Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. In 2011, it is seen that major chocolate . MBA Skool InstallCourses Home Courses Concepts SWOT Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. 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. (DOC) BERRYL"S PESTEL ANALYSIS | Noorazian Noordin - Academia.edu 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. In Asia authority is respected while in west it is something to rebel against. An even better option is Fair Trade Chocolate. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. (PDF) Pestle Analysis Introduction - ResearchGate Pestle Analysis Of Confectionery Industry Free Essay Example - PaperAp.com - 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. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. 2. Amul Chocolates also . Choosing the vision, mission and the reason of existence for Chocolate Hawkins. - 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. 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. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. Chocolate Industry Contents Titles 1. PEST Analysis of the Hershey Company: Major Setbacks and the Step into A.I. . INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. It has decimated the culture of savings as people dont have enough to save. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. The PEST analysis looks at four types of external environmental elements: P -Political factors in an economy include various forms of government intervention and political lobbying, such as . Psychographics and Demographics 14. Recommended: How to write a PEST analysis. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. - 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. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. 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. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. Feel free to connect with us if you need business research. PESTLE analysis | Factsheets | CIPD The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. Chocolate Hawkins can make strategies based on the stable political environment. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. What Is a PESTLE Analysis? Factors, Examples and Uses Technology is fast disrupting business models across various industries. But this strategy entails risks when interest rate will go up. PESTEL analysis of Switzerland - www.howandwhat.net Hence, Cadbury and its range of products are now owned by the American confectionary giant. PESTEL Analysis of Chocolate Confections Corporation In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. 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. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. Chocolate industry Presentation 1. - 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. Chocolate Gourmet can borrow cheaply under such circumstances. 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. Pest analysis of chocolate industry Free Essays | Studymode - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. 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. Which dollar? - 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. Since then, chocolate and Cadbury have been part of the same sentence. In highly hierarchical societies the power of decision making often reside at the top. 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. Nestle: Macro Environment and Micro Environment Analysis - Phdessay - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. But often in emerging countries these agencies delay the process as a tactic to extract bribes. PDF The Highs and Lows of Startups in The Cannabis Industry: a Pestle Being a specialty retailer of home dcor and gifts, their primary products are . - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. (PDF) A CONTEMPORARY APPROACH FOR STRATEGIC MANAGEMENT - ResearchGate - 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. 4. 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 . It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Definition of PESTEL / PEST / STEP Analysis. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. Chocolate Mould Market Share, Size Global Growth Analysis, T - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. Chocolate Gourmet should be careful about the history of forex risk before entering new market. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. 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. 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 . - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Chocolate Gourmet products and prices of overall products have remained sticky in the US market. In 2015, the Hersheys Company surfed upon a sea of negatives. 5. 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. 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. It would focus on the macro-environmental factors that impact her growth and productivity. PESTEL analysis is mainly the assessment of macro environment factors. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. Secondly governments from all parties adhere to the treaties made by the previous governments. Chocolate Industry Analysis - UKEssays.com 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.
Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. 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? - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. As population is ageing it will require less tech intensive products. If they were to save money here, itd be a higher return. The American, Brazilian and Chinese dollars. Brazil Chocolate Market Analysis - Industry Report - Trends, Size & Share Chocolate consumption in India is low per capita consumption in urban India is estimated - 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. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Nestle 10. - 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. In one respect, Cadbury was born as a result of social factors. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. PESTLE Analysis of Nestle | Business Management & Marketing 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). The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. Those that cant afford it are also a problem because well, theyre not buying the chocolate. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. 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%. The first Cadbury shop was opened in . Show . 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. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Save my name, email, and website in this browser for the next time I comment. Product Positioning 15. Then they scorned the dollar. multiple grocers and impulse retail channels. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. 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. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Technology is fast disrupting business models across various industries. This will help in better predicting the environment policy of the country. In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. In each of these locations, the sales were weaker. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. Mars Incorporated. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. Market-Analysis-ppt-Goya.pdf - INTERNATIONAL BUSINESS AND - 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. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. Foreign currency exchange rates were insignificant in the second quarter. Article. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. The next element to address in the PESTEL analysis of Switzerland is the economic environment. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. 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. - 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. 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. 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. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage
The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. Know More 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. - 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. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. - 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. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. 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. - 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. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. It first sold its items in United States in 1905. Online sales: The growth of e-commerce and online sales has encouraged many chocolate manufacturers in the UK to invest in online sales channels and digital marketing strategies. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins.