The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. Chocolate Hawkins should be careful about the history of forex risk before entering new market. Political environment and other factors not only impact the cost of doing business but also long term sustainability. 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. Secondly governments from all parties adhere to the treaties made by the previous governments. Feel free to connect with us if you need business research. On the other hand, Nestle has a better record of recycling. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Major Players 8. Article. 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. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. Chocolate ingredients are more expensive. 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. 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. - 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. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. - 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. Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. 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. 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). 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. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. 2012). Packaging: There is a growing demand for sustainable and eco-friendly packaging solutions, which has led to the development of new technology for biodegradable or compostable packaging materials. (PDF) A CONTEMPORARY APPROACH FOR STRATEGIC MANAGEMENT - ResearchGate In highly hierarchical societies the power of decision making often reside at the top. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. - 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. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. This is an out-of-the-box usage of technology that hands Hersheys a competitive advantage. A Chocolate Industry Project Report - SlideShare(PDF) Pestle Analysis Introduction - ResearchGate The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. -Environmental policy is very important to Lindt and Sprngli. - 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. - 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. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. Market-Analysis-ppt-Goya.pdf - INTERNATIONAL BUSINESS AND(DOC) BERRYL"S PESTEL ANALYSIS | Noorazian Noordin - Academia.edu (Child Labor and Slavery in the Chocolate Industry, 2014). - Transition of Government and Changes in Policy There is consistency in policy making from one government to another. PESTLE Analysis of Nestle | Business Management & Marketing Technology is fast disrupting business models across various industries. - 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 imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. Luckily for the company, things turned around in the first two quarters of 2018. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. -Kew raw materials are sourced from local suppliers. 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. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Note on the U.S. Chocolate Market, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Note on the U.S. Chocolate Market, SWOT Analysis of Note on the U.S. Chocolate Market, 5C Marketing Analysis of Note on the U.S. Chocolate Market, 4P Marketing Analysis of Note on the U.S. Chocolate Market, Porter Five Forces Analysis and Solution of Note on the U.S. Chocolate Market, Porter Value Chain Analysis and Solution of Note on the U.S. Chocolate Market, Case Memo & Recommendation Memo of Note on the U.S. Chocolate Market, Blue Ocean Analysis and Solution of Note on the U.S. Chocolate Market, Marketing Strategy and Analysis Note on the U.S. Chocolate Market, VRIO /VRIN Analysis & Solution of Note on the U.S. Chocolate Market, PESTEL / STEP / PEST Analysis of Note on the U.S. Chocolate Market, Case Study Solution of Note on the U.S. Chocolate Market, SWOT Analysis and Solution of Note on the U.S. Chocolate Market, Kirin Brewery Co., Ltd.: The Dry Beer War PESTEL / PEST / STEP Analysis & Solution, Monsanto and Genetically Modified Organisms PESTEL / PEST / STEP Analysis & Solution, Cola Wars Continue: Coke and Pepsi in 2006 PESTEL / PEST / STEP Analysis & Solution, Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) PESTEL / PEST / STEP Analysis & Solution, Coca-Cola FEMSA's Contribution to Peace PESTEL / PEST / STEP Analysis & Solution, Vincor and the New World of Wine PESTEL / PEST / STEP Analysis & Solution, Arcor: Global Strategy and Local Turbulence (Abridged) PESTEL / PEST / STEP Analysis & Solution, Marks and Spencer Ltd. (A) PESTEL / PEST / STEP Analysis & Solution, PepsiCo: The Challenge of Growth Through Innovation PESTEL / PEST / STEP Analysis & Solution, Adam Baxter Co./Local 190: 1985 Negotiation, Local 190 Confidential Information PESTEL / PEST / STEP Analysis & Solution. PDF The Highs and Lows of Startups in The Cannabis Industry: a Pestle - 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. - 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. 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. Pest analysis of chocolate industry Free Essays | Studymode Cost Based Pricing could be a bad strategy under such conditions. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. This analysis is also performed to assess the potential of a new market. 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. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. 3. Analyze Strengths and Weaknesses of Chocolate Hawkins. Cadbury 11. 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. - 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. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Gourmet. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. 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 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. The A.I transmits data to the cloud. In one respect, Cadbury was born as a result of social factors. T - Technological. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. Brazil Chocolate Market Analysis. The American, Brazilian and Chinese dollars. PEST analysis of Afghanistan Recent moves in this regard include the use of pathogen testing systems and filing patents for heat-resistant chocolate. And to also use simpler ingredients for planet sustainability. The PESTLE Analysis of Chocolate Confectionery in the UK - Studentshare - 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. 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. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Liqueur Chocolate Market Size New Insights [2023-2027] | Share Analysis MBA PESTEL : Note on the U.S. Chocolate Market PESTEL / PEST Analysis In each of these locations, the sales were weaker. 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. - 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. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. Feel free to connect with us if you need business research. - 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. Chocolate industry Presentation 1. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. PESTLE Analysis of Chocolate Industry in Uk If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. According to Jose Lopez, Nestle's Vice . 2. 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. PESTLE Analysis of UK | Business Management & Marketing The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. . - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. PESTLE Analysis of Beverage Industry | Free PESTEL Analysis PESTEL analysis is mainly the assessment of macro environment factors. The implication for Chocolate Gourmet is that it can boost sales of its product in short run but also expose Chocolate Gourmet to medium term forex and currency depreciation risks. - 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. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. - 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. In 2000, 81% of U.S. adults consumed chocolate. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. Over one hundred million residents live in Japan and are forced to live in specific locations. Insulin Delivery Devices Market Industry Analysis Database F Factors that should be consider while launching a new product i.e Political, Economic, Sociological, Technological, Legal and Environmental and the questions we should take under Consideration Brazil Chocolate Market Analysis - Industry Report - Trends, Size & Share The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. Solutions. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. Chocolate Gourmet can borrow cheaply under such circumstances. Cadbury PESTLE Analysis, as Smooth as It's Chocolate 5. - Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. When too heavy, additional ingredients go to waste. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. If other business units follow suit, this can result in a loss of hundreds of jobs across the globe. Chocolate Industry Analysis - UKEssays.com Pest analysis chocolate industry uk. MBA PESTEL : Digital Chocolate PESTLE Analysis Food Industry United Kingdom (UK) These factors are Political, Legal, Economic and Social. - Corporate Social Responsibilities Culture Are Chocolate Hawkins present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. 2006. 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. Chocolate consumption in India is low per capita consumption in urban India is estimated Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. It has decimated the culture of savings as people dont have enough to save. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. 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. The company has attempted to make amends by creating socially-conscious programs to help children in need. Net sales ($1,751.6 million) were an increase of 5.3 percent. - 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. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. India Chocolate Market Share, Size, Industry Growth 2023-2028 - IMARC Group South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. Hersheys current Company President and Chief Executive Officer, Michele Buck, has said the company will continue to invest in their core bands and build upon strategies to further drive growth. 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. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. PEST Analysis of Cadbury - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. Chocolate Hawkins can make strategies based on the stable political environment. - 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. PESTLE Analysis - Industry & Market Research Guide - LibGuides at The company was founded in 1924 and has gained much popularity now. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. 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. Chocolate Gourmet should be careful about the history of forex risk before entering new market. This will help in better predicting the environment policy of the country. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety.