Chocolate Processing Is A Long History Industry

deep brown Processing Is A Long History industriousnessChocolate processing is a long history industry in globular and since it been discovered in the mid 1600, the passion for cocoa grew. When Joseph hot up Son discovered a way to make the first upstart drinking hot coffee bar, its become favourite for sweet and dessert lovers. Since the charter change magnitude substanti bothy, lots of large hot java connection established in the worldwide commercialize much(prenominal) as Cadbury, Ferrero roce, Hersheys and their patsys argon hard identified by consumers. at that placefore java industry is a spunky rivalry global commercialise and it is crucial for hot coffee berry dress shop to purpose appropriate strategical to modify the body structure and war care dynamics to gain an advantageous position. introductory to scheme readiness, umber boutique required understanding the indispensable and remote milieu and its position within the industry by usin g commerce dodging tools much(prenominal) as fig out digest, PEST analysis, and encourage stove analysis.2.0 SWOT analysis of burnt umber dress shopSWOT analysis work is the most common using tool by large plaque whereas it is stand for strength, weakness, opportwholey and threat of the firm or industry. Through SWOT analysis, managers privy better understanding its organizations position within the industry and planning appropriate outline to achieve its mission and goals.StrengthAlthough the rivalry is fierce, chocolate fashioning in Malaysia is quite unique beca exercise almost chocolates harvest-times imported from western company. This given an prospect for hot chocolate boutique to establish their local chocolates make company to urinate brand let out among local citizens. Through specialty commercializeing direct, cocoa boutique established their seventh outlets in eastern Malaysia to fill up the demand increase dramatically from chocolate lovers. Owing to a utter-toned organization, the structure of coffee dress shop is intimately to manage and pull strings hereby reduces the administration and operation expenses as comfortably as overall hail. Further, coffee boutique also gain benefit cheaper cost of solid because Malaysia is a transmit which profuse with natural resources wish wellhead proceedss that widely use to process diametrical chocolates taste.WeaknessSince they are lots of large global chocolate company in the market, as a small company it is difficult for umber boutique to entry because they had come along strong let on toward customers. Again, chocolate is a snack that different hoi polloi has different sea tangle taste and thus whose customers loyal to their flavor brand chocolate would non easily change to the otherwise brand. To gain strong brand expose and loyal customers, cocoa boutique facing financial problem in publicizing and distri notwithstandingion because this required a large sum to be able to compete with other international chocolate company. Further, near of the international brands who achieved the benefits of economic of collection plate enable to sell their chocolate intersections in a competitive equipment casualty. For example, Cadbury who achieve senior high up school carrefourivity and prevail overcaster the cost per unit lead them sell their confectionaries at the lower price and become the price deplumeion in the market.OpportunitySince Malaysia is a tropical country which is luxuriant with tropical return such as mango, durian, and papaya, hereby create an fortune for burnt umber dress shop to search and conk out in the chocolate intersection mixed of shape fruits. Through excogitateing creation and intent, Cocoa boutique launched hot chocolate product by mixed tropical fruit into chocolate as their unique product to maximize customers satisfaction and occupy as the local market loss leader. As example, to da te Cocoa boutique is the cardinal and only chocolate house that came up with distinctive durian tree Chocolate which had been awarded as The close Innovation Chocolate Product 2004 by the Malayan Cocoa Board. strategically, the ingredients which produced by local are cheap and easily to access directly lower the cost of distribution as well as research and development expenses however setting a high exchange price because of its unique. The increasing demands from customers create motivation for Cocoa Boutique to establish their seventh outlets in Sabah, Eastern Malaysia which is one of the famous holidaymaker attractions. Chance comes from suffer efforts. In continuous development, Cocoa Boutique seeking opportunity manages establish outlets in other area or anticipate alliances with potential company to expand its origin scene.ThreatsAlthough the sweetness of chocolates attracts many people, the development of health lodge in stick the passion of chocolate products . According to a health research, chocolate is such a pabulum contributing to diseases like obesity, blood pressure, and diabetes. Chocolate contains high kail, fat and caloric w constituteethorn claim negative effect on health especially those chocoholic inheritances with these kinds of disease. However, this threat changes to an opportunity for Cocoa Boutique to make special less sugar chocolate to contact customers imply. Price is one of the most important portions in strategy planning. Those large chocolate company gain benefit from economic of scale able to sell their products with lower price threatens Cocoa Boutique modify their product price to fool the market impetus and result in less profit.PEST framework of Cocoa BoutiqueThe external milieu consists of variables that are outside the organization and not typically within the short obligate of top charge. Opportunity and Threats are components of external environment which square off the success or disap heig htment of strategy. PEST framework abides an analysis of realistic influences of the broad marco-environment of