Daisy Paridon
Professor Fowler
MGMT 458-002
23April 2015
Charles Chocolates Case Brief (993 words)
Essential Areas for Charles Chocolate to Focus On
While Charles Chocolates has a large variety of high quality products, the company still faces
many challenges and issues preventing them from reaching their full potential. As the premium
chocolate market grows 10% annually, it is essential Charles Chocolates take steps to take advantage of
this opportunity by making changes to increase sales growth and profit (case, p1). The company faces
challenges, such as poor packaging and advertising relative to their competitors. In order to foster sales
growth, the company must place a heavier focus on more aggressive packaging, marketing, and
advertising. Another issue is that Charles Chocolates’ main retail segment, tourist locations, are declining
in sales. The company should turn towards increasing sales in segments that are experiencing growth,
not a slowdown in economic activity. This involves modifying what distribution channels to emphasize.
As their ultimate goal is to increase sales, Charles Chocolates also needs to increase production. Lastly, a
cohesive internal organization within the firm aimed at creating value is necessary. Charles Chocolates
must allocate their resources efficiently to increase value and sales. Essential areas to focus on to lead
towards the accomplishment of these goals include:
Increasing production
Building a stronger focus on packaging, marketing, and advertising
Turning efforts towards their most profitable distribution channels,
Reinforcing the company’s structure and facilitate coordination within
Important Resources and Capabilities: Tangible and Intangible Assets
In order to better understand Charles Chocolates’ financial position, tangible assets must be
assessed. In 2011, these include:
$112,185 cash, $358,969 in receivables (case, p12)
Land worth $1,219,819.20 (NBV), including a “24,000-square-foot factory owned by Charles on
the outskirts of Portland” where Charles Chocolates products are produced (case, p3)
Property and Equipment valuing $4,364,527, including Buildings (NBV of $1,699,254.45) and
Manufacturing Equipment ( NBV of $317,544.69) (case, p12)
Intangible assets, such as reputation and culture are also important resources. Charles Chocolates
has a strong reputation of having “the highest quality” products, proved through a “prestigious Superior
Taste Award from Belgium’s Institute for Taste” (case, p2) and the title of America’s Innovative Retailer of
the Year in 2005 (case, p3). In terms of culture, the “company’s heritage, commitment to quality, and
strong family values were cherished by employees” (case, p3). Other intangible assets include:
Professor Fowler
MGMT 458-002
23April 2015
Charles Chocolates Case Brief (993 words)
Essential Areas for Charles Chocolate to Focus On
While Charles Chocolates has a large variety of high quality products, the company still faces
many challenges and issues preventing them from reaching their full potential. As the premium
chocolate market grows 10% annually, it is essential Charles Chocolates take steps to take advantage of
this opportunity by making changes to increase sales growth and profit (case, p1). The company faces
challenges, such as poor packaging and advertising relative to their competitors. In order to foster sales
growth, the company must place a heavier focus on more aggressive packaging, marketing, and
advertising. Another issue is that Charles Chocolates’ main retail segment, tourist locations, are declining
in sales. The company should turn towards increasing sales in segments that are experiencing growth,
not a slowdown in economic activity. This involves modifying what distribution channels to emphasize.
As their ultimate goal is to increase sales, Charles Chocolates also needs to increase production. Lastly, a
cohesive internal organization within the firm aimed at creating value is necessary. Charles Chocolates
must allocate their resources efficiently to increase value and sales. Essential areas to focus on to lead
towards the accomplishment of these goals include:
Increasing production
Building a stronger focus on packaging, marketing, and advertising
Turning efforts towards their most profitable distribution channels,
Reinforcing the company’s structure and facilitate coordination within
Important Resources and Capabilities: Tangible and Intangible Assets
In order to better understand Charles Chocolates’ financial position, tangible assets must be
assessed. In 2011, these include:
$112,185 cash, $358,969 in receivables (case, p12)
Land worth $1,219,819.20 (NBV), including a “24,000-square-foot factory owned by Charles on
the outskirts of Portland” where Charles Chocolates products are produced (case, p3)
Property and Equipment valuing $4,364,527, including Buildings (NBV of $1,699,254.45) and
Manufacturing Equipment ( NBV of $317,544.69) (case, p12)
Intangible assets, such as reputation and culture are also important resources. Charles Chocolates
has a strong reputation of having “the highest quality” products, proved through a “prestigious Superior
Taste Award from Belgium’s Institute for Taste” (case, p2) and the title of America’s Innovative Retailer of
the Year in 2005 (case, p3). In terms of culture, the “company’s heritage, commitment to quality, and
strong family values were cherished by employees” (case, p3). Other intangible assets include:
