Amy's Loaf of bread

Strengths: Amy's entrepreneurial spirit; Toy Betty Dupree-excellent right hand manager; Already has regarding 50 wholesale customers, plus 30 on the waiting list; Company is finally turning a profit; Confident work environment (5 day operate week, better pay than competition, rewards package, 401(k) plan, personnel allowed to speak freely, low turnover); Selling business allows for higher income, and now signifies 25% of Amy's organization; Good specific niche market product mix-high quality loaf of bread products, micro-bakeries; Makes their self available to the press/public, causes word of mouth advertising and marketing; Can now secure bank funding due to Amy's proven background; Wholesale business (representing 73% of the business) is more secure than price tag business.

Possibilities: Much higher income in sophisticated breads (black olive, apple walnut rasin-$2. 40 from suppliers, $3. forty retail revenue with the high end breads versus $1. 71 wholesale, $2. 60 price tag without high end breads); Retail business (currently 25% of business) allows for higher income and payment is only in cash; Hiring another supervisor could allow Amy more hours to run the corporation; Buying 31st street position would allow pertaining to production center expansion plus the ability to appeal to customers at present on the holding out list; Renting the fifteenth street area could allow both price tag and development expansion.

Disadvantages: Bakery sector is highly competitive with low wholesale profit margins; NYC spots are very expensive; Higher labor costs because of hand-production methods (35% of CGS); Ingredient prices happen to be volatile; Ingredients are more expensive compared to the competition's; CGS is 65% of net sales; Competition can enjoy better economies of scale due to automated production and more affordable ingredients; 75% of the organization is through lower-profit wholesalers; Current production location is too small to meet growing require.

Threats: Going on a trends (i. e. Atkins diet) may affect customer demand for bread....


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