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. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. 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. The first Cadbury shop was opened in . For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. 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 According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. Expert Solution. An even better option is Fair Trade Chocolate. - 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. Major Players 8. 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. - 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. Called consumer trips by the company, buying in stores went down by 2 percent that year. 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. - 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. 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. 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. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. Feel free to connect with us if you need business research. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. Chocolate Gourmet should be careful about the history of forex risk before entering new market. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . Analyze Strengths and Weaknesses of Chocolate Hawkins. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Attitude towards immigration has come under sharp focus. 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 . Chocolate Hawkins should be careful about the history of forex risk before entering new market. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. -Recycled, recyclable and biodegradable packaging. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. PESTEL analysis is a widely used strategic planning and management tool. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. 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. Feel free to connect with us if you need business research. - 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. 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. To them, Americans have the luxury of buying several premium chocolates. 1 . Chocolate Gourmet can borrow cheaply under such circumstances. T - Technological. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. Here are some facts and figures about the beverage industry: The global beverage market size was valued at $1.45 trillion in 2020, and is projected to grow at a CAGR of 6.6% from 2021 to 2028. 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 total retail value of the U.S. market for chocolate was estimated at $13.7 billion in 2002, a 10.2% increase from 1998. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. In 2011, it is seen that major chocolate . Tax rates were also terrible, according to Mr. Bilbrey. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. - Research and Development Investment Levels If there is high level of investment in technology development sector then there are high chances of building a self sustaining ecosystem that drives innovation. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Cadbury 11. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. . - 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. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Digital Chocolate, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Digital Chocolate, 5C Marketing Analysis of Digital Chocolate, 4P Marketing Analysis of Digital Chocolate, Porter Five Forces Analysis and Solution of Digital Chocolate, Porter Value Chain Analysis and Solution of Digital Chocolate, Case Memo & Recommendation Memo of Digital Chocolate, Blue Ocean Analysis and Solution of Digital Chocolate, Marketing Strategy and Analysis Digital Chocolate, VRIO /VRIN Analysis & Solution of Digital Chocolate, PESTEL / STEP / PEST Analysis of Digital Chocolate, Case Study Solution of Digital Chocolate, SWOT Analysis and Solution of Digital Chocolate, USA TODAY: Pursuing the Network Strategy (B) PESTEL / PEST / STEP Analysis & Solution, Washington Post (B) PESTEL / PEST / STEP Analysis & Solution, Keeping Google "Googley" (Abridged) PESTEL / PEST / STEP Analysis & Solution, Unisys: The Merger of Burroughs and Sperry PESTEL / PEST / STEP Analysis & Solution, Telegraph Media Group: The Newspaper Is Dead, Long Live the (E), Change - A Work in Progress PESTEL / PEST / STEP Analysis & Solution, Wikipedia in the Spotlight PESTEL / PEST / STEP Analysis & Solution, Walt Disney's Dennis Hightower: Weaving Together the European Operations PESTEL / PEST / STEP Analysis & Solution, Warner Cable (B) PESTEL / PEST / STEP Analysis & Solution, Man Jit Singh at Sony Entertainment Television (A) PESTEL / PEST / STEP Analysis & Solution, Cisco Systems: Developing a Human Capital Strategy (A) PESTEL / PEST / STEP Analysis & Solution, Organizational Development / MBA Resources. Hersheys has experienced a fair bit of controversy. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. In highly hierarchical societies the power of decision making often reside at the top.
The company would benefit greatly by automating several elements of the supply chain. Chocolate Gourmet can make strategies based on the stable political environment. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. 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. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. 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. Chocolate Gourmet can leverage such a situation to hire the best people in business. The top corporate tax rates are . SWOT analysis of Cadbury 12. 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. In this essay, we will conduct a PESTEL analysis of the chocolate industry in the UK to identify the key external factors that could affect its future prospects. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. PESTEL analysis is mainly the assessment of macro environment factors. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Brazil Chocolate Market Analysis. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Objective 3. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. Business do face problem when the conflict is between public interest and proprietary technology similar to ruling in South Africa where government & judiciary allowed generic AIDS drug irrespective of patents of global companies. - 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. 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. Many US companies have incurred losses in Mexico in regular forex crisis in that country. - 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. 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These factors are Political, Legal, Economic and Social. In 2015, the Hersheys Company surfed upon a sea of negatives. 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. PESTLE analysis of chocolate industry in JAPAN. Market share was divided among mass-market, gourmet, and cause-related manufacturers. Even though the global economic downturn did affect Cadburys expansion plans (owing to a reduction in disposable income of customers and other stakeholders), sales actually remained quiet steady. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. But conversely, it will also create new employment opportunities in countries like India. - Likelihood of Entering into an Armed Conflict From the information in the Digital Chocolate case study, I dont think there is a likelihood of country entering into an armed conflict with a neighboring country. This will help in better predicting the environment policy of the country. 5. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. 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). Often companies enter the arena without requisite infrastructure to support the technology oriented model. It first sold its items in United States in 1905. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. 2. 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. They're advanced in telecommunications yet follow a patriarchal family system. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. Some social factors that may affect the chocolate industry in the UK include: Changing consumer preferences: Consumers in the UK are becoming more health-conscious and may seek out lower-calorie or healthier chocolate products. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. -Environmental policy is very important to Lindt and Sprngli. - 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. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. Psychographics and Demographics 14. PESTLE analysis. While also keeping the ingredients simple to maintain environmental sustainability. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. Raw material prices: Fluctuations in the prices of cocoa, sugar, and other ingredients can affect the cost of production and ultimately the price of chocolate products. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. Chocolate Industry Contents Titles 1. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. 3. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. - 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. - 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. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. 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. 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. According to Michael Porter organizational performance is to large extend determined by various industry forces. In highly hierarchical societies the power of decision making often reside at the top. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. 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. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. 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. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. 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 Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. 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. 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. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. 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. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. On the other hand, Nestle has a better record of recycling. The company has attempted to make amends by creating socially-conscious programs to help children in need. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa, with over 1,739 miles of coastline that stretches along the South Atlantic and Indian oceans. 4. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. - 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. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. 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 . Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. Chocolate ingredients are more expensive. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. What is PESTLE Analysis. 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.