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Theo Chocolate Case Solution

Solution Id Length Case Author Case Publisher
2351 1839 Words (6 Pages) Michael Cummings, Gary Ottley Babson College : BAB692
This solution includes: A Word File A Word File

To briefly conclude the findings within this case assignment, Theo Chocolate laddered success within the chocolate industry via adhering to the Pyramid of Social Responsibility, following a structure of social responsibility ingrained with high standards of quality and transparency within the corporation allowed for the company to achieve success. Consideration for the global community and sustainable sourcing of products helped the company acclaim its own identity within the ethical aspect of the global economy. Recognition within consumers is influenced by strict adherence to the objective of each branch, therefore, such a focus on standards allowed for a direct translation between upholding social responsibility within the corporation allowing for consumers to benefit from the focus on such a notion, whereas the business garnered profit via the establishment of trust within the marketplace. The health of the economy itself has a significant impact on all of the details that arise in a company, such as a customer demand, taxation, and asset value. 

Following questions are answered in this case study solution

  1. Based on the information given in the case study, do you believe Theo Chocolate would be profitable by 2012?

  2. Going forward should Theo compromise the principles on which it build its reputation and value preposition? Can it be made profitable doing so? 

  3. Where do you think the opportunities for growth for the company lie? How do you analyze the option? Which would you choose?

  4. a) What should be the objectives for the Theo consumer brand over the next five years?

    b) Based upon your choice above, how should Debra Music manage the consumer brand? What marketing and sales tactics should she employ to achieve these objectives? 

    c) Should Debra Music attempt to build a B2B brand? Why? If so, how should she go about doing this?

Case Analysis for Theo Chocolate Case Solution

1. Based on the information given in the case study, do you believe Theo Chocolate would be profitable by 2012?

Many chocolate companies want great-tasting chocolate at a low price to get more customers and provide the best quality chocolate. A recent study with Australian chocolate consumers has found that packaging has a major liking for chocolate and causes people to buy more. In today's food market, many people look at ingredients and consider whether it's nutritional or not. As this is what people are focusing on, that brings consumers to now look at the quality and check ingredients lists. Gluten-free, dairy-free, and vegan chocolate is what is in demand for chocolate but consumers are looking for in their food. The more people's needs are met, the larger the number of buyers will come. For instance, the demand for cocoa is increasing in many countries around the world causing consumers to limit their supply of cocoa.

The chocolate industry has changed many things such as the way people farm, process, etc. The main economic issue is currently, child labor and intensive farming causing the soil to be severely damaged. Many children are kidnapped and put into child trafficking circles causing them to work intensive long hours without pay. If the children try to run away and get caught, they will be severely harmed. As Africa is the main source of where cocoa beans are harvested from, it is also the capital of child labor. Many children are “employed” by their own families or work because their parents cannot due to health reasons. Cocoa farming requires serious labor and maintenance, and many children earn about $1.25 per hour. The chocolate industry has been called upon to rescue and rehabilitate children who have been sold to cocoa farms, to this day nothing has been done and has failed to take action. These billion-dollar companies are profiting off of them and refuse to say where their cocoa is sourced. Theo chocolate's mission is to produce organic and fair-trade cocoa. Their company pays above-market prices to farmers for their cocoa and does not support child labor. When cocoa is harvested, farming wears out the soil underneath it and farmers cannot afford to replace old and diseased cocoa trees and find new farmland for cocoa. Instead of growing farmers' reviews, current cocoa practices can cause severe harm to the government and are not unsustainable.

2. Going forward should Theo compromise the principles on which it builds its reputation and value proposition? Can it be made profitable doing so?

The company values the opinions of its customers as they ensure that the products are produced ethically and provide all the necessary information that buyers should be able to obtain before they decide to buy chocolate from them. Business ethics play an important role in the development of a successful business and Theo Chocolate strives to meet the needs of its consumers. Employees also play an important role in making the chocolate when cocoa stocks have arrived. Transportation, development, management, marketing, and financing teams are equally respected in terms of wages and collaboration. Investors of the business, along with government regulators are also important to the economic growth of the company; this is another reason why full transparency and honesty are sworn towards all stakeholders. Third-party verification is implemented to make sure that "Theo product is helping to create better lives for everyone".

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