Valentino Chocolates
Contents 1. Background 2. Problems of company 3. Future plans
Valentino chocolates are made in Turin, Italy. They are recognized as luxury products with a delicious and unique taste. Some of Valentino’s finest chocolates are handmade and have won many international awards.
Our company has almost 300 employees, 75 company-owned shops, and turnover of 90 million euro.
Last year Two years ago Three years ago Turnover 90. 5 m euro 87. 2 m euro 62. 6 m euro Pre-tax profit 6. 4 m euro 8. 2 m euro 8. 9 m euro
Reason for falling profits • Price cutting in the industry; • Factory machines often break down; • Demand for Classic Bar is falling; • Valentino’s new products are not selling well; • Sales staff are becoming demotivated.
Valentino’s main products (as a % of turnover) Valentino Classic Bars 25% Raw chocolate 8% Packaged chocolate 55% Chocolate drinks 6% Exclusive handmade chocolate 5% Buscuits and cakes 1%
Future plans • Extend the factory • International business • Buy new machinery • Invest in more research and development
Investment options Option Cost Benefit 1. Invest in more research and development 200. 000 euro Develop new product such as a low-fat chocolate drink, new biscuits/cakes 2. Buy new machinery 200. 000 euro End the delays caused by the old machines breaking down 3. Extend the factory 500. 000 euro Increase the factory’s capacity by 30% 4. Launch a marketing campaign 500. 000 euro Increase sales of all products
Conclusion We will do everything to improve our company!!!
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