Amy’s Bread Essay

Strengths Amys entrepreneurial spirit Toy Kim Dupree-excellent right-hand director Already has about 50 sell customers, plus 30 on a waiting list Company is finally turning a win Positive work environment (5 day work week, bankrupt pay than competition, benefits package, 401(k) plan, employees allowed to speak freely, low turnover) Retail pedigree allows for higher profit margins, and now represents 25% of Amys business Good niche w atomic number 18 mix-high quality bread products, micro-bakeries Makes herself available to the press/public, leads to word of mouth advertising Can now secure bank financing due to Amys proven track record Wholesale business (representing 75% of the business) is much stable than sell business.Opportunities Much higher profit margins in high-end breads (black olive, orchard apple tree walnut rasin-$2.40 wholesale, $3.40 retail profit with the high-end breads vs. $1.71 wholesale, $2.60 retail without high-end breads) Retail business (currently 25% of business) allows for higher profit margins and payment is only in cash Hiring other manager could allow Amy more time to run the company buy 31st street location would allow for production facility expansion and the ability to cater to customers currently on the waiting list Leasing the fifteenth street location could allow some(prenominal) retail and production expansion.Weaknesses bakery industry is highly competitive with low wholesale profit margins NYC locations are very expensive Higher labor costs due to hand-production techniques (35% of CGS) atom prices are volatile Ingredients are more expensive than the competitions CGS is 65% of net sales Competitors can enjoy ameliorate economies of scale due to automated production and cheaper ingredients 75% of the business is through with(predicate) lower-profit wholesalers Current production location is too small to meet ripening demand.Threats Dieting trends (i.e. Atkins diet) could affect consumer demand for bread.Miss ion To produce high-quality, handmade breads for wholesale and retail customers through our retail locations and door-to-door deliveries.Objective Amys slit has seen steady growth over the last few years. This success has overextended both the employees and the warehouse space. Amy is calculateing to move operations to one of two locations a building on 31st street, or one on fifteenth street. The 31st street location would allow Amy to expand her wholesale business and allow her to invest in a property instead of leasing. Amy should in addition look into adding a manager to allow her the time to focus on the overall business. Her most profitable bread lines are the high-priced breads, she should look into increasing the number of high-priced bread. Eventually, Amy should consider opening small retail locations in New York City.