Applied Business Research on Whittaker's Chocolate Company

This research paper discusses the marketing and business models used by Whittaker's Chocolate Company in New Zealand. It covers key theories and models that underpin various contemporary resource integration management practices, strategic resources and their potential to provide competitive advantage(s), and key strategic concepts or factors guiding or affecting planning, policy development, implementation and management of resource integration.

Running head: APPLIED BUSINESS RESEARCH
APPLIED BUSINESS RESEARCH

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APPLIED BUSINESS RESEARCH
Table of contents
Introduction......................................................................................................................................3
i. Key theories and models that underpin various contemporary resource integration management
practices...........................................................................................................................................3
a. An in-depth description of the respective transformation process (Tangible-, Intangible- and
Human resources employed)...........................................................................................................3
b. A discussion on core vs. value-adding services (processes) and trade-offs face.........................5
c. A discussion of strategic resources and their potential to provide competitive advantage(s).....6
ii. key strategic concepts or factors guiding or affecting planning, policy development,
implementation and management of resource integration...............................................................7
a. A discussion of the company’s competitive advantage(s) and their sustainability.....................7
b. An outline (discussion/contrast) of the main performance objectives and associated strategic
decision areas...................................................................................................................................8
c. An outline of key suppliers and a discussion of current SCM ( supply chain management
system ) practices.............................................................................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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APPLIED BUSINESS RESEARCH
Introduction
Business operations and organizations turn in the market are hugely dependent on the approach
which they take while operating. It is to be mentioned that usage of theories and model have
increased in modern business operation context. There are various concepts and strategies which
company have used in order to gain competency and achieve competitive advantage in the
market. In this assessment there will be discussion over some theories and concept which has
been applied to firm and how it helps the organization to fair well in the market. The company
which has been taken into consideration is Whittaker’s Chocolate Company. The company was
established in the 1986 and currently operate in New Zealand. It operates as an confectionery
manufacturer in the country and has been operate from the last 120 year which show that the
company has sustained it market over the past few decades.
Paper Purpose
The core purpose of the current assessment is to discuss about the marketing as well as the
business models used by the Whittaker in order to operate in the New Zealand Confectionary
industry. The different dimension of both operational and marketing aspects will be covered
within the assessment.
Scope
The scope of the project is to define the marketing environment role within an organizations
operational activities and the ways in which the following impact on the overall operational
performance of the organization. The scope of the project is to show the ways in which operation
within a firm is affected by the marketing and external environment.

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APPLIED BUSINESS RESEARCH
Limitation
The assessment is limited by the focus on a particular company which is Whittaker. Hence there
will be discussion over the company only as the following will be used as tool for discussion.
There will not be an overall discussion which can be made over the subject as the discussion will
only be limited to the company.
i. Key theories and models that underpin various contemporary resource
integration management practices
a. An in-depth description of the respective transformation process
(Tangible-, Intangible- and Human resources employed)
The company was established in the year 1968 in Macclesfield. The founder of the company was
J.H Whittaker. The company initially started as the founder started manufacturing chocolates and
became famous in the city. After the increase of the manufacturing size the business shifted to
Wellington in the 1940s (Bocken et al. 2014). The proprietor then started to expand the
manufacturing of the company in different parts of New Zealand. The company started to grow
and was soon recognised as one of the best chocolate manufacturing companies in the country.
As the operational areas of the company expanded its operational activities as well as its human
resource size increased. The tangibles and intangibles of the company he also increased with the
increase of its financial assets (Martins, Rindova & Greenbaum, 2015). It is to be mentioned that
the Company also operates its operation all around New Zealand. The company has expanded its
market all around the country and in 2014 the company also expanded in Malaysia which shows
its operational process. It is to be mentioned that as the company has grown into a chocolate
manufacturing giant in the country it has also diversified its work force and operational area

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(Foss & Saebi, 2017). This shows that the company has transformed itself into a confectionery
giant which is why it is said that the company has used effective module and concepts to operate
in the New Zealand as well as international market. The company followed manufacturing
business model in order to initiate and operate in the market. The diagram of it is as follows:
b. A discussion on core vs. value-adding services (processes) and trade-offs
face
The company’s core value is to be like the be the best chocolate manufacture in the country and
eventually in all over the world. It can be said that the company wants to achieve the highest
valuation the norms of achievement and brand value. The Whittaker's chocolate company is
established at 1896, started at a very small scale and eventually becoming one of the leader in the

