Biddy's Bakery

Explain the challenges Elizabeth faced in meeting her capacity needs. What should she have considered before moving into the larger facility?

When Elizabeth first started her business Biddy’s Bakery back in 1984 as a hobby with the small facility mixed in with commercial and residential area she had a hard time with sales as they were slow and there were times where the business took a loss on things for a few years. I feel because it took a few years for the business to grow and not operate at a loss she needed to see if that’s what was really good for the business at that time. Since it was decided so suddenly to move the business into a larger facility she didn’t analyze whether the bakery needed a larger facility. With not being able to analyze what her business needed she overestimated the capacity of the growth and revenue the business could take for the larger facility. This is because Elizabeth didn’t take in consideration for the future expenses and whether the bakery would be able to afford the extra cost to move.

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

The business students did not see the vision Elizabeth had from the get go. She started this business with recipes that have been passed down and they focus on the selling a variety of baked goods with old-fashioned style and taste. The goods produced included a variety of pies and cakes and were sold only to the general public and local restaurants. When the business students came up with their plan in the bakery should primarily focus on production of the McDoogle pie and produce a large amount to sell to local grocery stores twice a week. With their proposal it changed the initial mission to concentrate on the tasty treats and the operations management including some strategy formulation should have been conducted to focus on Elizabeth’s vision while coming up with a plan.

What type of operation does Biddy’s Bakery currently have in place? What type of operation...