Amys Bread Case Study

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Case Study Questions 1) The main players are Amy Scherber, who is the founder and the owner of Amy’s Bread bakery, and Toy Kim Dupree, who is her trustworthy manager. 2) Amy’s Bread is a business that sells specialty breads and pastries wholesale and retail. 3) The issues Amy is facing is her existing workload is too great for the space she provides. Many customers will turn away if Amy cannot provide the service to meet their needs. One problem Amy has is some customers are slow paying, leaving Amy’s Bread scrambling for money to pay overdue accounts. Also, Amy’s payroll expenses are extremely high which lead in place of fifty percent sales and higher labor cost. 4) The primary problem is that Amy shop is too small to expand. This is most substantial problem because without the adequate space the company will not be able to meet existing customer’s needs nor the needs to potential new customers. 5) This problem emerged because banks would not loan money to the business because they said a bakery is considered a restaurant and starting up a new restaurant is a risk factor. Amy also does not have the proven track record to be approved for a loan. This to be said, she had to get what she could afford at the time. Finding a space in New York was extremely expensive and challenging. Amy ended up with what she can manage to pay for which was a very small 650 square foot store front in Manhattan. As Amy began to expand on her sales and her popularity grew, it was hard to expand her staff because her work space was only getting smaller. It was impossible to add more equipment or people as this became a threat to customers. 6) The characteristics of the industry that the company is in is highly competitive. The industry is changing over time by the way bread is made. Low cost breads are being made by machines instead by hand. As bread is being made by machines this

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