Laurentian Bakeries (Abridged)

437 Words2 Pages
Laurentian Bakeries was established in 1984 manufactured a variety of frozen food includes pizzas, cakes and pies, also had its headquarter in Montreal. Although cakes had over 40% of revenue, but the total profits are equally distributed among three bake goods. Laurentian had strong competitive position in all three markets, and it is the low cost producer in the pizza market. They’re target customers are mainly large grocery chains and some institutional food services. In the Canadian pizza market, Laurentian has 21%of the market share just right behind McCain. Laurentian’s management philosophies played a huge part in their success, which included a commitment to continuous improvement and consideration for the human resource and environmental impact of its business decisions. Laurentian also had a great project review process which included two plans and four constrains. Strategic plan is to identify and remove of “lost opportunity” and inefficiencies, and operating plan is to identify of continuous improvement initiatives. And the four project constraints are be consistent with business strategies; support continuous improvement; consider the human resource and environmental impact; provide a sufficient return on investment. This all bring us to the Winnipeg Plant’s expansion options. It require 6 months to complete the expansion with 60% increase in capacity which cost $1.3M + $2M(spiral freezer) + $1.3M(high speed processing line) + $0.6M(additional warehouse space)= $5.2M total and different equipment and buildings with different useful life and depreciations. The market value of the Winnipeg’s land was valued $250,000 and no additional land need. Plus the fixed salaries for admin were $223,000 and additional sales staff time $40,000 to secure the US contract. Two days saved from the average inventory age Plant-wide cost reduced by .19/unit and only 50%

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