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Rogers'

Rogers'

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PREPARED AND SUBMITTED BY GROUP 2

ROSLAN ABD KARIM (MR081075)  MEHDI ABBASNIA (MR081182)  JIANG HONG (MR081082)  NIMA KHODAKARAMI (MR081189)  MUHAMMAD ZULFAKAR AHMAD 
(MR081062) 
GROUP LEADER:  ARASH VOSSOUGHI (MR071108) 

  Later.  strategies.  A  summary  of  financial  ratios  has  been  presented  as  Appendix  1. we evaluated  Rogers’  Chocolates  current  performance.  and  policies  (Appendix  2).  we  have  scanned  external  environment  of  the  firm  in  order  to  determine  the  strategic  factors  that  pose  opportunities  and  threats.  Then  the  internal  environment  of  Rogers’  Chocolates  has  been  scanned  to  determine the strategic factors that are Strengths and Weaknesses and we did  an in depth SWOT analysis to pinpoint problem areas (Appendix 3).  We  had  a  review  over  the  company’s  current  mission. Lai.Foreword  Based on the strategic decision‐making approach.  In  the  second  step. in the first step. we have tried to follow the strategic decision‐making approach  in case analysis and decision based on the exclusive framework of Dr.    NOTE: Appendixes have been attached to the hard copy of this document  . performance of the firm’s Top Management has  been  reviewed. In the light  of the analysis.  based on the case information.  objectives.

Issue 2: Whether to develop a new concept of product and packaging Issue 3: Whether to expand online selling system Issue 4: Whether to expand retail sales system 3.300% growth rate within 10 years” 2. the most important things to do are: Issue 1: Whether to implement integrated production planning and operation control systems. Expanding online selling system and e-marketing Issue 4: Whether to expand retail sales system A 1: No expansion A 2: More emphasize on retail rather than wholesales A 3: Expanding retail system within the region A 4: Expanding retail system to other parts of the country  Page | 1     . Implementing integrated system for production plan and controlling operation Issue 2: Whether to develop new concepts of product and packaging A 1: No new product development and retaining on traditional concept products of packaging. STRATEGIC MANAGEMENT. Coping with the current situation A 2: Yes.IBS. ISSUES: In order to address each of the strategic matters. Current system is good enough A 2: Yes. A 2: Yes. Introducing new concepts of products with more customizable and fashionable packaging Issue 3: Whether to expand online selling system A 1: No. GROUP 2. UTM CITY CAMPUS. ROGERS’ CHOCOLATES. JULY 2009  Rogers’ Chocolates  1. A 1: No. ALTERNATIVES: Generated alternatives for each of the identified issues are: Issue 1: Whether to implement integrated production planning and operation control system. STRATEGIC MATTERS: Two different types of strategic matters that need strategic decisions have been identified: SOLVING ORGANIZATIONAL PROBLEM “Overcoming production and operation problems” ACHIEVING ORGANIZATIONAL OBJECTIVE “Achieving 200% . MRB 3012. CASE ANALYSIS & DECISION.

 STRATEGIC MANAGEMENT. competencies and constraints of each organizational function  Communication Weak internal between communication functions Issue 2: Whether to develop new concepts of products and packaging C. FACTORS CURRENT SITUATION FUTURE SITUATION LOGICAL ASSUMPTION Productivity and efficiency measurement Inventory Management There are no meaningful measures of productivity or efficiency existed. opportunity cost due to shortage. JULY 2009  4. CASE ANALYSIS & DECISION. on-time delivery and efficient utilization of all resources. UTM CITY CAMPUS. old fashion Attracting diverse group of customers Issue 3: Whether to expand online selling system C. repetitive shipments. FACTORS CURRENT SITUATION FUTURE SITUATION LOGICAL ASSUMPTION Global sales Capturing a new customer segment Mostly within Canada and US. FACTORS CURRENT SITUATION FUTURE SITUATION LOGICAL ASSUMPTION Change in consumer preferences Packaging and customizability One line of trans-fatfree products and some no sugar added items Differentiation from the rivals Satisfying increasing number of health conscience consumers will distinguish the firm from its rivals. value analysis. and discount over surplus items Measuring performances to recognize efficient versus inefficient activities Shortage / surplus avoidance Ability to recognize value added activities from inefficient activities. MRB 3012. It establishes vertical and horizontal channels for a better communication Cost of operation Control over the operation cost and efficient utilization of resources result in gaining competitive advantage Mutual understanding of the capabilities. GROUP 2. C. Mostly loyal customers from rural areas (60% are regular customers) Capturing a broader market Attracting younger and new customers Online selling system enable firms to capture a broader market Younger generation tend to do everything online! Page | 2     . Out-of-stock issue Over stock items Long change over-times. Deals with ups and downs of sales pattern through healthy inventory management Cost is controlled by wastage reduction.IBS. fashionable and more customizable products and packaging Traditional. inventory control. CRITICAL FACTORS  Issue 1: Whether to implement integrated production planning and operation control systems. ROGERS’ CHOCOLATES. New generation of customers want more glitzy.

