Premium Essay

Baker Adhresives

In:

Submitted By chossi
Words 2066
Pages 9
BACKER ADHESIVES CASE STUDY | Foreign Exchange Risk Management |

Date | 3, Sep, 2014 | | | | Paper | Managing Global Business | Lecturer | Dr. Romie Littrell | | | | Student | Siyoung Jo / Zongjie Liu / Kathy Liu |

Introduction

Brief Company Situation

Baker Adhesives is a small company which made specialty adhesives in USA.
Market was dominated by a handful of big competitors with international access and slim margins. Baker specialized in accommodating specialty markets with consistent sales and relatively high margins. However, US Manufacturers were relocating overseas and achieved “Economy of Scale”. Therefore Baker Adhesives would be under intense pressure of finding markets abroad.
Baker had no long debt but line of credit of USD 180,000 and had an excellent relationship with the local bank from the beginning.
The production facilities are old but were readily adaptable and had been well maintained. Baker also possessed a good chemist and a flexible production system, even though his father who was a brilliant chemist and the founder of this company had recently retired.

* 2. Problem finding
In Feb. 2006, Baker’s first international foray was dealing with Brazilian toy manufacturer Novo of 1,210 gallons. Novo was considering a second order 50% larger than original one. Baker was excited about the fact that they can expand their business to abroad as well as they can generate big margins from their sales with Novo.
However receipt of payment from the insured in a foreign currency sale last illustrates the potential currency risk as the exchange-rate had changed since the time Baker and Novo had agreed on a per-gallon price. As a result profits generated from the first order was not as big as Baker anticipated and given further anticipated changes in exchange rates the new order would even gone worse than

Similar Documents

Premium Essay

Example Discussion Board Response

...My family is in the process of re-opening a small business to the north of Atlanta, Georgia call The Cake Shoppe (bakery). We are in the middle of a complete re-model, and this section has been very enlightening for me as I assist them. I found that one of the most important concepts for The Cake Shoppe, especially during this remodel, is technological forces (pg 67), which is defined as “inventions or innovations from applied science or engineering research” (Kern, Hartley, & Rudelius, 2012, pg 67). The previous owners did not use social media or advertise at all, so the new branding of our new products and lines, social media networking and electronic commerce, which is “any activity that uses some form of electronic communiciation in the inventory, exchange, advertisement, distribution, and payment of goods” (Kern, Hartley, & Rudelius, 2012), will be extremely important. We are in the process of re-vamping our logos to make them more appealing for the website, creating social media accounts for the bakery, and even producing online advertising via social networking, online giveaways, and e-mail coupons. Utilizing online savings websites like Groupon and Living Social to promote our business has boosted sales tremendously. Another very important concept is competitive forces (pg 68). Competition is “alternative firms that could provide a product to satisfy a specific market’s needs” (Kern, Hartley, & Rudelius, 2012, pg 68). I believe that attracting customers is...

Words: 591 - Pages: 3

Free Essay

Mgmt

...SWATI JOSHI MG 800 STRATEGIC MANAGEMENT BUSINESS PLAN DATE: 12/11/13 Business Plan: Fitness Bakery Business Plan: Fitness Bakery Executive Summary Introduction Fitness Bakery is a start-up bakery located in the heart of Manhattan. Our bakery is targeting active people living, working or visiting New York. Our bakery will provide the highest quality of ingredients and customer service for the more active branch of our society. We aim to be a completely different bakery by targeting the athletes. Our recipes will be mainly composed of wholesome ingredients, proteins, carbohydrates and fruits. By creating a new niche in the bakery industry, we plan to increase our sales by almost $150,000 (see sales forecast) by the third year of business. We will strive for perfection in both products and service and aim to be a major leader in the bakery industry. Mission Provide the highest quality of ingredients and customer service for the more active branch of our society. We aim to be a completely different bakery by targeting the athletes. Our recipes will be mainly composed of wholesome ingredients, proteins, carbohydrates and fruits. Goals: * Obtain funding of $15,000 via the Small Business Administration (SBA) loan program. * Achieve sales of $155,736 in the first year. * Boost second year sales by 50% in the second year. * Raise sales by 30% in the third year. * After fully repaying all our debts, we will open a second store in Brooklyn. ...

