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. 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. 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. Nestle 10. On the other hand, Nestle has a better record of recycling. - Laws regarding Monopoly and Restrictive Trade Practices As a new player Chocolate Hawkins shouldnt be worried about the monopoly and restrictive trade practices law. 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. 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. In-depth industry statistics and market share insights of the Chocolate Market sector for 2020, 2021, and 2022. Hence, Cadbury and its range of products are now owned by the American confectionary giant. 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. Industry Report.pdf - Chocolate Industry in Italy PESTEL Analysis of 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. The Hershey Company PESTEL & Environment Analysis - 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. It factors in temperature, rotations, pressure, and other necessary measurements to make the perfect candy. Developing strategies that can capitalize on Chocolate Gourmet strengths and help mitigate weaknesses and impact of threats of macro-environment. - 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. . 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Taxation: Changes in tax policies, such as changes in VAT or sugar taxes, can affect the prices of chocolate products and consumer demand. This will help in better predicting the environment policy of the country. - Segregation of Political Responsibilities between Different Government Agencies There are numerous government agencies which reduces the risk of overwhelming pressure by one agency. 988 Words4 Pages. Political Factors: " These factors determine the extent to which government and government policies can affect an organisation or a particular industry. The alcoholic beverage segment accounted for the largest share of the market in 2020, with beer being the most consumed alcoholic beverage worldwide. And while Dairy Milk chocolate and Trident Gum sold well, other brands like Halls also saw a rise in their annual sales. Many US companies have incurred losses in Mexico in regular forex crisis in that country. Chocolate in a Bloom 6. 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. Political environment and other factors not only impact the cost of doing business but also long term sustainability. 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. Opening shop in the early 19 th century, 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. (PDF) A CONTEMPORARY APPROACH FOR STRATEGIC MANAGEMENT - ResearchGate operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism . 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. - 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. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Choosing the vision, mission and the reason of existence for Chocolate Hawkins. Chocolate Gourmet should assess what are preferred choice of mobile payments in local economy and chose the business model based on it. It has decimated the culture of savings as people dont have enough to save. - Acceptance of Mobile Payments and Fintech Services One of the areas where US are lacking behind China is Mobile Payments. Government support: Government policies and initiatives to support the growth and development of the food industry can benefit the chocolate industry in the UK. Pestle Analysis Korean Chocolate Industry - Term Paper In addition, there are also concerns in the western world owing to rising cases of obesity, especially among children. 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. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Chocolate Hawkins business model. Chocolate Gourmet can leverage this trend by expanding its product range and targeting new customers. - 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. Case Description of Digital Chocolate Case Study Trip Hawkins founded Digital Chocolate in Silicon Valley in 2003 to develop outstanding games for mobile devices. Hawkins wondered how to guide his company into this new area of social gaming without losing any of the tremendous creative momentum the team had built over the previous years. SWOT Analysis of Mars - Mars incorporated SWOT analysis - Marketing91 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. 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. If they were to save money here, itd be a higher return. - 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. 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. PESTLE analysis | Factsheets | CIPD Discover what PESTLE means, and use our PESTLE analysis template and example to understand the external influences on your organisation. All of this is rudimentary and basic, but playing the blame game doesnt leave a savory taste in consumers mouths. South Africa PESTLE Analysis & Macroeconomic Trends Market Research Report. An even better option is Fair Trade Chocolate. - Integration of Technology into Society & Business Processes Uber failed in China because it tried to enter before smartphone were widespread in China. PESTLE analysis of chocolate industry in JAPAN. - WizEdu 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. - Level of Consumer Activism Regarding Environmental Concerns Chocolate Gourmet needs to know the level of consumer activism regarding environmental concerns is. Its a huge moral and ethical issue because the Ivory Coast is known to enforce child labor. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. The Hersheys Company is the largest chocolate manufacturer in North America and yet theyve hit major setbacks both politically and economically. Technological Factors that Impact Digital Chocolate - Empowerment of Supply Chain Partners Chocolate Hawkins should analyze areas where technology can empower supply chain partners. Chocolate in China: Enter the Sweet Chocolate Market Consumer consciousness regarding the health benefits of eating high-quality chocolate, which remains the key driver of the market. - 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. 