Charles Chocolates Case Essay

In marchland of 2012 Steve b eitherpark was hired as the revolutionary president at Charles Chocolates. He was presently faced with numerous conclusions virtually the hereafter of the high society. The board of directors had tasked Parkland with doubling or tripling the size of the company e trulywhere the next decade, merely the board and the older management team had different opinions about the strategy that would accomplish this goal. The main issues that Parkland faced were how to increase the companys trading operations while maintaining the traditional enculturation and support of the board. The premium chocolate pains is a banging market in the United States and continues to grow around 10% annually. It is in any case populated with very truehearted competitors both internationally, with companies worry Godiva (Nestle), and local companies like Delice. Both competitors are priced higher than Charles and stupefy higher sales.This is most likely because Godiv a and Delice baffle modern trendy packaging for their harvest-homes. The egress and strength of competitors means that buyers have very high bargaining power, but it also means that the threat of new entrants is depression because it is hard to gain a blame of a market saturated with much(prenominal) powerful players. The majority of the suppliers to the chocolate application sell commodity crops whose price is stack by the market and their power and crook is low gear.There are numerous transmute products for affluent guests, confections and pastries being the most signifi adviset, but chocolate allow al meanss be a stable product so it is a medium level threat. To debate in such a intriguing industry Parkland needs to amend the companys packaging and its merchandising campaign. New packing is an ideal way to begin because it demonstrates the changes that will be taking place in following days without compromising the companys hereditary pattern or corporate cultu re. Charles current merchandising strategy strongly targets the local residential area which it already has a strong comportment in.Charles needs to increase its marketing to the tourist community. The advertisements should follow industry trends for use of ethically responsible ingredients to produce the highest quality chocolates. In order to attract and keep the new, non-local, customer base Parkland needs to increase Charles online presences and sales channels.This is a low risk, low cost opportunity with the potential for expectant proceeds in new geographic areas. If Parkland wants to achieve the aggressive growth that the board desires his ability to improve the capabilities and the operations of the company will be iodin of his greatest barriers. Due to the affluent nature of the customers and the possible variety in the product Parkland should focussing on amend the companys organizational capabilities. A new plant will in conclusion be needed but that decision ca n be delayed if Charles can streamline its operations.Parkland needs to prove policies that will measure productivity and progress an accurate method of forecasting sales. This will result in lower broth carrying costs, less out of stock issues, and fewer backorders that need to be filled. If Charles can cut back the number of back orders and out-of-stock products it can focus on a single product line at a meter which will reduce the frequency of high-priced switching costs.There are galore(postnominal) another(prenominal) growth opportunities that Parkland whitethorn pursue in the future. He may wish to grow the Sandwich promised land segment of the business, growing the corporate connections of the company, and expanding into other physical locations in the states. These are all viable options for the future but the ones listed supra are the best for Charles current situation. By improving packaging, marketing, online sales, and internal organizational capabilities the company can grow significantly without large changes to the tradition of the company and without taking on too much additional risk.