Rogers’ Chocolates |
Case Study |
What are the challenges of the external environment for Rogers Chocolate?
The premium chocolate industry’s external environment is not really that great in my opinion. While it is profitable, it is a small market that that involves high capital requirements which makes it difficult to enter. According to the 5 force analysis, you can make money in the industry but it will cost a lot to make that money. It is a seasonal industry that is highly profitable around holidays and has high surpluses at other times. At the time of the case the economic variables for the industry were not good, but the technology, social, and political environments for the industry do have positive factors in it.
What are the key internal pluses and minuses at Rogers Chocolate?
According to my SWOT analysis the key pluses for Roger’s Chocolates are loyal employees who are committed to quality, longevity in the industry, product variety and good advertising and reputation in the Victoria area. The minuses for Roger’s chocolates are poor production and sales forecasting, accounting by hand, packaging by hand, high prices, and its focus on wholesale.
According to the competitive strength assessment, Rogers’ needs to focus on allocating more resources to utilize their facilities in a better way so they are not stuck with high surpluses which falls in line with the poor production and sales forecasting that is a weakness in the company.
Discuss the business model and strategy at Rogers Chocolate. Do you think this strategy is sustainable? Why or why not?
Rogers’ earned money in four major areas: retail sales, wholesale sales, Online/phone orders, and Sam’s Deli. According to Exhibit 3 the main store generated most of the sales for the retail stores. This is probably due to the weak brand image outside of the British Columbia area. They need to increase their brand image elsewhere with some advertising before they open up...