Essays on Cocoa Production in African and South American ountries Case Study

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The paper “ Cocoa Production in African and South American Сountries”   is an engrossing variant of a case study on the marketing. According to World Atlas (2016), Cô te d'Ivoire supplies 30% of the total cocoa in the world and supplies cocoa to renowned companies like Cadbury and Nestle. Furthermore, Cocoa contributes almost two-thirds of the country’ s trade revenue. However, the country has been associated with issues such as child labor and physical abuse in the farms producing large amounts of cocoa in the country. In addition to harsh working conditions, most children in the country lack access to education.

Indonesia started growing cocoa in the early 1980s and is currently considered as the third leading cocoa beans producer in the world. Recently, the country’ s cocoa industry has been damaged by pod borer insects. The Dominican Republic is considered as the world’ s hub for the ethical production of cocoa since the government has been working tirelessly to make sure that the production of cocoa happens in an environmentally sustainable way. The Dominican Republic is the world’ s leader in ‘ Fair-trade-certified’ cocoa production (World Atlas, 2016).

Fair-trade products are ones that the global trade organizations have vetted to make sure that farmers are compensated sufficiently for their crops. PESTLE Analysis   Cô te d'Ivoire Indonesia Dominican Republic Political Factors Rapid reforms have been made in terms of economic policy and political stability. The country’ s political system is democratic and is guided by rules and regulations developed in line with the Roman-Dutch law. The Dominican Republic has a democratic political system, divided into judicial, executive, and legislative branches. Economic Factors Ivory Coast’ s GDP expansion as of 2016 was 8.7 percent; there is potential for further growth owing to the country’ s increasingly diversified and stable base. As a developing country, the Indonesian government has taken numerous steps to improve the country’ s GDP growth. The country is considered as an upper-middle-income developing country, and GDP growth depends primarily on government services and natural resources. Social Factors Ivory Coast has an impressive cultural diversity.

The country’ s agricultural and urban workers, fishermen, herders and traders, chiefdoms and villages make an enormous contribution to the national mosaic. Most Indonesians live in urban areas and have a good average life. The country’ s literacy rate stands impressively at 90.4%. Most of the Indonesians are Muslim, and the other few are Hindus, catholic, and Protestants Most of the Dominicans are Roman Catholic, and their culture is a mixture of African slaves, Spaniard colonists, as well as Taí no natives. Technological Factors The country’ s ICT sector has experienced enormous growth, and it received 3G certification in 2012.

Ivory Coast has created new incubators as well as technologies like the Orange Techno Centre. Indonesia has developed a state-of-the-art communication system, and many Indonesians are connected to the Internet as evidenced by the high number of smartphone users. The country’ s telecommunications infrastructure is well-developed and has a landline and mobile phone services.

Most parts of the country have Cable Internet and 3G wireless internet service Legal Factors Ivory Coast’ s Trade is facilitated enormously by numerous international and regional trade agreements such as the Free Trade Agreement (FTA), Economic Community of West Africa (UEMOA), and Common External Tariff (CET). The investment code was replaced by a new code that offers tax exemptions and reductions to investors. Indonesia has implemented new regulations to ensure that all employees get the right income share. People are required by law to work for 7 hours, and the income tax is implemented on the individuals as well as on the companies. The legal system of Dominican Legal System is largely derived from statutes or laws recognized as a Napoleonic code. Environmental Factors The country has more than 15 international agreements on issues such as tropical timber, hazardous wastes, climate change, among others. The country has implemented a number of laws to curb deforestation, reduce soil erosion and forest fire. The country has established basic requirements and principles for the environmental protection of natural resources.   1.2 Peru and Mexico Cocoa growing capacity in Peru is limited by ferocious competition for agricultural land.

Only, 48,000 hectares of land is used to produce cocoa, which translates to cocoa beans output of 71,175 tonnes. On the other hand, cocoa production is Mexico is facilitated mainly by chocolate giants such as Ferrero and Hershey. Still, the country’ s cocoa production has since the early 2000s declined by nearly half. The decline in Mexico’ s cocoa production is attributed to Frosty pod rot, but new hybrid plants are providing hope since they are somewhat resistant to the disease. PESTLE Analysis   Peru Mexico Political Factors After President Alberto Fujimori was impeached, Peru has experienced enormous political change such as reduction of corruption and bribery.   The Mexican local governments often offer incentives with the aim of attracting business to the area.

