Installation of ABC System at Super Bakery Inc

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The ABCs of Doughnut Making: Super Bakery, Inc. was founded in 1990 by Franco Harris, former Pittsburgh Steelers' running back. The company is a supplier of doughnuts enriched with minerals, vitamin, and protein as well other baked commodities to the primary school systems and institutional food market throughout the nation. Since it's a virtual corporation, the core strategic functions of the business are carried out within the company. On the other hand, the other activities of Super Bakery, Inc. are outsourced to a network of external organizations. The business in turn organizes the work flow of and draws together the external companies in this process. This helps the company to add maximum value while making minimal investments in working capital, fixed assets, and permanent staff. The outsourcing to a network of other companies has enabled Super Bakery to increase its sales at average annual rate of 20 percent. Strategies Used By the Management of Super Bakery, Inc.: Based on the case, the management of Super Bakery, Inc. achieved success and profitability of the firm through two major ways. First, these executives only ensured that the only the core strategic functions of the organizations were conducted internally i.e. within the company. Secondly, other business functions like manufacturing, shipping, warehousing, and selling were outsourced to a network of external companies. The reason for the use of these two strategies was to minimize the expenditure rate
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