Management Decision Making for Heavenly Chocolate Company

Running head: ASSIGNMENT 1 1
Assignment 1
Name
Institution

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Table of Contents
Introduction to the report.............................................................................................................3
Management decision to be made................................................................................................3
Main research objectives.............................................................................................................5
Sources of Secondary data...........................................................................................................7
Primary collection method...........................................................................................................9

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Introduction to the report
This report will be centered on reading the case study for purposes of getting the context
and finding the problems that are currently facing Heavenly Chocolate Company. Once the
issues have been identified, the report will concentrate on finding relevant secondary sources that
has information to put the issue into context. Further, the research will focus on the objectives
which will be significant in highlighting the causes of the issues that Heavenly Chocolate is
currently facing in order to know how the issues can be addressed. Nonetheless, the research will
involve secondary sources and the report will identify the sources as well as discuss the
advantages and disadvantages of the sources with respect to the case study. Lastly, the report will
focus on the primary collection method that will be used by discussing its advantages and
disadvantages in order to justify the method as appropriate for the study.
Management decision to be made
The issue at hand with Heavenly Chocolates case study relates to the need to come up
with strategies to increase sales demand and create a sustainable business. The company is
currently losing its online clients as a result of lack of production capacity to meet the demands
for their products. The company has been in existent for over 20 years selling quality chocolate
from its retail store. The issues surrounding this company began when it launched its business to
the international market which consequently led to unexpected demand that the company could
no longer provide.
Production and capacity planning is an integral part of a company to ensure that it is able
to meet demand for the products (Cheng, Fu, & Lai, 2018). Effectively production planning is
significant because it influences the profitability of the company. Therefore, production capacity
is dependent on how many products are required to be sold, planning appropriate capacity and

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develop production timelines that will eliminate unnecessary costs. However, production and
capacity planning requires sources of information and reliable data in order to forecast the level
of production. For instance, past performance of a company is significant in providing reliable
data that can be used in making accurate predictions (Sagaert et al, 2018). Depending on the
nature of the production a company can assess whether to increase or reduce production
capacity.
Another issue that is important in planning production and capacity is marketing
projections. Marketing strategy plays a crucial role in developing production and capacity plans
because it helps to predict increased sales and production through lowering costs and competing
price (Mariel & Minner, 2015). Besides, the orders received are significant to assist a company
in making strategic decisions with regards to production capacity. Also, advance sales from a
company sales records is equally important in making the right forecasting for increasing
production capacity (Hedenstierna & Disney, 2018).
Majority of businesses often face various challenges. When businesses begin to grow,
they require various solutions to challenges and opportunities (Chauhan, Nagi & Proth, 2004).
The ability to recognize and overcome an impending challenge is essential for the growth and
sustainability of a business. However, it is important to ensure that the steps taken are not likely
to create additional problem like the case with Heavenly Chocolate. This is because the company
was experiencing the challenge of expansion and increasing sales which brought another
problem that involves capacity production and planning (Bunn & Oliveira, 2016).
In this regard, there are several strategies that can play a significant role in addressing the
growth and sustainability (Nguyen & Wang, 2019). The business has to ensure that it is able to
keep up with the market by understanding the various aspects such as market share and