BSBMKG608

TASK 1 - ORGANISATION OVERVIEW

Introduction

Cocoa delight is chain of gourmet dark chocolate stores which is situated in Melbourne. AT present
they own 15 stores all over Melbourne. Cocoa delight is famous for creating handmade dark
chocolate products because they use finest cocoa beans for all their products. According to case
study, in novation and creativity are two of the major assets of the Cocoa delight, through this they
are able to be strengthening their business process and thereby attain competitive advantage by
competing with the strong business giants that are present in Australia.

However, the company management indicates to review their organisation to accomplishment its
set goals and looking to activate next chapter in its developments.

Vision

Our vision is world Class Company within Australia producing large range of quality chocolate
to satisfy under met need in the national market.
Mission
 Encourage continuous improvement.
 Quality leader in chocolate industry of Australia.
 Trade fairly with local and international suppliers.
 Sustainable behaviour.
 Reduction in ecological footprints.
Purpose
 Daring and unconventional
 Creativity and innovation have always been our strength and
cornerstone of success.
 For stakeholder we are stewardship and adhering to professional and moral
standards of conduct in all that we do.
 For employee we encourage self-directed teams.

Values
 Fair trade practices at national and international level.
 Sustainability and high quality.
 Combination of innovation creativity and artisan expertise.
 Customer oriented management.
 Expansion and growth.

Strategic targets / directions

 To increase market share and become market leader in 3 years.
 To increase brand reorganisation by marketing.
 To create awareness of health benefits of dark chocolate.
 Provide chocolate of European quality.
 Double digit growth rate for each year.
Situation analysis
Situation analysis is defined as an analysis of the internal and external factors of a business. It clearly
identifies a business capabilities, customers, potential customers and business environment and
their impact on the company. A situation analysis is an essential business plan and should be review
periodically to ensure that it is current.
Situation analysis of cocoa delight consist of SWOT Analysis and PEST Analysis.

SWOT ANALYSIS

Strength Weakness
• Innovative and creative • Lack of brand awareness.
• Sustainability • Customers are not aware of
health benefits.
• Customer oriented
• Lack of online presence.
management
• European quality chocolate • Less male and child customer
base.
• Range of dark chocolate
• Regional and countryside areas Are
• Health benefits of dark not covered.
chocolate • Lower market budget.
• Meets specific dietary requirements
• Less outlets as compared to
• Easy customer access.
competitors.
• Lower price.

Opportunities Threats
 Unmet market demand of specific • International brands with huge
dietary requirements. market budget.
 Use of social media like • Narrow advertising campaign.
Facebook will increase • Brands wither wider
customer base. reorganisation like Green &
 Develop more loyal customers and black.
referral. • Market down.
 Promote Australian based fact.
 Increase market budget.

PEST ANALYSIS
 POLITICAL ECONOMICAL

The government is currently passing DISPOSABLE income has reduced due to rising
legislation that requires business to monitor INTEREST RATES this shortfall expected to be
and reduce their waste and energy using recovered in the long term, with wages
significant penalties are planned for business including expected to outstrip inflation rates
that do not comply with the new directives by2%. The unemployment levels are also
increasing and expected to climb steadily to 6%
in the coming year.

SOCIAL TECHNOLOGICAL

COCOA DELIGHT will try to capitalize on the Technology development with the broadband
social trends of consumers being more rollout across Australia has been delayed,
conscious, by promoting health benefits of Dark although the rollout is continuing and will be
chocolates and offer largest range of different completed in the next three years.
varieties of dark chocolate. Internet relating options are expanding and
most retailers are taking advantage of this
new technology.

Legal and Ethical Requirements for The Organisation

Establishing the public image of a company is a greatest factor of controlling the business. The
existence of business principles plays a significant role in maintaining strong interaction with the
stakeholders. Building strong connection with the stakeholders is the most significant principal of
Cocoa Delight. To satisfy this objective, the company is taking towards the code of conduct.
Providing high quality of customer service is also one of the main objectives of Cocoa delight s the
customers are the most valuable external stakeholders. There lies the significance of innovation and
creativity being initiated by them. The Cocoa Delight manufacturing chocolate in unique manner and
thereby serves the customers with excellent experience. Government is also a major external
stakeholder. Therefore, it is very important to compliance with government rules and regulations.
Government is looking at is having the country of manufacture clearly states on imported products
although at present the government is allowing the industries to self-regulate rather than pass laws.

