One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. We will make special emphasis on Cadbury UK, as this is where the company originally began. Political environment and other factors not only impact the cost of doing business but also long term sustainability. 988 Words4 Pages. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 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. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. The company would benefit greatly by automating several elements of the supply chain. The A.I transmits data to the cloud. 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. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. The Hershey Company is adopting new technology to create better treats. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. The implication for Chocolate Hawkins is that it can boost sales of its product in short run but also expose Chocolate Hawkins to medium term forex and currency depreciation risks. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. 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. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. The gourmet category was expected to grow as consumers incorporated more expensive gourmet foods into their diets, a trend beginning with the beer, wine, coffee, cheese, and ice cream industries. Technology is fast disrupting business models across various industries. - 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. In each of these locations, the sales were weaker. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. Being a specialty retailer of home dcor and gifts, their primary products are . Chocolate Industry Contents Titles 1. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. environmental. PESTEL Analysis, SWOT Analysis and Risk Analysis of Egypt Egypt PESTEL Analysis This report covers Egypt 's PESTEL (political, economic, social, technological, environmental and legal) analysis. 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. Today, we'll study the pestle analysis of UK. - 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. Those that cant afford it are also a problem because well, theyre not buying the chocolate. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. - 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. . According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. In 2015, the company blamed American consumers for not buying more chocolate. 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. In doing so, theyre committed to being more transparent about the ingredients. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. The revenue in the chocolate market is projected to reach 340243.54 tons in 2022 and the market is expected to register a CAGR of 5.90% in terms of volume. 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. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. In this section, we present a brief analysis of each element in relation to the . 4. Nestle 10. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. - Time Taken for Court Proceedings Even if the country has best of the laws, it doesnt mean much if they cant be enforced in a timely manner. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System Other factors may include regulations related to sustainability and greenhouse gas emissions, consumer demand for ethically and sustainably produced products, and the availability and cost of renewable energy sources. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. 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. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. Opening shop in the early 19 th century, 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. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. 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. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. PEST analysis is used to control the external factors of what happens outside the . But conversely, it will also create new employment opportunities in countries like India. 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. 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). 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. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. In highly hierarchical societies the power of decision making often reside at the top. - 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. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. -Efforts to reduce consumption of water and energy and optimize transport routes. On the other hand, Nestle has a better record of recycling. 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. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. Called consumer trips by the company, buying in stores went down by 2 percent that year. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. - 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. - 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. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. The UK chocolate market is the biggest in all European market. - 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. Research Methodology 4. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Gourmet. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. 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. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. It has decimated the culture of savings as people dont have enough to save. For example most of EU countries now want the EU citizen data to be saved in EU countries only. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Japan is a small, but articulate, country. Show . Cadbury 11. 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. Which dollar? Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. Market share was divided among mass-market, gourmet, and cause-related manufacturers. Available to download is a free sample file of the Chocolate Market report PDF. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. Cadbury is synonymous with chocolate consumption worldwide. 2. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. Chocolate Industry in India 7. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. Chocolate Hawkins can make strategies based on the stable political environment. PESTEL analysis is mainly the assessment of macro environment factors. 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. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Psychographics and Demographics 14. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. 1. The American, Brazilian and Chinese dollars. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. In Asia authority is respected while in west it is something to rebel against. 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 industry Presentation 1. 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 . -Kew raw materials are sourced from local suppliers. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. SWOT analysis of Cadbury 12. Over one hundred million residents live in Japan and are forced to live in specific locations. 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. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. Many US companies have incurred losses in Mexico in regular forex crisis in that country. According to Michael Porter organizational performance is to large extend determined by various industry forces. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. This is why theyre using A.I to improve their products and encourage more sales. Article. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. 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. PESTLE analysis of chocolate industry in JAPAN. 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. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. 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? Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. What is PESTLE Analysis. - 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. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. The chocolate industry has to anticipate the outcomes of their business operations in such a way that are in abidance with the rules and regulations made by the government of the country. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. - 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 top corporate tax rates are . - 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. Attitude towards immigration has come under sharp focus. - 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. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. At EMBA PRO,
Analyze Strengths and Weaknesses of Chocolate Hawkins. - Fiscal and Monetary Policies The Republican government tax break culture has increased the deficit and it can lead to fiscal trouble for the economy in coming years. It is written by Linda A. Hill, Alison Berkley Wagonfeld and shed light on critical areas in field of Organizational Development, Creativity, Entrepreneurship, Leading teams, Product development that the protagonist in the case study is facing. Save my name, email, and website in this browser for the next time I comment. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. This will help in better predicting the environment policy of the country. Chocolate ingredients are more expensive. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. Its installed specifically for their Twizzler candies. 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. 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. At EMBA PRO,
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 Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. 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. The next element to address in the PESTEL analysis of Switzerland is the economic environment. Chocolate Gourmet should be aware of presence of such practices in a country. 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. Definition of PESTEL / PEST / STEP Analysis. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Product Positioning 15. 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. - 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. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. Chocolate Hawkins should be careful about the history of forex risk before entering new market. Hence, Cadbury and its range of products are now owned by the American confectionary giant. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy.