S - Social. Until 2025, the chocolate confectionery market in South Africa is forecast to reach 1.03 billion USD (in retail prices), thus increasing at a CAGR of 5.98% per annum for the period 2020-2024. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. environmental. Chocolate Hawkins should be careful about the history of forex risk before entering new market. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. 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. At EMBA PRO, Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. Objective 3. Different countries have different attitude towards health and safety so it is better for Chocolate Gourmet to conduct a thorough research before entering the market. According to Michael Porter organizational performance is to large extend determined by various industry forces. Definition of PESTEL / PEST / STEP Analysis. In doing so, theyre committed to being more transparent about the ingredients. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. - 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. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. Free Summary Report This report contains the table contents only. Thus, disruption in the supply chain of raw materials . In doing so, the companys machinery learned to adjust itself throughout the day. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. - 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. 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. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. 4. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. 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. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. 5. 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. The Hershey Company is adopting new technology to create better treats. 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. 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. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. Definition of PESTEL / PEST / STEP Analysis. 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. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. - 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. - 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. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. But conversely, it will also create new employment opportunities in countries like India. 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. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. Sep 2014. The first Cadbury shop was opened in . Analyze Strengths and Weaknesses of Chocolate Gourmet. - 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. Being a specialty retailer of home dcor and gifts, their primary products are . - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. Chocolate Gourmet can leverage such a situation to hire the best people in business. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. Hersheys has experienced a fair bit of controversy. They're advanced in telecommunications yet follow a patriarchal family system. . In highly hierarchical societies the power of decision making often reside at the top. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. - 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. 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. - Employment Rate If the employment rate is high then it will impact Chocolate Gourmet strategies in two ways it will provide enough customers for Chocolate Gourmet products, and secondly it will make it expensive for Chocolate Gourmet to hire talented & skillful employees. 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. Cadbury 11. 2006. Chocolate Gourmet should be aware of presence of such practices in a country. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 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%. 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. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. 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. Yasemin Oraman. Chocolate Hawkins 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 Hawkins. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. The next element to address in the PESTEL analysis of Switzerland is the economic environment. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. PESTLE stands for: P - Political. Political environment and other factors not only impact the cost of doing business but also long term sustainability. 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. PESTEL analysis is mainly the assessment of macro environment factors. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. Required fields are marked *. 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. - Data Protection Laws Chocolate Gourmet needs to assess what are the data laws in the country and what it needs to do to comply with them. Mars Incorporated. And to also use simpler ingredients for planet sustainability. Published by HBR Publications. - 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. Save my name, email, and website in this browser for the next time I comment. - 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. At EMBA PRO, Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage Many US companies have incurred losses in Mexico in regular forex crisis in that country. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. 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. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . Research Methodology 4. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System . Despite the popularity of chocolate in the United States, many analysts believed that the market was far from saturated, noting that European per capita consumption of chocolate remained considerably higher than that of American consumers. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. 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. Amul 9. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. 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. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. PESTLE analysis of chocolate industry in JAPAN. For internal factors, check out the swot analysis of the UK. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Available to download is a free sample file of the Chocolate Market report PDF. Its installed specifically for their Twizzler candies. Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. Many US companies have incurred losses in Mexico in regular forex crisis in that country. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. Major Players 8. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. 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. Chocolate Industry 5. 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. - 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. 988 Words4 Pages. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. Strategy planning process often requires five steps Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. - 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. 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 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. Attitude towards immigration has come under sharp focus. 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. multiple grocers and impulse retail channels. Cadbury is identical with the consumption of chocolate on a universal basis. 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. 2. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. 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. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. 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. Article. Feb 20, 2023 (The Expresswire) -- "Liqueur Chocolate Market" new research report for [2023] provides a comprehensive overview, including market size, share, growth rate, PESTEL analysis, SWOT . Strategy planning process often requires five steps But often in emerging countries these agencies delay the process as a tactic to extract bribes. Traceability: Technology such as barcoding, RFID (radio frequency identification), and blockchain are being used to enhance traceability of the chocolate supply chain, from cocoa bean to finished product. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. The company would benefit greatly by automating several elements of the supply chain. Published by HBR Publications. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. Called consumer trips by the company, buying in stores went down by 2 percent that year. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. On the other hand, Nestle has a better record of recycling. This analysis is also performed to assess the potential of a new market. 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. When too heavy, additional ingredients go to waste. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. In 2000, 81% of U.S. adults consumed chocolate. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. -Efforts to reduce consumption of water and energy and optimize transport routes. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. Switzerland is one of the largest economies in the world. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. Feel free to connect with us if you need business research. There are four major factors identified to capsulate the different factors found from the different environmental influences. Market share was divided among mass-market, gourmet, and cause-related manufacturers. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. 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. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. 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. 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.
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