BSBMKG608 Develop organizational marketing Editing Services

Task 1: Organizational review

1. a) Mission, vision and values of Cocoa Delights:

Cocoa delights is one of the major dark chocolate chains in Melbourne, offering high quality of dark chocolates that are handmade. This is one of the leading brands in Australia, serving wide range of customers over the past few years. Malhotra & Peterson (2014) commented thatthe fundamental vision of the organization is to become the major national brand, by offering customers with unique products. The company intends to provide high quality of dark chocolate and thus provide excellent service to the customers by the hand of extremely skillful and knowledgeable working professionals. This is the key of building trust and loyalty among the customers, which play a pivotal role in keeping them inclined towards the organization behaviour.

1. b) Strategic Objective of Cocoa Delights:

Conducting business in unconventional manner is the greatest strength of Cocoa delights. There lies the reason, for which the firm is attaining immense success from business. According to the Chair of the Board, creativity and innovation are the greatest strengths of Cocoa delights, with the assistance of which, they are running their business in a unique manner. Maintaining healthy relationship is also the major aspect of Cocoa Delights. According to Chernev (2018) they are highly committed towards making their business plan in such a manner, which can help them to run their business to appropriate direction. It is the vision of the company to become the most significant retail brands in Australia by 2020. Running business in a socially responsible manner is also a major aim of Cocoa Delights.

1. c) Critical analysis of the case:

According to the case study, innovation and creativity are two of the major assets of the company, through whim they are becoming able to strengthening their business process and thereby attain competitive advantage by competing with the strong business giants that are presented in Australia. The inclusion of effective leadership along with self-directed team are the major aspect of Cocoa Delights. However, there are certain issues, which Cocoa Delights might face in the way of running their business in a consistent manner. Due to the inclusion of major business giants like Hershey’s chocolate, the company can face barriers in the way of strengthening their public image. In addition to that, Australian government is also putting stress on sustainability. However, chocolate production requires huge energy consumption, which is really a threat towards securing the environmental wellbeing. This is a major threat, which can even lead Cocoa Delights to face ethical issues.

1. d) Recommendation:

As Cocoa Delights might face certain issues in the way of attaining competitive advantage, due to the inclusion of business giants. Therefore, it is recommended for Cocoa Delights to devise their business strategy. They can carry out in-depth market analysis in order to explore the business strategy, practiced by the competitors and frame the business strategy accordingly for the sake of staying aside from the hardcore competition. In addition, it is suggested for them to explore the niche market which is very much needed in order to assess a strong segment of customer. Cocoa Delights must also assess the strengths and core competencies and thus explore the innovative ways for strengthening the value of business. As chocolate production consumes greater amount of energy, which is the key factor of environmental degradation, Cocoa Delights should practice sustainability. Recycled papers must also be used in packaging of the products. Innovation is also a great way, through which the employees can also be motivated to show employee-friendly behavior.

2. PEST Analysis of Cocoa Delights:

As discussed by Marshall (2014) PEST is one of the major frameworks, through which the external factors, influencing the internal functionality of a company can be framework. Subsequent discussion will highlight in-depth PEST analysis of Cocoa Delights. There are four different framework of PEST which are as follows:

1. Political:

The political factors play a critical role in running business in a responsible manner. Bresler & Lubbe (2014) observed thatthis is the way, through which strong regulatory framework can be integrated that is highly to run the business in a consistent manner. Focus of the government towards environmental sustainability is acting as a driving force behind the companies like Cocoa Delights to frame their CSR (Corporate Social Responsibility) policy.

2. Economic:

This is also a major factor in strengthening the condition of a company and thereby running the business in a cost effective manner. Stable interest rate of Australia is playing a significant role in increasing the interest rate of customers. At the same time, the inclusion of free market structure is also a major factor for ensuring financial stability of Cocoa Chocolate.

3. Social:

The society is a major external stakeholder of a company. Therefore, it is the matter of utmost importance to maintain healthy relationship with that of the stakeholders, which is the key of strengthening the public image of a company. Foxall (2014) showed that Cocoa Delights is highly committed towards maintaining strong bonding with the strong bonding with that of the stakeholders by adhering the professional code of conduct.

