MGT5STR STRATEGIC MANAGEMENT

INDIVIDUAL ASSIGNMENT REPORT ON HAIGHS

CHOCOLATES
Executive Summary
The following research and analysis is focused on the business of an organization known as
Haighs chocolates. I will be defining and finding out the product or service portfolios that span
multiple business units. I will be further identifying the top selling products of the company
which are contributing to major part of companys revenue. I will analyze the external operating
environment for the business such as political, economic, social, technological, environmental
and legal. I will be looking at the sustainable competitive advantage of the company.
By the end of the assignment, future strategic direction will be mentioned as well as my
recommendation about Haighs chocolate that will fit into strategic orientation in order to
perform better in their business.
Table of Contents

Introduction
Corporation Identification
Corporate Research
Corporation Revenue Centres
External Environment Analysis
Source of Sustainable Competitive Advantage
Strategic Direction
Conclusion
References

Introduction

Haigh's chocolate was begun by Alfred E Haigh on first May 1915 in Adelaide. Alfred advanced
his own flavors to the business and presented the chocolate-secured organic product focuses,
which the organization is as yet proceeding. Alfred's grandson, John Haigh, altered the business
from the expanded preparing and experience he obtained amid his learning. The business has
gone through numerous stages and today the organization is controlled by joint overseeing chiefs
Alister Haigh and Simon Haigh with John Haigh as director of the board.
Building a business in an exceptionally focused business sector is testing. Confectionary industry
is as of now shared by real worldwide brands like Nestle, Cadbury and so on. There's dependably
the degree for a worldwide chain of chocolate shops opening their entryways in Australia.
Haigh's chocolate is totally mindful of the reality and they are concentrating on specialty
business sector to manage this.
Haigh's nearly deliver 250 assortment of chocolates. The center business of Haigh's is
assembling and offering chocolates through self-worked outlets, online stores and a guest focus.
Haigh's chocolates separate itself from different organizations by effectively developing family
claimed business in a profoundly focused business sector over a century without bargaining on
quality however enhancing better approaches for working together. The organization is
supporting different social causes like youngsters' philanthropy, reasonable cultivating and
sparing uncommon types of creatures and so forth.
1) Corporation Identification
Haighs Chocolates is more than the 100 years old family owned chocolate making
company run by the fourth generation of Haighs. The organization employs over 500
people throughout their factory, administration and retail stores.

Haighs has a huge product portfolio. They offer everyone with a choice of over 250
varieties from chocolate frogs to gift boxes of hand-dipped truffles. They have
distributed their product in following 8 broad categories.
Boxed Chocolates
Loose Chocolates
Chocolate Confectionary
Chocolate Bars
Chocolate Novelties
Chocolate Blocks
Occasion Special
(Haighs Chocolates 2016)
i.

Corporation
Corporation is the division of work among individuals whose endeavors
must be composed to accomplish particular goals. The aim of the
corporation defines the work to be done. The nature of work will differ
level to level in the corporation since work can be of labor, mental

ii.

movement and decisions.

(Stephens, C. N.; Titman, L. G.; Fogg, A. H.; Barnes, M. C 2013, pp. 13)
(Becerra, M 2009)
Product Portfolio
A product portfolio is consisting of every one of the items which an
association has. A product portfolio may contain distinctive classifications
of products, diverse product offerings and lastly the individual product
itself. Administration is required on all the three levels of a product
portfolio. You require chiefs for overseeing singular items, overseeing
product offerings and lastly the top level administration which deals with
the complete portfolio.
(Cooper, RG, Edgett, SJ & Kleinschmidt, EJ 1999, pp. 333)
Service Portfolio

The service portfolio is the center store for all data for all services in an
association. Every service is recorded alongside its present status and
history. The fundamental descriptor in the service portfolio is the service
outline bundle. The service portfolio comprises of three sections i.e.
service catalogue, service list and retired services.
Service catalogue contains the information about upcoming services,
service list has access to current services and retired services are those
which are going to be discontinued.
(Tolonen, Arto ; Shahmarichatghieh, Marzieh ; Harkonen Janne; Haapasalo Harri
2015, pp. 468)
2) Corporate Research
a. Business Unit Identification
Haighs Chocolates is run by Haighs, Alister and Simon joint managing directors
and John as chairman of the board. Simon is natural at facts, systems and details so he
manages those areas of business units whereas Alister is responsible for human
resource and communication part of the business.
Haighs Chocolates has the following separate business units within the corporation.
Factory
Manufacturing
Packaging
Administration
Human Resource
Accounts
Retail
Marketing
Sales
(Proteus Leadership on Haighs chocolates turns 100, 2015)
1. Business Unit
A coherent component or fragment of an organization, (for example,
bookkeeping, manufacturing, advertising) representing a particular

