The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. 3. PESTLE stands for: P - Political. - 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. For example most of EU countries now want the EU citizen data to be saved in EU countries only. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. According to Michael Porter organizational performance is to large extend determined by various industry forces. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Hawkins business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. Save my name, email, and website in this browser for the next time I comment. Understanding the PESTLE Analysis for Cadbury - MyAssignmenthelp.com Nestle: Macro Environment and Micro Environment Analysis - Phdessay 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. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. 988 Words4 Pages. The Hershey Company is adopting new technology to create better treats. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. Chocolate ingredients are more expensive. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. Expert Solution. - 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. Ethical and sustainable sourcing: There is increasing concern among consumers about the environmental and social impact of chocolate production, including issues related to child labor, deforestation, and fair trade. This analysis is also performed to assess the potential of a new market. 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. On the other hand, Nestle has a better record of recycling. Digital Chocolate case study (referred as Chocolate Hawkins for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Organizational Development and strategic management. Know More - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. PESTEL Analysis of Chocolate Confections Corporation Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. 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. - 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. - Consumer Disposable Income The household income of the country has increased constantly in the last decade and half, compare to the USA market where household income is still below 2007 levels and not increased in real terms since early 1980s. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. If the legal system is not strong then Chocolate Hawkins 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. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. Opening shop in the early 19 th century, 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. Chocolate in China: Enter the Sweet Chocolate Market Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. Secondly governments from all parties adhere to the treaties made by the previous governments. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. Hersheys has experienced a fair bit of controversy. Yasemin Oraman. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. 1 . MBA PESTEL : Note on the U.S. Chocolate Market PESTEL / PEST Analysis Cost Based Pricing could be a bad strategy under such conditions. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. Sep 2014. 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. Since then, chocolate and Cadbury have been part of the same sentence. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. Tax rates were also terrible, according to Mr. Bilbrey. Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. PEST Analysis of the Hershey Company: Major Setbacks and the Step into A.I. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. In doing so, theyre committed to being more transparent about the ingredients. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. Table two below presents a PESTLE analysis for the industry Nestl are present . we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - 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. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. The first Cadbury shop was opened in . Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. Article. 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. The snapshot of this . To them, Americans have the luxury of buying several premium chocolates. PDF The Highs and Lows of Startups in The Cannabis Industry: a Pestle -Kew raw materials are sourced from local suppliers. What is PESTLE Analysis. What Is a PESTLE Analysis? Factors, Examples and Uses Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . 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. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. - 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. 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. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. Business Analysis: Kirkland. We will make special emphasis on Cadbury UK, as this is where the company originally began. - 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. - 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. Its installed specifically for their Twizzler candies. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. PESTLE Analysis: The Macro-Environmental Analysis Explained - Consulterce - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. 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. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. - 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. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System Pest analysis of chocolate industry Free Essays | Studymode Cadbury PESTLE Analysis, as Smooth as It's Chocolate Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. SWOT analysis of Cadbury 12. Many US companies have incurred losses in Mexico in regular forex crisis in that 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. 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. Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. - 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. South Africa: Chocolate Confectionery Market and the - market research - Focus & Spending on Renewable Technologies How much of the budget is spend on renewable energy sources and how Chocolate Hawkins can make this investment as part of its competitive strategy. Mars Incorporated PESTEL Analysis - Case48 While also keeping the ingredients simple to maintain environmental sustainability. Your email address will not be published. Major Players 8. Pestle Analysis Of Confectionery Industry Free Essay Example - PaperAp.com 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. 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. Chocolate Gourmet should be aware of presence of such practices in a country. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. 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. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. Lindt & Sprngli SWOT & PESTLE Analysis | SWOT & PESTLE PEST analysis of Afghanistan The A.I transmits data to the cloud. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. According to Michael Porter organizational performance is to large extend determined by various industry forces. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. Then with the blame game where everything was the culprit for poor sales in 2015. PESTEL analysis of Switzerland - www.howandwhat.net E - Environmental. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. View. Economic Status. Brazil Chocolate Market Analysis - Industry Report - Trends, Size & Share Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Global Chocolate Market - Size, Outlook, Trends and Forecasts (2019 - 2025) For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. 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. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. - 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. Chocolate Industry 5. Being a specialty retailer of home dcor and gifts, their primary products are . Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. The top corporate tax rates are . we specialize at providing professional PESTEL analysis & other strategic management MBA resources. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Japan is a small, but articulate, country. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. 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. 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. -Efforts to reduce consumption of water and energy and optimize transport routes. An even better option is Fair Trade Chocolate. Brazil Chocolate Market Analysis. Attitude towards immigration has come under sharp focus. Chocolate Gourmet can borrow cheaply under such circumstances. There is consistency in both policy making and implementations of those policies. In PESTEL analysis, you develop a detailed description of a company's macro-environment in terms of political, economic, socio-cultural, technological, environmental and legal factors as well as their effects. 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. 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%. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. Switzerland is one of the largest economies in the world. Many US companies have incurred losses in Mexico in regular forex crisis in that country. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. Chocolate Industry Analysis - UKEssays.com The gourmet category was expected to grow as consumers incorporated more expensive gourmet foods into their diets, a trend beginning with the beer, wine, coffee, cheese, and ice cream industries. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. Introduction 2. This is why theyre using A.I to improve their products and encourage more sales. South Africa Market Research Reports Industry Analysis and Trends
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