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Individual Case 1
Individual Case 1: Scharffen Berger
1. What are your conclusions regarding the proposed ball mill? As Jim Harris, would you proceed with the implementation of that change? How would you do so?
a. Two basic expansion option; the 10,000 foot view.
i. This is a major strategic decision for the company. Are they going to continue to grow with the industry and branch into more main stream products or re they going to to stay true to just the artisanal dark chocolate and semi-sweet that they were founded on.
1. It appears ii. Maintain the current production technics and look to expand the process by changing locations to a larger facility. In doing this process they would acquire more machines that are similar to what they are currently using and just increase the capacity of the current process.
1. Consider the fact that just in 2001 they moved into the current space, current year is 2005. iii. Implement process changes that take advantage of new types of equipment but still maintain the quality and artisanal aspects of their product.
1. The ball mill has gone through testing
2. Assuming that all of the production is of semi-sweet (62%) chocolate, what changes beyond addition of the ball mill will you need to consider to increase your capacity by 150%?
3. Given your answer to question 2, what expansion step(s) would give you the greatest concern? Why? How would you address such concerns?

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