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. According to an estimate, Nestle, Dr. Pepper Snapple, Coca-Cola, Pepsi, and Danone recycle approximately 6.6% of the bottles annually. The Chocolate Market research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Dec 31, 2014 by PESTLEanalysis Contributor Cadbury is synonymous with chocolate consumption worldwide. Digital Chocolate case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. Product Positioning 15. 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. Although the African government created an audit system to monitor child labor, its not easy to prosecute offenders offenders like the Hershey Company. INTRODUCTION * Indian chocolates industry is growing at a rapidly18-20% per annum. Despite the popularity of chocolate in the United States, many analysts believed that the market was far from saturated, noting that European per capita consumption of chocolate remained considerably higher than that of American consumers. 4. -Kew raw materials are sourced from local suppliers. - 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. - Attitude towards Leisure Chocolate Hawkins should conduct an ethnographic research to understand both attitude towards leisure activities and choice of leisure activities. Different countries have different attitude towards health and safety so it is better for Chocolate Gourmet to conduct a thorough research before entering the market. These factors are Political, Legal, Economic and Social. Chocolate Industry 5. Mostly the unusual macroeconomic winds and generic challenges caused sales problems. Analyze the Chocolate Hawkins external competitive environment to identify opportunities and threats. A SWOT analysis is a tool used to evaluate the strengths, weaknesses, opportunities, and threats of a business or product. Cadbury is identical with the consumption of chocolate on a universal basis. In each of these locations, the sales were weaker. 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%. Cadbury PESTLE Analysis, as Smooth as It's Chocolate Pestle Analysis Of Confectionery Industry Free Essay Example - PaperAp.com Execution of the strategy and building a feedback loop, using which managers at Chocolate Hawkins can fine tune processes and strategies going forward. For example Trump not standing by US commitments created an environment of uncertainty. PESTLE Analysis of UK | Business Management & Marketing Foreign currency exchange rates were insignificant in the second quarter. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of The Hershey Company. PESTEL analysis of Switzerland - www.howandwhat.net - Foreign Exchange Rate Number of companies have incurred losses in past few years because of forex risk in Venezuela, Brazil, and Argentina. E - Economic. MBA PESTEL : Note on the U.S. Chocolate Market PESTEL / PEST Analysis Chocolate Industry Contents Titles 1. Regulations: Regulations on food safety, labeling, and advertising can impact the manufacturing and marketing of chocolate products. Here's the SWOT analysis of Mars Incorporated which is an American multinational company primarily engaged in production and marketing of confectionery. The company was founded in 1924 and has gained much popularity now. Indeed, retail sales of chocolate in the United States had experienced a steady increase in recent years. For example, Value-added Tax rose by 2.5% in 2010 and increased chocolate prices and reduced sales. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. But while chocolate and other products sold by the company are socially acceptable worldwide, Cadbury has been on the receiving end of controversies, the recent one involving Cadbury products being Halal Certified to cater to Muslim markets around the world. The rest of the billions of bottles end up polluting the ocean and endangering sea life. Cadbury made diverse sorts of chocolates and different items which are sold in a few nations around the globe. - Employment Laws What are the employment laws in the country and are they consistent with the business model of Chocolate Hawkins. South Africa Market Research Reports Industry Analysis and Trends . Strengthening of democratic institution will foster greater transparency and reduce the level of corruption in the country. Food safety and labeling regulations, such as those related to allergen labeling, nutritional information, and ingredient labeling. 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. - Paris Climate Agreement and Commitment of National Government under the Agreement What are the commitments of the country under the Paris Agreement and what is the general level of consensus regarding Paris Climate Agreement in the country. But its still a business at the end of the day; higher returns are most important for its survival. In doing so, the companys machinery learned to adjust itself throughout the day. Psychographics and Demographics 14. The imposition of taxes is yet another political factor that will determine how Cadbury manages its investment and payment to shareholders. Pestle Analysis Of Cadbury - 1585 Words | Internet Public Library - 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. 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. Mars Incorporated. PESTLE Analysis of Soap Industry in India, PESTEL Analysis of Starbucks in Philippines. In fact, Cadbury was able to gain a 30% increase in its annual profits, predominantly from the sales of Dairy Milk and Trident. