Roger's chocolate
description
Transcript of Roger's chocolate
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Roger’s Chocolate
Heather, Leann, Megan, Matt
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To double or triple the size of the company in 10 years
*Need a strategy that will fit the culture, and gain the support of the board, management, and employees*
Overall Goal
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1. Production & manufacturing inefficiencya. Production Processesb. Supplier: lack capabilities to produce organic or fair
trade products c. Forecasting System & material management
2. Lack of brand awareness a. Company is resistant to changeb. Small market reach
Key Issues Confronting Roger’s
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Internal Environment
Strengths
- Established and reputable brand- Rich History in Canada- Passionate and committed employees- Competitive Advantage: superior quality- High amount of assets
Weakness
Production Process: - not efficient- no methods to measuring production efficiency Suppliers:- Unreliable tins manufacture from China- Cocoa supplier Forecasting
Freight and Postage Costs- 10% of over liabilities
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Internal Environment
Financial Analysis:
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Pro-Forma With Current Sales
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Internal Environment
Charting Pro-Forma:
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Recommendations
-Production Process
-Use Equipment to Full potential
- New Suppliers
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Financial Recommendations
- Cost Reduction
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➔ High quality, hand wrapped chocolate in very traditional packaging, targeted at affluent customers looking for luxury experience with a
superior taste, or a unique gift
➔ Tourist customers
➔ Passionate employees
➔ Traditional and family like values
➔ Packaging of chocolates
Roger’s Brand
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1.Economic growth2.Demographic forces
3.Social forces
Macro-environmental Factors
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1. Godiva2. Bernard Callebaut
3. Lindt4. Purdy’s
5. Extreme high end custom chocolatiers6. Companies that command price premium
7. New entry by traditional manufacturers into premium market
Key Rivals
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Growth-Expansion Recommendations
National Expansion throughout Canada:● Increase brand awareness throughout Canada.
● How?
○ Open additional retail stores in non-tourist locations
○ Increase Wholesale Corporate Accounts
○ Launch a national advertising campaign
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Growth-Expansion Recommendations
● International Expansion to the US:○ Global Strategy = Transnational Strategy
● Wholly Owned Subsidiary ○ Open a retail store in Downtown San Diego ○ Benefits:
■ High control ■ Maintain competitive advantage of superior quality
Adapt to American customs, tastes, and preferences. This expansion will broaden the target market.
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Cost for Expansion
Sales, General, and Administrative costs● Staffing
○ Hiring new people ○ New Wholesale Accounts (i.e. Sales reps and the cost of maintaining the relationships)
● Advertising & Marketing expenses
Operating and Utility Expenses:● Longer times of factory open, more costs of bills (operating & utility expenses)
Property, Plant, and Equipment ● New retail stores (Real estate costs)
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Cost for Expansion
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10 Year Timeline
10 Year Plan:1. April 2007 - April 2008: Internal Fix 2. April 2008 - April 2009: Internal Fix3. April 2009 - April 2010: Internal Fix4. April 2010 - April 2011: Expand within Canada5. April 2011 - April 2012: Expand within Canada6. April 2012 - April 2013: Expand within Canada7. April 2013 - April 2014: Open Wholly Owned Subsidiary 8. April 2014 - April 2015: Manage Wholly Owned Subsidiary9. April 2016 - April 2017: Manage Wholly Owned Subsidiary10.April 2017 - April 2018: Manage Wholly Owned Subsidiary
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We Will Now Be Accepting Any Questions