Heavenly Chocolates: Business Decision Making and Strategy Report

This report provides an in-depth analysis of Heavenly Chocolates, a company facing challenges due to limited production capacity. The report examines the impact of these limitations on sales, customer base, and competitive advantage. It outlines the research objectives, including analyzing strategies to enhance performance, assess the relationship between sales and location, evaluate distribution partnerships, determine website effectiveness, and analyze the suitability of a second retail outlet. The research methodology includes both primary and secondary data collection methods, such as questionnaires and analysis of existing data. The report recommends the use of normative decision theory, decision theory, and Kotter's 8-step change model to implement effective strategies for production capacity, customer retention, and market expansion. The report aims to provide strategic recommendations to the management of Heavenly Chocolates to address the challenges and achieve sustainable growth.

RUNNING HEAD: BUSINESS DECISION MAKING
Business Decision Making

BUSINESS DECISION MAKING 1
Executive summary
This report has been executed with a motive to analyse the manner in which Heavenly
Chocolates can enhance the performance of the company. Heavenly Chocolates is facing
several issues due to lack of production capacity of the company. This issue has resulted in
depletion in the performance of the company. These issues included a decrease in the sales,
losing competitive advantage, losing customers and profits of the company. Primary and
secondary methods of data collection have been used by Heavenly Chocolates for conducting
the research. This research has helped in gathering quality data which has helped the
management of Heavenly Chocolates in decision making. For the purpose of taking decisions
and implementing the proposed changes in the internal environment of Heavenly Chocolates,
it can adopt normative theory, decisions theory and Kotter’s 8 step change model. These
approaches or theories have helped in taking appropriate decision and implementing the same
in an effective manner.

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Table of Contents
Introduction................................................................................................................................3
Management decision to be made..............................................................................................5
Main research objectives............................................................................................................6
Sources of data (secondary).......................................................................................................7
Primary data collection method.................................................................................................9
Recommendations....................................................................................................................10
References................................................................................................................................11

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Introduction
Heavenly Chocolates is engaged in manufacturing and selling of the quality chocolate
products through its retail outlet. Its retail outlet is located at Hay Market of Sydney.
Heavenly Chocolates is offering premium chocolates and dark chocolate pralines for
enhancing the satisfaction level of its customers (Heavenly Chocolate, 2017). A website was
developed by Heavenly Chocolates ten years ago which was used for meeting the demands of
the local people. Two years ago, services of its website were available for international
market. This step of Heavenly Chocolates resulted in a rise in the customers and demands for
the products offered. Heavenly Chocolates was unable to match up with the demand and lose
its online customers due to lack of production capacity to meet the demand. This has affected
the customer base, sales, profitability and reputation of the Heavenly Chocolates.
Management of Heavenly Chocolates is planning to adopt strategies which will boost up the
production process and will contribute towards meeting the demands of the customers.
This report will discuss the research carried out for analysing the different strategies.
This research proposal will cover the problem statement discussing the problem faced by
Heavenly Chocolates along with the objectives behind conducting the research. Objectives
will be set for attaining the desired goals of the Heavenly Chocolates. Different methods will
be discussed which will be used for the collection of data for the proposed research along
with the advantages and disadvantages associated with the method or source of data
collection. Recommendations will be given to the management of Heavenly Chocolates for
coping with the problem faced by them on the basis of the information collected with the help
of primary and secondary sources of data collection. The discussion will be made for
analysing the effectiveness of the strategies Heavenly Chocolates is planning to adopt for
coping with the problems faced by it due to improper production capacity.

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Figure 1: Heavenly chocolates
Source: (Heavenly chocolate, 2017)

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Management decision to be made
In this dynamic business environment, every organisation is using the internet for the
promotion of the business, attracting customers for enhancing customer base and expansion
of the area of operation. This motive helps in gaining a competitive advantage over the others
in the business environment. Heavenly Chocolates has established a good reputation in the
market as it is offering quality chocolates to its customers in Sydney as well as at global
level. Heavenly Chocolates is operating in a competitive environment and facing tough
competition due to the slow production capacity for meeting the demands. Sales of the
Heavenly Chocolates are getting affected due to the inability to meet the increasing demand.
This has affected the customer base of Heavenly Chocolates as well as resulted in an increase
in the competition for Heavenly Chocolates. This has raised a concern for the management
for meeting demands of the customers by adopting strategies. These issues are affecting the
expansion and growth of the business as well as chances of success of the business. Strategies
need to be adopted for the purpose of matching with the increasing demand, retaining
customers for gaining competitive advantage and sustaining future growth.

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Main research objectives
Objectives have been formulated for a research with a motive to execute the research in a
proper direction by guiding towards the right goal. Heavenly Chocolates is facing issues due
to the lack of production capacity required for meeting the increasing demand of the
customers. Heavenly Chocolates is planning to conduct a research so as to analyse the
manner in which it can cope with the issues faced and enhance the performance by gaining a
competitive advantage over the competitors. Objectives of this research proposal are listed
below:
 To analyse the manner in which Heavenly Chocolates can enhance its performance
and match up with the increasing demand of the customers.
 To analyse whether there is a relation between sales and location.
 To identify the suitability of distribution partnership for the overseas market.
 To determine the level of effectiveness of the website in promoting the products
offered by Heavenly Chocolates.
 To analyse the suitability of the location for opening a second retail outlet.

