Prodman

Tarlac State University

College of Business and Accountancy

Master in Business Administration

Renato T. Mercado DBA

1. Answer 5 Cases:

CASE: BIDDY’S BAKERY

Biddy’s Bakery was founded by Elizabeth McDoogle in 1984. Nicknamed “Biddy,” Elizabeth started the home-style bakery in Cincinnati, Ohio, as an alternative to commercially available baked goods. The mission of Biddy’s Bakery was to produce a variety of baked goods with old-fashioned style and taste. The goods produced included a variety of pies and cakes and were sold to the general public and local restaurants. The operation was initially started as a hobby by Elizabeth and a group of her friends. Many of the recipes they used had been passed down for generations in their families. The small production and sales facility was housed in a mixed commercial and residential area on the first floor of “Biddy’s” home. Elizabeth (“Biddy”) and three of her friends worked in the facility from 6 a.m. to 2 p.m. making and selling the pies. The operation was arranged as a job shop with workstations set up to perform a variety of tasks as needed. Most of the customers placed advanced orders, and Biddy’s Bakery took pride in accepting special requests. The bakery’s specialty was the McDoogle pie, a rich chocolate confection in a cookie crust.

Initially sales were slow, and there were periods when the business operated at a loss. However, after a few years Biddy’s Bakery began to attract a loyal customer following. Sales continued to grow slowly but steadily. In 1994 a first floor storage area was expanded to accommodate the growing business. However, Biddy’s Bakery quickly outgrew its current capacity. In May of 2000 Elizabeth decided to purchase the adjacent building and move the entire operation into the much larger facility. The new facility had considerably more capacity than needed, but the expectation was that business would continue to grow. Unfortunately, by the end of 2000 Elizabeth found that her sales...