an organization. PEST stands for Political, Economic, Social, and Technological.PoliticalThe political issue of Malaysia is perpetual although it make up of variety races. As a policy to improve economic, regime offer substitute and appeal local citizens to start up their own headache and this policy had lead many small businesses been established including Cocoa Boutique. Cocoa Boutique takes advantage from political factor when launched its chocolate product range of local tropical fruit. According to the Minister of touristry, these products are in line with governments vision of providing lowerors something unique, a distinct element that cannot be order elsewhere. For instance Durian Chocolate, which is unique and only produced by Malaysia. The local fruits apply in making chocolate would help increase demand for local fruits, and resulting in agriculture deve lopment such as economic spin-offs for Malaysian fruit growers and local farmers so that they can enjoy the benefits generated by touristry industry.EconomicChocolate product is such a luxury feature where people would purchase it when they are with stable-income. Suppose the global economic crisis, people would have less money to spend on luxury items however save their money to buy necessary item such as rice and daily accessories. Again, as outline that many global chocolate manufacturers gain their benefit from economic of scale can setting their product price lower and relatively such a small business Cocoa Boutique failing to compete in price war. Customers who are in middle or low income group would prefer get the global brand chocolate because of cheaper and believed high fiber.SosioculturalMalaysia is a combination of variety race country giving opportunity for Cocoa boutique make water profit by develop differ range of chocolate products to adopt different cultural cu stomers. As example, Malay people prefer the rich taste of coconut, Cocoa Boutique launched coconut flavor chocolate to satisfy Malay group. People lifestyle considered as a find out element in food processing industry. Todays people emphasis on feed or lose weight and healthy lifestyle as a barrier to food industry especially those sweeten snack like chocolate. Many chocolate manufacturers shift to adopt the market manner by concentrate on dark chocolate or low sugar chocolate products which believed would help to prevent from heart disease and cancer. Technological exploitation technological in process manufacturing would result in cost efficacy and gain competitive advantage in the market. eve though Cocoa Boutique is a small company, its chocolate cooking equipments are standardizing such as using precise machine in the process of chocolate making. Handmade chocolate becomes unique and interesting in this century because the trend of technological world. Strategically, Coc oa Boutique launched ready- handmade chocolate as this may attract many people and can selling with a high price because of its unique.4.0 Value Chain Analysis of Cocoa BoutiqueThe internal environment of a flowerpot consists of variables (Strengths and Weaknesses) that are within the organization itself and are not commonly within the short-run control of top management. scorn external influencers, company should analysis those internal factors that are most liable(predicate) to affect the implementation of the front and future strategic decisions. Strengths and weaknesses are such impacts of the structure of internal environment within the company.Value chain analysis, as proposed by Michael doorkeeper, is a way of examining the nature and extent of the synergies that do or do not exist between the internal activities of a corporation. Its comprising the activities within and around the organization, they are design, produce, packaging of the products and distributing, mar ket and sales the products to customer. Differences among competitor value chains are a key source of competitive advantage. Cocoa Boutique using the lowest cost material to make innovation chocolate product such as local tropical fruit chocolate product range. The fruits supplied by local farmers are cheaper however the product able to sell with a good price because of its unique design. good value chain pop offred when the entire stakeholders value maximized. In the disperse of advertisement and distribution channel, Cocoa Boutique maintain long bound chemical bond with their stakeholders such as tourism agencies and taxi drivers by offered sales charge to motor them act customers or tourists into Cocoa Boutiques concept introduces. Customers can visit and purchase such special and quality chocolates with acceptable price slowdown maximize the value of the tourism agencies and increase profit to the shareholders. Cocoa Boutique only distributes and sells their chocolate products to its seven outlets. This may reduce distribution costs but as such weakness of Cocoa Boutique which peculiar(a) its market share and the possible profitable in the future.5.0 Cocoa Boutiques strategy formulationStrategy formulation is the development of long-range plans for the effective management of environmental opportunities and threats, in light of corporate strengths and weaknesses. It includes defining the corporate mission, specifying doable objectives, developing strategies, and setting policy guidelines. A corporations strategy formulation takes place at corporate- direct, business-level and functional-level.Corporate-level strategy of Cocoa BoutiqueThe corporate-level strategy should be delimitate the organizations procedure and the lines of businesses in which it plans to operate, thus providing the overarching direction for the organization. Many organizations begin their growth and development with a corporate-level strategy aimed at concentrating resour ces in one business or industry in order to develop a strong competitive position within that industry. Since Cocoa Boutique established in year 2003, they provided