Biddy Essay

449 Words2 Pages
1. Explain the challenge Elizabeth faced in meeting her capacity needs. What should she have considered before moving into the larger facilityInitially, the business operated at a loss. But with time,the business was able to attract new and loyal customers. This growth in itself was a challenge because Elizabeth over estimated the growth capacity of her business. This in turn cost herheavily since she ended paying for unused space in the new facility. Elizabeth could have avoidedthis additional operating cost by analyzing the growth trends and potential of her business before relocating to a new facility.It is through such business growth potentials analysis that one is able to makestrategic management decisions (Stokes & Wilson, 2010).She could have also considered inviting business experts who could have advised her correctly after doing the study on the Biddy’s bakery for sometimes 2. What is wrong with the proposal made by the team of business students? Why? The Biddy’s Bakerys missionwas to producedifferent kinds of baked goods (pies, cakes,bread, pastries, tarts, quiches, cookies and crackers) using the traditional method and selling them to general public and local restaurants. But the team of business students proposed that the business should deal with the production of McDoogle pies and selling them twice to a local grocery chain store. This proposal is totally different from the mission of Elizabeth’s business hence changing the business completely. Therefore the proposal of the students is wrong since it implied changing the original mission of the business. 3. What type of operation does Biddy's Bakery currently have in place? What type of operation is needed to meet the proposal made by theteam of business students? Explain the differences between these two operations. The current operation focuses on the traditional business style

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