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The investment project on

Valentino Chocolates

Date of Submission: May 16,2014

Contents

Introduction¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.....2

Discussion& Findings¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­.2

Conclusion¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...3

Recommendations¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­...4

Summary¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­¡­..5

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Introduction

Background:

Valentino chocolates are made in Turin, Italy. The Valentino Company¡¯s products won a delicious and unique taste .Valentino has won many international awards. The company expanded fast. It has large-scale coproduction and sales. Why profits falling:

However, in the last two years, the company has emerged some problems. Firstly, there is a widespread price cutting in the industry; Secondly, factory machines often break down; Thirdly, demand for its Classic Bar is falling;

Fourthly, Valentino's new products, biscuits and cakes, are not selling well; Finally, the staff¡¯s morale is low.

Discussion& Findings

Before our discussion, we have 10 choices about the investment, but we have only €1.5 million. So we have to choice some more necessary items from them. Follows are what we have thought about these 10 items. 1. Extend the factory. €500,000 Increase the factory¡¯s capacity by 30% But it is not the most important, it cost too much. 2. Buy new machinery. €200,000

End the delays caused by the old machines breaking down Most of the machine is need to repair.

3. Invest in more research and development. €200,000

Develop new products such as a low-fat chocolate drink, new biscuits/cakes. Many girls like these things. It isn¡¯t the company most need to do. 4. Buy out a local competitor. €1.5 million Reduce local competition.

But it cost to much money, we can¡¯t do anything else.

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5. Establish a factory in the US. €1.3 million Manufacture chocolates in a major new market But it cost too much money, we can¡¯t do anything else. 6. Launch a marketing campaign. €500,000 Increase sales of all products. We can know what we need to do first.

7. Finance a market survey and research trips to the US. €100,000 Assess the marker potential for Valentino products.

We can know what people like, then we can do in the true way. 8. Invest in an existing group of cafes. €500,000

Become a partner in cafes which sell and promote Valentino chocolates. 9. Set up online sales. €150,000 Increase sales and profits.

Online sales are the new way to sell things, there are more and more people like shopping online.

10. Buy a new fleet of cars. €500,000 Increase motivation of the sales staff.

It isn¡¯t the most useful way to inspire the sales staff, and it also cost to much.

Conclusion

After our discussion, we have made our final choices: 1. Buy new machinery;

2. Launching a marketing campaign;

3. Finance a market survey and research trip to the US; 4. Invest in an existing group of cafes; 5. Set up online sales.

We believe that in order to improve company sales levels, to buy new machinery and launch a marketing campaign is the most necessary. Firstly, we all know that our factory machine is always break down, not only slows down the production speed, and this poses a threat to the health of employees. Secondly, launching a marketing campaign can increase our competitiveness and strength the innovation ability. However , all of them can help our company sell more products.

Recommendation

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