
To Determine:
To evaluate Theo's new strategy in light of the company's strengths, weakness, opportunities, and threats.
Introduction:
Theo Chocolate was started by Joe Whinney in Seattle in 2006 with its name encouraged from Theobroma Cacao, a Greek word means Gods' food. Theo Chocolate was established based.
On the idea of creating an environmentally friendly chocolate and fair employment to farmer. Joe'svision is to form a business model comparable to Starbucks, the difference is "green" chocolate instead of coffee.

Answer to Problem 1OTJVC
Solution:
- Strengths: Theo has formed certain strengths. Firstly, it has established good reputation within the industry and clients. Secondly, they have established a strong marketing and sales strategy.
- Weakness: As Theo chocolate promotes environmental protection they use green energy to manufacture as well as organic materials, so their cost of production is higher than competitors.
- Opportunities: There are new technology advancements that are possibly reduce the costs of using green energy which would help Theo chocolate to lower down their cost of production hence price of finished products.
- Threats: Apart from opportunities there are threats to Theo as well. Theo is operating in a low growth industry and competition level is increasing.
Explanation of Solution
From looking at the video it seems to me that he has a good manufacturing facility and he has a good management team which brings the strengths to the company as well. I really couldn't tell if there were any weaknesses because everything just looked so great and seem to be running smoothly for the company. Theo seems to now have a more positive market approach and brand recognition for the company to explore more opportunities. The only threats this company would face from my opinion is not being able to get the chocolate beans they desire to use to make their chocolates.
- Strengths: After several years of operation, Theo has created certain strengths. Firstly, it has developed good reputation within the industry and clients. Secondly, they have developed a strong marketing and sales strategy. For instance, their successful marketing technique was to introduce the factory tour which turned into greater consumers brand awareness. Similarly, they also developed courses and classes that teach consumers about goodness of chocolates or things people can do with chocolate.
- Weakness: As Theo chocolate promotes environmental protection they use green energy to manufacture as well as organic materials, so their cost of production is higher than competitors. Green energy also requires high maintenance cost. When cost of production is high it increases the price of finished goods.
- Opportunities: There are new technology advancements that are possibly reduce the costs of using green energy which would help Theo chocolate to lower down their cost of production hence price of finished products. Furthermore, each year there are several holidays when chocolate is purchased a lot such as Thanksgiving, Halloween or Christmas which are opportunities for Theo to come up with innovative products and capitalize consumers interest as well as increasing consumers knowledge of their brand and goodness of organic chocolate.
- Threats: Apart from opportunities there are threats to Theo as well. Theo is operating in a low growth industry and competition level is increasing. Hence Theo will have to constantly be creative with their products and marketing strategies in order to compete.
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Chapter 8 Solutions
EBK MANAGEMENT, LOOSE-LEAF VERSION
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