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Sources of data (secondary)
Secondary sources can be understood as the second-hand information which other researchers
have gathered with a motive to execute their research works (Cheng & Phillips, 2014). This
form of data is more reliable as it has been used by others. Secondary sources will be used for
collecting information related to the competitors and analysis of the business environment
(Community Science, 2017). Heavenly Chocolates need to develop the knowledge of the
business environment and competitors so as to analyse the measures or strategies it can adapt
for resolving the issues faced by it. For the collection of data for executing this research,
published data, personnel records, financial reports of the company, journals for analysing
market trend and competitor analysis, internet and website of the company will be used
(Johnston, 2014). These forms of secondary sources will be used for collecting details related
to the company, business environment in which company is operating, analysing the
strategies which can be used by Heavenly Chocolates. It is vital for Heavenly Chocolates to
develop an understanding of the different aspects of the business environment so as to select
an appropriate strategy. All these forms of secondary sources of data will be used for the
analysis of the problems as well as solutions to these problems (Mwamadzingo, 2011).
Heavenly Chocolates need to adopt strategies for the problems faced by it as these problems
are creating an impact on the overall performance of the company. These strategies need to
be analysed with the help of data collected from reliable sources.
There are various advantages of using secondary sources of data collection. These
advantages include reducing the time, efforts and cost, easy accessibility, helps in collecting
specific data, develops a better understanding of the problem and eliminates biasedness (Hox
& Boeije, 2014). With the advancement of the technology, secondary sources of data get
collected in an easy manner which has provided cost, effort and time benefit. The secondary

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form of data can be collected from the library which ensures that quality data is collected for
the identification of the problems and matching with the objectives. Secondary sources are
more reliable as they have been collected by others and approved (López, 2017). There are
few disadvantages of secondary sources of data and these disadvantages include lack of
proper control or check the quality of the data collected, out-dated data, lack of availability of
sufficient data and data can be inappropriate. Data collected must be as per the need of the
objectives and problems identified in the research program (Acaps, 2012).

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Primary data collection method
Primary data is the raw form of data which is collected by the researcher specifically for its
research program. This form of data is considered less reliable as information collected with
the help of primary sources of data may get affected due to personal views of the individual.
Original data is collected in the primary source of data collection. Different types of primary
data can be collected as per the requirement of the business (Litteacher8, 2012). Heavenly
Chocolates will use primary sources of data collection for collecting information related to
the business. This information related to the business helps in identifying the capabilities or
strengths which will help in enhancing the performance of the business. Primary data will
also help in identifying the aspects in which Heavenly Chocolates is lacking. Different types
of primary data can be collected and these different types of primary data include interviews,
observations, experiments and questionnaire (Flintermann, 2014). Heavenly Chocolates will
use a questionnaire for collecting first-hand information from the employees and regular
customers of the company who will help in providing valuable information to Heavenly
Chocolates. There are various advantages and disadvantages associated with the use of a
primary source of data collection. Advantages of primary sources of data collection include
identification of the issues, interpretation of the data in a better manner, provide recent data
and reduce the wastage of resources as efforts are directed towards the goals and objectives
(Thomas, 2015). There are few disadvantages of primary data collection method which are an
increase in the cost of the Heavenly Chocolates, time-consuming process, feedbacks provided
may get affected due to personal judgement and requirement of more resources (Weijun,
2008). Heavenly Chocolates will use questionnaire so as to collect the information and
analysing the information for implementing the results for improving the performance and
attaining the objectives.

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Recommendations
Heavenly Chocolates will use the collected information for improving the issues or the
problems faced by it. Analysis of the different strategies will help in gaining an
understanding of the measures which can help in contributing towards the performance of the
business. Heavenly Chocolates will use primary and secondary sources of data which will
help in collecting relevant data. This collected information will help management of
Heavenly Chocolates is taking decisions regarding the expansion of the business, adopting
strategies for enhancing the production capacity, along with the expansion of the customer
base and offering the products in the international market. Normative decision theory can be
used by Heavenly Chocolates which will help the company in taking best and most
appropriate decision that will generate the desired outcome and solve the problems faced by
Heavenly Chocolates. Heavenly Chocolates can also adopt decisions theory of management
which will help in choosing the best alternative. Kotter’s 8 step change model can be used by
Heavenly Chocolates for implementing the changes it is planning to implement for coping
with the lack of effective production capacity.

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References
Acaps. (2012). Qualitative and Quantitative Research Techniques for Humanitarian Needs
Assessment. Acaps.
Cheng, H. G., & Phillips, M. R. (2014). Secondary analysis of existing data: opportunities
and implementation. Shanghai Archives of Psychiatry, 26(6), 371–375.
http://doi.org/10.11919/j.issn.1002-0829.214171
Community Science. (2017). Tips for Collecting, Reviewing, and Analyzing Secondary Data.
Community science.
Flintermann, B. (2014). The quality of market research reports The case of Marketline
Advantage and the automobile industry. University of Twente.
Heavenly Chocolate. (2017). About. Heavenly Chocolate. Accessed on: 24 August 2017.
Retrieved from: https://www.heavenly-chocolate.com/contact/
Hox, J. J. & Boeije, H. R. (2014). Data collection, Primary vs. Secondary. Research Gate.
Johnston, M. P., 2014, “Secondary Data Analysis:A Method of which the Time Has Come”,
Qualitative and Quantitative Methods in Libraries, pp. 619 –626.
litteacher8. (2012). What are three advantages and limitations of primary research data
collection?. Enotes. Accessed on: 24 August 2017. Retrieved from:
https://www.enotes.com/homework-help/provide-three-advantages-limitations-
primary-366466
López, X. S. P. S. (2017). Secondary Data: sources, advantages and disadvantages. Research
Gate.
Mwamadzingo, M. (2011). Techniques for data collection. ILO.
Thomas, J. A., 2015, “Using unstructured diaries for primary data collection”, Nurse
researcher, vol. 22, no. 5, pp. 25.