Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. 1. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. In 2011, it is seen that major chocolate . Chocolate Gourmet should consider the fact that at deficit levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. According to Michael Porter organizational performance is to large extend determined by various industry forces. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. It first sold its items in United States in 1905. - 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. The company would benefit greatly by automating several elements of the supply chain. 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. But its still a business at the end of the day; higher returns are most important for its survival. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. They include political policies and stability as well as trade, taxation and fiscal policies ". Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. In highly hierarchical societies the power of decision making often reside at the top. 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. Analyze Strengths and Weaknesses of Chocolate Gourmet. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Some political factors that can affect the chocolate industry in the UK include: Trade policies: Changes in trade policies and tariffs can affect the cost and availability of raw materials, as well as the export and import of finished chocolate products. 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. 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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. - 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. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Chocolate industry Presentation 1. Recommended: How to write a PEST analysis. Luckily for the company, things turned around in the first two quarters of 2018. . In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. (Child Labor and Slavery in the Chocolate Industry, 2014). - 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. Cadbury is synonymous with chocolate consumption worldwide. The Hershey Company is adopting new technology to create better treats. If they were to save money here, itd be a higher return. But conversely, it will also create new employment opportunities in countries like India. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. Often companies enter the arena without requisite infrastructure to support the technology oriented model. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. The Company has various popular products in the Petcare as well as in the chocolate category for example; in the Petcare industry Pedigree, Royal Canin, Whiskas etc. This is why theyre using A.I to improve their products and encourage more sales. 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. - 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. 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 Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. 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. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. In one respect, Cadbury was born as a result of social factors. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. The bond rating of national government is investment grade. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. Chocolate Industry in India 7. Technology is fast disrupting business models across various industries. - 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. 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. S - Social. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. 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. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. PESTEL analysis is mainly the assessment of macro environment factors. 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. 3. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. Show . 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. 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. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. 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. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. Feel free to connect with us if you need business research. 3. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . 4. View. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. Hersheys has dedicated commitments in social responsibility. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. 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. 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. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. The American, Brazilian and Chinese dollars. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. In this section, we present a brief analysis of each element in relation to the . Strategy planning process often requires five steps
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. 1. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. 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. 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. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. Feel free to connect with us if you need business research. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Net sales ($1,751.6 million) were an increase of 5.3 percent. - Focus & Spending on Renewable Technologies How much of the budget is spend on renewable energy sources and how Chocolate Gourmet can make this investment as part of its competitive strategy. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. Some of the legal factors that may impact the chocolate industry in the UK include: Some environmental factors that may affect the chocolate industry in the UK include climate change and its impact on cocoa production, deforestation and habitat destruction in cocoa-growing regions, resource consumption and waste generation in the manufacturing process, and the environmental impact of packaging and transportation. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 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 in a Bloom 6. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. 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. All Rights Reserved, 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. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. According to Michael Porter organizational performance is to large extend determined by various industry forces. And even before that in 2007, Cadbury Schweppes decided to outsource a major portion of its accounting and HR to an Indian firm in the face of increasing operational expenses and reducing margins. 2. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. 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. 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. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. Full-text available. 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. Despite the popularity of chocolate in the United States, many analysts believed that the market was far from saturated, noting that European per capita consumption of chocolate remained considerably higher than that of American consumers. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. Hersheys also adopted technology to move people further down the grocery aisle. 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. T - Technological. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. - 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. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. At EMBA PRO,
Chocolate Gourmet can make strategies based on the stable political environment. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. 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. The company has attempted to make amends by creating socially-conscious programs to help children in need. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. -Kew raw materials are sourced from local suppliers. 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. It has decimated the culture of savings as people dont have enough to save. 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 .