Biddy's Bakery

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Biddy’s Bakery Biddy’s Bakery Explain the challenge Elizabeth faced in meeting her capacity needs. What should she have considered before moving into the larger facility? Elizabeth faced several challenges in meeting her capacity needs. When Elizabeth first opened her bakery sales were slow, often causing her to operate at a loss. After a few years she gained some loyal customers and expanded her business within her home. In May of 2000 she purchased and moved into a new building. The new building offered more space then she needed but could accommodate for her expected growth. Before purchasing a new building Elizabeth should have considered location, maximizing the use of the building and total profit. Location is very important, even though she was already operating in a nearby location, there may have been a better location with access to more customers. There was the potential loss of some current customers but it would have opened doors to a new market. “Location is an indispensable factor that shapes and determines the success or failure of entrepreneurial development and business activities. Thus, it determines the effectiveness of the entrepreneurial and business activities” (Lucky & Minai, 2011). Business location should also be a part of Biddy’s Bakery strategic strategy for success of the business. A good location will in fact affect the growth and increase in customer base. The bakery space was limited in Elizabeth’s home, however taking on the additional facility operating cost like water, lights, gas, mortgage, building maintenance, etc. could have been avoided by adding on additional hours of business. Elizabeth overestimated the businesses growth and paid for space she wasn’t able to use. The additional funds paid for the space could have been put toward other needs of the business. She also should have

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