In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . 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. - 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. - 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. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Chocolate Hawkins should be careful about the history of forex risk before entering new market. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. Amul 9. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. Chocolate Gourmet 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 Gourmet. But even then, recession did play its part as the company managed only to hit the lower end of its 4%-6% revenue for 2009, the peak of the recession. - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. It would focus on the macro-environmental factors that impact her growth and productivity. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. To them, Americans have the luxury of buying several premium chocolates. 4. (PDF) A CONTEMPORARY APPROACH FOR STRATEGIC MANAGEMENT - ResearchGate PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. - 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. 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. Switzerland is one of the largest economies in the world. - 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. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. 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. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. But this strategy entails risks when interest rate will go up. 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. 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? It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Introduction 2. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. - Cost of Production and Trends Chocolate Hawkins should assess - What are the cost of production trends in the economy and level of automatization. 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. 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. 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. Skip to main content Other CIPD Websites CIPD UK CIPD Middle East CIPD Ireland People Profession CIPD Learning Hub People ManagementPM jobs Log in / Register Go to the home page The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. An even better option is Fair Trade Chocolate. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. If the legal system is not strong then Chocolate Gourmet can face numerous challenges from consumer petitions to shakedowns from authorities. In 2011, it is seen that major chocolate . - 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. Chocolate Gourmet should be careful about the history of forex risk before entering new market. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. Table two below presents a PESTLE analysis for the industry Nestl are present . The company was founded in 1924 and has gained much popularity now. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). Chocolate in China: Enter the Sweet Chocolate Market Pestle on chocolate industry in the uk Free Essays | Studymode Opening shop in the early 19thcentury, 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. 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. MBA PESTEL : Note on the U.S. Chocolate Market PESTEL / PEST Analysis Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. - 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. 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. 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 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. Chocolate Mould Market Share, Size Global Growth Analysis, T Attitude towards immigration has come under sharp focus. For example most of EU countries now want the EU citizen data to be saved in EU countries only. At EMBA PRO, They include political policies and stability as well as trade, taxation and fiscal policies ". This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. (PDF) Pestle Analysis Introduction - ResearchGate 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. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market 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. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. It first sold its items in United States in 1905. Pestel analysis of chocolate industry england Free Essays - StudyMode Technology is fast disrupting business models across various industries. 2. PESTLE analysis. In one respect, Cadbury was born as a result of social factors. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. This is why theyre using A.I to improve their products and encourage more sales. 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. Pestle Analysis Korean Chocolate Industry - Term Paper - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. S - Social. Know More PESTLE analysis of chocolate industry in JAPAN. 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. The American, Brazilian and Chinese dollars. 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 . And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. PEST ANALYSIS The PEST analysis is a useful tool for understanding market growth or decline and as such the position potential and direction for a business. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. 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. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. 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. 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. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System - 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. The company would benefit greatly by automating several elements of the supply chain. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Chocolate Gourmet should be aware of presence of such practices in a country. - Corporate Social Responsibilities Culture Are Chocolate Gourmet present CSR efforts applicable in the new market or does it needs to have new initiative to cater to the prospective market. Recommended: How to write a PEST analysis. Major Players 8. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. - 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. - 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. Research Methodology 4. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. PESTLE stands for: P - Political. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. PDF The Highs and Lows of Startups in The Cannabis Industry: a Pestle 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. This analysis is also performed to assess the potential of a new market. Lindt PESTLE Analysis | MBA Skool PEST analysis.docx - World Cocoa Industry1 WORLD COCOA INDUSTRY Author Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Macro Environment Analysis: PEST Analysis: Order custom essay Nestle: Macro Environment and Micro Environment Analysis with free plagiarism report GET ORIGINAL PAPER. - 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. - Health & Safety Laws What are the health and safety laws in the country and what Chocolate Gourmet needs to do to comply with them. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. Yasemin Oraman. 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 . - Employment Rate If the employment rate is high then it will impact Chocolate Gourmet strategies in two ways it will provide enough customers for Chocolate Gourmet products, and secondly it will make it expensive for Chocolate Gourmet to hire talented & skillful employees. Solutions. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. Hersheys has dedicated commitments in social responsibility. 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. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. 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. - 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.