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Factors Affecting Real Chocolate Company's Business - Case Study Example

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The study “Factors Affecting Real Chocolate Company’s Business” based on the TOWS matrix, Porter’s Five Forces, PESTEL ’s and VRIO analysis, predicts the brand’s successful development due to its good reputation, a wide range of products and modern equipment, but reminds about the rivals' threats…
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Factors Affecting Real Chocolate Companys Business
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Download file to see previous pages This paper is useful for the Real Chocolate company to evaluate it’s present market value & conditions and also to plan for the next action to be taken for elimination of weaknesses. 
The Real Chocolate Company’s current strategic position, products or services, markets, key stakeholders & strategic purpose (mission & vision /strategic intent):
Real Chocolate Company, a company involved in chocolates & confectionery product manufacturing & distribution lead by Sarah Smith of Kingston, Colorado as it’s CEO. The company has reported $1.3 billion sales profit for the fiscal year 2005 in one of the most dynamically growing segment of gourmet chocolate products contributing 10% in total chocolate business profit, estimating a subsequent growth rate of 6.4 percent in sales to $1.8 billion in the fiscal year 2010. The increase in revenue by 12% & 9% through company’s owned stores & franchisee till the next fiscal year 2007, B.Masters, Chief Accountant estimates. The company offers around 300 different varieties of chocolates & confectionery products apart from the additional seasonal varieties of around 100 types. Their key stakeholders are working on new ideas to offer best quality products & services by opting proven strategic approaches for quality assurance (on company’s product as well as environment perspective) & models to proceed with systematic plans supported with analytical solutions for future growth with special considerations to ensure the usage of natural & healthy ingredients.
Major threats and opportunities confronting The Real Chocolate Company constituting its external business environment are evaluated through PESTAL framework (Appendix – 1). The framework exposes the main threats & opportunities in various categories classified in economic, market & competition, political, product & technology, demographic & social business environments.
The review indicates that Real Chocolate Company has many competitors as new joiners & the existing competent leaders in the confectionery market are resulting in the increase of threats, moreover it also has some threats on political grounds from NCA regarding compliance of laws & acts on labeling, consumer protection & education acts. The company could face the problems due to uncertainty in commodity market fluctuations in their prices. ...Download file to see next pagesRead More
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