Directory 1: Business Development Plan (EDP)

Company Number Company Name

124 CHOCOLATES FACTORY S.A.

An EDP is the result of the company's planning and should contain a description of the company
and its strategies. A good EDP will allow you to evaluate future performance, clarify business
intentions, attract suppliers/customers and access financing. To achieve this, keep in mind that a
good EDP should be REALISTIC, CLEAR and COMPREHENSIVE (i.e., encompassing all important
areas of the business). Include the results up to the fourth period of play since the start of the
game.
1. Capacity v/s Business Environment: Start by defining your market.
a. Give a brief description of your current situation: type of activity by country,
production/sales capacity and your last sales (if you sold everything or not, if it
increased).

Country Economic Activity Production/sales capacity Total Sales

Production; Confite:12500 x shift

Confite: 2,133,250
confectionery and Total 37,500 x factory
Brazil chocolate
Chocolate: 2,347,000
Chocolate: 6000 x shift
Total 18,000 x factory Sold out in previous periods

Production; Confite: 15000 x shift

Confite: 1,650,000
Mexico confectionery Total 45,000 x factory
Sold out in previous periods

N/A N/A
Argentina N/A

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Directory 1: Business Development Plan (EDP)

b. Analyze by country the real business opportunities you have. That is, determine the
number of producers/retailers present, the amount of inventory, manufacturing
capacity (Factories)/product sales (POS) and describe the sales (retailers/consumers) on
the products the company markets.

Competitive
Country Inventories Capacity Sales
Environment
Es: 2,274,346
Fa: 2,307,387
Fi: 1,398,558
Es Li: 1,449,097
Fa Li: 1,416,575 Confite:12500 x shift
Chocolates:249
Fi Li: 904,011 Total 37,500 x factory
Brazil Confectionery:
Cal: 2,594,394 Chocolate: 6000 x shift
156 Total 18,000 x factory
Car: 3,054,005
Gom: 1,443,470
Cal ok: 1,462,134
Car ok: 1.911.025
Gom ok: 1.566.588
En: 801.734
Fa: 1,218,894
Fi: 1,072,967
Es Li: 347,641
Fa Li: 427,446 Confite:15,000 x turn
Chocolates:75 Fi Li: 284,868 Total 45.00 x factory
Mexico
Confectionery:51 Cal: 936.918 Chocolate: 7,000 x turn
Car: 1,370,298 Total 21,000 x factory
Gom: 817,255
Cal ok: 502.207
Car ok: 731,905
Gom ok: 631.913
En: 904,960
Fa: 755,025
Fi: 812,521
Es Li: 458,478
Fa Li: 310,507 Confite:11,000 x shift
Chocolates:50
Fi Li: 256,150 Total 33.00 x factory
Argentina Confectionery:51
Cal: 1,496,172 Chocolate: 5,000 x turn
Car: 1,232,339 Total 18,000 x factory
Gom: 1,174,475
Cal ok: 650.975
Car ok: 777,850
Gom ok: 896,649
S
2. Market Conditions: Describe, for all countries, the business opportunities they present. In

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Directory 1: Business Development Plan (EDP)

other words, analyze the behavior of the best product lines based on prices, inventories,
participants, demand and the country's economic conditions. Finally, comment on whether
you were able to identify an attractive market segment.

Country Description Opportunity Identified

In Brazil, 63% of the companies are

Production of light school and family
producers, and the largest market within
chocolates will be increased. as
the industry is in Brazil. The highest
demand will increase, and the
demand is for family chocolates and
Brazil production of regular chocolates will
candies.
be reduced.
The obesity rate increased, so a new sugar
As for confectionery, production of ok
tax was implemented. This will result in an
candies increased due to high demand.
increase in cost.

