Niche Bakeries

We can find the maximum profit in a feasible region by drawing profit lines and expanding them until we reach the outer most corner of the graph. An important thing to remember is that the maximum profit of an item will always be in the corners of the feasible region. Once we create a profit equation, we continue to move the profit line up until it has reached the farthest region to the right. That is where your maximum profit is located on the graph. To find the exact point you can use systems of equations on the two equations of the two intersecting lines (which is talked about in Homework 23 and 26). Now with this point we can plug the point into the profit equation and find the total profit.

Increase the frequency of purchases by your customers. No matter how poor your current product or service, you must have some customers or clients. One key strategic dimension that you should be thinking about is how to augment and reposition your product in order to sell more to this group.

One can calculate the change in sales volume necessary for the price change to be profitable by using the following Basic Breakeven

One of specialty’s managers felt that the profit potential was so great that the order quantity should have a 70% chance of meeting demand and only a 30% chance of any stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?

Niche Markets: Reach people in a space where they’re already comfortable and spending their time. By choosing the right platforms and groups, you can invest your time in developing relationships with exactly the right markets, such as Facebook groups who all like American cuisine or something similar.

Explain how a profit maximizing firm determines its optimal level of output, using marginal revenue and marginal cost as criteria:

The RemyCake bakery created a cohesive team and an established clientele and became a staple within the community. Their exemplary customer service and the charismatic presence of their founders created a unique work and customer environment. However, with the recent retirement of the RemyCake bakery founder, a number of issues have arisen. Our Task Force identified the origin of their organizational issues. The following summary addresses and provides solutions for the RemyCake Bakery’s issues of ineffective leadership style, lack of organizational hierarchy, under-developed employee training program, and poor communication at all levels.

If we open a bakery, should we sell specialty items, like wedding cakes, or sell a variety of baked goods?

2.) Increase promotional and advertising efforts at the store level to enhance consumer awareness and demand to foster re-purchases by the retail stores.

The purpose of this memo is to offer a recommendation in the restructuring of Interstate Bakeries. This advice has been initiated at the request of company CEO James Elesser so that he can better ascertain which option, filing for bankruptcy or seeking further mergers and acquisitions, would be the best direction to take to counteract flailing profit margins. This is an independent recommendation made from researching the company’s financial history as well as the company’s product portfolio and market segments.

It is important to note the other factors that bring in revenue as well. Each month sales are growing for SugarFine. Based off of these we can assume that the hours that the store is open is flexible and accommodating to many customers. SugarFine Café has a large menu of sweets allowing each customer to pick an item. The Sugarfine owner will also be the store manager, this is incentive for great customer service and in crease in sales because she is directly effected by the profit of the business. Word of mouth is also a big factor. The more pleased customers the business has is the more people who can share with friends, co workers, family etc. It is allow for constant growth in customers. SugarFine has also added A comedian as well as Flavored

While it is useful to know the quantity of sales at which a product will cease to generate losses, it may be even more useful to know the quantity necessary to generate a desired level of profit, say D.

Now, to find the price of the sale in real for Novo and the revenue for Baker we have the equation:

The only way sure way to increase our sales is to increase our client base. We currently provide coffee to

♦ Shift in focus from a wholesale bakery to a specialty retail bakery to promote and increase sales at the company's own retail outlets. The company emphasized the "HOT DOUGHNUTS NOW" feature as a response to customer feedback as well as a form of local advertising.