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chocolate selling segment in the country of New Zealand. Initially, when the company just
started, the owner of the company struggled very much in order to arrange capital to produce the
chocolate and sell to the customers. The starting phase for any company is difflicialt to to stand
and at time of the company, it has only one type of product, which ofcore was a super favorite in
the market. The company’s main focus is on the long-term marketing excellence in order to gain
the trust of the customer as the brand name and also of their products. In New Zealand the
company has also been awarded by the most trusted brand value for seventh year continuously,
these creates a positive image in the customer's mind and add value to the brand image of the
company. The company has placed its pricing strategy very adequately in order order to maintain
the equality in their products, they are value based pricing, competition based pricing ,
differential Pricing and Bundle pricing. These were the four kind of pricing strategy used by the
company. The company also uses the top quality coco materials in their chocolate making
process and portray in the websites and the advertisements (Juga, Juntunen & Paananen, 2018).
These are easily compared by the other brands and in comparison the company shows its
excellence as their product contains the best in class cocoa powder and best old techniques. The
numbers can be seen clearly in the company’s website.
c. A discussion of strategic resources and their potential to provide
competitive advantage(s)
The strategic resources of the company are the many aspects and combining these aspects the
company stands out the strategic results and outcomes. The strategic resources like the materials
used in the making process of the chocolate bars and shown portrays in the advertisement,
comparing with the other chocolate brand results in the best echolocate manufactured by the
company. This is the strategy used by the company in order to attain the several aspects in

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marketing , customer trust and many more aspects ( Wei & Clegg, 2018). The other resources
can be the distribution network , the company only manufacture in a city in New Zealand but
their products sells all over the New Zealand. The company also export their product to the
nearby countries and few more, the demand in foreign countries also are very nice. These can be
only attended by the help of a good distribution network and the company has already have it.
The company has executed a good necessary marketing strategy, and it is very necessary in order
to maintain the brand value and sales of the products. The marketing companies like Assignment
Group, MBM, Twin Agencies, etc help the Whittaker’s to advertise and keep the company ahead
of the competitors. This strategy includes the showcasing of the fact that the Whittaker’s
includes the best in class of the chocolate raw materials which are not provided by the
competitors in the market (Torres, Mayo & Jiménez, 2018). The company’s product also
contains more amount of cocoa powder, measured in percentage than that of the top chocolate
selling brands in the country. Thus helping to say ahead in the competition. The 2017 the
Whittaker’s has been also awarded the best marketing strategy award by bar one.
ii. key strategic concepts or factors guiding or affecting planning, policy
development, implementation and management of resource integration
a. A discussion of the company’s competitive advantage(s) and their
sustainability
The company’s massive marketing strategies and good distribution network help the Whittaker’s
to compete with the global giants ( cadbury and nestle ). The company stands out well in the
strategic competition with the competitors. The Whittaker’s have quality products to stand out in
the front of the global giants (Hatch & Howland 2015). The company potary their usage of raw

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materials (quality ones, hard to find and brings from the remote places on earth) and claims the
better products than that of the competitors. The company also offer value for money for their
products in the market, in that cases the company already being ahead from the competitors. It
showcase in their contents used in the back of their products and also in front of their wrappers in
bold, the amount of cocoa content used in making of the chocolate (cocoa being the main main
ingredients for chocolate), also the types of sugar content in the chocolate bar used are very good
for health as compared with that of the competitor. These strategy of the Whittaker’s chocolate
company helps them to stay ahead of the competitors. The Whittaker’s have been awarded by
the New Zealand’s most trusted brand from past seven years in a row. The company have
potential to sustain there positive outcome as seen from results and in the upcoming years the
company is more likely to hold its progress report (Baker & Sinkula 2015).
b. An outline (discussion/contrast) of the main performance objectives and
associated strategic decision areas
Whittaker’s is the top-selling dark chocolate company in New Zealand and has been certified
with the Fairtrade. Whittaker’s is the exclusive chocolate sponsor for Oxfam’s ‘Biggest
Chocolate Break’ and ‘Biggest Coffee Break’. 72 percent Dark Ghana and 5 Roll Refined
Creamy Milk are the two top-selling 250 mg block of Whittaker’s Chocolate company. The main

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performance objective of this chocolate company is to provide the best quality of Dark Chocolate
to their sponsors and customers and remain the topmost dark chocolate brand of New Zealand.
This company used vegan method to prepare the chocolates i.e. no solid milk which adds one of
the best features to their chocolates (Lin, Wang & Ellingwood 2016). They forward their quality
of chocolate by using cocoa butter and cocoa milk. Whittaker’s company give the first
preference to their customers or public relation as a public relation is also one of the important
factor for the company performance. They also focus on the customer’s loyalty. This customer
loyalty is preferred by the company in consumer promotion which ensures that customers will
have a long-term relationship with the company. Whittaker’s use packaging, loyalty schemes,
refunds and exhibitions to attract their customers attentions. Whittaker’s main objective is to
attract customers to purchase chocolates made by their company instead of other brands.
The main strategy that the company uses to distributes or sell their products to the selected or
limited areas or people. This method of distribution is opposite to an open distribution system but
works well and in favor of Whittaker's chocolate company. This method of distribution has its
own charm and beauty because this method of distribution decreases the competition of area and
increases the margin of profit. Other global companies like Cadbury or Nestle use the open
distribution system and they will not able to survive in business territories of Whittaker's as
Whittaker's are surviving in this territories from a century long. A foreign brand cannot able to
afford such high-cost rate of production because of international taxes. And if they try to launch
their product by slightly cost cutting in their quality then the new customers will bring more
interest to their previous brand of chocolate. And is whole this will make Whittaker's chocolate
company more successful (Katzenbach & Smith 2015). The strategies that the company should
use to increase their sales and profit are to promote their line of products very well and in an

