Amy's Bread Narrative

Case Study Analysis Narrative Format

Firm Overview and Introduction to the Case

Amy’s Bread Company, founded in 1992, is a bakery that produces high quality signature breads. Its location in Manhattan, NY is in the center of a highly competitive industry with low wholesale profit margins. Amy the owner, created this bread company which was always her dream, to open her own business. The company serves daily 50 wholesale customers, including some of the finest restaurants, hotels and gourmet food shops in Manhattan. The company slowly built up a city-wide reputation for its consistent products.

Although Amy’s Bread provides daily produce to a good number of wholesalers, there is still a waiting list of about 30 more. To accept their business, Amy would have to expand to a larger location. An expansion right now is very risky for this business and could lead to issues with managing staffing, finding a location that brings in profit, and also the decision of providing both wholesale and retail to customers. Amy’s Bread started off with a small workforce of dedicated employees and soon grew larger to meet the demands. Not to mention payroll expenses represents over 50% of sales due to handmade product necessities. Bread production ranges from 1800 to 3000 pounds a day, which is well over the required capacity of just 1300 square feet. This company has yet to also raise any prices since it opened for business.

Internal Perspectives

The primary issue holding Amy’s Bread Company from achieving success, is the ultimate decision of expanding. After already making an expansion within the current location, profit was just beginning to show. The current customer base is typically not large enough to cover all expenses but would possibly grow with expansion and a new location. This issue has emerged due to Amy sticking to ensuring a high quality hand shaped regimen of bread production. Trying to meet the demands and producing a consistent product each time...