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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. They're advanced in telecommunications yet follow a patriarchal family system. Chocolate Hawkins should be careful about the history of forex risk before entering new market. Chocolate consumption in India is low per capita consumption in urban India is estimated Macroeconomics is the study of large-scale economic elements, often relating to countries as a whole.The factors this analysis represents are political, economic, social, technological, legal and environmental. 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. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. 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. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Recommended: How to write a PEST analysis. E - Environmental. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. In 2015, the Hersheys Company surfed upon a sea of negatives. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. 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. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. Definition of PESTEL / PEST / STEP Analysis. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 2006. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. 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. 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. - Nature of Social Contract between Government & Society Before entering into a market Chocolate Hawkins needs to understand the nature of social contract between government and society. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. 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? In 2000, 81% of U.S. adults consumed chocolate. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. Cost Based Pricing could be a bad strategy under such conditions. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. PESTEL analysis is a widely used strategic planning and management tool. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. 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. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. Chocolate Gourmet can make strategies based on the stable political environment. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. Chocolate in a Bloom 6. This will help in better predicting the environment policy of the country. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. (Child Labor and Slavery in the Chocolate Industry, 2014). This technology could be adopted for Hersheys other products, particularly with chocolate. 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. - Business Laws Before entering into new market Chocolate Hawkins has to assess what are the business laws and how they are different from home market. Know More The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. It is also imperative to use technology to create competitive advantage in the industry. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . To them, Americans have the luxury of buying several premium chocolates. 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. - 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. - 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. Chocolate ingredients are more expensive. 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. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. Many US companies have incurred losses in Mexico in regular forex crisis in that country. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). While also keeping the ingredients simple to maintain environmental sustainability. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Chocolate Industry 5. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Table two below presents a PESTLE analysis for the industry Nestl are present . 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. 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. In 2011, it is seen that major chocolate . Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. Cadbury 11. Being a specialty retailer of home dcor and gifts, their primary products are . Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. 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. 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. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. - 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. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. - 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. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. 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. Conducting a PESTLE analysis of the confectionery industry can help businesses operating in this sector to identify potential opportunities and threats, and to develop strategies to mitigate risks and capitalize on opportunities. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. Yasemin Oraman. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. PESTEL analysis is mainly the assessment of macro environment factors. 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. Often companies enter the arena without requisite infrastructure to support the technology oriented model. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. - 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. 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. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. Hersheys has experienced a fair bit of controversy. 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. The A.I transmits data to the cloud. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. Required fields are marked *. For example Trump not standing by US commitments created an environment of uncertainty. When too heavy, additional ingredients go to waste. In this section, we present a brief analysis of each element in relation to the . - Likelihood of Entering into an Armed Conflict From the information in the Note on the U.S. Chocolate Market case study, I dont think there is a likelihood of country entering into an armed conflict with a neighboring country. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. 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. - 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. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. E - Economic. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. . Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. 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. -Kew raw materials are sourced from local suppliers. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. 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. 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 . we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. Over one hundred million residents live in Japan and are forced to live in specific locations. SWOT analysis of Amul Chocolates. The Hershey Company is adopting new technology to create better treats. Since then, chocolate and Cadbury have been part of the same sentence. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. 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 . In one respect, Cadbury was born as a result of social factors. 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. - 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. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. Product Positioning 15. 5. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Then they scorned the dollar. - 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. multiple grocers and impulse retail channels. - 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 top corporate tax rates are . - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. -Recycled, recyclable and biodegradable packaging. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Cadbury is identical with the consumption of chocolate on a universal basis. Save my name, email, and website in this browser for the next time I comment. T - Technological. It first sold its items in United States in 1905. - 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. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. 2012). Global Chocolate Market - offers growth, outlook, trends, shares, Industry Analysis, opportunities, Key Players Forecast 2019 to 2025 IND: (+91) 949418 5556 , USA: (+1) 408-915-5456 sales@envisioninteligence.com 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. Strategy planning process often requires five steps Your email address will not be published. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. - 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. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. 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. Available to download is a free sample file of the Chocolate Market report PDF.