4.) The primary problem for the company in this case is moving to a new location because the current location is too small. 5.) These problems have emerged because the current location right now is too small to meet the growing demand. The ingredient prices are high because she sells higher end breads that cost more, and the labor costs are high due to hand production techniques, and possible increase of debt would be due to whether or not she expanded and bought another location.
At first, the company experienced a period of deficit. However, as the sales of bakery growing steadily and start earning profits, the current capacity couldn’t meet the requirement of accommodating the growing business. So they started to think about expand the facility of the bakery. Before moving into a larger facility, she should have thought about whether the bakery needed the expansion. And she also overestimated the profits the bakery can made and the capacity they need.
Many new chain stores, restaurants, and coffee shops are lining up to pay the increased rent, but Smart can no longer afford to stay in business on Main Street. In an attempt to keep her business running and continue to provide services for her clients, she is now operating out of the basement of her home. 3. What is your purpose for writing? (What do you hope to accomplish?
They are losing out on profits by not having the capacity needed to serve their customers. It needs to decide on whether they should lease a new and larger building within Rockbrook Village, lease another building specifically for catering, or start franchising Savor. The problem with these options is finding the budget means to do so. The second issue Savor faces is their catering business. Anna, the new manger there is also responsible for the role of Catering Manager.
The JITD will be most successful with larger customers, so they should start out by getting the largest ones to sign up first. Statement of Issue The main problem with Barilla’s supply chain is their inability to accommodate the fluctuations in demand. There is seasonal demand for certain products, as well as promotions that may influence demand, but those are the only factors that Barilla has to make their decisions with. They receive an order from the DO and GD seven to eleven days before they need to be delivered. Because it’s so complicated to change production at the facilities, from one type of pasta to the other, it’s not always easy to meet the fluctuating demand.
Though few people are not happy with these changes due to their old thoughts, but, the number of working mothers is increasing drastically compared to previous years (Rampell). Women’s rise as breadwinner provides more financial strength and stability to the family. On the other hand, few people still believe that it is better for men to focus on breadwinning and women on homemaking. “Women are the primary breadwinners in nearly 40% of families with children under the age of 18, according to the recently released report from the Pew Research Center” (Claire). The women’s trend being a primary breadwinner is increasing because the larger number of women are earning higher degrees and entering the workforce (Claire).
A pair so passion about bakery business who straggled at the beginning but soon after become a successful company but not after so long the company had to expand it market according to the demand so they had to develop and go through different process that thy have not experience therefore problem start to happen and the solution dos not seem to be effective and not getting the company any good. Oppose to Ivanovics concerted effort to know and communicate with all of their employees, the new management team under McRae did not effectively communicated with Iggy’s employees. Also McRae failed to communicate with Ivanovics by not seeking their opinions while hiring key new management personnel. nikola took a big part of the business for awhile and Change a lot of thing it igor and ludmilla where in direct involved in the process. Behind that , nikola couldn’t managed it and both of them turned to their informal board of directors.
While other competitors, such as Target, operate in the same market trying to attract consumers looking for low prices and conveniently giving customers the access to a one stop shopping store. Though the largest company and one of the most successful, Walmart can make improvements. The key problem for Walmart has to do with the negative treatment of employees causing a high employee turnover. Walmart’s success has come from its well know low prices and extreme variety of products allowing customers to get all their shopping done in one place. The company continues to employ new IT systems to track sales and allow managers to compare their store’s success to others.
Case Analysis Form Participant Name | Muhammad Ateeb Ansari | Case Title | Iggy’s Bread of the World | Key Facts | * Bread making Company that was build on Dream and passion of Igor and Ludmilla * Healthy ethical culture towards its employee and customers was the golden rule behind Iggy’s quality * Deep connection of employees toward its manufactured goods, made Iggy’s bread exceptionally popular * Annual Gross sale upto $6 million * Upon expansion in capacity they needed someone to look after this business and look after day to day operations and decisions * McRae was hired as a strategic consultant and then given a full position as COO on recommendation of Ludmilla * Employees were not comfortable with the new management team * Founders, Nikola ad Menezes were not at ease with McRae either * McRae kept on taking decisions without consulting with Igor or Ludmilla * Mathew and Diane hired another Top manager and Ludmilla had it with McRae. * Matthew McRae presented his resignation letter and next day withdrew it | Key Players | 1. Cofounders – Igor and Ludmilla Luft (Mrs Igor) 2. COO - Matthew McRae 3. Igor Younger brother - Nikola bread enthusiast and General Manager 4.
Risks - lose control of business operations as focus on rapid growth - rapid gwoth puts heavy strain on cash management--needs a lot of debt The fact is, Boston Chicken was always more of a finance company than a restaurant operator. Many chains grow by way of individual franchisees who like the business concept and put up a substantial amount of their own money to open new stores. They pay the franchisor certain one-time development fees plus regular royalties on sales. However, it takes time to grow a chain using this strategy because it's often tough for potential franchisees to arrange financing, even with assistance from the franchisor. Since a business built on home-style chicken dinners doesn't offer any obvious moat to protect against competition, the Chicken hoped to create an artificial moat through simple ubiquity.