Rocky Mountain Chocolate Factory Case Essay Example

Rocky Mountain Chocolate Factory Currently there are over 300 franchised stores and 5 company-owned stores. They are ranked number 60 on Forbe’s 200 Best Small Companies with $16.7 million in annual revenue for 2008. RMCF has three objectives: to guarantee proper financial management during depression, foster slow expansion, and nurture working relations. Their strategies are selection tourist areas, regional outlet centers, street fronts, and airports. I think this is extremely smart because you have heavy traffic flow in these areas. In my personal experience back home in Branson, we have a RMCF in Tanger Outlet shopping mall where I worked. Once a week the employees I worked with would do a milk shake run to their store because they were delicious! The other strategy they use is store design; which encourages walk-ins to view and smell the product preparation. RMCF has revenues from three sources: sales from franchises, sales at company-owned stores, and collecting franchise fees and royalties. Their revenues increased 12.5% from fiscal 2006 to 2007, and only 1% from fiscal 2007 to 2008. I still think they are doing reasonably well because this time frame was a struggle for all companies during the recession, they still made a small positive increase. To analyze their strategic factors includes a SWOT analysis. A few of their strengths are: producing high quality fresh organic products, selection of sites in targeted environments, contracting suppliers at fixed prices for ingredients, store atmosphere and food preparation. Some of the weaknesses are: does not implement national advertising, relying on proper operation of franchises, and no considerable sustainability endeavors. Some of the opportunities are: growth of real estate development in key primary environments, organic industry, automated processes, and customer will pay more for better quality. The threats include: highly competitive global chocolate market, larger companies can possibly buy