Rogers’ Chocolate is on a mission to have the company double or triple its size within 10 years. An analysis will be performed to figure out a strategic plan where Rogers’ Chocolate will be able to grow, and maintain their image of providing premium chocolates. The issue facing Rogers’ Chocolate is how they will be able to gain new customers and sustain their current customers. To give a thorough analysis, I will identify and explain the strategic issue, present the results of the analysis, and present alternative strategies. Finally, I will present my recommendation and conclude the analysis. Strategic Issue
The strategic issue facing Roger’s Chocolate is how to grow the company by being able to gain new customers and still maintain their current customer base. The objective of Rogers’ Chocolate is to double or triple the size of the company within 10 years. By growing, this means that they will need more production, more employees, and more customers. Rogers’ Chocolate will need a strategy that will help position them to be able to grow the way they want it to. Analysis
After reviewing Rogers’ Chocolates finances, they are good shape and have improved from 2005 to 2006. This improvement shows opportunity for the company to reach its objective of growing. According to their balance sheet, their current ratio for 2006 is 1.366 (2,330,241/1,705,132) and 1.245 (2,896,842/2,326,966) for 2005. These numbers show that they are able to continue to pay off their obligations. This means they are in a position where they shouldn’t go bankrupt. It also shows that Rogers’ Chocolate are just efficient enough in the sense of turning their product into cash. The company’s cash available for next year, 2007, is $74,744. This is down from what they had at the beginning of the year, $151,802. This may hurt them when trying to invest into new areas.
The external environment of Rogers’ Chocolate looks very promising. Godiva and Bernard Callebaut are the only ones that seem to threaten Rogers’ Chocolate position in the market. The other chocolate companies are of lower quality and price but still compete with Rogers’ Chocolate. Godiva’s chocolates are priced higher but lower quality. Bernard Callebaut’s chocolate are similar to Godiva’s in price, are in similar locations as Rogers’ and are also good in new introductions and seasonal products. They are also superior to Rogers’ when it comes to their packaging. The internal environment doesn’t look well for Rogers’ Chocolate. With very few employees who do multiple jobs, Rogers’ seems like they are not able to handle their demand for their product. Also their issue with out of stock product causes many problems when trying to keep up with other demands.
Strengths for Rogers’ Chocolates include liquidity and their differentiation from other competitors. Roger’s is in a good position financially. They are not in the best position but are in a good enough position to make changes and improvements. Rogers’ is also efficient. Once, again they are not at their best, but are efficient enough to be a successful competitor. They are also very strong in their image. They are able to differ from their competitors with high quality chocolate and an image that is known locally.
Rogers’ weaknesses are cash flow and production. Although Roger’s Chocolate is not in a position to go bankrupt, they have limited cash to invest into improving their operations. With the low amount of cash they have, they may have to borrow in the future. Another weakness is their production efficiency. A low number of employees and bad planning causes their production to be slow and inefficient. Inventory management and out of stock problems cannot continue if Rogers’ want to be able to grow into the company they want it to become.
Rogers’ Chocolates has several opportunities. One opportunity is to maintain their current image to introduce new products to compete with Bernard Callebaut. Having a new...