Executive/ Final presentation in ENT 101 Business Foundations course at Suffolk University Received an A, along with a nomination by the judges for being part of Suffolk University's Case Analysis Team (SUCAT)

1. Salyna Anza
Roni Baghdady
Abdulrahman Baothman
Erin Bourgeous
Laura Reales
Suffolk University
Case Analysis

2. To DOUBLE or TRIPLE the size of the company within 10 years.
ASSESSMENT SCOPE

3. Metric 2006 2005 % Change
Sales $11,850,480 $11,991,558 -7%
Overhead $1,993,306 $846,186 +135.6%
Expenses
(Administrative &
Selling)
$5,312,985 $5,094,088 +4.1%
Gross Profit (After
Interest Income)
$6,466,056 $6,614,981 -2.3%
Net Earnings $891,082 $1,069,326 -16.7%
Dividends $0 ($701,870) -100%
CURRENT SITUATION ON THE
INCOME STATEMENT

4. Metric 2006 2005 % Change
Cash $112,185 $750,948 -85%
Total Inventories $1,543,816 $1,550,631 -.4%
Bank Indebtedness $186,929 $599,146 -68.8%
Long-Term Debt $1,017,679 $1,411,184 -27.9%
CURRENT SITUATION ON THE
BALANCE SHEET
WHERE WE ARE NOW:
Current (Liquidity) Ratio: .91
Inventory Turnover Rate: 1.01
WHERE WE SHOULD BE:
Current (Liquidity) Ratio: 1 or higher
Inventory Turnover Rate: 6 -12

5. 1. Affiliate with FTD
2. Open store in San Francisco
3. Improve Production
Open Store in Los Angeles
Timeline
More than triple size of the
company
2007
2009
2016

6. WHY?
Premium Chocolate Industry Sales in Canada→ $500 MILLION
Premium Chocolate Industry Sales in the US→ $3 BILLION
How?
1. Affiliate Roger’s Chocolate with the floral industry
by partnering with Florists’ Transworld Delivery (FTD)
2. Open a retail store in San Francisco, California
3. Advance production
EXPAND TO THE UNITED STATES

7. Florists' Transworld Delivery (FTD):
• Floral Industry Sales in the US→ $30.3 BILLION
• 7 out of 10 people who buy flowers will also buy chocolate
• Florists’ Transworld Delivery (FTD) sales in 2007→ $613 MILLION
• State generating most revenue to FTD→ California
Start off Regional:
• 2007→ Northern Region of California
• FTD Florist Shops in Northern Region→ 30 million
• 2009→ Southern Region of California
• FTD Florist Shops in Southern Region→ 56 million
STRATEGIC RECOMMENDATION 1:
ROGER’S CHOCOLATE IN FLORAL INDUSTRY

8. STRATEGIC RECOMMENDATION 2:
ADD RETAIL STORE IN NORTHERN, CA
323 Geary Street.
San Francisco, CA 94102
Cost: $50,000 for 1,000 Square ft
Renovation: $25,000
Total Cost: $75,000
Union Square
San Francisco

9. How?
• Computer-Integrated Manufacturing (CIM)
• CAM (part of CIM) supports on-site, small-
scale, semi automated, sensor-controlled
baking.
• EASY to achieve customizable, consistent
quality.
• DOUBLES productivity.
• Cuts up to 80% of time.
• Cuts work in process inventory 30-60%
• Decreases design costs 15-30%
STRATEGIC RECOMMENDATION 3:
ADVANCE PRODUCTION PROCESS
Cost of Implementation
(installment costs included)
Cost: $1.3 Million

10. FTD AFFILIATE COMMISSION:
• Roger’s Chocolate receives 10% of each sale including their chocolate
• Revenue of FTD in Southern California 2007→ $80 MILLION
• Floral & Chocolate Sales in Southern California → $56 MILLION
• Roger’s Chocolate Projected Sales→ $5.6 MILLION
PROJECTED EARNINGS SO FAR:

11. PROJECTED EXPANSION:
By 2009 Expand to Los Angeles
• Average Price per square feet: $220
• 500 square feet
• Total investment: $110,000

12. 2009
FTD’s projected revenue in Southern, CA→ $90 MILLION
- Projected sales generated from flowers and chocolate→ $63 MILLION
Roger’s Chocolate Projected Sales in 2009→ $6.3 MILLION
OVERALL PROJECTED SALES FOR ROGER’S CHOCOLATE
$5,600,000 + $6,300,000
$11,900,000
TOTAL PROJECTED SALES

13. Cruise Ships
• PRODUCTION PLANT located in outskirts of Victoria.
• NEAR VICTORIA CRUISE PORT: Busiest cruise port in Canada.
• MOST popular Cruise Ship occupying Cruise Port: Golden
Princess.
• Add Roger’s Chocolate to their Food and Dining Dessert menu as
well as Gifts and Services.
• Restaurants in ship: Crown Grill and Sabatini’s.
• Purchase $4,000 worth of Roger’s Chocolate every 3 months.
• $16,000 per year in wholesale sales.
OTHER OPPORTUNITIES TO CONSIDER
BMW
• 50 locations in Canada.
• Each location purchases through wholesale
$2,000 worth of Roger’s Chocolate bi-
monthly.
• PER YEAR: $12,000 PER location.
• 50 locations x $12,000 = $600,000 in
wholesale sales