Factors Influencing Sales And Profitability Of Heavenly Chocolates: A Research Study

Background

Decision making is one of the major aspect that is related to the development of the factors that are related to the development of the factors that is associated with profitability of the organization (Hair Jr et al., 2015). The purpose of the study is to understand the factors that are influencing the sales of the company. The study will be enlightening the areas that will be impacting the aspects that are related to the development of the factors that are related to the operations of the organization. The organization for the purpose to conduct the research is Heavenly Chocolates. The study will be detecting the key issues in the organization and deliver a research approach for the determination of the cause of these problems. This study will be emphasizing on the aspects that are related to collecting the data from the secondary as well as primary sources for the approach of the research.

Heavenly Chocolates is one of the renowned chocolate makers in Australia. It is located at the Hay Market in Sydney. This organization is specialized in making the premium chocolates and one of the most popular dark chocolate pralines. The company is having a significance presence in the online as well as the offline platform. The organization is concerned to increase their sales as it has been observed that there are significant drop in the sales of the company. The online sales have also dropped due to the low production capacity. It is one of the major aspect that is related to the profitability of the organization.

Sales Turnover is one of the major aspect that is associated with the company (DeConinck & DeConinck, 2017). However, when the sales of Heavenly Chocolates is going downwards then it becomes important to research to find out the key areas that are responsible for such incidents. The research approach to detect the areas that are responsible for the diminishing sales in the organization. The research is needed for the identification of the aspects that can influence the company in the development and strengthen their position by stopping the decline in sales along with increasing production capacity, helping to cultivate a plan for the development. This is a significant problem for the company as it is important for the company to maintain a good relationship with the customer (Nyadzayo & Khajehzadeh, 2016).

Health of a business depends on the determining the practices that a business is going to adopt as well as the impact of the practice for the development of the key areas that will be responsible for the growth of the organization (Giorgi, Shoss & Di Fabio, 2017). It is important to assess the present business practices that have adversely influenced the Heavenly Chocolates. The business practices is one of the important aspect that has contributed to the development of the organization as it determines the attributes that the organization is going adhere (Chang, 2016). Production capacity is also important part for any business (Zheng et al., 2016). The company is struggling with the meeting the demand of the customer so it is important for the study to be conducted, which can reflect the potential of the organization.

Research Objectives

Thus, the research becomes important for the development of the factors that will be contributing to the aspects that are related to the processes and practices that the business is adhering along with the hierarchy of the organization. The study will be considering, what are the factors that have influenced Heavenly Chocolates for their diminishing turnover.

The present aim of the study is to incorporate the aspects and detect the elements in the organization that have impacted the organization and its sales of chocolate. Thus, the main objectives for conducting the study is:

• To analyze the organization and identify the factors that have influenced the sales to decline.
• To find the influential processes and practices in the organization that have significant impact on the production and profitability of the organization.
• To propose the means by which the organization can sustain their business, increase the sales and improve the production capacity.

Q1. What are the key influencing factors responsible for the diminishing sales in Heavenly Chocolates?

Q2. What are the practices and process that can influence the production and profitability of Heavenly Chocolate?

Q3. What are the probable ways that can be incorporated to improve the production capacity of Heavenly chocolates and increase their sales? 

Research philosophy is one of the most important aspect towards the approach of the research (Quinlan et al., 2019). The main three types of philosophies includes interpretivism, positivism and realism (Edson, Henning & Sankaran, 2016). This study will be taking a philosophical approach of realism as it incorporates the critical analysis of the individuals along with the analysis of the organization at various levels.

Collection of data is one of the most significant aspect that is related to the development of the facts that are responsible for influencing the organization. Thus, the study will be incorporating two types of data that are known as primary and secondary data collection method.

The secondary sources of the data is the data that have been published and which is available in the various places such as library, internet and any publishing platform (Johnston, 2017). In this case the secondary data is the documents that are projecting the adopted processes and practices in the organization along with the sales report and financial report of the company. However, this type of data comes with their own advantages and disadvantages that are stated below:

Disadvantages: There are redundant data that are already bundled with the significant data that makes it difficult to relate the data with the study. There is another disadvantage in form of the accuracy of the data as it cannot be determined by just looking at the data (Neuman, 2016). Another factor is the relativeness of the data as the data that has been considered for the research can be outdated. In this can it the disadvantages can come in form of the above stated ways (Neuman, 2016).

