Charles Chocolate Case

Charles chocolate is one of the best quality chocolate produces in its industry. Not only it has won

various awards for having the best taste chocolate, but also it has its loyal customers globally. It

operates out of a 24000 sq. foot factory which has about 130 employees (including management).

Charles Chocolates observed a huge hike in their sale season in the winter holiday season. There were a

few competitors in the market but Charles dominated a huge domestic market. A concern was that this

market was only in Eastern America. In order to increase sales, it was imperative to expand without

harming the traditional brand image of the company.

A new acquisition on Sandwich Heaven restaurant was perceived by the management to add value, but

after deeper analysis it was observed that the restaurant was actually involved huge selling and

administration costs. These costs led to reduction in liquidity for the company. Moreover, a few

operational and management issues were also affecting the smooth functioning and decision making

process for Charles. Under these conditions, the new director has been asked to double the size of the

company in the next 10 years.

In summer season the sales of chocolates was dependent on tourists. Since the tourism industry wasn’t

doing well, the sales dollar was reducing. However, a new market of ice-cream was observed. Two new

booths of ice-cream sales were doing really well.