...Laurentian Bakeries Capital Allocation Policy Recommendation Capital Allocation Policy purpose Strategic plan Reinforce the management philosophies by achieving certain objective that all projects be consistent with business strategies, support continuous improvement, consider the human resource and environmental impact, and provide a sufficient return on investment. company background and case summary identify and quantify inefficient or lost opportunities and establish targets for their elimination Capital Allocation Policy Operating Plan identify major continuous improvement initiatives and budget for the associated benefits Capital Allocation Policy Authorization for Expenditure (AFE) present the project's linkage to the business strategies. include specific details of economic and engineering, involvement and empowerment, human resource, environment. Cost of Capital (WACC) Net Present Value Questions? Thank you! Laurentian Bakeries Inc established in 1984 manufactured a variety of frozen baked food products at plants in Winnipeg (Pizzas), Toronto (Cakes) and Montreal (Pies) In late May, 1995, Danielle Knowles, vice president of operations for Laurentian Bakeries Inc prepared a capital expenditure proposal to increase capacity in the company's frozen pizza plant in Winnipeg, Manitoba, in order to expand in the US market three year plan of capital requirements The first year of this Strategic Plan becomes the annual Operating Plan. identify major continuous improvement ...
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...Laurentian Bakeries Case Study Cases in Financial Management Case Synopsis Founded in 1984 Laurentian Bakeries Inc. operates in the industry of manufacturing a vast variety of frozen baked products within their three operating plants in Montreal, Winnipeg and Toronto. The operating plants produce items such as frozen pizza in Winnipeg, MB, pies in Montreal, QC and Cakes in Toronto, ON- with each representing 30%, 30% and 40% of the total revenue stream respectively. The buyers for this company include large institutional clients such domino’s pizza, etc. which have a significantly higher level of power whereas the seller of the products consists of several food producers which have a relatively low level of power. With the cost of setting up a plant of this scale being high, substitute products will also remain high in the market causing the overall profit margin to be low. With the company’s ongoing effort for continuous improvement Danielle Knowles (VP of operations) proposed to expand one of the operating plants in Winnipeg-which was based on the opportunity if the company expanded into the U.S. market. Statement The statement of the problem is how Danielle Knowles will prepare a capital project expenditure proposal to expand the company’s frozen pizza plant in Winnipeg; which is consistent and in line with the company’s capital allocation policy. The proposal should also satisfy the company’s continuous effort for improvement, identification of lost...
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...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. ...
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...Sundown Bakery When Carol Teinchek and Bruce Marshall first started Sundown Bakery, the business was fairly simple. Carol ran the shop up front, while Bruce ran the bakery and ordered supplies. When the business began to grow, Carol hired two part-time clerks to help out in the shop. Marina had moved to the country 2 years ago from El Salvador, and Kim was a newly arrived Korean who was working his way through college. Bruce hired Maurice, a French Canadian, as an assistant. The ovens were soon running 24 hours a day, supervised by Maurice, who was now master baker, and two assistants on each of three shifts. Marina and Kim supervised the shop, since Carol was usually too busy managing general sales distribution to spend much time with customers. Bruce still spent 3 or 4 hours a day in the bakery whenever he could get out of his office, but he spent most of that time coordinating production and solving problems with Maurice. Within the next year, Sundown expanded from its original location, adding two new shops as well as two kiosks in local malls. Carol and Bruce hired a new operations manager, Hans Mikelson, who had formerly been regional manager of a national chain of coffee shops. Mikelson had plenty of new ideas about how to operate an expanding business: He had a Web site created, added an extensive range of drinks and meal items to the menu, and instituted two dress codes—one for all counter help and another for kitchen employees. He also...
