This paper represents a business plan and feasibility study for a chocolate factory outside Riga/Latvia. In its first section the paper depicts product line, organizational principles, supply chain strategies, and marketing strategy. In its second section it bases the enterprise on analysis of market and business environment in Latvia. It can be shown that the project falls in line with both economical developments and national and EU policies favoring foreign investment.
The paper assumes a fictional but realistic mother firm in the UK to expand to the national market of Latvia in this way. The business plan comprises a description of products, a marketing strategy, a depiction of organization, basic corporate strategies and envisaged supply network, and a schedule for implementation. The feasibility study provides market and conditions analysis and financial rationale.
Table of Contents
0 Abstract
1 Introduction
2 Business plan
2.1 Products
2.2 Organization
2.3 Supply network
2.4 Marketing strategy
2.5 Schedule
3 Feasibility study
3.1 Market and conditions
3.1.1 Economical analysis
3.1.2 Market analysis
3.2 Financial rationale
4 Conclusions
5 Bibliography
Objectives and Core Topics
This paper presents a business plan and comprehensive feasibility study for the establishment of a chocolate manufacturing facility near Riga, Latvia. The primary objective is to evaluate the viability of expanding a fictional UK-based company into the Latvian national market by analyzing economic conditions, organizational requirements, supply chain strategies, and marketing approaches.
- Strategic business planning for international production expansion.
- Evaluation of the Latvian business environment and economic climate.
- Implementation of supply chain flexibility and sourcing strategies.
- Development of a marketing strategy based on cultural sensitivity and local narratives.
- Financial rationale and risk assessment for foreign direct investment.
Excerpt from the Book
2.3 Supply network
Supply network management focuses on supply chain flexibility (SCF). The term network instead of chain already indicates a radical understanding of flexibility. As for ourselves, flexibility primarily refers to sourcing flexibility, and applies to business relationships with vendors, marketing companies, and retailers, in order to give SNM the opportunity to constantly minimize costs. The underlying rationale is that chocolates are not a highly innovative product, and thus their production does not need, for instance, elaborated cooperation among product developers of various suppliers. Thus, we rely on sourcing flexibility, rather then vendor flexibility (Ill. 1).
Sourcing flexibility refers to our freedom of reconfiguration of the supply chain, vendor flexibility refers to capacities of flexibility of business partners. Thus, we are not particular with our business partners. We do not contract under framework agreements, but rely on a pool of approved suppliers who fulfill minimum criteria (cf. Gosling et al. 2010; see Ill. 1).
Similar measures of flexibility will neither be applied with HRM (see 2.2), nor with logistics. Instead, in logistics we aim on a tailor-made solution provided by suppliers with high flexibility capacity.
Summary of Chapters
0 Abstract: Provides an overview of the business plan and feasibility study, highlighting the project's alignment with Latvian economic developments and foreign investment policies.
1 Introduction: Sets the premise of a fictional UK-based mother firm expanding into Latvia, outlining the scope of the business plan and the components of the feasibility study.
2 Business plan: Details the product range, organizational structure, supply chain network, marketing strategy, and the operational implementation schedule.
3 Feasibility study: Examines market conditions, including economic and market analyses, and provides the financial rationale for the investment.
4 Conclusions: Summarizes the viability of the project, acknowledging the socio-economic impact and the cross-cultural challenges involved in the expansion.
5 Bibliography: Lists all academic and industry-specific sources used throughout the report.
Keywords
Business Plan, Feasibility Study, Latvia, Chocolate Production, Supply Chain Flexibility, Sourcing, Marketing Strategy, Image Transportation Theory, Foreign Investment, Economic Analysis, Market Analysis, Financial Rationale, Organizational Management, Consumer Lifestyles, Cultural Sensitivity
Frequently Asked Questions
What is the core purpose of this document?
The document serves as a structured business plan and feasibility study for setting up a chocolate production facility near Riga, Latvia, by a UK-based parent company.
What are the central themes of this work?
The core themes include international business expansion, supply chain management, economic feasibility in the Latvian market, and marketing strategy within a specific cultural context.
What is the primary objective of the proposed project?
The objective is to establish a sustainable production plant that contributes to the local economy, satisfies consumer demand for differentiated products, and provides an attractive return on investment.
Which scientific and analytical methods are applied?
The work utilizes business environmental analysis, economic growth assessment, financial modeling, and applies theories such as Image Transportation Theory (ITT) and supply chain flexibility frameworks.
What is covered in the main body of the paper?
The main body covers the business plan components (products, organization, supply network, marketing, schedule) and a feasibility study focusing on market conditions and financial rationales.
Which keywords best characterize the report?
Key terms include Business Plan, Feasibility Study, Latvia, Supply Chain Flexibility, Foreign Investment, and Marketing Strategy.
How does the company handle supply chain risks?
The company focuses on 'sourcing flexibility' rather than 'vendor flexibility', relying on a pool of approved suppliers who meet minimum criteria instead of rigid framework agreements.
What role does 'cultural sensitivity' play in the marketing strategy?
The strategy emphasizes the importance of positioning the chocolates as Latvian products produced by locals, tapping into national pride and local narratives to connect with the target audience.
What is the exit strategy for the project?
The project includes an exit scenario where, in the event of failure, the facility could be re-utilized by the UK parent company to manufacture products for the British market.
How is the financial investment structured?
The EUR 22 million investment is funded through a combination of substantial internal earnings from the UK parent company, loans from British financial institutions, and stock emissions.
- Quote paper
- Wolfgang Kemptner (Author), 2017, Business plan for a chocolate factory in Latvia, Munich, GRIN Verlag, https://www.grin.com/document/373589
