The manager and owner is at the point of considering expansion but like many small businesses does not use a comprehensive tool to determine appropriate pricing and other related marketing decisions.
Amy glanced at the clock and moaned. She had a big decision to make. Amy muttered to herself, "There are already so many days when I feel stretched past the breaking point.
There are so many demands. Ensuring consistent quality, scheduling and training Source: This case study was reprinted by permission from the Case Research Journal. Copyright by Paula S. Staff, ordering supplies, developing new recipes, contacting potential customers, collecting from slow-paying clients Amy wondered, "If I decide to expand, can I do it successfully?
Can I find another trustworthy manager, like Toy Kim Dupree, to help me manage the staff and maintain bread quality?
Can I find expansion space in Manhattan? Should I close our current location and expand to a much larger space, thus eliminating the need to manage two locations? Should I look for a location for my wholesale production, or a space that would provide both retail and wholesale opportunities?
Right now though, Amy's dough starters were waiting, as were her employees. She had to get up and face another busy day at her bakery. Amy's Bread, founded inserved about 50 wholesale customers, including some of the finest Amys bread case study, hotels, and gourmet food shops in Manhattan.
Amy's Bread also had a waiting list of more than 30 wholesale customers from other quality restaurants, hotels, and shops. Amy thought, "I really want to meet their needs and accept their businessbut any further production expansion in my existing space is impossible.
I know I can't produce one more loaf without hurting bread quality, which is absolutely unthinkable! We are already working three shifts, and there is no more room for additional equipment. Dough production ranges from 1, to 3, lbs.
Surviving in these close quarters is so difficult. Not only do we produce all of the wholesale and retail bread in this one location, but we also store ingredients and have a small office. But, Amy thought, "Am I really ready to tackle a major expansion? On the one hand, I have worked so hard to make my dreams a reality, I can't imagine stopping now.
But, can I handle an expansion and larger ongoing operations? As a child, Amy remembered coming home from school to the smell of her mother's homemade breads wafting from the kitchen. After high school, Amy earned a degree in economics and psychology.
She then moved to New York in to try her luck in the Big Apple. Amy soon found that an office job was not for her, and that she longed to pursue a more creative career. She talked endlessly to her managers and coworkers about her dream of opening her own business. It was then that Amy began to solicit support and promises of financial backing if she were ever to start her own business.
After 3 years, Amy left her white-collar marketing position to pursue her dream. She decided to attend the New York Restaurant School for culinary training. After graduating from their program, Amy landed a job as a chef for one of New York's most highly acclaimed French restaurants. After 2 years of very challenging work and longer hours than her marketing job, Amy escaped to Europe.
Amy said, "It was there I discovered my true passion: Amy worked at French bakeries in three different towns, spending a month at each. Amy spent the next 2 years as a pastry chef and bread baker for another top New York eatery. As Amy worked, she simultaneously developed recipes and business plans.
Amy dreamed that someday soon she would be working for herself. First, it was a highly competitive industry with low wholesale profit margins.In 12 years, Scherber's eponymous company, Amy's Bread, has grown from a tiny storefront in a rough Manhattan neighborhood to a multimillion-dollar business with three retail outlets and a wholesale business that supplies the city's best restaurants.
Case Study Questions 1. Who are the main players (name and position)? The main Player in this is Amy Scherber and she is the manager and owner. Another main character is Toy Kim Dupree and he is Amy’s assistant manager. A nationally recognized bakery that specializes in handmade, traditional breads as well as sandwiches and sweets, Amy’s Bread has a 30,sq.-ft.
food production facility in Long Island City and three retail stores in New York City.
Vrio analysis for Amys Bread case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable.
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Amy’s Bread was founded by Amy Scherber in and served about 50 wholesale customers in the Manhattan area. The bakery serves only high quality, handmade /5(1).