Thorntons Chocolates the British Company, Thortons Chocolates, Case Study

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Thorntons Chocolates

The British Company, Thortons Chocolates, was established in 1911 by Joseph Thornton. Today, it is headquartered in Derbyshire England, has 381 company and 261 franchise shops, over 4000 employees, and annual revenue of over 180 million British Pounds. It is the largest independent and confectionary shop in the United Kingdom, and one of the oldest continually operating confectionaries in the world. Up until the mid-1960s it was primarily family controlled, but after 1968 began franchising and expanding under new leadership, although the Thornton family continued to be involved in major Board decisions (Thorton 2009).

Key Business Issues- Up until the 1980s, the company was primarily a seasonal business with a few very large peaks (Valentine's Day, Mother's Day and Easter).

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New strategies and branding moved this model towards a more balanced, year -on approach and an emphasis on Christmas, Birthdays, and other non-traditional Holiday occasions. In 1982 Thorntons opened in the United States. This, plus additional growth, caused the need for the construction of a new factory in 1984. Despite a number of strategies, 35% of sales are still in the 2-month period before Christmas, and 10% before Easter. This continues to impact manufacturing and retailing, causing temporary staff layoffs, manufacturing downtime, and strategic issues. Following a review of profitability and the direction of the industry, in June 2011, Thortons made the decision to close between 120 and 180 of its shops (Danaher 2011).

Strengths- The company has a number of.....

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