ChocoLab: Detailed Business Plan for a Chocolate Confectionery

This report outlines a comprehensive business plan for ChocoLab, a proposed chocolate confectionery aiming to produce high-quality, organic chocolates with diverse options. The plan details the company's vision, mission, and goals, including expansion through franchising. It analyzes management functions using the POLC framework (Planning, Organizing, Leading, Controlling) and includes a detailed SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to assess the business's market position and potential challenges. Furthermore, the report explores motivation strategies, such as creating a positive work environment, recognizing employee achievements, and offering competitive compensation. The plan emphasizes quality control, marketing strategies, and the importance of adapting to market trends to achieve sustainable growth and establish ChocoLab as a world-renowned chocolate brand. The company plans to open boutiques in major shopping centers and sell franchises to expand its business.

Table of Contents
INTRODUCTION....................................................................................................................................3
1.0 MANAGEMENT FUNCTIONS (POLC)..................................................................................................4
1.1 PLANNING.....................................................................................................................................4
1.2 ORGANIZING.................................................................................................................................4
1.3 LEADING.......................................................................................................................................5
1.4 CONTROLLING................................................................................................................................6
2.0 SWOT ANALYSIS...........................................................................................................................7
2.1 Strengths…………………………………………………………………………………..….8
2.2 Weaknesses..………………………………………………………………………………….9
2.3 Opportunities……………………………………………………………………………….10
2.4 THREATS.....................................................................................................................................10
3.0 MOTIVATION...............................................................................................................................11
3.1 CREATING A FRIENDLY WORK FORCE ENVIRONMENT..........................................................................11
3.2 ACKNOWLEDGING EMPLOYEE’S ACHIEVEMENT..................................................................................12
3.3 COMPENSATING EMPLOYEES..........................................................................................................12
3.4 DISCLOSING FINANCIAL BOOKS OF THE COMPANY TO THE EMPLOYEES..................................................12
3.5 ENCOURAGE CREATIVITY...............................................................................................................13
CONCLUSION.....................................................................................................................................13
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Introduction
Chocolate is a well-known product that is popular all over the world. Both children and adults
love it. After all, this is not only a delicacy but also a useful product that reduces stress,
energizes, and stimulates mental activity (Moscowitz, 2009). Many holidays like Christmas,
New Year, St. Valentine's, Halloween, and others are associated with chocolate, and on
weekdays, rarely would anyone refuse to treat himself/herself to this delicacy. In addition,
chocolate is widely used as a gift. Therefore, the demand for chocolate is stable in any economic
situation. All these factors make the production and sale of chocolate a promising line of
business.
The chocolate confectionery will be called ChocoLab, in the assortment of which a huge
selection of chocolate of elite quality will be presented, including options such as vegan, lactose-
free, low sugar for people with diabetes, ones with unusual fillings, as well as classic options.
The business will be represented as a sole partnership in the form of industrial production.
Chocolate will be made exclusively with organic high-quality ingredients and environmentally
friendly cooking methods. This implies a holistic approach to environmental protection and the
careful use of resources throughout the enterprise.
The vision of the business is to become a world famous chocolate brand. The mission of the
ChocoLab confectionery is to diversify the chocolate market, focusing on variety, high quality
and environmental friendliness. The company's goal is to open boutiques in the largest shopping
centers, and the further sale of franchises first to neighboring cities, and after - countries.
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1.0 Management functions (POLC)
1.1 Planning
The company’s long-term objective is to open 5 ChocoLab stores in Malaysia in the first year.
Goal for the second-year is to sale 11 franchises to neighboring countries, such as Brunei (2
franchises), China (4 franchises), Philippines (3 franchises), Singapore (2 franchises) and in the
third-year to sell 20 franchises throughout the world. Talking into consideration social culture by
opening franchises in foreign countries, this type of business will not have any problems with
other cultures, because the company is aiming to prepare the chocolate in such way, that it would
be suitable for every human-being. Firstly, the chocolate which we are producing does not
conflict with any religion. Secondly, it is environmentally friendly and lastly, the company is
equipped with modern equipment from leading world brands, such as: Chocotech (Germany),
Buhler (Switzerland), Aasted (Denmark), Winkler (Germany), the presence of such equipment
will allow to produce high-quality and delicious products. However, in order to achieve these
goals, the company should pay special attention to products quality. Employees must conduct
thorough work with suppliers of raw materials by selecting the highest quality components for
production.
1.2 Organizing
The company needs a well-thought-out organization of labor in order for all production and
sales sectors to proceed smoothly and correctly. Thus, СhocoLab needs the following highly
qualified employees.
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1) Technical and Production: This department uses their technical skills in the manufacturing
operations and is also focused on financial monitoring. The production department ensures that
the production and production plans are adequate and that the products are in the desired quantity
and quality as well.
