crack Bakery Inc.
Candice M. Johnson
Acct 561
July 23, 2012
Chuck Royes
Super Bakery Inc.
Super Bakery Inc. (SBI) has substantial a virtual corporation in which only the core, strategic functions of the business are performed inside the companionship and the remaining functions are outsourced (Kimmel, Weygandt, & international ampere; Kieso, 2009). SBIs major challenges are coordinating and controlling customer service quality and cost of the functional activities performed by external organizations (Davis & Darling, 1996). Following is a discussion of the strategies and tactics SBI social occasiond to develop the business as well as the cost collection method utilize to reduce challenges of operating as a virtual corporation.
Strategies and Tactics
commit of standard industry practices prevented SBI from cunning the institutional food market. As a result, SBI tailored a unique set of strategies and tactics. First, SBI set an underserved segment of the tar force back market and pioneered a doughnut that met factory farm guidelines and still tasted good (Davis & Darling, 1996). Second, SBI updated packing techniques to include the use of refrigeration and vacuum sealing methods. This permitted shipping nationwide, thus penetrating a previously fragmented market (Davis & Darling, 1996).
Third, SBI developed ways to assist its customers including helping customers get lower prices by using government-supported commodities, cooperating with noncompeting suppliers, and helping distributors reduce inventory carrying costs and rescind stock outs by using just-in-time delivery (Davis & Darling, 1996). Fourth, and near important, SBI reduced capital investment and overhead expense by contracting out major functions of the business including selling, manufacturing, warehousing, and shipping (Kimmel, Weygandt, & Kieso, 2009). Implementing these four strategies allowed SBI sales to take off and grow at an average rate of 20% (Kimmel, Weygandt, & Kieso, 2009).
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