Swiss Chocolate

In this report, we will discuss the background of Switzerland’s cultural values, in order to more fully understand the chocolate industry and its patterns of internationalization. Switzerland is made up of a mixture of cultures. This mixture is demonstrated by the fact that there are four official languages of Switzerland. A large portion of the wealth is concentrated in the upper class, but the government has a welfare program that helps the very poor support themselves and their families. There is no official religion, but the majority of the citizens consider themselves Roman Catholic. The political system is democratic, and supports its free market economic model.

The raw materials needed for chocolate production are imported into Switzerland from developing countries primarily in Africa. Much of it is consumed in Switzerland, but large portions of it also get exported to other countries. Various problems in the chocolate industry exist when companies try to market their products as though they were made in Switzerland, and many companies have been sued over this conflict. Also, there is a large wealth gap between countries that provide raw materials, and countries that actually manufacture the chocolate. Some exporting countries even still enslave children to work in to harvest the raw materials needed.

There is not enough land in Switzerland to sustain its population alone, so it uses an export-based economy to support its population. It therefore imports necessary inputs for the chocolate making process. Over the past few decades, the costs to produce chocolate have decreased, so the purchase price has decreased accordingly. In combination with these lower prices, because Swiss chocolate is so well-known, it allows for broader access to foreign markets, making it easier for companies to expand globally.

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