U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. Then they scorned the dollar. By 2008, the company had expanded its operations into four countries and Digital Chocolate was one of the top developers of soloplayer games for standard mobile phones and iPhones. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. 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. One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. Different countries have different attitude towards health and safety so it is better for Chocolate Gourmet to conduct a thorough research before entering the market. 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. 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. PEST analysis is used to control the external factors of what happens outside the . Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. At EMBA PRO, Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. 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. In 2009, Hawkins was eager for Digital Chocolate to start developing new types of mobile games that could be played by multiple players over a period of time. 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. Show . we specialize at providing professional PESTEL analysis & other strategic management MBA resources. Health trends: The UK government has launched several campaigns in recent years to promote healthy eating, which may impact the marketing and consumption of chocolate products. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. Major Players 8. Article. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. In the context of the UK, the change of government from the Labour party to the Conservative/Liberal Democrat is bound to influence Cadburys operations. According to the date compiled by CNN Money, the Philippines is projected to be the fourth fastest in the world, that has a GDP at 6.7%. Chocolate Gourmet can make strategies based on the stable political environment. In each of these locations, the sales were weaker. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage Introduction 2. PESTLE analysis of chocolate industry in JAPAN. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. Amul Chocolates also . Australia is one of the world's most advanced developed countries mainly because of the economical strengths. 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 . Chocolate Hawkins can leverage this trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Published by HBR Publications. View. - Securities Law What are the securities law in the country and what are the conditions to list the company on national or regional stock exchange. 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. Your email address will not be published. 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. 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. - 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. Today, we'll study the pestle analysis of UK. SWOT analysis of Amul Chocolates. environmental. An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. But its still a business at the end of the day; higher returns are most important for its survival. Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . 2. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. Chocolate Hawkins can make strategies based on the stable political environment. 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. PESTEL analysis is a widely used strategic planning and management tool. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. 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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. 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. Chocolate Gourmet should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. The Hershey Company is adopting new technology to create better treats. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Cadbury is a well-known producer and distributor of chocolate and milk-based products. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . 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 Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. 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. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. 5. Opening shop in the early 19 th century, 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. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Sep 2014. The use and consumption of raw organic chocolate are growing in popularity in the raw food and vegan scenes. 3. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. Mars Incorporated. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. Solutions. 988 Words4 Pages. 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. 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). The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. -Efforts to reduce consumption of water and energy and optimize transport routes. This analysis is also performed to assess the potential of a new market. For internal factors, check out the swot analysis of the UK. 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. According to Jose Lopez, Nestle's Vice . This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. Strategy planning process often requires five steps In doing so, theyre committed to being more transparent about the ingredients. - 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. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. - 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. But this strategy entails risks when interest rate will go up. 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. - Influence of Climate Change How climate change will impact Chocolate Gourmet business model and supply chain. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. PESTLE The SWOT analysis for Lindt & Sprngli is presented below in a table followed by the detailed analysis report. Psychographics and Demographics 14. Cadbury is synonymous with chocolate consumption worldwide. 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? - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. Ethical and sustainable sourcing: There is increasing concern among consumers about the environmental and social impact of chocolate production, including issues related to child labor, deforestation, and fair trade. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. 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 Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. - Price Fluctuations in both Local and International Markets Compare to the level of quantitative easing in last decade the prices of Chocolate Gourmet products and prices of overall products have remained sticky in the US market. Business Analysis: Kirkland. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Chocolate Gourmet can leverage such a situation to hire the best people in business. 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. - 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. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. 4. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. 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. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. 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 Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. 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. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. 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. Amul Chocolates is a product category of the milk company Amul which is the brand name for the Gujarat Cooperative Milk Marketing Federation. Often companies enter the arena without requisite infrastructure to support the technology oriented model. 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. 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.
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