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efficient manner to the customers. They can design and arrange promotional campaigns in other
countries in their regional language, they can also use facebook, twitter or any social media
website to promote their products and customer will able to see their new flavour or existing
product. The other strategy that a company can be used to distribute their products are direct,
indirect or channel distribution method. A company should start giving their franchisees and or
open their own branch outlets to different areas at the continental level. Some important factor
that company should keep in mind are quality of the product, pricing of the product and product
placement as well (Fitzpatrick, 2016).
VRIO Analysis
Value: As the company is known to be operating from 120 years. It has become very evident
that company has increased its value in the market. The manufacturing unit of the company is
also very large the resources are high which makes the value of the company high. The goodwill
and brand image of the company is also high in the market which increases the value of the firm.
Rarity: It is not that chocolates are rare in the market but the quality of chocolate and premium
taste of chocolates manufactured by the company. Hence it can be said that manufacture of the
company can only provided by Whittaker’s.
Inimitability: As the quality of the chocolates are different and are of premium quality it can be
said that products cannot be imitable by another company. Although there can be another which
provide better chocolates which enhanced in taste and quality.
Organization: The organizational size of Whitakers is large and is one of biggest confectionary
in the country and has huge brand presence in the market which gives it an advantage over others
in the market.

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c. An outline of key suppliers and a discussion of current SCM ( supply chain
management system ) practices
Suppliers are a very important element within an organisation which is manufacturing a product.
Manufacturing without proper supplies cannot be possible because it is important that there are
sufficient raw materials which can be processed under the production of the company and the
same goes with the subjected firm (Jacobs, Chase & Lummus 2014). It is Important to consider
that for having sufficient supplies there is a need of multiple suppliers which will resource the
supplies of the company and help the company in its manufacturing process. It is to be noted
that Whittakers are a prominent company within the New Zealand confectionery industry. As it
has been operating in the country for a many decades it is very essential and easy to say that the
company has efficient and evident number of suppliers which help the company in operating and
manufacturing chocolates efficiently. It is also to be mentioned that in order to have sufficient
supplies for manufacturing purpose there is a need of creating an effective and formidable supply
chain management. Seeing the structure of the subjected company it has become very clear that
Whittaker is efficient in supply chain management enabling the company to get raw materials
and office supplies at an efficient and affordable rate complying with delivery time at the time
when the raw materials are really needed by the company (Christopher, 2016). The reorder
quantity of the company depends on a certain margin which the company keeps. Through the
company's website it has become very evident that the company is certified from Fairtrade
Corporation. As a company it is known for producing quality chocolates and it is evident that the
raw materials used in production of chocolate will also be of premium quality. It is to be noted
that the company trades with suppliers which are known for providing premium raw materials
for chocolate production and are certified from Fairtrade Corporation. The sugar, the chocolates

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and the coffee which are major components and raw materials for the production of chocolates in
the company are traded from suppliers of Ghana, Fiji and Australia. This shows that the
company has efficient number of suppliers which supply premium quality of products enhancing
the quality of production which is undertaken through the supplies supplied by the suppliers of
the company.
The company also follows simple supply chain management it is to be mentioned that there is
efficient communication between manufacturing houses to the warehouses to the suppliers which
is managed by the supply chain management of the company. In this way the company is able to
manage their raw material suppliers and also their communication with suppliers within the
overall process of supplying raw materials in the company. This helps a company in proper
manufacturing of product efficiently used by the company in their manufacturing process. This
shows that the manufacturing process of the company is usually supported by its supply chain
management of the company and helps in developing an efficient standard of production which
increases the quality of chocolate which is produced by the firm ( Hugos, 2018).
Conclusion
Concluding in the light of above context it can be said that the company has been successful in
operating for 120 years now. As the operational dimensions and marketing environment around
the country as well as in the international market are changing it is important to consider that the
strategies of the company should change in a specific manner. This will help in adapting to
changes in the current environment which is there in the international market. As for now it
seems that the company is growing and is expanding in diverse regions as well as in international
markets. This would benefit both the financial as well as operational size of the company we
making it stronger in every aspect and process.

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References
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Organizational Unlearning. In Proceedings of the 1999 Academy of Marketing Science
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