Words: 2516 - Pages: 11

Premium Essay

Dieter Case

...DIETER’S DELECTABLES Ltd. For many years, Mr. Dieter Bachembesser served as pastry chef at several of Toronto’s finest hotels, earning a reputation as one of the most knowledgeable people in the field of fine baking. In 1993, he used this knowledge to start Dieter’s Delicacies, a small firm that that sold fine baked goods to several of the area’s finest caterers. These products were made according to Dieter’s own specifications by Browne’s Bakery, a reputable producer of baked goods. While Dieter’s Delicacies was only a small part-time venture, it was financially successful, and Dieter’s reputation spread. In 1999, Dieter decided to quit working for hotels and to start his own business, Dieter’s Delectables Ltd., with himself as president and general manager. This new company operated in a similar manner to Dieter’s Delicacies, in that it did not produce goods, but rather operated in the distribution and wholesale business. Dieter’s purchased its entire product line from Browne’s Bakery, with whom Dieter had established a very satisfactory working relationship, and distributed and resold these to a variety of retail outlets under the company’s own private label brand of Dieter’s Delicacies. In its first year of operation, Dieter’s Delectables’ sales were $150,000. As its reputation for quality and customer service spread, sales grew rapidly, in large part due to Dieter’s knowledge and his personal selling efforts, as well as effective merchandising techniques. In 2002...

Words: 1203 - Pages: 5

Premium Essay

My Best Freind

...Since I have nothing to relate to this book, the experience I had while reading this book was incredible. While reading the book, I gained knowledge that can be used for a lifetime. The novel made me stop and think about my attitude and the impact it has on others. Jay Asher is a fabulous writer that explains reality in a convincing way. He uses such precise detail that I often connect with the situations included. I finished this novel in 4 days, meaning that it was almost impossible to set it down, alongside all of the things I have. The setting, plot, and characters were phenomenal. Although this book was breathtaking, I was disappointed to see that Hannah Bakers parents were not involved. I was left questioned at whether her parents were able to bear the grief and sadness. The marvelous novel of Thirteen Reasons Why is written by Jay Asher. They say dead girls don’t talk, but that’s where they’re wrong. They talk, but most people are too scared to listen. Hannah’s dead. Two weeks after Hannah Baker’s death, Clay Jensen hears her voice one last time-on a “Baker’s dozen” of cassette tapes she made. Seven double side tapes with thirteen stories of thirteen people-thirteen people who killed her. Clay was mailed Hannah’s obscure suicide note because he's one of the reasons that she died. That she killed herself, one of the reasons she gave up. On the tapes she explained that her death started with a rumor and the reputation the rumor gave her, highlighting the connections...

Words: 356 - Pages: 2

Free Essay

Micro

...1.What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? 1. Panera Bread's strategy involves creating fresh baked artisan breads made with special attention to quality and detail along with its many other products with an inviting dining experience. The closest generic competitive strategy approach Panera Bread is taking is the broad differentiation strategy which seeks to differentiate the company’s product or service from rivals in ways that will appeal to a broad spectrum of buyers. This can supported by Panera management’s blueprint for attracting and retaining customers as stated in the case explains “Concept Essence that underpinned Panera’s strategy and embraced several themes that, taken together, acted to differentiate Panera from its competitors by offering an appealing selection of artisan breads, bagels, and pastry products that were handcrafted and baked daily at each café location. Serving high-quality food at prices that represented a good value. Developing a menu with sufficiently diverse offerings to enable Panera to draw customers from breakfast through the dinner hours each day. Designing bakery cafés that were esthetically pleasing and inviting. Offering patrons such a sufficiently satisfying dining experience that they were induced to return again and again.” From this...

Words: 256 - Pages: 2

Free Essay

Marketing Plan

...St. Honoré Bakery Marketing Plan I - Business Mission Statement: Our commitment to excellence in the craft and artistry of baking enables us to deliver high quality products that look superb, delight the customer and make celebration a moment to cherish. Our goal is to generate satisfaction so that at least 60% of our customer base is repeat business and to provide quality product at reasonable prices with exemplary services. Our business offer best quality assortment of great-tasting bread and pastry and related beverages products. We also want to become the favorite bakery shop in the town in which we operates. This will be accomplished by serving a variety of delicious and generously portioned our products at moderate prices. Our customer will be served by friendly & knowledgeable people that are dedicated to provide excellent-customer service. II- Situation Analysis Industry Analysis - baking industry Baking has grown over the last century in the Philippines, from a relatively small industry to a large, popular industry. Initially, the island featured mainly independent bakeries that serviced cities and towns and provided employment to the local people. Nowadays, chain bakeries have increased the number of bakeries in the Philippines and have also lowered the prices of bakery products. Due to the increased demand for bakery products from the population in the Philippines, the baking industry has grown, leading to it providing greater employment opportunities...

