pestle analysis chocolate industry

S - Social. 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. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. 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? Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. Chocolate industry Presentation 1. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. 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. - 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. This will help in better predicting the environment policy of the country. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). 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. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. 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 Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System Objective 3. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. But even then, recession did play its part as the company managed only to hit the lower end of its 4%-6% revenue for 2009, the peak of the recession. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Definition of PESTEL / PEST / STEP Analysis. 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. - 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. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. 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. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. Ethical and sustainable sourcing: There is increasing concern among consumers about the environmental and social impact of chocolate production, including issues related to child labor, deforestation, and fair trade. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. The UK chocolate market is the biggest in all European market. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. Definition of PESTEL / PEST / STEP Analysis. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. Technology is fast disrupting business models across various industries. The American, Brazilian and Chinese dollars. - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. - 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. 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. 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. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. Chocolate Hawkins can make strategies based on the stable political environment. 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. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. 2012). PESTEL analysis is mainly the assessment of macro environment factors. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. - 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. 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. This is why theyre using A.I to improve their products and encourage more sales. Whereas it will reach USD 2.11 Bn by 2029 with a significant growth rate of 3.28% Chocolate is a very popular and sweet, food item made from cocoa beans. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. Called consumer trips by the company, buying in stores went down by 2 percent that year. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Your email address will not be published. - 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. Luckily for the company, things turned around in the first two quarters of 2018. 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. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Hence, Cadbury and its range of products are now owned by the American confectionary giant. - 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. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. - 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. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. Required fields are marked *. - Mobile Phone & Internet Penetration Chocolate Gourmet should assess the level of internet and mobile phone penetration in the country as it will it in building a requisite business model based on local needs and realities. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. Strategy planning process often requires five steps Australia is one of the world's most advanced developed countries mainly because of the economical strengths. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. Chapters Research Methodology Study of Global Market Study of Indian Market Product Profile Demand Determination of Chocolate Industry Distribution channel in chocolate industry Key issues & current trends PEST analysis Michel Porter's Five Force Model Other Portfolio Model Financial Analysis Opportunity . Chocolate Gourmet should be aware of presence of such practices in a country. If they were to save money here, itd be a higher return. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. 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. But this strategy entails risks when interest rate will go up. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. Over one hundred million residents live in Japan and are forced to live in specific locations. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. View. 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. The company has attempted to make amends by creating socially-conscious programs to help children in need. Note on the U.S. Chocolate Market case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. 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. 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. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Cadbury is a well-known producer and distributor of chocolate and milk-based products. Business Analysis: Kirkland. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. To them, Americans have the luxury of buying several premium chocolates. If possible, the company plans to add this A.I technology to every one of their lines. Brazil Chocolate Market Analysis. 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. Hersheys has experienced a fair bit of controversy. As population is ageing it will require less tech intensive products. 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. Chocolate Hawkins should be careful about the history of forex risk before entering new market. SWOT analysis of Amul Chocolates. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. Attitude towards immigration has come under sharp focus. Chocolate Gourmet can make strategies based on the stable political environment. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. 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. Being a specialty retailer of home dcor and gifts, their primary products are . The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. PEST or PESTLE analysis is used to identify important external (macro-environment level) forces that could affect a company, creating opportunities or threats for the organization. 2. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. Thus, disruption in the supply chain of raw materials . Chocolate Gourmet can borrow cheaply under such circumstances. Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. (Child Labor and Slavery in the Chocolate Industry, 2014). 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%. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. Cost Based Pricing could be a bad strategy under such conditions. Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. Yasemin Oraman. L - Legal. 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. Since then, chocolate and Cadbury have been part of the same sentence. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. The rest of the billions of bottles end up polluting the ocean and endangering sea life. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. 2. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. PESTLE analysis of chocolate industry in JAPAN. The company would benefit greatly by automating several elements of the supply chain. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. In highly hierarchical societies the power of decision making often reside at the top. 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. 1 . Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. - 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. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. - 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. According to Michael Porter organizational performance is to large extend determined by various industry forces. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. 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. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. 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. 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 . The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. 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. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. . It would focus on the macro-environmental factors that impact her growth and productivity. But conversely, it will also create new employment opportunities in countries like India. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. Analyze Strengths and Weaknesses of Chocolate Hawkins. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. 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). Then with the blame game where everything was the culprit for poor sales in 2015. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk.