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. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. 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. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. Thus, disruption in the supply chain of raw materials . operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . 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. These factors are Political, Legal, Economic and Social. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. The PEST analysis looks at four types of external environmental elements: P -Political factors in an economy include various forms of government intervention and political lobbying, such as . - 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. 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. 2. Available to download is a free sample file of the Chocolate Market report PDF. - Business Laws Before entering into new market Chocolate Hawkins has to assess what are the business laws and how they are different from home market. When too heavy, additional ingredients go to waste. In highly hierarchical societies the power of decision making often reside at the top. 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 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. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. 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. 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. By 2008, the company had expanded its operations into four countries and Digital Chocolate was one of the top developers of soloplayer games for standard mobile phones and iPhones. PESTEL analysis is mainly the assessment of macro environment factors. Save my name, email, and website in this browser for the next time I comment. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). We will make special emphasis on Cadbury UK, as this is where the company originally began. - 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. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - 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. Product Positioning 15. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. Chocolate Industry 5. - 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. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. 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. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. It first sold its items in United States in 1905. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. At EMBA PRO, In this section, we present a brief analysis of each element in relation to the . - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. - 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. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Chocolate ingredients are more expensive. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. 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. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. 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. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. The next element to address in the PESTEL analysis of Switzerland is the economic environment. Many US companies have incurred losses in Mexico in regular forex crisis in that country. 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. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. Published by HBR Publications. 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. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. For example if the supply chain is not flexible it can lead to bottlenecks if shipments from one part of the world are delayed because of sudden climate shift. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. PEST analysis is used to control the external factors of what happens outside the . The first Cadbury shop was opened in . 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. Expert Solution. 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. - 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. Free Summary Report This report contains the table contents only. Chocolate Gourmet can leverage such a situation to hire the best people in business. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. 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. - 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 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. Then they scorned the dollar. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Chocolate industry Presentation 1. - 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. The following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. 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. Definition of PESTEL / PEST / STEP Analysis. Attitude towards immigration has come under sharp focus. . 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 . Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. - 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. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. Being a specialty retailer of home dcor and gifts, their primary products are . If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. 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? 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. MBA Skool InstallCourses Home Courses Concepts SWOT - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. PESTEL analysis is mainly the assessment of macro environment factors. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Gourmet. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. 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. 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. Chocolate Gourmet can borrow cheaply under such circumstances. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. For example Trump not standing by US commitments created an environment of uncertainty. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. Hersheys has experienced a fair bit of controversy. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. Technology is fast disrupting business models across various industries. 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. - 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. Brazil Chocolate Market Analysis. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. 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. 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. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. 988 Words4 Pages. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. - 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. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. To them, Americans have the luxury of buying several premium chocolates. This is why theyre using A.I to improve their products and encourage more sales. -Efforts to reduce consumption of water and energy and optimize transport routes. An even better option is Fair Trade Chocolate. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. - 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. And to also use simpler ingredients for planet sustainability. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. Tax rates were also terrible, according to Mr. Bilbrey. 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. Recommended: How to write a PEST analysis. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Political factors: Government policies and regulations can have a significant impact on the confectionery industry.

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