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Biddy's Bakery

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Running Head: Biddy’s Bakery 1

Biddy’s Bakery
Name
Professor's Name
Class
Date

Biddy’s Bakery 2

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

Initially, the business operated at a loss, but with time the business was able to attract new and loyal customers. This growth in itself was a challenge because Elizabeth over-estimated the growth capacity of her business. This in turn cost her heavily since she ended paying for unused space in the new facility. Elizabeth could have avoided this additional operating cost by analyzing the growth trends and potential of her business before relocating to a new facility. It is through such business growth potentials analysis that one is able to make strategic management decisions (Stokes & Wilson, 2010). She could have also considered inviting business experts who could have advised her correctly after doing the study on the Biddy’s Bakery for sometimes.

What is wrong with the proposal made by the team of
Buisness students? Why?
The Biddy’s Bakery mission was to produce different kinds of baked goods (pies, cakes) using the traditional method and selling them to general public and local restaurants, but the team of business students proposed that the business should deal with the production of McDoogle pies and selling them twice to a local grocery store chain. This proposal is different from the mission of Elizabeth’s business hence changing the business completely. Therefore the proposal of the students is wrong since it implied changing the original mission of the business.

What type of

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