Business Level 3 Unit 2 P1

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Ms Jones is the owner of the company Cupcakes Galore, a bakery specialising in the creation of cupcakes for retail and special events. She has been in business for approximately six months and thought this would be a unique business idea. Ms Jones did not conduct much planning before opening her business as she believed it would be more effective to learn on the job. Ms Jones currently operates from a warehouse space which she is leasing in the back suburbs of the Gold Coast near a residential estate but has found business to be quite slow. She was looking for a central location close to other food production areas as this was likely to be more accessible for her clients but found the cost of renting in these areas too expensive. Ms Jones decided it was a better option…show more content…
Some of the bakery equipment is sitting in the back store room. As this is an expensive exercise to replace parts, Ms Jones and her staff have been operating one oven short for the past four weeks. This shortage of equipment has also led to the quality of the cupcakes being comprised. Upon delivery to the clients with their goods, there has been some angst about the quality of the item. Ms Jones has blamed this on her faulty equipment and consequentially, as clients are dissatisfied with the service offered by Cupcakes Galore, have withdrawn their future contracts. Initially, Ms Jones made the decision to purchase all of her stock (flour, sugar, food colouring etc) in bulk once every few months and store it onsite. Although this meant higher leasing costs, Ms Jones decided the convenience of having stock readily available was worth it. However, this has been costlier than anticipated and Ms Jones is often left with too much of one product, or not enough of another during the final stages of

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