The Brownie Factory

We decided to increase Allround’s pricing by no more than $0.10 per period with a final price of $5.70. As it relates to Allround + we took a bigger risk, increasing price by $0.75 with a final pricing of $6.05. The results did not prove to be as favorable as we would have liked. Although sales increased, our net income, stocks and share of manufacturer sales fluctuated throughout the simulation. Some of the decisions made did not always prove favorable, for our team, Allround went from $102.1M to $148.6M in unit sales and $355.3M to $537.8M in sales. (See figure 1). Allround + went from $7.4M to $38.6M in unit sales and grew from $24.2 to $109.8M in

Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.

Attracts customers with other preferences and may compete broadly in the industry by branching out in new locations

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

An increase in sales will translate to profitability in the organization. This in turn translates to revenue increase in the organization and dealers. Canceling agreements to exclusive rights of sale will give all dealers similar opportunities. This means that the dealers in the market have an opportunity to reach any consumer. Additional dealers will help in leveling the playing field.

Super Bakery, Inc. was founded in 1990 by Franco Harris, former Pittsburgh Steelers' running back. The company is a supplier of doughnuts enriched with minerals, vitamin, and protein as well other baked commodities to the primary school systems and institutional food market throughout the nation. Since it's a virtual corporation, the core strategic functions of the business are carried out within the company. On the other hand, the other activities of Super Bakery, Inc. are outsourced to a network of external organizations. The business in turn organizes the work flow of and draws together the external companies in this process. This helps the company to add maximum value while making minimal investments in working capital, fixed assets, and permanent staff. The outsourcing to a network of other companies has enabled Super Bakery to increase its sales at average annual rate of 20 percent.

1. Most efficient use of resources to cover market needs. Management will look at more than

C. The partners combine resources and capital to create competitive advantages in a new market

4. By expanding the distribution channel one single customer doesn’t dominates the market share, and limited distribution channels could affect company’s bottom line.

The purpose of this memo is to offer a recommendation in the restructuring of Interstate Bakeries. This advice has been initiated at the request of company CEO James Elesser so that he can better ascertain which option, filing for bankruptcy or seeking further mergers and acquisitions, would be the best direction to take to counteract flailing profit margins. This is an independent recommendation made from researching the company’s financial history as well as the company’s product portfolio and market segments.

The Cheesecake Factory Incorporated is in the “Restaurant Industry.” It started in the 1940s in the home of Oscar and Evelyn Overton. The business was so successful that in 1971, they moved the cheesecake business to Los Angeles and named it “The Cheesecake Factory”. In 1978, their son David founded The Cheesecake Factory restaurant in Beverly Hills and 30 years later you can find their restaurant in towns and cities all over the United States with new businesses opening all the time.

As a result, larger distributors typically carry competitive products. Margins on product resale is generally higher than 10%.

After analyzing the results from the previous quarter, it was determined that the prices set for each segment were not sufficient. Product sales priority were also not properly adjusted. With the R&D investments, sales priorities needed to be changed for the main focus to become the most profitable market segments. Prices were not competitive which in turned decreased revenue, market share, and profitability. To become more competitive we altered the prices in each market segment. The Workhorse product was the first to change, the price was lowered to $2500 in an attempt to increase sales; at this price Team 4 was still making a profit on this product, as well as making the price much more competitive. The Workhorse sales priority was also lowered to 3rd in Americas and 4th in APAC and EMEA. This product was not selling as well as we had hoped, and was no longer as profitable as it once was which led to this decision. Next, the Innovator product’s price was adjusted; this involved a price increase to $4100. This price was adjusted to include the new

- Sales increase: a) cross-promotions of each company’s brand and utilization of each company’s channels, and b) cooperation in international businesses.

2. Continue being a nationally recognized brand name and dominate restaurant operator in the specialty bakery-café segment.