CASE STUDY THORNTONS PLC Introduction In September 2003 Thorntons, the Uk’s largest manufacturer and retailer of specialist chocolates, completed a three-year planning period aimed at achieving a turnaround in the company’s performance. While company turnover had been increased to £167m (= €250m) providing Thorntons with an 8 percent share of its core market, boxed chocolates, profit after tax had declined to the lowest level for seven years (Exhibit 1). During that time Thorntons had set out to follow a series of strategic initiatives involving the reorientation of the company towards becoming a retail-focused business, increasing the scale of the company’s manufacturing and retailing operations and developments that would …show more content…
The demand for Thorntons boxed chocolates follows a strongly seasonal pattern: 35 percent of sales are in the seven-week period before Christmas, a further 10 percent are for Easter, including three million Easter eggs. The combination of providing a fresh product together with the need to meet a seasonal pattern of demand places particular pressures upon the company’s manufacturing facilities. A proportion of the Christmas product is produced several months in advance, maintaining freshness through chilled storage. However, Thorntons chocolates are enrobed in chocolate, rather than moulded. Their hand-made appearance makes the process of packing boxed chocolates less open to automation than is the case for moulded chocolates (with their more uniform shape an size) produced by companies such as Cadburys. The seasonal demand for packing staff requires the increased use of casual workers, with consequent falls in efficiency. Seasonal demand also requires the use of temporary staff in the retail outlets to meet a sales pattern that can within a few days increase tenfold; typically the company sells £10m of chocolate in the last 72 hours of Christmas trading. At times the company has sold icecream (self-manufactured or bought in) as an attempt to offset the effect of low, off-season, chocolate sales. In certain respects Thorntons’ strategy, with its
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
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).
Clare’s Chocolate Cafes has always used good quality cocoa to make their chocolate products. This is, in itself, an amazing marketing product because customers know that while they may be paying a little bit more, the product is worth it. As well, the organization makes a wise customer draw when each hot beverage is served with a high quality chocolate product. The early practice of making chocolate products by hand and providing individual or pre-packaged products, of all sizes, for the customer to select, was
As a member of management Clive Jenkins is responsible for boosting employee morale to ensure that company goals are met
Introduction: Morrison’s PLC is one of the largest food retailers in UK. It has changed a lot over the last 8-10 years. Thanks to HR guidance it has improved all his sections and departments. To maintain this growth Morrison’s has to offer new services and products by using new selling strategies. To improve Morrison’s performance the HR changed the internal and external factors.
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.
3. To become established as the national retailer of choice for chocolate connoisseurs within the next 3 years.
Next to first-hand experience, case studies are one of the best ways to learn project management skills. In The Crosby Manufacturing Corporation case study, Harold Kerzner reports on the executive-level exchange between the company president and other department heads regarding a new Management Cost and Control System (Kerzner, 2009). This paper will give a synopsis of the case, analyze the case study communications issues and risks, and evaluate Livingston’s selection of a project manager. It will also discuss the possible reactions from the employees, the impact on the cost and time on the
In the Harvard Business School case study of Intermountain Health Care (IHC), we learned about the efforts made by IHC to adopt a new strategy for managing health care delivery that is focused on improving care quality while simultaneously saving money. Beginning in 1986 as a series of experiments tying cost outcomes to traditional clinical trials, IHC’s approach to delivering care became known as “Clinical Integration” which “referred to both an organizational structure and a set of tools” (Bohmer, 2002). The organizational structure required a departure from the traditional administrative management model to one that “involved administrative and medical
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
The aim of this report is to examine what generic strategy Tesco employs, the position this strategy takes on Bowman’s clock and whether Tesco’s generic strategy provides an effective competitive advantage. “Strategy is the direction and scope of an organisation over the long term: which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.” (Johnson et al, 2005)
In this report I will be providing the UK’s largest supermarket, Tesco with advice on their performance. I have chosen to use two types of analytical models to review the company; I will be looking at the organisational structure of Tesco, as well as analysing their business and competitive strategy.
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
This report focuses on the United States-based ice cream producer, Dreyer’s, Inc., which used to be the largest ice cream company in America. In order to consolidate the ice cream industry, Rogers and Cronk, CEO of Dreyer’s, carried out some advancing operation philosophies including the launch of a strategic plan named the “Grand Plan” in the year 1994. The report gives a description of the expectations of the “Grand Plan” and their