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As population is ageing it will require less tech intensive products. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. PESTEL analysis is mainly the assessment of macro environment factors. In 2015, the company blamed American consumers for not buying more chocolate. -Efforts to reduce consumption of water and energy and optimize transport routes. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. - 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. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. 1. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System Being a specialty retailer of home dcor and gifts, their primary products are . The rest of the billions of bottles end up polluting the ocean and endangering sea life. Mars Incorporated. 2006. 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. Which dollar? Research Methodology 4. Brazil Chocolate Market Analysis. At EMBA PRO, Chocolate Gourmet 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 Gourmet. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. It would focus on the macro-environmental factors that impact her growth and productivity. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. Article. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. The American, Brazilian and Chinese dollars. 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. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. 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. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. . For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. 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. 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. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. - 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. - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. 5. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). 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. Your email address will not be published. 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? Australia is one of the world's most advanced developed countries mainly because of the economical strengths. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Note on the U.S. Chocolate Market, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Note on the U.S. Chocolate Market, SWOT Analysis of Note on the U.S. Chocolate Market, 5C Marketing Analysis of Note on the U.S. Chocolate Market, 4P Marketing Analysis of Note on the U.S. Chocolate Market, Porter Five Forces Analysis and Solution of Note on the U.S. Chocolate Market, Porter Value Chain Analysis and Solution of Note on the U.S. Chocolate Market, Case Memo & Recommendation Memo of Note on the U.S. Chocolate Market, Blue Ocean Analysis and Solution of Note on the U.S. Chocolate Market, Marketing Strategy and Analysis Note on the U.S. Chocolate Market, VRIO /VRIN Analysis & Solution of Note on the U.S. Chocolate Market, PESTEL / STEP / PEST Analysis of Note on the U.S. Chocolate Market, Case Study Solution of Note on the U.S. Chocolate Market, SWOT Analysis and Solution of Note on the U.S. Chocolate Market, Kirin Brewery Co., Ltd.: The Dry Beer War PESTEL / PEST / STEP Analysis & Solution, Monsanto and Genetically Modified Organisms PESTEL / PEST / STEP Analysis & Solution, Cola Wars Continue: Coke and Pepsi in 2006 PESTEL / PEST / STEP Analysis & Solution, Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) PESTEL / PEST / STEP Analysis & Solution, Coca-Cola FEMSA's Contribution to Peace PESTEL / PEST / STEP Analysis & Solution, Vincor and the New World of Wine PESTEL / PEST / STEP Analysis & Solution, Arcor: Global Strategy and Local Turbulence (Abridged) PESTEL / PEST / STEP Analysis & Solution, Marks and Spencer Ltd. (A) PESTEL / PEST / STEP Analysis & Solution, PepsiCo: The Challenge of Growth Through Innovation PESTEL / PEST / STEP Analysis & Solution, Adam Baxter Co./Local 190: 1985 Negotiation, Local 190 Confidential Information PESTEL / PEST / STEP Analysis & Solution. Market Segmentation 13. Introduction 2. In doing so, the companys machinery learned to adjust itself throughout the day. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. 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. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. 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. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. - 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. - Work Force Productivity Work force productivity in US has grown by 25-30 % in last two decades even though the salaries are not reflecting those gains. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . 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. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption 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. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. 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. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. 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. 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. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Switzerland is one of the largest economies in the world. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. - 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. This will help in better predicting the environment policy of the country. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. 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. multiple grocers and impulse retail channels. 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 - 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. Hersheys also adopted technology to move people further down the grocery aisle. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. 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 For internal factors, check out the swot analysis of the UK. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage Chocolate Industry Contents Titles 1. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. 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 a widely used strategic planning and management tool. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. Solutions. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those 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. This will help in better predicting the environment policy of the country. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. Technology is fast disrupting business models across various industries. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. The first Cadbury shop was opened in . It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. In doing so, theyre committed to being more transparent about the ingredients. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. 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. We will make special emphasis on Cadbury UK, as this is where the company originally began. It is also imperative to use technology to create competitive advantage in the industry. - Corporate Social Responsibilities Culture Are Chocolate Hawkins present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. 1. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. - 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. Full-text available. 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? - 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. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . 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. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. The snapshot of this . It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. Japan is a small, but articulate, country. This lack of clarity and responsibility highlights the company's failure to take action despite having all the resources and power to reduce child labour. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. PESTEL analysis is mainly the assessment of macro environment factors. Free Summary Report This report contains the table contents only. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. 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. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. - 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. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. 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. Yasemin Oraman. Cadbury is synonymous with chocolate consumption worldwide. Chocolate Hawkins can make strategies based on the stable political environment. A Comprehensive Project report on Chocolate Industry Bhavik Parmar Follow Co-Founder And MD at KadiBuddy Advertisement Advertisement Recommended Final report on chaco Shailesh Kumar 3.7k views 66 slides Chocolate industry project report hasnain2 6.2k views 74 slides Chocolates & confectionery Varun Deshpande 18.6k views 29 slides Expert Solution. But often in emerging countries these agencies delay the process as a tactic to extract bribes. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. GDP of Afghanistan in 2019 was 19,101 billion $. - 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. Know More - 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. - 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.