This is a decrease, compared to the growth of about 10.84% per year, registered in 2015-2019. Chocolate Industry in India 7. - 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. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. View. 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. 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. Some of the political factors are governance system, democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc. PESTEL analysis for the chocolate confectionery industry in Italy shows that there are 4 major factors impacting the overall market environment. For internal factors, check out the swot analysis of the UK. 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%. The first step in conducting a PESTEL analysis is to gain an understanding of the brand. Psychographics and Demographics 14. At EMBA PRO, Analyze Strengths and Weaknesses of Chocolate Gourmet. Chocolate harvested from cocoa trees is susceptible to pests, diseases, and pesticide use. Some of the legal factors that may impact the chocolate industry in the UK include: Some environmental factors that may affect the chocolate industry in the UK include climate change and its impact on cocoa production, deforestation and habitat destruction in cocoa-growing regions, resource consumption and waste generation in the manufacturing process, and the environmental impact of packaging and transportation. 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. Technology is fast disrupting business models across various industries. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. In 2011, it is seen that major chocolate . Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. Often companies enter the arena without requisite infrastructure to support the technology oriented model. -Kew raw materials are sourced from local suppliers. 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. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. 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. 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 He introduced the framework back in 1964 in his book " Scanning the Business Environment ". 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. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. The company has attempted to make amends by creating socially-conscious programs to help children in need. 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. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. The American, Brazilian and Chinese dollars. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. - 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. 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). - 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. Quality control: Advanced technology such as spectroscopy and X-ray analysis are used to improve the quality and consistency of chocolate products. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. 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. This means less error in product development and packaging, possibly saving the company millions in expenses and product waste. Required fields are marked *. GDP of Afghanistan in 2019 was 19,101 billion $. - 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. - 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 Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Chocolate Hawkins. . Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage 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. 1 . Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . 1. Market share was divided among mass-market, gourmet, and cause-related manufacturers. 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 . But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. Journal of Economic Geography, 1 (4), pp.405 Norton, Marcy. 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. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. This can help Chocolate Gourmet to bring in more transparency and make supply chain more flexible. - Technology transfer and licensing issues for Chocolate Hawkins laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Chocolate Hawkins can avoid shakedowns and IPR thefts. 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. - Unrest within the Country & Chances of Civil Unrest We dont think that Chocolate Hawkins business operations are facing any dangers from any kind of civil unrest or internal militant operations in the country. Then they scorned the dollar. Economic Status. 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. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. Australia is one of the world's most advanced developed countries mainly because of the economical strengths. 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. 988 Words4 Pages. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. Glenn Carroll, Greg Powell (2018), "Note on the U.S. Chocolate Market Harvard Business Review Case Study. For example Trump not standing by US commitments created an environment of uncertainty. - 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. The company was founded in 1924 and has gained much popularity now. - 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. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. 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. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. 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. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. Chocolate in a Bloom 6. Rocky Mountain Chocolate Factory, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. - 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. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. There is consistency in both policy making and implementations of those policies. 4. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. E - Economic. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. It is commonly used in desserts, confections, and as a flavouring ingredient in various foods. Chocolate Gourmet can leverage such a situation to hire the best people in business. MBA Skool InstallCourses Home Courses Concepts SWOT As population is ageing it will require less tech intensive products. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . But its still a business at the end of the day; higher returns are most important for its survival. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. The next element to address in the PESTEL analysis of Switzerland is the economic environment. - 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. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. Cadbury is a well-known producer and distributor of chocolate and milk-based products. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. 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 Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. To them, Americans have the luxury of buying several premium chocolates. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. Political environment and other factors not only impact the cost of doing business but also long term sustainability. Many US companies have incurred losses in Mexico in regular forex crisis in that country. PESTEL analysis is mainly the assessment of macro environment factors. But often in emerging countries these agencies delay the process as a tactic to extract bribes. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. 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.