Rogers Chocolates

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GLOBAL SUPPLY CHAINS MÓNICA JOSÉ POLANCO AGUILAR
GLOBAL SUPPLY CHAINS INDIVIDUAL FINAL EXAMINATION ROGERS’ CHOCOLATES Analyze as a strategy decision case.

FINAL EXAMINATION

1. The Rogers’ Board wants the new CEO to develop a strategy to double or triple the size of the company within ten years. What performance metrics would you recommend that the CEO use to gauge how well the company is doing in achieving this growth objective and its strategic goals?

Performance metric to measure the company’s performance, growth objective, and strategic goalsi: «Strategic performance measures monitor the implementation and effectiveness of an organization's strategies, determine the gap between actual and targeted performance and determine organization effectiveness and operational efficiency1». As said by the author, a good performance measure is the one that can: «provide a way to see if our strategy is working, focus employees' attention on what matters most to success, allow measurement of accomplishments, not just of the work that is performed, provide a common language for communication, are explicitly defined in terms of owner, unit of measure, collection frequency, data quality, expected value(targets), and thresholds, are valid, to ensure measurement of the right things, and are verifiable to ensure data collection accuracy2», In that sense, I would have recommended the CEO to measure the company’s performance according to the “System of Profound Knowledge” developed by W. Edwards Deming in his book “The New Economics for industry, government and education”. According to the author, the layout of profound knowledge appears here in four parts3: 1 2 3

http://www.balancedscorecard.org http://www.balancedscorecard.org Deming, E. The New Economics, MIT Press, Cambridge. 2ed. 2000.

GLOBAL SUPPLY CHAINS MÓNICA JOSÉ POLANCO AGUILAR
    Appreciation for a system Knowledge about variation Theory of knowledge Psychology

FINAL EXAMINATION

According to Deming, «understanding of variation, including appreciation of a stable system, and some understanding of special causes and common causes of variation, are essential for management of a system including management of people»4. As it was said by Deming, a system is «is a network of interdependent components that work together to try to accomplish the aim of the system. A system must have an aim5», because of that, the process of management whose requirements are to expand the company within some years, need to be evaluated with PDSA Cycle (The Shewhart Cycle for Learning and Improvement) as flow diagram for learning and for improvement of a product or a process. However, in this case the question was not how to improve a process, but to establish a metric to measure a performance that may evaluate growth strategy, and for that we consider that a growth strategy has to be gauged as a system, and because of that it has to be viewed as a process of improvement within a system.

PDCA Cycle

4 5

Deming, E. The New Economics, MIT Press, Cambridge. 2ed. 2000. Ibidem.

GLOBAL SUPPLY CHAINS MÓNICA JOSÉ POLANCO AGUILAR

FINAL EXAMINATION

2. What is your recommendation for a growth strategy for Rogers’ Chocolates to double or triple the size of the company in ten years? Use only organic growth decision options. Support your recommended growth strategy.

My core endorsement for a growing strategy for Rogers’ Chocolates it is to develop a system based management that will focus on that organic growth, but not only directing it to an expansion strategy, but to focus on what the system needs to grow. Although brand management, value based management, strategic marketing, and improvement on supply chain management, are all aspects that will help develop a spreading out strategy, the profound knowledge of the system will lead us to really comprehend what the structure is requiring in order to grow. In order to decide if our organic choice to grow will be by...
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