Kalista’s Fine Chocolate Essay
Kalista’s Fine Chocolate Executive Summary Kalista’s Fine Chocolate is a small family owned business that was opened in 1998 by Graham Beam and Doris Beam. This small business started in the basement of the Beam’s Brantford home, and has been growing since then. The business sells high end chocolate that is crafted to a high standard and is very creative. The majority of their market is high income families that reside in the Brantford area.
Since the company isn’t very large in scale it is very good at customer relations and retains its clients very well. The sales that the company has been seeing in the preceding few years show that it is growing, but do not tell how the profits are growing. A strength that the company has is that it is very agile, given its small size it can adapt to changes very easily. One of the weaknesses that it has is that it is not large enough to hire more people and be productive and yet they cannot produce enough to have a full time store open.
An opportunity that the company is given is when it expands it will be able to buy more from its suppliers and so it will be able to negotiate prices better and so they will be able to lower their prices. The threat that they face is that if their suppliers cannot supply them and someone else takes their supplier away from them then they will not have the same high quality chocolate that they have now, and that will get rid of the competitive advantage that they have. The company currently faces the decision of moving into a new a new and larger location in Brantford or staying in the basement.
The decision has to be made soon as they have to give an answer to the landlord within the next two days. The main problem with making this decision seems to be that the Beams are lacking in information about moving into the new location, this leads them to being hesitant and not sure about their decision. This seems to be the biggest problem as all the other ones are caused by this one main problem. If they had more information then they would not have hesitate to move to the new location, and they could go ahead with the expansion of the business.
They have two alternatives, one is that they could ask for more time from the landlord to think the expansion through and gather more information. The second is they could opt not to expand at this point because they seem unsure about the idea as a whole. Even if this does cost them some time, it is better than acting haste fully and making a bad decision. I would advise them to seek more time to make the decision, as they seem to be unsure about the location, but they seem sure that they want to expand.
In order to do this they would need to arrange a meeting with the landlord and ask for more time. After doing this shy could contact a business advisor that would gather more information for them. After reviewing the information they could chose more wisely which is the best location. When they have decided upon a location they should then look for a place to rent or buy. This makes more sense because then they are going to be sure of the move and more confident in the businesses success.