Bus 515 – Operation Management
BUS 515 – Operation Management
Explain the challenge Elizabeth faced in meeting her capacity needs and what she should have considered before moving into the larger facility. The challenge that Elizabeth faced was market penetration. She did not do any type of market analysis or research to gain a better understanding of what the customer want or need. According to The US Small Business Administration information about your target market would have allowed Elizabeth to narrow her target market to a manageable size. This could have been the true test to see if she really needed the additional building or to shift her products to the customer need. Many businesses make the mistake of trying to appeal to too many target markets. Research and include the following information about your market Distinguishing characteristics, Size of the primary target market, how much market share can you gain and Pricing and gross margin targets (SBA). If these entire step had been taken that Elizabeth would have known if the growth would have continued and the new location would support it. In a sense she forecasted her business to high and did not see the growth that she had planned for. Often business wait until they have outgrown a building or they cannot keep up with the demand before they seek a larger facility. Elizabeth did the opposite and thought that her business would pick up. She did not receive a return on her investment as she wanted had she put together the market analysis or simply a business plan than she would have been in a different situation.
Determine what is wrong with the proposal made by the team of the business students and why. The proposal that was made by the students did not support the vision of Biddy’s Bakery. According to the case study Biddy’s Bakery was started with the thought of it being a home-style bakery as an alternative to commercially available bake goods. When Elizabeth sought out help from the students she
Explain the challenge Elizabeth faced in meeting her capacity needs and what she should have considered before moving into the larger facility. The challenge that Elizabeth faced was market penetration. She did not do any type of market analysis or research to gain a better understanding of what the customer want or need. According to The US Small Business Administration information about your target market would have allowed Elizabeth to narrow her target market to a manageable size. This could have been the true test to see if she really needed the additional building or to shift her products to the customer need. Many businesses make the mistake of trying to appeal to too many target markets. Research and include the following information about your market Distinguishing characteristics, Size of the primary target market, how much market share can you gain and Pricing and gross margin targets (SBA). If these entire step had been taken that Elizabeth would have known if the growth would have continued and the new location would support it. In a sense she forecasted her business to high and did not see the growth that she had planned for. Often business wait until they have outgrown a building or they cannot keep up with the demand before they seek a larger facility. Elizabeth did the opposite and thought that her business would pick up. She did not receive a return on her investment as she wanted had she put together the market analysis or simply a business plan than she would have been in a different situation.
Determine what is wrong with the proposal made by the team of the business students and why. The proposal that was made by the students did not support the vision of Biddy’s Bakery. According to the case study Biddy’s Bakery was started with the thought of it being a home-style bakery as an alternative to commercially available bake goods. When Elizabeth sought out help from the students she
References: Reid, R. Sanders, N. (2010). Operations Management An integrated approach. Fourth Edition A publication of John Wiley & Son Inc. Hoboken NJ Berry, T. Bplans Your Business Starts here. What is in a business plan? (1996-2011) http://articles.bplans.com/writing-a-business-plan/what-is-a-business-plan/33 SBA.Gov. U.S Small Business Administration- Starting and Managing a Business. (2012) Retrieved from http://www.sba.gov/content/market-analysis Ralph, C.J. Business plan master. Writing a business plan. (1998-2012) Retrieved from http://www.businessplanmaster.com/what-is-a-business-proposal.html Microstrategy, Every Day, Millions of People Make Better Business Decisions Using MicroStrategy Software ( 2012) Retrieved from http://www.microstrategy.com/business-forecasting/