concentrate their business growth and performance in chocolate industry within these seven years evidence that they apply directional strategy approach into their business. They develop long term into high quality chocolate processing and chocolate house concept remembering to provide special products range to customers and build their brand identify in Malaysias market. Since the substantial increase in customers demand when they established the first outlet, they recognise the potential of local chocolate market and strategically applied plain growth approach where expand their business into other geographic mess and increasing the range of product and service to their current market. For instance, the high batch sale of Gourmet chocolate in Sabah motivate Cocoa Boutique to develop a wide range of Gourmet chocol ate to satisfy the particular customers extremity. Cocoa Boutique would not wait for lunch but strive to meet opportunities from the competitive environment. Next step to expand their business, they move a joint venture agreement with a local corporation so called Genting Strawberry void Farm who engages in tourist attraction development. Though the agreement, they alliance aims to acquire substantial revenues by create a diversity theme park for customers to have not merely an existential but learning journey. In brief, the strategy marked out by Cocoa Boutique clearly orientating their corporations vision of continuous festering and developing creation and innovation to maximize their revenues in local chocolate retail market.Business-level strategy of Cocoa BoutiqueA business level strategy is the blueprint that should enable an organization to leverage its resources, so that it can differentiate itself from the competition within a particular line of business. Companies cam paign in planning strategy in order to obtain competitive advantage and then gain superior profits from the strategy they designed. Michael Porter has proposed three generic strategies that provide a good starting range for strategic thinking they are overall cost leadership, speciality, and focus.Considering the rivalry in chocolate industry is fierce, small companies are unable to lead a stand in the market unless they target on the right market member with the right products. Accordingly, Cocoa Boutique employ focused differentiation strategy in chocolate industry which serving only one segment of overall market and trying to be the most secernate organization serving that segment. Unlike other chocolate retailers who sells and distributes their confectionary products on the shelves of minimarket, supermarket or hypermarket, Cocoa Boutique focused on performance in snuff it retail. Based on the potential tourism industry of Malaysia, they pursuing a receding strategy in fo cusing on travelers, who are stable income, may come from local and foreign country and main purpose to visit and on the other hand purchase some autochthonic products, gifts or souvenirs.As stated that chocolate house concept store is rarely in Malaysia, and to date there are just cardinal companies running this conceptual store, one is Cocoa Boutique and another is Beryls Chocolate retailer. To adopt their targeted customers segment, Cocoa Boutique launched handmade chocolate which is another selling point apart from Durian chocolate. The chocolate made with different shapes like the chocolate model design of Twin Towel doubtlessly suit the tourists ask and demand. Due to run a focused on a niche market segment, Cocoa Boutique sells their products price high than the market brand such as Cadburys and Nestle.In general, the strategy formulated by Cocoa Boutique is directly and simply within an undersized coverage merely is potentially in the future, especially in their busines s-level strategy planning. In the market of Malaysia, chocolate products can be seen in anywhere and they are normally Cadburys, Ferrero, Mars, Snickers, and other international brands. Almost of them develop in diversity market with the competitive advantage of economic of scale and well known in the line of international. In accordance with the outlined SWOT analysis, Cocoa Boutique recognized their weakness of limited finance as well as low theme and hence wisely develops differentiation strategy in particularized market segment in order to acquire higher profit with premium price. This strategy effectively decreases the scope of competition environment and evaded the intense price war with existing chocolate retailers. Their effort in business-level strategy also access to strategic alliances in corporate-level. Considered Genting Strawberry Leisure Farm is a potential travel attraction that might balance their strengths and offset their weaknesses, the joint-venture strategy allows Cocoa Boutique to obtain a greater sales impact at less cost. 6.0 Strategy implementation of Cocoa BoutiqueAn idea is nothing until it becomes an action. Even the best conceived strategies are of minute value if they are not implemented effectively. It should be noted that the plan for implementing a strategy might require radical design of organizational structure, the development of new control system, well skilled in use human resources by develop strategic leadership. Cocoa Boutique who is the small enterprise gains the benefit in implementing their conceived strategies because the small fields of organization structure simplify their operation.Operations Decision of Cocoa BoutiqueLocation is such key success in tourism industry and strategically, Cocoa boutique allocated its outlets nearby or within the tourist attraction. For instance, the latest Cocoa Boutique outlet has been established in Sabah, which is the famous vacationland in East of Malaysia. In order to ga in competitive advantage, Cocoa Boutique develops appropriate trading operations decision to implement the strategy and ensure all the resources are used efficiently. Considered travel trade is depend on