Question

Topic: The Chocolate Industry in Switzserland

A) Identify a key strategic industry in the country you have analyzed previously. This industry should be an important contributor to domestic sales, employment and exports or foreign sales of the country. Provide this data in your introduction to indicate the industry’s strategic importance.

B) Are there any negative consequences resulting from the way your industry conducts its business? These might include questionable labor practices, environmental pollution, corruption in business government relations or relations with external suppliers or buyers? How are these negative consequences being addressed within your industry, or by the government of your country or by internal grass roots action or multilateral institutions (e.g. WTO, IMF, WHO)..

This is for my GLOBALIZATION class.

thanks for the help!! :)

Answer 1

Around the world, health-conscious consumers are cutting back on sugary products. Steep rises in the price of cocoa beans in recent years and competition among high street retailers have eroded profit margins, while sputtering economic growth in the biggest markets has dented sales. Affluent consumers are also turning to small, local “craft” makers of handmade — not robot-made — chocolate. The dilemma faced by Swiss chocolate-makers is playing out across the food sector as tastes shift and the “war on sugar” forces everyone to rethink their business models.

If Switzerland were to lose its edge in premium chocolate making, it would end almost 200 years of tradition, and although is not a significant part of the economy, it is huge for the image of the country as a whole.

The Swiss government still provides substantial agricultural subsidies — a Schoggigesetz, or chocolate law, ensures Swiss-produced ingredients can compete against imports — although under pressure from the World Trade Organisation they are being phased out.

For Swiss premium chocolate makers, the only path to future growth is to try to stay ahead of changing consumer demands.