Briddy Bakery Cases

798 Words4 Pages
Feng MO PL 810 Operations Management 10/09/2015 1. Explain the challenge Elizabeth faced in meeting her capacity needs. What should she have considered before moving into the larger facility? Elizabeth started the business of Biddy Bakery as a hobby with several friends. 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. Because the growth of the company is slow and stable, I don’t think that she should choose a much too large building to move in. She didn’t consider the long-term expenses of the building and whether the revenue they made can afford the cost. Therefore, she should ask the professions for advice and consider all the factors that will influence their development. 2. What is wrong with the proposal made by the team of business students? Why? The original target of the bakery is to provide a variety of baked goods to general people and local restaurants. However, the business students came up with a different suggestion. They only look at the profits and asked them to focus on producing the McDoogle pies in a large scale. Then they sell them to the local grocery store. This strategy violates the original thought of Elizabeth and her friends that they would like to concentrate on traditional baked and delicious goods, so it’s wrong. It may lead to the failure of the company. 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 the team of

More about Briddy Bakery Cases

Open Document