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Comprehensive Strategic Analysis of Real Chocolate - Case Study Example

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The real chocolate company case presents a company that specializes in the production of gourmet chocolate. The gourmet chocolate segment is 10% of overall chocolate sales which stood at $1.3billion in 2005 with the segment expected to heat $1.8billion by 2010…
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Comprehensive Strategic Case Analysis of Real Chocolate
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Download file to see previous pages The company is noted for its perfection in hand made gourmet chocolate made from finest quality ingredients with no artificial preservatives added. This paper presents a strategic analysis of the case real chocolate company using some analytical tools such as the PESTLE framework, Porter's five forces and competitive advantage etc. The paper is structured as follows, in part one using the PESTLE framework the paper analyses the environment in which the company is operating based on the case, the Five forces framework of Porter also help us to beef our analysis. Part two of the paper carries out an internal analysis of the real chocolate company, by using basic financial ratios, the SWOT matrix, to identify its competitive advantage and resources capabilities while part three of the paper now uses Porters generic strategy and the TOWS matrix. In the concluding part of the paper, using the balance scorecard some recommendation are made.
PESTEL framework is used here because the analysis is concerned with the Macro-environmental influences which can better be analysed by use of the PESTEL framework. Johnson et al (2006) states that the PESTEL framework is a framework that can be used to categorise the factors that influence the business environment of an organisation into six main types including: Political Influences, Economic influences, Technological influences, Social Influences, Environmental influences, and Legal influences. (See appendix 1).
The political environment of the United States was unstable following the period of the case with the then Republican government loosing popularity because of the war in Iraq the tooth for tat with Iran, its neglect of Russian on key international issues. The situation was further made worst by its war for peace captioned "war against terror". Thus, at the time of the case, the poor political climate of the States must have affected the operations of real chocolate company international expansion. In 2006, the political situation of the countries was the beans are grown affected production negatively. Economic factors that affected real chocolate companies from the case, prices vary due to monetary fluctuations, raw materials are sources from other countries, the trade between US and Canada were the stores are based are liable to exchange rate fluctuations. Social factors include growth in population. It was reported in June 2006, that the black pod, frosty pod, and witches' broom diseases could adversely affect the cacao beans if these plant diseases are not controlled. Obesity is becoming a major concern in the USA. In 1986, the Centers for Disease Control reported that just eight states had 10 to 14 percent of the residents obese.
Technological factor offers real chocolate company an opportunity of automated production without affecting ...Download file to see next pagesRead More
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