pestle analysis chocolate industry pestle analysis chocolate industry

This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. - 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. PESTLE analysis. - 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. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. 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. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. 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. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. Chocolate Gourmet should be careful about the history of forex risk before entering new market. At EMBA PRO, This analysis is also performed to assess the potential of a new market. Then with the blame game where everything was the culprit for poor sales in 2015. Called consumer trips by the company, buying in stores went down by 2 percent that year. Save my name, email, and website in this browser for the next time I comment. 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. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. PESTEL analysis is mainly the assessment of macro environment factors. 3. (Child Labor and Slavery in the Chocolate Industry, 2014). For example Uber employment system is not consistent with French laws and it is facing challenges in the country. 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. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. - 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. 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. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. 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. Business Analysis: Kirkland. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Solutions. In PESTEL analysis, you develop a detailed description of a company's macro-environment in terms of political, economic, socio-cultural, technological, environmental and legal factors as well as their effects. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Chocolate industry Presentation 1. - 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. This technology could be adopted for Hersheys other products, particularly with chocolate. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. 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. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. 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. - 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. - 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. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. Market Segmentation 13. - 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. If possible, the company plans to add this A.I technology to every one of their lines. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. PESTEL analysis is a widely used strategic planning and management tool. 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 Introduction 2. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. Attitude towards immigration has come under sharp focus. 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. -Kew raw materials are sourced from local suppliers. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. In each of these locations, the sales were weaker. The UK chocolate market is the biggest in all European market. 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. 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. - 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. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. - 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. - 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. And to also use simpler ingredients for planet sustainability. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. 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. Chocolate Gourmet can leverage such a situation to hire the best people in business. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. The total retail value of the U.S. market for chocolate was estimated at $13.7 billion in 2002, a 10.2% increase from 1998. 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. These factors are Political, Legal, Economic and Social. 5. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. 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. It first sold its items in United States in 1905. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. - 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. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - 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. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. The first Cadbury shop was opened in . In doing so, theyre committed to being more transparent about the ingredients. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. 2012). - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. PESTEL analysis is mainly the assessment of macro environment factors. We will make special emphasis on Cadbury UK, as this is where the company originally began. 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. Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. -Environmental policy is very important to Lindt and Sprngli. 1 . Cadbury is a well-known producer and distributor of chocolate and milk-based products. When too heavy, additional ingredients go to waste. - 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. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. 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. 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. Hawkins wondered how to guide his company into this new area of social gaming without losing any of the tremendous creative momentum the team had built over the previous years. 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. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. - 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. Chocolate Industry in India 7. - 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. 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. 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PESTLE analysis of chocolate industry in JAPAN. Which dollar? Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. 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. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. 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. But often in emerging countries these agencies delay the process as a tactic to extract bribes. Factors that should be consider while launching a new product i.e Political, Economic, Sociological, Technological, Legal and Environmental and the questions we should take under Consideration Published by HBR Publications. In 2015, the company blamed American consumers for not buying more chocolate. 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. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. 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 . Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. 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. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. Feel free to connect with us if you need business research. Attitude towards immigration has come under sharp focus. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. According to Michael Porter organizational performance is to large extend determined by various industry forces. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. GDP of Afghanistan in 2019 was 19,101 billion $. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. Finally, technology has changed Cadburys production and packing process over the years, starting with the introduction of new brew machines to blend coffee and cocoa gains. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. 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? 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. T - Technological. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment.