Question #1
A few of the macro-environmental factors that affect the Gourmet chocolate industry are the sociocultural segment, the demographic segment and political/legal segment.

In recent years people have become more health conscious. The chocolate/candy industry has responded to this sociocultural change by introducing new products to reach these health conscious consumers. There has been an increase in the production of no-sugar-added and sugar-free chocolates and candies. In addition, dark chocolate has many health benefits. The industry is using these health benefits to increase their reach to those health conscious consumers. Chocolate/candy companies have even begun fortifying their candies with vitamins and skin enhancing ingredients.

The chocolate/candy industry is also trying to take advantage of the demographic changes in the environment. Currently, Asians are the largest consumers of gourmet/premium chocolates. Following the Asians market younger adults that are not married, who are college graduates and who do not own a home represent the next largest consumers of gourmet/premium chocolates. There does not seem to be a correlation between affluence and the sales of gourmet/premium chocolates. Therefore, the chocolate/candy can focus their advertising and marketing away from the affluent market and towards younger educated individuals.

Finally, the chocolate/candy industry is highly regulated by the political/legal segment. . These regulations were enacted to ensure the safety of the products, that franchises disclose the necessary information, and, safety concerns for consumers and workers are managed properly. Complying which these regulations can be costly to the chocolate/candy industry

Question #2 - Five Forces Analysis
Barging Power
Because RMCF’s buyers are not large retailers such as the ones that Hershey may sell to