Words: 1674 - Pages: 7

Free Essay

Baking

...Foreign literature: The Baking Industry Research Trust (BIRT) is a sub-committee of the New Zealand Association of Bakers (NZAB), delegated the responsibility of administering the Trust Account. The Trust Account was set up to meet the requirements of the Wheat Industry Research Levies Act 1989 and to identify and make recommendations to the NZAB Executive. The NZAB Executive has legal responsibility for administering the Trust, and other levy payers on research projects. The BIRT committee is made up of representatives from the various levy paying sectors. These include plant bakers, small bakeries represented by the Baking Industry Association of New Zealand (BIANZ) (Baking Society) and biscuit manufacturers, as well as the Chair of the New Zealand Flour Milling Industry Research Trust. The two sectors frequently combine on research projects. Copies of completed research reports are available to all levy payers and BIRT would encourage all industry members to take advantage of research conducted on their behalf. Since the formation of the Trust in 1989, a key aspect of the Trust’s work has been to ensure that the research conducted is appropriate for the Industry sector the Trust represents. Consequently in addition to having representatives from all sectors, the trust has also conducted a number of strategy workshops in which industry personnel have outlined the research framework for the Trust to follow. The framework developed has provided the Trust with some clear...

Words: 321 - Pages: 2

Premium Essay

Case Study

...time of the day. The goal here is to make bakery product more available to consumer. “In France, with 340 visits per day opening, bakeries are among the busiest retail proximity businesses” (www.devenir-boulanger.com). Trend 2: What is " good for me " is in my bakery: Here, we are concerned about consumer’s health and well -being, today's consumers are looking for freshness, nutritional quality, food safety and simplicity. The industry is focusing only delivering edible product but they also expect it to participate actively in good consumer’s food habit. For instance, if you’re diabetic you can still order a birthday cake, because they can bake one with no sugar. Trend 3 : Design, perfect for collections and sublime taste agreements: The bakers, confectioners or chocolatiers in fact the industry professionals dare the amazing shapes, sustainable or ephemeral collections! It’s about turning food into: Art. The industry professionals concentrate all their effort on making their product more and more appealing for consumers. For example nowadays bakery don’t only make...

Words: 1003 - Pages: 5

Free Essay

Amy's Bread Case Study

...Amy’s Bread Case Study Elements 1.) The primary case participants are: Amy Scherber, owner of Amy’s Bread Toy Kim Dupree – manager of Amy’s Bread who is very involved in day to day operations and decision making. 2.) The organization is Amy’s bread. The industry is baked goods. 3.) The problems facing this organization in order of importance are: the existing workload is too great for space making product expansion impossible. They are at a threat of having customers turn away if they cannot provide the service. The location offers poor access to distribution and is a poor location for retail traffic should the organization try to move more toward sector. The employees face physically demanding challenges from the bread making techniques. Due to these techniques more employees are needed resulting in high overheads. Employees have also been facing allergies and health problems as a result of a long time of exposure to the product. 4.) The most critical problem is that the existing workload has reached its maximum capacity for the space they have, and product expansion is impossible for the current location. This is the most significant problem because without adequate space the company will not be able to meet current customer’s needs nor will be able to meet the needs of potential new customers. 5.) The initial cause of the problem was that banks would not loan money to this new business without a proven track record so Amy had to get what she...

Words: 1532 - Pages: 7

Premium Essay

Introduction

...1. Introduction Summary of what the report is all about. The demand for food items industry is mounting by a significant amount. Eating practices, habits and trends are continuously changing with different constructs of living standards. Increasing fashion towards ready-made snacks, events, feasts and dine out is giving a real boost up to this industry. The topic under consideration is Gourmet Sweets and Bakers. The main idea of this report is to highlight current strategic plan of the bakery. Later part of this discussion aims at flaws and recommendations for amendments in strategies. Gourmet is a French word meaning ‘refined and manifest affection for good food’ Gourmet Bakers and Sweets” is the largest food retail chain of Lahore. It is one of the renowned bakeries and confectioner shops. Foundations of bakery are in Lahore. Lahore is the second largest city of Pakistan famous for traditional foods and enthusiasm for eating. Mr.Muhammad Nawaz Chathha laid the foundation of the business with a single outlet in Ichra in 1987. Initially the venture didn’t get a positive response and shut down. He started over again in 1992 in Muslim Town. He is the managing director of company and maintaining it with glorious colors. Presently,2 beverages production plants and 100 stores are operational in Lahore.10 stores and 1 beverages production plant is functioning in Faisalabad. Vision: “We are a bakery company with one goal in mind to meet the needs of our customers we focus...

Words: 397 - Pages: 2

Free Essay

3 Fellers Bakery

...3 Fellers is a bakery located in Goochland, Virginia and specialized in gluten-free baking goods. The business was founded by Susan Feller in 2007. Susan was a guidance counselor, who was passionate about baking. However she was diagnosed with Celiac disease, which forced her to eat gluten-free. But as she didn’t want to give up her passion, she developed flour mixes and recipes for gluten-free baked goods. Started a hobby, her goods triggered such acceptance and demand in her private network that she decided to sell them to the broad public. Without any prior business experience, she bought and transformed a 2.499qm2 house into a commercial bakery with her own money as she doesn’t like to borrow money. By July 2009 her business turned out to be more successful than she could have imagined and she managed seven part-time employees. Customers loved her products. By that time she was operating at 70% capacity. At this point she manages new-product development, sales, and accounting. She also oversaw production, managed inventory, and ordered supplies. Susan kept accounting records by hand and paid bills the week she received them even though her grocery clients paid her between 30 days and 45 days after delivery. She self-financed her business; she did not advertise; and she did not buy anything she could not pay for with cash. She had no computerized inventory or accounting system, no employee manuals, and no automated processes. Susan uses competitive pricing for her goods instead...

