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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. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. Amul 9. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. PESTLE analysis. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. This is why theyre using A.I to improve their products and encourage more sales. Mars Incorporated. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. Political environment and other factors not only impact the cost of doing business but also long term sustainability. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. But often in emerging countries these agencies delay the process as a tactic to extract bribes. The Hershey Company is adopting new technology to create better treats. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. 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. 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. Technology is fast disrupting business models across various industries. And to also use simpler ingredients for planet sustainability. 2006. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. According to Michael Porter organizational performance is to large extend determined by various industry forces. Packaging: There is a growing demand for sustainable and eco-friendly packaging solutions, which has led to the development of new technology for biodegradable or compostable packaging materials. Chocolate Gourmet should be careful about the history of forex risk before entering new market. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. 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. It would focus on the macro-environmental factors that impact her growth and productivity. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. - 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. 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. 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. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. 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 3. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. Hersheys also adopted technology to move people further down the grocery aisle. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Since then, chocolate and Cadbury have been part of the same sentence. 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? Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. Macroeconomics is the study of large-scale economic elements, often relating to countries as a whole.The factors this analysis represents are political, economic, social, technological, legal and environmental. In 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. 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. The implication for Chocolate Hawkins is that it can boost sales of its product in short run but also expose Chocolate Hawkins to medium term forex and currency depreciation risks. Market share was divided among mass-market, gourmet, and cause-related manufacturers. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Published by HBR Publications. - Corporate Social Responsibilities Culture Are Chocolate Gourmet present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. 1. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. environmental. 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. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . Its installed specifically for their Twizzler candies. 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. Hersheys has dedicated commitments in social responsibility. 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. Hence, Cadbury and its range of products are now owned by the American confectionary giant. Today, we'll study the pestle analysis of UK. - Data Protection Laws Chocolate Gourmet needs to assess what are the data laws in the country and what it needs to do to comply with them. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. - Likelihood of Entering into an Armed Conflict From the information in the Digital Chocolate case study, I dont think there is a likelihood of country entering into an armed conflict with a neighboring country. At EMBA PRO, PEST analysis is used to control the external factors of what happens outside the . Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. - 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. 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 Mould Market Share, Size Global Growth Analysis, Trends, Industry Analysis, Key Players and Value,Opportunity Forecast to 2025 Posted o. Wednesday, 01 March 2023 08:34 GMT. Amul Chocolates also . Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Foreign currency exchange rates were insignificant in the second quarter. Sep 2014. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. PESTEL analysis is mainly the assessment of macro environment factors. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. The A.I transmits data to the cloud. 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. Those that cant afford it are also a problem because well, theyre not buying the chocolate. Luckily for the company, things turned around in the first two quarters of 2018. Product Positioning 15. Attitude towards immigration has come under sharp focus. Recommended: How to write a PEST analysis. 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. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. This technology could be adopted for Hersheys other products, particularly with chocolate. It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. Full-text available. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. - 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. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage -Efforts to reduce consumption of water and energy and optimize transport routes. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. Secondly governments from all parties adhere to the treaties made by the previous governments. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. 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. Required fields are marked *. 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. - 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. 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%. Cadbury is identical with the consumption of chocolate on a universal basis. Report Overview The global chocolate market size was estimated at USD 113.16 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.7% from 2022 to 2030. According to Michael Porter organizational performance is to large extend determined by various industry forces. This will help in better predicting the environment policy of the country. 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. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. 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. Economic Status. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. 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. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization.