In Asia authority is respected while in west it is something to rebel against. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. 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. South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa, with over 1,739 miles of coastline that stretches along the South Atlantic and Indian oceans. - 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. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. In 2011, it is seen that major chocolate . Brazil Chocolate Market Analysis. The top corporate tax rates are . Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Hence, Cadbury and its range of products are now owned by the American confectionary giant. Research Methodology 4. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. In 2015, the Hersheys Company surfed upon a sea of negatives. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. 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. 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. Table two below presents a PESTLE analysis for the industry Nestl are present . - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Psychographics and Demographics 14. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Strategy planning process often requires five steps 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. 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. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. - 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. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. 3. Chocolate Gourmet can borrow cheaply under such circumstances. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. - 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. Ethical and sustainable sourcing: There is increasing concern among consumers about the environmental and social impact of chocolate production, including issues related to child labor, deforestation, and fair trade. 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 . What is PESTLE Analysis. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. - 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. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. Net sales ($1,751.6 million) were an increase of 5.3 percent. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. - 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. In 2015, the company blamed American consumers for not buying more chocolate. By 2008, the company had expanded its operations into four countries and Digital Chocolate was one of the top developers of soloplayer games for standard mobile phones and iPhones. 4. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. SWOT analysis of Cadbury 12. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Hersheys has experienced a fair bit of controversy. But its still a business at the end of the day; higher returns are most important for its survival. 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. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. PEST analysis is used to control the external factors of what happens outside the . 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. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . Japan is a small, but articulate, country. 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. 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. Being a specialty retailer of home dcor and gifts, their primary products are . Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Your email address will not be published. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. There is consistency in both policy making and implementations of those policies. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. - 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. 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. 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. - 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. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. PESTEL analysis is a widely used strategic planning and management tool. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Hawkins business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. Hersheys also adopted technology to move people further down the grocery aisle. 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. 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. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. Cadbury is a well-known producer and distributor of chocolate and milk-based products. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. Full-text available. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. Tax rates were also terrible, according to Mr. Bilbrey. 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? 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. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. In this section, we present a brief analysis of each element in relation to the . It would focus on the macro-environmental factors that impact her growth and productivity. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. PESTLE stands for: P - Political. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . - 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. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. 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. - 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. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. 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. - 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. - 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. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. 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 Gourmet needs to understand the nature of social contract between government and society. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. 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. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. 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. Mars Incorporated. All Rights Reserved, Political factors: The politics and policies of chocolate, Economic factors: All problems, all the time, Social factors: A dedication to social responsibility and favor, then poor sales are obviously their fault, adopting new technology to create better treats, add this A.I technology to every one of their lines, the consumer pushback against their usage of the Ivory Coast (and potentially child labor), 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. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Different countries have different attitude towards health and safety so it is better for Chocolate Gourmet to conduct a thorough research before entering the market. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. 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 . As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. -Efforts to reduce consumption of water and energy and optimize transport routes. . They're advanced in telecommunications yet follow a patriarchal family system. Free Summary Report This report contains the table contents only. 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. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. - 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. Chocolate Hawkins can make strategies based on the stable political environment. - 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. Then they scorned the dollar. The rest of the billions of bottles end up polluting the ocean and endangering sea life. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 1 . Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. It first sold its items in United States in 1905. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . . Introduction 2. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. At EMBA PRO, Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. And even before that in 2007, Cadbury Schweppes decided to outsource a major portion of its accounting and HR to an Indian firm in the face of increasing operational expenses and reducing margins. 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. On the other hand, Nestle has a better record of recycling. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. Know More Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. Chocolate Gourmet can leverage such a situation to hire the best people in business. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental 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 imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. 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. PESTLE Analysis for Cannabis Startups PESTLE is the acronym for a framework which analyzes the Political, Economic, Social, Technological, Legislative, and Environmental (mostly in the ecological sense) factors that have direct and indirect impacts on a business. T - Technological. It is also imperative to use technology to create competitive advantage in the industry. Chocolate Gourmet should be careful about the history of forex risk before entering new market. PESTLE analysis. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. The company would benefit greatly by automating several elements of the supply chain. The first Cadbury shop was opened in . Add if theyre not, then poor sales are obviously their fault right? These factors are Political, Legal, Economic and Social. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. -Kew raw materials are sourced from local suppliers. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Chocolate Hawkins should be careful about the history of forex risk before entering new market. 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. - 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. According to Michael Porter organizational performance is to large extend determined by various industry forces. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. 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. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. An even better option is Fair Trade Chocolate. 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. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Expert Solution. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Report Overview The global chocolate market size was estimated at USD 113.16 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.7% from 2022 to 2030. 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 . Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. 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 . - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products.
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