Executive Summary:

This business case presents an opportunity for the organization to expand its operations into Eastern
Europe, which offers several key benefits and potential returns on investment. The primary advantage of
this expansion is the opportunity to lower manufacturing and distribution costs for the organization's
Choco pie plant, resulting in a net saving of £2m over the course of one year.

Eastern Europe presents several favorable factors that make it an attractive location for business
expansion. These include a large and growing market with a high demand for the organization's
products, a favorable business environment with low taxes and regulations, and access to a skilled and
cost-effective labor force.

In addition to the cost savings and revenue growth potential, this expansion can also provide strategic
benefits for the organization. These include increased market diversification, reduced reliance on any
one geographic region, and improved supply chain efficiency.

The return on investment for this business case is strong, with projected financial benefits exceeding the
costs of the expansion within a relatively short timeframe. This makes it a compelling opportunity for
the organization to pursue, and one that can help to position the business for continued growth and
success in the years ahead.

Reasons:
The expansion of the Choco pie plant is essential for the organization to achieve its corporate objectives
and remain competitive in the market. The following are the key reasons why the project is necessary:

1. Lower production costs: The current production costs of the Choco pie plant are too high
compared to competitors, and this has led to lower profitability and market share. The
expansion of the plant will allow for greater economies of scale and more efficient production
processes, leading to significant cost savings.
2. Increased market demand: The demand for Choco pie products is growing rapidly, both in the
domestic market and in international markets. The expansion of the plant will allow the
organization to meet this increased demand and capture a larger share of the market.
3. Improved supply chain: The expansion of the Choco pie plant will enable the organization to
improve its supply chain and increase the efficiency of its distribution network. This will result in
faster delivery times and better inventory management, reducing waste and increasing
customer satisfaction.
4. Diversification of operations: The expansion of the Choco pie plant into new markets will help to
diversify the organization's operations and reduce its reliance on any one geographic region.
This will help to reduce risk and increase long-term stability.
5. Competitive advantage: The expansion of the Choco pie plant will provide the organization with
a competitive advantage over its competitors, enabling it to offer a wider range of products,
increase profitability, and achieve greater market share.
Overall, the expansion of the Choco pie plant is essential for the organization to achieve its corporate
objectives and remain competitive in the market. It will enable the organization to improve its
production processes, increase market share, improve its supply chain, diversify its operations, and gain
a competitive advantage over its competitors.

Business Options:
After careful analysis of the situation, the following business options are available for the organization's
Choco pie manufacturing and distribution plan:

1. Do nothing: This option involves maintaining the current operations of the Choco pie plant
without any significant changes or investments. However, this option will result in reduced
market share and profitability over time as competitors continue to invest in their own
operations.
2. Minimal effort: This option involves making small, incremental improvements to the Choco pie
plant's existing operations. This option may help to maintain market share in the short term, but
it is unlikely to be a sustainable strategy over the long term.
3. High-cost spend: This option involves making significant investments in the Choco pie plant's
manufacturing and distribution capabilities, potentially including the expansion of the plant and
the establishment of new distribution channels. This option carries a high level of risk, as the
return on investment may not be realized for some time.
4. Locate in Far East: This option involves establishing a new manufacturing and distribution center
in the Far East, where labor and production costs are lower. However, this option will increase
distribution costs and may require significant investment in infrastructure and logistics.
5. Extend capacity in the UK: This option involves expanding the capacity of the Choco pie plant in
the UK to meet growing demand. However, this option will result in higher costs, and there is no
guarantee of government support or incentives to offset these costs.

Based on our analysis, we recommend pursuing the high-cost spend option, which involves making
significant investments in the Choco pie plant's manufacturing and distribution capabilities. This option
offers the best potential for long-term profitability and market share growth, while also allowing the
organization to remain competitive with its rivals. However, we recommend that the organization
conduct additional research and analysis to ensure that the investment is made in the most effective
and efficient way possible.