Analysis of the UK Chocolate Industry: A Marketing Perspective

This report offers a comprehensive analysis of the UK chocolate industry, employing both PESTLE and CAGE frameworks to evaluate its market dynamics. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors influencing the industry, highlighting issues such as labor regulations, economic stability, consumer behavior, technological innovation, and trade laws. The CAGE framework compares the UK with Belgium, assessing cultural, administrative, geographic, and economic distances to understand the challenges and opportunities for chocolate companies. The report concludes that the UK's political stability is an advantage, while technological advancements and market differences present challenges. It references multiple sources to support its findings, providing a detailed overview of the industry's current state and future prospects.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Table of Contents
PESTLE Analysis of UK Chocolate Industry............................................................................2
CAGE Framework of UK Chocolate Industry...........................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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PESTLE Analysis of UK Chocolate Industry
The PESTEL analysis is being done on the entire chocolate industry of United
Kingdom wherein the different issues have been taken into consideration for analysing them
and reducing the same in an effective manner as well.
Political Factors- Firstly, the change in the governing party helps in forming labour
to different conservatives in coalition which may affect the entire chocolate industry in
positive or negative manner in the UK market. There are high end restrictions on the entry of
the skilled workforce from external Europe and there is imposition of taxes as well which
will be affecting the overall market of UK and this can affect the chocolate firms in a
negative manner as well (Beugelsdijk et al. 2018).
Economic Factors- Due to the lowest rate of interest, the economy is very low and
the entire UK economy is dependent on the internationalized economy which can be difficult
for the chocolate market to survive in such kind of environment. Due to the recession in the
year 2009, this was being seen and noticed that the chocolate market can face a huge negative
downturn (Song, Sun and Jin 2017).
Social Factors- The UK is one of the big consumer markets wherein the chocolate
companies have the opportunity to meet the demands of the older population. However, on
the other hand, this has been noticed that the education is not as per the mark and this can
create lack of highly educated individuals who can create different issues for the
organization.
Technological Factors- There is huge internet access and there is different innovation
in the entire UK market which will be beneficial for the success of the chocolate industry to
be stable. There are less costs included in the research and development which will be prove

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to be productive in nature for the entire establishment of the chocolate industry in UK (Song,
Sun and Jin 2017).
Legal Factors- There are different kinds of trade laws in the UK market which can
create negative impact on the UK market. Due to the legal regulations, this can be negative
for the company to cope up with strict rules and regulations and this can be creating negative
impact on the chocolate industry as well. (Song, Sun and Jin 2017).
Environmental Factors- The irrigation schemes and the impoundment of water are
the two major issues which are being faced by UK market and this will be one of the major
reasons which can prove to be negative for the company.
CAGE Framework of UK Chocolate Industry
Cultural Distance
 Both UK and Belgium have similar
kind of language English
 However, there is huge cultural
differences between the two. In
UK, this can be seen that most of
the people are British, on the
contrary, in Belgium, there are
Christians as well (Song, Sun and
Jin 2017)
Political and Administrative Distance
 The political stability of UK is
stable in nature in comparison to
Brussel, on the other hand the
government of Belgium is
politically instable in nature
(Hasan, Ibrahim and Uddin 2018)
Geographic Distance
 Size of UK is larger than Belgium
Economic Distance
 The economy of UK is higher in

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 Secondly, the climate of UK is
moderate and this varies in
Belgium
nature than Belgium and the
economy of Belgium is low in
nature
 Belgium has the largest kind of
economy, on the other hand, UK has
the second largest economy
(Nicholls et al. 2018)
Conclusion
Therefore, this can be concluded from the PESTEL and CAGE Framework is that UK
is one of the most politically stabled economy which can prove to be advantageous for the
chocolate industry. However, on the other hand, there is no such technologically
advancement which can impact the chocolate companies. On the other hand, the CAGE
framework helped in analysing the differences between the two countries which is seen that
UK is stable economy and this will be beneficial for the success of the UK economy.

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References
Beugelsdijk, S., Kostova, T., Kunst, V.E., Spadafora, E. and van Essen, M., 2018. Cultural
distance and firm internationalization: A meta-analytical review and theoretical
implications. Journal of Management, 44(1), pp.89-130.
Hasan, M., Ibrahim, Y. and Uddin, M.M., 2015. Institutional distance on cross-border
mergers and acquisition performance: a hypothetical framework. In Proceedings of the Asia
Pacific conference on business and social sciences, Kuala Lumpur.
Nicholls, D., Shankland, K., Spillman, M. and Elleman, C., 2018. Rietveld-Based
Quantitative Phase Analysis of Sugars in Confectionery. Food Analytical Methods, pp.1-9.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-
energy incineration industry in China. Renewable and Sustainable Energy Reviews, 80,
pp.276-289.