Professional Documents
Culture Documents
Submitted To: Sir Sultan Raza Submitted by: Mohammad Bilal Khan (Roll # 19) Mohammad Osama (Roll # 23) Rehman Siddiq ( Roll # 34) Syed Qamar (Roll # 39)
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Contact Details
Name: Mustafa Chagla Telephone: 35301927 ; 3530 2006 Fax: 3583 7345 Mobile: 92 312 288 5377 Email: mustafa.chagla@pk.butlerschocolates.com Office: Plot 10-C, 6th Zamzama Commercial Lane, Phase V, DHA, Karachi Facebook: www.facebook.com/butlerspk
Type of Franchise
Butlers Chocolate Caf has its origin in Ireland and its Master franchise for Pakistan is bought by a local group of people here in Karachi. As these people hold the Master Franchise so any new investor or businessmen willing to open up a butlers franchise anywhere in Pakistan will have to go through these people.
Butlers History
Butlers Chocolates began in Dublins Lad Lane in 1932. The company was founded by a pioneering lady called Marion Butler who named her luxury chocolate creations Chez Nous Chocolates. Marion established the company in the heart of fashionable Georgian Dublin, making her delicious confections by hand. The company is still owned and run by the Sorensen family. Chez Nous luxury chocolates were regularly sold at the very popular Horse Show and Spring Show in the RDS in Dublin and the company's first retail store was opened in the Grafton Arcade in 1960. The brand was renamed Butlers Irish Chocolates in 1984, in memory of Marion Butler. To mark the companys relationship and early beginnings with the Dublin Horse Show, a rider and horse remained part of the Butlers Irish Chocolates logo for many years.
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Franchise Territory
They are currently operating in Karachi only with their caf at zamzama. However, they have plans of expanding their business and opening up more cafes both in Karachi and other cities of Pakistan. Though they have one single caf currently, they keep on putting up stalls in malls to market themselves and get access to their customer base.
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Succession Clause
No explicit and absolute succession clause was told to us by the contact person but he said the succession if ever happens would not necessarily be by the family member only. It can be or cannot be by the family members. There is no such clause that only family successors can take on the business and business can also be sold to a third party considering the liabilities and other contingencies business have. Though this was not an absolute answer to our question but we still got an idea about the succession plan of business that there is not such clause of only family successors owning the business and business stakes can be sold to third parties as well depending on the needs of the business.
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Technology Used
They are technologically advanced and understand the need of keeping the pace with time. Though they do not have an ERP or other such integrated software but they have different softwares being used for different purposes. For example, they have a different software for accounts, another software for inventory keeping etc. They do not go for an ERP or other such integrated softwares because they think they do not currently need it. They think the benefits derived from such a software would not be enough to compensate for the high costs incurred on it and they are not currently as big that they need an ERP or integrated softwares. However, they plan to get such software systems implemented in their organization if they grow big enough for that in future.
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Conclusion
Through our research we found out that the holding company acts only as a supplier to the franchise and they do not really interfere much or have much to do with the franchise. They just supply the product (chocolates) to the franchise and gets royalty on sales. The interesting part was that though franchise is not given the permission to produce chocolates and they can only import them from the parent company, they have still been able to innovate and add value to their franchise with snacks (sandwiches etc.). Butlers Chocolate Caf is a family owned business that has been able to innovate and managing the business professionally. Though they do not yet have separate departments for marketing, finance, HR etc. or any particular organizational structure but that is because they do not find a need for it yet and they have planned to have all this implemented in their organization as they grow big enough.
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