PESTLE Analysis of Cocoa Production in Côte d'Ivoire, Indonesia, and Dominican Republic

Running head: BUSINESS AND STRATEGIC MANAGEMENT
Business and Strategic Management
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1BUSINESS AND STRATEGIC MANAGEMENT
Part 1
Chocolate industry is currently one of the leading industries in the world. Recent report
from an extensive research shows that chocolate industry makes an annual retail sale of 98.2
Billon USD. Chocolate industry is an ever growing industry that has barely witnessed any
significant downfall in the last ten years. The major producer of cocoa bean, the very primary
ingredient of chocolate are Ghana, Indonesia, Niger (Koné et al., 2017)ia, Cameroon and many
more. Though the demand in chocolate and cocoa products has never seen any deflation, yet the
lack of production has resulted in shortage of processed chocolate in the global context.
A PESTLE analysis of Côte d'Ivoire, Indonesian and Dominican Republic would help to
analyze the actual situations responsible for making a considerable impact on chocolate
production (Phillips 2016).
PESTLE of Côte d’Ivoire:
The farmers of Côte d’Ivoire are in a pitiable condition, though it is one of the leading
cocoa producers in the world market. Study shows that farmers are emotionally connected with
the plantation of cocoa, though most of the conditions are unfavorable. Government help is
seldom received, and the wholesalers that barely meet the daily need of the farmers pay much
low price. However, it is only in the recent past that government interference has taken place and
the pieces Hs been revised. In 2013, the country has witnessed a increase of 10% on an average.
Political factors: Côte d’Ivoire and its political structure favors the production of cocoa beans,
since the change or the shift in government structure hardly makes any impact on the cocoa
production. Cocoa is the major cash crop that is produced in Côte d’Ivoire, which makes the
country a leading exporter of chocolate.

2BUSINESS AND STRATEGIC MANAGEMENT
Economic factors: In the global context, Côte d’Ivoire contributes a thirty percent of the total
cocoa produced in the world. The economic factors thus without any iota of doubt is favorable at
least to this sector. However, Côte d’Ivoire otherwise have economic issues since it is a third
world country, or can be said a developing country. Cocoa production brings the major economic
balance to the nation.
Social factors: Cocoa production, to the farmers of Côte d’Ivoire has become more of a
hereditary occupation where the farmers cultivate cocoa for the purpose of holding on to the
family tradition.
Technological factors: Technological factors are at a large responsible for the surplus amount of
crops that the country produces each year. The government helps the farmers with the use of
latest technology and enriched cocoa beans.
Legal factors: The cocoa cultivating rules and policies in Côte d’Ivoire is favorable for cocoa
production. Taking into account that chocolate production is the primary occupation of the
people of Côte d’Ivoire, the legal issues are taken care of by the government.
Environmental factors: There are a number of environmental factors that impacts the
production of cocoa products in Côte d’Ivoire. For instance, while good climatic conditions put a
positive impact on the cocoa production, negative climatic factors like constant rainfall or
absolute lack of rainfall harms the production to a huge extent.
PESTLE analysis of Indonesia