4. Technological:

Rapid development of technology is acting as a driving force behind the companies to implement effective tool for the sake of promoting sustainable growth of business. Implementation of internet marketing plan is the greatest aspect of Cocoa Delight. With the assistance of this plan, the company is becoming able to catch the attention of a potential base of customer.

3. Legal and ethical requirement to address issues related to sustainability:

Running business in ethically responsible manner is one of the greatest factors of strengthening the public image of a company. As discussed by Moore et al., (2015) the inclusion of business ethics plays a significant role in maintaining strong interaction with the key players such as shareholders and stakeholders. Building strong connection with the stakeholders is the most significant focal point of Cocoa Delight. In order to satisfy this objective, the company is taking are towards adhering the code of conduct. Strong CSR policy has been implemented by them in terms of minimizing the negative impact of their business from the society. As per the view of Baker & Saren (2016)with the assistance of proactive CSR policy, the company is becoming capable to promote societal well-being, which is the key of generating attention in the local community, in which they are operating their business.

Providing high quality of customer service is also a major objective of Cocoa Delight as the customers are the most valuable external stakeholder. There lies the significance of innovation and creativity being initiated by them. This is the mode of manufacturing Chocolate in unique manner and thereby serve the customers with excellent experience. Government is also a major external stakeholder. Therefore, compliance with rules and regulations is very much important. As government is putting ample stress on manufacturing imported chocolate. In addition, Gummesson (2015) also opined that Australian Government is also creating provision for the companies like Cocoa Delights to implement self-regulatory mechanism. The company is also showing intense commitment to manufacture product in accordance with the governmental mechanism.

4. Impact of organizational strategic direction on current marketing activities:

Strategic planning can be considered as the process of formalizing the managerial method of an organization that supports in analyzing the existing condition. This is the way, through which the higher authority of an organization explore the most valuable resources and set the business plan accordingly in order to acquire competitive advantage. Therefore, dedicated strategic planning is playing a significant role for the companies like Cocoa Delight to focus on their current marketing objectives and undertake proactive action with the intention of strengthening their marketing activities. As showed by Bagozzi et al., (2018) there lies the reason, Cocoa Delight is attaining immense support in recent times.

The fundamental aim of the firm is to become the national retail brand within five years by providing the customers with unique services. With the assistance of strong strategic planning, the company has become able to amplify their marketing activities which is the key of strengthening the public image. Sustainable growth in both store and sales is the biggest achievement of Cocoa Delight. The rate of gross profit margin of the company has been increased by 46%. However, it is their firm belief that, their profit should be 65%. Still, Aghazadeh (2015) argued by saying that as the intensity of competition in the Australia food and beverage industry is rapidly increasing, it is becoming quote difficult for the companies like Cocoa Delight to increase the statistics of profit. Expanding sales and running business in cost effective manner are two of the most significant issues, which are creating barrier for Cocoa Delight to accelerate their rate of profitability. Still, in order to expand their marketing activity, radio advertising strategy has been introduced for them. This is the medium of reaching to wide range of customers. At the same time, they have also made considerable investment in the direct and PR marketing, which are also critical factors in reaching to a potential base of customers. The inclusion of radio advertising strategy has played a significant role for Cocoa Delights to promote growth in their sales result. In addition to that, Burns, Bush & Sinha (2014) also focused on the fact that PR advertising has also played a significant role for them to gather the attention of the customers by providing them with the information regarding their unique offering. Lucrative branding is playing a critical role for the company to generate intense loyalty among the customers.

5. Exploring the products of Cocoa Delights:

Being the famous chocolate company in Australia, providing high quality of services to the customers is the core motto of Cocoa Delight. In order to satisfy this objective, the company is putting ample stress in the modification of their production process. High quality of locally produced chocolate is the main product of Cocoa Delight. Pike (2015) showed that the company is specialized in manufacturing handmade dark chocolate. The company is aiming to become most prominent retail brand in Australia. Producing naturally produced dark chocolate is the most prominent product of Cocoa Delight. The wonderful aroma is the greatest strength of the company, for which the customers are becoming more inclined towards consuming the dark chocolate.

