In order for Steve Parkhill to increase the growing of Rogers Chocolates by more so duplicating its current size within the following 10 old ages. the undermentioned issues demands to be addressed: •How to set up an effectual internal operating scheme associating to efficiencies in production and forecasting demand so that the company can break program for the hereafter. •How to increase trade name awareness within Eastern Canada and other parts of the universe so that the company can turn. •How to pick the most effectual distribution channel to make the greatest growing so that they can increase net incomes.
Situation Analysis
The Canadian market size for cocoas was US $ 167 million in 2006 and was expected to turn every twelvemonth by 2 % . Where as the premium cocoa market is turning at a rate of 20 % per twelvemonth ( Exhibit 1 ) . There is a big scope of competition within the premium cocoa market runing from big companies to little local companies that have a niche merchandise ( Exhibit 4 ) . With the growing rate of cocoa decreasing and a big addition in growing in premium cocoas. larger companies are come ining the premium market by geting companies or establishing new merchandises ( Exhibit 1 ) . There is a difference in merchandises between the companies. which has non led to any pricing wars. A high per centum of gross revenues occur during the two months before Christmas. It could be debatable if companies can non bring forth or calculate the demand during this busy period. Due to economic systems of graduated table. larger industries don’t have to worry every bit much about newer competition ( Exhibit 2 ) . Customers are demanding for more organic merchandises. as they are going more wellness witting. They besides want companies to pattern good societal duty by holding environmental and human right concerns ( Exhibit 1 ) .
Decision Standards
•A executable program to beef up retail production
•Establish a scheme that will make trade name consciousness towards new clients
•Effectively distribute merchandises to maximise net incomes.
Options
1 ) Focus on Online Retail Shop
Rogers’ Chocolates already has a great Website. they can use it and make more gross revenues as it is merely bring forthing four per centum of gross revenues ( Exhibit 1 ) . This would be ideal as it has low costs to keep the web site and they are able to pull a younger demographic as they sell to online shoppers. They can advance this by giving price reductions to clients who are buying online for their very foremost clip. Another manner they can pull more clients to buy online is by honoring clients who refer friends to purchase merchandises through their online shop. The disadvantage to this scheme is that clients will hold to pay excess for transportation charges. If they can diminish the minimal order to have free transportation. it might assist deter clients from non shopping online. Another point that they would necessitate to see is on-line security and privateness.
2 ) Use the Winter Olympics to Create International Brand Awareness With Vancouver winning the command for the Winter Olympics this gives Rogers’ Chocolate an chance to demo off its great heritage that it has with BC ( Exhibit 1 ) . It is Canada’s oldest cocoa mill and BC’s 2nd oldest company. They can utilize this to pull tourers to witness a portion of BC’s history and by using its shops that are located in Whistler. Granville Island and Gastown. With the addition in people come ining Vancouver during this clip. they can extremely publicize these three locations as they are already tourist finishs and will besides be keeping many Olympic events in those countries. They should publicize their shops by seting ads into tourist’s booklets and besides Olympic booklets that show people where to travel as they visit Vancouver. This will greatly assist construct consciousness for the two Vancouver shops and assist increase their expected gross revenues.
3 ) Restructure Organization
Presently Kate Phoenix is overworked and is supervising excessively many sections ( Exhibit 1 ) . An option is to further develop the Retail Store Manager so that Kate can purely remain in the office and let the retail shop director manage Sam’s Deli and drive merchandises around shops. I would replace Ray Wong as his internal production planning system failed ( Exhibit 1 ) and he is non able to manage his sections as they frequently indirectly report to Phoenix. I would develop Bjorn Bjornson on how to utilize an accounting plan so that information can be inputted into an electronic database so that the information can be used in other plans to assist foretell prognosis and to be used in other powerful tools.
4 ) Implement Integrated Production Plan and Operation Control System I would rede Mr. Parkhill to engage a adviser or a new VP of Manufacturing to implement a new production program so that they can mensurate their efficiency. By repairing the production program it will assist better the companies ability to calculate demand as it’s yearss in inventory turnover rate is rather high ( Exhibit 3 ) . this in bend will take to fewer back orders.
Recommendations & A ; Action Plan
I would urge that Steve Parkhill replace Ray Wong and engage a new VP of fabrication that would be able to implement a new production program. as this is one of their biggest concerns if they want to go on to turn as a company. They need to be able to calculate demand and be more efficient. particularly if they need to bring forth more merchandises as they grow. I would so reconstitute the organisation get downing with the other two frailty presidents. doing them more efficient in their occupations. I would so get down concentrating gross revenues towards the online retail site. There is an huge potency for growing in that country. They will necessitate to get down advancing their web site by offering publicities to clients who purchase online to assist increase traffic and make a loyal client base.
