1 Rationale
Valentino chocolates are made in Turin. They are luxury products with a unique taste and have won many international awards.
The company has expanded rapidly over the past ten years. It now has almost 300 employees, 75 company-owned shops. However in the last 2 years, soles growth has slowed down and costs has risen. This has caused a fall in profits.
2 Objectives
To solve the current problems and enable Valentino chocolates to become a competitive international business, we propose an investment of € 1.5 milion.
3 Options and benefits
The Board of Valentino Chocolates has agreed the following investment plan:
Firstlly we need to invest in new machinery. This should give us ability to making effective technological process in producion and restricting cost of fixed old machinery.
Invest in an existing group of cafes is the second area that we need to develop. This way we can reduce a time of finding a new sells point and at the same time we have a stable sells point where the customers allways can find fresh and delicious produce.
Finally, buy a new fleet of cars should cause increase motivation of the sels staff and make us more modern.