pestle analysis chocolate industry

In the context of the UK, the change of government from the Labour party to the Conservative/Liberal Democrat is bound to influence Cadburys operations. When too heavy, additional ingredients go to waste. 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. 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. The top corporate tax rates are . The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. 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. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. Available to download is a free sample file of the Chocolate Market report PDF. The Hershey Company is adopting new technology to create better treats. It first sold its items in United States in 1905. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. Strategy planning process often requires five steps The next element to address in the PESTEL analysis of Switzerland is the economic environment. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. 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 . Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. Solutions. 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 You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Digital Chocolate, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Digital Chocolate, 5C Marketing Analysis of Digital Chocolate, 4P Marketing Analysis of Digital Chocolate, Porter Five Forces Analysis and Solution of Digital Chocolate, Porter Value Chain Analysis and Solution of Digital Chocolate, Case Memo & Recommendation Memo of Digital Chocolate, Blue Ocean Analysis and Solution of Digital Chocolate, Marketing Strategy and Analysis Digital Chocolate, VRIO /VRIN Analysis & Solution of Digital Chocolate, PESTEL / STEP / PEST Analysis of Digital Chocolate, Case Study Solution of Digital Chocolate, SWOT Analysis and Solution of Digital Chocolate, USA TODAY: Pursuing the Network Strategy (B) PESTEL / PEST / STEP Analysis & Solution, Washington Post (B) PESTEL / PEST / STEP Analysis & Solution, Keeping Google "Googley" (Abridged) PESTEL / PEST / STEP Analysis & Solution, Unisys: The Merger of Burroughs and Sperry PESTEL / PEST / STEP Analysis & Solution, Telegraph Media Group: The Newspaper Is Dead, Long Live the (E), Change - A Work in Progress PESTEL / PEST / STEP Analysis & Solution, Wikipedia in the Spotlight PESTEL / PEST / STEP Analysis & Solution, Walt Disney's Dennis Hightower: Weaving Together the European Operations PESTEL / PEST / STEP Analysis & Solution, Warner Cable (B) PESTEL / PEST / STEP Analysis & Solution, Man Jit Singh at Sony Entertainment Television (A) PESTEL / PEST / STEP Analysis & Solution, Cisco Systems: Developing a Human Capital Strategy (A) PESTEL / PEST / STEP Analysis & Solution, Organizational Development / MBA Resources. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). SWOT analysis of Cadbury 12. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. 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. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. Chocolate ingredients are more expensive. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. The revenue in the chocolate market is projected to reach 340243.54 tons in 2022 and the market is expected to register a CAGR of 5.90% in terms of volume. Feel free to connect with us if you need business research. With almost 1.4 billion Chinese inhabitants and a growing middle-class, it is a wonderful opportunity for brands to conquer and retain a wide audience. Chocolate Gourmet should be careful about the history of forex risk before entering new market. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. 1 . 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. 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. Foreign currency exchange rates were insignificant in the second quarter. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. 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. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. Chocolate Industry Contents Titles 1. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. 988 Words4 Pages. Market share was divided among mass-market, gourmet, and cause-related manufacturers. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. Tax rates were also terrible, according to Mr. Bilbrey. 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. 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. Cost Based Pricing could be a bad strategy under such conditions. Cadbury is synonymous with chocolate consumption worldwide. The implication for Chocolate Hawkins is that it can boost sales of its product in short run but also expose Chocolate Hawkins to medium term forex and currency depreciation risks. T - Technological. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. 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. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. -Efforts to reduce consumption of water and energy and optimize transport routes. Attitude towards immigration has come under sharp focus. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. The company would benefit greatly by automating several elements of the supply chain. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. - 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. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. - 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. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. While also keeping the ingredients simple to maintain environmental sustainability. 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. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. 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. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Amul 9. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. View. The company has attempted to make amends by creating socially-conscious programs to help children in need. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. Table two below presents a PESTLE analysis for the industry Nestl are present . - 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. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. Business do face problem when the conflict is between public interest and proprietary technology similar to ruling in South Africa where government & judiciary allowed generic AIDS drug irrespective of patents of global companies. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. 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. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. 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. Cadbury 11. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. - 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. Know More The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. These factors are Political, Legal, Economic and Social. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . Definition of PESTEL / PEST / STEP Analysis. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". - Corporate Social Responsibilities Culture Are Chocolate Gourmet present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. The rest of the billions of bottles end up polluting the ocean and endangering sea life. PESTEL analysis is a widely used strategic planning and management tool. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. Definition of PESTEL / PEST / STEP Analysis. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. 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. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. A SWOT analysis of handbags, A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a strategic planning tool used to evaluate the internal and external factors that can impact the success, Your email address will not be published. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Chocolate Gourmet should do a primary research regarding how much time it often takes to conclude a court case in the country given the sort of legal challenges Chocolate Gourmet can face. The snapshot of this . Product Positioning 15. - Data Protection Laws Chocolate Gourmet needs to assess what are the data laws in the country and what it needs to do to comply with them. 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. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. It is also imperative to use technology to create competitive advantage in the industry. 2. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. PESTEL analysis is mainly the assessment of macro environment factors. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. 1. Show . Introduction 2. It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. Cadbury is a well-known producer and distributor of chocolate and milk-based products. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. They're advanced in telecommunications yet follow a patriarchal family system. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. Note on the U.S. Chocolate Market case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. In highly hierarchical societies the power of decision making often reside at the top. 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. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. 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?

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