Amber Allen
Strategic Management 4199
Mid-Term Case Study

Rogers’ Chocolates Case Analysis

Analysis of the Financial Performance of Rogers’ Chocolates with supported conclusions
In a review of Rogers’ Chocolates financials (see Appendix A) it is apparent that they have improved from 2005 to 2006. The possibility for them to double or triple its size within 10 years looks promising. Their liquidity ratios taken from the figures on the balance sheet show that their current ratio in 2006 was 1.37 and 1.24 in 2005. This shows that they are able to continue to pay their financial obligations. The quick ratio does give a minor red flag in that it is below 1 for both years indicating that should they have to pay all debt at once it could be difficult for them however because of the age of the company and history does not suggest to be an issue. Their gross margin came in at 55% for both 2005 & 2006 meaning that they would retain $.55 on the dollar to use to pay off expenses and distributions to shareholders. This calculation also supports the company’s good financial standings. Net margin held at a steady 8-9% for both years which is translated into profits. Although ROE fell some between 2005 and 2006 Rogers’ is still holding strong keeping their profits above 15%. Since ROA is also between 11-13% for those years it supports that the company is in good financial standings and being profitable. Their debt/equity ratios were 30% in 2005 and dropped to 18% in 2006 showing us that they are not in jeopardy of bankruptcy. Rogers’ does not appear to be carrying a lot of debt and management is being effective based on all of these findings. Their financials show potential for growth to be quite promising for their goal as long as trends hold for Rogers’ Chocolates in the future.

Definition of the Industries that Rogers’ Chocolates competes in with summary of “jobs”/”customer wants” for each
Premium chocolate competes in different industries at different levels dependent on the needs of their clientele. Rogers’ Chocolates has two main industries that it competes in consisting of various subsets of each. The main industries are retail and wholesale which are broken down as; designer edible retail, corporate and consumer gourmet gift and tourist high end retail to name a few.
Jobs/Customer Wants
Designer Edible Retail
The company owned local retail stores focus is to appeal to the memory and senses of their local customers that have remained loyal to them over the years. Awakening a sense of familiarity and taste of home does this.
All of Rogers’ consumers expect a high quality product of premium ingredients and consistency
Uniqueness of chocolate packaging and flavor options
Luxury experience with a superior taste
Easy access for in-store purchase and availability of seasonal products for gifts
Corporate Gourmet Gift
High quality, premium, boutique style packaging and taste
Discounts on large orders for corporate customers
Unique and personalization for companies’ gift giving
Convenient order options and packages
Tourist High End Retail
Accessibility to tourists at area of travel
Focus on airport kiosk areas and cruise destinations
Assortment of package sizes & area personalization
Availability for future purchases via online, mail, or phone

External Analysis
Identify the main industry Rogers’ Chocolates competes in with support of your position
The main industry that Rogers’ Chocolates competes in would be the premium chocolate industry. It is one of the oldest chocolate companies in Canada with its base in Victoria, BC. Their main products are high-quality, hand wrapped chocolates, which appeal to affluent customers not concerned with price. A quarter of chocolate sales are generated around Christmas and tie in to this market for seasonal gifts. Their retail locations give a unique customer experience that entices their local clientele and tourists alike. The in-store experience promotes an emotional connection that brings their