Mike Falkenstein FINA 4210 Dr. Matt Blasko 8 February 2013 Chocolate Confections Corporation Case Study (1) Provide an Executive Summary (2-3 paragraphs, overview) of the situation and the issues. The Human Resource Department of the Chocolate Confections Corporation has enlisted the services of the Forrester Consulting Group in selecting a new software package that will place them at the forefront of the human-resources/payroll computing community. With the implementation and integration of a new software system, the HR Department hopes to gain a more user-friendly system that will streamline HR and payroll business processes. The vice president of the Human Resources Department, Monica A. Bentz, appointed a “working committee” to …show more content…
b) HR manager/professional savings of $500,000 – The “time savings” of the HR managers and professionals cannot be considered to be an incremental cash flow. The managers will still be paid the same annual salary. c) Total savings associated with staff reductions ($270,000 per year) – The total savings associated with staff reductions can be considered in the evaluation of this new project because the new software system will enable CCC to reduce its number of employees. d) Information systems charge-backs (both cost reduction and additional expenses) – Only costs associated with each of the different projects should be included in the NPV analysis. For instance, research regarding which system should be purchased would be considered to be a sunk cost and should not be included in the analysis as an incremental cash flow. On the other hand, the cost reduction of each project should be included in the NPV analysis, since the reductions will greatly affect the NPV of each project. 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. f) Inflation. Does the explicit 5% inflation rate assumed in the HRIM’s analysis seem appropriate in light of the
Challenges: Although it has highly integrated payroll partnerships, it is the only vendor in this evaluation to not offer payroll administration as a native part of its application. SuccessFactors a high energy offering; though it may be intimidating to more traditional HRIS users. Corporate wide training and cultural adjustments will be required to get employees, managers, and HR professionals collaborating through the
Success of any businesses organization is determined by factors such as financial, management & operational. Financial factors address use of capital in business and flow of cash through various processes within the organization. Management factors are linked to organizational structure of the enterprise. Whereas operational factors address how available resources are used to achieve objective of the organization. Apart from these three factors, environmental factors like competition also determine success of any business organization. This paper explores transformation that Rogers’ Chocolate Company has undergone since its establishment. The paper also investigates competitive strategy of the company against its close
1) Incremental cash flows are the cash flows that should be used in calculating the NPV of a project. The cash flows are changes in cash flows that occur as a direct consequence of accepting a project, not the cash flows that the company is already receiving.
The basic characteristics of the marketing concept that could be identified in Clare’s Chocolates are as follows:
Charles Chocolate is one of the most prominent chocolate brand in New England, having various chocolate product line with highest quality and customer loyalty. Charles has only one production facility in Portland with high employee satisfaction and retention rate. Although it has strong financial position as off today, Charles has been dealing with various problems regarding production, supply chain management and product design. The current president, Steve Parkland has the job to double or triple the size of the company, and for doing that he will also have to review sales and marketing, IT and human resources strategy to continue the healthy financial position of Charles and accelerate the sluggish growth rate in future. After the case study, we are expecting Jim to make recommendations about resolving the ongoing operational limitations, revitalizing marketing and sales, and probable expansion possibilities. Jim will also make decisions about finding the right successor for Charles and solving some HR issues.
The present value of the net incremental cash flows, totaling $5,740K, is added to the present value of the Capital Cost Allowance (CCA) tax shield, provided by the Plant and Equipment of $599K, to arrive at the project’s NPV of $6,339K. (Please refer to Exhibit 4 and 5 for assumptions and detailed NPV calculations.) This high positive NPV means that the project will add a significant amount of value to FMI. In addition, using the incremental cash flows (excluding CCA) generated by the NPV calculation, we calculated the project’s IRR to be 28%. This means that the project will generate a higher rate of return than the company’s cost of capital of 10.05%. This is also a positive indication that the company should undertake the project.
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Its value is that they will be caring and considerate of their employees, customers, suppliers, shareholders, the community and the environment by showing respect to each other and valuing diversity, working together to achieve a safe, friendly and positive working environment, setting clear expectations, recognising contribution and developing their people, leading by example and taking responsibility for their actions, communicating clearly, inclusively, honestly and in a timely manner, having pride in their product and passion for the business, its heritage and its future and contributing to the community through corporate benevolence and environmentally sustainable practices (Haigh's Chocolates).
Dream Chocolate (D.C.) is a small company trying to survive in an industry with many competitors. The competitive environment comes from some factors. Firstly, D.C. bars are sold in specialty markets, fine gift stores and also available online. However, the competitive companies can also provide various chocolate bars for customers with the low price on the Internet. Secondly, comparing to the big chocolate company like Mars, D.C. is a small company that has the lower brand reputation. Therefore, there may be not many people would trust their products.
Opening a facility in Kentucky allows the company to ship their products to the Scharffen Berger retail stores located in New York City (Upper West Side and Greenwich Village), and other upscale department and retailers, such as Trader Joes, located throughout the United States. This will save transit time and freight costs substantially[2] .as compared to shipping directly from California to the stores. In a cost comparison researched showed that there was a delta of $4,167.43 when shipping from the West Coast facility to New York compared to shipping from the East Coast facility to New York. This opportunity to reduce transit time can ensure the integrity of the chocolate to conceal the freshness. With a new
In 1982 they began selling outside UK (sales to Europe & Australia reached 300000 sterling)
‘’organisations exist and function within society and consequently are subject to a variety of social influences. These influences, which include demography, social class and culture, can change over time and affect both the demand and supply side of the economy. Marketing organisations recognise and make use of these factors when segmenting markets for consumer goods and service’’ Worthington, I (2009) p.135.
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 purpose of this Market report is to present a study of the different opportunities for The Hershey Company to be able to expand its business globally and to make an initial proposal that Hershey’s pursue opportunities in France.
Enterprise recourse planning (ERP) is a business software that is a suite of applications intended to organize the business processes starting with planning to the point of shipping and payment. ERP operates in real time providing a shared database that supports the business process. It follows a consistent manner of tracking all aspects of the business across all functions and departments. offering so many levels for different management needs because it has the ability to customize the information as needed. This implementation paper will focus on HERSHEY FOODS CORPORATION by investigating and highlighting the reasons behind the catastrophe that Hershey foods corporation faced when implemented the ERP.