Super Bakery Essay

696 Words3 Pages
Super Bakery Inc. Candice M. Johnson Acct 561 July 23, 2012 Chuck Royes Super Bakery Inc. Super Bakery Inc. (SBI) has developed a virtual corporation in which only the core, strategic functions of the business are performed inside the company and the remaining functions are outsourced (Kimmel, Weygandt, & Kieso, 2009). SBI’s major challenges are coordinating and controlling customer service quality and costs of the functional activities performed by external organizations (Davis & Darling, 1996). Following is a discussion of the strategies and tactics SBI used to develop the business as well as the cost collection method implemented to reduce challenges of operating as a virtual corporation. Strategies and Tactics Use of standard industry practices prevented SBI from penetrating the institutional food market. As a result, SBI tailored a unique set of strategies and tactics. First, SBI identified an underserved segment of the target market and pioneered a doughnut that met USDA guidelines and still tasted good (Davis & Darling, 1996). Second, SBI updated packing techniques to include the use of refrigeration and vacuum sealing methods. This permitted shipping nationwide, thus penetrating a previously fragmented market (Davis & Darling, 1996). Third, SBI developed ways to assist its customers including helping customers get lower prices by using government-supported commodities, cooperating with noncompeting suppliers, and helping distributors reduce inventory carrying costs and avoid stock outs by using just-in-time delivery (Davis & Darling, 1996). Fourth, and most important, SBI reduced capital investment and overhead expense by contracting out major functions of the business including selling, manufacturing, warehousing, and shipping (Kimmel, Weygandt, & Kieso, 2009). Implementing these four strategies allowed SBI sales
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