business capacity, and an unmistakable spot on the hierarchical diagram,

under the area of a director. Likewise called office, division, or a useful
range. It is independent with regard to one or more accounting or
operational functions.
(Allio, Robert J. ; Fahey, Liam 2012, pp. 5)
(Gupta, AK & Govindarajan, V 1984, pp. 25)
b. Identification of Product and Service Lines
The product line of Haighs chocolates is as follows.
Gift Collection
Wedding Collection
Gift Cards
Special Days
1. Product Lines
A product line is a gathering of related items under a solitary brand sold by
the same organization. Organizations offer different product lines under
their different brands. Organizations frequently grow their offerings by
adding to existing product lines, since buyers will probably buy items
from brands with which they are now commonplace.
(Chen, Songlin ; Wu, Shuli ; Zhang, Xiaojin ; Dai, Hongyan 2014, pp.
5932)
(Heese, HS & Swaminathan, JM 2006, pp. 206)
Service Lines
The service line, is in its most basic interpretation, is a revising of strategy,
resource planning and allotment on the horizontal continuum crosswise
over supplier elements, versus a vertically situated methodology isolating
supplier sorts into free working units, or storehouses. Service lines are
regularly constrained to a modest bunch of all around characterized,
totally unrelated classes or groupings of individual services or
intercessions.
(Iannuccillo, Karen H. ; Butler, Glenda A ; Mcguirl, Jeanie E. 1998, pp.
31)

(Palmer, Adrian 2007, pp. 2)

3) Corporation Revenue Centre
a. Identification of Revenue Centres
There are ten most popular products which generates the greatest revenue for
the company. Haigh's have packaged them into larger value packs. These top
10 includes the following.
Milk chocolates
Dark chocolates
White Chocolates
Frogs and Scorched Almonds
Truffles
Assortment
Free of Egg
Free of Gluten
1. Revenue
The amount of money generated during a specified period from sale of
goods or services, or some other utilization of capital or resources,
connected with the fundamental operations of an association before any
expenses or costs are deducted. Additionally, called sales or turnover.
(Talluri, K.T. and Van Ryzin, G.J. 2006, pp. 1.1)
(Gordon, M.J., 1962)
4) External Environmental Analysis
Political
The government policies and industry requirement have both direct/indirect impact on
the business units of Haighs Chocolates. For example, taxation policy, food safety
standards, nutritional guidelines and imported food inspection scheme.
Economic
The economic environment can impact negatively as well as positively to each
business unit of Haighs Chocolates.
Rising prices of ingredients i.e. cocoa and sugar due to increase in demand affecting
manufacturing unit, rise in petrol costs effecting transportation costs and fall in
disposable income due to economic recession last decade impacting sales unit.
On the other hand, improvement in global economy will benefit each of the business
unit and globalization will have a positive impact on export and import.
Social

Todays consumer is concerned about the value for money and sustainability. Also,
people are becoming more health conscious now-a-days. Many nutritionists
recommend people to reduce their consumption of chocolate and candy, which is
likely to affect Haighs chocolate sales in the future.
Technological
Technology has changed Haigh's production and information management system
throughout the years, beginning with the acquaintance of new mix machines to blend
milk and cocoa beans. Since past few years Haighs chocolates started using QAD
cloud-based ERP software to provide shared computing resources and storage of
records or documents. It enables companys accounting, operations management and
reporting to run in the cloud. QAD provides real time access to sales and inventory
information.
Environmental
The environmental impacts of cocoa production, such ordinarily as herbicide
resistance and deforestation are turning out to be substantially more serious as
demand for cocoa rising in everyday which in turn affecting the Haighs chocolates
business units.
Legal
Legal factors identify with changes in laws and controls. Haigh's chocolate must be
careful so as to keep inside the law and to expect routes in which changes in laws will
influence the way they should act. Lawful environment controls fare and import
controls, exchange evaluating, charges, direction of degenerate practices, restricted
countries, antitrust, seizure and circulation of value, licenses and trademarks.
i.
Political
The political framework makes the principles and structures inside which
business works. Government arrangement underpins and empowers some

