The paper "Strategic Management of Barry Callebut" is a good example of a management case study. The scope of strategic management has widened and an understanding of a given practices needs critical analysis of the supply chain. This case evaluates the world cocoa industry with a view to finding their production situations. Furthermore, the study takes a case study on Barry Callebut to assess factors that have contributed to the impending 15-year chocolate production shortage. Cocoa Production Situations--- Cô te d'Ivoire, Indonesian and the Dominican Republic Technological factors, including growing demographic shift to taking up production technologies, has ensured that these countries diversify their production thus improving their production by at least, 5 percent annually according to Vaast and Somarriba (2014).
In particular, according to the Department of Cocoa of the Dominican Republic (2012), the production grew between 17-24 percent between 2009 and 2011. In the same order, the volume of production in Cô te d’ Ivoire and Indonesian has been on increase with the volume of exports increased by at least 15 percent annually (International Cocoa Organization 2013). However, to analyse and monitor the external marketing environment (macro-environment) that have impacted on the three countries, Political, Economic, Social, Technological, Environmental and Legal (PESTEL) analysis is as shown below. P Current and future political environment remains positive for the production of cocoa in the three countries E Home economy and general taxation have been favourable especially in the Dominican Republic S Lifestyle trends and demographics have positively affected production as more and more people prefer cocoa T Competing technology development has negatively affected production as funding has been an issue especially in Cô te d'Ivoire E The environment is accompanied by the industrial organisation approach to determine competitive advantage L Losses in profit and marketing, as well as losses in terms of damaged company reputation, have affected production in Cô te d'Ivoire and Indonesian Cocoa Production Situations--- Peru and Mexico Beginning with Peru, cocoa production has been on increase going by the recent data from Peruvian confectionery market which gave a fairly strong rate between 2006 and 2010.
Peru has registered strong sales value more so on chocolate categories (Chery 2015). While Confectionery Report in Peru indicates that production of Cocoa is likely to drop in the coming years, marketing strategies adopted by cocoa companies indicate a positive trend in exploring newer markets especially in developed countries (Lä derach et al.
2013). Production is furthermore expected to grow in Peru owing to the fact that the confectionery market was projected to grow by 3.8% in 2012 to reach a value of $370.2 million. The situation in Peru is similar to that in Mexico with the production of Cocoa growing by at least 15 percent annually (Holguí n-Salas et al. 2015). According to the country’ s chocolate confectionery market, Mexico has succeeded in its marketing approach that has seen improvement in sales when it comes to molded bars, chocolate straight lines, chocolate countlines and boxed chocolate. P Marketing decisions are strongly affected by political decisions and regulation including capping E The economy is transforming at a considerable pace and account for the largely unpredictable and uncertain environment S Consumer buying patterns has positively affected cocoa productions in both countries T With Mexico and Peru focus on the rapid implementation of cloud computing, most of the productions are expected to increase E Both countries are grasping with globalisation meaning that the environment which needs to be assessed for strategic business decision making is continuously expanding L There has been a reduction of entry barriers driven by the industry deregulation Cocoa Production Situations--- Brazil and Cameroon Recent reports have indicated stable and favourable production situations of cocoa in Brazil and Cameroon.
Specifically, it is reported that Brazilian chocolate confectionery market grew by 6.7% in 2014 to reach a value of $5,116.3 million (Holguí n-Salas et al. 2015). This is a factor that indicates that the production situation is not only positive but the product design model, therefore, allows focusing efforts and consolidating specific expertise around the product and not the function, which brings in a more focused set of skills and experiences that necessitate processes of marketing.
Putting this argument correctly, marketing strategies in the country help in identifying unstructured or unformulated processes within production processes and as a result, streamline them for the needed volumes of production. The situation is different in Cameroon though. Other than damages caused by Black pod Cocoa, the country has experienced a number of marketing constraints that have affected production processes (Sonwa et al. 2016).