Strategic Management: An Integrated Approach

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Chapter 1: The Cherry Lady Chapter Contents
Book Title: Strategic Management An Integrated Approach
Printed By: ALICIA LI (
© 2015, 2013 Cengage Learning, Cengage Learning

Cae 1
The Cherr Lad
Chapter Introduction
1-1 The Chocolate Industry
1-1a Market Size
1-1b Inputs and Traits of Chocolate Products
1-1c Competition
1-1d Demand
1-1e The Premium Chocolate Segment
1-2 Alicia’s Background
1-2a The Origin of Tart Cherry Caramels
1-3 The Cherry Lady
1-3a Product Line
1-3b Markets
1-3c Production
1-3d TCL’s Financial Resourcesand Performance
1-4 Growth Opportunities
Chapter 1: The Cherry Lady Chapter Introduction
Book Title: Strategic Management An Integrated Approach
Printed By: ALICIA LI
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Sweet and semi-sweet chocolate are created when the liquor is combined with sugar, cocoa butter, and vanilla. The addition of milk solids creates milk chocolate. While most chocolate products are made from blends of fine and ordinary grades of chocolate, premium products have a higher proportion of finest-grade chocolate and cocoa butter and sometimes use beans from a single nation or region.
Chocolate requires careful tempering to ensure a good set, gloss, and finished shine— qualities that optimize shelf life and appearance. Chocolate also exhibits great sensitivity to temperature fluctuations, requiring careful environmental controls in production, distribution, and storage systems in order to maintain the appearance and integrity of finished products. Chocolate’s broad appeal and its versatility as an ingredient results in the potential for many unique products. As a result, a large and growing number of small specialty chocolate and confection companies compete in the North American marketplace, primarily in the premium segment.
However, due to the capital and labor-intensive nature of the production of the chocolate itself—as opposed to the production of confections using chocolate as an input—most companies do not produce chocolate inhouse. Instead, they


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