Taking advantage of the growing market Selling in a broader market No growth Higher growth rate Niche market Presence in a wider market Expanding retail sales to 5. bonus. JULY 2009  Giving gift/discount Only a “thank you” letter along with catalogue Giving gift/discount after a certain amount of buying Higher brand image due to aggressive e-Marketing activities Loyal online customers It encourages customers to buy more Aggressive e-Marketing is a branding tool that keeps you on customers' minds. some Brand awareness reps cannot present the brand adequately. Issue 1: Whether to implement integrated production planning and operation control systems. FACTORS CURRENT SITUATION FUTURE SITUATION LOGICAL ASSUMPTION Increase Sales 50% of sales Increase in sales More brand awareness outside the region via well trained and more committed employees It seems that retail shops are able to sell more chocolate (p. ROGERS’ CHOCOLATES. Giving gift. Also. CASE ANALYSIS & DECISION. GROUP 2. MRB 3012. Unknown brand outside the Victoria. competencies and constraints of each organizational function    NO YES Page | 3   .1.IBS. discount. ALTERNATIVES CRITICAL FACTORS BASED ON FUTURE SCENARIO Coping with the current situation NO NO NO Implementing integrated production planning and operation control systems YES YES YES Recognizing efficient versus inefficient activities Shortage / surplus avoidance Control over the operation cost and efficient utilization of resources result in gaining competitive advantage Mutual understanding of the capabilities. c-182) Well trained and more dedicated employees enable to present the brand adequately and appropriately sell it outside the region. STRATEGIC MANAGEMENT. UTM CITY CAMPUS. Presence in a wider market along with more brand awareness enables the firm to gain a higher growth rate. EVALUATION OF ALTERNATIVES  5. and free delivery keep the customers loyal Aggressive e-Marketing Customer loyalty program NO NO Issue 4: Whether to expand retail sales system C.

2. but less than the next alternative YES. STRATEGIC MANAGEMENT. but less than the next alternative YES NO YES. MRB 3012. ALTERNATIVES CRITICAL FACTORS BASED ON FUTURE SCENARIO No new product development and retaining on traditional concept products of packaging NO NO Introducing new concepts of products with more customizable and fashionable packaging YES YES Differentiation from the rivals Attracting diverse group of customers 5. Issue 2: Whether to develop a new concept of product and packaging.IBS. Issue 4: Whether to expand retail sales system. JULY 2009    5.4.3. Current system is good enough NO NO NO NO NO Expanding online selling system and e-marketing YES YES  YES  YES  YES  Capturing a broader market Attracting younger and new customers Giving gift/discount after a certain amount of buying Higher brand image due to aggressive e-marketing Loyal online customers   5. but less than the next alternative YES Page | 4     . UTM CITY CAMPUS. CASE ANALYSIS & DECISION. but less than the next alternative YES NO MODERATE YES. ROGERS’ CHOCOLATES. ALTERNATIVES CRITICAL FACTORS BASED ON FUTURE SCENARIO No expansion More emphasize on retail rather than wholesales Expanding retail system within the region Expanding retail system to other parts of the country Increase sales More brand awareness outside the region via well trained and more committed employees Higher growth rate NO NO YES. Issue 3: Whether to expand online selling system ALTERNATIVES CRITICAL FACTORS BASED ON FUTURE SCENARIO No. GROUP 2.

