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Essays on Big Chocolate - PESTEL for Cocoa Production in Cote d'Ivoire, Indonesian, Dominican Republic, Peru, Mexico, Brazil, Cameroon, Ghana, and Nigeria Case Study

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The paper “ Big Chocolate -  PESTEL for Cocoa Production in Cô te d'Ivoire, Indonesian, Dominican Republic, Peru, Mexico, Brazil, Cameroon, Ghana, and Nigeria”   is a spectacular version of a case study on the marketing. Verdin 2016). In 2016, the country’ s production capacity stood at 1.57 million tons down from the previous year’ s 1.75 million tons (Verdin 2016). However, cocoa is produced under harsh conditions and involved the use of child labor some of whom are trafficked from neighboring countries. Indonesia is ranked third in terms of cocoa production with a production capacity of about 350,000 tons annually.

However, cocoa production has been declining in the country. Most cocoa plantations are grown in small plantations. Dominican Republic is known for the production of high-grade, ethically grown organic cocoa with cocoa being a major export earner contributing significantly to the country’ s GDP. The country’ s annual production capacity currently stands at 70,000, though this is a decline from the previous years (UNDP 2015). PESTLE Analysis   Cô te d'Ivoire Indonesia Dominican Republic Political Political stability and issue as the country is politically volatile and prone to civil war and corruption index remains high The country has introduced reforms that aim to liberalize the cocoa industry High tax on cocoa (34%) is a big issue Modern democracy and enjoys political stability. Corruption remains an issue as it increases the cost of doing business Growing democratic space with political stability High corruption increases the cost of doing business Economic Low-income country with high unemployment rate Middle-income economy and is among the fastest emerging economies in Southeast Asia GDP per capita of $11,126 and growth rate of 4.8% (2016) High unemployment and poverty remains an issue The second-largest economy in Central America and the Caribbean and falls among the upper-middle-income economies with a GDP per capita of $14,984. High unemployment and poverty an issue Social Poverty, diseases, such as malaria and HIV/Aids remains high Country records high population growth due to high fertility and low life expectancy The majority are young people High illiteracy rates Young population Average life expectancy High rural to urban migration Growing literacy Low population with slightly over 10.8 million people but population growth rate remains high The majority are young people High rural to urban migration Technological Low investment in technology, R& D Country records rapid growth in internet connectivity The country has increased investment in science and technology and R& D Country has increased investment on science and technology High growth of internet connectivity Legal High taxation of 34% for cocoa export Favorable taxation laws Government has enacted laws prohibiting the use of child labor High taxation The country has enacted laws prohibiting child labor Environmental Government has created regulations to protect soil natural resources, such as forests No tough laws on the environment but there is growing pressure from civil society on environmental issues The depletion of soil and the destruction of rain forests for cocoa farming has created protests from pressure groups. 1.2 An analysis and summary of the Peru and Mexico cocoa production situations inclusive of a PESTEL Peru is the 13th largest cocoa producing country with approximately 145,000 hectors of cocoa plantations (Held 2015).

Like in most countries, most cocoa in Peru is grown by small scale farmers. In 2014, the country produced about 70,000 tons of cocoa and the government is strong involved in cocoa farming by providing farmers with support in the form of education and subsidies. Mexico also produces a significant amount of cocoa with an annual production of about 23,878 tons in 2007, which is a significant decline compared to 2005’ s 50,000 tons (Cocoa-Mexico 2016).

