological. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. - 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 PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. 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. Feel free to connect with us if you need business research. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. 4. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. 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? All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. 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%. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. The company has attempted to make amends by creating socially-conscious programs to help children in need. 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. multiple grocers and impulse retail channels. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. - 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. 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. Feel free to connect with us if you need business research. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. Chocolate Industry 5. 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. 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. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. Tax rates were also terrible, according to Mr. Bilbrey. Solutions. - 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. -Recycled, recyclable and biodegradable packaging. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. 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. - 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. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. Japan is a small, but articulate, country. Luckily for the company, things turned around in the first two quarters of 2018. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. In this PEST analysis of Cadbury, we saw how this leading chocolate company has dealt with external factors in the UK and in many other countries as well. 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. . - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. Over one hundred million residents live in Japan and are forced to live in specific locations. MBA Skool InstallCourses Home Courses Concepts SWOT Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. - 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. (Child Labor and Slavery in the Chocolate Industry, 2014). A Comprehensive Project report on Chocolate Industry Bhavik Parmar Follow Co-Founder And MD at KadiBuddy Advertisement Advertisement Recommended Final report on chaco Shailesh Kumar 3.7k views 66 slides Chocolate industry project report hasnain2 6.2k views 74 slides Chocolates & confectionery Varun Deshpande 18.6k views 29 slides 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. 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. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. - 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. In doing so, the companys machinery learned to adjust itself throughout the day. 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 . Chocolate Industry Contents Titles 1. In each of these locations, the sales were weaker. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. Free Summary Report This report contains the table contents only. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. 988 Words4 Pages. 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. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. Being a specialty retailer of home dcor and gifts, their primary products are . Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Psychographics and Demographics 14. 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. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. 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. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. - 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. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). The Company has various popular products in the Petcare as well as in the chocolate category for example; in the Petcare industry Pedigree, Royal Canin, Whiskas etc. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. PESTLE analysis of chocolate industry in JAPAN. We will make special emphasis on Cadbury UK, as this is where the company originally began. - 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. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . SWOT analysis of Amul Chocolates. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. Analyze Strengths and Weaknesses of Chocolate Hawkins. Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. For example Trump not standing by US commitments created an environment of uncertainty. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. 4. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. If they were to save money here, itd be a higher return. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. Political environment and other factors not only impact the cost of doing business but also long term sustainability.
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