The drug trafficking menace and political factors have resulted in widespread poverty. Economic Factors Recently Peru has been recognized for its safe investment environment and ease of business with low political risk. The country GDP growth depends on the industry, agriculture, trade, and services. The country is considered as an upper-middle-income country (Somvanshi, 2016). Social Factors Aside from being a democratic republic, Peru is divided into twenty-five regions.

Economic growth has led to a reduction of the poverty level in the country. Mexico is mainly a Spanish-speaking country, and almost 76 percent of the people are living in urban areas. Technological Factors ICT infrastructure and telecom capacity in Peru are advancing rapidly. Most people in the country have access to the internet because of the high number of service providers. The use of the Internet has changed the buying patterns and lifestyle of many Mexican consumers. Legal Factors The country’ s inefficient and corrupt judiciary poses an obstruction to investors since commercial disputes are mostly compromised (Monteblanco, 2014). The majority of Mexican laws have led to higher prices for customers. Environmental Factors The government has formulated environmental regulations to secure water supply and protect forest coverage. Mexico is experiencing natural resource and environmental issues attributed to rapid industrialization, population growth, and urbanization. 1.3 Brazil and Cameroon Cocoa production in Brazil has consistently dipped, and the country remains America’ s largest cocoa producer.

For many years, Cameroon has been one of the largest cocoa producers in the world, but the cocoa business has recently been under threat.

The decline in cocoa production in Cameroon has been attributed to poor cocoa crop management (World Atlas, 2016). PESTLE Analysis   Brazil Cameroon Political Factors Proactive and stable government Corruption is high in all government departments Economic Factors High potential for economic growth The GDP growth is projected to average 4.8% between 2014 and 2018. Social Factors There is a progressive increase in middle-class citizens The country is rich in cultural diversity and its native music styles  Technological Factors High internet usage amongst the people Technology advancement has led to enhancement of the country’ s ICT infrastructure. Legal Factors Extremely high bureaucratic country The country is considered a binaural system having French Civil Law and English Common. Environmental Factors Environmental agencies are tasked with overseeing compliance with environmental legislation through public class actions, civil investigation, as well as criminal lawsuits (Garcia & Feldmann, 2016). Several legislations associated with sustainable development and the environment have been implemented. 1.4 Ghana and Nigeria In Nigeria, the increasing global demand, prices, as well as the accessibility of cutting-edge agricultural technology have led to enormous growth in the country’ s cocoa industry.

In most Nigerian cocoa farm, gender equality is a major issue.

In Ghana, cocoa production accounts for nearly 17% of country’ s GDP. PESTLE Analysis   Nigeria Ghana Political Factors Uninterrupted civilian government but with a high level of corruption. A democratic system of governance. Economic Factors Mono-economy with a large reliance on oil revenue Export activities are largely attributed to cocoa and Gold Social Factors The country is diversified in term of religion and ethnicity The high population growth rate Technological Factors Most Nigerians are computer savvy, and there is a high penetration of the Internet. Underdeveloped technological infrastructure Legal Factors There is minimum wage of $59 dollars a month A mixed system of customary law and English common law Environmental Factors High levels of air and pollution (Oluwole, 2016) Natural resources are overused 2.0 Hershey  - Exposure Analysis 2.1 Company Overview With its headquarters in Hershey, Pennsylvania, the Hershey Company is a global company renowned for bringing goodness through great-tasting snacks such as chocolate, mints, and sweets.

The company has nearly 18,000 workers and over 80 brands across the globe. Some of its brands include Ice Breakers, Jolly Rancher, as well as Hershey's Kisses. The company focuses on expanding its operations to key international markets and retaining its North America’ s competitive advantage. The company has numerous plants like in Ashland, whereby Hershey’ s Premium cocoa powders and brand chocolates are manufactured.

Other plants in the United States are located in Hazleton, Stuarts Draft, Robinson, Memphis, and Lancaster. The company has subsidiaries in Brazil, Greater China, Canada, India, Japan, Mexico, Korea, Malaysia, Singapore, Philippines, and the United Aran Emirates. In terms of market position, Hershey's has for many years remained the leading chocolate company in the U. S. with approximately 44.1% market share as of 2016. At the international market, the company was ranked 6th in 2014 lagging behind Mars, Mondelez International, Ferrero, as well as Nestle.

The company’ s poor ranking at the international market is attributed to its overreliance on the North American market (Key, 2015).  

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