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...Their Strategy Now focusing on "bakery food-to-go" 215 stores will have been refitted by the end of the year No increase in the number of shops and not expanding overseas Bringing to a halt their collaboration with Iceland for frozen products Longer opening hours to appeal to commuters Online loyalty scheme They are focusing on their current capabilities rather than expanding to new locations Weakness Seasonal weather Lack on online presence Threats • Competition from other bakers/supermarkets • Tough economic climate • Substitute products • Change in consumer tastes • Government regulations/policies Opportunities • Creating more of an online image • International expansion/globalisation • Creativity and innovation • Mergers and take-overs Strengths Brand Name Customer Loyalty Market Share Leadership •Unique Products •Efficient logistic solutions Social • Health conscious Technological The Need for Updated Technology Legal • Health and safety law • Pensions? Environmental • The need to focus on CSR • Check suppliers are all just as ethically responsible as Greggs Political • Healthy eating policies • “Pasty tax” Economic • Less disposable income • Economic growth Porter's 5 Forces Threat of substitute products - High 1 Other Outlets E.g. supermarkets and bakeries Threat of entry of new competitors - High 1 New bakeries 2 New supermarkets Competitive rivalry within the industry - High 1 Operates in multiple industries 2 However market leader in the UK for baking ...
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...Assignment 1: Company Introduction, Market Segmentation, and Product Positioning Strayer University MKT 500 Marketing Management October 27, 2013 Flour and Fleur, LLC. is a local bakery located in Raleigh, North Carolina. It was formed in 2013 as a Limited Liability Corporation and currently operates one location in the heart of downtown Raleigh. The owner and operator of Flour and Fleur is Andy Vu. After years in the event and wedding industry he decided to expand and take on his passion for baking. He works closely in the bakery and can be found whipping up new flavors of macarons or decorating cupcakes. His passion is to create great baked goods with the highest quality possible. That is why the company’s mission statement is as follows: “Our mission is to provide sweets, treats, and baked goods that are comprised of local quality ingredients to our customers with a quality, taste, and uniqueness that cannot be found elsewhere.” Our menu consists of cupcakes, muffins, macarons, croissants, doughnuts, a variety of breads, cookies, brownies, and many other baked goods that change every day. We also take requests if there is not an item that you do not see on our menu. We post our menu for the next day every night and try our best to update the menu throughout the day based on availability. Our mission is to make sure that you get the baked goods you want. We want to provide whatever community we operate in a place to get delicious baked goods and treats....
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...business to the proper market can help ensure the business stays on track. Future Outlook and Industry Trends for the New Venture After assessing the future outlook growth potential for bakery businesses it has shown that it is steadily rising by 1% each year. With over half of Americans loving desserts more and more of these types of businesses are being produced. Since London is such a high tourist area, the locals as well as tourists will be able to partake in the desserts from around the world. These types of businesses are becoming more popular in America and attract people from all walks of life. The new venture will allow this type of business to expand globally so that others are able to taste the delectable sweets that Good Eats International Bakery has to offer. Sweet Sentiments Bakery, a budding idea for a classic bakery, is in the making for a local soon-to-be small business owner. Known for creating sweet and moist desserts, Ms. Lesley has spent years trying to find the perfect little bakery. Previously Ms. Lesley has created her baking goods within her own home and now plans to share her classics to others for a profit. Her baking skills are proven among those she has chosen to share her simple creations. Good Eats International Bakery will provide a variety of baked goods designed to fulfill the individual’s needs depending on their taste buds and cultural experience that wants to be achieved. Éclairs, pies ice creams, sorbet, cakes...
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...Executive Summary Bakery on Wheels is a local business that offers a variety of patisseries and baked sweets. Bakery on Wheels is different from the other bakeries because it offers delivery service all over Amman at different times for children and adults to enjoy. It will serve people who need delivery right away or are busy preparing for a party or just feel like eating sweets at the moment. Bakery on wheels will not require renting or buying a venue instead it will only require renting a furnished kitchen. I will focus my design and identity in the purchased bus that will accommodate the display and delivery services. In the back of the bus, there will be a section equipped with a refrigerator to put the baked stuff and juice. In the rented furnished kitchen I need to hire a cook that will be responsible for cooking and preparing the orders, I also need to hire a certified driver. Products and Services The bakery provides freshly prepared bakery and pastry products at all times during business operations. Several moderate batches of products are prepared during the day to assure fresh baked goods are always available. - Cookies: different flavors, sizes and shapes - Cupcakes: different flavors, sizes, shapes and decorations - Crepes - Brownies - Cakes: different flavors, sizes, shapes and decorations - Flavored breads - Drinks: Fresh juices, water, coffee and tea - Birthday catering can be booked prior and delivered to birthday destinations...