Parkhill can implement this strategy simultaneously with the previous with the help of Marketing VP and a reliable IT counselor. GROUP 2. CASE ANALYSIS & DECISION. Roger’s will be ready for expanding. 4. UTM CITY CAMPUS. Rogers’ is to develop an easy to navigate. ROGERS’ CHOCOLATES. This will help him to gain a proper control over the business. 3. The third step will be to develop and expand the firm’s online selling system. prior to any other strategy implementation. Parkhill is to address the firm’s production and operation problems by implementing integrated production planning and operation control system. Marketing research and consumer preferences survey should be conducted in order to find out what exactly consumers need.1 Expanding retail sales within the region. At the other hand. JULY 2009  6. 4. This strategy should be implemented right after finishing the previous one. In the next step. Rogers’ is confronting with “customers aging” issue. 3. • Rogers’ can take advantage of change in consumer preferences for organic and healthier chocolate. Expanding retail sales for the Roger’s will take place in two steps as followed: 4.1 3. new concepts of products and packaging need to be developed in order to differentiate the firm from its rivals and to attract diverse group of customers. MRB 3012. STRATEGIC MANAGEMENT. Parkhill should address these problems by implementing integrated production planning and operation control systems as soon as possible. This is a teamwork job under direct supervision of the CEO. he should develop new concepts of products and packaging in order to attract diverse group of customers. Rogers’ old fashion way of packaging products seems to be one of the main causes of the firm’s slowdown. It needs a watchful eye to analyze each and every function in order to find out the best way of doing the job. After the three aforementioned steps. At the other hand. IMPLEMENTATION ACTION PLAN • Regarding to numerous internal problems that Rogers’ is currently facing.2 7. expanding online selling system and e-marketing will help the firm to capture a broader market as well as younger generation. Page | 5     .2 Expanding retail sales within the region. today people tend to do everything Online! Therefore. 2. STRATEGIC DECISION Rogers’ Chocolates will be able to address both of its aforementioned strategic matters through the following stepwise decision process: 1. This will be a platform for the firm to capture a broader market and attract younger and new customers. multi lingual website and doing aggressive e-Marketing activities as well as to try to take the highest rank in pioneer search engines. Therefore. • Currently.IBS. First and foremost.

positive results of the previous implemented strategies and after gaining the projected ROI will be ready for more expansion. with assistance of VPs of all functions Rogers’ website Simultaneously with the previous strategy CEO + Marketing VP + reliable IT counselor Downtown Victoria After finishing the 2nd strategy CEO + Mktg. Expanding online selling system and e-marketing Expanding online selling system and e-marketing To capture a broader market & attract younger customers 4.IBS. ROGERS’ CHOCOLATES. In the first phase. Expanding retail system 4. UTM CITY CAMPUS. Production planning and operation control systems 2. and should be finished at the end of 2009 CEO. producing organic products with more contemporary packaging Inside the organization 3. Whistler After finishing the 4th strategy CEO + Mktg. CEO. CASE ANALYSIS & DECISION. Analysis and records prove that this is the best strategy to take advantage of the growing market. Rogers’ will continue its expansion through acquiring high-end retailers in Vancouver. Ontario.1 Within the region 4. VP Page | 6   Right after the 1st strategy CEO + Marketing VP . MRB 3012. JULY 2009  • After successfully implementing all mentioned strategies. multi lingual website and aggressive eMarketing 3 retail shops with long term lease agreement Through acquiring high-end retailers WHERE to implement? WHEN to implement? WHO to implement?   Inside the organization ASAP. GROUP 2. VP Vancouver. Marketing VP should help him in finding the most appropriate location. Parkhill should acquire 3 retail shops in downtown Victoria with long term lease agreement. STRATEGIC MANAGEMENT.2 Outside the region WHAT Production planning and to implement? operation control systems WHY to implement? To gain a control over the business Expanding retail sales To presence in a wider market & higher growth rate Expanding retail sales To presence in a wider market & higher growth rate HOW to implement? Engineering all functions to find out how resources are to be utilized Easy to navigate. Rogers’ implementation action plan has been summarized in the following table: STRATEGIC DECISION MADE Implementation Actions 1. Expanding retail sales for the Roger’s will take place in two steps. Ontario. and Whistler. New concepts of products New concepts of products and packaging To differentiate and attract diverse group of customers Based on consumers preferences survey. Rogers’ will be ready for expanding its retail sales system. To presence in a wider market and taking more advantage of the growing market. with assistance of Marketing VP are responsible for implementing expanding retail sales strategy. After two years.

