Location and Layout
It should be mentioned that the stores of this company are located mostly in tourist destinations such as Boston’s Back Bay and Bar Harbor. Moreover, the products of this organization can be purchased through various retailers and ship terminal locations. The main limitation of this approach is that it makes Charles Chocolates too dependent on the trends of the tourist industry. This problem influences many businesses that serve mostly the needs of tourists (Lubbe, 2000).
Therefore, the company should re-consider their current policy. In particular, they should open their stores in large urban areas located in New England; for instance, one can mention Boston, New Haven, or Worcester. In this way, the management will be able to attract new customers who may buy the company’s products on a regular basis. In addition to that, the company should promote the opening of franchise shops because this strategy can increase the number of sales outlets. This is one of the issues should be taken into account.
Additionally, much attention should be paid to the layout of their stores. The main task is to make sure that clients enjoy spending time at these places. As a result, they are more attached to this brand. One should mention that store design can become a source of completive advantage for many businesses such as Apple, Inc (Ebster, 2011).
These sales outlets of Charles Chocolates should exhibit the diverse range of products offered by Charles Chocolates. By increasing the number of such stores, the company can promote their brand (Mesher, 2010). Furthermore, the visitors of such stores can have a positive perception of the company’s products. These are some of the suggestions that can be offered.
Purchasing and Inventory
At present, the company faces problems related to the inventory control because many of its stores are often out-of-stock. As a result, many clients become dissatisfied with the services of this organization. In contrast, other stores often have the surplus of goods that are not required by customers.
This is one of the points that should be considered. This difficulty indicates that the company is not able to gather information from its stores. Furthermore, this organization has to keep high levels of inventory. As a result, the company is forced to incur additional expenses that weaken its financial performance.
Overall, these problems can be partly addressed by implementing data management systems which can demonstrate whether a particular store currently has the necessary products. These information technologies will use the sales data which can show how the level of inventory changes with time passing (Choi & Kim, 2001, p. 5). Furthermore, the sales data are also critical for determining the level of supplies that the company should have in order to meet the demand of various clients.
Production
Much attention should be paid to various issues related to production. Overall, one can say the company determines the volume of output by relying on historical sales data, but this information does not reflect the variations in demand. The management should adopt the production system which can be adjusted to the changes in demand level (Feld, 2000).
This goal can be achieved by adopting the principles of lean manufacturing (Feld, 2000). Finally, the company should identify distinct criteria according to which the performance of workers should be evaluated and rewarded. This policy can increase their productivity. These are the main recommendations that can be advanced.
Reference List
Choi, W., & Kim, Y. (2001). Has Inventory Investment Been Liquidity-Constrained? Evidence from U.S. Panel Data. New York, NY: International Monetary Fund.
Ebster, C. (2011). Store Design and Visual Merchandising: Creating Store Space That Encourages Buying. New York, NY: Business Expert Press.
Feld, W. (2000). Lean Manufacturing: Tools, Techniques, and How to Use Them. New York, NY: CRC Press.
Lubbe, Berendian. (2000). Tourism Distribution: Managing the Travel Intermediary. New York, NY: Juta and Company Ltd.
Mesher, L.(2010). Basics Interior Design 01: Retail Design. New York, NY: AVA Publishing.