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. In highly hierarchical societies the power of decision making often reside at the top. U.S. retail chocolate sales were forecast to grow to $14.5 billion in 2007. PESTEL Analysis of Chocolate Confections Corporation Political: Nestle is a global company and in the food and beverage industry one of the most important factors to consider is globalization. Know More It shares its borders with the neighboring countries of Namibia, Botswana and Zimbabwe, and to the east are . Then they scorned the dollar. (PDF) Pestle Analysis Introduction - ResearchGate 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? PESTEL Analysis Of Amul in a Simplified Way - Business Mavericks The revenue in the chocolate market is projected to reach 340243.54 tons in 2022 and the market is expected to register a CAGR of 5.90% in terms of volume. This will enable the Chocolate Hawkins to determine if required can it hire talent globally to work in that particular market. Add if theyre not, then poor sales are obviously their fault right? Employment laws and regulations, such as those related to minimum wage, working hours, and health and safety. The retail distribution of take-home and eat-later confectionery is basically done through two groups of channels, i.e. Pest analysis of chocolate industry Free Essays | Studymode We will make special emphasis on Cadbury UK, as this is where the company originally began. Chocolate Gourmet should have capabilities to navigate under this hyper sensitive environment. It is written by Glenn Carroll, Greg Powell and shed light on critical areas in field of Strategy & Execution, Entrepreneurship, Strategy that the protagonist in the case study is facing. The snapshot of this . It speaks out against child labor and slave labor, while also using sustainable practices for the environment. The PESTLE analysis was conducted in order to find out the opportunity of chocolate confectionery in the UK. In 2002, growth in receipts outpaced volume gains for chocolate candy by 8.7 percentage points over the previous year. They're advanced in telecommunications yet follow a patriarchal family system. Government policies: Taxation, trade policies, and regulations can impact the cost of production and distribution of chocolate products, affecting the profitability of the industry. Market Segmentation 13. Linda A. Hill, Alison Berkley Wagonfeld (2018), "Digital Chocolate Harvard Business Review Case Study. Packaging: There is a growing demand for sustainable and eco-friendly packaging solutions, which has led to the development of new technology for biodegradable or compostable packaging materials. However, the GDP is expected to slow down in both 2020 and 2021 and bounce back in 2022. INDUSTRY ANALYSIS PESTEL Analysis Economic Factors The Philippine economy is progressively increasing according to the World Bank Org. PESTLE analysis of chocolate industry in JAPAN. Expert Solution. SWOT analysis of Amul Chocolates - Marketing91 Chocolate Gourmet can make strategies based on the stable political environment. Our Twitter PESTLE analysis highlights the external factors, like political, economic, social, and technological ones, Cybersecurity is an increasingly important field of work. "Tasting Empire: Chocolate and the European Internalization of Mesoamerican Aesthetics." The American Historical Review 111 (3):pp 660 Odijie, E.M., 2016. But on the flip side it does increases both time and cost of doing business and getting certifications and clearances. Thus significantly impacting the ability of Chocolate Hawkins to build sustainable competitive advantage Trade policies and agreements, such as those related to tariffs and quotas on imported ingredients or finished products. It can enable Chocolate Hawkins to hire skilled workforce at competitive salaries. - 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. Published by HBR Publications. 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. 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. - 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. - Level of Household Income and Savings Rate Increasing consumption and stagnant household income in United States had led to credit binge consumption. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. Along with this, there are a few Environmental and Technological factors that contribute and influence the macro environment. Due to favourable political factors, Amul company achieved a growth of 11.35% in its operating units in Kolkata, Pune and Mumbai. Research Methodology 4. According to Jose Lopez, Nestle's Vice . 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? Lindt & Sprngli SWOT & PESTLE Analysis | SWOT & PESTLE This will help in better predicting the environment policy of the country. 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. - Transparency & Digital Drive Chocolate Hawkins can use digitalization of various processes to overcome corruption in the local economy. For example Uber employment system is not consistent with French laws and it is facing challenges in the country. -Recycled, recyclable and biodegradable packaging. Then with the blame game where everything was the culprit for poor sales in 2015. 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 Brazilian chocolate market is projected to witness a CAGR of 4.12% during the forecast period 2022-2027. 2. Chocolate Gourmet can leverage such a situation to hire the best people in business. The PESTLE analysis is a concept first mentioned by Harvard Business School professor Francis J. Aguilar. E - Environmental. All Rights Reserved, Political factors: The politics and policies of chocolate, Economic factors: All problems, all the time, Social factors: A dedication to social responsibility and favor, then poor sales are obviously their fault, adopting new technology to create better treats, add this A.I technology to every one of their lines, the consumer pushback against their usage of the Ivory Coast (and potentially child labor), Twitter PESTLE Analysis: 6 Notable Factors Affecting the Social Network, How to Pursue a Career in Cybersecurity: 7 Professional Tips to Follow, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor. In 2008, the Schweppes brand was sold to the Dr Pepper Group, and in 2010, Cadbury was acquired by Kraft foods in the US. At EMBA PRO, If youve ever enjoyed the classic Hersheys, Kit Kat, or Reeses Peanut Butter Cups, then youve been a consumer of the Hersheys Company. Switzerland is one of the largest economies in the world. There are four major factors identified to capsulate the different factors found from the different environmental influences. Labor costs: The cost of labor, including wages, benefits, and training, can impact the profitability of chocolate manufacturers. GDP of Afghanistan in 2019 was 19,101 billion $. Lindt PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors.