Biddy's Bakery Case Study

In: Business and Management

Submitted By lakeshawilson
Words 1054
Pages 5
Capacity Needs

Biddy’s Bakery was started as a hobby for Elizabeth and her friends and not with the intent to be a big business. Elizabeth’s business had a slow start and operated at a loss for the first few years. When Elizabeth moved her business into a larger building, she did not consider decreases in future profits and customers. When business started out to be slow and then increased slowly, Elizabeth should have taken that as a sign not to be too aggressive in her approach to obtain more space. It would have been a different situation if business would have increased consistently from the time it became known. The expansion to the storage area in the initial location of Biddy’s was a smart decision. It allowed there to be extra space while not taking too much of a risk. “Capacity planning is the process of projecting future capacity needs based on current company use and industry trends. For example, the gradual increase of a production workforce in response to an increase in product demand is capacity planning. A company invests significant resources into capacity planning, including the purchase of new equipment and the leasing of new facilities. Understanding the advantages of capacity planning can help justify the costs” (Anderson). The following are elements that Elizabeth should have considered when evaluating capacity needs before moving into the larger facility:

Monitor Costs

If Elizabeth would have taken into account facilities, personnel, supplies, and production schedules. Periods of growth and recession can be monitored when the capacity level is carefully planned. The company can budget for future changes during this monitoring period. Capacity planning can also be utilized to assist in implementing delivery schedules for supplies and shipping schedules for completed products.

Production Cycles

Biddy’s Bakery…...

Similar Documents

Biddy's Bakery

...Running Head: Biddy’s Bakery 1 Biddy’s Bakery Name Professor's Name Class Date Biddy’s Bakery 2 Explain the challenge Elizabeth faced in meeting her capacity needs. What should she have Considered before moving into the larger facility? Initially, the business operated at a loss, but with time the business was able to attract new and loyal customers. This growth in itself was a challenge because Elizabeth over-estimated the growth capacity of her business. This in turn cost her heavily since she ended paying for unused space in the new facility. Elizabeth could have avoided this additional operating cost by analyzing the growth trends and potential of her business before relocating to a new facility. It is through such business growth potentials analysis that one is able to make strategic management decisions (Stokes & Wilson, 2010). She could have also considered inviting business experts who could have advised her correctly after doing the study on the Biddy’s Bakery for sometimes. What is wrong with the proposal made by the team of Buisness students? Why? The Biddy’s Bakery mission was to produce different kinds of baked goods (pies, cakes) using the traditional method and selling them to general public and local restaurants, but...

Words: 946 - Pages: 4

Biddy's Bakery

...BIDDY’S BAKERY BY Vernell Murray Operations Management-BUS 515 Professor George H. Barbosa Strayer University April 16, 2012 Introduction This paper presents discussions of several concerns and issues regarding Biddy’s Bakery. This paper will explain the challenge Elizabeth faced in meeting her capacity needs and what she should have considered before moving into the larger facility. Determination will be given as to what was wrong with the proposal made by the team of business students and why. Explanation of how the business would be different if Elizabeth accepts the proposal made by the students. Lastly, recommendations will be given as to how Elizabeth should proceed. Explain The Challenge Elizabeth Faced In Meeting Her Capacity Needs. What She Should Have Considered Before Moving Into A Larger Facility. Elizabeth is faced with the challenge of her bakery business being in a constraint market. This is the condition that results when market demand is less than production capacity. She needs to find ways to deal with this constraint. She should have gained an understanding as well as conduct research of what caused the growth before considering the move in order to make sure that it was possible to continue growth in the same manner. Elizabeth based her decision on the expectation that the business would continue to grow. Before Elizabeth moved into a larger facility, she should have considered capacity planning. Capacity is defined as the maximum amount......

Words: 1445 - Pages: 6

Case Study

...ANAAB, WILLIAMS, BUS 421, 0360290, CASE STUDY ASSIGNMENT 1 1. What are the chief elements of the strategy that Whole Foods Market is pursuing? The chief elements of the strategy that whole Foods Market is pursuing are Fresh natural and organic foods and products with no preservatives or artificial ingredients. Promote healthier eating/lifestyle and increasing consumer knowledge/education of food safety, environment and how pesticides affect the land as well as the human body. 2. Is the strategy well matched to recent developments and conditions in the natural and organic foods segment of the food retailing industry? Yes the Whole Foods strategy has worked well for the company. They have good products and seem to have happy employees who also obtain shares in the company. They do not have much competition only on smaller scales or small areas in existing regular food markets. The company is still expanding even in this poor market and acquiring new stores and companies. 3. Do you think John Mackey has a good strategic vision for Whole Foods? Why or why not? What do you like or dislike about the company's motto "Whole Foods, Whole People, Whole Planet"? Do the motto and the principles underlying it (exhibit 1) really matter at this company or are they just nice words and cosmetic window dressing? Explain. Yes, looking at the company’s profits and growth I believe John Mackey has an excellent strategic vision for this company and employees. He has......

Words: 1492 - Pages: 6

Sundown Bakery Study Case 2

... 1. How do changes in the demographic makeup of Sundown Bakery reflect transformation of the larger workforce? Consider the following dimensions of culture as you describe the impact of culture on communication within the company: high and low context styles, individualism and collectivism, and power distance. Answer The changes in the demographic makeup of Sundown Bakery precisely reflect the transformation of the larger workforce. In addition, Carol and Bruce hired three employees to be in charge of running the Sundown Bakery. The three persons came from El Salvador and France respectively. So, with an expanding business, they hired new employees to work in this company. Recently, Sundown hired workers from seven different countries so they have different national backgrounds and cultures which reflect transformation of the larger workforce in the demographic makeup of the company. So we should concern the impact of different cultures on communication. Analysis Small | Large | Sundown | * National background. [Similar] * Culture. [Similar] * Language. [Similar] * Education. [Similar] * Age. [Similar] Homogeneous | * National background. [Different] * Culture. [Different] * Language. [Different] * Education. [Different] * Age. [Different]Heterogeneous | 2. How would you describe the early organizational culture of Sundown? How has the culture changed as the company grew? Answer a. The early organizational culture of Sundown has a sociable......

Words: 335 - Pages: 2

Sundown Bakery Study Case 2

... 1. How do changes in the demographic makeup of Sundown Bakery reflect transformation of the larger workforce? Consider the following dimensions of culture as you describe the impact of culture on communication within the company: high and low context styles, individualism and collectivism, and power distance. Answer The changes in the demographic makeup of Sundown Bakery precisely reflect the transformation of the larger workforce. In addition, Carol and Bruce hired three employees to be in charge of running the Sundown Bakery. The three persons came from El Salvador and France respectively. So, with an expanding business, they hired new employees to work in this company. Recently, Sundown hired workers from seven different countries so they have different national backgrounds and cultures which reflect transformation of the larger workforce in the demographic makeup of the company. So we should concern the impact of different cultures on communication. Analysis Small | Large | Sundown | * National background. [Similar] * Culture. [Similar] * Language. [Similar] * Education. [Similar] * Age. [Similar] Homogeneous | * National background. [Different] * Culture. [Different] * Language. [Different] * Education. [Different] * Age. [Different]Heterogeneous | 2. How would you describe the early organizational culture of Sundown? How has the culture changed as the company grew? Answer a. The early organizational culture of Sundown has a sociable......

Words: 335 - Pages: 2

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Biddy's Bakery

...right of appeal as it was a new scheme and full with uncertainty and employer might not be interested. Meanwhile, for litigation cases the individual can appeal if not satisfied with the held. 2. Value claiming & Value creating Mediation creates value as the process efficient and cost-effective. Meanwhile, litigation process takes more time and expensive. | | 3. Coercive & binding , Voluntary & consensual Litigation cases limits or holds someone to an agreement whereas mediation mechanism involves voluntary submission and reaches consensual settlement that will accommodate their needs. Mediation aims to facilitate the development of consensual solutions by the involved party. | | 4. Due process of law & procedural flexibility Litigation process has limited process and procedural based on act meanwhile the mediation procedural has common attributes such as flexible in terms of procedures. 5. Privity of involvement & Widely participatory Litigation process involved by authorized jury or judges meanwhile in mediation any third party that act in neutral can involve in determining the disputes between the parties and more participation from the parties. | | 6. Formality & Informality As mention in the above article, proposition that ADR needs due to delays in the disposal of Industrial or employment cases by the Industrial Court. Originally the Industrial Court based on a principle of informality and has now become a court......

Words: 2618 - Pages: 11

Sundown Bakery Case Study

...identified could have been minimized by different communication strategies. According to the case study, Sundown Bakery has been experiencing turmoil between its management and employees. The major catalysts of the situation involved newly hired operations manager Has Mickelson's decision to impose new rules on matters such as the compulsory use of uniforms and the introduction of an employee manual. The true nature of the problem can be attributed to Mickelson's inability to consider and acclimate to needs of Sundown's communication processes and the context to which they were previously communicating. Here we will analyze likely causes of the bakery's employee resentment over changes that have been implemented by management in respect to the communication process, context and noise. We will then derive different strategies that could have minimized the nature of the problem. Understanding the communication process is an important part of achieving effective communication and avoiding barriers that would prevent it to flow freely in the organization. It involves a sender, message, medium (channel), receiver and feedback. By analysing the case study, we have interpreted that the issue arose mainly due to incorrect ways of handling the medium aspect of the process. The medium aspect relates to the channels used to convey information from the sender to the receiver. In Sundown Bakery's case, this has been improperly handled by the operations manager who chose to......

Words: 2159 - Pages: 9

Laurentian Bakeries Case Study

...Laurentian Bakeries Capital Allocation Policy Recommendation Capital Allocation Policy purpose Strategic plan Reinforce the management philosophies by achieving certain objective that all projects be consistent with business strategies, support continuous improvement, consider the human resource and environmental impact, and provide a sufficient return on investment. company background and case summary identify and quantify inefficient or lost opportunities and establish targets for their elimination Capital Allocation Policy Operating Plan identify major continuous improvement initiatives and budget for the associated benefits Capital Allocation Policy Authorization for Expenditure (AFE) present the project's linkage to the business strategies. include specific details of economic and engineering, involvement and empowerment, human resource, environment. Cost of Capital (WACC) Net Present Value Questions? Thank you! Laurentian Bakeries Inc established in 1984 manufactured a variety of frozen baked food products at plants in Winnipeg (Pizzas), Toronto (Cakes) and Montreal (Pies) In late May, 1995, Danielle Knowles, vice president of operations for Laurentian Bakeries Inc prepared a capital expenditure proposal to increase capacity in the company's frozen pizza plant in Winnipeg, Manitoba, in order to expand in the US market three year plan of capital requirements The first year of this Strategic Plan becomes the annual Operating Plan. identify major continuous improvement ...

Words: 1221 - Pages: 5

Case Study

...and unstructured decision. As the four members have their own interest at the heart and gives out their own valued opinion it is of no use as no decision has been made as yet. 3. Which machine the company should buy and why? The company should buy UFA and the first important thing that the company needs right now is to stay in the market and chamex would take 3 months to be delivered, and during that time the company might lose its potential clients. Furthermore, its time for the company to move one step ahead. The available staff that operates the machinery can be trained to work with UFA and their expertise can be applied in retesting the samples manually. And finally, UFA is more efficient and productive then Chamex. 2nd Case Study Chapter no. 6 NORTHERN HOME STORES LIMITED Introduction: NHS is a family owned business, with the initial store at Edinburgh. As the Store became a huge success in Edinburgh, Caledonian Developments approach the NHS and offered them to open up their store in three different locations namely: Glasgow, Aberdeen, and Newcastle. The move went smooth and the business started fairly well. THE DECISION: Although the move was a great step ahead for NHS they have come across a serious problem the sales have started to fall which is concern the MacKanzie family. They hired the consultants who have come up with a solution after much research into the matter. According to the consultants NHS have to focus of the main four products,......

Words: 3928 - Pages: 16

Case Study

...Case 7. HIT AND MISS MANUFACTURING: A Star is Born The head of HR department, Atty. Mila Bravo was directed by the company president to act as leader of a committee whose task is to revise and update the current compensation scheme of the company. The President designated the following as members of the committee: 1. the accountant 2. the executive secretary 3. an employee in one of the operating units 4. an officer of the labor union 5. the internal auditor 6. a representative from the public During the first meeting, the seven members were all present. The president made a briefing regarding the purpose of the group, the circumstances that lead to the formation of the group, and his expectations about the group’s output. The group proceeded to determine the various factors relevant to the determination of the rates of the various jobs. Most of the members of the committee, however, cannot devote the time required to finish the job within the time frame indicated by the committee’s effectiveness. The first two meetings were held without much fuss. Everybody was given the opportunity to air his or her views about the various matters forwarded for discussion. For one reason or another, the accountant failed to appear in the succeeding meetings. He never attempted to explain his position to the committee leader or to any member, but his body language indicated that he was too busy doing more important concerns or the......

Words: 1791 - Pages: 8

Cost Case Study- Super Bakery

... Super Bakery, founded by Franco Harris in 1983, has developed into a virtual corporation in which only core strategic functions are actually performed in house. The remaining activities , such as distribution, selling and manufacturing, are outsourced to specific external companies. The implementation of this virtual strategy, and several other unique tactics, helped Super Bakery increase their sales and productivity in the years following. However, when implementing a virtual corporation, there are several risks involved which management was well aware of. The wide variety of costs involved with serving such a broad range of customers proved to be problematic. Super Bakery decided to implement an ABC costing system, whose main focus is capturing cost by customer order rather than by a specific product. Consumptions of costs are recorded directly when then occur, or through the use of cost drivers as needed. Super Bakery uses historical costs when actual costs or unavailable, and costs drivers when historical cost and direct costing are unattainable. Super Bakery uses specific responsibility centers for those functions they perform in house, and other arm’s length centers for outsourced activities. Through the use of the company’s relational database, Super Bakery is able to examine costs incurred by several different fields, and evaluate such costs based on profitability and performance of different parts of the business. B) The ABC system adopted by Super Bakery proved...

Words: 576 - Pages: 3

Biddy`S Bakery Case Study

...Assignment1: Biddy`s Bakery Case Study Odontuya Erdenebileg Bus 515 Professor, Dr. Travis Davidson July 18, 2012 Explain the challenge Elizabeth faced in meeting her capacity needs and what she should have considered before moving into the larger facility. However, initially sales were slow at the beginning, after a few years Biddy`s Bakery began to attract an attention of customers thus, first floor of “Biddy`s” home couldn`t provide all demand. Therefore, Elizabeth decided to move larger facility. After Biddy`s Bakery moved into larger facility which is more capacity than needed, Elizabeth noticed that her sales volume had not been met with what she expected and she was paying for a facility with unused space. In my opinion, she should have calculate carefully how larger facility needs for Biddy`s Bakery, how much costs the location, and whether she can make more sales than now she is doing. In other words she needed to consider Capacity Planning. Capacity planning is the process used to determine how much capacity is needed in order to manufacture greater product or begin production of a new product. (Burack, E.H & Cassell, F. H. 1967). If she had considered it before moving into larger facility, she might choose the different place which is more convenient for Biddy`s Bakery`s capacity and thus, they were not spend money for useless expense. Business might have been successful. Determine what`s wrong with the proposal made by the team of the......

Words: 560 - Pages: 3

Biddy's Bakery

...On September 8th 2011, President Obama gave a speech on what he calls the American Jobs Acts. It’s basically and act that consists of a combination of tax cuts and creation of jobs as well as helping the unemployed and Unemployment insurance. Taxes: * Helping small businesses by cutting taxes in half first five million dollars in wages and temporarily cutting payroll taxes all together on new employees. * Allowing all businesses to make immediate deductions on expenses for new plant and equipment * Working with the SEC to reduces burdens on small businesses and help them gin capital. * Tax credit for companies hiring veterans * Tax credit for businesses hiring long-term unemployed * Cutting payroll taxes in half Creating more jobs: * Preventing layoffs of union workers (teachers, cops, etc) * Renovating schools to both create jobs and improve learning. * Create more jobs by fixing and improving our roads, rails, and airports. And something called project rebuild which will create more construction jobs. * Expanding access to high speed wireless which will free up the nations spectrum (whatever that means). Unemployment: * Reform that includes extending unemployment benefits. * A work sharing plan that will allow employees to keep their jobs at less hours rather than being laid off * Wage insurance to help reemploy older workers and help people start their own businesses. * A discrimination act which......

Words: 307 - Pages: 2

Laurentian Bakeries Case Study

...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 the cost of setting up a plant of this scale being high, substitute products will also remain high in the market causing the overall profit margin to be low. With the company’s ongoing effort for continuous improvement Danielle Knowles (VP of operations) proposed to expand one of the operating plants in Winnipeg-which was based on the opportunity if the company expanded into the U.S. market. Statement The statement of the problem is how Danielle Knowles will prepare a capital project expenditure proposal to expand the company’s frozen pizza plant in Winnipeg; which is consistent and in line with the company’s capital allocation policy. The proposal should also satisfy the company’s continuous effort for improvement, identification of lost...

Words: 1525 - Pages: 7