Government focuses mostly on the environmental issues of waste management and energy
conservation. According to new law, they must find new ways to provide customers with what
they want, without the high electricity usage. Current marketing activities and impact on the
organisational strategy direction. The application of the strategic planning in busines is a result of
difficult managerial decisions that compromise good and less desirable course of action.
Strategic planning can be described as the process of organising the managerial method of a
company that supports in analysing the existing situation. Strategic direction is the way that
upper level of the company discovers the most valuable resources and set them to obtain
competitive like cocoa delight to focus on their current marketing objectives and undertake
positive action with the intervention of strengthening their marketing activities.
The fundamental aim of Cocoa delight is to become the national retail brand within five years by
providing the customers with unique services”. With the support of strong strategic planning, the
company has become able to increase their marketing activities which way to increase the
establishment the public image.
Sustainable growth in both store and sales is the biggest achievement of Cocoa delight. The rate
of gross profit should be 63%. Still, the intensity of competition in the Australia food and
beverage industry is rapidly increasing; it is becoming quite difficult for the companies like Cocoa
Delight to increase the statistics of profit.
Expanding sales and running business in cost effective manner are two of the most significant
issues, which are creating barrier for Cocoa delight to accelerate their rate of profitability. Still, to
expand their marketing activity, radio advertising strategy has been introduced for them. This is
the medium of reaching to wide range of customers. At the same time, they have also made
considerable investment in the direct and PR marketing, which are also critical factors in reaching
to a potential base of customers. The inclusion of radio advertising strategy has played a
significant role for Cocoa Delights to promote growth in their sales result.

Evaluate the effectiveness

PERFORMANCE AGAINST SET OBJECTIVES

• Store growth and sales growth rate are achieved.
• Gross profit margins achieved are 45% against 63% set objectives.
• PR marketing performed better than expectation.
• 58% People in target market recognise Cocoa delight brand

CRITICAL SUCCESS FACTORS

• Advertisement using internet, Tv.
• Creativity and innovation.
• Professional and moral standards of conduct.
• Ability to obtain finest quality of cocoa beans at best price.

Areas for improvement and lessons learned

• To reduce budget in radio advertisement.
• Social trend of eating chocolate is increasing at a rate greater than expected.

TASK 2 - VIABILITY REPORT

COST AND BENEFIT ANALYSIS

Cost and benefit analysis is use analysis the decision which affect in business process. it is very
important to analysis cost and benefit before deciding regarding the company. Coca delight is
planning to open more than 100 stores in all over Australia. Accomplish this strategy, the Cocoa
Delight aims to launch program and collaborate with Haigh’s Chocolates.
Haigh’s chocolate is medium size company with few stores per city. They have medium to high
quality product which sell in mid ranged price. Association with Haigh’s Chocolates will act as a
greater opportunity for Cocoa Delights to increase a greater number of customers and Haigh’s
already have knowledge of market in their capital cities.
Extensive advertisement and considerable price of products is the greatest strength. Haigh’s sell
chocolates at mid ranged prices, so customer could enjoy greater access to all the product groups,
including the cheaper range of chocolate.
At the same time collaboration with HAIGH’S chocolates will also help Cocoa Delights to access low-
cost media to advertisement their products and thereby create brand awareness among the
customers. As Haigh’s chocolates is running business for several years. Therefore, the company has
in-depth knowledge regarding the market of three different capital cities. This can help Cocoa
delights to access those markets by exploring the buying pattern along with the fundamental
requirements of customers.
Haigh’s chocolates, Cocoa delights ca also make their advertisement in comparatively cheaper rate,
which is extremely required for cutting additional cost of operation and thus run the business in a
cost-effective manner. However, Baker & Mignini (2016) contended on this basis that as the
intensity of competition in the food and beverage industry is rapidly increasing, it is becoming the
matter of utmost importance for the company to devise their business strategy to gain competitive
advantage. In addition, the rate of interest in Australia is also increasing drastically. Therefore, joint
venture with Haigh’s Chocolates can restrict the ability of Cocoa Delights to increase the statistics of
disposable income

PEST ANALYSIS

The pest analysis is very helpful for understanding market growth or decline and such as
position, potential and direction for the businesses analysis is a business measurement tool. Pest
is an acronym for political, economic factors, which are used to assess the market for a business
or organization.
1. Political: Government is currently passing legislation that requires business to
monitor and reduce their waste and energy use. Significant penalties are planned for
business that do not comply with new directives.
2. Economical: Disposable income has reduced due to rising interest rates this
shortfall expected to be recovered in the long term, with wages including expected to
outstrip inflation rates by 2% unemployment levels are also increasing and expected
to climb steadily to 6% in the coming year.
3. Social: cocoa delights company will try to capitalize on the social trends of
consumers being more health conscious, by promoting the health benefits of dark
chocolates and offer the largest range of dark chocolate verities and more products.
4. Technology: Technology developments with the broadband rollout across
Australia have been delayed, although the rollout is continuing and will be completed
in the next three years. Internet retailing options are expanding, and most retailers
are taking advantage of this new technology.

