Bake Me a Cake Case Study

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Kwantlen Polytechnic University

School of Business

Rewritten case

Bake me a cake

Business Analysis and Decision Making

ENTR 3100

Prepared by

Simarpreet Sidhu

100359869

Submitted on:

06/11/2018

Definition of success and critical issue

In order to be successful BMAC must reach a net profit of $41324 by the end of 2012 along with supporting and maintaining work life balance while solving the following issues :

• BMAC endures poor pricing technique and the development of material costs would adversely influence its gross profit significantly.
• BMAC has been inefficient with their promotional strategy due to which they are experiencing low return.
• BMAC has also been impacted by an inefficient process to make full use of their operational capacity.

Situational analysis

Bourgon has been running her business for two years from her home in sarnia, Ontario. Bourgon had solely focused on custom cakes during her two years of operations. Her custom cakes excited her customers which proved to help her gain more customers due to help of word of mouth. Her business has been very busy entire summer weekends due to wedding cake orders. After two years of running her business she has now started to work full-time. Bourgon’s product as well as her business both are in growth stage and are expected to do well if the issues are dealt with care and resolved early. Company needs enough upper hands to contend with not just the current contenders , yet in addition the new contestants later on . In any case, BMAC's upper hands are not solid enough because of its poor advancement technique and evaluating methodology. In light of the rising cost of the wheat, BMAC's costs are not sufficiently high to acquire an adequate net wage. As far as advancement, the expensive commercials Bourgon has put resources into did not satisfy the promoting costs10. The issue with the operational limit is that the worker works for around 28 hours out of each week, which demonstrates that Bourgon more likely than not been doing the greater part of the work. In such a work serious business, Bourgon needs more representative hours to expand the limit and meet the expanding needs of her clients.

Decision Criteria 

• Make utilization of operational space available.
• BMAC needs to improve its promotional strategy.
• Hire a new employee to take care of operations
• Generate an operational income of $ 47098 by the end of 2012

Option Analysis #1 Renovating the old house

The alternative for BMAC is to remodel the owner's home into an expert looking kitchen. A greater physical store would enable BMAC to take more client requests and increment its income to $102,345 in 2012. Also, the home area gives the proprietor the accommodation to take care of her child at whatever point she needs to. This alternative would require a development cost of $26,000, in which $19,500 can be acquired from the bank, and the rest can be secured with Bourgon's own investment funds. In terms of advancement, she could put out cupcake deals in the area, and host square gatherings to spread out the great notoriety. The greatest hazard is that her home area still has extremely constrained client presentation. Regardless of whether she extends her ability, she probably won't have enough requests to make benefit.