Cocoa Production & Industry Analysis

This assignment delves into cocoa production across different countries, highlighting Mexico's position and advancements in production techniques. It specifically examines Nigeria's high-value crops and their contribution to foreign exchange earnings. Furthermore, it analyzes the global cocoa industry using Porter's Five Forces framework, evaluating factors such as supplier power, buyer power, threat of substitutes, and rivalry among existing players.

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................1
1 cocoa production situations inclusive of a PESTEL in the various countries..........................1
2 Mondelez Potters five force.....................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The case study will help to understand about overall cocoa production in the various
nation. Further, the PESTLE and Potter five force cover the confectionery industry and
Mondelez performance affect due to various factors.
1 cocoa production situations inclusive of a PESTEL in the various countries.
Côte d'Ivoire: The government of the ivory coast or the cote d'ivoire is able to give huge positive
impact to the business with these Mondelez is able to bring effective production of chocolate.
They are leading world in production and export of the cocoa beans utilised in manufacture of
chocolate as of exporting 33% of cocoa production. But due to financial crisis in the nation given
negative impact on the business which makes a huge loss and people are not able to make high
income for the cocoa productions as well firms are not meet effective profits(van der Voet, J.,
Kuipers and Groeneveld, 2015). The process of production with the help of advance technology
and legislation support will help to protect the natural resource may affect the firms' cocoa
productions
Indonesian: The political assistance to Mondelez in the Indonesian will help to grow high
production. They are also leading producer of the cocoa production and the farmer income have
been also increase due to high range of society support and the various process of production
makes a positive impact on the economy of the nation. The increasing in the crime rate but due
to high income of the farmer will help to make better living standards for that they need to give
various equipments for the high rate of cocoa production
Dominican Republic: They are the largest producer and the government have high involvement
in these business by sing an agreement for strong the substantivally of the industry which will
help to give 40000 farmer than well employment to the various people and Mondelez cocoa
production is getting better help to focus on the sustainable cocoa production in the Dominican
republic which have focus on the organic farming. The better rules and regulation and climatic
condition give positive impact on the production.
Peru: Political support Mondelez to the business in the Peru give costive impact to the
government support from the Economic: Peru economic condition is better for the business in
which the Peru is thirteen largest exporter coca products. In the year 2001 to 2007 export from
Peruvian cacao growing valleys rose 424% from 805 to 44.6 million dollar. Social: The small
holder who are growing these get better prices. There are 236 grower ins San martin who are the
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part of cocoa production. Technological, The process of production with the help high
technology will give effective quality of cocoa production in the Peru. Environment: Peru is the
world nation with the huge biological diversity and the fourth as compared diversity of plant
species. This will help to bring the effective quality of the Peruvian chocolate. Legal: The
legislation from the government to save the natural resource of Peru may affect the Cocoa
production.
Mexico: The government give the better assistance to the Mondelez to grow their business of
Cocoa productions. The economic situation of the nation is not effective for the business which
will consist less production of Cocoa. Mexico is the eleventh place in the world production. The
advance process due to better equipment will give quality productions. The nation has optimal
climate situation to become of the leading produces of cocoa in the world. The foundation seeks
to enhance the quality with the help of sustainable agriculture practices. The improvement in the
farmer living situation as well increase standard of life.
Brazil: The government of the Brazil set up an effective business polices which will help to
Mondelez for high production of coca. But they in that region they are able to give only 5% of
total production. The economic situation in which the firm is not able to make high return. The
legal aspect is not better in the Brazil which consist the crime rate and smuggling of the raw
material used for the production of cocoa have been increased its cost(Swayne, Duncan, and
Ginter, 2012).
Cameroon: The government not able to give huge support to the business which brings the poor
condition of Mondelez in the nation. 240 thousand ton of cocoa had produce in the year 2016
and 2017. The farmer are abandon for cocoa plantation which makes and negative impact of
overall production of cocoa and the firm will not able to get high resource for quality products.
