商务英语—Bussiness Report

The investment project on Valentino Chocolates

Date of Submission: May 16,2014

Contents Introduction (2)

Discussion& Findings (2)

Conclusio n (3)

Recommendations (4)

Summary (5)

Introduction

Background:

V alentino chocolates are made in T urin, Italy. The V alentino Company’s products won a delicious and unique taste .V alentino has won many international awards. The company expanded fast. It has large-scale coproduction and sales.

Why profits falling:

However, in the last two years, the company has emerged some problems.

Firstly, there is a widespread price cutting in the industry;

Secondly, factory machines often break down;

Thirdly, demand for its Classic Bar is falling;

Fourthly, V alentino's new products, biscuits and cakes, are not selling well;

Finally, the staff’s morale is low.

Discussion& Findings

Before our discussion, we have 10 choices about the investment, but we have only€1.5 million. So we have to choice some more necessary items from them. Follows are what we have thought about these 10 items.

1. Extend the factory. €500,000

Increase the factory’s capacity by 30%

But it is not the most important, it cost too much.

2. Buy new machinery. €200,000

End the delays caused by the old machines breaking down

Most of the machine is need to repair.

3. Invest in more research and development. €200,000

Develop new products such as a low-fat chocolate drink, new biscuits/cakes.

Many girls like these things.

It isn’t the company most need to do.

4. Buy out a local competitor. €1.5 million

Reduce local competition.

But i t cost to much money, we can’t do anything else.

5. Establish a factory in the US. €1.3 million

Manufacture chocolates in a major new market

But it cost too much money, we can’t do anything else.

6. Launch a marketing campaign. €500,000

Increase sales of all products.

We can know what we need to do first.

7. Finance a market survey and research trips to the US. €100,000

Assess the marker potential for V alentino products.

We can know what people like, then we can do in the true way.

8. Invest in an existing group of cafes. €500,000

Become a partner in cafes which sell and promote V alentino chocolates.

9. Set up online sales. €150,000

Increase sales and profits.

Online sales are the new way to sell things, there are more and more people like shopping online.

10. Buy a new fleet of cars. €500,000

Increase motivation of the sales staff.

I t isn’t the most use ful way to inspire the sales staff, and it also cost to much.

Conclusion

After our discussion, we have made our final choices:

1.Buy new machinery;

https://www.360docs.net/doc/c413170851.html,unching a marketing campaign;

3.Finance a market survey and research trip to the US;

4.Invest in an existing group of cafes;

5.Set up online sales.

We believe that in order to improve company sales levels, to buy new machinery and launch a marketing campaign is the most necessary. Firstly, we all know that our factory machine is always break down, not only slows down the production speed, and this poses a threat to the health of employees. Secondly, launching a marketing campaign can increase our competitiveness and strength the innovation ability. However , all of them can help our company sell more products. Recommendation

We are going to make them in 2 stage: The preparing stage and the implementation stage, both of them are important and absolutely necessary.

In the preparing, we will focus on the physical facilities and our market. Details are as follows:

First of all, we should buy new machinery, especially the core machines, for the making procedure is the most important. We must have the advanced facilities. And the assembly lines’ machinery should be purchased as soon as possible to improve the staff’s working efficiency.

Then, about the market, we will finance a market survey and research trips to the US. This is very important for us to know what our customers are favor in. We will finish this part though different ways such as questionnaire survey, interview etc. and the survey items will be widen and targeted. As the United States is a big market for us, we will send groups of career men to the US to make the local survey, and our requirement is that they can deep-going to the public and get some data from the trips and analysis the data to get some information which we need. No matter the market survey or the research trips, they need to give us the survey reports, which reflect what information they get though the survey. We will produce our products according to the current situation, which they written in the survey report.

After the preparation above, we will turn into the implementation stage. In this part we will divide into three producers. Details are as follows:

Step 1: We will launch a marketing campaign.

This step is the most important in our investment, for it can rebuild the reputation and own more customers on our strong brand. But on the opposite, if we fail on the campaign, not only it will reduce our confidence, but people will keep on ignoring our products.

So we should make the full preparation for it. We will make the market campaign project first, the adverting plan, price plan, target customers plan, after service plan, on sales plan and the later plan will be included in the project. Of course the project should be made on the base of the survey reports which we got in the preparation stage. And then, we will put the project into practice. For some sales promotion, we will establish a special work group to be responsible for it to e nsure it’s gonging with a swing. And for other plans, we will also invite some professionals to make and carry them out, or do some guidance.

Step 2: Invest in an existing group of cafes.

It’s a good choice for more people to know it and needn’t cost muc h relatively. But

we must define the right position for it. We need choose the cafes before, for some top ones can improve our grade. And the places are also important, good sales will be in the busy streets, but the expenses will be high, so we have to balance the two key elements. In addition, we can design some new styles or tastes of the chocolates according to the different cafes to hold different people.

Step 3: Set up online sales.

This movement can be in progress at the same time of the step 2, for they are different areas for the sales. Online sale is a new and a strange manner for us. But it’s one of the main sales ways in current, we cannot neglect it. This may spend us a long time to be ripe for it. We should employ some technological people to make the web pages. And we have to arrange the delivery and transportation. Also we have to adapt to the on-line payment.

Ps:

This recommendation is a general plan now and will be changed whenever the investment project is carried out.

For every item’s more details, please look at the subproject of the business report.

Summary

After a series of discussion from the Board of Directors, we agreed the following investment plan:

1. Buy new machinery, it will cost 500,000 Euros. Because our factory machine is always break down, not only slows down the production speed, and this poses a threat to the health of employees.

2. Launching a marketing campaign, we need cost 500,000 Euros, we can increase our competitiveness and strength the innovation ability .What’s more, it can help our company sell more products.

3. Finance a market survey and research trip to the US, it will cost 100,000 Euros. In this way, we can assess the market potential for chocolates products and make more people know our products.

4. Invest in an existing group of cafes, we need cost 500,000 Euros. we become a partner in cafes which sell and promote chocolates, it can strength our sales ability.

5. Set up online sales, it will cost 150,000 Euros. Online sales could increase our chocolate sales and profits.

All above will cost 1.45million Euros. We will set side 50 thousand Euros to be our circulating fund for a rainy day.