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...demands relies heavily upon customer demand and knowing how to meet those demands. For example There are several needs that are part of capacity planning that Elizabeth should have considered before making the move to a larger facility. The first that should have been determining the market need of the community. Determining the amount of baked goods that would be sold would have helped her understand the space necessary for purchase. After determining the market need, research on the premises, location, prices, and other pertinent information should be obtained to ensure that the proper capacity is used for the physical premises of Biddy’s Bakery. 2. Determine what is wrong with the proposal made by the team of the business students and why. One major issue of the proposal was the fact that they planned for Biddy’s Bakery to primarily focus on the production of the McDoogle pie in large volumes. According to Balachandran, Balakrishnan, and Sivaramakrishnan, Organizations typically make long-term cost commitments to acquire certain resources...
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...Logistics Know your area and competition. Competition includes other bakeries, grocery stores, big-box retailers and some specialty shops. According to startabakery.com, strive for a location with a customer base of 1,000 to 2,000 families. If this is impossible, consider ways to attract desired customers, or to expand your territory. This may include a corporate delivery service, or catering breakfasts to area schools. Your decor should be attractive and relaxing. It should also clearly reflect your brand. Marketing Differentiate yourself from other bakeries. If your baked goods are all-natural, announce it. If all cookies are scooped by hand, tell people. If your products are kosher certified, vegan, vegetarian or simply made with love, include this in your marketing materials. Ensure your web presence clearly reflects your brand, products and values. Monitor review sites and address issues as needed. Engage potential customers via social media. When you know what you are good at, share it, be it a signature item or incredible customer service. Employees Employees can lead your bakery to success or failure. Ensure you hire quality staff and train them well. Rajeev Pershawaria, author of "Too Many Bosses, Too Few Leaders," believes employees are primarily motivated by their surroundings, their role and their development opportunities. By successfully motivating your staff and providing the tools they need to be successful, they will strive to provide quality products and...
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...being fixed. If they have to keep food in that refrigerator they should try to not open the refrigerator door as much in order to keep the coldness inside. When transferring and saving the food she should prioritize the food in order of what she needs to use first and what she needs to use that day. If the food is measured above the 40 degree safety then unfortunately it should be discarded. Food in unsafe temperatures can create food born illnesses and will get the students sick. 3. Concerning the ice shortage she should first check for other sources of ice that may be on campus. If she can’t find any ice on campus then she should send a staff member to the local convenience store to purchase ice. 4. Jane should first call other bakeries and see if they can deliver the desserts. If not then she should call the president and apologize for the undelivered desserts. Let the president know about the mix up that was the bakery’s fault. Ask the president what his second choice would be or suggest some alternative...
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...When Carol Teinchek and Bruce Marshall first started Sundown Bakery, the business was fairly simple. Carol ran the shop up front, while Bruce ran the bakery and ordered supplies. When the business began to grow, Carol hired two part-time clerks to help out in the shop. Marina had moved to the country 2 years ago from El Salvador, and Kim was a newly arrived Korean who was working his way through college. Bruce hired Maurice, a French Canadian, as an assistant. The ovens were soon running 24 hours a day, supervised by Maurice, who was now master baker, and two assistants on each of three shifts. Marina and Kim supervised the shop, since Carol was usually too busy managing general sales distribution to spend much time with customers. Bruce still spent 3 or 4 hours a day in the bakery whenever he could get out of his office, but he spent most of that time coordinating production and solving problems with Maurice. Within the next year, Sundown expanded from its original location, adding two new shops as well as two kiosks in local malls. Carol and Bruce hired a new operations manager, Hans Mikelson, who had formerly been regional manager of a national chain of coffee shops. Mikelson had plenty of new ideas about how to operate an expanding business: He had a Web site created, added an extensive range of drinks and meal items to the menu, and instituted two dress codes—one for all counter help and another for kitchen employees...
