Strategic Analysis fo Rogers' Chocolates

Topics: Electronic commerce, Online shopping, Marketing Pages: 8 (1948 words) Published: April 1, 2014
EXECUTIVE SUMMARY

Mr. Steve Parkhill, president of Rogers’ Chocolate, has been faced with the challenge to double or triple the size of the company within 10 years. Ideas for growth have already been presented by the board, and these include franchising, online business, corporate gift market, and focusing on the 2010 Winter Olympics in Vancouver, British Columbia. It was suggested to focus its efforts outside of British Columbia, but there is no guarantee that they would have the same success elsewhere.

The three alternatives that have been presented include developing growth strategies focused on (1) sales, (2) structure, and (3) e-commerce. Upon evaluating each of these alternatives, the one that has been presented to Mr. Parkhill is to develop a growth strategy focused on e-commerce.

E-commerce is increasing in popularity each day. Most businesses have an online shopping component which is always convenient. By offering shipping in Canada and the United States, Rogers’ could reach a whole new market.

INTRODUCTION

In March of 2007, Mr. Steve Parkhill had just started his new job as president of Rogers’ Chocolate. He spent two months training with the former president, and is now considering his options for growing the company. The following outlines the problem he is facing, some company background information, alternatives, recommendation, and a brief plan for implementation.

PROBLEM

The issue that the president of Rogers’ Chocolates (Rogers’), Mr. Steve Parkhill, is facing is how to double or triple the size of the company within 10 years, at the request of the board of directors. Each of the board members and members of the management team had a different idea of what Rogers’ needed to do to achieve such growth. Mr. Parkhill needs to develop a strategy that would fit with the company’s culture, and then gain the support of the board, the management team, and the employees.

BACKGROUND

Rogers’ Chocolate was founded by Charles Rogers in 1885 in Victoria, British Columbia. It was Canada’s oldest chocolate company, and British Columbia’s second oldest company. For the past two decades, the company has been owned by a private group comprised mainly of two financial executives and partners with Connor, Clark & Lunn, a Vancouver-based investment firm; an art dealer and private investor; and a former owner of Pacific Coach Lines, a Victoria-based bus company. These four and a past president of Rogers’ made up the board of directors.

During these twenty years, the company had grown sales by more than 900 percent.

ALTERNATIVES & ANALYSIS

There are several alternatives that are available to Mr. Parkhill to assist in increasing the size of the company. In his first few months on the job, Mr. Parkhill had been seeking the opinions of managers and board members on various growth options. Ideas that had already been discussed, though not necessarily fully researched, included franchising, online business, the corporate gift market, and focusing its efforts outside of British Columbia.

Develop a growth strategy that focuses on sales

There are four way to increase sales: market concentration, innovation, penetration, and diversification. The following outlines each of these areas.

Market Concentration

In terms of market concentration, each business has possible customers that it has not yet reached, customers that also purchase from other businesses, and customers it has lost. This leads to great potential in discovering ways to increase sales in existing markets. To get customers to purchase more, there are three ways to do so: (1) more frequent use, (2) larger quantities, and (3) new uses.

When it comes to more frequent use, the organization shall produce the feeling of becoming a habit. By changing displays or special offers frequently, offering novelties or events, or even advertising the benefits of regular use, customers may be drawn in. Also, Rogers’ could offer a frequent-buyer...
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