According to Michael Porter organizational performance is to large extend determined by various industry forces. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Yasemin Oraman. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. 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. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. 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 . - 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. Mars Incorporated. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. - 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. Chocolate industry Presentation 1. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. Chocolate ingredients are more expensive. Definition of PESTEL / PEST / STEP Analysis. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. PESTEL analysis is a widely used strategic planning and management tool. 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. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. 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. 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). Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. Its installed specifically for their Twizzler candies. 4. 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. Introduction 2. Chocolate Gourmet can make strategies based on the stable political environment. 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. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. 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. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. -Efforts to reduce consumption of water and energy and optimize transport routes. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Chocolate Gourmet should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. Cadbury is a well-known producer and distributor of chocolate and milk-based products. 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. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. 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%. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. As population is ageing it will require less tech intensive products. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. Analyze Strengths and Weaknesses of Chocolate Gourmet. Your email address will not be published. With so many chocolate options and new additions for 2018, Mr. Buck seemed confident in the variety they offered, as well as the new marketing campaigns launched for the products. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. - 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. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. Save my name, email, and website in this browser for the next time I comment. environmental. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. The UK chocolate market is the biggest in all European market. PESTLE analysis of chocolate industry in JAPAN. -Environmental policy is very important to Lindt and Sprngli. 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. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. The A.I transmits data to the cloud. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. - 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. . - 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. Chocolate Gourmet 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 Gourmet. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . The bond rating of national government is investment grade. 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. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. This technology could be adopted for Hersheys other products, particularly with chocolate. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. 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. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Market Segmentation 13. 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 . 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. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Often companies enter the arena without requisite infrastructure to support the technology oriented model. 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. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. Expert Solution. 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. 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. Chocolate Gourmet should be careful about the history of forex risk before entering new market. They're advanced in telecommunications yet follow a patriarchal family system. - Democracy & Other Democratic Institutions According to Linda A. Hill, Alison Berkley Wagonfeld the democratic institutions are needed to be strengthened further so that business such as Chocolate Hawkins can thrive in an open, transparent and stable political environment. 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. Feel free to connect with us if you need business research. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. 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. Chocolate in a Bloom 6. SWOT analysis of Cadbury 12. Today, we'll study the pestle analysis of UK. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. PESTEL analysis is mainly the assessment of macro environment factors. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. PESTLE analysis of chocolate industry in JAPAN. For example Trump not standing by US commitments created an environment of uncertainty. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. Chocolate Industry Contents Titles 1. For example Uber employment system is not consistent with French laws and it is facing challenges in the 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. 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. Net sales ($1,751.6 million) were an increase of 5.3 percent. Published by HBR Publications. Tax rates were also terrible, according to Mr. Bilbrey. View. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Some of the technology trends that are impacting the macro environment are developments in artificial intelligence, use of machine learning and big data analytics to predict consumer behavior, growing importance of platforms over service providers etc. E - Environmental. SWOT analysis of Amul Chocolates. Published by HBR Publications. Here are some facts and figures about the beverage industry: The global beverage market size was valued at $1.45 trillion in 2020, and is projected to grow at a CAGR of 6.6% from 2021 to 2028. - 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. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . The top corporate tax rates are . The total retail value of the U.S. market for chocolate was estimated at $13.7 billion in 2002, a 10.2% increase from 1998. This is where the PESTEL analysis comes in handy as a useful tool for identifying the external factors that could affect the chocolate industry in the UK. PESTEL Analysis, SWOT Analysis and Risk Analysis of Egypt Egypt PESTEL Analysis This report covers Egypt 's PESTEL (political, economic, social, technological, environmental and legal) analysis. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. Add if theyre not, then poor sales are obviously their fault right? In Asia authority is respected while in west it is something to rebel against. Some of the legal factors that may impact the chocolate industry in the UK include: Some environmental factors that may affect the chocolate industry in the UK include climate change and its impact on cocoa production, deforestation and habitat destruction in cocoa-growing regions, resource consumption and waste generation in the manufacturing process, and the environmental impact of packaging and transportation. The next element to address in the PESTEL analysis of Switzerland is the economic environment. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. Sep 2014. Article. - Consumer Protection Laws Chocolate Hawkins needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. PESTEL analysis is mainly the assessment of macro environment factors. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Being a specialty retailer of home dcor and gifts, their primary products are . 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. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. 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. And to also use simpler ingredients for planet sustainability. Technology is fast disrupting business models across various industries. - 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. 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. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. At EMBA PRO, Chocolate Gourmet can borrow cheaply under such circumstances. 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. Foreign currency exchange rates were insignificant in the second quarter. 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. 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. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Cadbury is synonymous with chocolate consumption worldwide. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. 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? Japan is a small, but articulate, country. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. 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. - 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. Many US companies have incurred losses in Mexico in regular forex crisis in that country. It is also imperative to use technology to create competitive advantage in the industry. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. - 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. This analysis is also performed to assess the potential of a new market. The first Cadbury shop was opened in . INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. On the other hand, Nestle has a better record of recycling. - 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. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. In this section, we present a brief analysis of each element in relation to the . L - Legal. - 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. For example Uber employment system is not consistent with French laws and it is facing challenges in 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. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. 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. Since then, chocolate and Cadbury have been part of the same sentence. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. Raw material prices: Fluctuations in the prices of cocoa, sugar, and other ingredients can affect the cost of production and ultimately the price of chocolate products. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights.