In 2000, 81% of U.S. adults consumed chocolate. 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. Pest analysis of chocolate industry Free Essays | Studymode - 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. This is why theyre using A.I to improve their products and encourage more sales. 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. Chocolate Gourmet 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 Gourmet can face. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. Foreign currency exchange rates were insignificant in the second quarter. Some of the economic factors that affect the chocolate industry in the UK include: Consumer demand: Changes in consumer preferences and tastes can affect the demand for chocolate products, which can impact the industrys profitability. It has decimated the culture of savings as people dont have enough to save. This technology could be adopted for Hersheys other products, particularly with chocolate. 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. - 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. 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. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. 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. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. 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. PESTLE Analysis of Australia | Business Management & Marketing - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. Introduction 2. E - Environmental. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. Often companies enter the arena without requisite infrastructure to support the technology oriented model. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. In this PEST analysis of Cadbury, we saw how this leading chocolate company has dealt with external factors in the UK and in many other countries as well. Article. Major Players 8. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. For example most of EU countries now want the EU citizen data to be saved in EU countries only. - 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. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. - 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. PESTEL analysis is mainly the assessment of macro environment factors. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. Some of the legal factors that may impact the chocolate industry in the UK include: Some environmental factors that may affect the chocolate industry in the UK include climate change and its impact on cocoa production, deforestation and habitat destruction in cocoa-growing regions, resource consumption and waste generation in the manufacturing process, and the environmental impact of packaging and transportation. 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. SWOT Analysis of Mars - Mars incorporated SWOT analysis - Marketing91 Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . - 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. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. - 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. 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. Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. 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. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. The company was founded in 1924 and has gained much popularity now. PEST Analysis of the Hershey Company: Major Setbacks and the Step into A.I. Global Chocolate Market - Size, Outlook, Trends and Forecasts (2019 - 2025) Business Analysis: Kirkland - 988 Words | Internet Public Library PEST analysis is used to control the external factors of what happens outside the . Global Chocolate Market - offers growth, outlook, trends, shares, Industry Analysis, opportunities, Key Players Forecast 2019 to 2025 IND: (+91) 949418 5556 , USA: (+1) 408-915-5456 sales@envisioninteligence.com 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. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. Amul Chocolates also . - 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. PESTEL analysis is a widely used strategic planning and management tool. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. 2. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. - 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. Egypt Market Research Reports, PEST Analysis and Industry Trends Then they scorned the dollar. Other factors may include regulations related to sustainability and greenhouse gas emissions, consumer demand for ethically and sustainably produced products, and the availability and cost of renewable energy sources. According to Michael Porter organizational performance is to large extend determined by various industry forces. -Recycled, recyclable and biodegradable packaging. Chocolate Gourmet can make strategies based on the stable political environment. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. And to also use simpler ingredients for planet sustainability. 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 . Butlers Chocolates Swot Analysis - 1415 Words - Internet Public Library 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). Chocolate Hawkins can make strategies based on the stable political environment. PESTLE analysis of chocolate industry in JAPAN. The top corporate tax rates are . Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. Yasemin Oraman. 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. 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. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. (PDF) A CONTEMPORARY APPROACH FOR STRATEGIC MANAGEMENT - ResearchGate The A.I transmits data to the cloud. SWOT analysis of Amul Chocolates. 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. SWOT and PESTEL Analysis of Nestle - UKEssays.com They're advanced in telecommunications yet follow a patriarchal family system. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. 4. Pest analysis chocolate industry uk. MBA PESTEL : Digital Chocolate - 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. MBA PESTEL : Digital Chocolate PESTEL / PEST Analysis - EMBA Pro for Add if theyre not, then poor sales are obviously their fault right? - 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. Examples Of Pestle Analysis Of The Philippines - 1354 Words | Bartleby Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. Technology is fast disrupting business models across various industries. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. PEST analysis of Afghanistan - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. PESTEL analysis is mainly the assessment of macro environment factors. The Hershey Company is adopting new technology to create better treats. 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. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. PESTLE analysis | Factsheets | CIPD The bond rating of national government is investment grade. Pestle analysis of confectionery industry. Pest analysis of - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. Market-Analysis-ppt-Goya.pdf - INTERNATIONAL BUSINESS AND This analysis is also performed to assess the potential of a new market. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. But its still a business at the end of the day; higher returns are most important for its survival. PDF The Highs and Lows of Startups in The Cannabis Industry: a Pestle 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. Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. (Child Labor and Slavery in the Chocolate Industry, 2014). In highly hierarchical societies the power of decision making often reside at the top. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. Understanding the PESTLE Analysis for Cadbury - MyAssignmenthelp.com U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. L - Legal. 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. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. Liqueur Chocolate Market Size New Insights [2023-2027] | Share Analysis Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. 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. 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. Published by HBR Publications. - 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. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. Higher inflation may require Chocolate Hawkins to continuously increase prices in line of inflation which could lead to lower levels brand loyalty and constant endeavors to manage costs. PESTEL analysis is mainly the assessment of macro environment factors. Global Chocolate Market Size & Share Analysis Report, 2030 Brazil Chocolate Market Analysis - Industry Report - Trends, Size & Share 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. Mars Incorporated PESTEL Analysis - Case48 In doing so, the companys machinery learned to adjust itself throughout the day. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. - 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. Cadbury 11. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. 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. . Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. 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. 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.