Strategies Of Super Bakery

855 Words4 Pages
Strategies of Super Bakery, Inc. ACC/561 Strategies of Super Bakery, Inc. Super Bakery, Inc. was first created in 1990 by former Pittsburgh Steelers’ running back Franco Harris and it has become a nationwide supplier of mineral, vitamin, and protein-enriched doughnuts, and other baked goods to the institutional food market, primarily school systems (Kimmel, 2009). This innovative company provides nutritionally disguised food to cater to the needs of its consumers. The method by which this company operates differs from traditional companies because it only performs the core, strategic functions of the business inside the company. What strategies did the management of Super Bakery, Inc. use? This company maximizes its profits by only performing the core business activities and using other companies to fill the additional needs. This method of operation works for Super Bakery, Inc. because it reduces the expenses of the company. Activities such as selling, manufacturing, warehousing, and shipping are outsourced to a network of external companies (Kimmel, 2009). These strategies are successful for Super Bakery, Inc. as the company has been constantly growing since its inception by 20 % annually (Kimmel, 2009). Given that Super Bakery operates in many locations, the cost to do business at these different locations varies greatly. The management of Super Bakery, Inc. implemented Activity Bases Costing to deal with this issue so that their pricing could be improved. Why did Super Bakery’s management think it was necessary to install an ABC system? Do you agree with their reasoning? If you disagree, identify your recommended costing system, including your rationale, to management. Super Bakery, Inc. implemented Activity-Based Costing as a way to maximize its profits. This method of costing allocates its overhead to multiple activity cost
Open Document