Case Study : Charles Chocolate And High Employee Satisfaction And Retention Rate

The premium chocolate industry is a large market in the United States and continues to grow around 10% annually. It is also populated with very strong

At Scharffen Berger Chocolate Maker, Jim Harris was the COO (chief operation officer) and was with the company for about 18 months and was observing the increased demand for their chocolate. “America’s finest dark chocolate” company wanted to increase production by equipping factories with new machineries and equipment but did not want any difference in the taste of the chocolates they produced. As the company totally agrees on not compromising the taste of chocolates and increase the production in order to meet the rising demand for their chocolates they should probably get into customizing chocolates blend for the mass-market retailer in order to grab huge market share, increase accessibility of the chocolate to customers and provide variety of choice to the customers by maintaining the taste they are known for. As the demand is increasing from 50%, 100%, to 150% by the start of 2006, Harris has to make a significant decision in order to invest Scharffen’s capital budget in expansion of the Company. Harris is recommended to acquire the required machinery in order to fasten the production and increase the capacity of the plant and should be careful about the quantity to be produced as the acquiring of machinery will increase productivity multiple times but the initial demand for

The basic characteristics of the marketing concept that could be identified in Clare’s Chocolates are as follows:

Hershey’s and Cadburys are moving towards the premium chocolate market through the acquisition or upmarket launches (Zietsma, 2007). The profit potential present in this sector supported by its 20% annual growth rate make it very attractive for large organizations to come forward and avail this opportunity. There is a low threat of new entrants prevailing in this chocolate industry because of the high capital requirements and expected retaliation by current manufacturers. Current players in the industry also possess some barriers to entry for new entrants by maintaining economies of scales with their large production capacity and keeping their product differentiation with their specialized and novelty chocolate products. Even though there are low switching costs and easy access to distribution channels, but still the brand loyalty of the customers including the Rogers’ Chocolate itself make it harder for new firms to come into the competition.

In the Joy of Chocolate company has different type of stakeholders. Investors of this company are Leo Houmond and Hafiz Shan. They give their hands to develop the joy of chocolate company. This company employees are very bravely. They are working hard. This company financial team is collect their financial details very clearly. Company managers have different ideas for build the Joy of Chocolate Company.

e) Maintenance contracts - Maintenance costs should be included as incremental cash flows because they could change the NPV of the project if the maintenance costs are significantly different for each of the different projects.

3. To become established as the national retailer of choice for chocolate connoisseurs within the next 3 years.

The industry that I chose is the chocolate industry. Growing up in Pennsylvania the Hershey Company is well know throughout the state and is a factory I have visited on multiple occasions. While the chocolate tycoon has made some negative headlines over the past few years with outsourcing and layoffs, they have done a good share of philanthropy work for the state and the Dauphin County area.

The premium chocolate industry is having an intensive competition in Canada with the strong growth potential. Industry growth opportunity imposes increasing competition from rivals and threats of new entrance that adds pressure on overall profitability. Even though Roger’s has been able to establish its place in the chocolate industry with its strong brand recognition and products’ quality, it still needs to be on top of ever- going market changes, by continuously

In 2006, the chocolate market size for Canada was US$167 million with the premium chocolate market growing at a rate of 20% annually. Competition within the premium market is a broad mix of small local niche players to large multinational corporations and is growing as larger traditional manufacturers enter the market via acquisitions or new product launches. Product differentiation is healthy and there are no indications of a price war starting between rivals. Product innovation appears limited, mostly focusing on new flavor introductions and variations in molding and coloring. Seasonal demands, especially the eight weeks prior to Christmas, can create demand that can challenge small companies with low production capacity and/or inadequate forecasting and inventory management. Competitors vary in the level of vertical integration and companies with large-scale operations and distribution networks enjoy a competitive advantage through economies of scale.

1b What is the issue/problem that your proposal addresses and why is it important to the reader?

The premium chocolate market has been growing at 20% annually, showing that buyers are willing to pay more for a better tasting and better quality chocolate. The declining growth of the overall chocolate market and rapid growth of the premium chocolate market is positive for current producers of premium chocolates in that the decline

The Economies of Scale in the chocolate industry is high due to the increase of output of existing chocolate companies that will lower the cost of the cacao production. New entrants in order to compete, they need to produce more in a lower cost possible compared to the actual industries. This may not only be the barriers to entry, but also companies such as Sharffen Berger’s or Godiva, they have a high number of customer loyalty due to their brand names, product quality and reputation that may require new entrant a larger capital investment in order to attract new customers.

In pursuit of upscale segments of the market and an increased market share, Consumer Food Groups (CFG) purchased the rights to become a distributor of Montreaux’s European chocolate products in the United States in June 2011. As CFG is the division which produces confectionery products for Apollo foods, they contribute not only to one-third of the company’s total revenues and net income, but are a vital part of Apollo’s ranking as second in the global confectionery business. Upon acquisition of the rights for Montreaux’s chocolates CFG formed a new division, Montreaux Chocolate USA. Under the leadership of David Raymond as division manager and Andrea Torres

- 250kg of beans  185kg of nibs; This relation can be seen in the