Introduction
Chocolate is by far the most common food item that people report that they crave. Those who crave chocolate tend to do so when they are emotionally distressed, although a separate dimension, whether one feels guilt, is also important. There are two major explanations of chocolate craving. First, it is said to result from a pleasant taste. Alternatively, it has been suggested to reflect physiological mechanisms, including increased serotonin production; the release of endorphins; the actions of methylxanthines, phenylethylamine, and anandamides; and the supply of magnesium. Chocolate is a special food; for many it has a uniquely attractive taste ( 2004). It has a cultural importance and is used frequently as a gift on special occasions. Such is its attraction that sections of the population will admit to craving chocolate. Some will even describe themselves as chocoholics, although from a scientific perspective the analogy with addiction may not be justified. Chocolate is chemically complex, containing many potentially pharmacologically active compounds, albeit in low concentrations. For example, it contains histamine, tryptophan, serotonin, and octopamine but these are found in higher levels in other food items without the appeal of chocolate, so it is improbable that they play a role it the attractiveness of chocolate (2004). Chocolate is one of the most popular products in the world. One company that produces such product is The Real Chocolate Company. This company makes addictive chocolate and cocoa products that are being sold throughout the world. It has acquired a reasonable number of loyal clients and suppliers.
External Analysis
TOWS analysis
Threats
Globalization affected greatly almost all the industries of the world. It brought about the need for change. The changes created a new competitive environment in this industry. Globalization is one of the threats to The Real Chocolate Company. Globalization can be a threat to chocolate businesses because globalization can produce alternative products that can reduce the need for chocolate products. A threat to The Real Chocolate Company is the competitors. The competitors will try everything they can to gain a better standing against The Real Chocolate Company. The competitors might discover systems that are better than The Real Chocolate Company’s system. The Real Chocolate Company needs to be always prepared for the threats brought by other chocolate companies. The threat to the company includes the laws in the country they are operating in. There may be some future laws that will regulate the ingredients of products. The laws may be used against production of chocolate products. Another threat to the company is the tariffs and taxes that the company has in different countries, each countries has its own rate of taxes and tariff that creates additional expenses for the company. A threat to The Real Chocolate Company is the health issues that might be raised by certain groups. The health concerns on the subscription to chocolate products can be used as propaganda against the company. Lastly a threat to The Real Chocolate Company is the global financial crisis which is slowly giving problems to businesses. The global financial crisis will reduce the client of The Real Chocolate Company and might force it to close some of its branches.
Opportunities
An opportunity for The Real Chocolate Company is to find out more ways to give a distinctive look and features to their products. The company can continue to make sure that their products are uniquely packaged. The company can create attractive and trendy packages that will attract their target market. By doing this the company will have competitive advantage over other firms. An opportunity for the company is to improve the features of their website. The website can be improved by adding online communication systems that will help the company communicate with perspective and regular clients or retailers. By doing this it can attract more clients and retailers from various parts of the world. An opportunity for The Real Chocolate Company is to continue to make use of newer technologies that will provide better service to clients. The Real Chocolate Company can use the advancements in manufacturing facilities and technologies to make sure that the clients will achieve satisfaction. The company can make use of newer technologies to create the best product possible. An opportunity for The Real Chocolate Company is to continue to reach newer markets where it can offer its products. The company should consider making products that specifically target clients who are health and weight conscious. This will divert itself from other companies and will help the company achieve higher income rates. Lastly an opportunity for The Real Chocolate Company is to increase public knowledge about the company and the product it provides. This could be done through the use of internet and other media. This will help have higher rates of profit and it can help the company maintains its business survival.
Weakness
The Real Chocolate Company’s main weakness is minimal advertisements. The company doesn’t use many advertisements that can help it be known to more people. The company relies on word of mouth, the website and some printed advertisements to market its products. A weakness of The Real Chocolate Company is the limited area that has been reached by the company. The company has a small market; this makes it hard for the company to reach newer clients. It also hampers the chance for the company to innovate its products. Lastly a weakness for The Real Chocolate Company is its culture of putting much power on the top management. The company has the tendency to put less decision making capabilities to their divisions. The top management cannot always have the information needed to make decisions on the company’s processes; some decisions may need some inputs from other members of the organization.
Strength
The company’s strength includes its integrated management systems (IMS). This system makes sure that the company’s systems are maintained well so that it can meet expectations. The IMS focuses on the systems of risk management, quality, injury prevention, damage control, emergency plans, and environmental safeguards. The IMS helps The Real Chocolate Company have advantage against competitors through preventing any delay in the operations of the business. A strength for The Real Chocolate Company is its well established values. The values help the company achieve its goal and maintain its stature in the chocolate industry. A strength for The Real Chocolate Company is its high regard for its community wherein the company provides sponsorships and the provision of education opportunities. This ensures that the company has a good relationship with its environment. Moreover a strength for The Real Chocolate Company is its high regard for the safety of the workers. The company has acquired certification for its health and safety practices, this shows that the company uses strategies that have high standards towards the personnel and the clients. Lastly a strength of The Real Chocolate Company is its website that is informative and attractive. The website provides information about the company and information on the products of the company.
Internal Analysis
Resources and Capabilities
Resources
Sony Ericsson’s resources come from reliable suppliers and manufacturers. The materials used in creating the products have to be made of the best kind of raw materials.
Financial
The company funds come from either the parent company or from other sources like investors. The funds are used to pay for the different expenses of the firm. The budget are used to pay for important expenses, the payment for all the employees, the cost of supplies used in creating the products, the cost of electricity, the cost of office materials and other costs or expenses.
Human
In providing excellent service to the clients, a company needs to have a dedicated staff that performs well and knows that the service they give to the client can help the company have a positive or negative image. The staff of the company is well trained to ensure that the best service can be given to the clients. The company makes sure that it hires promising individuals that can assist in the company’s task of reaching their goals.
