Scharffen Berger Chocolate Maker Case Solution
Scharffen Berger must select when and where should it increase its capacity in the production line, as well as what technologies should it use. In addition, the company should increase its output both for short term as well as the long term due to the demand of marketing, the effect on reputation and quality and the economics of alternative approach. The company is also facing the problem of increasing the capabilities in delivering its star products to the frequently developing segment of the market.
Competitive Operational Priorities
Scharffen Berger is involved in the production of high-quality chocolates made from up to nine different types of cocoa beans that are usually obtained from all over the world. The company is able to take hold of the market share and to enhance its business operation due to its premium products and quality assurance. The primary competitive operational priority of the company is product quality which is followed by the process flexibility.
High-quality premium chocolates helped the company in achieving brand image and brand recognition. The foremost priority of Scharffen Berger is to offer a high-quality product and satisfy the customer’s expectations. The company’s head believed that as compared to any mechanical measurement tool; the good quality could be better judged by the skilled and highly potential operators. Therefore, the chocolates are examined by operators through taste, texture and looks.
The company doesn’t outsource any of its production processes because of its quality control process. The product requires high-quality product handling, therefore the company does the product packaging itself.
Another competitive priority of Scharffen burgers is the flexibility in its process. It is the concept of the process management that monitors how the operations respond to supply and demand factors. The product demand of the company has been increasing consistently and it is estimated that the demand would be tumbled soon, over time. The company has been selling its products through its own shops, but there is a significant desire from the mass-market retailers to offer Scharffen Berger products in their stores, which could raise the product demand by up to 30%. The company is showing significant improvement in the monthly production as compared to the prior production, to meet the increasing needs of demand, although the production capacity is not equivalent to the increasing product demand yet. To meet the increasing demand, the team of the company has now started to assess different production options.
It is noticed from the previous production trends that in the production’s capacity it can be noticed that the capacity of production has never operated at its maximum level;therefore, the company is seeking the best solution to incorporate the business process. Following processes were adopted by the company to respond to fulfill the increasing demand of customers……………………..
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