Real Chocolate Company

Topics: Strategic management, Management, Michael Porter Pages: 10 (3412 words) Published: February 24, 2011
The Real Chocolate Company Incorporated is a chocolate and confectionary company specializing in gourmet chocolates and confectionary. The Vision of the company is to build the company into the premier retail chocolatier in the United States. The Mission of the company is to use only the finest, highest quality ingredients with no artificial preservatives in the Perfection in Handmade Gourmet Chocolates. The company’s products are gourmet chocolates, over one hundred varieties of other chocolates, fudges and varieties of caramel-covered apples, roasted nuts and chocolates, also a variety of confectionary. Marketing process of the company is in-store promotions and point of purchase materials. The local stores used advertisements, coupons, flyers, and mail order catalogs, Social and community sponsorship. The key stakeholders are the employees, the franchise owners, the customers, the management team and the providers of raw materials such as the cocoa farmers. The strategy of the Real Chocolate Company is to increase is market share in the gourmet chocolate industry by franchising and opening factory out lets in malls in the United States. This is done by exploring the value chain concept which was developed by Michael Porter in his book Competitive Strategy. Word Count: 189.

Part (1)
External Analysis of the Real Chocolate Company is the analysis of thinking strategically about two sections of the company’s position, (1) the industry and competitive environment in which the company operates and the forces acting to reshape this environment, and (2) the company’s own market position and competitiveness, its resource and capabilities, its strengths and weaknesses and its windows of opportunities. The real chocolate company operates in a macro- environment that is shaped by influences coming from the economy, population demographics, societal values and lifestyle, government legislation, technology and the industry and competitive factors. The factors and forces in a company’s macro-environment have the biggest strategy shaping influence on the company’s immediate industry and competitive environment. To fully analyze the strengths and weaknesses of the real chocolate factory an S.W.O.T analysis is one the best analytical tool to achieve this. Strengths: the resource strengths and competitive capabilities of the company are strong, the operations of the company is based on a strong strategy and the proper execution of this strategy. An example of this is the strategy of franchising to enable the company to expand its market share, franchising also minimized the cost of expansion and cost controlling in the area of transportation. Core competencies: the company employees are one of their greatest asset and competencies. A comprehensive seven days training program is given to franchisees, the quality of the stores design made an attractive customer ambiance, location of outlets and the skill of the management and employees to produce a large quantity of gourmet chocolate and confectionaries. Other strengths include having a strong financial position, good brand name and low marketing cost. Weakness: susceptible to government laws and legislations, having to import their main commodity for the making of chocolate, cocoa from overseas, imports can be disrupted by diseases, drought an other factors. Cost of cocoa not controlled by the company. Opportunities: the real chocolate company has a number of opportunities to explore, as one of America’s 100 fastest growing small public companies. To increase their market shares in the gourmet chocolate industry, the low calorie chocolates, product placement, promotions, displays, and signage. Growth in the organic and natural chocolate production, new opportunities for sales by focusing on nontraditional candy holidays. Cross selling of products with greeting cards or wine. Threats: the number of companies in the industries, artisan chocolates from small...
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