Research Philosophy and Approach

Advantages: There is significant advantages for the utilization of the secondary data which makes it one of the favourite for conducting the research. The key advantage of the secondary data is the availability of such data (Cole & Trinh, 2017). This is one of the most significant data for the proposed research as it is important for the study to analyze the business practices along with the financial data of the organization. There is another significant advantage as it is one of the most economical way to get the necessary data for the research purpose (Savino et al., 2017). This is one of major contributor for saving the research related time as it is one of the most efficient way to get the data.

This is one of the most significant data that is related to the research as it is collected from the samples that have any form of influence on the organization. Primary data is the data that has been taken from the samples directly (Neuman, 2016). This is the process that includes surveys, interview along with getting the feedback from the sample via online polls. In this case the primary data will be collected from the workers to analyse the potential for the production. The primary data for the research will be consisting of the interviews from the management as it is one of the major aspect for the determination of the practices that are presently being adopted by Heavenly Chocolates. The primary sources of data is inclusive of the advantages as well as disadvantages that are stated below:

Disadvantages: One of the key disadvantage that is associated with the primary research is associated with the cost of conducting the research. It is one of the most significant disadvantage. The procedure of collecting primary data is also time consuming (Neuman, 2016). Thus, it is important to state a timeline for the research. There is another drawback in form of biasness of the audience as it cannot be detected. It is one of the major aspect that is related to the development of the factors that are liable for their contribution in the study. In this case time and cost along with the unmeasurable biasness can be a disadvantage.

Advantages: There is existence of advantages with the primary collection of data. This gives a platform for the development of the study to be conducted whenever it is needed. Primary data also provides the platform to the researcher with original point of view of the people associated with the organization (Mills et al., 2015). There is another advantage that is the data is specific which reduces the redundancy of the data.

Fig: Gantt Chart

(Source: Created by Author)

The key expectations from the research is positive. The research can possibly identify the key influencing factors that have contributed to the diminishing sales. The research will be liable for the projection of the key practices in the business that can influence the growth of the organization. The study can identify the areas that can result in the development of the process that can influence the growth in the production to meet the customer demands.

References

Chang, J. F. (2016). Business process management systems: strategy and implementation. Auerbach Publications.

Cole, A. P., & Trinh, Q. D. (2017). Secondary data analysis: techniques for comparing interventions and their limitations. Current opinion in urology, 27(4), 354-359.

DeConinck, J., & DeConinck, M. B. (2017). The relationship between servant leadership, perceived organizational support, performance, and turnover among business to business salespeople. Archives of Business Research, 5(10).

Edson, M. C., Henning, P. B., & Sankaran, S. (Eds.). (2016). A guide to systems research: Philosophy, processes and practice (Vol. 10). Springer.

Giorgi, G., Shoss, M., & Di Fabio, A. (2017). From Organizational Welfare to Business Success: Higher Performance in Healthy Organizational Environments. Frontiers in psychology, 8, 720.

Hair Jr, J. F., Wolfinbarger, M., Money, A. H., Samouel, P., & Page, M. J. (2015). Essentials of business research methods. Routledge.

Johnston, M. P. (2017). Secondary data analysis: A method of which the time has come. Qualitative and quantitative methods in libraries, 3(3), 619-626.

Mills, J. A., Teplitsky, C., Arroyo, B., Charmantier, A., Becker, P. H., Birkhead, T. R., … & Bushuev, A. (2015). Archiving primary data: solutions for long-term studies. Trends in Ecology & Evolution, 30(10), 581-589.

Neuman, W. L. (2016). Understanding research. Pearson.

Nyadzayo, M. W., & Khajehzadeh, S. (2016). The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, 262-270.

Quinlan, C., Babin, B., Carr, J., & Griffin, M. (2019). Business research methods. South Western Cengage.

Savino, M. M., Manzini, R., Della Selva, V., & Accorsi, R. (2017). A new model for environmental and economic evaluation of renewable energy systems: The case of wind turbines. Applied energy, 189, 739-752.

Zheng, Y., Sassi, A., Muth, M., Birur, D., Karns, S., Brophy, J., & Bradley, S. (2016). THE ROLE OF A PRODUCTION CAPACITY LIMIT IN INTERNATIONAL TRADE POLICY ANALYSIS. Journal of Education Research, 10(3).

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