Political factors: Government policies and regulations can have a significant impact on the confectionery industry. PESTEL analysis is mainly the assessment of macro environment factors. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. - 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. Global Chocolate Market Size & Share Analysis Report, 2030 As population is ageing it will require less tech intensive products. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. Chocolate in a Bloom 6. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. 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. 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. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. There are four major factors identified to capsulate the different factors found from the different environmental influences. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. Chocolate Mould Market Share, Size Global Growth Analysis, T "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. In 2000, 81% of U.S. adults consumed chocolate. PESTEL Analysis - Lindt B2B Marketing Strategy 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. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. L - Legal. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. Available to download is a free sample file of the Chocolate Market report PDF. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . Chocolate Industry 5. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. We will make special emphasis on Cadbury UK, as this is where the company originally began. Free Summary Report This report contains the table contents only. Thus, disruption in the supply chain of raw materials . Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Luckily for the company, things turned around in the first two quarters of 2018. Know More PESTEL analysis is mainly the assessment of macro environment factors. 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 Chocolate consumption in India is low per capita consumption in urban India is estimated Many US companies have incurred losses in Mexico in regular forex crisis in that country. PESTLE analysis. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. 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. (DOC) BERRYL"S PESTEL ANALYSIS | Noorazian Noordin - Academia.edu Chocolate Hawkins 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 Hawkins. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. GDP of Afghanistan in 2019 was 19,101 billion $. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. 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. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. 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(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. PESTLE stands for: P - Political. - 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. What is PESTLE Analysis. Hotel Chocolat Group Plc PESTEL & Environment Analysis - Essay48 To them, Americans have the luxury of buying several premium chocolates. 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. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . . This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Hawkins business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. 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. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. 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. PESTEL | Analyzing the macro-environment of your company - IONOS - 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. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. Chocolate ingredients are more expensive. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. Due to the COVID-19 pandemic, the global Insulin Delivery Devices market size is estimated to be worth USD 11340 million in 2022 and is forecast to a readjusted size of USD 14100 million by 2028 . Article. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. The A.I transmits data to the cloud. Definition of PESTEL / PEST / STEP Analysis. Feb 20, 2023 (The Expresswire) -- "Liqueur Chocolate Market" new research report for [2023] provides a comprehensive overview, including market size, share, growth rate, PESTEL analysis, SWOT . Global Chocolate Market - Size, Outlook, Trends and Forecasts (2019 - 2025) Chocolate Industry Contents Titles 1. It is also imperative to use technology to create competitive advantage in the industry. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. Major Players 8. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. - 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. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. 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. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. Amul Chocolates also . - 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. 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. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Psychographics and Demographics 14. 2. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. 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. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. 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. 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 . As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. - 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. PESTEL Analysis & Environment Analysis The PESTEL analysis is a tool devised by Harvard professor Francis Aguilar to conduct a thorough external analysis of the business environment of any industry for which data is available. For internal factors, check out the swot analysis of the UK. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. 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. 2012). PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. 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 PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. - 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. 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. -Efforts to reduce consumption of water and energy and optimize transport routes. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. Political environment and other factors not only impact the cost of doing business but also long term sustainability. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. 1. Industry Report.pdf - Chocolate Industry in Italy PESTEL Analysis of PESTLE Analysis of Nestle | Business Management & Marketing 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. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. 3. Cadbury is synonymous with chocolate consumption worldwide. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. They include political policies and stability as well as trade, taxation and fiscal policies ". - 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. 5. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. According to Michael Porter organizational performance is to large extend determined by various industry forces. Rocky Mountain Chocolate Factory, Inc. PESTEL & Environment Analysis 4. 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. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. 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. Analyze Strengths and Weaknesses of Chocolate Gourmet. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Political environment and other factors not only impact the cost of doing business but also long term sustainability. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. This will help in better predicting the environment policy of the country. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. Pest analysis of chocolate industry Free Essays | Studymode Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. (PDF) A CONTEMPORARY APPROACH FOR STRATEGIC MANAGEMENT - ResearchGate Published by HBR Publications. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Hersheys also adopted technology to move people further down the grocery aisle. - 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. 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. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. Lindt & Sprngli SWOT & PESTLE Analysis | SWOT & PESTLE 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. PESTLE Analysis of Australia | Business Management & Marketing Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. Market Segmentation 13. 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. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Gourmet business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. 2006. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization.