Rogers Chocolate
Introduction
Rogers’ Chocolate is on a mission to have the company double or triple its size within 10 years. An analysis will be performed to figure out a strategic plan where Rogers’ Chocolate will be able to grow, and maintain their image of providing premium chocolates. The issue facing Rogers’ Chocolate is how they will be able to gain new customers and sustain their current customers. To give a thorough analysis, I will identify and explain the strategic issue, present the results of the analysis, and present alternative strategies. Finally, I will present my recommendation and conclude the analysis.
Strategic Issue
The strategic issue facing Roger’s Chocolate is how to grow the company by being able to gain new customers and still maintain their current customer base. The objective of Rogers’ Chocolate is to double or triple the size of the company within 10 years. By growing, this means that they will need more production, more employees, and more customers. Rogers’ Chocolate will need a strategy that will help position them to be able to grow the way they want it to.
Analysis
After reviewing Rogers’ Chocolates finances, they are good shape and have improved from 2005 to 2006. This improvement shows opportunity for the company to reach its objective of growing. According to their balance sheet, their current ratio for 2006 is 1.366 (2,330,241/1,705,132) and 1.245 (2,896,842/2,326,966) for 2005. These numbers show that they are able to continue to pay off their obligations. This means they are in a position where they shouldn’t go bankrupt. It also shows that Rogers’ Chocolate are just efficient enough in the sense of turning their product into cash. The company’s cash available for next year, 2007, is $74,744. This is down from what they had at the beginning of the year, $151,802. This may hurt them when trying to invest into new areas. The external environment of Rogers’ Chocolate looks very promising. Godiva and Bernard Callebaut are the only
Rogers’ Chocolate is on a mission to have the company double or triple its size within 10 years. An analysis will be performed to figure out a strategic plan where Rogers’ Chocolate will be able to grow, and maintain their image of providing premium chocolates. The issue facing Rogers’ Chocolate is how they will be able to gain new customers and sustain their current customers. To give a thorough analysis, I will identify and explain the strategic issue, present the results of the analysis, and present alternative strategies. Finally, I will present my recommendation and conclude the analysis.
Strategic Issue
The strategic issue facing Roger’s Chocolate is how to grow the company by being able to gain new customers and still maintain their current customer base. The objective of Rogers’ Chocolate is to double or triple the size of the company within 10 years. By growing, this means that they will need more production, more employees, and more customers. Rogers’ Chocolate will need a strategy that will help position them to be able to grow the way they want it to.
Analysis
After reviewing Rogers’ Chocolates finances, they are good shape and have improved from 2005 to 2006. This improvement shows opportunity for the company to reach its objective of growing. According to their balance sheet, their current ratio for 2006 is 1.366 (2,330,241/1,705,132) and 1.245 (2,896,842/2,326,966) for 2005. These numbers show that they are able to continue to pay off their obligations. This means they are in a position where they shouldn’t go bankrupt. It also shows that Rogers’ Chocolate are just efficient enough in the sense of turning their product into cash. The company’s cash available for next year, 2007, is $74,744. This is down from what they had at the beginning of the year, $151,802. This may hurt them when trying to invest into new areas. The external environment of Rogers’ Chocolate looks very promising. Godiva and Bernard Callebaut are the only