Individuals Case - Class Discussion
Dieters Case – Class Discussion/Example
Who have & what? Supplier? Buyers? Immediate Earlier?
Example: People, a successful pastry chef, has DD a b______ inside the design and distribution of baked goods. He outsources almost all production to Browne's Food handling business, where he accounts 21% of sales. People sells to caterers/hotels/ grocers under DD label. DIE BAHN wants to grow -> with BB increase production. BB doesn't wish to fund a risky venture with debt/30% dependence on DD. DD could also created their own herb, but would need external s/h and loans. Problem Assertion:
1) How could DD develop the future?
Sector (What/Attractive/Why): Design and distributor of baked goods, high buyer and dealer power, a lot of subs (Bad) Strength Vs . Weaknesses: Strength outweighs Weak spot, good discovers and rep'n however sole supplier, deficiency of management knowledge. Opportunities Vs . Threat: Chance outweighs risks, continued growth. Threats surpass opportunities, remarkably competition, big brands, healthier eating, subs Porter's Examination (" EXISTING INDUSTRY”):
Who? Food, caterers, accommodations.
Electrical power? Buyers.
Why? Family member size, plenty of producers
Why? Contract baker
Electricity? Buyers (easy to switch)
Why? Easy to move
Exactly what are they? Your favorite ice cream, chocolate pubs, baked goods at home O, a few, lots? LOTS
Threats of Entrants:
Why? Low $$, hard to grow
Low/Med/High? Low: Substantial? Low revenue
1) Stick to Browne's, expand slower
2) Build Flower (reduced size)
3) DEUTSCHE BAHN investors broaden Browne's grow
4) Set an additional supplier (some/all)
Analysis of Alternatives:
1) Stay with Browne's, expand slow
Pros: Significantly less risk, G continues to build experience/capabilities, M could preserve $ to generate in future, N doesn't need to borrow Disadvantages: Slows growth, D gets pissed off, Doesn't resolve problem, minimizes neg electric power, 100% reliance on B, fewer profit 2) Build Plant
Pros: Even more...