Introduction
This case revolves around a start-up company, Aztek Chocolate, based in Manitoba. The owner of the company is faced with a difficulty of how to book-keep the financials of the company. The sale of the company has started to flow-in, and the owner has to come-up with the best decision of book-keeping for his company.
In this report, different alternatives are evaluated, and considering the situation of the company, its strengths and weaknesses, opportunities and threats and external factors, the best alternative is recommended to the company.
Problem Statement
The problem lies with the book-keeping of the financial data and transactions. The owner of the company has to make a decision regarding the selection of the accounting system.
Analysis
SWOT Analysis
| Strengths | Weaknesses |
| · Sales have started to flow-in.
· The projected income statement shows a positive and good profit at the end of the year. · The chocolate industry is expected to grow. · Affordable prices. |
· Start-up company.
· No accounting system for book-keeping of financial data. |
| Opportunities | Threats |
| · The company has started and has a number of opportunities regarding growth in its product line.
· The company can also growin terms of setting-up more kitchens in different areas. |
· The company faces major threat from big chocolate manufacturers like Nestle, Hershey’s.
· Increased taxes on confectionary items. · |
Aztek Chocolate Studio Harvard Case Solution & Analysis
Porter’s Five Forces Model
Buying Power of Buyers
Buying power of the customers is high because of the following reasons.
- They have a number of options available because of the presence of a number of substitutes in the market.
- The cost of switching is very low.
Buying Power of Suppliers
The company is just a start-up, thus, the buying power of suppliers is also high as it cannot demand any special rates from them. The cost of switching for the suppliers is also low. Though there are a number of suppliers present in the market, but overall, the buying power of suppliers for Aztek Chocolate is high.
Threat of New Entrants
The threat of new entrants in the respective industry for Aztek Chocolate is moderate because of the following reasons.
- Capital requirement for start-up is a strong force.
- Low cost of switching for customers is a moderate force.
- Established brand equity is a low force.
Rivalry among Competitors
Rivalry among competitors is a strong force because of the following reasons.
- Many competitors of different sizes are present in the market.
- The barrier to exit is high.
Threat of Substitution
The threat of substitution is also high because of the following reasons.
- Switching cost is high.
- Availability of substitute products is also high.
- Competition is fierce.
- It can also be replaced by other kinds of sweets and gifts.
PEST Analysis
Political Factors
- The imposition of tax is a factor that can affect many decisions regarding any investment.
- Increase in chocolate prices globally.
Economic Factors
- Inflation and deflation can affect the sales.
- Focus of government on waste management.
- Focus of government on conservation of energy.
- Increase in interest rates............
This is just a sample partical work. Please place the order on the website to get your own originally done case solution.
Related Case Solutions & Analyses:
Gerry Pasciucco at AIG Financial Products (A)
SANY: Going Global
Once more with Feeling: Empathy and Technology in Customer Care
Valuation of Late-Stage Companies and Buyouts
The IASB at a Crossroads: The Future of International Financial Reporting Standards
Mario Laborin and the Turnaround of Mexicos Nacional Financiera (A)
Selling Biovail Short
Intel Commercials Video
Northern Forest (F): Policy Alternatives