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...Our philosophy of work life is to enjoy the way we spend our days. Many of us have changed professions because we love baking, and have made our passion our career. We also value a respectful work environment. It is important to us that we treat our customers, our business associates, and our employees in a professional manner, with kindness and caring. Our Mission Statement is: To create a bakery and café that nourishes the bodies, minds, and spirits of the communities we serve- our neighborhood, our retail and wholesale customers, and our employees by: Making carefully handcrafted foods that taste as good as they look. We are proud of what we do, and our pride shows in the beautiful bread and sweets we make each day. We source our quality ingredients the same way we buy groceries for our families – using only natural ingredients, with no artificial additives. Our goal is to delight our customers with a wide range of products – some are healthful and some are indulgent. All of them are treats! Respecting the craft of traditional baking. We are proud to have been part of a movement away from American packaged breads to “real” hand-crafted breads made with slow fermentation and traditional methods. We’ve always been actively involved in the Bread Bakers Guild of America, an organization that raises the knowledge and skill level of American craft bakers. There is a distinct difference between the real thing, and baked goods that are “artisan style,” but not really...
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...D’s Bakery Company Case Study A. Systems Documentation 1. Product/Service Design D’s bakery is a small establishment that sells few variations of breads. D’s bakery offers breads which are mostly known to the Ilonggo like the teren-teren, pan de coco, famous hot pandesal, and more. According to one of the sales ladies, they make and sell more or less 10 kinds of bread every day. The breads from D’s bakery are being sold at a cheap price. The price of their bread starts at Php 2. The breads are made with ingredients that can be easily found in the market. Although the owner won’t give the detailed list of ingredients, they say that everything included in the bread are just like any ordinary bread like wheat flour, yeast, and something they put on filled breads. 2. Capacity Plan Capacity needs include equipment, space, and employee skills. For the production of bread, since they are just a small bakery, they only have 2 bakers working with two (2) large ovens for the production of breads. It is located at their baking house at LaPaz, Iloilo City. At their bakeshop, they have assigned two salesladies to manage and sell the breads. They also have two person in-charge in checking the breads before they are put to the crates and delivered to the bakery. D’s bakery has the capacity to produce 75-100 pieces for each type of bread they have everyday. But with their pandesal, they produce 200-300 pieces a day. The number breads being produced is based on the...
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...Fantasy Is Selling Cupcakes.” The New York Times 25 Nov. 2009, Small Business sec.: 1-5. Print. 2) Key Terms: * Cupcakes * Recipes * Business Plan * Baking * Profit * Kitchen * Store * Company * Rent * Salary 3) Summary: Elizabeth Olson’s “The Latest Entrepreneurial Fantasy Is Selling Cupcakes,” is a brief account of the different kinds of cupcake businesses that are opening up and the startup. This article questions whether cupcake bakeries and the respected owners make enough profit. Different types of bakery businesses are mentioned such as: the chain, the web-only store, the cupcakes and more store, and the sole bakery. Alongside with these types of bakeries, there are interviews of people and how they decided to enter the business, business plans, income, and the profitability. The hours and money invested to start these bakeries are mentioned and further explored proving how difficult it is. 4) Reflection: Reading this gave me a whole new sight to the cupcake business. Just like any business, there are a lot of things to be done and thought of. These people mentioned in the article come from different socio-economic backgrounds and take the plunge into following their dreams. Not only is that daring and courageous, it is also seen as foolish. The cupcake enterprises are long hard work from working 80 hours a week to having no vacations at all. Cupcakes must...
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