Expert Solution. 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. 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. 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. Definition of PESTEL / PEST / STEP Analysis. Often companies enter the arena without requisite infrastructure to support the technology oriented model. PESTLE analysis. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. 2. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . 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. The top corporate tax rates are . - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Objective 3. Chocolate Industry Contents Titles 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. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. - 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. Chocolate Gourmet should be careful about the history of forex risk before entering new market. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. . Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. - 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. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. - 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. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. - 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. 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. - 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. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. 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. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. In 2000, 81% of U.S. adults consumed chocolate. 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. If possible, the company plans to add this A.I technology to every one of their lines. Being a specialty retailer of home dcor and gifts, their primary products are . For example Uber employment system is not consistent with French laws and it is facing challenges in the country. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Due to the COVID-19 pandemic, the global Insulin Delivery Devices market size is estimated to be worth USD 11340 million in 2022 and is forecast to a readjusted size of USD 14100 million by 2028 . Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. In this section, we present a brief analysis of each element in relation to the . 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. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. On the other hand, Nestle has a better record of recycling. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. 988 Words4 Pages. Business Analysis: Kirkland. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. - 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. -Recycled, recyclable and biodegradable packaging. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. 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. According to Michael Porter organizational performance is to large extend determined by various industry forces. 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 . While also keeping the ingredients simple to maintain environmental sustainability. -Efforts to reduce consumption of water and energy and optimize transport routes. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Gourmet. Chocolate consumption in India is low per capita consumption in urban India is estimated Market Segmentation 13. The company has attempted to make amends by creating socially-conscious programs to help children in need. Tax rates were also terrible, according to Mr. Bilbrey. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . 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. 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. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. 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%. 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 immigration has come under sharp focus. 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. - 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. Chocolate ingredients are more expensive. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. 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. The UK chocolate market is the biggest in all European market. Available to download is a free sample file of the Chocolate Market report PDF. It would focus on the macro-environmental factors that impact her growth and productivity. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. A Comprehensive Project report on Chocolate Industry Bhavik Parmar Follow Co-Founder And MD at KadiBuddy Advertisement Advertisement Recommended Final report on chaco Shailesh Kumar 3.7k views 66 slides Chocolate industry project report hasnain2 6.2k views 74 slides Chocolates & confectionery Varun Deshpande 18.6k views 29 slides 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. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. 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. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. The Hershey Company is adopting new technology to create better treats. 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. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. The rest of the billions of bottles end up polluting the ocean and endangering sea life. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. - 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. 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. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. - 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. It first sold its items in United States in 1905. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. Recommended: How to write a PEST analysis. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. Market share was divided among mass-market, gourmet, and cause-related manufacturers. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. Analyze Strengths and Weaknesses of Chocolate Hawkins. - 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. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. Chocolate Gourmet should be aware of presence of such practices in a country. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. 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. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. 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. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. 2006. 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. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. Chocolate Hawkins has stringent norms for health and safety norms so in emerging economies it may have to compete with players who dont have high cost structures that of Chocolate Hawkins. In doing so, the companys machinery learned to adjust itself throughout the day. 1. 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. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. Chocolate industry Presentation 1. - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. 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. 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. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. - 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. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. - 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. 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. Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. According to Jose Lopez, Nestle's Vice . 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. 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. They include political policies and stability as well as trade, taxation and fiscal policies ". The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. L - Legal. Strategy planning process often requires five steps For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. 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. The company was founded in 1924 and has gained much popularity now. 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? 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. - 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. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. Required fields are marked *. 3. In this essay, we will conduct a PESTEL analysis of the chocolate industry in the UK to identify the key external factors that could affect its future prospects. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. 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. Brazil Chocolate Market Analysis. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. In doing so, theyre committed to being more transparent about the ingredients. environmental. At EMBA PRO, we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Then they scorned the dollar. Those that cant afford it are also a problem because well, theyre not buying the chocolate. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. This will help in better predicting the environment policy of the country. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage Research Methodology 4. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. 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. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. (Child Labor and Slavery in the Chocolate Industry, 2014). The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. 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. 3. 1. Chocolate Industry in India 7. 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. - 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. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc..

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