Ask Operation Management Expert

Regarding the following text:

When the founders of Chocomize graduated from college in 2009, the job market looked bleak and they didn’t receive job offers that interested them. One day at the supermarket, the guys visited the candy section and loaded up on candy, chocolate, and nuts. They accidentally left their purchases in the car on a hot summer day and when they discovered their mistake, the chocolate had melted around everything and merged into one giant ball. Like typical poor, unemployed graduates, they put the amalgamation in their fridge to eat later and as they hacked off portions, noticed that it was delicious. Inspired, they scraped together $100,000 from relatives and friends and launched a web based business where people could create custom chocolate bars. The concept caught on slowly at first, but then Chocomize received national coverage through magazines such as O - The Oprah Magazine, The Costco Connection, and Brides and sales took off.

In their first year Chocomize sold fewer than 150 bars a day but this increased to more than 10,000 bars a month in their second year, a 250% growth in sales. By the end of 2010, they employed 5 full time workers in addition to the founders. (International Herald Tribune, October 2010) While sales benefited from media coverage, it created operational headaches. When Oprah mentioned their company in her magazine, Chocomize was flooded with so many orders that their website crashed; they lacked employees to handle the volume; and their white chocolate machine didn’t have enough capacity. The founders also decided to turn down an order from a large retailer for 15,000 candy bars that would have been distributed to customers in stores over Christmas because it would have interfered with their ability to deliver normal orders within their promised four day delivery time.

Because of increased demand, by early 2012 Chocomize had relocated to a location with four times as much space as their first location, giving them 5,500 square feet of office, storage, production and packaging space. They also added four more employees and successfully filled thousands of orders over the winter 2011/2012 holiday season (from Thanks giving through Valentine’s Day.)  

What is the key trade off for Chocomize ?

a. Product selection and cost

b. quality of service and cost

c. innovation and capability and cost

d. product selection and quality of service

e. Quality of service and innovation capability

f. innovation capability and product selection

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92571934

Have any Question?


Related Questions in Operation Management

Conflictdefine functional versus dysfunctional conflict in

Conflict Define functional versus dysfunctional conflict in a work group and explain how you can increase functional conflict and decrease dysfunctional conflict. Develop a response that includes examples and evidence to ...

For this assignment you will need to find 2 articles in

For this assignment, you will need to find 2 articles in business that can help describe what are IT strategic initiative being undertaken by an organization are like. Choose a different organization for each of the arti ...

Coping with problems joe is a little nervous he has just

Coping With Problems Joe is a little nervous. He has just been transferred from another plant to take over a production line. Production is down and there is a serious problem with absenteeism. To make matters worse, the ...

Over 30 years ago michael porter identified a holistic

Over 30 years ago Michael Porter identified a holistic approach to understanding how competitive forces shape strategy. He posited that the only way to truly insulate an organization from underlying economic volatility i ...

You are the contracting officer for an air-to-ground

You are the contracting officer for an air-to-ground missile development program. A contract for pre-production models of the missile was awarded by your predecessor and the contractor is behind schedule. In a program me ...

The ikea case provides an excellent opportunity to apply

The IKEA case provides an excellent opportunity to apply strategic management concepts to a large privately-held company that is expanding into India. IKEA is a Netherlands-based Swedish company with a presence in 44 cou ...

Can you answer for me the following questions about social

Can you answer for me the following questions about social loafing and the three main causes of free-riding. 1. Give a description of the phenomenon of social loafing. 2. Give a description of the phenomenon of free-ridi ...

1 analyzing the bridgestonefirestone and ford motor company

1. Analyzing the Bridgestone/Firestone and Ford motor company, is it sufficient to use the ISO/QS 9000 standards as the main basis of vendor/product selection? 2. What position to these cars company ( 1. Volkswagen, 2. F ...

Research the effect of primary and secondary seat belt laws

Research the effect of primary and secondary seat belt laws on the occurrence of motor-vehicle injuries and fatalities. Explain how epidemiologic studies influenced the development of current seat belt laws. Describe how ...

Please provide a brief paragrap of the key takaways from

Please provide a brief paragrap of the key takaways from each of the following topics: Designing Clear Visuals in business reports Designing Successful Documents and Websites Writing Winning Proposals

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As