...Costing Methods ACC/561 March 12, 2012 Monique Smalling Super Bakery Super Bakery is a virtual company that handles only core functions of the business while all other aspects are outsourced. Even though the bakery became a leader in the institutional baked goods market the company had reoccurring issues containing costs and ensuring the quality of their products. The management team at Super Bakery decided to implement and activity based costing plan to help maximize profits and ensure quality products to customers. However, Super Bakery had an additional challenge when implementing a cost system. Because the majority of functions are outsourced, the costing plan needed to help the company maintain control over those outsourced functions Strategies In order to make a costing system functional in a virtual company, Super Bakery needed to put into place several strategies that would cater to the specific virtual challenges. The first simple strategy that was put into place by Super Bakery was simply to question industry practices and to develop unique strategies and tactics (Davis & Darling, 1996). When management asked these questions they discovered that there was a market that traditionally received poor and underrated service; the school systems and institutional food market. The bakery developed healthy baked goods to meet the ever-increasing nutritional standards that government run facilities faced. This strategy allowed the company...
Words: 688 - Pages: 3
...A) Super Bakery, founded by Franco Harris in 1983, has developed into a virtual corporation in which only core strategic functions are actually performed in house. The remaining activities , such as distribution, selling and manufacturing, are outsourced to specific external companies. The implementation of this virtual strategy, and several other unique tactics, helped Super Bakery increase their sales and productivity in the years following. However, when implementing a virtual corporation, there are several risks involved which management was well aware of. The wide variety of costs involved with serving such a broad range of customers proved to be problematic. Super Bakery decided to implement an ABC costing system, whose main focus is capturing cost by customer order rather than by a specific product. Consumptions of costs are recorded directly when then occur, or through the use of cost drivers as needed. Super Bakery uses historical costs when actual costs or unavailable, and costs drivers when historical cost and direct costing are unattainable. Super Bakery uses specific responsibility centers for those functions they perform in house, and other arm’s length centers for outsourced activities. Through the use of the company’s relational database, Super Bakery is able to examine costs incurred by several different fields, and evaluate such costs based on profitability and performance of different parts of the business. B) The ABC system adopted by Super Bakery proved...
Words: 574 - Pages: 3
...COSTING METHODS Costing methods for Super Bakery University of Phoenix ACC/561 December 19, 2011 Timothy W. Williams, Ph.D. Costing methods for Super Bakery Super Bakery is a virtual corporation created in 1990 by Franco Harris, developing a network of supply for “donuts and other baked goods aimed for the institutional food market” (Kimmel, et al, 2009, pg 867). According to Kimmel, et al (2009), “only the cores, strategic functions of the business are performed inside the company. The remaining activities, selling, manufacturing, warehousing and shipping are outsourced to a network of external companies,” (p.865). Management Strategies The current management strategy was job order based upon the outsourcing of the jobs. While the company was realizing a 20% annual growth rate, management still found that the current system was allowing a wide variation in cost control. (Kimmel, et al, 2009, pg 865).When it was noticed that “orders with high margins were subsidizing orders with low margins” (Kimmel, et al, 2009, pg 867), in the current strategy, the need for a new strategy became apparent. The move to an activity based costing system (ABC) that will show the costs produced by each activity performed rather than the job appears to be the correct choice. Managements Installation of ABC Super Bakery Inc will benefit from the implementation of the ABC system because the costs are tracked by each account in conjunction with performance...
Words: 628 - Pages: 3
...A) Super Bakery, founded by Franco Harris in 1983, has developed into a virtual corporation in which only core strategic functions are actually performed in house. The remaining activities , such as distribution, selling and manufacturing, are outsourced to specific external companies. The implementation of this virtual strategy, and several other unique tactics, helped Super Bakery increase their sales and productivity in the years following. However, when implementing a virtual corporation, there are several risks involved which management was well aware of. The wide variety of costs involved with serving such a broad range of customers proved to be problematic. Super Bakery decided to implement an ABC costing system, whose main focus is capturing cost by customer order rather than by a specific product. Consumptions of costs are recorded directly when then occur, or through the use of cost drivers as needed. Super Bakery uses historical costs when actual costs or unavailable, and costs drivers when historical cost and direct costing are unattainable. Super Bakery uses specific responsibility centers for those functions they perform in house, and other arm’s length centers for outsourced activities. Through the use of the company’s relational database, Super Bakery is able to examine costs incurred by several different fields, and evaluate such costs based on profitability and performance of different parts of the business. B) The ABC system adopted by Super Bakery proved...
Words: 576 - Pages: 3
...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
...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...
Words: 553 - Pages: 3
...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 ...
Words: 260 - Pages: 2
...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....
Words: 1408 - Pages: 6
...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...
Words: 1350 - Pages: 6
...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...
Words: 548 - Pages: 3
...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...
Words: 1067 - Pages: 5
...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...
Words: 363 - Pages: 2
...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...
Words: 423 - Pages: 2
...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...
Words: 532 - Pages: 3
...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...
Words: 624 - Pages: 3
