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3 Fellers Bakery Case Solution
This case study focuses on Susan Feller, who operated in the bakery retail industry. She sells gluten-free desserts and cakes to her target audience. Currently, she is associated with 26 grocery retail stores and 10 whole food stores that sell her products directly to customers. Susan Feller has her own website where customers can place their orders. She has been successful as a new entrepreneur as her sales have increased significantly over the last few years. However, Susan Feller does not use any technological advancements in her business operations. She manages her finances and operations. She has no computer system to keep a record of her employees and inventories. Recently, she has seen opportunities in the bakery market to grow her business. She has been considering expanding her operations by selling her products to more retail stores or entering a new market segment. With that being said, she has been restricted to it because of the several issues that are highlighted in the case study.
Following questions are answered in this case study solution
You are Susan Feller. Should you grow your business? Why?
What are the key questions you must answer to decide question 1?
What are Susan’s growth options? What are the pros and cons of each?
You are Susan Feller. How would you grow your business and why? Would you use technology? How?
Growth can be good and growth can be bad. What does that mean with respect to this case?
Prepare an argument for why Susan should not grow the business.
Case Analysis for 3 Fellers Bakery
1. You are Susan Feller. Should you grow your business? Why?
Growth is always important for the survival of any business in the long term. This is because growth drives business profits and performance, which allows the entrepreneur to take advantage of all the opportunities arising in the market. Being Susan Feller, who started her bakery business from her home and expanded it through the retail grocery stores, should continue to place its focus on further growth of the business. Considering the case study, the market size of people suffering from gluten intolerance has been 5 to 7 percent. Moreover, the existing businesses do not produce products that are completely gluten-free. This market situation can prove to be beneficial for Susan Feller because the market gap certainly exists that can be filled by her.
In addition to this, it can be analysed from the case that Susan Feller has entered into two product categories, i.e., frozen products and fresh products. This product expansion can allow the business to attract more customers because Feller will be in a situation to respond to the demand of the market, leading to an increase in the market share. Similarly, a growing business can promote more differentiation in the products, which can help Susan Feller to stave off the competition. If we talk about the opportunities for Susan feller, it can be clearly seen that 3 of the products of the bakery were approved for sale in Mid -the Atlantic region. The sales of these products have seen a precedent growth, and thus, expanding the market into other regions can prove to be beneficial for the business. Therefore, it is recommended to grow the business to target new regions and grab the market share in the initial stages because of a lack of competition.
2. What are the key questions you must answer to decide on question 1?
The growth of the business always brings a certain set of challenges that can definitely be overcome by proper planning. It is important for Susan feller to focus on several factors before making a decision on a growth strategy so that the growth of the business is profitable in the long run. The following are the key questions that exist:
The strategy of the business
Susan feller needs to develop a proper strategy so that the business moves in a proper direction. Susan must answer the following questions to determine the growth of her bakery business:
Do we need to sell our products through websites and retailers only, or do we need to involve wholesalers too?
What are the costs that will be involved in growing the business?
Is there any plan to create barriers to entry for new entrants in the gluten-free product industry?
Locations of the Bakery
The success of the business is largely dependent on the right place, and therefore, Susan feller should consider the following factors into consideration to grow the baker:
Do we need to expand our business within our region or grow it internationally?
Does the bakery need additional space for the production of products?
What are the costs of the premises that will be rented or leased for the business?
Studying the Market
The growth of the bakery will be a long-term commitment for Susan feller. This is because all the decisions regarding the company's finances and operations will have a direct impact on the current course of the bakery. Therefore, it is important to grow and expand the business in such a way that the existing customer base of Susan feller is not compromised.
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