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Scharffen Berger

In: Business and Management

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Oakland University

Final Exam

Scharffen Berger Chocolate Maker

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INTRODUCTION

In May 2005, Jim Harris was looking into various options to improve efficiency and increase the value of the Scharffen Berger brand. Jim Harris is the Chief Operating Officer of Scharffen Berger Chocolate Maker. This is a chocolate company known for its rich chocolate flavor. The decision at hand for Harris was focused on a new ball-mill machine, which would increase capacity, decrease time of processing, and most importantly, not diminish flavor. The decision to purchase the $300,000 ball-mill looked at factors such as time savings and potential cost savings, as well as the potential 75% capacity increase. Harris also needs to look at his other areas where potential improvement could yield the desired higher demand in the realm of 50%, 100% and up to 150%. Such issues include: older machinery, co-packer relationships, inventory management and projection techniques. Scharffen Berger decided to implement the ball-mill and a 2nd melangeur and to increase capacity by 100%.

DICOVERY - OVERVIEW
The organization, Scharffen Berger of Berkeley, California is a premium chocolate maker. Founded in 1996 by Robert Steinberg and John Scharffenberger, the two later brought on Jim Harris to lead the business from the economic perspective. Operating under the goal to select the highest quality beans available, the company started operating in 1997 by testing small batches in a niche-type market before producing larger amounts. Expanding the business was the next step and adding staff and offices occurred over the next few years. As of May 2005, the company had 60 employees, five retail stores, and a main factory in Berkeley, California that also offered tours for customers.
Scharffen Berger has a large product line relative to the types of...

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