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. 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. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. Chocolate Hawkins should be careful about the history of forex risk before entering new market. 1 . But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. The Hershey Company is adopting new technology to create better treats. 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. - 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. And to also use simpler ingredients for planet sustainability. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. At EMBA PRO, Japan is a small, but articulate, country. 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. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. Brazil Chocolate Market Analysis. Save my name, email, and website in this browser for the next time I comment. Then they scorned the dollar. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. Attitude towards immigration has come under sharp focus. In 2015, the Hersheys Company surfed upon a sea of negatives. 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. Introduction 2. It is also imperative to use technology to create competitive advantage in the industry. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. multiple grocers and impulse retail channels. . - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. Yasemin Oraman. Its GDP in 2019 was $703.8 billion that represented 0.58% of the world economy (Trading Economics, 2020). - Business Laws Before entering into new market Chocolate Hawkins has to assess what are the business laws and how they are different from home market. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. Today, we'll study the pestle analysis of UK. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. 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. 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. There is consistency in both policy making and implementations of those policies. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. PESTLE Analysis for Cannabis Startups PESTLE is the acronym for a framework which analyzes the Political, Economic, Social, Technological, Legislative, and Environmental (mostly in the ecological sense) factors that have direct and indirect impacts on a business. Over one hundred million residents live in Japan and are forced to live in specific locations. -Environmental policy is very important to Lindt and Sprngli. According to the Central Statistics Office, the share of agriculture was 78%, services 16%, and industry 6% in GDP. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. . 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. -Kew raw materials are sourced from local suppliers. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. When too heavy, additional ingredients go to waste. 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. - 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. To them, Americans have the luxury of buying several premium chocolates. 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. 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. environmental. Those that cant afford it are also a problem because well, theyre not buying the chocolate. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. It has decimated the culture of savings as people dont have enough to save. 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. - 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. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. - 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. Published by HBR Publications. 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. Chocolate Industry Contents Titles 1. Switzerland is one of the largest economies in the world. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. - 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. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa, with over 1,739 miles of coastline that stretches along the South Atlantic and Indian oceans. Your email address will not be published. The rest of the billions of bottles end up polluting the ocean and endangering sea life. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. For example most of EU countries now want the EU citizen data to be saved in EU countries only. 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 . 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 analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. Cadbury is identical with the consumption of chocolate on a universal basis. This will help in better predicting the environment policy of the country. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. The revenue in the chocolate market is projected to reach 340243.54 tons in 2022 and the market is expected to register a CAGR of 5.90% in terms of volume. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. 1. The snapshot of this . Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. E - Environmental. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. - 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. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. We will make special emphasis on Cadbury UK, as this is where the company originally began. 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). Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. - 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. 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. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. According to Jose Lopez, Nestle's Vice . - 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. A SWOT analysis of handbags, A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis is a strategic planning tool used to evaluate the internal and external factors that can impact the success, Your email address will not be published. Feel free to connect with us if you need business research. T - Technological. Chocolate Industry 5. - 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. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. 988 Words4 Pages. Introduction In 1966 Carl Kirkland co-founded Kirkland's in Jackson, Tennessee (Kir15). - 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. Chocolate Gourmet should be careful about the history of forex risk before entering new market. Restructuring of the European chocolate industry and its impact on cocoa production in West Africa. (Child Labor and Slavery in the Chocolate Industry, 2014). 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 environment and other factors not only impact the cost of doing business but also long term sustainability. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. 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. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. PEST analysis is used to control the external factors of what happens outside the . The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. - 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. KitKat PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. Solutions. 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. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs.
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