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Hi, need to submit a 1750 words essay on the topic Integrated assessment on case study for Choc Deluxe.Management decisions in times of business crisis are very crucial for the success of the firm and
Hi, need to submit a 1750 words essay on the topic Integrated assessment on case study for Choc Deluxe.
Management decisions in times of business crisis are very crucial for the success of the firm and continuity through the crisis. Choc-Deluxe is facing a shortage of its main raw material, chocolate. Unfortunately for the company, its chocolate forms its competitive advantage in the market since customers are willing to pay more for the chocolate. This implies that the firm had to devise ways to overcome the pending problem.
The management decided to sort the pending orders through a substitute product carob. The product is believed to have similar taste to cacao and thus could be used to make chocolate bars for the Christmas season. The plan backfired as the customers lodge complaints and legal suits about the low quality chocolate. Consequently, the firm did not disclose accurate information about the contents of its chocolate as required by law.
The situation in the cocoa market is that there is more demand for raw cocoa than supply. The situation is that more cocoa is being consumed that it is actually grown. This had led to decline in the supplies of cocoa. According to the laws of demand and supply, prices shoot up when demand exceeds supply (Arnold 2010, p.87). Increased demand in fast developing countries such as India, China and Brazil among other markets, leave cocoa dependent firms in a dilemma on substitute raw material (Mùˆller 2011, p.8).
Cocoa plants take around 5 years to mature. This implies that there is an urgent need to address the prevailing problem otherwise firms would go bankrupt before new plants mature. This is due to the high cost of obtaining pure cocoa and more firms willing to pay more for the product. Shortage of cocoa can be attributed to increased globalization that leads to the emergence of many firms that use cocoa as raw material (Dand 2011 p.79-87). The commodity became very valuable and