RISK
Risk management is very important to the operations of the cocoa delight store. The
identification assessment and control of all risks are important to the successful achievement of
the store vision and mission.
Cocoa Delights ca offer the store managers with the rewards, which is the influence to
generating of responsibility among them. Do, the strength of risk related to lack of equivalent
financial rewards quite high for Cocoa Delights as it can affect their productivity by generating
reluctant attitude among the staffs. This can also affect the ability o the company to run the new
stores appropriately for not having plenty of store managers.
Executing joint venture with Haigh’s chocolate can lead Cocoa Delights to encounter certain risk.
The rules of running business by companies are different from each other. This can affect the
consistency of Cocoa Delights. Moreover, Haigh’s Chocolate does not follow any strong
advertising strategy order to promote their store. The risk of not having effective advertisement
strategy is also high which can also have a negative impact on Cocoa Delights. Collaboration with
Haigh’s Chocolate can also create barrier for Cocoa Delights to undertake their promotional
activities, which is truly a threat towards amplifying their public image.

FIT

Strategic management consists of the analysis, decision, and an organization to create and
sustain competitive advantage. Using the franchising option can get some more opportunities.
This idea will introduce of greater legal issues, with each store operating on a separate legal
agreement.

IMPACT
After reviewing Haigh’s chocolate proposal cocoa delight will get opportunities with
organizational goals and capabilities. Using JOINT VENTURE option with the Haigh’s chocolate
they can operate different market segment within same industries. A joint venture is a business
agreement in which the parties agree to develop, for a finite time, a new entity and assets by
contributing equity.
TASK 3 - MARKETING OBJECTIVES

MARKETING OBJECTIVES

For instance, Cocoa Delight planning to spread their business in Australia, it is very important to
formulate their marketing strategy. Cocoa Delights must take actions in terms of expanding their
product line, which can have whole impact on building brand loyalty amongst the staff. As they
are planning to go ahead with the joint venture with Haigh’s Chocolates, Cocoa Delights must
maintain healthy communication with the company to promote their products in a cost-effective
manner. CEO believes that brand awareness will act as a benchmark for them. Therefore, Cocoa
delights must enter to TV commercials to improve the brand awareness among the customers.

Short term objectives:

 Managing brand awareness.
 Featuring products from dark decadence range as a first step to sign loyalty.
 Work closely with joint ventures to advertise brand.

Long term objectives:

1. Create brand awareness.

 This benchmark to be achieved in every new market.

 Use of Joint venture TV advertising campaign.
 Will cost $1.1 million in each new market, funded by using money set aside in
provisions.
 Comply with competition and consumer act 2010.

2. To increase market share of cocoa delight gourmet chocolate by 18% in every Australian capital
city.

 Comply with vision of dominance in market.

 Develop market plan.
 Resources from Halt & Burrows and 5% of turnover will be allocated to Finance the
budget.
 Comply with rules set by ACCC for the market dominant player.

FINANCE THE BUDGET

Comply to rules set by ACCC for the market dominant player:

As the competition in the Australian market is rapidly increasing, expanding business in every capital
cities of Australia are highly required to strengthen the public image. This is the key factor of
attaining competitive advantage by competing with the giants in Australian food and beverage
industry. Increasing sales percentage is the major objective of Cocoa Delights. Complaint with the
rules will also serve Cocoa delights with the capacity to run the business in a legal manner.
Measuring and forecasting the accountability of business will help to attain success in business. The
company is also aiming to start 100 stores across the nation. This is highly required for Cocoa
Delights to strengthen their public relationship and thus acquire a strong customer base. Creating
brand awareness amongst the customers is also a major objective for Cocoa Delight. TV advertising
and joint venture are two of the main ways of generating brand awareness among the customers.
Intense awareness about Cocoa delights can also lead the customers to be inclined towards referring
the brand to others. This acts as a mouth marketing method, with the assistance of which the
company can acquire a greater number of customers.
Satisfaction of legal and ethical requirements is important to strengthen the public image of a
company. There are certain legal issues which Cocoa Delights must keep in mind while planning to
expand their business as a joint venture due to different rules set by both the companies. So, both
the companies Cocoa Delights and Haigh’s Chocolates need to make a revised legal agreement for
meeting the legal requirements.

Key Performance Indicator (KPI)

A good KPI should act as a compass: a measurement of where your business is, relative to where it
has come from and where it is going.
KPI’s act as important component of the information needed to understand a company’s progress
and it translate strategies into manageable, operational actions. The rate of brand awareness will act
as a great KPI for Cocoa Delights. In addition, the new rate of sale will also ensure that the company
holds the ability to accomplish the sales target.
KPI’s of Cocoa Delight

 Established markets will allocate 20% advertising budget for brand awareness.
 30% sales of machine-made chocolate will indicate that new markets are on
track to achieve sales target.
 To achieve 18% market share, break even target of $3 million should be
achieved.

RISK MANAGEMENT

Cocoa Delights should have adequate franchise documentation, which can serve them with the
ability to mitigate any kind of legal issues. Lack of human resource is also a major challenge in
the expansion of business. Thus, Cocoa Delights should execute effective recruitment system
and training must be provided to all the staff regarding market trends and requirements of
customers. Record keeping also plays a vital risk management strategy which needs to be
maintain by Cocoa Delights to keep its staff informed regarding the latest trends in Australian
F&B industry.