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. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. - 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. - 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. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. Technology is fast disrupting business models across various industries. In this essay, we will conduct a PESTEL analysis of the chocolate industry in the UK to identify the key external factors that could affect its future prospects. First with the consumer pushback against their usage of the Ivory Coast (and potentially child labor). 1. - 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. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. Table two below presents a PESTLE analysis for the industry Nestl are present . - 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. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. Perhaps it was also the consumers, who (according to Hershey) werent going to stores. Feel free to connect with us if you need business research. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Gourmet. 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. 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 . In each of these locations, the sales were weaker. The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. Being a specialty retailer of home dcor and gifts, their primary products are . The bond rating of national government is investment grade. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. In Asia authority is respected while in west it is something to rebel against. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. - 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. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. Analyze Strengths and Weaknesses of Chocolate Hawkins. 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. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. -Efforts to reduce consumption of water and energy and optimize transport routes. 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. - 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. 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. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. Temperature greatly affects the condition of the licorice; too much heat makes it heavy, while too much cold makes the candy lighter. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. - 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. Choosing the vision, mission and the reason of existence for Chocolate Gourmet. Chocolate Hawkins should be careful about the history of forex risk before entering new market. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. 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. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. Economic Status. In 2015, the company blamed American consumers for not buying more chocolate. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. 4. 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. According to an estimate, her annual GDP was 1.375 trillion US dollars in 2020. - 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. 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. If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. -Kew raw materials are sourced from local suppliers. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. - 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. - 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. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. Maybe all of these things were issues; shares were down 20 percent in that first quarter so something was definitely off. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. Amul Chocolates also . However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. 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. Expert Solution. 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. 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. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. Mars Incorporated. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. The remaining 35% of the chocolate industry was divided among Bourbon Corporation, Nestle S.A., Morinaga & Co, Fujiya, Kabaya Foods Corporation, and Cadbury. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. Being run by a Quaker family, their opposition to alcohol served as the basis of running a business that sold tea, coffee, cocoa, and liquid chocolate. Nestle 10. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. 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. - 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. - 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. Pestle Analysis Of Cadbury 1585 Words7 Pages Cadbury is a multinational organization. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. 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. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. Secondly governments from all parties adhere to the treaties made by the previous governments. E - Economic. Chocolate Hawkins needs to be careful about building marketing strategy that is dependent on Purchase on Credit consumer behavior. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. - Transparency & Digital Drive Chocolate Gourmet can use digitalization of various processes to overcome corruption in the local economy. In practice, analyses based on the PESTEL model are used in conjunction with studies on the micro-environment as part of the overall . 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. - 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. It would focus on the macro-environmental factors that impact her growth and productivity. 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. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. By last estimates, the 8 Cadbury factories in the UK had employed 3,000 workers. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. Strategy planning process often requires five steps - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Gourmet shouldnt be worried about the monopoly and restrictive trade practices law. We will make special emphasis on Cadbury UK, as this is where the company originally began. Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. 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. Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Feb 20, 2023 (The Expresswire) -- "Liqueur Chocolate Market" new research report for [2023] provides a comprehensive overview, including market size, share, growth rate, PESTEL analysis, SWOT . Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. Article. (Child Labor and Slavery in the Chocolate Industry, 2014). 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. Switzerland is one of the largest economies in the world. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. 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. L - Legal.

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