Running Head: Biddy's Bakery Case Study
Biddy's Bakery Case Study
The operation of Biddy's Bakery was started off by Elizabeth as a hobby initially. In the beginning, the business was operating at a loss however later it was able to attain new and loyal customers. For operation of a facility for a company to be successful, planning for capacity is very important. The term capacity is defined as the maximum output rate that a facility achieves.As there was no capacity planning, thus Elizabeth faced challenges. In the process of capacity planning, one is required to institute the output rate that a facility can achieve. Without any planning, there might not be sufficient output capability so as to meet the demands of the customer or there might be excessive capacity sitting futile. Elizabeth needs to come up with ways to deal with this constraint.
If Elizabeth had analyzed growth trends and potential of the business prior to moving into a much larger facility, she would have been able to avoid additional operation costs. According to Rorty (1934) one should always use growth potential analysis while making their strategic management decisions. Prior to moving into a larger facility, Elizabeth should have determined the market need of the community. In addition, she should have regulated the quantity of baked goods sold.
Biddy's Bakery opened up with a vision in mind that was to produce a variety of baked goods with old-fashioned style and