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Haigh's Final Report

Management Decisions and Control (University of Technology Sydney)

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Ruishen Shen 13152487

Executive Summary
The purpose of this report is to define performance dimensions for Haigh’s Chocolate. This

report will provide a brief organizational analysis of the key objectives, structures, strategies and

activities to analyze their key performance. The combined performance includes sustainability

performance, sales growth and innovation to achieve long-term sustainable business success. The

last part of the report provides the justification for the selected performance dimensions based on

both organization analysis and management accounting theory.

Organization overview
Haigh’s Chocolates is a private company which was established in 1915 by Alfred E Haigh. It is

an Australian confectionery industry organization offering excellent chocolate and has over 600

employees that works between the factory, administration 18 retail stores related items to

consumers in Adelaide, Melbourne and Sydney (Haigh’s chocolate 2018). The company focuses

on its quality chocolate manufactory and signature products development.

Objectives
Organizational objective refers to the goal setting that an organization seeks to achieve. Proper

objectives help an organization reach its overall strategic goals which is reflected and defined

into its key performance dimensions (Rezende & Nogueira 2010). Haigh’s Chocolate is a

member of community projects and environmental causes, so the sustainable practice would be

included as one of its main objectives. The company also focuses on innovation in the

manufacturing processing in relation to the sustainable packaging and high quality chocolate. As

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a result, they further relate these fundamental aspects to the customer experience, and intend to

maximize customers’ satisfaction and thus improve its financial results.

Strategy and Structure

In the terms of taste and service, the company always try to cater to the customer which worked

in favor of customers in the best possible way. They also have been think the benefit of all its

employees, customers, shareholders, the community and the environment. The expansion and

franchising of specialty chocolate stores is forecast to help reduce the costs and make the

availability of high quality inputs.

CEO
Alister Haigh

CFO
Simon Haigh

Sourcing Manufacturing Logistics Sales

-suppliers -inventory -Transform -Retail shop
-cocoa sourcing -factory processing -Deliveries -online shopping

Competitive strategy
Competitive strategy is the process of developing the potential market and implement the

strategy which aims to become a competitive advantage (Fleming, Chow & Chen 2009). The

advantage of Haigh remains competitive through its strong brand loyalty and high quality

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products, which according to their wide variety of chocolates in attractive package. Additionally,

they also held popular tours to the factory for the public to enlarge its brand loyalty by making

manufacturing process more transparent and trustworthy. Haigh’s chocolate operating their own

locally shops and the strategy would be locally friendly in order to maximize domestic

customer’s satisfaction. From the sustainability edge, Haigh’s has taken an industry lead on

sustainability section which would further distinguish itself from its competitors.

Activities
Operations activities are the clusters of goals and objectives to be completed which the decisions

to be taken by the organization to meet their performance and decide what management they

should continue (Kaynak 2003). Haigh’s chocolates set up their factory in Adelaide, South

Australia at two sites located on the city fringe. And they begins with sourcing cocoa beans from

around the world and bring to factory for roasting and production. They transport the all types of

chocolates to their numerous in different cities of Australia. Due to the positioning in the city,

they also provides the gifts service in Australia where they arrange local deliveries on time with

carefully package. In addition, they encourage customers to use their website to collect

information about Haigh’s chocolates and how to make chocolate which they provide video in

YouTube channel.

Performance defining and justification

Organizational performance involves the results of achieving organization objectives and

analyses the implement of strategies (Otley 1994). For Haigh’s chocolate, there are four

dimensions are defined as customers, sustainability, innovation and financial.

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Sustainability performance
Haigh’s chocolate has always promoting their packaging and product are simple, effective and

reliable which they are aiming to minimize using the detrimental products and promote the usage

of the recycle environmentally friendly products to the customers and community. As the result

of the Australian packaging convent organization rank, Haigh’s chocolates are in advance level.

Haigh’s chocolates has been use sustainable approach to sourcing to respond to the issue.

Sustainability business development can benefit firms economically boost which effect its

performance. Due to the social value, the environmental responsibility has become of prime

importance concern in the modern business around the world (Klovienė & Speziale 2015).

Throughout the sustainable business developmental plan, it would be connected by the social,

and environmental factors together, which sustainable practice is the long-term development that

are necessary for the company (Contrafatto & Burns 2013). Moreover, the firms often use fresh

rainwater in their production processes, thus these operations can improve organizations’

sustainability. As a result, when the company adopts sustainable green production process, it

improves the performance efficiency in applying differentiation strategy (Walker et al. 2018).

Innovation performance

New and innovative technology which can helps the business improve its performance through a

change in the production process and method (Kaplan & Norton 1993). Haigh’s always aiming

to delivering a world-class chocolate experience, so the factory teams use exclusive technique

skills with the latest in modern manufacturing. They are effectively applicate technological

features to reform the industry, so this would be the success of the company to depend on the

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approach of its designs high quality innovative products for its customers. It is claimed that the

innovation process including advanced technology, operating process and employees’ skills are

essential and vital for the improvement of competitive advantages (Gianni, Gotzamani &

Tsiotras 2017). More importantly, the success of business under the differentiation strategy is

tightly related to the innovation perspective (Williams et al. 2017).

Customer performance

Haigh’s chocolate would value customers’ expectation and always focus on providing customer

service to build long-term relationships as important as creating quality products (NAB 2016).

According to the big spend comes as more Australians are online shopping than ever before, with

purchasing rising 11.5% in the past year, and the chocolate lovers will spend more money into

sweet taste, this would increase Haigh’s chocolate sales increase.

Since 2014, Haigh’s chocolates seeks the steady online sales growth and they has been

pleasantly surprised at online ordering increasing and they aims to supply customers best service

around Australia without having a store. The products quality, service efficiency and store

environment are all important in improving customer satisfaction and brand loyalty (Chavez et

al. 2015). This dimension is defined as the result of organization effort that influence external

perspectives (Ferreira & Otley 2009). The market share growth in the domestic market as

mentioned also proves the significant of the effort on customer perspective in generating the

satisfied final result of overall performance (Otley 1999).

Financial performance

Due to the company’s business model and the expansion of new store, the retail sales would

growth as well as online store experiencing volume growth. Some of city do not have physical

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store so they become a largest sales online market. Therefore, through the consumers shopping

behavior are changing and evaluating of payment method, and the organization’s competitive

strategies, innovation of technology and applying the sustainable practice to satisfy the social

value, it is the evidence the importance of financial performance as the company’s terminal

outputs. Thus, financial performance can indicate the comprehensive operating results of the

organization (Siska 2015) and acknowledge shareholders their returns of investments (Ferreira &

Otley 2009). Therefore, with the four defined dimension, the dynamic power among them creates

the advantages to satisfy the internal and external requirements (Gross & Perotti 2017). The

financial and non-financial dimensions together promote both short-term and long-term goal

achievement (Vaivio 1999).

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Reference
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