This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. 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. Then they scorned the dollar. The company has attempted to make amends by creating socially-conscious programs to help children in need. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. 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. -Efforts to reduce consumption of water and energy and optimize transport routes. Recommended: How to write a PEST analysis. Its installed specifically for their Twizzler candies. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. 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. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. The company would benefit greatly by automating several elements of the supply chain. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Called consumer trips by the company, buying in stores went down by 2 percent that year. 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. 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. 1 . Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. Technology is fast disrupting business models across various industries. 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. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. When too heavy, additional ingredients go to waste. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. 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. Hersheys has experienced a fair bit of controversy. For example Trump not standing by US commitments created an environment of uncertainty. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Secondly governments from all parties adhere to the treaties made by the previous governments. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. 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. View. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. Analyze Strengths and Weaknesses of Chocolate Hawkins. Required fields are marked *. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. There is consistency in both policy making and implementations of those policies. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. At EMBA PRO, Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. But this strategy entails risks when interest rate will go up. Definition of PESTEL / PEST / STEP Analysis. 3. . - 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. 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. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. - 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. 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. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. - 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. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool devised by Harvard professor Francis Aguilar to conduct a thorough external analysis of the business environment of any industry for which data is available. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. 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? By 2008, the company had expanded its operations into four countries and Digital Chocolate was one of the top developers of soloplayer games for standard mobile phones and iPhones. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. While also keeping the ingredients simple to maintain environmental sustainability. The company was founded in 1924 and has gained much popularity now. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. Political environment and other factors not only impact the cost of doing business but also long term sustainability. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. 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. In Asia authority is respected while in west it is something to rebel against. - 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. In highly hierarchical societies the power of decision making often reside at the top. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. 4. To them, Americans have the luxury of buying several premium chocolates. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. - 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. 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. 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. . Cadbury 11. 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. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. Analyze Strengths and Weaknesses of Chocolate Gourmet. Luckily for the company, things turned around in the first two quarters of 2018. Feel free to connect with us if you need business research. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. -Environmental policy is very important to Lindt and Sprngli. GDP of Afghanistan in 2019 was 19,101 billion $. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. 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. PESTLE stands for: P - Political. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Psychographics and Demographics 14. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. 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. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. - 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. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. 4. Hersheys also adopted technology to move people further down the grocery aisle. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. 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 . Cadbury is identical with the consumption of chocolate on a universal basis. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. 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 government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. Even though the global economic downturn did affect Cadburys expansion plans (owing to a reduction in disposable income of customers and other stakeholders), sales actually remained quiet steady. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. Feel free to connect with us if you need business research. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. 5. Add if theyre not, then poor sales are obviously their fault right? It is written by Linda A. Hill, Alison Berkley Wagonfeld and shed light on critical areas in field of Organizational Development, Creativity, Entrepreneurship, Leading teams, Product development that the protagonist in the case study is facing. In doing so, the companys machinery learned to adjust itself throughout the day. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Nestle 10. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Feb 20, 2023 (The Expresswire) -- "Liqueur Chocolate Market" new research report for [2023] provides a comprehensive overview, including market size, share, growth rate, PESTEL analysis, SWOT . The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. Introduction 2. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. - 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. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. Definition of PESTEL / PEST / STEP Analysis. Sep 2014. 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%. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. - 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. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. This is why theyre using A.I to improve their products and encourage more sales. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Full-text available. Chocolate industry Presentation 1. Many US companies have incurred losses in Mexico in regular forex crisis in that country. 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. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. - 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. The bond rating of national government is investment grade. The American, Brazilian and Chinese dollars. Being run by a Quaker family, their opposition to alcohol served as the basis of running a business that sold tea, coffee, cocoa, and liquid chocolate. This will help in better predicting the environment policy of the country. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. (Child Labor and Slavery in the Chocolate Industry, 2014). Japan is a small, but articulate, country. 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. Attitude towards immigration has come under sharp focus. - 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. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. Technology is fast disrupting business models across various industries. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. And to also use simpler ingredients for planet sustainability. 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). 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. Strategy planning process often requires five steps Australia is one of the world's most advanced developed countries mainly because of the economical strengths. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. Chocolate Gourmet can make strategies based on the stable political environment. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. Market Segmentation 13. Hersheys has dedicated commitments in social responsibility. 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. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. We will make special emphasis on Cadbury UK, as this is where the company originally began. 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 . Hence, Cadbury and its range of products are now owned by the American confectionary giant. Often companies enter the arena without requisite infrastructure to support the technology oriented model. - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. 3. 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. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. They include political policies and stability as well as trade, taxation and fiscal policies ". PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. The UK chocolate market is the biggest in all European market. 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. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. 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. 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.
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