Rogers Chocolate Case Study Example | Topics and Well Written Essays - 1250 words

Rogers Chocolate - Case Study Example Rogers’ sold chocolates, related specialty products and premium ice cream items. As Zietsma (2007) notes, firstly, competition was a point of concern since traditional players in the chocolate business were moving into the premium sector where Rogers’ had a presence (p 20). Secondly, there was a shift in consumer preferences towards organic chocolates. Moreover, consumers were becoming more environment conscious. There were significant costs involved in set up and cleaning involved in the production process. The disruption in schedules influenced by various factors was the cause for frequent out-of- stock situations faced by Rogers’. An ageing consumer base was also pertinent since there was no potential replacement for the eventual loss of customers. A traditional mindset of the employees meant that Rogers’ was not ready to reinvent itself in the present context. 2. PESTEL Analysis The political, economic, social, technological, environmental and legal is sues pertaining to Rogers’ are described in this section. 2.1 Political Change in governments affect the formulation and implementation of policies related to the chocolate industry. Rogers being in the premium chocolate segment, its products could be considered as elitist. A populist government could be at logger heads with Rogers’. Moreover, there could be pressure from political parties to unionise Rogers’ since the company would attract the attention of trade unions. Lobbying by competitors was also one of the threats that loomed over Rogers. Any decision which was the result of such bargaining could prove detrimental to the business interests of Rogers. The sales of Rogers’ outside Canada was also affected by the policies of foreign countries especially those of the US and Europe. Diplomatic stand offs between Canada and other nations would have a bearing on the bottom line of Rogers’. Every trade related treaty signed between Canada and other nations provided an opportunity to Rogers’. Likewise, when such treaties are abrogated, it is a threat to the activities at Rogers’. 2.2 Economic The changes in the economy also have a bearing on the fortunes of Rogers’. In times of recession, the sales of luxury goods are hit the most, which brings a drop in sales of premium chocolate. Further, cost cutting measures are required at every step in business. This could adversely affect the quality and hence the brand name of Rogers’. There could be a threat of layoffs in such cases. This would lead to change in employment patterns in the organisation as permanent staff is replaced by part-timers. The prices of raw materials could also increase leading to a hike in the prices of chocolates. This would make Rogers’ products unattractive in foreign markets. Economic sanctions against the countries providing raw materials to Rogers’ could hit production. Damage to crops, diversion of raw material s to competitors on account of better prices etc. are some of the other issues that can hamper production. This would make Rogers’ products unattractive in foreign markets. 2.3 Social Rogers’ had not packaged itself differently based on current trends. Hence, an ageing baby boomer generation remained its target audience. Though this group of consumers had an inclination for quality goods, eventually there would be no customers left if the younger generation does not replace them. Rogers’ marketing would have to change to reflect this reality. Similarly, the employees at Rogers’ were caught in a time warp as they had been in the same organisation for two to three generations. While there was cohesion among employees