pestle analysis chocolate industry

- Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. This will help in better predicting the environment policy of the country. 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. 3. Chocolate industry Presentation 1. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. 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. - 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. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. According to Michael Porter organizational performance is to large extend determined by various industry forces. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. environmental. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. Which dollar? Table two below presents a PESTLE analysis for the industry Nestl are present . Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. 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 . It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. Hersheys has dedicated commitments in social responsibility. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. 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. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. 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. In Asia authority is respected while in west it is something to rebel against. Analyze the Chocolate Hawkins 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. - 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. To them, Americans have the luxury of buying several premium chocolates. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. In highly hierarchical societies the power of decision making often reside at the top. - 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. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. 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. Political environment and other factors not only impact the cost of doing business but also long term sustainability. 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 Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. 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. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. 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. Hawkins wondered how to guide his company into this new area of social gaming without losing any of the tremendous creative momentum the team had built over the previous years. Then with the blame game where everything was the culprit for poor sales in 2015. Switzerland is one of the largest economies in the world. Being a specialty retailer of home dcor and gifts, their primary products are . Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. 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. The snapshot of this . Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. Chocolate consumption in India is low per capita consumption in urban India is estimated The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. Hersheys has experienced a fair bit of controversy. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. multiple grocers and impulse retail channels. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. Available to download is a free sample file of the Chocolate Market report PDF. In 2000, 81% of U.S. adults consumed chocolate. Thus, disruption in the supply chain of raw materials . One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. - 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. Analyze Strengths and Weaknesses of Chocolate Hawkins. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. Skip to main content Other CIPD Websites CIPD UK CIPD Middle East CIPD Ireland People Profession CIPD Learning Hub People ManagementPM jobs Log in / Register Go to the home page Foreign currency exchange rates were insignificant in the second quarter. - 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. - 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. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. T - Technological. 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. But conversely, it will also create new employment opportunities in countries like India. - 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. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. Expert Solution. Net sales ($1,751.6 million) were an increase of 5.3 percent. 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. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. But even then, recession did play its part as the company managed only to hit the lower end of its 4%-6% revenue for 2009, the peak of the recession. 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. But this strategy entails risks when interest rate will go up. In each of these locations, the sales were weaker. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. 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. 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. 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. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. - 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 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. - 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. - 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. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. PESTEL analysis is mainly the assessment of macro environment factors. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate 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. According to Michael Porter organizational performance is to large extend determined by various industry forces. Market share was divided among mass-market, gourmet, and cause-related manufacturers. - 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. We will make special emphasis on Cadbury UK, as this is where the company originally began. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. Technology is fast disrupting business models across various industries. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. Chocolate Industry in India 7. 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. 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. - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. Research Methodology 4. Some of the economic factors that Chocolate Gourmet 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. Secondly governments from all parties adhere to the treaties made by the previous governments. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. E - Economic. - 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. - 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. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. Chocolate Industry Contents Titles 1. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. S - Social. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. As population is ageing it will require less tech intensive products. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. 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? The American, Brazilian and Chinese dollars. Chocolate Gourmet should be careful about the history of forex risk before entering new market. Chocolate Hawkins should be careful about the history of forex risk before entering new market. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. 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. In 2009, Hawkins was eager for Digital Chocolate to start developing new types of mobile games that could be played by multiple players over a period of time. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. - 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. Hence, Cadbury and its range of products are now owned by the American confectionary giant. 2. PESTEL analysis is mainly the assessment of macro environment factors. Chocolate Hawkins can make strategies based on the stable political environment. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. Many US companies have incurred losses in Mexico in regular forex crisis in that country. 4. This will help in better predicting the environment policy of the country. - 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. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK.

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