CASE 9: Rogers' Chocolates
Rogers' Chocolates is the oldest chocolate company in Canada based in Victoria, British Columbia. Rogers' Chocolates focuses on the premium chocolate market and differentiates itself by delivering award winning quality products at a fair price; this combination creates a good value for its customers. They also have expertise at creating an outstanding customer experience within their Victorian themed retail locations that have also won awards. The company is privately held and currently focuses its business in four market areas, direct retail , online/mail order , wholesale, and sales from a restaurant in Victoria. The company also produces and sells a line of premium ice cream. The company employes 130 people, the majority of which are in retail. Sales from the company's retail establishments account for 50% of revenue. Production takes place on a one-shift operation in a 24,000 square foot facility and is labor intensive. There are currently no measurements in gauge productivity and efficiency in the plant. The past president focused a growth strategy in the wholesale market and current order fulfillment strategy is to give priority to online and mail-order business, followed by wholesale accounts, leaving the retail locations last to be serviced internally. Sales have seasonal swells during the holidays and demand forecasting has been an issue; they have increased inventory to deal with these sales patterns but still encounter out of stock situations. The new president has been given a goal by the board of directors to double or triple the size of the company within 10 years. PROBLEM STATEMENT
The focus on the wholesale market does not inline with the strengths of the company. Furthermore, the issues in operational efficiency with regard to production capabilities and demand forecasting are hindering the company from increased growth potential. ALTERNATIVES
Focus on strengthening...
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