ATIF BILAL (MBA 4,B)

Family BusinessWestern Canada

Richard Carmon Purdy opened his first chocolate shop in 1907 on Robson Street in Vancouver

Canada.

How It Started

Pioneer

Richard Carmon Purdy was born on January 20, 1878 in London

Hiram Wesley Purdy, a farmer (father) Mary Ann Purdy (mother)

vision

To be the “leading Chocolatier in Canada”

We attract the best because we offer the best.

Best QualityPurdy's Chocolates are made using only the

finest ingredients from around the world including chocolate from Belgium, ginger from Australia, cashews from India, and dairy products delivered fresh daily from farms across Western Canada.

Present situation

largest chocolate retailer in Western Canada

second largest in Canada

55 stores in British Columbia, Alberta, and Ontario.

ExpansionSecond chocolate shop at 675 Granville

StreetIn 1918, according to the Wrigley's British

Columbia Directory, Purdy was considered a “Manufacturer and Retailer of High-Class Confectionery”.

1918 Robson Street store centre of Vancouver‘s

Fresh ChocolatesBurnaby (1930s) opened a new chocolate shop called Window

Made Candy.

1940Frank took over. He quickly learnt about the art and science

of making chocolates. He was also a visionary. New varieties of chocolates for his

customers Setting higher standards in marketingInventing machines and modernizing

production methods that are still in use in Purdy's twenty-first-century factory.

1950

Purdy's Famous Yard long box of chocolates has been delighting and surprising customers for more than 50 years!

Frank's wife, Joy idea of making box filled with chocolates that people could reuse as a gift box for ties?

1953 to 1963

Frank opened chocolate shop in Kerrisdale. (1953)Park Royal store. (1955)1963 Hugh and Frank Forrester put Purdy’s for

sale.

Eric had financial and retail expertise.

Charles had manufacturing and construction know-how.

It was a perfect fit.Milk and White Chocolate

1970 CHOKLIT PARK

1980 to 1982Purdy's had grown to 28 stores and was in

need of a larger factory and warehouse space.

In 1982, as Purdy's celebrated its 75th anniversary.

Staff moved into 57,000 sq/ft factory at 2777 Kingsway.

Opportunity to see firsthand how

chocolates were made.

1999 to 2004

Keran Flavelle took over.online shopping services to customers.

(1999)

Named one of The 50 Best Employers in Canada, by Hewitt Associates, a global human resources company in 2004, 2008 and 2009.

2005 to 2007

Karen Flavelle won the “Most Influential Women in Business” Award. (2005)

Purdy's Chocolates was inducted into the Hall of Fame(2007)

The same year the company turned 100 years old.

2008

This year Purdy's Chocolates was named #1 in the Top 100 Woman Owned Businesses by “Vancouver Magazine”.

Competitor

Hershe’s (American )

Laura secord (Canadian 1913)

Mars (American, 65 countries globally)

Ice cream

Purdy's Chocolates did a partnership with Island Farms to create the first ever line of Purdy's Premium Ice Cream.

Business Gifts23 different chocolates boxes.Online Gift Order.

WEDDING FAVOURS & EVENTS Set the tone for your special day. Handcrafted chocolate.

Perks to employees Product DiscountsEducational SponsorshipCareer DevelopmentRecognition ProgramsComputer Purchase ProgramRegistered Retirement Savings PlansEmployer-matched Charitable DonationsScholarship Program

Negative decisions

1920Overwhelmed by debt and hounded by

creditors story of Purdy's Chocolates might have

ended then and there chocolate lovers Kirkland and Rose saved

the company.

Employee at purdy’s"I could see the company was cheating and

not treating its workers fairly," says Yuen, who has worked at Purdy's for more than six years. Up until last year, even though both full-time and part-time employees worked Monday to Friday, eight hours a day, only those classified as full-time received benefits, including profit sharing, vacation leave and paid statutory holidays. "Part-timers got nothing."

Strategies

Growth Strategy (Western Canada to

Eastern Canada)

Differentiation (yard long box, wedding &

business gifts)

Related diversification (Ice Cream)

SWOTStrengths

Core competency (traditional & unique taste)

Quality as competitive advantage

Customers’ likeness

55 stores in Western Canada

Online Service (online shops and order)

Social Responsibility (choklit park, no child labor )

Weaknesses

Target market is limited (only in Western Canada)

No shelving

No Global Expansion

No Market Penetration (only upper crust)

Opportunities Chocolate Drinks

Middle Class market

Candy Market (like competitors)

American Market

Global Market

Super Stores

Threats

Competitor s’ Aggressive line extension

Bargaining power of suppliers High (No Price Contract)

Growing competition

Suggestions

Need to Expand Globally

Shelving

Super Stores

Target Lower & Middle Class market

Chocolate Drinks