SWOT Analysis of Cocoa Delights:

SWOT analysis is a worth mentioning framework, which helps in exploring underlying competencies as well as weaknesses of an organization. In-depth SWOT analysis of Cocoa Delight is as follows:

Table 1: SWOT Analysis
(Source: Scarborough, 2016)

6. The effectiveness of initial marketing activities:

Cocoa Delights is one of the booming companies in Australia. The inclusion of innovation and creativity in their marketing activity is playing a pivotal role for them to drag the attention of the customers and thereby accelerate their image in the society. In addition, the rate of consuming chocolate is also increasing promptly. This is also paving the way for Cocoa Delights to run their business without any hindrances. Babin & Zikmund (2015) put stress on the ground thatthe focus towards the digital media for executing marketing activities is also acting as a strong opportunity for Cocoa Delights to exploit the target market and thereby satisfy the requirements of customers, which is changing rapidly. Successful implementation of proactive marketing activity has helped Cocoa Delights to achieve sustainable growth in the rate of sales.

However, Malhotra (2015) argued by saying that one issue, which is being encountered by them in recent times is lower rate of profitability. They have set the objective of getting 63% profit, still, they have acquired only 45% profit. Execution of PR marketing objective has acted as a greatest opportunity for Cocoa Delights to drag the attention of major number of customer. This strategy has worked higher than that of the predetermined objectives. PR marketing has enabled Cocoa Delights create awareness regarding their brand among almost 58% of customers. Marketing through internet and digital media has acted as critical success factor for Cocoa Delights. Moreover, Lilly (2014) showed that the inclusion of creativity and innovation has also helped the company to run their business in unique manner. Focus towards maintaining healthy relationship with the stakeholders is also acting as a critical success factor for Cocoa Delights. In order to build trust among the stakeholders, both moral and professional code of conduct are being followed by them. As government is a greatest external stakeholder, Cocoa Delights is also putting stress on maintaining the requirements of them. As sustainability is a major issue, raised by Australian government, Cocoa Delights is also putting stress on waste management and thereby promote environmental well-being. Purvis (2015) observed that they have also cut the cost of usage of electricity which is the key of endorsement of environmental well-being.

As the employees are the most significant asset of an organization. the higher authority of Cocoa Delights always, offer motivational factors for the employees. They always supports the employees to develop independent team. The financial stability of the company plays a very important role in attaining very high quality of cocoa beans which is the key of making fine quality of dark chocolate. However, based on their marketing activities, it can be said that, there are two different in areas Cocoa Delights needs improvement.

As they are facing issues in the way of increasing their profit margin, it is imperative for them to cut the additional cost of operation. According to Cavusgil et al., (2014) as radio advertising is obsolete in contemporary times, it is imperative for them to stop investing money for this reason. At the same time, they can also automate their business process, which is also a very significant way of cutting excessive cost of operation. Still, the positive perception of the customers is acting as a major force for Cocoa Delights to run their business in a profitable manner. The social trend of eating chocolate is promptly increasing is creating great opportunity for the firm to gather a potential base of customers, which is the fundamental factor of increasing statistics of profit margin (Hair, 2015).

Task 2: Validity report

1. Cost and benefit:

Being a significant chain of chocolate stores in Melbourne, it is imperative for Cocoa Delights to analyze both risk and benefit before undertaking any activity. It is the vision of Chair of the Board of Cocoa Delights, it is the vision of the firm to strengthen their presence in every Australian capital city by 2020. They are aiming to open more than 100 stores in the entire country. In order to fulfill this vision, the company aims to launch expansion program and collaborate with Haigh’s Chocolates. Baker & Saren (2016) showed thatit is true that, satisfaction of these objectives will serve them with the ability to expand their business in much wider business domain, which is the key of sustaining in the intense competitive market of Australia. Collaboration with Haigh’s Chocolates will act as a greater opportunity for Cocoa Delights to align more number of customer. Extensive advertisement and considerable price of products are the greatest strength. Thus, Stern & Porr (2017) showed that aligning with Haigh’s Chocolates will enable Cocoa Delights to offer the customers with cheaper range of chocolate. This can act as a driving force behind generating positive perception among them.

