Work strategic Case Study Example | Topics and Well Written Essays - 2000 words

Work strategic - Case Study Example The Real Chocolate Company, together with other chocolate and confectionery industry players must legally comply with government regulations. This includes health, sanitation and safety regulations. Product labeling regulations must be strictly followed. Franchise operations must abide with registration and disclosure of information. Candy taxes, vending machine restrictions and other legislations such as levels of lead in candies, which are introduced in various states in US, would affect the costs of chocolates and confectionery products. On the other hand, the increase in sugar imports to the country would be beneficial to the supply needed by the company. Health concerns that might affect the sales of chocolates is the increasing problem of obesity. Sweets, such as chocolates, and other high calorie products may causes obesity when taken irresponsibly. Although, health benefits of the product, especially dark chocolates, organic and natural chocolates, appeals to health-conscious consumers and old people. High income groups, Asians, and younger people are becoming the target market of gourmet chocolates. These groups have different behaviours and needs, but they serve as an opportunity for sales and growth when exploited. Prices of primary raw materials, like chocolates and nuts, used for the manufacture of gourmet chocolat... Uncertainty in the supply and the price of commodities may affect the production and operation of Real Chocolate Company stores and franchises. 1.2. Porter's 5 Forces Competitive analysis checklist was created to identify the five forces of competition. See Appendix A. Analysis shows that the market is highly competitive. Direct competitors have larger annual sales against the Real Chocolate Company. The power of suppliers is also high. The flow of supply of raw materials such as chocolates and sugar affects the production directly. Ease of entry into the chocolate market is high. Chocolate manufacture is simple and there are variations in the way the products are created and served. The company is almost dependent on the sales in franchise stores, which can be considered as customers of the Real Chocolate Company. Other sources of revenues such as company owned stores and non-traditional outlet is relatively low on the cash flow. 2. Internal Analysis 2.1. Strengths and Weaknesses "Perfection in Handmade Gourmet Chocolates" is a very good motto for both customer perspective as well as the employee's morale. This motto demonstrates the commitment of the company towards freshness and quality produced chocolates. Perfection means quality. Handmade illustrates freshness. Customer impression is important to create customer satisfaction and loyalty. Employee's morale and attitude is also guided by the motto since it reveals the responsibility of not just the management but also to the rest of the stakeholders in the company. This is a responsibility of producing quality chocolates from start to finish, from raw materials to packaged chocolates. The larger portions of chocolates in the packaging and the wide