Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. 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. Cost Based Pricing could be a bad strategy under such conditions. 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 Factors that should be consider while launching a new product i.e Political, Economic, Sociological, Technological, Legal and Environmental and the questions we should take under Consideration This is why theyre using A.I to improve their products and encourage more sales. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. 1. 4. In Asia authority is respected while in west it is something to rebel against. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. 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. PESTLE Analysis for Cannabis Startups PESTLE is the acronym for a framework which analyzes the Political, Economic, Social, Technological, Legislative, and Environmental (mostly in the ecological sense) factors that have direct and indirect impacts on a business. The American, Brazilian and Chinese dollars. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Required fields are marked *. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. - 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. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. 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. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. - 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. 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. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. This technology could be adopted for Hersheys other products, particularly with chocolate. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. 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. 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. 2006. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. PEST ANALYSIS The PEST analysis is a useful tool for understanding market growth or decline and as such the position potential and direction for a business. Since then, chocolate and Cadbury have been part of the same sentence. It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. Attitude towards immigration has come under sharp focus. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. 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. Opening shop in the early 19thcentury, 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 UK chocolate market is the biggest in all European market. Definition of PESTEL / PEST / STEP Analysis. - 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. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. - Nature of Social Contract between Government & Society Before entering into a market Chocolate Hawkins needs to understand the nature of social contract between government and society. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. 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. This will help in better predicting the environment policy of the country. 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. 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. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. Often companies enter the arena without requisite infrastructure to support the technology oriented model. This analysis is also performed to assess the potential of a new market. According to Jose Lopez, Nestle's Vice . Choosing the vision, mission and the reason of existence for Chocolate Gourmet. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. In highly hierarchical societies the power of decision making often reside at the top. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. In each of these locations, the sales were weaker. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. - 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. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. Full-text available. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. 4. - 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. In doing so, theyre committed to being more transparent about the ingredients. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. Chocolate Industry Contents Titles 1. Solutions. - 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. 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. Cadbury is identical with the consumption of chocolate on a universal basis. 2012). We will make special emphasis on Cadbury UK, as this is where the company originally began. Business Analysis: Kirkland. - 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. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Then they scorned the dollar. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. 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. - 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. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Chocolate Industry in India 7. For example most of EU countries now want the EU citizen data to be saved in EU countries only. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. 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 Australia is one of the world's most advanced developed countries mainly because of the economical strengths. The first Cadbury shop was opened in . Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. Strategy planning process often requires five steps Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. When too heavy, additional ingredients go to waste. 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. 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. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. Then with the blame game where everything was the culprit for poor sales in 2015. 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. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. PESTEL analysis is mainly the assessment of macro environment factors. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. 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. 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. - 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. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. 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. Developing strategies that can capitalize on Chocolate Hawkins 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. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. 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. 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. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. Introduction 2. But this strategy entails risks when interest rate will go up. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. - 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. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. - 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. 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). Amul Chocolates also . 5. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. 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. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. To them, Americans have the luxury of buying several premium chocolates. Analyze Strengths and Weaknesses of Chocolate Gourmet. The A.I transmits data to the cloud. 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 doing so, the companys machinery learned to adjust itself throughout the day. But its still a business at the end of the day; higher returns are most important for its survival. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. They include political policies and stability as well as trade, taxation and fiscal policies ". - 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. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. Today, we'll study the pestle analysis of UK. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. Digital Chocolate case study (referred as Chocolate Hawkins for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Organizational Development and strategic management. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. View. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. They're advanced in telecommunications yet follow a patriarchal family system. As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. Being a specialty retailer of home dcor and gifts, their primary products are . 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. It requires less temperature and energy to produce (unlike non-raw chocolate), and thatll also bring a smile to the faces of eco-friendly consumers. 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. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. Secondly governments from all parties adhere to the treaties made by the previous governments. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. 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. . Perhaps it was also the consumers, who (according to Hershey) werent going to stores. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. Technology is fast disrupting business models across various industries. 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.
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