Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. The next element to address in the PESTEL analysis of Switzerland is the economic environment. They include political policies and stability as well as trade, taxation and fiscal policies ". - Technology transfer and licensing issues for Chocolate Gourmet laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Chocolate Gourmet can avoid shakedowns and IPR thefts. GDP of Afghanistan in 2019 was 19,101 billion $. Full-text available. - 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. 4. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. 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. PEST is an acronym for Political Economic Social and Technological factors which are used to assess the market for a business. 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. Note on the U.S. Chocolate Market case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Analyze the Chocolate Gourmet external competitive environment to identify opportunities and threats. Published by HBR Publications. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. 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 . Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. - 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. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. At EMBA PRO, It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. Chocolate Hawkins should do a primary research regarding how much time it often takes to conclude a court case in the country given the sort of legal challenges Chocolate Hawkins can face. S - Social. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. Switzerland is one of the largest economies in the world. 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. 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. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. Chocolate Hawkins can make strategies based on the stable political environment. PESTLE stands for: P - Political. Chocolate Gourmet can leverage such a situation to hire the best people in business. . The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. Technology is fast disrupting business models across various industries. Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. 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. 2006. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. PESTEL analysis is mainly the assessment of macro environment factors. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Show . Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. 4. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. Conducting a PESTLE analysis of the confectionery industry can help businesses operating in this sector to identify potential opportunities and threats, and to develop strategies to mitigate risks and capitalize on opportunities. - 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. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. These factors are Political, Legal, Economic and Social. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Some of the economic factors that affect the chocolate industry in the UK include: Consumer demand: Changes in consumer preferences and tastes can affect the demand for chocolate products, which can impact the industrys profitability. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. Published by HBR Publications. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. - 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. We will make special emphasis on Cadbury UK, as this is where the company originally began. 1. Strategy planning process often requires five steps 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. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. The company has attempted to make amends by creating socially-conscious programs to help children in need. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. Chocolate ingredients are more expensive. - 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. Chocolate industry Presentation 1. Chocolate Industry 5. 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. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. 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. Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. - 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. PESTEL analysis is mainly the assessment of macro environment factors. It first sold its items in United States in 1905. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. 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. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. 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. Political environment and other factors not only impact the cost of doing business but also long term sustainability. An even better option is Fair Trade Chocolate. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. Like with most food products, the major multiples have substantial buying power, and often buy directly from chocolate manufacturers. This lack of clarity and responsibility highlights the company's failure to take action despite having all the resources and power to reduce child labour. Product Positioning 15. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. 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. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. But its still a business at the end of the day; higher returns are most important for its survival. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . 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). Analyze Strengths and Weaknesses of Chocolate Hawkins. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. -Environmental policy is very important to Lindt and Sprngli. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual 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. 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. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. SWOT analysis of Amul Chocolates. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. 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. The chocolate industry has to anticipate the outcomes of their business operations in such a way that are in abidance with the rules and regulations made by the government of the country. Being a specialty retailer of home dcor and gifts, their primary products are . This analysis is also performed to assess the potential of a new market. 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. 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. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. 2. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. 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. E - Economic. According to Michael Porter organizational performance is to large extend determined by various industry forces. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Gourmet. PESTLE analysis. 2012). In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. Managers at Chocolate Hawkins need to examine three inter-related environments in order to come up with an effective strategy. E - Environmental. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). It would focus on the macro-environmental factors that impact her growth and productivity. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. Thus, disruption in the supply chain of raw materials . For internal factors, check out the swot analysis of the UK. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. - 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. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. This is why theyre using A.I to improve their products and encourage more sales. 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. - 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. 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? - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. PESTEL analysis is mainly the assessment of macro environment factors. 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. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. PESTLE analysis of chocolate industry in JAPAN. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage All Rights Reserved, Political factors: The politics and policies of chocolate, Economic factors: All problems, all the time, Social factors: A dedication to social responsibility and favor, then poor sales are obviously their fault, adopting new technology to create better treats, add this A.I technology to every one of their lines, the consumer pushback against their usage of the Ivory Coast (and potentially child labor), 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. 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? South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. - 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. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. - Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the country to improve its ease of doing business ranking. The company was founded in 1924 and has gained much popularity now. 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. 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. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. When too heavy, additional ingredients go to waste. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. As such, theyre looking to bring more good into the world by building thriving communities and becoming better stewards of the planet. In 2000, 81% of U.S. adults consumed chocolate. - 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. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. 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. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. 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. Your email address will not be published. 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. Luckily for the company, things turned around in the first two quarters of 2018. MBA Skool InstallCourses Home Courses Concepts SWOT - 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. 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. - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. Research Methodology 4. Required fields are marked *. 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. - 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. Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. 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. The rest of the billions of bottles end up polluting the ocean and endangering sea life. 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. - Financial Market Structure and Availability of Capital at Reasonable Rates The quantitative easing policy of Federal Reserve has led to liquidity flooding all across the global financial markets. environmental. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Then with the blame game where everything was the culprit for poor sales in 2015. - 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 market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. 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. The Hershey Company is adopting new technology to create better treats. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. - 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. - 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. It requires less temperature and energy to produce (unlike non-raw chocolate), and thatll also bring a smile to the faces of eco-friendly consumers. - 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. As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. As population is ageing it will require less tech intensive products. - 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. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. Secondly governments from all parties adhere to the treaties made by the previous governments. View. For example most of EU countries now want the EU citizen data to be saved in EU countries only. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. The bond rating of national government is investment grade. 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. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States.