Biddy's Bakery Case

1235 WordsMay 12, 20125 Pages
ASSIGNMENT #1 BIDDY’S BAKERY CASE Introduction This paper presents the analysis of the Biddy’s Bakery case (Reid & Sanders, 2010, Biddy’s Bakery, p. 95). It will explain the problem Elizabeth faced in meeting her capacity needs and what she should have considered before moving into the larger facility. The proposal made by the team of business students will be discussed as to what was wrong with and why. How the business will be different if Elizabeth accepts the proposal made by the students, also will be explained. Explain the Challenge Elizabeth Faced in Meeting her Capacity Needs. What should she have considered before Moving into a Larger Facility? The challenge that Elizabeth is faced with her business is her knowledge on the…show more content…
Without a well-defined mission, it may pursue business opportunities about which it has no real knowledge or that are in conflict with its current pursuits, or it may miss opportunities altogether (Raid & Senders, 2010). In today’s environment of intense global competition, business must focus its time and resources on developing core competencies and then creatively applying them to an ever-changing market, to remain competitive (Businessseek.biz, 2012). How the Business would be Different if Elizabeth Accepts the Proposal Made by the Business Students If Elizabeth accepts the proposal made by the business students, the business would be operated differently. More equipment should be purchased to produce large volumes of product. Biddy’s Bakery would have to rely on automation and technology to improve efficiency and increase output rather than on labor skill. It will change the operations process from intermittent to repetitive. The volume of pies required would use up all the current excess capacities and take away most of the capacity from production of other pies. Furthermore, instead of them being able to keep all profits, they will have to share some of the profits with the local grocery store. The grocery store would be able to have input on how many products would be brought to and stored on the shelves at the store. This would control the profit that the

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