pestle analysis chocolate industry
SWOT analysis of Cadbury 12. Chocolate Industry 5. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). PEST ANALYSIS The PEST analysis is a useful tool for understanding market growth or decline and as such the position potential and direction for a business. This is why theyre using A.I to improve their products and encourage more sales. S - Social. Which dollar? The rest of the billions of bottles end up polluting the ocean and endangering sea life. - 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. When too heavy, additional ingredients go to waste. (Child Labor and Slavery in the Chocolate Industry, 2014). The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. PESTLE analysis. In highly hierarchical societies the power of decision making often reside at the top. - 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. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. - 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. 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. - 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. 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. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Being a specialty retailer of home dcor and gifts, their primary products are . - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. Chocolate ingredients are more expensive. environmental. On the other hand, Nestle has a better record of recycling. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. 988 Words4 Pages. 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 . 1 . The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. Published by HBR Publications. - Nature of Social Contract between Government & Society Before entering into a market Chocolate Hawkins needs to understand the nature of social contract between government and society. 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. 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 . 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. 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 requires less temperature and energy to produce (unlike non-raw chocolate), and thatll also bring a smile to the faces of eco-friendly consumers. And to also use simpler ingredients for planet sustainability. And although theyre doing better financially in 2018 compared to the disastrous year of 2015, the company is not on the hunt to increase expenses just yet. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Gourmet. Tax rates were also terrible, according to Mr. Bilbrey. - 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. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. 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. 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. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. GDP of Afghanistan in 2019 was 19,101 billion $. Chocolate Gourmet can leverage such a situation to hire the best people in business. Chocolate Hawkins can make strategies based on the stable political environment. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. In Asia authority is respected while in west it is something to rebel against. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. The American, Brazilian and Chinese dollars. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. Strategy planning process often requires five steps Sep 2014. The UK chocolate market is the biggest in all European market. 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. 2012). Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. Hence, Cadbury and its range of products are now owned by the American confectionary giant. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Analyze Strengths and Weaknesses of Chocolate Hawkins. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. According to Michael Porter organizational performance is to large extend determined by various industry forces. For example most of EU countries now want the EU citizen data to be saved in EU countries only. The company would benefit greatly by automating several elements of the supply chain. The bond rating of national government is investment grade. 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. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. - 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 Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. Cadbury 11. 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. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. Other factors may include regulations related to sustainability and greenhouse gas emissions, consumer demand for ethically and sustainably produced products, and the availability and cost of renewable energy sources. Market share was divided among mass-market, gourmet, and cause-related manufacturers. Add if theyre not, then poor sales are obviously their fault right? Mars Incorporated. 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. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. 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. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. According to Michael Porter organizational performance is to large extend determined by various industry forces. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. 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 . 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. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Some political factors that can affect the chocolate industry in the UK include: Trade policies: Changes in trade policies and tariffs can affect the cost and availability of raw materials, as well as the export and import of finished chocolate products. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. 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. 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%. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). Free Summary Report This report contains the table contents only. All Rights Reserved, Twitter PESTLE Analysis: 6 Notable Factors Affecting the Social Network, How to Pursue a Career in Cybersecurity: 7 Professional Tips to Follow, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System At EMBA PRO, Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. Chocolate Hawkins should be careful about the history of forex risk before entering new market. Required fields are marked *. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. - 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. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. 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. Since then, chocolate and Cadbury have been part of the same sentence. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. . 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 US companies have incurred losses in Mexico in regular forex crisis in that country. 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. - 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. PESTLE stands for: P - Political. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . . Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. PESTLE analysis of chocolate industry in JAPAN. 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. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. 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. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. Table two below presents a PESTLE analysis for the industry Nestl are present . 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. To them, Americans have the luxury of buying several premium chocolates. - 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. 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.
