fudge cottage
- This is a preview of the essay.
To view the full text you must login!
Lulu Yu
Strategic Management
February 27, 2004
Fudge Cottage Case Study
Introduction
Performance Summary
Fudge Cottage is a relatively poor performer. Sales have been flat at around $200,000 in recent years and show no sign of improving. While profits are declining, expenses are skyrocketing. Christine North, the owner, has had no formal education in management. The only things she knows about store management, she learned from her parents. In addition, North has no clear objectives for the business. She
Strategic Posture
Although the Fudge Cottage has no formal mission statement or list of objectives, its main goal is to establish itself as the dominant fudge store in Michigan. Some objectives are: raise profits by increasing market share, attract corporate clients, and strengthen customer loyalty.
Strategies: Offer outstanding customer service and free services (gift wrap, etc), emphasize freshness and natural ingredients, compare the fudge's quality compared to other retailers' more inferior fudge, sell non-fudge candy, introduce new foods ("unique line of handmade chocolates, including a dietetic version") seasonally, and develop new distribution channels.
Policies: Provide excellent customer service, maintain its high reputation in the community, and apply the highest standards of excellence to its fudge...