Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. . This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. 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. 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. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. In highly hierarchical societies the power of decision making often reside at the top. Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. Looking forward, IMARC Group expects the market to reach US$ 4.1 Billion by 2028, exhibiting a growth rate (CAGR) of 8.8% during 2023-2028. Feel free to connect with us if you need business research. At EMBA PRO, Being a specialty retailer of home dcor and gifts, their primary products are . Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. Market share was divided among mass-market, gourmet, and cause-related manufacturers. - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. 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. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. The implication for Chocolate Gourmet is that it can boost sales of its product in short run but also expose Chocolate Gourmet to medium term forex and currency depreciation risks. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. - 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 speaks out against child labor and slave labor, while also using sustainable practices for the environment. 2. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins 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. 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. To them, Americans have the luxury of buying several premium chocolates. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. - Level of Acceptance of Technology in the Society Chocolate Hawkins has to figure out the level of technology acceptance in the society before launching new products. -Recycled, recyclable and biodegradable packaging. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. - 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. Hersheys current Company President and Chief Executive Officer, Michele Buck, has said the company will continue to invest in their core bands and build upon strategies to further drive growth. E - Environmental. Chocolate ingredients are more expensive. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Foreign currency exchange rates were insignificant in the second quarter. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. - 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. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. - Technology transfer and licensing issues for Chocolate Hawkins laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Chocolate Hawkins can avoid shakedowns and IPR thefts. 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 . Then they scorned the dollar. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. In doing so, theyre committed to being more transparent about the ingredients. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. Major Players 8. 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. The bond rating of national government is investment grade. Political environment and other factors not only impact the cost of doing business but also long term sustainability. - 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. This analysis is also performed to assess the potential of a new market. - 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. According to Jose Lopez, Nestle's Vice . It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. As population is ageing it will require less tech intensive products. It has decimated the culture of savings as people dont have enough to save. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. multiple grocers and impulse retail channels. Japan is a small, but articulate, country. 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. Chocolate Industry Contents Titles 1. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Feel free to connect with us if you need business research. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. Whereas it will reach USD 2.11 Bn by 2029 with a significant growth rate of 3.28% Chocolate is a very popular and sweet, food item made from cocoa beans. 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. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. Cadbury is synonymous with chocolate consumption worldwide. In 2011, it is seen that major chocolate . Thus, disruption in the supply chain of raw materials . Your email address will not be published. Many US companies have incurred losses in Mexico in regular forex crisis in that country. . Chocolate Industry in India 7. This will help in better predicting the environment policy of the country. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Since then, chocolate and Cadbury have been part of the same sentence. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. The A.I transmits data to the cloud. The snapshot of this . One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. But its still a business at the end of the day; higher returns are most important for its survival. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. Economic Status. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. 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. - Corporate Social Responsibilities Culture Are Chocolate Hawkins present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. 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. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. Know More Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. There is consistency in both policy making and implementations of those policies. 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. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Free Summary Report This report contains the table contents only. 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. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. 3. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. PESTEL analysis is mainly the assessment of macro environment factors. - 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. Cadbury is a well-known producer and distributor of chocolate and milk-based products. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. - Focus & Spending on Renewable Technologies How much of the budget is spend on renewable energy sources and how Chocolate Gourmet can make this investment as part of its competitive strategy. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. 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. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. 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. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. PESTLE stands for: P - Political. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. 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. 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. - 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. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. The company would benefit greatly by automating several elements of the supply chain. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". Brazil Chocolate Market Analysis. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Tax rates were also terrible, according to Mr. Bilbrey. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. The next element to address in the PESTEL analysis of Switzerland is the economic environment. - 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. 1 . Today, we'll study the pestle analysis of UK. (Child Labor and Slavery in the Chocolate Industry, 2014). 2. -Kew raw materials are sourced from local suppliers. On the other hand, Nestle has a better record of recycling. Analyze Strengths and Weaknesses of Chocolate Gourmet. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. The company was founded in 1924 and has gained much popularity now. - Political Governance System Based on the information provided in the Note on the U.S. Chocolate Market case study, it seems that the country have a stable political system. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. Available to download is a free sample file of the Chocolate Market report PDF. 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. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. It would focus on the macro-environmental factors that impact her growth and productivity. 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. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. 988 Words4 Pages. 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). 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. Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. In 2015, the company blamed American consumers for not buying more chocolate. Full-text available. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. 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. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. 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. - Research and Development Investment Levels If there is high level of investment in technology development sector then there are high chances of building a self sustaining ecosystem that drives innovation. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Solutions. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 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. 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. Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the 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. - Paris Climate Agreement and Commitment of National Government under the Agreement What are the commitments of the country under the Paris Agreement and what is the general level of consensus regarding Paris Climate Agreement in the country.