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Report on Cheney Chocolate.

Extracts from this document...

Introduction

REPORT ON CHENEY CHOCOLATE EXECUTIVE SUMMARY The UK chocolate confectionary is increasing year on year. This is mainly to do with the eating habits of the nation, and the desire to snack. Peoples life style have also changed over the past 20 years with busier and stressful days, people don't have the time and energy to cook a proper meal anymore. Another reason why the chocolate confectionary market is increasing is the way companies market there products to appeal to kids. Child appeal is another key driver of the market and companies realised this by adding novelty items. The busiest time for UK chocolate manufactures are around seasonal times. Easter, Christmas etc, can be small businesses 'bread and butter' times and they need to make sure they have adequate resources available around this time. The main buyers of Chocolate are 15-34 year olds with 27.4%, and 65+ with 15.6%. Also both of these segments are predicted to increase until the year 2004. The structure of the Chocolate confectionary market is extremely complex with a wide variety of segments offered to the customer. Some are performing better than others with premium luxury chocolate and twisted wrapper increasing, and the middle ground falling away somewhat. Even though there is chance for the small chocolate manufacture the market is dominated by many multinational organisations, like Nestle, Mars, and Cadbury etc. These companies own the majority of the market share and are hard to compete with on innovation etc. Summary of the recommendations for Cheney Chocolate: * Appoint Anne Cheney to Managing Director in a couple of year's time when she has gained more experience. ...read more.

Middle

(Mintel boxed chocolate 2000) * Invest in innovation: Winning firms are those that recognise the possibilities presented by new ideas and apply them both quickly and in imaginative ways. (Naylor 1999). If Cheney Chocolate wants to expand it will have to come up with some ideas to captivate the market. * Form alliances with other small chocolate manufactures within the region: This could benefit Cheney Chocolate because they could share ideas, markets, etc. * High valuation price: It gives the company the possibility of moving to a different location. 2.3.2 Threats: The threats for a small chocolate manufacture are: - * The threat of being wiped out of the market by larger multinational company: There is always the possibility of the larger multinational companies forming an alliance to gain enough market share between them to force out the smaller businesses. * The public becoming health conscious. Because the public are aware of the high levels of fat and sugar content within chocolate. 3. Internal Analysis 3.1 Organisational Structure: The organisation structure within Cheney chocolate is set out in functional form. Cheney Chocolate's organisational Structure: Richard Cheney Managing Director James Long Business Administrator Anne Cheney Cecile Cheney Operations Director Marketing Director Pierre Herroux Chocolatier Factory Staff Shop Staff (Cheney Chocolate Case Study) The structure of this organisation is relevant to a small chocolate company because it enhancing co-ordination between staff with similar skills (Naylor 1999). But still could be improved. Which I will explain further in my recommendation. 3.2 Financial Overview: Cheney Chocolate's performance over the past three years has been steady. Increasing slightly in the luxury market, but decreasing in unbranded fudge. ...read more.

Conclusion

433.94 96 3,053 94 1994 492.8 97 446.58 98 3,210 99 1995 506.3 100 454.17 100 3,248 100 1996 519.8 103 470.62 104 3,528 109 1997 539.3 107 488.94 108 3,496 111 1998 540 107 505.37 111 3,745 115 1999 553.5 109 519.52 114 3,750 115 2000 (proj) 569 112 537.2 118 3,795 117 6.3 This line graph shows the increased sales in luxury chocolates for Cheney Chocolate over the past few years. 6.4 This line graph shows that pre-tax profit has increased rapidly since 1998, and this is the market where Cheney chocolate has earned the majority of its profit. 6.5 This line graph clearly shows that after an increase in sales from 98-99, Cheney Chocolate lost sales within 99-00. This could have just been a bad year for Cheney Chocolate with its unbranded fudge, but its something that the company has to keep a close eye on in case of any sudden changes. 6.6 This line graph shows that the pre-tax profits of unbranded fudge has fallen each year since 1998, even though in 1999 the sales increased from 250,000 to 270,000. 6.7 The Line chart below shows that the total sales within Cheney Chocolate did increase in 1999, but decreased slightly in the year 2000. This could have just been a bad year but again it is something that Cheney Chocolate has to keep a close eye on before the problem gets out of control. 6.8 The curve on this line graph is very similar to the total sales for Cheney chocolate, increasing in 1999, and decreasing slightly in 2000. 6.9 I chose this bar chart to show appendix 6.3 - 6.8 on the same chart. To make it easier when analysising the financial history. 7. ...read more.

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