pestle analysis chocolate industry

The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. 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 . - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. Chocolate Gourmet should be aware of presence of such practices in a country. The rest of the billions of bottles end up polluting the ocean and endangering sea life. Liqueur Chocolate Market Size New Insights [2023-2027] | Share Analysis Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. 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. Some technology factors affecting the chocolate industry in the UK could include: Automation: Chocolate manufacturers in the UK are increasingly adopting automation technology to streamline their production processes and reduce labor costs. For example it has been extremely difficult for US companies to enter UK health market as UK health system is a nationalized system and everything goes through contracts at national level. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. On the other hand, Nestle has a better record of recycling. Chocolate industry Presentation - SlideShare - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. But while chocolate and other products sold by the company are socially acceptable worldwide, Cadbury has been on the receiving end of controversies, the recent one involving Cadbury products being Halal Certified to cater to Muslim markets around the world. A SWOT analysis of handbags, A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a strategic planning tool used to evaluate the internal and external factors that can impact the success, Your email address will not be published. Note on the U.S. Chocolate Market case study (referred as Chocolate Gourmet for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Strategy & Execution and strategic management. 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. S - Social. Definition of PESTEL / PEST / STEP Analysis. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Chocolate Hawkins should do a primary research regarding how much time it often takes to conclude a court case in the country given the sort of legal challenges Chocolate Hawkins can face. But conversely, it will also create new employment opportunities in countries like India. This analysis is also performed to assess the potential of a new market. Pestel analysis of chocolate industry england Free Essays - StudyMode (PDF) A CONTEMPORARY APPROACH FOR STRATEGIC MANAGEMENT - ResearchGate These factors are Political, Legal, Economic and Social. PEST Analysis of Cadbury PESTEL Analysis of Chocolate Confections Corporation An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. - Time Taken for Court Proceedings Even if the country has best of the laws, it doesnt mean much if they cant be enforced in a timely manner. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. Business Analysis: Kirkland. PEST Analysis of the Hershey Company: Major Setbacks and the Step into A.I. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. - 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. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. Sep 2014. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. The Company has various popular products in the Petcare as well as in the chocolate category for example; in the Petcare industry Pedigree, Royal Canin, Whiskas etc. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. 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. If they were to save money here, itd be a higher return. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. If possible, the company plans to add this A.I technology to every one of their lines. 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. In highly hierarchical societies the power of decision making often reside at the top. PESTLE ANALYSIS and 5 FORCES ANALYSIS - CHOCOLATE CONFECTIONERY It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. 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. 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. Switzerland is one of the largest economies in the world. - 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. According to Michael Porter organizational performance is to large extend determined by various industry forces. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. The company would benefit greatly by automating several elements of the supply chain. Its installed specifically for their Twizzler candies. MBA PESTEL : Note on the U.S. Chocolate Market PESTEL / PEST Analysis PESTLE analysis of chocolate industry in JAPAN. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. 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. 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 2015, the company blamed American consumers for not buying more chocolate. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. The bond rating of national government is investment grade. Note on the U.S. Chocolate Market case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. PESTLE Analysis of Nestle in light of Industry 4.0 Political and Economic Forces Politcal Factor Sustainable Politics: PESTLE Analysis Industry-4.0 efforts in UK are politically driven, commitment from the top is a motivating factor for companies to adopt new practices. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. 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. 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 this strategy entails risks when interest rate will go up. It has decimated the culture of savings as people dont have enough to save. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage For example Uber employment system is not consistent with French laws and it is facing challenges in the country. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. - 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. Conducting a PESTLE analysis of the confectionery industry can help businesses operating in this sector to identify potential opportunities and threats, and to develop strategies to mitigate risks and capitalize on opportunities. Nestle: Macro Environment and Micro Environment Analysis - Phdessay Know More According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Lindt & Sprngli SWOT & PESTLE Analysis | SWOT & PESTLE Definition of PESTEL / PEST / STEP Analysis. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. 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. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. Your email address will not be published. Market-Analysis-ppt-Goya.pdf - INTERNATIONAL BUSINESS AND 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. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. Table two below presents a PESTLE analysis for the industry Nestl are present . 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. 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. Strategy planning process often requires five steps we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. For example most of EU countries now want the EU citizen data to be saved in EU countries only. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. 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. Introduction PESTLE ANALYSIS and 5 FORCES ANALYSIS CHOCOLATE CONFECTIONERY PESTLE Analysis Although it has been nearly 4 years since the destruction of the twin towers in the US, terrorism remains a very real threat in much of the world, and a powerful political and economic influence on business. Market Segmentation 13. Objective 3. 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. PEST or PESTLE analysis is used to identify important external (macro-environment level) forces that could affect a company, creating opportunities or threats for the organization. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . 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. Demographics: The UK has an aging population, which may impact chocolate consumption patterns as older consumers may be less likely to consume chocolate or may have different preferences than younger consumers. Economic Status. Chocolate Industry 5. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. To them, Americans have the luxury of buying several premium chocolates. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. (PDF) Pestle Analysis Introduction - ResearchGate It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Pestle analysis of confectionery industry. Pest analysis of The snapshot of this . Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. PDF The Highs and Lows of Startups in The Cannabis Industry: a Pestle Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. PESTLE analysis. Strategy planning process often requires five steps As population is ageing it will require less tech intensive products. Thus, disruption in the supply chain of raw materials . The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. Major Players 8. 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. 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. - 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. 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. The PESTLE Analysis of Chocolate Confectionery in the UK - Studentshare Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. Often companies enter the arena without requisite infrastructure to support the technology oriented model. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. This is why theyre using A.I to improve their products and encourage more sales. For example Trump not standing by US commitments created an environment of uncertainty. - 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. - 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. Chocolate Market Analysis - Industry Report - Trends, Size & Share The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. - 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. Add if theyre not, then poor sales are obviously their fault right? 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. Technology is fast disrupting business models across various industries. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. South Africa Market Research Reports Industry Analysis and Trends - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. -Efforts to reduce consumption of water and energy and optimize transport routes. Yasemin Oraman. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. In this section, we present a brief analysis of each element in relation to the . Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. Full-text available. Cadbury is identical with the consumption of chocolate on a universal basis. Over one hundred million residents live in Japan and are forced to live in specific locations. Rocky Mountain Chocolate Factory, Inc. PESTEL & Environment Analysis Brazil Chocolate Market Analysis - Industry Report - Trends, Size & Share The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. PESTEL analysis of Switzerland - www.howandwhat.net Introduction 2. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. -Recycled, recyclable and biodegradable packaging. PESTLE Analysis of UK | Business Management & Marketing "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Business Analysis: Kirkland - 988 Words | Internet Public Library Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. There is consistency in both policy making and implementations of those policies. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Hence, Cadbury and its range of products are now owned by the American confectionary giant. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. - 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. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. - 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. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. Published by HBR Publications. 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. In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. - 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.