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. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. This technology could be adopted for Hersheys other products, particularly with chocolate. Solutions. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. 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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. 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. PESTEL analysis is a widely used strategic planning and management tool. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. - 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. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. Economic Status. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. - 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. Cost Based Pricing could be a bad strategy under such conditions. PEST ANALYSIS The PEST analysis is a useful tool for understanding market growth or decline and as such the position potential and direction for a business. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Mars Incorporated. 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 Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. -Recycled, recyclable and biodegradable packaging. 1. And to also use simpler ingredients for planet sustainability. 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. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. 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. 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. Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. 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. PESTLE analysis of chocolate industry in JAPAN. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. Factors that should be consider while launching a new product i.e Political, Economic, Sociological, Technological, Legal and Environmental and the questions we should take under Consideration - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. Secondly governments from all parties adhere to the treaties made by the previous governments. - Corporate Social Responsibilities Culture Are Chocolate Hawkins present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. 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. Full-text available. -Efforts to reduce consumption of water and energy and optimize transport routes. View. 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. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Chocolate industry Presentation 1. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. - 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. Chocolate consumption in India is low per capita consumption in urban India is estimated Available to download is a free sample file of the Chocolate Market report PDF. In 2009, Hawkins was eager for Digital Chocolate to start developing new types of mobile games that could be played by multiple players over a period of time. This will help in better predicting the environment policy of the country. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. Chocolate Gourmet can borrow cheaply under such circumstances. 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. The PEST Analysis is mainly used for tactical planning, promotion planning as well as industry and the development of manufactured goods. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. When too heavy, additional ingredients go to waste. In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. Definition of PESTEL / PEST / STEP Analysis. 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 . The first step in conducting a PESTEL analysis is to gain an understanding of the brand. Japan is a small, but articulate, country. Market Segmentation 13. 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. - Gender Composition in Labor Market Chocolate Hawkins 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. 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? 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. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. Chocolate Industry in India 7. Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. But often in emerging countries these agencies delay the process as a tactic to extract bribes. It has decimated the culture of savings as people dont have enough to save. In 2000, 81% of U.S. adults consumed chocolate. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Chocolate Gourmet products and prices of overall products have remained sticky in the US market. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Chocolate Gourmet should be aware of presence of such practices in a country. Chocolate Gourmet can make strategies based on the stable political environment. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Chocolate Industry Contents Titles 1. The snapshot of this . Feel free to connect with us if you need business research. The A.I transmits data to the cloud. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. In 2015, the Hersheys Company surfed upon a sea of negatives. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Higher inflation may require Chocolate Hawkins to continuously increase prices in line of inflation which could lead to lower levels brand loyalty and constant endeavors to manage costs. Required fields are marked *. According to the date compiled by CNN Money, the Philippines is projected to be the fourth fastest in the world, that has a GDP at 6.7%. While also keeping the ingredients simple to maintain environmental sustainability. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. In doing so, theyre committed to being more transparent about the ingredients. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. Definition of PESTEL / PEST / STEP Analysis. Strategy planning process often requires five steps On the other hand, Nestle has a better record of recycling. Which dollar? 988 Words4 Pages. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. In 2011, it is seen that major chocolate . Technology is fast disrupting business models across various industries. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. SWOT analysis of Cadbury 12. Amul 9. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. Save my name, email, and website in this browser for the next time I comment. At EMBA PRO, 1. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. 1 . - 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. 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. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. PESTEL analysis is mainly the assessment of macro environment factors. - 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. In Asia authority is respected while in west it is something to rebel against. 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. It first sold its items in United States in 1905. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Hersheys has experienced a fair bit of controversy. Report Overview The global chocolate market size was estimated at USD 113.16 billion in 2021 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.7% from 2022 to 2030. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. The rest of the billions of bottles end up polluting the ocean and endangering sea life. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. And although theyre doing better financially in 2018 compared to the disastrous year of 2015, the company is not on the hunt to increase expenses just yet. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. 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. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. Objective 3. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. 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. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. - 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 company has attempted to make amends by creating socially-conscious programs to help children in need. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. 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. 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. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. 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. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. According to Jose Lopez, Nestle's Vice . PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. 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. 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. 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. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. - 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. Luckily for the company, things turned around in the first two quarters of 2018. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. . Since then, chocolate and Cadbury have been part of the same sentence. PESTLE stands for: P - Political. Chocolate Industry 5. 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. In the context of the UK, the change of government from the Labour party to the Conservative/Liberal Democrat is bound to influence Cadburys operations. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage The top corporate tax rates are . - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. - 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. Chocolate Gourmet should be careful about the history of forex risk before entering new market. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. According to Michael Porter organizational performance is to large extend determined by various industry forces. The first Cadbury shop was opened in . The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%.
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