- 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. - 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. Objective 3. 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. L - Legal. An even better option is Fair Trade Chocolate. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. - 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. 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. - 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. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. 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. Those that cant afford it are also a problem because well, theyre not buying the chocolate. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. Cadbury 11. In doing so, the companys machinery learned to adjust itself throughout the day. Chocolate Gourmet 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 Gourmet. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Required fields are marked *. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. In highly hierarchical societies the power of decision making often reside at the top. Chocolate Industry Contents Titles 1. Attitude towards immigration has come under sharp focus. 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. They're advanced in telecommunications yet follow a patriarchal family system. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. Its installed specifically for their Twizzler candies. - 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. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". - 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. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. 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. In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. Product Positioning 15. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. 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. - 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. In highly hierarchical societies the power of decision making often reside at the top. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. The A.I transmits data to the cloud. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. - 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. Feb 20, 2023 (The Expresswire) -- "Liqueur Chocolate Market" new research report for [2023] provides a comprehensive overview, including market size, share, growth rate, PESTEL analysis, SWOT . 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. 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. This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. - Securities Law What are the securities law in the country and what are the conditions to list the company on national or regional stock exchange. - 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. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. MBA Skool InstallCourses Home Courses Concepts SWOT PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. Often companies enter the arena without requisite infrastructure to support the technology oriented model. - 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. 5. For example most of EU countries now want the EU citizen data to be saved in EU countries only. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. 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. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. At EMBA PRO, The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. 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. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . In 2015, the Hersheys Company surfed upon a sea of negatives. 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. Chocolate consumption in India is low per capita consumption in urban India is estimated Market Segmentation 13. The first Cadbury shop was opened in . In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . Cadbury is a well-known producer and distributor of chocolate and milk-based products. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. The top corporate tax rates are . Political factors: Government policies and regulations can have a significant impact on the confectionery industry. Called consumer trips by the company, buying in stores went down by 2 percent that year. Technology is fast disrupting business models across various industries. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Note on the U.S. Chocolate Market, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Note on the U.S. Chocolate Market, SWOT Analysis of Note on the U.S. Chocolate Market, 5C Marketing Analysis of Note on the U.S. Chocolate Market, 4P Marketing Analysis of Note on the U.S. Chocolate Market, Porter Five Forces Analysis and Solution of Note on the U.S. Chocolate Market, Porter Value Chain Analysis and Solution of Note on the U.S. Chocolate Market, Case Memo & Recommendation Memo of Note on the U.S. Chocolate Market, Blue Ocean Analysis and Solution of Note on the U.S. Chocolate Market, Marketing Strategy and Analysis Note on the U.S. Chocolate Market, VRIO /VRIN Analysis & Solution of Note on the U.S. Chocolate Market, PESTEL / STEP / PEST Analysis of Note on the U.S. Chocolate Market, Case Study Solution of Note on the U.S. Chocolate Market, SWOT Analysis and Solution of Note on the U.S. Chocolate Market, Kirin Brewery Co., Ltd.: The Dry Beer War PESTEL / PEST / STEP Analysis & Solution, Monsanto and Genetically Modified Organisms PESTEL / PEST / STEP Analysis & Solution, Cola Wars Continue: Coke and Pepsi in 2006 PESTEL / PEST / STEP Analysis & Solution, Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) PESTEL / PEST / STEP Analysis & Solution, Coca-Cola FEMSA's Contribution to Peace PESTEL / PEST / STEP Analysis & Solution, Vincor and the New World of Wine PESTEL / PEST / STEP Analysis & Solution, Arcor: Global Strategy and Local Turbulence (Abridged) PESTEL / PEST / STEP Analysis & Solution, Marks and Spencer Ltd. (A) PESTEL / PEST / STEP Analysis & Solution, PepsiCo: The Challenge of Growth Through Innovation PESTEL / PEST / STEP Analysis & Solution, Adam Baxter Co./Local 190: 1985 Negotiation, Local 190 Confidential Information PESTEL / PEST / STEP Analysis & Solution. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. . Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. This is why theyre using A.I to improve their products and encourage more sales. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. PESTLE stands for: P - Political. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. Article. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. multiple grocers and impulse retail channels. - Likelihood of Entering into an Armed Conflict From the information in the Note on the U.S. Chocolate Market case study, I dont think there is a likelihood of country entering into an armed conflict with a neighboring country. 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. Strategy planning process often requires five steps Hence, Cadbury and its range of products are now owned by the American confectionary giant. According to Michael Porter organizational performance is to large extend determined by various industry forces. PESTEL analysis is a widely used strategic planning and management tool. 5. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . E - Environmental. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. Since then, chocolate and Cadbury have been part of the same sentence. 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. . Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . Then they scorned the dollar. Introduction 2. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. PESTEL analysis is mainly the assessment of macro environment factors. 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. 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. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Save my name, email, and website in this browser for the next time I comment. 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. Chocolate Hawkins should be careful about the history of forex risk before entering new market. The Hershey Company is adopting new technology to create better treats. 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 - 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. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. 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. Secondly governments from all parties adhere to the treaties made by the previous governments. Introduction PESTLE ANALYSIS and 5 FORCES ANALYSIS CHOCOLATE CONFECTIONERY PESTLE Analysis Although it has been nearly 4 years since the destruction of the twin towers in the US, terrorism remains a very real threat in much of the world, and a powerful political and economic influence on business. 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. 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. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Gourmet business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. SWOT analysis of Amul Chocolates. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. 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. Chocolate ingredients are more expensive. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Market share was divided among mass-market, gourmet, and cause-related manufacturers. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. Brazil Chocolate Market Analysis. Cadbury is identical with the consumption of chocolate on a universal basis. - 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. If possible, the company plans to add this A.I technology to every one of their lines. -Kew raw materials are sourced from local suppliers. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. 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. 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. 2. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. Solutions. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. 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. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in 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 . In Asia authority is respected while in west it is something to rebel against. Switzerland is one of the largest economies in the world. - 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. Yasemin Oraman. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities.
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