ASSIGNMENT #1 BIDDY’S BAKERY CASE
This paper presents the analysis of the Biddy’s Bakery case (Reid & Sanders, 2010, Biddy’s Bakery, p. 95). It will explain the problem Elizabeth faced in meeting her capacity needs and what she should have considered before moving into the larger facility. The proposal made by the team of business students will be discussed as to what was wrong with and why. How the business will be different if Elizabeth accepts the proposal made by the students, also will be explained. Explain the Challenge Elizabeth Faced in Meeting her Capacity Needs. What should she have considered before Moving into a Larger Facility? The challenge that Elizabeth is faced with her business is her knowledge on the market. She should do environmental scanning, such as knowing the trend in the industry, have a better understanding of the market by doing research and what caused the increase in the business before planning to grow the business. Environmental scanning is a research process, in which businesses collect all types of relevant information that helps these businesses in making decisions regarding surviving, expanding or entering new markets. In simple words, it can be described as keeping a close eye on external or internal happenings and analyzing this information to know how it can be detrimental or beneficial for the business (King, 2010). Before Elizabeth moved into a larger facility, she should have considered capacity planning as well. Capacity planning is the process used to determine how much capacity is needed in order to manufacture greater product or begin production of a new product. A number of factors can affect the capacity number of workers, ability of workers, number of machines, waste, scrap, defects, errors, productivity, suppliers, government regulations, and preventive maintenance. Capacity planning is relevant in both the long-term and the short term (capacity planning, n.d.). Discrepancies in capacity and demand...
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