Words: 709 - Pages: 3

Premium Essay

Bakery

...As heat travels trough, it transform batters and dough’s into baked goods with a firm and dry crust and softer centre”. Baking can be combined with grilling to produce a hybrid barbeque variant by using both methods simultaneously one before the other, cooking twice. Baking is related to barbequing because the concept of the masonry oven is similar to that smoke fit. Baking has been traditionally done at home by women for domestic consumption, is the backbone of modern y man in bakeries and restaurants for local consumption and when production was industrialized, by machines in large factories. The art and skills of baking remains a fundamental one and important for nutrition, as baked goods, especially breads, are a profession called a baker. All types of food can be baked but some requires special care and protection from direct heat. Various techniques have been developed to provide this protection. As well as bread, baking is used to prepare cakes, pastries, pies, tarts, quiches, cookies, scones cracker and pretzels. This popular items are known collectively as “baked goods“ and are sold at a bakery. The needs and importance and reasons why we choose this kind of business are described as follows. 1. Improvement in standard of living -business such as baking helps people in general...

Words: 3341 - Pages: 14

Premium Essay

Ba499

...Mingming.zhang Ba499 Bonnie Adam 2rd Dec, 2014 I chose to research John's Mountain Home Bakery located in Lacey, Washington. John's Bakery is a family run business that started thirty years ago. They make a wide variety of donuts, including: maple bars, apple fritters, old fashioned donuts, cinnamon twists, and filled donuts. They also have a wide variety of cookies, muffins, and beverages, as well as some new additions, such as: sandwiches and gluten free baked goods. Through this project, I immersed myself into their business to learn the internal, external strategies and their leadership. I explored how the determined the layout of the facility for maximum efficiency, how they determined their service and product, how they work with their suppliers, their strategy for forecasting demand, the leadership and structure of their business by interviewing their manager, John’s daughter, Mary. As a small business in lacey, they do not have too much competition. As a result, they put emphasis on the internal strategies in order to provide better service. The baked goods at John's Bakery are either homemade or made from a mix they ordered through their supplier, BakeMark. They have had the same recipes and items for the past thirty years. They do not branch out and create new products often. However, when they design a new recipe, they used quality function deployment (QFD), taking requests and recommendations from their loyal customers. Next, they pick one or two...

Words: 1711 - Pages: 7

Free Essay

Dieter

...Small time baker, as well as business man Dieter Bachembesser was a successful baker for fine hotels amongst the Toronto area. He later went on to create Dieters Delicacies, small bakery with everything produced through Browne’s bakery to his standard, although this was a part time job for dieter. In nineteen-ninety-nine, Dieter decided to start his own business calling it Dieters Delectables Ltd. Naming himself president and gm. Extremely profitable the business’ were, he decided to make a proposal for expansion to Mr. Smith (owner of Browne’s bakery), but Smith is adamant on investing, so he looked in other communities he planned to expand into for financial aids. Dieter knows that there is tremendous wealth to be made by opening up his own plant. Gaining a potential 10.1% of the market by 2010, Dieter knows by building his own plant he can succeed. Right now Dieter is currently purchasing his baked goods from Browne’s bakery, he sees more potential for his business if he sets out on his own and builds his own plant. This business is extremely attractive, as shown by his history as a baker from inception of his part time Dieters Delicacies, all the way up to Dieters Delicatbles Ltd. SWOT analysis for this company: Strengths: * potential 10.1% of market within next 5 years * cuts out the middle man Brownes, maximize profits * Expands into new communities, building new relationships * Releasing new products in the years to come. Weaknesses * Ruining...

Words: 843 - Pages: 4

Premium Essay

Scott Baker Interview Essay

...A day in the life of Scott Baker is like no other. Baker, is an orthopedic surgeon that practices in Los Angeles at Keck Medical Center, which is the most active hospital in the area. Scott enjoys his occupation as much as he loves to work out and play golf. He also appreciates time with family and is married with son. Scott Baker is extremely caring and a person that his coworkers can trust and rely on. Scott’s day starts with a five o’clock wake up call with an exhausted look on his drowsy face. After he finally gets up from bed, he does his daily routine of washing his tuckered face, brushing his sparkling teeth, and getting dressed. His uniform consists of bright blue nursing scrubs and rubbery like shoes that are comfortable so Scott...

Words: 999 - Pages: 4