Attractiveness of Premium

Quality of the product is a reflection of the process developed in the organisation. The strength of the company lies with their “traditional artisanal production methods” and the quality system built in the process, instead of just at the end. SBCM operates with “at least twice each month” with quality monitoring, control and assurance by collaborating with managements and machine operators in blind taste testing of the “beans and the chocolate at various stage of production”. Part of SBCM process follows one of Deming’s 14 point of quality management which “Ceased dependence on mass inspection to improve quality”. SBCM operation procedure allows the “quality at the source” which lets the operator evaluate the process at each stage in order to preserve process control. The confidence of SBCM is highlighted through the utilisation of the tour group facility in their Berkeley warehouse. This provides consumer assurance of their process is kept, to maintain the premium quality product brand.

The main issue with SBCM is the direction of the company. To be competitive, changes in the company’s operation and organisation needs to occur. The growth of the premium segment, which SBCM situate, is projected to grow exponentially for 2000-2010 for 15-20%. Along with growing trend, consumer awareness of dark chocolate‘s health benefit (with anti-oxidant) and expressed interest from mass-market retailer, SBCM needs to act quickly or “it will probably never come again”. Jim Harris, Chief Operating Officer of SBCM was recruited to “lead the business and manage the company’s growth” as he had power of expertise. His leadership had guided the company to increase production quantity by adjusting the process whilst attempting to maintain quality products. Harris first method of managing the high demand and supply ratio, with the implementation of overtime for operators, is a clever plan. The company benefited his strategy as “within several months we were able to increase...