INTRODUCTION:

It is discussed in the following paper, the supply constraints that are faced by renowned chocolate manufacturing industry that operates in US and deals in the premium dark chocolate. The margin of the company is high in the production of premium chocolates. The company has production capacity issues, also its appropriate utilization issues were faced by the company. The processes that are involved in the manufacturing process consists of cleaning, roasting, winnower, melangeur, conche, and tempering/molding at the last. The company has produced high quality products and are eager to increase the production to fulfill the demand requirements that are increasing day by day, and in order to deal with the competitors and to meet the supply constraints , various actions have been taken by the company to improve the operations and retain the quality of their premium dark chocolate. In order to increase the capacity of the production, the company, with conche, has installed the new ball mill so that its inclusion has reduced the average time taken to bring the chocolates, in their required condition. Moreover, the ball mill isalso capable enough to enhance the product quality and decrease the average time required to manufacture a single unit. The number of kgs of the product has been increased by the application of new machine;furthermore, several steps have been taken by the management of the company to make the performance favorable, the steps including: increasing the shifts of various processes, replacement of machines that are old and incapable of numerous shifts operations. Outsourcing of some of the processes, of producing chocolate that are only added to cost of the company more than profits. Strategically, these changes have been made, and operated to change the production dynamics of the company in the coming few years.

Scharffen Berger Chocolate Maker Harvard Case Solution & Analysis

Introduction:

The case study revolves around a chocolate manufacturing company, Scharffen Berger i.e. a premium chocolate brand growing at a rapid ratein the United States, competing in an intense environment, the company wants to add to the manufacturing capacity to the production line and the necessary technological measures that are required to enhance the dynamics of the company. For that purpose the company is considering the demand trends, marketing requirement and possible impact on the quality of the product after that addition, company is also considering the best possible alternative strategy to increase the chocolate output in the long run. The analysis of the company’s current process’s scenarios, and the possible outcomes after the addition of the suitable plant the production and profitability changes that the company will face, will be discussed in the given paper.

Porter five-force analysis:

Bargaining power of buyers: the bargaining power is moderate, as there are no such premium substitutes available, but there are some substitutes in the market which buyers can easily switch. The similar kind of product can be offered at lower cost and there would be no switching cost that would be faced by buyers in order to change their brand..............

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