Sprinkle's Case Study

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Review case 6 in Appendix C – Sprinkles; Leading a Sweet Trend. Then prepare answers to the two questions below and post them. What events helped them rocket to success and what is their expansion plans? Barbara Streisand purchased a dozen doughnuts and provided them to Oprah Winfrey. She later received a call that asked her to deliver 300 cupcakes and bring them to Chicago for an appearance. The business and it’s cupcakes were featured on breakfast with Oprah Winfrey, which led to national acclaim almost immediately. The company is currently scouting out 50 cities for potential locations and plans to open at least three stores by the end of the year. You will want to review their Web site to see the current plans. 1. What entrepreneurial characteristics did Candace and Charles Nelson display in this case? * The couple took a dedicated approach of commitment to enter into a market that was unique, as in there were no bakeries that featured only cupcakes. They established a commitment plan, conducted market research, and set out to establish a differentiation strategy for marketing their products. 2. What other traits and personal characteristics may be necessary for people to succeed as owners of new Sprinkles’ franchises? * A true vision of success, working capital, strong management skillsets, and focus to succeed. 3. With many stores scheduled to open, in what stage in its life-cycle is Sprinkles? - The business is in the growth stage of its lifecycle – sales and profitability are on the rise, competition is entering the market, and public awareness is on the rise. 4. What are the major management challenges Nelson faces in moving the firm to the next level of success? * Nelson will face increased sales, higher product demand, management planning challenges, raising capital and managing costs, new market/distribution channels, and logistical challenges.
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