At the same time collaboration with Haigh’s Chocolates will also help Cocoa Delights to access low cost media in order to advertisement their products and thereby create brand awareness among the customers. As Haigh’s Chocolates is running business for several years. Therefore, the company have in-depth knowledge regarding the market of three different capital cities. This can help Cocoa Delights to access those market by exploring the buying patter along with the fundamental requirements of customers. Brady (2015) highlighted by saying that by using the extensive media of Haigh’s Chocolates, Cocoa Delights can also make their advertisement in comparatively cheaper rate, which is extremely required for cutting additional cost of operation and thus run the business in a cost effective manner. However,Baker & Magnini (2016) contended on the basis that as the intensity of competition in the food and beverage industry is rapidly increasing, it is becoming the matter of utmost importance for the company to devise their business strategy in order to gain competitive advantage. In addition, the rate of interest in Australia is also increasing drastically. Therefore, joint venture with Haigh’s Chocolates can restrict the ability of Cocoa Delights to increase the statistics of disposable income.

Still, this is also expected that collaboration with Haigh’s Chocolates can serve Cocoa Delights with the ability to open more than 100 stores within 5 to 7 years. Babin & Zikmund (2015) showed thatfranchising is the key of strengthening business network and thereby expanding business in much wider business domain. As Cocoa Delights is aiming to initiate franchising, this will help the company to satisfy the target of 100 stores within 3 years. Franchising is the greatest source of capital, this will help Cocoa Delights to mitigate the issue of lack of ample store manager in a timely and cost effective manner. At the same time, with the assistance of strong financial base, Cocoa Delights can also be able to satisfy the financial requirements. Financial stability can help Cocoa Delights to provide reward to the store managers based on their performance. This is the way, through which commitment can be raised among the store managers. Still, Kladou et al., (2014) claimed by saying that there are certain negative impact of franchising. Cocoa Delights can face strong legal issues after franchising as legal agreement of operating the stores is different from each other. This can make it difficult for Cocoa Delights to run their business in a consistent manner.

Moreover, the chances of conflict is also there in the franchising. Different point of view among the local minded business and brand is one of the most significant reasons, which can affect the ability of Cocoa Delights to satisfy their target of making 100 stores. Huang & Sarigöllü (2014) put forth on the discussion that franchising can also have some of the major positive aspects, which can make it easy for the companies like Cocoa Delights to access the market of Melbourne market in an in-depth manner and this serve the requirements of local customers. There are certain rules and regulations as introduced by government towards the franchises. Therefore, it is the prime responsibility of the strategic manager of Cocoa Delights to comply with the rules and regulations which is the key of running business in a comprehensive manner. Sasmita & Mohd Suki (2015) suggested thatthe firm should also start their market expansion activity from Sydney and then move to the other capital cities of Australia after satisfying the target of profitability in Sydney. Based on the discussion, it can be said that, there are both benefits and risk of both franchising and joint venture, which must be assessed byCocoa Delights before initiating any of activity.

2. PEST Analysis:

PEST is one of the greatest framework by which the condition of a market can be guessed, which is very much needed before launching new business. Subsequent presentation cover PEST analysis in the context of Cocoa Delights.

Table 2: PEST Analysis of Cocoa Delights
(Source: Rubio, Oubiña & Villaseñor, 2014)

3. Risk Analysis:

Risk analysis is very much needed in order to explore the possible challenges of undertaking any kind of activities. As Cocoa Delights is aiming to expand their business in the capital cities of Australia, it is imperative for them to carry out an in-depth risk analysis, which can serve them with the capability to develop and implement proactive strategies that are highly required for overcoming the challenges.