2) Finance, Administration and HR: Finance & Administration office provides facilities for
the management of various departments including budgeting, finance, procurement and issues
related to information technology. The HR department is responsible for recruitment, selection
process, compliance staff training, health & safety issues, and rewards.
3) Sales and Marketing: The role of the sales department is to sell the products to the clients
and the function of marketing department is to promote the product through advertising.
4) Job designing: this department’s mission is to create an appropriate and convenient
workplace for employees in order to have high job-satisfaction among the employees. It is also
necessary to hire a few artists to develop packaging design.
The company’s staff consists of five super-qualified confectioners, two technologists, two
accountants, two salesmen, one marketing specialist, one qualified designer, two artists and three
cleaners.
1.3 Leading
In total, ChocoLab will have about twenty employees, and in order to maintain interest in the
work, the company needs to reward outstanding employees with bonuses in the form of an
additional financial fee. In addition, employees will strive for achievements that can make them
more motivated and more productive at work, which is also beneficial for the company.
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There is democratic type of leadership in ChocoLab Company. A democratic management
style considers subordinates as partners capable of solving current problems on their own. Such
employees have a high level of professional training, knowledge and experience. In order for a
democratic management style to be effective, ordinary employees of the organization must
possess the following qualities:
• high level of professional training
• desire and ability to take responsibility
• expressed need for independent action
• willingness and ability to answer for their actions
• craving for creativity and personal growth
• interest in work
• orientation to perspective life and organizational goals
Workers should have more freedom, due to feel themselves more comfortable and will be more
incline at their work.
1.4 Controlling
Since ChocoLab will differ in a number of qualities from other confectionery companies, such
as using exclusively fresh and high-quality ingredients, environmentally friendly production, as
well as guaranteeing a rich taste without any chemical additives or flavor enhancers, the presence
of regular quality control is one of the most important processes. Starting with quality, this is one
of the main categories that should be monitored. By the way, if it gets out of control, the
reputation of the company will be damaged. As a result, it can lead to a sharp reduction in
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customers. To prevent this, management needs to remember that ChocoLab is an elite company
that must ensure good supplies, which must be regular and fresh, so that the final product meets
the declared quality. It is also worth paying attention to timely replacement of equipment, regular
updating of certificates, and advanced training of employees to strive for the manufacture of the
best product.
It is also necessary to remember the financial control of the company, which will be under the
care of an accountant; we must also not forget about the role of the manager, who must regularly
monitor the performance of the organization and correct deviations when they arise in the
process of input/output conversion.
2. SWOT Analysis
2.1 Strength
Quality: Since consumers are constantly looking for better quality products every time they
wish to purchase any product, they might find ChocoLab’s chocolate among their interest. The
massive reports of illness caused by other brands of chocolates might pursue most of the
customers to switch to something of a better quality that helps them to enjoy chocolate and retain
health at the same time.
Action Plan: In order to achieve this goal, this company needs to do proper market research
and personalize its product giving a proper luxurious outlook that discriminates this chocolate
from the rest of the other chocolates.
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Sales Trend: Chocolate is among one of the most consumed snack by all age groups. This
secures a market for most of the population who are willing to pay for some luxurious chocolate.
Action Plan: In order to achieve this trait, the confectionery must make sure that the business’s
product is safe for all ages and will not affect people’s health.
Qualified workers: The company is going to hire some of the best confectioners who got
proper qualification and experience. This adds up to the unique perks like the brand identity,
premium customer base and high end machineries, that ChocoLab will gain and will be able to
use while operating.
Action Plan: If the company wants to retain its workers after being employed, than the
workers will have to reward them well and keep them motivated.
2.2 Weakness
Lack of Marketing: Unlike other large chocolate producers, ChocoLab will only have 1
Marketing specialist. This might not be enough in order to compete with the other successful
chocolate manufacturers who invests and employs a lot of marketing specialists.
Action Plan: In order to fight against this weakness, ChocoLab must train the future marketing
specialists to get a proper operating knowledge about the company. This will help to gain proper
knowledge and find marketing ideas at an optimum level until the confectionery hires more
specialists in order to help him/her.
Hard to enter the market : The market of chocolate is quite free for everyone to enter, thus, any
individual with an aim of making money may enter the market of chocolate opening his/her own
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brand. So this leads to a significant problem for ChocoLab to advertise properly given that other
businesses might use identical strategies.
Action Plan: In order to avoid such problem, the company might observe advertisements
before implementing any new ideas. This will help to introduce new ideas that exceed the
attraction of any other new business that is trying to enter the chocolate market.
Fall in Sales: Producing chocolates will require some multifunctional and expensive
machineries which might take up a lot of the business’s finance. And these expenses might not
be recovered, given that the business is highly unlikely to make a huge amount of profit at the
introduction phase.
