Read the case study “Habitual Chocolate: Expansion Opportunities” from the Harvard Business CoursePack.
Prepare a business letter addressed to the owner’s partners. This letter should include an introduction (generally, what you have been asked to do or evaluate), analysis and findings (goals and ambitions, present state, and baseline assessment), your recommendations (what you believe they should do), and a conclusion (generally thanking them for the opportunity to provide them guidance on the subject).
Address the following questions regarding Habitual Chocolate’s operations in your letter:
What are the pros of the business?
What are the cons of the business?
What implications can be drawn from this analysis?
Address the following questions regarding the industry in your letter:
Do the industry conditions have an impact on the owner’s decision?
What are the advantages of selling the product in Southwestern Ontario?
What are the disadvantages of selling the product in Southwestern Ontario?
Prepare financial statements (income statements and balance sheets) for the next three years. First, create a baseline pro forma projection (Scenario I), assuming the business continues in the current location; Second, create Scenario II, assuming the company expands into Woodstock for its manufacturing operations (the Woodstock option). Use the financial data provided in the case for constructing both scenarios. If you need to make assumptions to complete the income and balance sheet accounts, annotate the assumptions you make. These annotations can be the right of your financial statements or notes following the financial statements.
Finally, address what Habitual should do next (make recommendations on staying where they are or expanding to Woodstock), paying particular consideration to their ambitions, goals and concerns that the Western Fair Farmers’ Market may prohibit manufacturing (of chocolate) within the next five to ten years.
Include in the body of your narrative letter the charts and financial statements (Excel) needed to create the two scenarios. Label and reference all statements and charts. Submit as a PDF.
MLA style is not applicable to this assignment. For writing help, visit The Writers’ Studio or Purdue’s OWL (Online Writing Lab)（https://owl.purdue.edu/）. You are encouraged to use headers, sub-headers, charts, graphs, etc. to communicate your message in addition to the required text.
There is no minimum or maximum letter length. You will be assessed, in part, on your ability to address the questions thoroughly and convincingly.
Include an applicable letter opening and closing and apply all conventional professional letter formatting. Be sure to apply Grammarly（https://www.grammarly.com/） before final submission, using Document Type → Business → Business Letter. All Grammerly.com scores should be 90 or higher, and any issues reported should be either remedied or accepted as a personal style choice. Your submission will be subject to review in SafeAssign as well.
For the exhibits, either embed spreadsheets directly into the letter, or prepare them in Excel and Paste Special/Paste Link the spreadsheets
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