One of the major aspect of risk assessment is that, it can help Cocoa Delights to accomplish their fundamental mission and vision in a timely and cost effective manner. Rossiter (2014) commented that strengthening the financial condition of a company is very much need in terms of satisfying the requirements of the staffs. With the assistance of ample monetary resources, Cocoa Delights can offer the store managers with the rewards, which is the key of generating a sense of responsibility among them. Therefore, the intensity of risk related to lack of equivalent financial reward us quite high for Cocoa Delights as it can affect their productivity by generating reluctant attitude among the staffs. This can also affect the ability of the company to run the new stores appropriately for not having ample store manager. Ahmed, Vveinhardt & Streimikiene (2017) also showed thatthere are also certain risk of collaboration. Executing joint venture with that of Haigh’s chocolate can lead Cocoa Delights to encounter certain risk. The rules of running business by companies are different from each other. This can affect the consistency of Cocoa Delights. Moreover, Haigh’s chocolate does not follow any strong advertising strategy order to promote their store. The risk of not having effective advertisement strategy is also high which can also have a negative impact on Cocoa Delights. Collaboration with Haigh’s chocolate can also create certain barrier for Cocoa Delights to undertake their promotional activities, which is truly a threat towards amplifying their public image.

4. Alignment of opportunity with that of organizational goals:

Being a famous chocolate company, Cocoa Delights is highly committed towards satisfying their organizational goals and objectives. In order to satisfy their strategy of improving their retail presence in all of the capital cities of Australia, the company has set the mission of running their business expansion program. According to Heding, Knudtzen & Bjerre (2015)this is the way, through which Cocoa Delights can expand their business in the core market of Australia, which is the key of increasing statistics of profit. Franchising strategy has also been undertaken by them with the intention of accomplishing fast and sustainable growth of business.

5. Impact of existing business opportunity on business activities:

In order to promote growth of their business, Cocoa Delights is aiming to initiate joint venture with Haigh’s chocolate, which can have a firm impact on strengthening the financial condition. The trend of eating chocolate is high in Australia, which is acting as a great opportunity for Cocoa Delights to increase their statistics of sales. The profit margin of the company us 45%. It is true that joint venture with Haigh’s chocolate can pose certain legal issues for Cocoa Delight. However, Rosenbaum-Elliott, Percy & Pervan (2015) stressed on the ground that this can also help the company to explore opportunities for accomplishing predetermined organizational goals and objectives. As Haigh’s chocolate is operating their business in different market segment, collaboration with the company will help Cocoa Delight to access these market and thus attain a strong base of customer.

Task 3: Marketing objectives

Part A: Marketing objective report

1. Description of the objective:

As Cocoa Delights us aiming to make a strong presence in every capital cities of Australia, it is imperative for them to devise their marketing strategy. This is the way, through which they can strengthen brand awareness among the customers, which too is a vital objective of the company. Jugenheimer, Sheehan & Kelley (2015) observed thatthe production department of Cocoa Delights must take actions in terms of expanding their product line, which can have a firm impact on building brand loyalty among the staffs. As they are aiming to go ahead with the joint venture with Haigh’s Chocolates, Cocoa Delights must maintain healthy communication with the company to promote their products in a cost effective manner. It is the belief of the CEO that brand awareness will act as a bench mark for them, Cocoa Delights must initiate TV advertisement to enable the customers to be inclined with their brand (Ertimur & Coskuner-Balli, 2015).

2. Assessing KPI (Key Performance Indicator):

Key Performance Indicator (KPI) can be considered as the tool of measuring the performance of an organization. This is the way, through which success of an organization is being determined. Solomon et al., (2014) suggested that the company should assess the rate of sales against the predetermined business .objective. The rate of brand awareness will act as a great KPI for Cocoa Delights. In addition, the new rate of sale will also ensure that the company holds the ability to accomplish the sales target.

