Synopsis
Rocky Mountain Chocolate factory is a public company, dating its incorporation back in 1982. The Company is a leading chain of stores dealing with confectioneries. It is proud to own more than three hundred retail stores in the U.S. It has centered its operation in the Sun Belt and the West coast, In Guam, in Canada, and the United Arab Emirates. The Company’s retail stores are appropriately located to attract tourist as it is within their areas of frequent visits not to mention other times at the outlet malls of factories where they visit regularly (Wheelen & Hunger, 2010, p.22-1).
Rocky mountain Chocolate Factory resources
Rocky Mountain Chocolate factory has a number of resources that made its growth evident over time. One is that the company was able to purchase its own fleet of refrigerators semis
After the company failure to find a shipper, it opted to build up its own fleet with in-built refrigerated semis, which have delivered beyond their expectations. The semis have increased its capacity to produce more confectioneries in both quantity and variety (Wheelen & Hunger, 2010, p.22-7).
Another key resource is the experience of a good number of confections over time. This has increased the company’s success. It has propelled the candities production in both quantities and varieties of more than 300 types of candies, although some stores are still using the traditional techniques (Wheelen & Hunger, 2010, p.22-8).
This experience has increased the supply of confectioneries directly from the stores. According to Wheelen & Hunger, chapter 8, this is due to increased confidence of the consumers over time, brought forth by provision of quality items for over twenty years.
The other resource is their expertise, in terms of trained employees and their passion for creativity and service. This expertise and commitment from employees and managers has made the company to; franchise gourmet chocolates other than just confectionery products. Currently, the company launched a new yogurt self-service concept through its subsidiary, Aspen Leaf Yogurt, Inc (Wheelen & Hunger, 2010, p.22-7, 22-8).
Finally, the issue of location is a vital resource to this company. This arises because its retail shops location is in tourist highly visited areas, and certainly, this increases sales to a larger extend. The new frozen concept is renowned considering its distribution to all the retail outlets through its subsidiary, Aspen Leaf Yogurt, Inc (Wheelen & Hunger, 2010, p.22-6).
Rocky mountain Chocolate Factory capabilities
The enormous resources that have been build up overtime; there is commitment and creativity among the staff. A number of competencies are explicit. As indicated in Chapter 7, One of them being its reputation that is of high quality. This has brought forth by the experience of the companies’ consumers over time as well as the experience of the company in handling its consumers. The company having more than 29 years of franchising is no mean achievement.
Their propriety training, as well as operating methods, is a significant capability that has grown with it over time. This came in after some realizations of losses in particular years-1985/86-when losses tripled to $146,706, when the company at that time had 55stores in 13 states, but the company recovered afterwards. The challenges of making the losses, created room for much more effective and training methods to increase stability of the company.
Lastly, of significant capability of Rocky Mountain chocolate factory is the company’s extensive relationships with developers and real estate companies, as well as their own subsidiary, Aspen Leaf Yogurt. This has played more roles than said. It has given them a competitive advantage over their competitors.
To a larger extend, their subsidiary [Aspen Leaf Yogurt, Inc.] has played a crucial role in marketing and distribution of their product to the retail stores.
In addition, their networking with real estate companies has enabled them set up retail stores in potential areas alongside building larger stores, for instance in 2002, February, the company introduced a 250-square foot kiosk concept for the areas in which 1000 square foot was impossible. This idea came because of close relations and consultation with real estate experts. This was a significant boost to shine over its competitors (Wheelen & Hunger, 2010, p.22-11).
Core competencies
Rocky Mountain Chocolate Factory does is on lead in areas such as production of diverse product line, rather than concentrate into one product line. This has been in an increasing scale over time, due to experienced staff, changing demands, tastes and fashions of consumers over the time.
The company has welcomed innovation. For instance, in 2000, there was an expansion in the product line to sugar-free candies, which accounted for 40% of the sales of that year. Other products from the stores accounted for another 40%, with the remainder from other quarters.
Maximizing on the retail concept unlike just concentrating on the main stores has been a core competency of the company. This concept has triggered modernization and upgrading to catch up with the times, as well as to increase a competitive niche with other competitors. This increased distribution from home consumption of their products.
A core competency that puts the company above the competitors is the decision of the companies to tailor the store designs to be an attraction for tourists. As tourists are attracted to these stores, they get to increase sales through consumption of the products.
These stores grew to be of tourist attractions on their own, with a good display of the making of confectionery offered to them. In addition to tourist attractions, were trademarks of fresh made fudge and apples mounted on a 500-pound slab of marble (Wheelen & Hunger, 2010, p.22-6).
Finding of Fact
The Rocky Mountain Chocolate factory had its foundation in 1981, by the family of frank Crail, who chose to begin it with the desire to grow. He began when he did not have much capital funds to run its operation. However, through struggles, earning profits, which could not make much because of subsequent losses suffered.
It was the first franchised store opened in 1986, and then the company went public after which in 1997 it restructured itself to focus on franchising operations (Wheelen & Hunger, 2010, p.22-1). The huge costs at this time made them experience some losses. However, they recovered and subsequently led to the change of the company’s logo, to repackage itself afresh as well as update its interiors, which it did in 2001.This led to increased output which made it pay off its outstanding debts in 2005.
Recommendations and Implementation
The recommendations are that the company had a good foundation that should help it grow. That the franchised stores that were opened in 1986, if sustained they would uplift the business financial returns (Wheelen & Hunger, 2010, p.22-1).
In addition, the restructuring of the company to franchising is a timely idea; however, it should cut across the whole US and not just a part of it. Good measures taken against the losses ought to objective out and not subjective. Repackaging was excellent, whereas using returns to pay off all debts was not just a good but also a wise idea for the factory (Wheelen & Hunger, 2010 p.22-9).
Furthermore, the implementation is appropriate after assessing in keenness the above recommendation. For instance, Repacking of the product should be consistent after assessing consumer demands from time to time.
Reference
Wheelen, T.L., & Hunger J.D. (2010). Strategic Management and Business Policy: Achieving Sustainability. London: McGraw-Hill.