2020 BA Case TB

Case Study: Biddy’s Baker (BB) p. 95

BA 2020

3-25-2023

1. Explain the challenge Elizabeth faced in meeting her capacity needs?

Elizabeth's original position on the first floor of her home was inadequate. Her company was expanding steadily, albeit slowly. Elizabeth acquired a larger facility on the premise that the business would continue to expand during the following year. Elizabeth had difficulties since she failed to plan her expansion. Without careful planning, she could not have anticipated paying for unoccupied space. The growth she experienced was insufficient to fill the empty spaces. Elizabeth failed to realize that her growth trajectory for the following year could not have been predicted without the certainty of consumer demand. Elizabeth additionally utilized estimation as opposed to studying actual sales as opposed to her guess of sales. Elizabeth should have evaluated the demand for her goods in the neighborhood before relocating to a larger facility. She need a business strategy that incorporated marketing, operations, and financial necessities. Elizabeth did not consider an effective marketing strategy to help her firm expand. A solid marketing strategy would have helped her comprehend how to accelerate the growth of her organization. In addition, doing research techniques such as consumer surveys, research on the location, pricing, and other pertinent information would have assisted her in determining the exact size of the space she needed to purchase as well as the capacity of the new location. Performing a study of her business and the client base in her region would have also been beneficial. If Elizabeth sincerely desires for her business to expand and capitalize on client demand, she must properly plan and assess the financial risk involved.

2. What is wrong with the proposal made by the team of business students? Why?

One concern with the team of business students' proposed action plan is their emphasis on altering the firm to specialize and supply McDoogle. What considerations should she have made before relocating to a larger facility? Elizabeth's original position on the first floor of her home was inadequate. Her company was expanding steadily, albeit slowly. Elizabeth acquired a larger facility on the premise that the business would continue to expand during the following year. Elizabeth had difficulties since she failed to plan her expansion. Without careful planning, she could not have anticipated paying for unoccupied space. The growth she experienced was insufficient to fill the empty spaces. Elizabeth failed to realize that her growth trajectory for the following year could not have been predicted without the certainty of consumer demand. Elizabeth additionally utilized estimation as opposed to studying actual sales as opposed to her guess of sales.

Elizabeth should have evaluated the demand for her goods in the neighborhood before relocating to a larger facility. She need a business strategy that incorporated marketing, operations, and financial necessities. Elizabeth did not consider an effective marketing strategy to help her firm expand. A solid marketing strategy would have helped her comprehend how to accelerate the growth of her organization. In addition, doing research techniques such as consumer surveys, research on the location, pricing, and other pertinent information would have assisted her in determining the exact size of the space she needed to purchase as well as the capacity of the new location. Conducting an investigation

3. What type of operation does Biddy’s Bakery currently have in place? What type of operation is needed to meet the proposal made by the team of business students? Explain the differences between these two operations.

The operation that is now in place at Biddy's Bakery is one that is only sporadic. The strategy of repeating activities is what the students studying business have proposed. Elizabeth has the impression that the company would be affected, but she is unable to explain how or why she has this impression. Businesses that engage in intermittent operations create a wide range of goods, each of which must satisfy distinct processing requirements, although at significantly lower numbers (An Integrated Approach. 4th edition, John Wiley & Sons, Inc. 2010. Chapter1; pg.66). Biddy's Bakery, like other operations that are intermittent, is more labor demanding than it is capital heavy. In this particular instance, skilled laborers, specifically bakers with some level of expertise, are necessary to carry out the work. Bakers are required to be mobile around the preparation area and capable of performing a wide range of tasks associated with baking. Biddy's simply needs equipment that is general purpose because the amount of goods they produce is proportional to the number of consumers they service. Because of this, they do not need to invest in the expensive automation technology. The team of business students has suggested employing a method of operation that is repeated. Producing one or a few standardized items at increasing volumes is what firms do when they engage in repetitive operations (An Integrated Approach. 4th edition, John Wiley & Sons, Inc. 2010. Chapter1; pg.66). Operations that are performed repeatedly are typically arranged in a line flow format, such as assembly lines. This configuration allows for the mass production of a single category of goods. These types of enterprises rely significantly more on capital than they do on human labor. Because these facilities frequently rely on automation to boost production, it is possible to employ workers with minimum skill requirements. The personnel no longer need to rely on their intuition because technology has eliminated the need. The demand for a product is determined not by the commands of individual customers but rather by projections of future demand. The amount of product volume produced and the degree to which the product is standardized are two factors that define the primary distinction between operations that are intermittent and those that are recurring. Elizabeth may not have understood how to explain what she was feeling, but she realized immediately that this shift in operation would lead her away from the corner stone of the business purpose she had set out to accomplish.

4. Elizabeth senses that the business would be different if she accepts the proposal but does not know how and why? Explain how it would be different.

First of all, as was already mentioned, this plan diverts her attention away from her primary business objective, which was to develop a viable alternative to existing items on the market. Second, she risks losing her successful business model by abandoning her dedicated clientele. She reduces the amount of time she would have spent on multiple goods in order to give more attention to just one. She may be unable to accept further payments or special requests at this time. For this plan to function, she will need enough money set aside to pay for any new machinery and/or employees she may require. Third, in an effort to maximize production volume, it's possible that quality will take a back seat to quantity.

5. What would you advise Elizabeth to do?

I would first recommend that Elizabeth develop a comprehensive business plan. Elizabeth should explicitly consider a plan that emphasizes increased sales rather than stagnant sales. Elizabeth had already relocated to the larger institution at this point. She can attempt boosting her selling price and filling the empty space in her store. She could potentially lose clients as a result. If Elizabeth is able to make a financial commitment, she may want to consider utilizing those funds to hire additional personnel to meet the proposal's requirements. This may assist her in increasing her output while, hopefully, remaining consistent with the mission statement. I believe the plan will fail regardless if the mission statement is not pursued and accomplished. Normally, I would have advised Elizabeth to do nothing and work with what she has, but she has already relocated, and every day that her underused spaces remain unoccupied, she is losing money. The grocery store proposal is an option; if she pursues it, she will get greater cash and new consumers, but at the risk of losing clients and receiving negative publicity. Perhaps she can modify the proposal's quantities and delivery timelines to make it more amenable to her company's circumstances. Working longer hours for the current workforce or on Saturdays. I feel that it contains a solution. Since the relocation has occurred, she must relocate. I would want to recommend potential modifications to the grocery store proposal. I would work additional hours and/or days. I would rally my troops and attempt to keep the mission in mind ("a commercially available alternative"), reminding them that we cannot replace quality for quality. I would continue to prepare a range of traditional-style and -tasting baked items. It has worked thus far for her. I would advise Elizabeth to make business-oriented decisions.