Roger’s Chocolate

Heather, Leann, Megan, Matt

To double or triple the size of the company in 10 years

*Need a strategy that will fit the culture, and gain the support of the board, management, and employees*

Overall Goal

1. Production & manufacturing inefficiencya. Production Processesb. Supplier: lack capabilities to produce organic or fair

trade products c. Forecasting System & material management

2. Lack of brand awareness a. Company is resistant to changeb. Small market reach

Key Issues Confronting Roger’s

Internal Environment

Strengths

- Established and reputable brand- Rich History in Canada- Passionate and committed employees- Competitive Advantage: superior quality- High amount of assets

Weakness

Production Process: - not efficient- no methods to measuring production efficiency Suppliers:- Unreliable tins manufacture from China- Cocoa supplier Forecasting

Freight and Postage Costs- 10% of over liabilities

Internal Environment

Financial Analysis:

Pro-Forma With Current Sales

Internal Environment

Charting Pro-Forma:

Recommendations

-Production Process

-Use Equipment to Full potential

- New Suppliers

Financial Recommendations

- Cost Reduction

➔ High quality, hand wrapped chocolate in very traditional packaging, targeted at affluent customers looking for luxury experience with a

superior taste, or a unique gift

➔ Tourist customers

➔ Passionate employees

➔ Traditional and family like values

➔ Packaging of chocolates

Roger’s Brand

1.Economic growth2.Demographic forces

3.Social forces

Macro-environmental Factors

1. Godiva2. Bernard Callebaut

3. Lindt4. Purdy’s

5. Extreme high end custom chocolatiers6. Companies that command price premium

7. New entry by traditional manufacturers into premium market

Key Rivals

Growth-Expansion Recommendations

National Expansion throughout Canada:● Increase brand awareness throughout Canada.

● How?

○ Open additional retail stores in non-tourist locations

○ Increase Wholesale Corporate Accounts

○ Launch a national advertising campaign

Growth-Expansion Recommendations

● International Expansion to the US:○ Global Strategy = Transnational Strategy

● Wholly Owned Subsidiary ○ Open a retail store in Downtown San Diego ○ Benefits:

■ High control ■ Maintain competitive advantage of superior quality

Adapt to American customs, tastes, and preferences. This expansion will broaden the target market.

Cost for Expansion

Sales, General, and Administrative costs● Staffing

○ Hiring new people ○ New Wholesale Accounts (i.e. Sales reps and the cost of maintaining the relationships)

● Advertising & Marketing expenses

Operating and Utility Expenses:● Longer times of factory open, more costs of bills (operating & utility expenses)

Property, Plant, and Equipment ● New retail stores (Real estate costs)

Cost for Expansion

10 Year Timeline

10 Year Plan:1. April 2007 - April 2008: Internal Fix 2. April 2008 - April 2009: Internal Fix3. April 2009 - April 2010: Internal Fix4. April 2010 - April 2011: Expand within Canada5. April 2011 - April 2012: Expand within Canada6. April 2012 - April 2013: Expand within Canada7. April 2013 - April 2014: Open Wholly Owned Subsidiary 8. April 2014 - April 2015: Manage Wholly Owned Subsidiary9. April 2016 - April 2017: Manage Wholly Owned Subsidiary10.April 2017 - April 2018: Manage Wholly Owned Subsidiary

We Will Now Be Accepting Any Questions