Rogers' Chocolate Case Study

As a director, I would choose some of the more seasoned staff members to meet with me as part of a task force to rectify the problems at the

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

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.

While Europe and the United States account for most chocolate consumption, the confection is growing in popularity in Asia and market forecasts are optimistic about the prospects in China and India (Nieburg, 2013, para 9). According to the CNN Freedom Project, the chocolate industry rakes in $83 billion a year, surpassing the Gross Domestic Product of over a hundred nations (“Who consumes the most chocolate,” 2012, para 3).

Imagine being a young child walking into a chocolate museum where chocolate lines the walls, you can create your own one of a kind candy bar, thousands of different types of chocolates, and chocolate bars line the walls.

Candy is not yet a “mature” industry in the United States. The compound annual growth rate for candy in the past ten years has been close to 6% a year, a very solid gain in an industry that is supposedly mature. In fact, within the chocolate confectionery subcategory, the United States ranks 11th in the world in per capita consumption and fifth in the world in growth since 1980. Based on current demographics, many analysts believe that there will be further growth for confectioneries. A “baby-boomlet” is on the way, significantly increasing the teenage population. By the time the population bulge peaks in the year 2010, it will top the baby boom in the 1960s in both size and duration. According to government statistics, the percentage of children between the age of 5 and 14 will rise during the 1990s, increasing from 14.2 percent of the population in the 1990 to 14.5 percent in the year 2000. This trend will serve as a strong foundation for increasing consumption of confectionery products through the end of the century. Nevertheless, spending for food and drink as a percentage of all personal consumption is declining in the United States, and most manufacturers recognize that future opportunities lie in using profits from domestic

As H.R. goes I would more these four generalists into a supervisory role, if permitted. One manager would not be enough for each of these functions as more generalists are added, we would need a new chain of command to dived focus. The current Human Resource manager would then focus on directing the supervisors and be available for more escalated issues.

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

The chocolate industry operates in an oligopoly market. An oligopoly is when a small number of firms dominate the market. While not a quite a monopoly, an oligopoly market is still controlled by a select number of companies and the market can be directly impacted by one or two major firms (Oligopoly Investopedia). Hershey’s has control of the largest market share, holding 44.4% (U.S Market Share). Mars Incorporated follows behind in second by holding 28.9%. While these two companies hold much of the control and power within the industry, LIndt/Ghirardelli and Nestlé maintain a combined share of 15.1% of the industry’s market. This means that four companies hold a combined 88.4% of the market, with two of them holding a combined 73.3%. The market was not always this way however. Up through the 1960s many candy suppliers were regional.

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

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

* Replace inefficient individuals –like the House manager, trouble making actor, Senior Box Office manager and Group Sales managers.

Theo Chocolate was first established in March 2006 by Debra Music and Joe Whinney in the Fremont- neighborhood of Seattle, Washington (theochocolate.com, our story). For Theo, they want to do more than just chocolate. It is about the land, the people, the dedication, and the interconnected relationships that bind all of them together. That is why Joe Whinney- Theo’s founder- first pioneered the supply of organic cocoa beans into the United Strates in 1994. Traveling and working in the tropics of Central America and Africa, Joe fell in love with the land and

Coco’s Chocolate Café was inspired by a lifelong love of all things chocolate. I wanted to get out of the office and into the community to create a sumptuous haven where people could indulge in rich, creamy, warm chocolates and make them an integral part of their daily lives,

The Scharffen Berger Chocolate Maker is experiencing an exponential year over year growth rate of their premium product. This is a situation that all new businesses strive for and although Scharffen Berger is pleased with their growth, they are facing a potential dilemma. The company must consider how they will keep up with growing demand while having enough capacity to handle the increase in production and maintain their high quality standards.