Essay on Scharffen Berger Chocolate - Marketing

1722 Words Apr 25th, 2011 7 Pages
Group Case Brief
Scharffen Berger Chocolate Maker (A)

Bowling Green State University

February 14, 2011

Scharffen Berger Chocolate Maker

Introduction: The Scharffen Berger Chocolate Maker is experiencing an exponential year over year growth rate of their premium product. This is a situation that all new businesses strive for and although Scharffen Berger is pleased with their growth, they are facing a potential dilemma. The company must consider how they will keep up with growing demand while having enough capacity to handle the increase in production and maintain their high quality standards. In order to understand how to meet the increased demand, research was conducted to unveil the problematic issues the
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Cons: This is a risky undertaking as Scharffen Berger has only had experience operating their West Coast location. With the increased demand on the horizon the ultimate bottleneck will be the potential of the East Coast location not opening on time, running into machine malfunction, and potential staffing issues. When opening a new location, the cost of quality (COQ) becomes a major concern. The new facility could jeopardize the integrity of the chocolate as Scharffen Berger prides themselves in having a superior product from “beans to bar”, which they require professionals to taste the product in every step of the process. The framework for COQ includes prevention costs, appraisal costs, internal failure costs and external failure costs; these various stages could be negatively affected if the taste testers are not properly trained to identify the various (9) beans.
Bottom Line: The cost to purchase a new facility and equipment for an East Coast location would be a large capital venture that most likely would not create a return on investment in a timely manner and could result in poor product quality.
Recommendation: Ball Mill / Melangeur / 100% Third-Party Co-Packer The recommended solution to Scharffen Berger is to purchase a new ball mill, buy a refurbished melangeur, and use a third-party co-packer to perform 100% of the packaging. Purchasing a ball mill will increase production by approximately 75% or

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