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They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. Product Positioning 15. The top corporate tax rates are . It would focus on the macro-environmental factors that impact her growth and productivity. Add if theyre not, then poor sales are obviously their fault right? - 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. The chocolate market was impacted by low sales volume due to the COVID-19 pandemic, including supply-side issues linked to quality and certification. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Rocky Mountain Chocolate Factory, Inc.. - 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. Chocolate Gourmet should be careful about the history of forex risk before entering new market. For example Trump not standing by US commitments created an environment of uncertainty. Amul Chocolates also . It has decimated the culture of savings as people dont have enough to save. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. There is consistency in both policy making and implementations of those policies. multiple grocers and impulse retail channels. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. This is why theyre using A.I to improve their products and encourage more sales. Analyze Strengths and Weaknesses of Chocolate Gourmet. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. An even better option is Fair Trade Chocolate. It can enable Chocolate Gourmet to hire skilled workforce at competitive salaries. For example if the supply chain is not flexible it can lead to bottlenecks if shipments from one part of the world are delayed because of sudden climate shift. - 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. Chocolate Hawkins should have capabilities to navigate under this hyper sensitive environment. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. - 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. - 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. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. 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. . 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. PESTEL Analysis, SWOT Analysis and Risk Analysis of Egypt Egypt PESTEL Analysis This report covers Egypt 's PESTEL (political, economic, social, technological, environmental and legal) analysis. 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. - 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. 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. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. - 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. 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. Brexit: The UKs departure from the European Union may have an impact on the chocolate industry, such as changes in trade agreements and regulations. For launching a new product we use PESTLE or SWOT strategies and let us Consider that we are launching a new chocolate product . 2. In Asia authority is respected while in west it is something to rebel against. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). In Asia authority is respected while in west it is something to rebel against. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. PESTEL analysis is mainly the assessment of macro environment factors. 2012). 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. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. Market Segmentation 13. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. 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. - 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. Definition of PESTEL / PEST / STEP Analysis. Environmental regulations, such as those related to waste disposal and sustainable sourcing of cocoa and other ingredients. Cadbury is a well-known producer and distributor of chocolate and milk-based products. 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. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. Those that cant afford it are also a problem because well, theyre not buying the chocolate. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. SWOT analysis of Cadbury 12. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Called consumer trips by the company, buying in stores went down by 2 percent that year. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. He introduced the framework back in 1964 in his book " Scanning the Business Environment ". 2006. - Intellectual Property Rights Protection Chocolate Hawkins should assess the level of protection that intellectual property rights get under the legal system of the country. Technology is fast disrupting business models across various industries. 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. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. PESTEL analysis is mainly the assessment of macro environment factors. - Demographic Trend The demographic trend is one of the key factors in demand forecasting of an economy. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. They're advanced in telecommunications yet follow a patriarchal family system. 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. - 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. Demographics: The UK has an aging population, which may impact chocolate consumption patterns as older consumers may be less likely to consume chocolate or may have different preferences than younger consumers. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. 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 following is a PEST analysis of Cadbury which also will help to shed light on various external factors that affect the chocolate industry. - Focus & Spending on Renewable Technologies How much of the budget is spend on renewable energy sources and how Chocolate Hawkins can make this investment as part of its competitive strategy. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. 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. 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. 5. The market size for Switzerland Chocolate in 2021 was estimated at around USD 1.63 Bn. PESTLE (sometimes PEST) is a framework for analyzing the external macro environment of a business or industry, usually specific to a particular country. Major Players 8. Strategy planning process often requires five steps Some political factors that can affect the chocolate industry in the UK include: Trade policies: Changes in trade policies and tariffs can affect the cost and availability of raw materials, as well as the export and import of finished chocolate products. As an experiment, the company used a kiosk powered by Affectivas technology to encourage consumers to smile into the machine for a free sample. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. 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. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. In 2011, it is seen that major chocolate . The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. - 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. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. The UK chocolate market is the biggest in all European market. Research Methodology 4. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. Lindt PESTLE Analysis By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. - 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. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. For example most of EU countries now want the EU citizen data to be saved in EU countries only. 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. 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. Analyze Strengths and Weaknesses of Chocolate Hawkins. In this section, we present a brief analysis of each element in relation to the . An Analytic Study of Organic Food Industry as Part of Healthy Eating Habit in Turkey: Market Growth, Challenges and Prospects. In highly hierarchical societies the power of decision making often reside at the top. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. 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. Chocolate in a Bloom 6. 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 The bond rating of national government is investment grade. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. It first sold its items in United States in 1905. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. Theyve adapted Microsoft-powered artificial intelligence (A.I) in their Pennsylvania factory. Thus significantly impacting the ability of Chocolate Gourmet to build sustainable competitive advantage At EMBA PRO, As population is ageing it will require less tech intensive products. 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. 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 . The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Gourmet. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. 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. -Efforts to reduce consumption of water and energy and optimize transport routes. 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. Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. 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. 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. But conversely, it will also create new employment opportunities in countries like India. This will help in better predicting the environment policy of the country. Since then, chocolate and Cadbury have been part of the same sentence. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. - 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. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. Nestle 10. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. SWOT analysis of Amul Chocolates. 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. - Inflation Rate The inflation rate can impact the demand of Chocolate Hawkins products. 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. GDP of Afghanistan in 2019 was 19,101 billion $. 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. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. The Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. - Fiscal and Monetary Policies The Republican government tax break culture has increased the deficit and it can lead to fiscal trouble for the economy in coming years. - Political Governance System Based on the information provided in the Note on the U.S. Chocolate Market case study, it seems that the country have a stable political system. What is PESTLE Analysis. 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. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies.