Cowgirl Chocolates Case

1. Synopsis
The case of Cowgirl Chocolates is about a small chocolate producer, Cowgirl Chocolates, and the businesses owner/artist Marilyn Lysohir dilemma with how and why her business venture wasn’t profitable. Marilyn expresses her love for making award winning hot and spicy chocolates. She also discusses her hold up on different products, their packaging, and her disliking of using distributors. Marilyn doesn’t know why she isn’t making a profit, and the problem isn’t with her chocolates, it’s her lack of trust for others and her impulsiveness on making the company more of an art than a chocolate company.

2. SWOT Analysis

Strengths
* Award-winning chocolates (p.66)
* Variety of Chocolates, and other sweets (p.67)
* Her and her husband Ross’ artistic ability (p.66)
* Cowgirl Chocolates ad (p.66)

Weaknesses
* Distribution (p.72 & p.77)
* Packaging (p.71)
* Cowgirl Chocolates outlets and vendors (p.73)
* Lack of knowledge analyzing financial reports (p. 76)
* Give-a-ways and a surplus in inventory (p. 75-76)

Opportunities
* Chile Pepper Magazine (p.66)
* Holiday customer promotion deals (p 68 & p.76)
* Military PX stores (p.71)
* Local favorite (p. 72)

Threats
* Seattle Chocolates
* Customer demand
* Cowgirl Chocolate Ad
* Distributor and Packager’s fees (p.72-74)
* Low sales in certain cities (Seattle and San Francisco) (p.73)

3. Overcoming weaknesses with strengths
Page 77 exhibit 4 puts Cowgirl Chocolate’s financial problems on display. The company’s expenses were $31,423 for cost of sales, and an additional $53,447 for total expenses out weighs the company’s low revenue, which stood at $30,046 for the year 2000. Exhibit 5 on page 78 also illustrates that Cowgirl is negative $5,051.15 in net profit after taxes. I feel that an easy way to cut some company expenses would to not travel to as many trade shows. I understand Cowgirl is trying to spread the word about their trophy chocolates, but there are other means in publicizing and advertising that are cheaper. Cowgirl spent $5,786 for travel, which includes airfare, lodging, meals, and gas. They also spent an additional $6,423 on trade shows, which includes give-a-ways. I know that trade shows are very important and needed for candy companies, but having two artist collaborate on designing the chocolates along with two award-winning products should showcase the brands credibility. That being said, if you know you have something good and your not making money on it, stop spending on unneeded expenses.