Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. 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 PEST analysis is used to control the external factors of what happens outside the . 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. Attitude towards immigration has come under sharp focus. Chocolate Gourmet can make strategies based on the stable political environment. -Kew raw materials are sourced from local suppliers. environmental. If they were to save money here, itd be a higher return. PESTLE Analysis of UK | Business Management & Marketing Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. - 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. Cadbury is identical with the consumption of chocolate on a universal basis. South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa, with over 1,739 miles of coastline that stretches along the South Atlantic and Indian oceans. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. In 2015, the company blamed American consumers for not buying more chocolate. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. It is also imperative to use technology to create competitive advantage in the industry. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. In 2011, it is seen that major chocolate . However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. (PDF) Pestle Analysis Introduction - ResearchGate 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. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. The UK chocolate market is the biggest in all European market. - 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. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. 4. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. Strategy planning process often requires five steps 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%. Chocolate Hawkins can make strategies based on the stable political environment. 988 Words4 Pages. The rest of the billions of bottles end up polluting the ocean and endangering sea life. PESTLE analysis of chocolate industry in JAPAN. 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. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. Chocolate Hawkins should be careful about the history of forex risk before entering new market. 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. Those that cant afford it are also a problem because well, theyre not buying the chocolate. Switzerland Chocolate Market Report 2023 (Global Edition) multiple grocers and impulse retail channels. In PESTEL analysis, you develop a detailed description of a company's macro-environment in terms of political, economic, socio-cultural, technological, environmental and legal factors as well as their effects. Analyze Strengths and Weaknesses of Chocolate Gourmet. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. 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. Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. In highly hierarchical societies the power of decision making often reside at the top. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. 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. An even better option is Fair Trade Chocolate. 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. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . 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. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. Chocolate Gourmet should be careful about the history of forex risk before entering new market. Brazil Chocolate Market Analysis. Know More 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. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. PESTEL analysis is mainly the assessment of macro environment factors. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. - 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. - 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. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. It is important to note that the Chocolate Confections Corporation PESTEL Analysis will be market specific, and the implications of the factors change for a company when the market . View. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. PESTLE ANALYSIS and 5 FORCES ANALYSIS - CHOCOLATE CONFECTIONERY - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. - 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. While also keeping the ingredients simple to maintain environmental sustainability. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . PESTLE Analysis of Beverage Industry | Free PESTEL Analysis The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. Chocolate Gourmet can leverage such a situation to hire the best people in business. Research Methodology 4. South Africa: Chocolate Confectionery Market and the - market research Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. -Environmental policy is very important to Lindt and Sprngli. PESTLE Analysis Food Industry United Kingdom (UK) In highly hierarchical societies the power of decision making often reside at the top. 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. SWOT Analysis of Mars - Mars incorporated SWOT analysis - Marketing91 The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. KitKat PESTLE Analysis | MBA Skool In Asia authority is respected while in west it is something to rebel against. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. The next element to address in the PESTEL analysis of Switzerland is the economic environment. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. The company has attempted to make amends by creating socially-conscious programs to help children in need. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. The top corporate tax rates are . Market Segmentation 13. Cost Based Pricing could be a bad strategy under such conditions. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. . SWOT and PESTEL Analysis of Nestle - UKEssays.com In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. Rocky Mountain Chocolate Factory, Inc. PESTEL & Environment Analysis 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. 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? Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. 2012). Perhaps it was also the consumers, who (according to Hershey) werent going to stores. Tax rates were also terrible, according to Mr. Bilbrey. Pestle analysis of confectionery industry. Pest analysis of Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. But conversely, it will also create new employment opportunities in countries like India. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. SWOT analysis of Cadbury 12. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. The snapshot of this . Mars Incorporated PESTEL Analysis - Case48 It speaks out against child labor and slave labor, while also using sustainable practices for the environment. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. To them, Americans have the luxury of buying several premium chocolates. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. - 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. On the other hand, Nestle has a better record of recycling. Expert Solution. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. E - Economic. Chocolate Industry Analysis - UKEssays.com Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. 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. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. - 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. Brazil Chocolate Market Analysis - Industry Report - Trends, Size & Share PESTLE analysis. Chocolate in China: Enter the Sweet Chocolate Market The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. - 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. Chocolate in a Bloom 6. PESTLE Analysis: The Macro-Environmental Analysis Explained - Consulterce Chocolate Industry Contents Titles 1. 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This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. 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. 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 Authority Various cultures in different part of the world have different attitude towards authority. Attitude towards immigration has come under sharp focus. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Free Summary Report This report contains the table contents only. -Efforts to reduce consumption of water and energy and optimize transport routes. 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. PESTLE Analysis of Australia | Business Management & Marketing Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. 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. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. Feel free to connect with us if you need business research. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. In this section, we present a brief analysis of each element in relation to the . Pestle Analysis Of Confectionery Industry Free Essay Example - PaperAp.com Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. 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. Cadbury 11. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Technology is fast disrupting business models across various industries. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. 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 Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. - Consumer Disposable Income The household income of the country has increased constantly in the last decade and half, compare to the USA market where household income is still below 2007 levels and not increased in real terms since early 1980s. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. Today, we'll study the pestle analysis of UK. - 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. 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. Solutions. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. Chocolate consumption in India is low per capita consumption in urban India is estimated 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. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. - 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. 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. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. Which dollar? Cadbury is synonymous with chocolate consumption worldwide. 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