solution

Chocolate Inc. is well known for its famous chocolate throughout the country. They have been operating at Food industry since 30 years, and takes the 1^st place in the market. Most of the consumers admire their chocolate taste, they see it as one of the cool brand for their snack times.

Chocolate Co. runs 10 M USD gross revenue in a market of 40 M USD and has a reasonable market share. The biggest companies, that Chocolate Inc. compete with, have market shares of 20% and 15%. The other competitors are mostly small and they are not the leading companies in the industry.

Chocolate Inc. has three types of sales channels. Traditional channel serves to customers like groceries & bakkals and this channel covers 60% of the total gross revenue. The other channels are modern trade & e-commerce. These channels are particularly growing, especially investments on e-commerce channel is increasing in the market.

As indicated, 60% of sales is generated from traditional, while 40% is coming from modern (Organize Trade Chains), 10% belongs to e-commerce channel. Company is growing 4% in CAGR 3 years, and there is no downsizing consecutively 3 years. This gives a good a signal for management. Top Team does not want to lose the pace at Direct Sales in traditional & modern trade, while expanding on e-commerce. Market also has an organic growth 5% last year, so CEO and CMO agree investing on some projects.

Chocolate Inc. has three brands those lead the market: MILKY, DARKY and LIGHTY. These three brands have sizes like small, medium and large. Selling price for each size is 2 USD for small, 3 USD for Medium, 3,5 USD for Large. Mostly Chocolate Inc. have some campaigns in all channels and sometimes all SKUs are sold at cheaper prices. Traditional Channel drives the same price strategy but critical point is modern trade chains have margins over buying price from Chocolate Inc. E-Commerce Channel, which is growing more, uses different prices depending on the brands and different sales websites.

Chocolate Inc. has one plant (factory) and all the brands are produced over there. Finished products are first delivered to warehouses in five big cities, and then to distributors or modern trade warehouses. Supply Chain team plans the most effective and cheapest way for product delivery to distribution points, which has at least two productivity projects every year. E-Commerce delivery is done still from warehouse and the operation has a reasonable cost compared to other channels.

At human demographics, 400 Employees work for Chocolate Inc., and 150 of the population works at the factory. 50 of the employees are working at DCs (Distribution centers) where 70 employees work for modern trade. Rest is working at HQs. There are typical departments like Finance, HR, Marketing, Design, Sales Development, Sales management, IT, Purchasing, Planning. Top Management considers expansions at headcount due to new investments for next year.

Financially, Chocolate Inc. runs its P&L with 15 % NOPBT margin/Net Revenue where all administration, distribution costs take 10%. Company wants to invest more on marketing and A&M is 12% of NR. Total discount budget for all sales is 20%.

At 2020, Chocolate Inc. Top Management prioritizes three big initiatives beside business targets and delivers the messages top to down at the town halls organized. Here are the biggest top 3 initiatives:

• Delivering min +20% growth at ecommerce.
• Fostering new culture with an embedded vision.
• Opening the Chocolate Inc branded stores at the biggest city of the country.

1. You are the leader at OMD (Organizational Management – Development) and assigned for Culture Change Project. CEO wants to foster the culture with more ambition, ownership and innovation. Develop a business plan by answering these questions:

B.1 Define the new cultural attributes that covers CEO perspective.

B.2 What are the opportunities at the population when delivering the new culture.

B.3 What are the KPIs that you deliver the right business results for your project.

B.4 What kind of communication plan are you going to land for the project?

B.5 Verify the feasibility options and show it works for the company.

B.6 What is your project plan and steps.