Customer loyalty program 4. To keep customers loyal WHY to implement? To prevent and reduce resistances and encourage employees to participate To make the firm up to date in terms of consumer preferences a2. Well trained staff should adequately present the brand d. MRB 3012. Strong marketing campaign In stores & inside the organization Proactive strategy Intense competition a. Aggressive e-Marketing b. Free or discounted delivery a1. Free or discounted delivery a1. Production planning and operation control systems 2. Brand awareness activities b. Well trained staff should adequately present the brand b. JULY 2009  8. To increase online sales Showing befits and positive outcomes to employees through frequent meetings Cutting cost of inefficient activities to offer more free or with discount delivery c. Threat of entry b. Aggressive e-Marketing b. POTENTIAL PROBLEM ANALYSIS STRATEGIC DECISION MADE Implementation Actions 1. Expanding retail system 4. Customer loyalty program WHAT to implement? A series of informative and persuasive speeches and meetings to manage resistances Continuous marketing research a2. VP . STRATEGIC MANAGEMENT. New concepts of products 3.1 Within the region 4. To reach to as much as possible customers To prevent of losing market share b. CEO Online survey and throughout the market Starts before implementation and will be continued CEO + Marketing VP Throughout the WWW Proactive strategy CEO + Marketing VP CEO + Mktg. GROUP 2. CASE ANALYSIS & DECISION. VP + Retail staff Page | 7     HOW to implement? Continuous marketing research and online surveying WHERE to implement? WHEN to implement? WHO to implement? Inside the organization Starts before implementation and will be continued Roger Parkhill. ROGERS’ CHOCOLATES. Expanding online selling system and e-marketing a. Brand awareness activities b. Cost of shipments a1. New product development (NPD) a. Intensively NPD In stores & inside the organization Proactive strategy CEO + Mktg.IBS. New product development (NPD) Contingency Plan Continuous marketing research a2. UTM CITY CAMPUS.2 Outside the region Potential Problem Negative reactions and resistances Frequently informative and persuasive speeches and meetings Shift in consumers preferences Not gaining the projected return Strong marketing campaign and branding activities Gradually implementation along with marketing campaign To back to the projected growth rate and minimize loss a.

 MRB 3012. CASE ANALYSIS & DECISION. today people tend to do everything Online! Therefore. A table consists of detailed implementation plan for managing the potential problems has been provided in page 7. Rogers’ can take advantage of this opportunity by introducing new concepts of products and packaging in order to differentiate the firm from its rivals and to attract diverse group of customers. It has been suggested to Rogers’ to divide its retail expanding strategy into two steps: • • Expanding retail sales system within the region (Victoria and British Colombia). Rogers’ will be ready for expanding its retail sales system. there is a change in consumer’s preferences for organic and healthier chocolate. At the other hand. CONCLUSION In this case. Rogers’ was not successful to proportionately grow. Page | 8     . ROGERS’ CHOCOLATES.IBS. Analysis and records prove that this is the best strategy to take advantage of the growing market. Also. there will be definitely some issues that may prevent of successfully implementing any strategy. Analysis shows that Rogers’ suffers from old fashion way of packaging that seems to be one of the main causes of the firm’s slowdown. With regards to the plentiful organizational problems of the Rogers’. and then Expanding retail sales system to other parts of the country As we have learned. we deal with two different types of strategic matters: a series of organizational problems as well as an organizational objective desired by the Board. Rogers’ is confronting with “customers aging” issue. JULY 2009  9. In addition. UTM CITY CAMPUS. expanding online selling system and e-marketing will help the firm to capture a broader market as well as younger generation. GROUP 2. CEO should address these problems by implementing integrated production planning and operation control systems to gain a proper control over the business. STRATEGIC MANAGEMENT. While projected growth rate for the premium chocolate industry is 20%. first and foremost.

  Used  in  conjunction  with  other  measures of financial health.41 Gross Profit  Margin  54. In addition.  ASSET MANAGEMENT RATIOS  In  order  to  measure  how  effectively  Rogers’  is  managing  its  assets.57 0.9% 7. quick ratio that excludes inventories has  been calculated. Although. therefore.  Rogers’  low  turnover implies poor sales and.  As  can  be  seen.  most  of  times  it  is  difficult  to  turn  inventories to cash. low asset turnover of Rogers’ shows  inefficient using of assets in generating sales. but suffers from very  high cost of operation  Net Profit  Margin   Debt to  Equity Ratio  78% 48% Debt Ratio  43% 32% Total Assets  Turnover   Inventory  Turnover  7.24 1.40 1.  DEBT MANAGEMENT RATIOS  Rogers’ very low level of debt management ratios indicates that the firm  has  much  more  assets  than  debt.5%     .  assets  management  ratios  have  been  calculated.73 7. In  other words.  As  we  know.Appendix 1. excess inventory. current ratio would overestimate a company's short‐ term financial strength.15% 8. It tells us that most part of the assumed liquidity of Rogers’  belongs  to  inventory.36 Ratio  2005  2006  1. Quick Overview on Financial Performance of Rogers’ Chocolate (2005‐06)  LIQUIDITY RATIOS  This  series  of  ratios  reveal  Rogers’  Chocolates  ability  to  pay  off  its short‐ terms debts obligations.  it  shows  the  extent  to  which  Rogers’  Chocolates  uses  debt  financing  or  the  firm’s  ability to meet financial obligations  PROFITABILITY RATIOS  Analyzing Rogers’ profitability ratios revealed:  • • • Sales has declined in 2006  Profit Margin has declined in 2006  Rogers’ has a very good gross profit margin. however.46 Current Ratio  1. very low level of debt ratio can be translated  as the  firm’s high  degree of  being  risk  adverse.  High  inventory  levels  are  unhealthy  because  they  represent  an  investment  with a rate of return of zero.55% 55.67 Quick Ratio  0. Therefore. having a current ratio over 1 is normally  acceptable.