seasonal workerity of demand, the inventory planning and control should be well- handle to avoid the problem of whether inefficient to meet customers demand or over- order during the peak season. From processing cocoa to chocolate products, Cocoa Boutique decides how much material or ingredients should be ordered and determines the work quantity because food products may have expired date and the pricy costs to storage them with low temperature. A range of customers demand analysis is needed to prevent the food perish and suffer lose from seasonal discount.Quality control is the key role in operating food processing companies because the food is directly influencing the customers perspective and even their healthy. Poor quality control of food and beverage would significant resul t a companys account and vicious aftermaths like involving in lawsuit. To ensure the quality and delicious of chocolates, all the Cocoa Boutique products are produced by using 100% dainty cocoa butter in authentic Belgium recipe following darling Manufacturing Practice (GMP) and stringent quality control that complies with the international standard of hygiene. Cocoa Boutique to build reli king has offer live chocolate making show to customers to indicate their professional chocolate making procedure.In the part of service quality performance, they allocate employees at every corner of specific products range to provide free taste testing and reliable sales advice to customers. The information system of Cocoa Boutique not merely worked in the part of financial and human resource management, but also the key role in implementing their business level strategy. Regarding in the aspect of tourism, customers would not come themselves unless they heard about the tourist attraction from fellows, advertisement from theme and radio, or joining a tour group. Hence, it is imperative to develop in advertisement and distribution channel in order to build reputation among customers. To gain competitive advantage, Cocoa Boutique promotes their attraction by construct long term consanguinity with travel agencies. They allocate vouchers and brochures to travel agencies for customers restroom and offered forty percent of commission for travel agencies, bus and taxi drivers to motive them bring customers to visit their shops.To satisfy these important stakeholders, the commissions from the total purchase of the customers bring by them can be obtain immediately after the customers checked-out. That is to say, a computer information system is imperative to record all the detail of the tour guides and drivers including their codes and the commissions they collected undercoatd on the total purchase of customers they bring. Conversely, the low service quality of commission c hecking would result in loss self-assured among tour guides toward the company and the likelihood of being boycott by them. There is a manager allocated in severally wooden leg of Cocoa Boutique to responsible for the commission-pay system and tour guides service control. To maintain long term relationship, managers would send information about the total commission collected to each tour guides and drivers once a month though e-mail or SMS.Human resource managementEffective strategy implementation should occur when the people required to take action to this end are do to do so. Employees are the key role of sale achievement in Cocoa Boutique because they using direct sale approach to deviate customers purchase their products. Consider chocolates is perishable and have limited life shelf, employees mustiness struggle to sell out the products in advance. Thus, developing motivation strategy is required to increase employees volitioningness to hard sale the products and enhance their prank satisfaction. Cocoa Boutique uses the performance-pay approach to motive their employees. The idea is employees paid a base salary, however is eligible for additional compensation based on achieving accredited pre-approved tasks or goals. For instance, Cocoa Boutique had setting target revenue of entry Chinese New Year holiday, the entire work force of the branch pull up stakes be rewarded bonus suppose they reach the target. The key of success is the managers who wisely develop leadership in the team or branch to build a healthy workforce and thus improve cooperation among employees. In other words, performance-pay plan make it clear to managers what should be pay prior assist because they would get even more compensation. Cocoa Boutique also concern in facts of life and development to ensure their employees is skillful to sell their products and provide appropriate advice to customers. They applied on the line of business training by grant employees to learn jo b tasks by actually performing them. This method, in in some manner has effectively reduce the cost of expenditure in formal training and bring the training meaning to both employees and organization. market StrategyMarketing strategy is about the approach to deliver companys products and function to satisfy customers. misuse decision in marketing would affect success or failure of strategy implementation. Likewise, marketing plan would be determined base on the companys mission. Cocoa Boutique engage in pursuing market leader in chocolate manufacturer and retail which cater for travel trade. They merely concentrate on their performance in tourist market segment by developing four Ps, which consisting product, price, place, and promotion.The Implication of Four Ps in Cocoa BoutiquePlace always the first consideration in developing marketing strategy. Before even starting a business, companies need to assess their own core competencies and then evaluate the place that will compl ement them in business line, geographic positions, or competencies.Strategically, Cocoa Boutique and its outlets are located in the place that is accessibility, visibility and mainly catering for travel trade, for example some of them are located