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Technology is fast disrupting business models across various industries. - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. 2006. Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. Recommended: How to write a PEST analysis. Macroeconomics is the study of large-scale economic elements, often relating to countries as a whole.The factors this analysis represents are political, economic, social, technological, legal and environmental. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). Market Overview 2023-2028: The India chocolate market size reached US$ 2.4 Billion in 2022. The bond rating of national government is investment grade. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. 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 . PESTEL analysis is mainly the assessment of macro environment factors. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. For internal factors, check out the swot analysis of the UK. - 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. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. Chocolate Gourmet should be aware of presence of such practices in a country. 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. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Major Players 8. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. - 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. 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. Chocolate Industry in India 7. 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. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. 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. This will help in better predicting the environment policy of the country. Political environment and other factors not only impact the cost of doing business but also long term sustainability. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . 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. Tax rates were also terrible, according to Mr. Bilbrey. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). Nestle 10. - 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. 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. - 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. - 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. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. - 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. Then they scorned the dollar. 2. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. The next element to address in the PESTEL analysis of Switzerland is the economic environment. A Comprehensive Project report on Chocolate Industry Bhavik Parmar Follow Co-Founder And MD at KadiBuddy Advertisement Advertisement Recommended Final report on chaco Shailesh Kumar 3.7k views 66 slides Chocolate industry project report hasnain2 6.2k views 74 slides Chocolates & confectionery Varun Deshpande 18.6k views 29 slides The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. Strategy planning process often requires five steps it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. Analyze Strengths and Weaknesses of Chocolate Gourmet. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Gourmet business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. In each of these locations, the sales were weaker. 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. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. 1 . This is why theyre using A.I to improve their products and encourage more sales. - Political Governance System Based on the information provided in the Note on the U.S. Chocolate Market case study, it seems that the country have a stable political system. -Recycled, recyclable and biodegradable packaging. Required fields are marked *. The Hershey Company is adopting new technology to create better treats. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Chocolate Industry 5. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. 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. Product Positioning 15. 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. And to also use simpler ingredients for planet sustainability. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. Know More - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. Market Segmentation 13. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. 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. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Many US companies have incurred losses in Mexico in regular forex crisis in that country. The company was founded in 1924 and has gained much popularity now. S - Social. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. Hence, Cadbury and its range of products are now owned by the American confectionary giant. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. Economic Status. 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. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. The PEST analysis looks at four types of external environmental elements: P -Political factors in an economy include various forms of government intervention and political lobbying, such as . 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. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. 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 Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. But while chocolate and other products sold by the company are socially acceptable worldwide, Cadbury has been on the receiving end of controversies, the recent one involving Cadbury products being Halal Certified to cater to Muslim markets around the world. Published by HBR Publications. When too heavy, additional ingredients go to waste. In doing so, theyre committed to being more transparent about the ingredients. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. multiple grocers and impulse retail channels. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage -Efforts to reduce consumption of water and energy and optimize transport routes. - 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 doing so, the companys machinery learned to adjust itself throughout the day. Chocolate Hawkins can make strategies based on the stable political environment. 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. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. Chocolate Gourmet can borrow cheaply under such circumstances. Net sales ($1,751.6 million) were an increase of 5.3 percent. 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. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. View. Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. 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. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. 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. These factors are Political, Legal, Economic and Social. PESTLE Analysis of Nestle in light of Industry 4.0 Political and Economic Forces Politcal Factor Sustainable Politics: PESTLE Analysis Industry-4.0 efforts in UK are politically driven, commitment from the top is a motivating factor for companies to adopt new practices. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. - 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. Cost Based Pricing could be a bad strategy under such conditions. - Nature of Social Contract between Government & Society Before entering into a market Chocolate Gourmet needs to understand the nature of social contract between government and society. Since then, chocolate and Cadbury have been part of the same sentence. The A.I transmits data to the cloud. Being a specialty retailer of home dcor and gifts, their primary products are . 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. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. 2. Chocolate consumption in India is low per capita consumption in urban India is estimated It would focus on the macro-environmental factors that impact her growth and productivity. In one respect, Cadbury was born as a result of social factors. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. - 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. 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. Chocolate Gourmet can leverage such a situation to hire the best people in business. 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. The top corporate tax rates are . This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. 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. 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. 1. -Environmental policy is very important to Lindt and Sprngli. Cadbury is identical with the consumption of chocolate on a universal basis. E - Environmental. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. Some of the economic factors that Chocolate Hawkins 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. In Asia authority is respected while in west it is something to rebel against. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. An even better option is Fair Trade Chocolate. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. According to Michael Porter organizational performance is to large extend determined by various industry forces. 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.