1 Treacy and Wiersema distinguish three value strategies. At Barry Callebaut, elements of each of these three strategies are visible.

a With the information in the case, show for each value strategy how it has been integrated into Barry Callebaut’s activities.
b According to Treacy and Wiersema, every value strategy must be performed to a certain minimum level, but the company should excel in one of the three value strategies. Explain which value strategy for Barry Callebaut is the ‘key value strategy’. CallebautTwo thirds of the world’s cocoa is produced in West Africa. Ivory Coast has the biggest share. The market price for cocoa, like other raw materials for the food industry, is subject to strong fluctuations. The price was under $1,000 for a thousand kilos in 2000, rising to over $3,000 in 2015, and since then has decreased to around $2,800 in 2022. When the price of cocoa falls, a number of farmers in West Africa might turn to lowering production costs by using child labor or even slave labor. The importance of sustainable, ‘fair’ cocoa may be clear, but an increasing demand for sustainably sourced and ‘fair’ products does mean that production prices will rise. The unstable political situation in many countries in West Africa also includes a risk for price developments.In chocolate two important types of companies can be distinguished: the chocolate maker and the chocolatier. The chocolate maker processes cacao beans into basic chocolate. The production of basic chocolate is dominated by two chocolate makers: Barry Callebaut and Cargill. A large part of the chocolate in our world is supplied by one of these two chocolate makers.Chocolatiers use this basic chocolate to make products (in the form of bars, bonbons, etc.). These are partly large companies, such as Cadbury or Nestlé, and partly small specialized businesses such as certain bonbon makers.The supply chain is shown in Figure 10.10.The global chocolate confection market (the sales of all chocolatiers together) is estimated at about 100 billion dollars