Final answer:
The decision to sell locally made baked goods at Theo Chocolate is a strategic business decision requiring analysis of market competition and product synergy. Assessing the broader market's competitive landscape, as in the case of Whole Foods Market and Wild Oats Market, is vital.
Step-by-step explanation:
The decision of whether Theo Chocolate should start selling locally made baked goods alongside their chocolate bars is indeed a strategic decision. This involves considering the long-term direction of the company and assessing how these supplemental products might complement their existing ones. Making such a decision requires understanding the competitive landscape, the potential for market expansion, and the alignment with company values such as organic and fair-trade practices.
For instance, entering the market of locally made baked goods could diversify Theo Chocolate's product line and create synergy due to the complementary nature of chocolates and baked goods. This might appeal to their organic-minded customer base. However, it is also essential to consider the competition. Looking at the February 2007 attempt to merge by Whole Foods Market and Wild Oats Market, which were considered small in the broader groceries and specialty food products market, Theo Chocolate's management should analyze how substantial the competition is within this niche market and how such a move would position the company in the broader market.