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Cherry Lady Case Study

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1. Name two macro environmental forces affecting the chocolate industry in the early 2000's to 2012 and explain how they are impacting the industry. State which of the five types of forces your answer falls under. See Figure 2.7 in the textbook.

Two macro environmental forces affecting the chocolate industry in the early 2000’s to 2012 are economic and social.

The social force falls under the social category. Social forces impact the chocolate industry tremendously. In the U.S. more than 80% of all candy is bought on impulse, but 57% of American women and 46% of men stated that chocolate was their favorite snack/dessert. Even though there are recent trends that suggest that consumers decrease their dietary consumption in chocolate, over 70% of consumer still indulged in some form of chocolate at least once a month and 33% said once a week. (Hill, 2015, pp. C-16, C17) People that are eating healthier this is the trend are eating more premium chocolate because it contains dark and organic chocolate as well as special ingredients like spices, berries, nuts and fruits, which is a healthier alternative. OK

The economic factors affecting the chocolate industry fall under the economic forces category. The chocolate industry is experiencing a recent spike in the cost of raw materials, packaging, distribution and energy. Production is more expensive for premium chocolates but people are also willing to pay the extra money for the quality. With the price of cocoa spiking, more mass-market producers have also added a premium chocolate product to their current lines and acquired some the smaller premium chocolate manufacturers which will help gain some market and shelf space. . (Hill, 2015, pp. C-18) Good

2. There are two major segments of the chocolate industry, the mass market and the premium chocolates. Use Porter's Five Force model

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