PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. T - Technological. Kurien, the cooperative society makes milk and various milk products like curd, cheese, milk powder, cheese spread and chocolate amongst others. 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. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. They also have the Nourishing Minds program, designed to provide children with basic nutritional needs. - 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. Being a specialty retailer of home dcor and gifts, their primary products are . PESTLE ANALYSIS TECHNOLOGICAL ANALYSIS The Goya chocolate has a global supply chain. It first sold its items in United States in 1905. Environmental factors are fast gaining traction not only among consumers but also among regulators and policy makers. - Consumer Protection Laws Chocolate Hawkins needs to know what are the consumer laws, what is the rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the role activist groups in enforcement of consumer protection laws. It has decimated the culture of savings as people dont have enough to save. - 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. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. According to Jose Lopez, Nestle's Vice . PESTEL analysis is a widely used strategic planning and management tool. it can be said that PESTEL analysis is a useful framework to understand the external environment in which an organization operates. Of course, the format of the presentation barred us from discussing how the acquisition of Kraft Foods will affect company performance in the future. Experience economy is one of the fastest growing segments both among millennials and among baby-boomers. 4. Developing strategies that can capitalize on Chocolate Hawkins strengths and help mitigate weaknesses and impact of threats of macro-environment. If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. 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. In each of these locations, the sales were weaker. Although the company is clearly attempting to bring social good into the world, it doesnt stop them from blaming consumers when sales are declining. The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. You can download Excel Template of PESTEL / PEST / STEP Analysis & Solution of Note on the U.S. Chocolate Market, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, Case Study Solution & Analysis of Note on the U.S. Chocolate Market, SWOT Analysis of Note on the U.S. Chocolate Market, 5C Marketing Analysis of Note on the U.S. Chocolate Market, 4P Marketing Analysis of Note on the U.S. Chocolate Market, Porter Five Forces Analysis and Solution of Note on the U.S. Chocolate Market, Porter Value Chain Analysis and Solution of Note on the U.S. Chocolate Market, Case Memo & Recommendation Memo of Note on the U.S. Chocolate Market, Blue Ocean Analysis and Solution of Note on the U.S. Chocolate Market, Marketing Strategy and Analysis Note on the U.S. Chocolate Market, VRIO /VRIN Analysis & Solution of Note on the U.S. Chocolate Market, PESTEL / STEP / PEST Analysis of Note on the U.S. Chocolate Market, Case Study Solution of Note on the U.S. Chocolate Market, SWOT Analysis and Solution of Note on the U.S. Chocolate Market, Kirin Brewery Co., Ltd.: The Dry Beer War PESTEL / PEST / STEP Analysis & Solution, Monsanto and Genetically Modified Organisms PESTEL / PEST / STEP Analysis & Solution, Cola Wars Continue: Coke and Pepsi in 2006 PESTEL / PEST / STEP Analysis & Solution, Bitter Competition: The Holland Sweetener Co. vs. NutraSweet (G) PESTEL / PEST / STEP Analysis & Solution, Coca-Cola FEMSA's Contribution to Peace PESTEL / PEST / STEP Analysis & Solution, Vincor and the New World of Wine PESTEL / PEST / STEP Analysis & Solution, Arcor: Global Strategy and Local Turbulence (Abridged) PESTEL / PEST / STEP Analysis & Solution, Marks and Spencer Ltd. (A) PESTEL / PEST / STEP Analysis & Solution, PepsiCo: The Challenge of Growth Through Innovation PESTEL / PEST / STEP Analysis & Solution, Adam Baxter Co./Local 190: 1985 Negotiation, Local 190 Confidential Information PESTEL / PEST / STEP Analysis & Solution. Managers at Chocolate Gourmet need to examine three inter-related environments in order to come up with an effective strategy. 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. Chocolate Gourmet should consider demographic trends before new product developments and integrate features that cater to this segment. At EMBA PRO, - 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. Chocolate Industry Contents Titles 1. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. - Influence of Climate Change How climate change will impact Chocolate Hawkins business model and supply chain. - Government Spending As mentioned in the political factors, government of the country is running deficit budgets. - Government Regulations and Deregulations The government is adhering to all the rules and regulations under World Trade Organization norms. 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. PEST is an acronym that stands for Political, Economic, Socio-cultural and Technological. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. 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. This will enable the Chocolate Gourmet to determine if required can it hire talent globally to work in that particular market. Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. The Chocolate Confections Corporation PESTEL Analysis will look at the external factors - political, economic, social, technological, environmental, and legal. Hi, We can write an analysis or assignment on any topic of your choice, PESTLE Analysis of Chocolate Industry in Uk. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. 988 Words4 Pages. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. 2. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. But its cheaper to use than organic chocolate, which is pesticide-free, GMO-free, and synthetic fertilizers-free. Whereas it will reach USD 2.11 Bn by 2029 with a significant growth rate of 3.28% Chocolate is a very popular and sweet, food item made from cocoa beans. Much of this gain in retail value could be attributed to a shift of U.S. consumers toward higher priced chocolates. This will help in better predicting the environment policy of the country. Major Players 8. But this strategy entails risks when interest rate will go up. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. - International Trade & Other Treaties The country has a good record of adhering to international treaties it has done with various global partners. - 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. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. 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%. This analysis helps businesses to make informed decisions and take advantage of opportunities while mitigating potential risks. Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. 1. Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. Product Positioning 15. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Chocolate Hawkins should carefully analyze the attitude towards authority before launching a marketing campaign for its products and services. And although theyre doing better financially in 2018 compared to the disastrous year of 2015, the company is not on the hunt to increase expenses just yet. - 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. Chocolate Gourmet 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 Gourmet. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Cadbury is a well-known producer and distributor of chocolate and milk-based products. It speaks out against child labor and slave labor, while also using sustainable practices for the environment. This technology could be adopted for Hersheys other products, particularly with chocolate. 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. (Child Labor and Slavery in the Chocolate Industry, 2014). Definition of PESTEL / PEST / STEP Analysis. Political factors: Government policies and regulations can have a significant impact on the confectionery industry. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. - Intellectual Property Rights Protection Chocolate Gourmet should assess the level of protection that intellectual property rights get under the legal system of the country. 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. - 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. Analyze Strengths and Weaknesses of Chocolate Hawkins. 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. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. - 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. - 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. Over one hundred million residents live in Japan and are forced to live in specific locations. - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. Sales were down only slightly, and the CEO John Bilbrey, as well as CFO Patricia Little, blamed everything for it. PESTEL analysis is mainly the assessment of macro environment factors. Strategy planning process often requires five steps Required fields are marked *. 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? 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. 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 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. - 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. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. 3. 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. - Level of Acceptance of Technology in the Society Chocolate Hawkins has to figure out the level of technology acceptance in the society before launching new products. - Types of Immigration & Attitude towards Immigrants Given the latest developments such as Brexit and Immigrant detention on Southern border of United States. E - Environmental. It requires less temperature and energy to produce (unlike non-raw chocolate), and thatll also bring a smile to the faces of eco-friendly consumers. 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. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. - Technology transfer and licensing issues for Chocolate Gourmet laws and culture of licensing of IPR and other digital assets should be analyzed carefully so that Chocolate Gourmet can avoid shakedowns and IPR thefts. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. - 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. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. . 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. South Africa, officially the Republic of South Africa, is a country located at the southern tip of Africa, with over 1,739 miles of coastline that stretches along the South Atlantic and Indian oceans. -Kew raw materials are sourced from local suppliers. The conditions of a country affect the businesses within it, and PESTLE analysis helps these businesses understand the possible effects . The Hershey's Company is the largest chocolate manufacturer in North America and yet they've hit major setbacks both politically and economically. Strategy planning process often requires five steps Conducting a PESTLE analysis of the confectionery industry can help businesses operating in this sector to identify potential opportunities and threats, and to develop strategies to mitigate risks and capitalize on opportunities. The UK chocolate market is the biggest in all European market. - 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. The political factors play a huge role in not only investment decision by transnational corporations but also by companies such as Chocolate Hawkins. In this section, we present a brief analysis of each element in relation to the . Called consumer trips by the company, buying in stores went down by 2 percent that year. Today, Kirkland's main sales support center is located in Brentwood, Tennessee which supports 337 stores in 35 states. 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. 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. - Cost of Production and Trends Chocolate Gourmet should assess - What are the cost of production trends in the economy and level of automatization. Often companies enter the arena without requisite infrastructure to support the technology oriented model. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. - Gender Composition in Labor Market Chocolate Gourmet can use gender composition of labor market to understand the level of liberal nature of the society, women rights, and womens say in matter of societal issues and consumption decisions. 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. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Chocolate Hawkins should build a strategy that can integrate societal values, infrastructure, and Chocolate Hawkins business model. Yasemin Oraman. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. - Political Governance System Based on the information provided in the Digital Chocolate case study, it seems that the country have a stable political system. Factors that should be consider while launching a new product i.e Political, Economic, Sociological, Technological, Legal and Environmental and the questions we should take under Consideration Some of the economic factors that Chocolate Hawkins 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. Today, we'll study the pestle analysis of UK. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. - 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. - 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. L - Legal. Cultural norms: Chocolate is often associated with indulgence and gift-giving in UK culture, which may impact consumption patterns and marketing strategies. Cost Based Pricing could be a bad strategy under such conditions. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. Amul 9. - 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 PEST analysis of the Hershey Company examines these issues, as well as their relationship with consumers and the use of cutting-edge technology. Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. But its still a business at the end of the day; higher returns are most important for its survival. 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. The Hershey Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization. PESTEL analysis is mainly the assessment of macro environment factors. - 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. 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. 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.