business exercises e.g. enterprise, while disheartening others e.g the

production of contamination.
Economic
The economic structure is the association of the economy to allot rare assets.
The economy has a tendency to experience times of quicker and slower
development. Organizations flourish when the economy is blasting and
expectations for everyday comforts are rising. The economy influences a
business as far as tax assessment, government spending, general interest, loan
fees, trade rates and European and worldwide financial variables.
Social
The social arrangement is the fabric of thoughts, mentalities and behavior
patterns that are included in human relations. Specifically, organizations are
impacted by shopper mentalities and practices which rely on upon such
variables as the age structure of the populace, and the way of work and
relaxation. Case in point, changes in disposition towards wellbeing, or a more
noteworthy number of retired people in a populace.
Technological
The technological system is how the quick pace of progress in production
procedures, product innovation, growth of the internet and new
communication technologies influence a business.
Environmental
The environmental system is the normal framework in which life happens.
Progressively organizations have ended up mindful of the relationship
between their financial action i.e. making merchandise and administrations for
benefits and the impacts this has on the natural framework.
Legal
The legal system makes the rules and regulations under which a business
operates. It is the way in which legislation in society influences the business.

E.g. changes in business laws on working hours, buyer protection laws,

antitrust laws and tax assessment and so on.
1. Operating Environment
A business does not work in a vacuum. It needs to act and respond to what
happens outside the workplace boundaries. These factors that occur
outside the business are known as operating environment. These influence
the fundamental interior functions of the business and potentially the goals
of the business and its strategies.
(Koufopoulos, DPMR 2012)
5) Source of Sustainable Competitive Advantage
The strategic and competitive advantage of Haighs chocolates bean to bar model is
that they control the process from the beginning through to the finished product and
then to the customer, comments Simon Haigh, Joint Managing Director. It allows
them to keep exacting quality and get customer feedback for developing new
products. They have a very strong brand that they continue to invest in.
(QAD on Customer case study Haighs Chocolates)
i.

The four factors of sustainable competitive advantage are as follows.

Value Capabilities
The resource creates value when it permits the organization to plan and
actualize strategies that will enhance its proficiency and adequacy. Leaving
from the conventional strengths, weaknesses, opportunities and threats
(SWOT) analysis, a trait creates value and turns into an asset in the event that
it empowers the misuse of chances and/or the balance of threats.
Rare Capabilities
Rare capability is when a firm has a valuable resource or capability that is
totally one of a kind among an arrangement of present and potential
contenders. How to figure out whether the organization's resource is

uncommon and makes upper hand? A company's resource and capacities must
be both short in supply and hold on after some time to be a wellspring of
sustained competitive advantage.
Costly-to-imitate Capabilities
Firms with valuable and rare resources, which are difficult to imitate by
different firms, can pick up the main mover focal points in the business sector
and can gain competitive advantage. It can be historical like unique brand
name and valuable organizational culture, social like interpersonal
relationships and trust among stakeholders of the company.
Nonsubstitutability
A resource or capability is non-substitutable when no other resource or ability
can be used as an identical. For instance, research and development which has
the goal of acquiring new innovation. To get new innovation you could create
it inside, or you could screen the outside environment for improvements then
obtain them - these are strategic equivalents.
(Hussey, DE 2007)
(Parkes, ClaraH 1998)
6) Strategic Direction
Haighs chocolates should concentrate on satisfying the people linked to it
internally or externally. For example, employees, customers, stakeholders etc.
It is very important for the growth of a company to win its people.
Haighs should continue selling the products through its own retail outlets as it
brings the company closer to the consumers. Haighs gets the benefit of
knowing the expectations, needs and feedback directly from its customers on
real time basis.
In todays world people are concerned about global issue and favor the firm
whos contributing towards society and environment. So, Haighs should take
i.

steps towards sustainable development of the company.

Strategic Direction

A firm must keep their clients happy because returns gained from bonding
with clients are the lifeline of a firm. The firms bonding with the customers
becomes stronger when it provides superior value to them. So, firm should
manage all aspects of their relationship with customers like keeping in touch
with the customers, sharing as much information with the them as possible
and facilitating important interactions with them. It will help in addressing the
key issues of strategic direction i.e. who to serve, what needs to fulfill and
how to fulfill those needs.
(Michael A. Hitt 2014, pp. 104)
Conclusion
The theory based structures and models may be extremely valuable however the application
practically speaking may be accomplished hard. It will likewise rely on upon the execution
aptitudes of the organizations. It can be concluded from the above analysis of Haigh's chocolates
that we have to concentrate on every part of a business with a specific end goal to succeed. The
general population who are identified with business in any capacity would need to associate
themselves to a specific business on the off chance that it is doing great by adding to economy,
society and environment. Haigh's chocolate is an australian organization which went to the stage
it is today by increasing better upper hand over its rivals.
By doing all recommendation and followhe stretegic direction, I am confident that Haigh's
chocolates will improve in future than their rivals and may be the new pioneer in a few criteria.
References
1) Fogg, AHBM. 2013, Company Organization (RLE: Organizations), Taylor and Francis, .
Available from: ProQuest Ebook Central. [23 August 2016].

