Recommended: How to write a PEST analysis. In doing so, the companys machinery learned to adjust itself throughout the day. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. MBA Skool InstallCourses Home Courses Concepts SWOT - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. The next element to address in the PESTEL analysis of Switzerland is the economic environment. 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. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. Attitude towards immigration has come under sharp focus. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Chocolate Hawkins can make strategies based on the stable political environment. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. But conversely, it will also create new employment opportunities in countries like India. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. - 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. - 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. 4. PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. Cost Based Pricing could be a bad strategy under such conditions. 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. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. 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). Since then, the PESTLE analysis has become a popular strategic tool to assess the macro environment of organisations . L - Legal. As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. 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. Chocolate Industry 5. At EMBA PRO, This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. Feel free to connect with us if you need business research. 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. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Many nutritionists recommend people to reduce their consumption of chocolate and candy, which is likely to affect Cadbury sales in the future. Tax rates were also terrible, according to Mr. Bilbrey. For internal factors, check out the swot analysis of the UK. - 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. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Gourmet should focus on the environment for intellectual property rights. It would focus on the macro-environmental factors that impact her growth and productivity. - 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. Hersheys came under fire in 2011 for using cacao from Ivory Coasts in Africa. Chocolate Gourmet should be aware of presence of such practices in a country. Then with the blame game where everything was the culprit for poor sales in 2015. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. - 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. Chocolate Gourmet 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 Gourmet can face. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. 1. Strategy planning process often requires five steps In highly hierarchical societies the power of decision making often reside at the top. Secondly governments from all parties adhere to the treaties made by the previous governments. To them, Americans have the luxury of buying several premium chocolates. 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. Chocolate Industry in India 7. 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. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. Chocolate Industry Contents Titles 1. Switzerland is one of the largest economies in the world. - 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. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. Brazil Chocolate Market Analysis. The A.I transmits data to the cloud. If possible, the company plans to add this A.I technology to every one of their lines. Solutions. Hersheys has experienced a fair bit of controversy. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. 988 Words4 Pages. Execution of the strategy and building a feedback loop, using which managers at Chocolate Gourmet can fine tune processes and strategies going forward. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. With so many chocolate options and new additions for 2018, Mr. Buck seemed confident in the variety they offered, as well as the new marketing campaigns launched for the products. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. Cadbury is identical with the consumption of chocolate on a universal basis. - 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. 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. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. PESTEL analysis is mainly the assessment of macro environment factors. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. At EMBA PRO, 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. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. Thus, disruption in the supply chain of raw materials . The company was founded in 1924 and has gained much popularity now. In doing so, theyre committed to being more transparent about the ingredients. Those that cant afford it are also a problem because well, theyre not buying the chocolate. While also keeping the ingredients simple to maintain environmental sustainability. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. S - Social. Chocolate Gourmet can borrow cheaply under such circumstances. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. 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. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . There are four major factors identified to capsulate the different factors found from the different environmental influences. (Child Labor and Slavery in the Chocolate Industry, 2014). On the other hand, Nestle has a better record of recycling. 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. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. 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. In highly hierarchical societies the power of decision making often reside at the top. multiple grocers and impulse retail channels. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. - 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. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Chocolate Hawkins has to assess whether it can live with the fast pace of technology disruption in its industry. 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. 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. Hersheys has dedicated commitments in social responsibility. 2006. Definition of PESTEL / PEST / STEP Analysis. Economic Status. - 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. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. Called consumer trips by the company, buying in stores went down by 2 percent that year. Major Players 8. 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? What is PESTLE Analysis. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. PESTLE analysis of chocolate industry in JAPAN. 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. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. 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. Being a specialty retailer of home dcor and gifts, their primary products are . - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. 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. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. - 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 Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. But its still a business at the end of the day; higher returns are most important for its survival. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. Available to download is a free sample file of the Chocolate Market report PDF. The top corporate tax rates are . . 5. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. Chocolate consumption in India is low per capita consumption in urban India is estimated - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Article. 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. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. Net sales ($1,751.6 million) were an increase of 5.3 percent. Note on the U.S. Chocolate Market case study (referred as Chocolate Gourmet for purpose of this article) is a Harvard Business School (HBR) case study covering topics such as Strategy & Execution and strategic management. 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. According to Jose Lopez, Nestle's Vice . 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. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. 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. 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