Scharffen Berger Chocolates - Promoting

 Scharffen Patre Chocolate -- Marketing Research Paper

Group Case Brief

Scharffen Patre Chocolate Developer (A)

Basketball Green Condition University

March 14, 2011

Scharffen Berger Chocolate Machine


The Scharffen Berger Chocolate Maker is definitely experiencing a great exponential yr over season growth rate of their premium product. This is a situation that every new businesses strive for and though Scharffen Berger is pleased with their expansion, they are faced with a potential problem. The company must consider how they will keep program growing require while having enough capacity to take care of the increase in production and maintain their high quality standards. In order to understand how to satisfy the increased demand, research was conducted to unveil the problematic concerns the company happens to be experiencing. There have been two important issues that had been discovered which includes: capacity and bottleneck(s). Please refer to the Scharffen Bergerot Production ‘Current State' map below, which include machines and process times, shifts, and current outcome. | | | | | | | | | | |

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By analyzing the current production flow you will find two feasible alternatives and one key recommendation for Scharffen Berger to look into meeting the forecasted require the company is going to experience soon. Alternative One particular: Additional Conche

The 1st alternative that Scharffen Bergerot considered consisted of purchasing yet another conche and adding a third shift towards the tempering and molding method. With two conches the ideal monthly potential is approximately 30 conches of chocolate. By adding a third conche to the development, there is a probability of increase the maximum capacity by an additional 14 conches a month. The acquiring an additional conche would pressure the tempering and molding station to add a third eight-hour shift, seven days a week to keep up with the added end result. Pros:

The purchase of a new conche is estimated to cost $30, 000[1], after calculating sales of three conches Scharffen Berger estimated sales would total $1, 290, 000 monthly (Assuming 43 conches per month * $30, 000 product sales per conche). The benefits to purchasing a fresh conche include increased development and increased yearly earnings of $5, 040, 500 ($15, 480, 000 – 10, 440, 000 sama dengan $5, 040, 000). The time to recoup the $30, 500 investment could take less than a year.

The increased development created from the extra conche could force Scharffen Berger to incorporate another move to the tempering and molding process to prevent a logjam at this stage. By having this extra shift the tempering and molding process would be converted to operate a day seven days every week to keep up with demand. This new shift would not just add new careers which may not be considered overtime, however, pay to Scharffen Berger. Cons

The production from the conche equipment would need regular routine service which will maximize downtime within the machine. With this potential increased down time Scharffen Patre would reduce production period on the conche machine. When the chocolate provides reached the packaging stage the potential for a logjam may take place. Currently, Scharffen Bergen packages 35% in the chocolate themselves and send the remaining 65% to a other co-party. With the increased production, Scharffen Patre may not be capable to keep up with the extra packaging required for the additional merchandise being produced. Bottom Line:

The purchase of one more conche will simply help Scharffen Berger in the short-term because it is uncertain the length of time demand is going to consistently maximize. However , once demand is usually increased we have a potential that packaging will experience a great overflow of product and can not be able to deal with the improved inventory. Substitute Two: East Coast Plant and Storage place

Alternative two that Scharffen...

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