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Rogers Chocolate

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by

Ngoc Nguyen

on 7 November 2013

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Transcript of Rogers Chocolate

Step 2: Assess Current Strategy

1. Quality
2. Price
3. Prestige
1. Cruise ship strategy
2. Franchising
3. Online business
4. Corporate gift market
5. Olympics
6. Concentrate outside British Columbia
7. Brand image restructuring
8. Internal capacity
9. Our Recommendations

Step 3: Identify and Asses Alternatives
Step 4: Decide and Implement
Johnson Cheung
Shira Manoim
Ngoc Nguyen
Christina Pagliaroli
Harpreet Sahota

2011
2013
2017
2015
2009
2008
Manufactured Packaging
Increased productivity
Allow for more customization
Brand image
Address inventory issues
Decreased costs over time
Online/Phone/Mail Orders
Expand market focus to include corporate, seasonal, retail customers
Allow for customization
Olympics
Aligned with target market
Exposure and awareness
Capture large volume of sales
"Experience" of Rogers' Chocolates
Encourage repurchasing
Organic Product Line
Respond to consumer demands
Change in demographic and socio-cultural trends
Larger market segments to capture
Can marginally increase product price
Promote more sales in upcoming Olympics
Divestiture of Sam's Deli
Not aligned with core competencies
Not aligned with growth objectives
Costs have been increasing
Backward Integration
Control over production processes
Maintain brand prestige
Decreased costs over time
Supports strategy for growth
Set a timetable for selling and transfer of ownership
Look for the potential buyers, and create buyer list
Prepare financial statement
Set aside new available funds for future strategic growth plans
Why?
Why?
Strategic Implications:
Strategic Implications:
Strategic Implications:
Why?
Strategic Implications:
Why?
Strategic Implications:
Transnational Strategy
Stakeholder pressures
Competitive pressures
Market expansion
Efficiency in achieving global competitiveness
Supply Chain Management
Imbalance between wholesale and retail
To avoid out of stock issues
Growing demands for retail
Address unethical procurement practices

Strategic inventory management
Addressing the retail customer needs
Managerial preferences aligned with market demand
Adust the procurement standards with Workforce and Human Rights legislation
Begin planning for backward integration



Step 1: Assess Current Performance
External Environment
Internal Capabilities
Focus Differentiation:
1. Cruise ship strategy
2. Franchising
3. Online business
4. Corporate gift market
5. Olympics
6. Concentrate outside British Columbia
7. Brand image restructuring
8. Internal capacity
9. Our Recommendations

Alternatives:
Rebuttal
High quality chocolates
Loyal customer base
Human capital
Providing superior service
Strong culture
Attention to packaging
High prices
Globalization strategies
Widespread distribution
Increased rivalry
Market of premium chocolate growing at 20% per year
Changing demographic trends
Trend towards healthier options
Market position
Supply Chain processes
Sam's Deli
Decline in financial performances

Strategic Implications:
Strategic Implications:
Why?
Why?
Why?
2007
2010
2012
2014
2016
Cruise ship strategy
Focus efforts elsewhere
U.S. tourism is declining
Larger markets to capture by globalizing
Franchising
Loss of control over brand and price
Owners acting in their self-interest
May not maintain the culture of the organization
Strategic and Operational Issues:
Market position
Supply Chain processes
Sam's Deli
Decline in retained earnings
Strategic and
Operational Issues Revisited
The End
Growth by 2 - 3 times
Brand awareness
Meeting changes in consumer demands
Realized strategy
Make agreement with local hotels to sell Rogers' chocolates
Growth of Online/Phone/Mail orders
Provide samples at current Vancouver locations to encourage purchases
Building awareness within this growing market
Assure all value chain activities are aligned with the new product line
Emphasize organic ingredients and health benefits to customers
Capture the market segment before competition intensifies
Corporate-owned expansion to maintain control of brand and price
Open new stores in major cities in both Canada and the U.S.
Deliver standard, flexible products from Canadian markets to the U.S. market
Prepare for new entrants and threat of current competitors in the new markets
Lowering shipping costs to $200s
Greater sales volume would justify the lowered profit margin
Search, contract, monitor and enforce
Supported by sales from Olympics and organic growth product lines
Protection of crucial components of Rogers' competitive advantage
Stakeholder Preferences
Recommendations
1. Address the inventory, production and procurement problems
Supply Chain Management
2. Increase available funds and lower costs
Sell Sam’s Deli
Manufactured packaging
3. Add value and increase market reach
Online/Phone/Mail Orders
Organic Product Line
4. Increase brand awareness
Olympics
5. Long-term growth and efficiency measures
Backwards Integration
Transnational Strategy


Strategic Implications:
Why?
Emphasize focus on hand-made chocolates
New technology to enhance production processes
Desire for growth
Job frustrations
Restructuring brand image
Olympics
Opening new stores would be a temporary plan for growth
Too much investment and risk
Too much leverage at this stage
Full transcript