Rocky Mountain Chocolate Factorys sweet success Essay Example for Free

Rocky fortune Chocolate Factorys sweet winner EssayThe major competing sweet producers Rocky cumulus Chocolate Factory and Hersheys federation slang different business strategies, which give them distinct status in the commercialize of the USA. RMCF is concerned in its perspectives and long goals to take a shit the follow more profitcapable and masteryful in the sphere of chocolate business. Hersheys company deals with the short-term objectives and tries to obtain profit in an abridged period of time. The business strategy of profit-making Rocky Mountain Chocolate Factory has the competitive advantage over prosperous Hersheys company in corporal constitution, organizational structure and confection distribution in the USA. The first difference between the companies is that the corporate governance of RMCF is structured more efficiently than Hersheys. Corporate governance of RMCF consists of directors who nourish equal rights. RMCF administers its main rules with thre e to nine directors (Wheelen and Hunger, 2012, p263). Despite the main principals, the specific board of directors operates as a head of the whole organization and it is able to elect directors itself. This condition is likely to motivate the directors, so they try to accomplish their part of business as accurate as possible. Shareholders engage a right to vote in yearly meetings and they great deal have an influence on the election of the potential directors by giving the additional number of votes (Wheelen and Hunger, 2012, p264). In consequence, the shareholders who have invested money into the company can be confident in the liability of the people to whom they give the probability to control the business. Unlike RMCF the Hersheys company has different types of directors who have their special responsibilities in conducting the business.The governance of the company consists of three types of directors, namely independent, informed and engaged, also a board of directors, whi ch perform various functions in management. much(prenominal) a bureaucratic structure makes the decision-making process more complicated and creates difficulties with the overall performance of the company. Board members of the company can easily intervene into the t take ups of the workers and they can make new employees without any restrictions (The Hershey Company, 2013). This action may calve employees from work and directors can have a nonher option that will not be considered due to their bound liability. Corporate governance of Hersheys company does not include the participation of shareholders in arranging managers for the firm, so the shareholders are not aware of the financial environment of the company. Thus, the exact number of directors and the role of the Board of directors make the RMCFs governance organized in a beneficial form, whereas Hersheys faces several difficulties with it.The second right of RMCF is an adept and profit-seeking organizational structure. R MCF has its aver shops and franchises which are situated in the regional malls, tourist-oriented retail areas, ski resort, force retail centers, airports, neighborhood centers, and factory outlet malls (Harrison, 2003, p240). This location of the chocolate shops creates positive selling opportunities by attracting customers and promoting the return as well. According to the Success Magazine, in 1995-96 the Rocky Mountain was in the seventh position of the deoxycytidine monophosphate top franchisers (cited in Harrison, 2013, p420). Spreading its name recognition through company-owned stores and franchisers, RMCF had gained such a high extend in determining its market force and competitive advantage over a majority of companies working(a) in the same field. Crail (1996) states We find the location, negotiate the lease, design the store, coordinate the build-out, bring the franchise here for training, excite a distinct manager to the store opening, and have ongoing field support and regional and theme convention (cited in Harrison, 2003, p420). victorious into consideration all the aspects of organizing the structure of the whole business helps RMCF achieve success without any inadvertences. For example, the total revenue of the company in 1995 was 13,616, 134 USD and up to 1998, it had a tremendous increase exhibit 23,763,82 USD (Harrison, 2003, pp.423-424).In contrast to RMCFs organizational structure, Hersheys company decided to form special technical groups in order to obtain the significant part of the market share (New Organizational Structure to supplement U.S. Scale and Accelerate Global Growth, 2005). They were aimed to spread the producing companies all around the world. Hersheys has its selling premises in 50 countries of the world (Keidel et al., 2010). The company was not concerned in the thorough organization of its structure that is wherefore it had to fund its company in other countries too. To summarize, RMCF establishes its franchises around the USA and increases the sales by allocating stores in the places with localize audience duration Hersheys fail in organizing the right structure, consequently the company has to move into the market of foreign countries.The third quality that makes the business strategy of RMCF more valuable rather than Hersheys is harvest-home distribution. RMCF delivers its products through shipments to distribution outlets from the premise of manufacturing Durango, Colorado. Franchisees are not provided with the immense space to hold the goods, so they ask the company to give them the quantities that they are able to sell during 14 to 28 days (Wheelen and Hunger, 2012, p.26-10). By adjacent this strategy, RMCF chocolate can be a reliable product in terms of freshness. RMCF believed that it should control the manufacturing of its own products in order to better maintain its high product quality standards, offer unique copyrighted products, manage costs, control production and shipme nt schedules, and pursue new or underutilized distribution channels (Wheelen and Hunger, 2012, p.26-10).At the same time, the Hersheys company distributes its products through grocery stores, mass merchandisers and drug stores and functions as a whizz entity. More than the half of total sales is received from merchandisers and supermarkets (Keidel, et al., 2010). In case the Hersheys has a slow up delivery it needs to pay fine for the customers who will not promote Hersheys products, so losings in sales and credibility will probably occur (Zsidisin, 2006). Hersheys company faces losses of peachy in the period of distribution process the borders of the time that the delivery of the products should last are not all the way stated. That can be harmful for the customers as the chocolate products are likely to spoil through time. Taking all the aspects into consideration, RMCF is dominating in distribution by saving the quality of chocolates, whereas Hersheys company is not able to p rotect freshness without decreasing the budget of the Company in its business strategy.To conclude, Rocky Mountain Chocolate Factory has more productive venture planning than Hersheys company in haughty authority, confirmation scheme and product distribution. Controlling authorities in the RMCF have equal opportunities and reliabilities in business, while Hersheys company is regulated mostly by a board of directors who can set the rules and hire the new employees without discussing with other directors. Conformation scheme of the companies differs from each other by allocating the stores and establishing the outlets. RMCF spreads its products to the places where many people can purchase them in contrast, Hersheys company delivers its products to particular stores. As RMCF is worried about its future goals, it achieves stipendiary results, so Hersheys company should also concentrate on its remote future aims.