pestle analysis chocolate industry

Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. 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. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. - Mobile Phone & Internet Penetration Chocolate Gourmet should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. 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 . For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . Analyze Strengths and Weaknesses of Chocolate Hawkins. Expert Solution. 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). Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. Cadbury is a well-known producer and distributor of chocolate and milk-based products. T - Technological. Cadbury is identical with the consumption of chocolate on a universal basis. 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. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. 2. 988 Words4 Pages. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. For example most of EU countries now want the EU citizen data to be saved in EU countries only. - 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. 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. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. 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. - 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. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. Thus, disruption in the supply chain of raw materials . Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. An even better option is Fair Trade Chocolate. Hersheys has experienced a fair bit of controversy. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. 2012). Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. 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. In 2000, 81% of U.S. adults consumed chocolate. The next element to address in the PESTEL analysis of Switzerland is the economic environment. Nestle 10. -Efforts to reduce consumption of water and energy and optimize transport routes. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Know More Tax rates were also terrible, according to Mr. Bilbrey. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. - 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. - 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 PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. In Asia authority is respected while in west it is something to rebel against. SWOT analysis of Amul Chocolates. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. Hersheys also adopted technology to move people further down the grocery aisle. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. 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. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . In doing so, theyre committed to being more transparent about the ingredients. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. What is PESTLE Analysis. Secondly governments from all parties adhere to the treaties made by the previous governments. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. When too heavy, additional ingredients go to waste. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. 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. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. In each of these locations, the sales were weaker. According to Michael Porter organizational performance is to large extend determined by various industry forces. There are four major factors identified to capsulate the different factors found from the different environmental influences. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. 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. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. PESTEL analysis is mainly the assessment of macro environment factors. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. PESTLE analysis of chocolate industry in JAPAN. -Environmental policy is very important to Lindt and Sprngli. Chocolate Gourmet can make strategies based on the stable political environment. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. 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. 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. 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. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. Skip to main content Other CIPD Websites CIPD UK CIPD Middle East CIPD Ireland People Profession CIPD Learning Hub People ManagementPM jobs Log in / Register Go to the home page However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. - 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 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. Objective 3. - 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. Market Segmentation 13. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. The snapshot of this . PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. 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 . Political factors: Government policies and regulations can have a significant impact on the confectionery industry. - 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. - 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. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. - 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. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. 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. Chocolate Hawkins should be careful about the history of forex risk before entering new market. Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. The company would benefit greatly by automating several elements of the supply chain. The company was founded in 1924 and has gained much popularity now. E - Environmental. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. It is also imperative to use technology to create competitive advantage in the industry. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. For example Trump not standing by US commitments created an environment of uncertainty. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. 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. E - Economic. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Cadbury 11. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. As population is ageing it will require less tech intensive products. Over one hundred million residents live in Japan and are forced to live in specific locations. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. 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. . - 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. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. L - Legal. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. These factors are Political, Legal, Economic and Social. Recommended: How to write a PEST analysis. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. Major Players 8. Luckily for the company, things turned around in the first two quarters of 2018. - 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. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. 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. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. In highly hierarchical societies the power of decision making often reside at the top. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. 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. Psychographics and Demographics 14. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. - 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. Amul 9. 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. - 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. 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. The bond rating of national government is investment grade. If possible, the company plans to add this A.I technology to every one of their lines. 1. - Paris Climate Agreement and Commitment of National Government under the Agreement What are the commitments of the country under the Paris Agreement and what is the general level of consensus regarding Paris Climate Agreement in the country. - 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. 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. Strategy planning process often requires five steps Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). They include political policies and stability as well as trade, taxation and fiscal policies ". 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. 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. Cadbury is synonymous with chocolate consumption worldwide. PESTEL analysis is mainly the assessment of macro environment factors. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 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 . "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. Technology is fast disrupting business models across various industries. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. - 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.

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