A decline in cocoa in Mexico has been linked to a perennial outbreak of frosty pod rot diseases coupled with the aging trees. PESTLE Analysis   Peru Mexico Political Modern democracy and enjoys political stability though the situation becomes volatile during presidential elections High corruption index affect businesses   The country has a democratic government and enjoys political stability Conflict with the U. S. over illegal immigrants affect businesses Drug trafficking is widespread and creates relative instability in the country Corruption is relatively low in government which lowers the cost of doing business. Economic Free economy and ranks among the safest investment decision Recording faster economic growth of 6.4% and per capita GDP of $10,900 The high unemployment rate of 7.7% and 31.3% poverty prevalence a concern A middle-income economy with a per capita of GDP of 18,500 and GDP growth of 2.2 (2015) An open economy with high FDI flow High unemployment affects the country Social Factors The young population of about 30 million people High rural to urban migration A society dominated by Roman Catholics Spanish-speaking country Up to 76% of the population lives in urban areas. Faster aging population Technological Increased investment in science and technology Country records growing internet access High technology development with the majority having access to internet services that have transformed the way Mexicans interact and do business Legal Factors Corruption at the judiciary and police affects investor confidence Relatively transparent legal system High taxes on cocoa exports Environmental Government has enacted laws and regulations to protect soil, water, and rainforest from degradation The Mexican government has enacted laws to protect the environment, such as forests and soil. 1.3 An analysis and summary of the Brazil and Cameroon cocoa production situations inclusive of a PESTEL Brazil is the largest cocoa producer in Latin America with a production capacity of 256,186 tons in 2016 (Pekit 2014).

However, this marks a significant decline from the previous years. Cocoa production is projected to dip further in 2018. Cameroon also remains one of Africa’ s largest cocoa producers with a production level of 275,000 tons in 2013 (The World Bank 2017). s However, cocoa farming in Cameroon is being affected by poor management of cocoa farms. PESTLE Analysis   Brazil Cameroon Political Enjoys political stability despite the recent removal of the president from office High corruption perception index Dictatorship is the high current president has stayed in power for more than 3 decades Corruption perception index is high Economic Among the fasted emerging economies with per capita GDP of $15,615 Growing middle-income consumers Unemployment and inflation are high at 7.2% and 9% respectively Low-income economy and among the poorest in the world with per capita GDP of $1,328.64 Economy recording positive growth of 5.6% in 2016 High unemployment and poverty in the country Social Factors Increasing middle-income population Among the world’ s most populous countries with over 201.5 million people High life expectancy and high illiteracy at 20% The population of 23.3 million comprising mainly of the youths High birth rate and child mortality rates HIV prevalence high  Technological High investment in science and technology High internet access and connectivity The country has increased investment in science and technology. Legal Factors Corruption with the judicial system Adopt a binaural system operating on both French Civil Law and English Common. Environmental Has enacted laws aimed at protecting the natural habitat from pollution and degradation. The country promotes sustainability by enacting laws requiring conservation of the environment 1.4 An analysis and summary of the Ghana and Nigeria cocoa production situations inclusive of a PESTEL Nigeria is among the world’ s largest cocoa producers with a production capacity of 367,000 tons, according to 2013 statistics (GBN 2015).

However, the product has been declining in recent years and currently stands at only 250,000 with only about 650 hectares used as cocoa plantations. Child labor is prevalent in Nigeria’ s cocoa farming. Ghana is the second-largest producer of cocoa in the world. Like most cocoa-producing countries, cocoa production in Ghana has been declining. Currently, cocoa accounts for about 17% of Ghana’ s GDP (Buhari 2016). PESTLE Analysis   Nigeria Ghana Political Modern democracy with political stability though Boko Haram remains a threat to the stability One of the most corrupt countries in the world Regarded as the most democratic country in Africa Corruption perception low Economic Emerging economy and is the largest economy in Africa growth spurred mainly by oil exports A low-income economy with per capita GDP of $4,266 High unemployment and poverty an issue Social Factors Africa’ s most populous country with more than 179 million people Growing middle-class population High literacy rates Young population The population of about 27 million people, the majority are youths The high population growth rate Technological High technology and Internet penetration Increased investment in science and technology, which remains low Legal Factors Corruption in the legal system Low wage country with minimum wage rates standing at $59 monthly Adopts customary and English common law Environmental Government and pressure groups pushing for tougher laws on environmental degradation and pollution Environmental pollution and degradation a big issue 2.0 A synopsis of the Mondelez International, its holdings current market position, and Five Forces Analysis 2.1 Company Overview Mondelez International is an American multinational confectionery, beverage, and snack firm (Statista.

2017). The Illinois-based company was founded in 2005 but now operates on an international scale, including Africa, Latin America, North America, Middle East, Europe, and Asia, where it operates in different market segments, including biscuits, chocolate, beverages, gum, and candy.

In the chocolate industry, Mondelez currently controls about13.6% of the total market share (Statista 2016).

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