2) Amason, ACAA 2011, Strategic Management, Taylor and Francis, . Available from:
ProQuest Ebook Central. [23 August 2016].
3) Tolonen, Arto ; Shahmarichatghieh, Marzieh ; Harkonen, Janne ; Haapasalo, Harri. 2015.
Product portfolio management Targets and key performance indicators for product
portfolio renewal over life cycle. International Journal of Production Economics,
[Online]. 170, 468-477. Available at:
http://www.sciencedirect.com.ez.library.latrobe.edu.au/science/article/pii/S092552731500
2017 [Accessed 1 August 2016].
4) Allio, Robert J. ; Fahey, Liam, 2012. Joan Magretta: what executives can learn from
revisiting Michael Porter. Strategy & Leadership, [Online]. 40(2), 5-10. Available at:
http://www.emeraldinsight.com.ez.library.latrobe.edu.au/doi/full/10.1108/108785712112
09297 [Accessed 2 August 2016].
5) Chen, Songlin ; Wu, Shuli ; Zhang, Xiaojin ; Dai, Hongyan, 2014. An evolutionary
approach for product line adaptation. International Journal of Production Research,
[Online]. 52(20), 5932-5944. Available at:
http://www.tandfonline.com.ez.library.latrobe.edu.au/doi/abs/10.1080/00207543.2014.89
3065 [Accessed 4 August 2016].
6) Iannuccillo, Karen H. ; Butler, Glenda A ; Mcguirl, Jeanie E., 1998. Developing a service
line approach to quality improvement. Journal of Perinatal & Neonatal Nursing, [Online].
12(1), 31(11). Available at: http://ap01a.alma.exlibrisgroup.com/view/action/uresolver.do?
operation=resolveService&package_service_id=4325019140002146&institutionId=2146
&customerId=2145 [Accessed 3 August 2016].
7) Talluri, K.T. and Van Ryzin, G.J., 2006. The theory and practice of revenue management
(Vol. 68). Springer Science & Business Media.

8) Michael A. Hitt, 2014. Strategic Management: Concepts and Cases: Competitiveness and
Globalization. 011 Edition. Cengage Learning.
9) Hussey, DE 2007, Strategic Management, Taylor and Francis, . Available from: ProQuest
Ebook Central. [18 August 2016].
10) Becerra, M 2009, Theory of the Firm for Strategic Management, Cambridge University
Press, Available from: ProQuest Ebook Central. [19 August 2016].
11) Koufopoulos, DPMR 2012, Essentials of Strategic Management, SAGE Publications, .
Available from: ProQuest Ebook Central. [20 August 2016].
12) Gordon, M.J., 1962. The investment, financing, and valuation of the corporation. RD
Irwin.
13) Palmer, Adrian. Principles of Services Marketing. McGraw Hill. December 2007. P. 2.
Available online April 8. 2010
14) Parkes, ClaraH.The Business Behind The Enterprise DBMS June 1998:80. Computer
Database. Web. 10 Aug. 2016
15) Cooper, RG, Edgett, SJ & Kleinschmidt, EJ 1999, 'New product portfolio management:
practices and performance', Journal of product innovation management, vol. 16, no. 4, pp.
333-351.
16) Gupta, AK & Govindarajan, V 1984, 'Business unit strategy, managerial characteristics,
and business unit effectiveness at strategy implementation', Academy of Management
journal, vol. 27, no. 1, pp. 25-41.
17) Heese, HS & Swaminathan, JM 2006, 'Product line design with component commonality
and cost-reduction effort', Manufacturing & Service Operations Management, vol. 8, no.
2, pp. 206-219.
18) Jiao, JR, Simpson, TW & Siddique, Z 2007, 'Product family design and platform-based
product development: a state-of-the-art review', Journal of intelligent Manufacturing, vol.
18, no. 1, pp. 5-29.
19) Tsai, W 2001, 'Knowledge transfer in intraorganizational networks: Effects of network
position and absorptive capacity on business unit innovation and performance', Academy
of management journal, vol. 44, no. 5, pp. 996-1004.

20)

Post, James E & Sauter-Sachs, Sybille & Preston, Lee E 2002, Redefining the

corporation : stakeholder management and organizational wealth, Stanford Business

Books, Stanford, Calif