Then they scorned the dollar. 5. - Recycle Policies What are the recycle policies in prospective market and how Chocolate Gourmet can adhere to those policies. MBA Skool InstallCourses Home Courses Concepts SWOT One such act is called Shared Goodness; the company promises to keep communities, children, and the planet aligned with their business. Two giants dominated: Hershey's controlled 32.6% of the market and Mars had 29.6%. - Empowerment of Supply Chain Partners Chocolate Gourmet should analyze areas where technology can empower supply chain partners. - 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. This can help Chocolate Hawkins in numerous decisions such as plant location, product development, and pricing strategy. Available to download is a free sample file of the Chocolate Market report PDF. Attitude towards immigration has come under sharp focus. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. 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. - Attitude towards Authority Various cultures in different part of the world have different attitude towards authority. 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. It has decimated the culture of savings as people dont have enough to save. SWOT analysis of Amul Chocolates. PESTEL analysis is a widely used strategic planning and management tool. 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. 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. This PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. 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. What is PESTLE Analysis. Competition: The level of competition in the industry can affect pricing, marketing, and innovation, which can impact the profitability of individual companies. The Hershey Company is adopting new technology to create better treats. Save my name, email, and website in this browser for the next time I comment. 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. - 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. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Chocolate ingredients are more expensive. 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. Objective 3. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. Attitude towards immigration has come under sharp focus. The PEST Analysis is quite similar to that of the SWOT analysis (Srdjevic et al. 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. It first sold its items in United States in 1905. Know More Chocolate Gourmet can leverage such a situation to hire the best people in business. * Cadbury 's occupy about 72% of the chocolate /confectionery market with Dairy Milk Five Star Perk Gems * The organized sector in chocolates constitutes 40%. 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. This lack of clarity and responsibility highlights the company's failure to take action despite having all the resources and power to reduce child labour. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. - Business Laws Before entering into new market Chocolate Hawkins has to assess what are the business laws and how they are different from home market. - 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. Global Chocolate Market - offers growth, outlook, trends, shares, Industry Analysis, opportunities, Key Players Forecast 2019 to 2025 IND: (+91) 949418 5556 , USA: (+1) 408-915-5456 sales@envisioninteligence.com operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . GDP of Afghanistan in 2019 was 19,101 billion $. Introduction 2. - 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. PESTLE analysis of chocolate industry in JAPAN. 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. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. PESTEL analysis is mainly the assessment of macro environment factors. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. - Environmental Standards and Regulations both at National & Local Levels Often the environment policy at national and local level can be different. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. Psychographics and Demographics 14. Here's the pestle analysis of UK as follows; Political factors impacting the UK Government System If the legal system is not strong then Chocolate Hawkins can face numerous challenges from consumer petitions to shakedowns from authorities. The Hersheys Company hasnt adopted this approach just yet, likely because it would increase costs. Intellectual property laws, such as those related to trademarks and patents for unique chocolate products or manufacturing processes. Research Methodology 4. 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. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment developments. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Digital Chocolate, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Digital Chocolate, 5C Marketing Analysis of Digital Chocolate, 4P Marketing Analysis of Digital Chocolate, Porter Five Forces Analysis and Solution of Digital Chocolate, Porter Value Chain Analysis and Solution of Digital Chocolate, Case Memo & Recommendation Memo of Digital Chocolate, Blue Ocean Analysis and Solution of Digital Chocolate, Marketing Strategy and Analysis Digital Chocolate, VRIO /VRIN Analysis & Solution of Digital Chocolate, PESTEL / STEP / PEST Analysis of Digital Chocolate, Case Study Solution of Digital Chocolate, SWOT Analysis and Solution of Digital Chocolate, USA TODAY: Pursuing the Network Strategy (B) PESTEL / PEST / STEP Analysis & Solution, Washington Post (B) PESTEL / PEST / STEP Analysis & Solution, Keeping Google "Googley" (Abridged) PESTEL / PEST / STEP Analysis & Solution, Unisys: The Merger of Burroughs and Sperry PESTEL / PEST / STEP Analysis & Solution, Telegraph Media Group: The Newspaper Is Dead, Long Live the (E), Change - A Work in Progress PESTEL / PEST / STEP Analysis & Solution, Wikipedia in the Spotlight PESTEL / PEST / STEP Analysis & Solution, Walt Disney's Dennis Hightower: Weaving Together the European Operations PESTEL / PEST / STEP Analysis & Solution, Warner Cable (B) PESTEL / PEST / STEP Analysis & Solution, Man Jit Singh at Sony Entertainment Television (A) PESTEL / PEST / STEP Analysis & Solution, Cisco Systems: Developing a Human Capital Strategy (A) PESTEL / PEST / STEP Analysis & Solution, Organizational Development / MBA Resources. Market Segmentation 13. This analysis is also performed to assess the potential of a new market. 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. 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. 5. 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. 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. It will help Chocolate Gourmet in both developing environmentally friendly products and thwarting PR stumble blocks. The gender composition of labor market is a good indicator of disposal income of household, priorities of the households, and related needs. On the other hand, Nestle has a better record of recycling. - Time Taken for Court Proceedings Even if the country has best of the laws, it doesnt mean much if they cant be enforced in a timely manner. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. Although it took up aisle space, if it leads to creates even one sale, its worth the price to retailers and Hersheys. However, the stringent restrictions on the entry of skilled workers from rest of Europe can affect Cadburys hiring decisions in the future. - Intellectual Property Rights and Patents Protection Before entering new market Chocolate Hawkins should focus on the environment for intellectual property rights. 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. 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. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. The full-year net sales increased by 1 percent, even though the four-quarter net sales dropped by 1.6 percent. - 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. - 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. India's strong economic growth over the past decade has catalyzed the country's per capita disposable incomes . Out of which, her per capita income was 50,844 US dollars and it's 10th highest in the world. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. The bond rating of national government is investment grade. Strategy planning process often requires five steps Technology is fast disrupting business models across various industries. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. Know More Egypt SWOT Analysis This market research report covers SWOT (strengths, weaknesses, opportunities and threats) analysis for Egypt.