After Brazil, Mexico is the country where

most companies are located, only 28% of
To open a confectionery factory in the
the companies are producers of chocolates
country. There are more suppliers in
and only 25% of the companies are
Mexico retail than in production. Gaining
producers of confectionery, Retailers reach
access to a part of the market,
62%. the greatest demand for chocolates is
increasing revenues.
for school and fine chocolates, while
candies are the leading candy item.
Argentina is the country with the lowest
number of companies, both in retail and
production.
No, we did not identify any
Faced with a sharp global drop in cocoa
opportunities, on the contrary. Prices
production, a substitute has emerged
Argentina will increase and there is a shortage of
within the country, "leguminous".
cocoa. This does not make it an
In Argentina, the most requested products
attractive market for us.
are chocolates.

3. Corporate Objectives: Consider the analysis done previously and describe, briefly, which
objective you will pursue per country and what your plans are to achieve them. Plans may
include start-up activities, construction/sale of factories, opening/closing of POS, loans,
investments, potential contracts, specialization, projections, etc.

Country Target Plans

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Directory 1: Business Development Plan (EDP)

Brazil

Mexico

Argentina

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Directory 1: Business Development Plan (EDP)

4. Projections and Objectives: Based on the work done so far, determine the production/sales of items for 4 periods, the construction
of factories and opening/closing of POS, as well as the financial projections that this will entail. Finally, by country, determine the
break-even point in your operation.

Country Line Period 5 Period 6 Period 7 Period 8

Equilibrium Point Equilibrium Point Equilibrium Point Equilibrium Point
Chocolates $ 358.383 $ 358.383 $ 358.383 $ 358.383
6400 units 6400 units 6400 units 6400 units
Brazil 36% 36% 36% 36%
Equilibrium Point Equilibrium Point Equilibrium Point Equilibrium Point
Candies $274.941 $274.941 $274.941 $274.941
6706 units 6706 units 6706 units 6706 units
15% 15% 15% 15%

Chocolates N/A N/A N/A N/A

Mexico Equilibrium Point Equilibrium Point Equilibrium Point Equilibrium Point
Candies $390.662 $390.662 $390.662 $390.662
8139 units 8139 units 8139 units 8139 units
18% 18% 18% 18%

Chocolates N/A
N/A N/A N/A
Argentina
Candies N/A N/A N/A N/A

Total Sales 4.552.500 5.491.500 5.491.500 5.491.500

Gross Margin 3.210.110 3.762.748 3.762.748 3.762.748
Consolidated Operating income 2.703.610 3.256.248 3.256.248 3.256.248
Objectives and Profit for the period 1.952.708 3.026.625 3.026.625 3.026.625
Projections Heritage 13.020.706 14.074.199 16.902.323 19.730.445
ROA 15% 18,1% 15,1% 12,9%
ROE 19,5% 25,5% 25,5% 25,5%
ROS (return on sales) 42,8% 46,5% 46,5% 46,5%

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Directory 1: Business Development Plan (EDP)

5. Risk Analysis: Briefly describe the risks you face and why your projections may not
materialize. Additionally, propose a solution mechanism and the impact this will have on
your financial projections.

Country Risk Solution / Impact

Brazil

New strikes by producers

due to the constant rise in
crude oil prices, resulting in
Adequate utilization of installed capacity/increased
Mexico the closure of production
shifts. sales and lower variable costs.

N/A
Argentina N/A

This last section will help align your corporate objectives with the personal capabilities of each team
member, and give management a clearer picture of the internal reality of your company. Consider
that, ultimately, the goal is always to support you through feedback, as management wants your
company to succeed.

Company CHOCOLATES FACTORY

124 Company name S.A.
Number:

To position the company as one of the best producers of chocolates and

Mission:
confectionery in its various presentations.

To be a leading producer of chocolates and candies in the national and international

Vision:
market.

Member: Daniela Gallardo Camila Morales Andrea belquen

Role /
Position:

After completing the chart, you can revisit your EDP and make sure that everything is correctly aligned
and consistent. Remember that a good EDP is REALISTIC, CLEAR and UNDERSTANDING and shared by
all members of the company.