pestle analysis chocolate industry

Pestle analysis of confectionery industry. Pest analysis of It speaks out against child labor and slave labor, while also using sustainable practices for the environment. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. E - Economic. - 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. PESTLE ANALYSIS and 5 FORCES ANALYSIS - CHOCOLATE CONFECTIONERY 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 Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. - 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. PESTEL | Analyzing the macro-environment of your company - IONOS 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. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Published by HBR Publications. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Gourmet. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. There are four major factors identified to capsulate the different factors found from the different environmental influences. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. The first Cadbury shop was opened in . 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. 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. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. SWOT analysis of Cadbury 12. But even then, recession did play its part as the company managed only to hit the lower end of its 4%-6% revenue for 2009, the peak of the recession. 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. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. - 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. - 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. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. Definition of PESTEL / PEST / STEP Analysis. In 2000, 81% of U.S. adults consumed chocolate. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. As population is ageing it will require less tech intensive products. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. 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. - 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. 2006. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. 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. 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. The PESTLE Analysis of Chocolate Confectionery in the UK - Studentshare * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. 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. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. What Is a PESTLE Analysis? Factors, Examples and Uses - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. Switzerland is one of the largest economies in the world. 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. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. 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. - 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. In doing so, theyre committed to being more transparent about the ingredients. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. 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. 5. SWOT analysis of Amul Chocolates - Marketing91 If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. 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. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. View. Global Chocolate Market Size & Share Analysis Report, 2030 The American, Brazilian and Chinese dollars. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. Some of the legal factors that may impact the chocolate industry in the UK include: Some environmental factors that may affect the chocolate industry in the UK include climate change and its impact on cocoa production, deforestation and habitat destruction in cocoa-growing regions, resource consumption and waste generation in the manufacturing process, and the environmental impact of packaging and transportation. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. Examples Of Pestle Analysis Of The Philippines - 1354 Words | Bartleby Psychographics and Demographics 14. Rocky Mountain Chocolate Factory, Inc. PESTEL & Environment Analysis Macroeconomics is the study of large-scale economic elements, often relating to countries as a whole.The factors this analysis represents are political, economic, social, technological, legal and environmental. In each of these locations, the sales were weaker. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. PESTLE Analysis of Nestle in light of Industry 4.0 Political and Economic Forces Politcal Factor Sustainable Politics: PESTLE Analysis Industry-4.0 efforts in UK are politically driven, commitment from the top is a motivating factor for companies to adopt new practices. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. Hence, Cadbury and its range of products are now owned by the American confectionary giant. Technology is fast disrupting business models across various industries. - 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. -Kew raw materials are sourced from local suppliers. Save my name, email, and website in this browser for the next time I comment. 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. 1 . They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Brazil Chocolate Market Analysis - Industry Report - Trends, Size & Share Health trends: The UK government has launched several campaigns in recent years to promote healthy eating, which may impact the marketing and consumption of chocolate products. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. Pestle Analysis Korean Chocolate Industry - Term Paper As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Conducting a PESTLE analysis of the confectionery industry can help businesses operating in this sector to identify potential opportunities and threats, and to develop strategies to mitigate risks and capitalize on opportunities. 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. Mars Incorporated PESTEL Analysis - Case48 Analyze Strengths and Weaknesses of Chocolate Hawkins. Traceability: Technology such as barcoding, RFID (radio frequency identification), and blockchain are being used to enhance traceability of the chocolate supply chain, from cocoa bean to finished product. Those that cant afford it are also a problem because well, theyre not buying the chocolate. Available to download is a free sample file of the Chocolate Market report PDF. Research Methodology 4. On the other hand, Nestle has a better record of recycling. Chocolate Gourmet can borrow cheaply under such circumstances. Cadbury PESTLE Analysis, as Smooth as It's Chocolate 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. 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 . It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. A Chocolate Industry Project Report - SlideShare Hersheys current Company President and Chief Executive Officer, Michele Buck, has said the company will continue to invest in their core bands and build upon strategies to further drive growth. The implication for Chocolate Gourmet is that it can boost sales of its product in short run but also expose Chocolate Gourmet to medium term forex and currency depreciation risks. -Recycled, recyclable and biodegradable packaging. PESTLE analysis of chocolate industry in JAPAN. - WizEdu Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. This is why theyre using A.I to improve their products and encourage more sales. Sep 2014. Introduction 2. South Africa Market Research Reports Industry Analysis and Trends Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. - 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. At EMBA PRO, The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Secondly governments from all parties adhere to the treaties made by the previous governments. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. Pestle on chocolate industry in the uk Free Essays | Studymode - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. Global Chocolate Market - Size, Outlook, Trends and Forecasts (2019 - 2025) Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. But its still a business at the end of the day; higher returns are most important for its survival. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. - 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. 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. Chocolate Gourmet can leverage such a situation to hire the best people in business. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. Show . While also keeping the ingredients simple to maintain environmental sustainability. 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. Chocolate ingredients are more expensive. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. The company was founded in 1924 and has gained much popularity now. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Today, we'll study the pestle analysis of UK. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. PESTLE analysis of chocolate industry in JAPAN. . Strategy planning process often requires five steps And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. Technology is fast disrupting business models across various industries. Its installed specifically for their Twizzler candies. Feel free to connect with us if you need business research. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. - 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. - 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. PESTLE Analysis Food Industry United Kingdom (UK) Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. PESTEL Analysis of Chocolate Confections Corporation Foreign currency exchange rates were insignificant in the second quarter. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. - 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. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. PEST Analysis of the Hershey Company: Major Setbacks and the Step into A.I. For example Trump not standing by US commitments created an environment of uncertainty. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. The A.I transmits data to the cloud.