3. Ways of attaining objectives:

Proper accomplishment of the predetermined business objectives is very much needed to attain competitive advantage. In order to accomplish their objective of raising brand awareness among the customers, it is imperative to expand their product line (Du Preez & Bendixen 2015). Expanding business in much wider domain is also a great way of way of accessing new market and thus raise awareness among the customers. As they are planning to go on a joint venture with Haigh’s Chocolates, Cocoa Delights should expand their business network in terms of maintaining strong communication with Haigh’s Chocolates (Martin-Rios et al., 2018).

4. How the objective iscompatible:

As the competition in the Australian market is rapidly increasing, expanding business in every capital cities of Australia is highly required to strengthen the public image. This is the key of attaining competitive advantage by competing with the giants in the Australian Food and Beverage Industry. Increasing rate of sale is the greatest objective of Cocoa Delights (Keller, 2016). The accountability of this objective is also high as increasing rate of sale can help Cocoa Delights to amplify their financial stability, which is highly required for acquiring competitive rivalry. Compliance with the rules and regulations will also serve Cocoa Delights with the capability to run the business in a legal manner.

5. Measuring consistency of the objective:

Measuring the accountability of the objectives with the future direction is extremely significant in attaining success from business. The fundamental aim of Cocoa Delights is to make a significant retail presence in Australia by 2020. The company is also aiming to make 100 stores across the nation. This is highly required for Cocoa Delights to strengthen their public image and thus acquire a strong base of customer. Creating brand awareness among the customers is also a greatest objective of Cocoa Delights (Chiang, Han & McConville, 2018). TV advertising campaign and joint venture are two of the most significant ways of generating brand awareness among the customers. Intense awareness regarding Cocoa Delights can also lead the customers to be inclined towards referring the brand to other. This can act as a mouth marketing method, with the assistance of which, Cocoa Delights can be able to acquire more number of customer. This is the key factor of increasing statistics of profit. In addition, accomplishment of the objective of producing machine mode of chocolate will support Cocoa Delights to promote sustainable growth of their business by expanding their product line (Wood, 2018).

8. Role of objectives is meeting the legal and ethical requirement:

Satisfaction of legal and ethical requirements is very much needed in order to strengthen the public image of a company. It is the aim of Cocoa Delights to be the giant in the retail segment of Australia by expanding business in much wider domain. However, there are certain legal issues, which Cocoa Delights must keep in mind while planning to expand their business. Certain legal issues are there in joint venture due to different rules of different companies. As Cocoa Delights is going to accept the proposal of Haigh’s Chocolates, they should make separate legal agreement. The inclusion of such separate agreement is very much needed for meeting the legal requirements.

Government is one of the greatest external stakeholders of an organization. Therefore, the corporate entities should be highly committed towards meeting the governmental requirements. Recently. Australian government is putting ample stress on the waste management, which is the key of protecting the environmental well-being. Sustainability is one of the major issues, being focused by Australian government in recent times. It is true that prior to such rules and regulations, Cocoa Delights used to design shops very brightly, which required increased electricity in order to operate the lights along with air conditioners. However, after the execution of sustainability related to regulations, Cocoa Delights has cut the electricity usage by running the business in a unique way. This is the way, through which Cocoa Delights is satisfying the ethical requirements.

Part B: Long term strategic objectives

Risk management strategy:

Risk management can be regarded as the way of identifying and evaluating risk and undertake actions accordingly in terms of overcoming the challenges and thereby maintain consistency of business. There are certain challenges such as lack of capital, appropriate infrastructure, which Cocoa Delights can face as they are aiming to franchise their business. In order to overcome the challenges of franchising, it is imperative for Cocoa Delights to have adequate franchise documentation. This can serve them with the ability to mitigate any kind of legal issues. Lack of ample human resources is also a major challenges in the expansion of business (Ocasio, Laamanen & Vaara, 2018). Thus, Cocoa Delights should execute effective requitement session. Training must also be provided to the staffs regarding the going trend and along with the requirements of the customers. Record keeping, too us a vital risk management strategy, needs to be implemented by Cocoa Delights in order to keep the staffs informed regarding the latest trend in Australian food and beverage industry.

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