PEST analysis is used to control the external factors of what happens outside the . 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. For example most of EU countries now want the EU citizen data to be saved in EU countries only. - Nature of Social Contract between Government & Society Before entering into a market Chocolate Hawkins needs to understand the nature of social contract between government and society. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. 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. According to Michael Porter organizational performance is to large extend determined by various industry forces. SWOT analysis of Amul Chocolates. Then they scorned the dollar. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. 3. 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. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. - 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. 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. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . This will help in better predicting the environment policy of the country. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. Chocolate in a Bloom 6. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. This is why theyre using A.I to improve their products and encourage more sales. Required fields are marked *. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. - 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. 5. Yasemin Oraman. 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 Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Gourmet. As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. 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. . Called consumer trips by the company, buying in stores went down by 2 percent that year. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. Secondly governments from all parties adhere to the treaties made by the previous governments. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. When too heavy, additional ingredients go to waste. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. 3. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. 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 Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. 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. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. -Environmental policy is very important to Lindt and Sprngli. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. 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 Hawkins need to examine three inter-related environments in order to come up with an effective strategy. 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. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. - 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. Luckily for the company, things turned around in the first two quarters of 2018. Hersheys has dedicated commitments in social responsibility. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. Expert Solution. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. - 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. The implication for Chocolate Hawkins is that it can boost sales of its product in short run but also expose Chocolate Hawkins to medium term forex and currency depreciation risks. In doing so, theyre committed to being more transparent about the ingredients. 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 Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. 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. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. These factors are Political, Legal, Economic and Social. The A.I transmits data to the cloud. 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. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Hawkins business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. MBA Skool InstallCourses Home Courses Concepts SWOT 1 . This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. T - Technological. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. - 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. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. Hence, Cadbury and its range of products are now owned by the American confectionary giant. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. 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. Switzerland is one of the largest economies in the world. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. GDP of Afghanistan in 2019 was 19,101 billion $. PESTEL analysis is mainly the assessment of macro environment factors. E - Environmental. Hawkins wondered how to guide his company into this new area of social gaming without losing any of the tremendous creative momentum the team had built over the previous years. Digital Chocolate case study (referred as Chocolate Hawkins for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Organizational Development and strategic management. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. Climate change and changing ecosystem is leading to the extinction of more than 20% of species on the planet by the turn of this century. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. PESTEL Analysis, SWOT Analysis and Risk Analysis of Egypt Egypt PESTEL Analysis This report covers Egypt 's PESTEL (political, economic, social, technological, environmental and legal) analysis. In the context of the UK, the change of government from the Labour party to the Conservative/Liberal Democrat is bound to influence Cadburys operations. E - Economic. Learn how to, Our Mayo Clinic SWOT Analysis examines the Strengths, Weaknesses, Opportunities and Threats of one of, Technology is now taking over, and almost all fields are turning most tasks into digital., Copyright 2020 Weberience LLC. Attitude towards immigration has come under sharp focus. Looking forward, IMARC Group expects the market to reach US$ 4.1 Billion by 2028, exhibiting a growth rate (CAGR) of 8.8% during 2023-2028. Many US companies have incurred losses in Mexico in regular forex crisis in that country. SWOT analysis of Cadbury 12. It has decimated the culture of savings as people dont have enough to save. - Societal Norms and Hierarchy What sort of hierarchy and norms are acceptable in society also influence the types and level of consumption in a society. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. 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. If they were to save money here, itd be a higher return. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. 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. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. 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. 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. Chocolate Hawkins can make strategies based on the stable political environment. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. S - Social. 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. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. Chocolate Gourmet can borrow cheaply under such circumstances. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. 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. Business Analysis: Kirkland. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. The top corporate tax rates are . - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. 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. 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. - 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. Strategy planning process often requires five steps Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. It would focus on the macro-environmental factors that impact her growth and productivity. Chocolate Gourmet should be careful about the history of forex risk before entering new market. In 2015, the Hersheys Company surfed upon a sea of negatives. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. The Hershey Company is adopting new technology to create better treats. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . 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. - 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. But this strategy entails risks when interest rate will go up. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Analyze Strengths and Weaknesses of 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. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. Recommended: How to write a PEST analysis. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. 4. 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 . It is written by Linda A. Hill, Alison Berkley Wagonfeld and shed light on critical areas in field of Organizational Development, Creativity, Entrepreneurship, Leading teams, Product development that the protagonist in the case study is facing. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. 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. Definition of PESTEL / PEST / STEP Analysis. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. 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. For internal factors, check out the swot analysis of the UK. Japan is a small, but articulate, country. Global Chocolate Market - offers growth, outlook, trends, shares, Industry Analysis, opportunities, Key Players Forecast 2019 to 2025 IND: (+91) 949418 5556 , USA: (+1) 408-915-5456 sales@envisioninteligence.com
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