Laurentian Bakeries Case Study

1519 Words Sep 14th, 2012 7 Pages
Laurentian Bakeries Case Study

Cases in Financial Management

Case Synopsis
Founded in 1984 Laurentian Bakeries Inc. operates in the industry of manufacturing a vast variety of frozen baked products within their three operating plants in Montreal, Winnipeg and Toronto. The operating plants produce items such as frozen pizza in Winnipeg, MB, pies in Montreal, QC and Cakes in Toronto, ON- with each representing 30%, 30% and 40% of the total revenue stream respectively. The buyers for this company include large institutional clients such domino’s pizza, etc. which have a significantly higher level of power whereas the seller of the products consists of several food producers which have a relatively low level of power. With
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Nevertheless, with the acknowledgement of a capacity shortage and an opportunity to expand and grow in the U.S. market the company seems to be in good standing. Moving aside to a different area amongst the competition, all the products are similar which indicate there is heavy competition. The presence of numerous suppliers makes this industry highly competitive, as a result, there is high aggression amongst competitors. This is a leading factor that indicates this is not an attractive business to be in. SWOT ANALYSIS
Strengths
* Danielle Knowles has experience in the food industry for 13 years. This is a great benefit for the company, because she is able to use her knowledge and experience and apply it for Laurentian Bakeries in order to improve operations or even avoid errors. This in return can potentially save the company from incurring additional expenses. * Danielle has her Master’s in Business Administration which indicates that she is educated and has the credentials to maintain her position as the VP of operations. Also, Danielle is able to use that knowledge and apply it to everyday operations of the company. * Laurentian has above average consideration for human resource and environmental impacts. This benefits the company to the extent that it creates a public awareness which shows their commitment to the community which in return can potentially be used as a marketing

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