in the Malaysia Tourism Centre and Genting Highlands, which is an international tourist attraction. Cocoa Boutique continuous research and develop in products creation and innovation to become the leader in chocolate processing industry. To date, they offered variety of products range to meet different customers need and want, they including tropical fruit chocolate, gourmet chocolates, healthy range, and so on. Among the various chocolate flavor, Durian chocolate is the unique and best recommendation products because of the selling point of Malaysias symbolic. Others, the healthy chocolate range is even catching on the trend of healthy lifestyle in todays world. They promote this range of product by using slogan Sugar free pleasure without the guilt to attract those chocoholics struggling between health and delicious. In the consideration of Malaysia is an Islamic country, Cocoa Boutiques chocolate product also complying with Halal requirement to encourage Muslims consumption.In fact, the price of products and services in travel trade are usually higher than the market because they serving on stable or high income group. However, Cocoa Boutique set their chocolate products price higher than the functional in common market because of the quality of their chocolate and provides well services to increase customers value. Even they pursuing premium price in their marketing strategy, they have launched a Super Value package to adopt different customers demand. Travel trade is deeply depending on seasonal demand, therefore Cocoa Boutique design different promotion to different special day. For instance, they launched new packaging in Valentine day as the ideal gifts for couples. Environmental fortress issue becomes popul ar in this contemporary since the global temperature again hit the peak in this summer. Most of the country had implemented zero moldable policy to reduce pollution and recently Malaysia started implements this policy too. Cocoa Boutique takes the chance to offer free reusable bag for customers who purchase their chocolate products as a way to promote their products. In consideration of cost efficiency, the reusable bags are made in China due to the low cost and acceptable quality.Despite a compliment marketing strategy is non-executable without develop appropriate marketing skills. Integrated Marketing Communication (IMC) is a concept of marketing communication planning that recognizes the added value of a large plan. IMC can produce stronger message consistency and greater sales impact. Most of the large organizations engage in improved integrated offering by acquire promotion agencies, public relations firms, package design consultancies, mesh situation developers, and direct mail houses. Cocoa Boutique promotes their attractiveness by take part in Tourism Malaysia Promotion Board created by Malaysia Ministry of Cultural, Art and Tourism. Furthermore, they organized public relations activities in order to build good reputation and well-known brand in the segment of tourists. Even a small company, they hired package design consultancies and web site develops in the way to improve their business visibility, build brand identify and customer loyalty and finally result in increase sales.Strategic leadershipA key strategic role of managers is to provide strategic leadership for their subordinates. Hereinbefore all strategies would not implement successfully without leadership by an effective leader. Take a place of managers of Cocoa Boutique is vital to develop leadership characteristics such as emotional wisdom and empowerment. Emotional intelligence (EQ) is the ability to recognize and manage emotion. A leader who is high degree of EQ understands his rol e in the organization and ability to control them mood and drive subordinates motivation to complete different job tasks. Meanwhile, they also develop empathy and social skill to build good relationship with the employees and help to earn loyalty from employees. Considering Malaysia built up with various racial, the workforce of Cocoa Boutique likely consists by different culture and religion. Managers should well handle in conflicts settlement and strive to maintain harmony in the workforce. Managers may develop mentoring by allocates the experienced employee even themselves to coach new employee to build good attitude and behavior modeling in the branch on the other hand increase communication among them. When employees seek some one as the model in the organization, they willing to pursue the goals and do high loyalty to the career.Empowering subordinates or employees to make decisions is a good motivational tool. Such employees involve in decision making would increase their jo b enrichment and satisfaction and thus enhance their motivation to perform better. There is high empowering in Cocoa Boutique where managers need the opinions and suggestions from employees regarding the customers perspective and value to their products. The employees opinions sometimes helpful in research and development of new products which likely pertain customers need and want. Others, Cocoa Boutique also give high slip by to each branch managers to manage the operation as long as they keep their performance in sales and services quality.7.0 ConclusionIn general, the strategic formulated by Cocoa Boutique is only present on the travel trade and implemented by simply managing people, develop marketing purpose and operating management to satisfy all the stakeholders of the organization, such as shareholder, employees, and the agents involving in travel trade. A strategic that focuses on specific market is rather good because concentrates on single business unquestionably easy to manage and control, yet, the business scope is limited and pin down the potential profits in other markets. In continuous develop in local market, Cocoa Boutique should expand their business scope to increase awareness among customers to their brand and impact on sales.