The extreme weather threaten to the nation to increase the income of the farmer. The legal
support given positive impact and technology oriented production is major strength.
Ghana: They produce 5% of total production in the world which assist for Mondelez and the
government provide high support and they are first exported at then end of the 19th century and
between 1911 to 1976 they are world leading producer contributing 30 to 40% of the overall
production. There total 1.6 million people are involver in growing cocoa which will help to bring
an effective process of production and rules and regulation for the organisation to use the natural
resource in better way.
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Nigeria: The better assistance from the government in term of taxation benefit gives the
Mondelez for rapid production of Cocoa in the Nigeria. It the fourth largest producer of cocoa in
the world. The crops are the high value which bring foreign exchange earning for the nation.
0.3% of agriculture GDP is contributing only with the help of Cocoa production which shows
high business opportunity for the organisations. But due to increasing crime rate give negative
impact.
2 Mondelez Potters five force.
Mondelez international is the top most leading brand in the confectionery industry. They
produce the various products with the help of cocoa. The mainly chocolates related goods which
are the focus of the firms to gain the competitive advantage. Burt there are certain force which
will help to understand their situation of the industry and organisation such as follows:
 Threat of New entrants: The new entries in the confectionery industries will help to give
new ideas and various products. These will lead to make a positive impact on the
Mondelez is providing high quality of products to the customer which will not affect the
new entries for long terms basis(Stanleigh, 2013). The cost of various goods and services
need to decrease at these situations and so the customer will not shift towards the new
firm. The firm required to redesign the products to attract more customer and increase the
revenue of the organisations.
 Bargaining Power of Suppliers : These can be the most important aspect in the industry
as the bargaining power of the supplier is not so high in the industry due to high producer
of the various cocoa production and export from other market will give Mondelez
positive impact and chance of higher growth leads to negotiated with the suppler. The
firm had already set up their business in various nation which help to bring a huge
supplier for the firm.
 Bargaining Power of Buyers :It is high in the business and the client required the
successful not offering any steadfastness conspires so that there can be no extra
impetuses for return. So clients can without much of a stretch pick inside sweet shop
from which they can get higher accessible things, simple access and different offers. In
this situation, isn't doing as such well to draw in more purchasers.
 Threat from Substitute Products: In this industry chance of substitute products is high but
it required to make a new and invented products to attract customer towards the firm. The
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Mondelez is being service oriented firm as compared to the products oriented. It is
important for the firm need to increasing the switch cost for the customer to reduce the
impact of threat from substitute products.
 Rivalry among the existing players. Contention among the current players. In this
segment there is extraordinary contention with identified with cost. A significant number
of the brands offer comparable costs of their adversaries to be in rivalry(Peters, 2012).
This leads them to do different promoting efforts with the goal that they can get more
pieces of the overall industry. Mondelez centres to keep up its low costs on items because
of which it is a hazard for it in light of the fact that different contenders are likewise
attempting best to come at association value point.
CONCLUSION
From the report case on the cocoa production at various nation can be concluded easily
that Mexico is the eleventh place in the world production. The advance process due to better
equipment will give quality productions. Nigeria crops are the high value which bring foreign
exchange earning for the nation. 0.3% of agriculture GDP is contributing only with the help of
Cocoa production which shows high business opportunity for the organizations. The potters five
force bargaining power of the supplier is not so high in the industry.
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REFERENCES
Books and Journals
Peters, L., 2012. The rhythm of leading change: Living with paradox. Journal of Management
Inquiry, 21(4), pp.405-411.
Stanleigh, M., 2013. Leading change. The Journal for Quality and Participation, 36(2), p.39.
Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012. Strategic management of health care
organizations. John Wiley & Sons.
van der Voet, J., Kuipers, B. and Groeneveld, S., 2015. Held back and pushed forward: leading
change in a complex public sector environment. Journal of Organizational Change
Management, 28(2), pp.290-300.
Wellman, J., Jeffries, H. and Hagan, P., 2016. Leading the lean healthcare journey: driving
culture change to increase value. CRC Press.
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