PHILOSOPHY  Rogers' Chocolates honors its time-tested brand by: • • • making only premium products packaging them elegantly and choosing our retail partners carefully We also believe that the quality of our products starts with the procurement and mixing of fine ingredients but extends to the high level of customer service you can expect from all facets of our organization. Strategies  HISTORY  Rogers' Chocolates is steeped in tradition and a rich history that has earned the company its current reputation as one of Canada's premiere chocolate makers. In 1891. Rogers' Chocolates is owned by a small group of shareholders located primarily in B. has positioned Rogers' as a leader in the confections industry. and using natural ingredients whenever possible. upholding our proud Canadian tradition.Appendix 2. Rogers' products are becoming increasingly revered for their aesthetic appeal. He quickly became a popular man. MISSION STATEMENT  Rogers' Chocolates is committed to producing and marketing fine products which reflect and maintain our reputation of quality and excellence established for over a century. STRATEGY  Reviewing the case and visiting the firm’s website reveal that Rogers’ strategy is to produce premium quality chocolates which are handmade. and overall exceptional taste. Eliminating the use of hydrogenated fats and oils. The first Rogers' chocolates were made in 1885 by Charles "Candy" Rogers in the back of his grocery store in Victoria. As quality chocolate continues to gain popularity among health-conscious. educated consumers. hand packed and highly customizable. providing healthy alternatives to consumers. wholesome ingredients.000-square-foot factory. is history. B.C.C. Objectives. Today. All aspects of our business will be conducted with honesty and integrity.  Mission. It seems that Rogers’ is trying to differentiate itself from the rivals   . Rogers expanded his chocolate operation to the company's current heritage storefront on Government Street in Victoria and the rest. several hundred wholesale outlets. The Victoria-based company now has 10 retail stores. and a 20. as they say.

 Weak  Sales Network & Incapable Sales Reps   Old Fashion Packaging  Poor Inventory Management  Unknown Brand Outside the Region  Limited Financial Resources & Poor Cash Flow Management  W THREATS  Economy Slowdown  Entry of Giants such as Cadburys & Hershey’s to the Industry  Loyal Customers are Aging  Public Health Consciousness & Threat of Shifting to Healthier  Substitutes  T .APPENDIX 3.    ROGERS’ CHOCOLATES SWOT ANALYSIS              Internal Factors  STRENGTHS  Premium Quality Products  Knowledgeable and Dedicated Management & Personnel  Loyal Customers in the Region  Superior Brand Image and Perception in Victoria  First‐rate Internet Website  Several Key Retail Locations & Excellent In Store Experience   Outstanding Market Leadership (Award Winning)  Innovative Customer and Employee Relations (Award Winning)  External Factors  S OPPORTUNITIES  High Industry Growth Rate  Change in Consumer’s Preferences for Organic Chocolate  Public Demand for buying Products mostly from Social &  Environmental Responsible companies  Expanding Online Sales  Expansion Outside the Region  Olympics 2010  O WEAKNESSES  No Measurement for Productivity & Efficiency  Weak Production Planning  High Cost of Operation  Poor Logistics.

(2009).com/ . 2009. Y. (n. Kuala Lumpur. New York: Macmillan Pub Co. IBS. I. Strategic Management (MRB 3012). UTM City Campus. Retrieved July 18. Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases.Bibliography  • Lai. A. C. • Gamble. J. F. (Director) (2009. • David.d. from http://www. A.).. Case Analysis and Decision. & Strickland. J. July 12). Thompson. Fundamentals of Strategic Management.rogerschocolates. • Rogers' Chocolates... (1986).. Boston: Mcgraw-Hill College.

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