Action Plan: To reduce this problem, ChocoLab must use machineries and technology that
are not too expensive but get the job done. ChocoLab can also use supplies from suppliers who
give high quality raw materials but at low price.
2.3 Opportunity
Whole Sale Opportunity: Chocolate is such a product that is not only consumed by consumers
directly but also used by the manufacturers of various other products like cakes and biscuits. So
this gives more selling scopes to ChocoLab. Most manufacturers might purchase these products
in bulk, which secures more profit for the company.
Action Plan: Suppliers will only get their products if ChocoLab offers them some economies
of scale. Economies of scale for the suppliers would be to offer them discounts if they are
purchasing in a massive quantity.
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Internet: In the modern world the Internet is widely being used in the everyday work, thus, the
usage of the Internet in order to advertisement helps a lot to pursue some targeted consumers and
other groups of potential chocolate lovers.
Action Plan: Using Internet as the proper medium of operation, ChocoLab will have to
challenge the sales and marketing department to create creative advertising and use the Internet
to distribute it.
2.4 Threats
Economical Scarcity: ChocoLab might settle up at a time where there is a shortage of cocoa or
any other raw material involved in making chocolate. This will lead to immediate imbalance in
the sales trend.
Action Plan: In order to avoid such problem the business marketing managers need to keep
track of the weekly or daily trends in the production of all the raw materials involved in making
chocolate bars.
Competition: Being a supplier in the market ChocoLab may not be able to survive all the
intense of global competition, given that there are more chocolate companies who have been
serving the chocolate market for ages. No matter how good the company’s products are, it may
still fail to grab the attention of customers since it is new.
Action Plan: In order to get a proper customer base, the company must find ideas that give the
customers more reasons to buy the chocolate from ChocoLab over other brands. One most
common thing the company can do is to make higher sales reducing the price level compared to
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its competitors. Although the price must not be too low because the customers might find that the
quality is not good enough.
Health Factor: In the growing number of illness in the modern world, there might come some
illness that is only caused through the consumption of chocolate. This will reduce the global
consumption of chocolate immediately.
Action Plan: Quick ways should be available for the business to sell all the assets and shift to
some other business. Best possible way would be to keep as much liquid asset as possible.
3.0 Motivation
3.1 Creating a friendly work force environment.
As the employees will spend most of their time working, it is necessary to try to keep a
friendly environment in the organization. When there is a sympathetic and cheerful surrounding
and there is a bond formed between everyone and both employee and employers have a great
time working together.
3.2 Acknowledging employee’s achievement.
This is one of the important techniques by which it will be used to motivate the employees. This
happens when an employee successfully completes his/her assigned task before the time allowed.
The company will reward those kinds of employees without any fail by reducing their working
hours and incrementing their salary by five percent for the current month, thus, other employees
also get motivated and will be willing to work.
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3.3 Compensating Employees.
Sometimes acknowledging employee’s performance is not enough. ChocoLab company will
provide employees with some incentives such as giving free parking plot, paid on sick days leave
to some extent, giving them five percent free shopping voucher every month, less working hours
during festival days when there is no public holiday, are some incentives provided by our
organization and employees also are very much motivated.
3.4 Disclosing financial books of the company to the employees.
The organization will be having a lot of confidential information which they cannot disclose to
any unauthorized person but the organization can disclose some information of the employees to
the company so that they feel as they are responsible workers of the company. For example,
disclosing the profit and loss statement of the company to the employees. This will bring
inspiration within the employees and will create a mindset that the management has respect for
everyone. This could bring motivation among the employees.
3.5 Encourage Creativity.
The management must be able to keep an open environment in the organization so all kinds of
creativity is welcomed. There will be different people with distinguish background and diverse
knowledge. So, all various kinds of creativity that come from the employees must be welcomed by
the management, because such ideas help the organization to gain more profit in future.
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Encouraging a worker creativity and rewarding him/her at his/her workplace will bring a feeling of
gratitude and self-esteem, thus, he/she will contribute more to the business.
Conclusion
It is expected that ChocoLab will be able to survive among all the other competitors in the
chocolate market if everything the business planned, is implemented properly. With a flexible
and motivated workforce, the confectionery should be able to tackle all the weaknesses and
threats involved in surviving in this market. Proper leadership will also play a vital role in the
success of this business. From the above context it can also be sorted that ChocoLab also exerted
a SWOT analysis, which is supposed to avoid any future downfalls of the business. Even after all
those pre-planned operations the company might still not be able to maintain its business
properly, given that ChocoLab will not be able to control any of the external factors that might
change in the countries it is planning to work in. For instance, any shortage of the raw material
involved in the country will make drastic changes in the production of ChocoLab.
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