Skill
The personnel of The Real Chocolate Company are well skilled in creating and selling their products. The company makes sure that they hire individuals who are skilled in management, manufacturing or selling. The company also looks for various activities that will help them improve their skill.
Competencies
Core Capabilities
The Real Chocolate Company’s core competences include its highly advanced product, competitive products and concept of sustainability. Real Chocolate Company makes use of its competences to achieve continuous growth.
Distinct Capabilities
The Real Chocolate Company’s distinct capabilities include its ability to create products that costs lesser than other products. The company’s product cost less but it is delicious like the other company’s products.
Scope
Capabilities
The Real Chocolate Company’s capabilities include its use of sophisticated technologies to create the best product. The company has commendable personnel that were well trained to create the best product.
5m’s
Money
The company is well funded. The funds of the company come from its profits, capital and from investors. The company makes sure that its finances are well budgeted and will go directly to the division that needs it the most.
Minutes
Time is important for The Real Chocolate Company. The company gives importance to time just like it gives importance to finances and human resources. The company has organized schedules that will ensure that products can be made at an appropriate time. The company makes sure that every member of the organization has a balance of work and rest.
Materials
The Real Chocolate Company’s materials come from reliable suppliers. The company keeps the materials in reliable storage areas. The company makes sure that its materials will not harm the environment.
Manpower
The Real Chocolate Company makes sure that it hires the best personnel that have an idea on chocolates and its related products. The company engages in online recruitment, personal recruitment and the use of third party to recruit and choose the personnel that fit their needs. The company trains the personnel in accordance with their tasks and role. The company allows their personnel to attend seminars that will increase their knowledge on their forte. The company makes sure that the personnel are given an appropriate compensation based from their role and contribution to the firm. The company makes sure that all social benefits are received by the personnel.
Machines
The company makes use of the best machinery to create the products. The company has a research division that searches for the latest technology that will help them achieve efficiency and effectiveness in creating their products. The machines are well maintained by a special group of personnel. The company makes sure that the machines are regularly checked for problems.
Implications on Management
The use of 5m’s makes it easier for the management to operate the firm. The use of 5m helps The Real Chocolate Company and its management to focus on strategizing. Through the 5m the management receives assistance in attaining the goals of the firm.
Current Problem Diagnosis
Global financial crisis is inevitable because it is part of the process of growing up. It is part of the pain of making mistakes at all levels. Without that pain, people will not learn how to adjust and how to manage risks. Given that governments have now gone through a huge and painful process, they need to address the real sector problems, the financial sector problems, the need for better transparency, and the issues concerning leverage and derivatives that are still poorly understood ( 1999). The global financial crisis has created a certain effect not only to poor countries but to developed countries as well. The crisis will affect the developed crisis more because they have more stakes in the global financial market. The crisis has affected businesses. The current problem of the firm is more on the global financial crisis. The global financial crisis created the need for the company to rethink about their focus and their goals.
Generation and Evaluation of Strategic options
For an organization to be successful it must be imaginative at devising a full range of strategic options, so that they can be evaluated and the most appropriate strategic option chosen. This requires imaginative and creative people who are able to play a role in mapping out these alternative futures for the organization and such people are not always easy to find, nor do organizations always allow creatives to play such important roles ( 2003). Once a full range of strategic options has been mapped out, they need to be evaluated unless top management has already decided that it prefers one of them, in which case the evaluation will be more of a show trial for the undesired options ( 2002).
The first strategic option focuses on changing the direction of the company and taking a look at the company’s core competency. In the first strategic option the company’s choice of succeeding action will be based on what the environment needs, what the environment offers and what the company can afford. Since there are low sales on some of the chocolate merchandise, this option will determine means to focus on other products and reduce the order for the materials used in making some of the chocolate brands that earn low sales. In this option the company will focus on the products that have higher sales. The company’s option of concentrating more on better performing products can help the organization to reach more markets and answer to varying needs of clients. It can help the company to face the global financial crisis by reducing costs on unworthy products. The limitation on the first strategic option will be more on how the clients will respond to the reduction of some of the products. The clients who buy the chocolate merchandise may be disappointed if they discover that there is a reduction on the supply of such products
Another strategic option focuses on what is needed by the market and what will create innovations in the market. In this strategic option the focus is on the company’s creativity, desire to reach the objective oriented and need to follow the theory. The market led strategic option for the firm is to sell newer products not available in the market. These products can help the company counter the threat of globalization. The sale of new products can be used to counter the low sales of some chocolate merchandise. The other strategic option will help the company to increase its product line; it will help in attracting clients who usually don’t buy chocolate products. This option will give the company additional income that it can use to prepare for the global financial crisis. A limitation on the second strategic option is the clients feeling alienated due to the addition of new product lines.
The chosen strategic option and Courses of action
The second strategic option is the one that will be used to solve the problem. The strategic option on selling newer products will be the one that will be used to counter the global financial crisis. The second option is feasible and the company has enough finances to do such option. The strategic option is acceptable to both the society and members of the organization. It will not be the cause of internal or external conflicts. To implement the strategic option there are different courses of action that needs to be taken
Conclusion
Chocolate is one of the most popular products in the world. One company that produces such product is The Real Chocolate Company. This company makes addictive chocolate and cocoa products that are being sold throughout the world. . The current problem of the firm is more on the global financial crisis. The global financial crisis created the need for the company to rethink about their focus and their goals. To solve the company’s problem the company intends to sell newer products not available in the market. These products can help the company counter the threat of globalization. The sale of new products can be used to counter the low sales of some chocolate merchandise.
Credit:ivythesis.typepad.com
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