Download And Read The Case Study From Hesssgrowing An Entrep ✓ Solved

Download And Read The Case Study From Hesssgrowing An Entrepreneurial

Read the case study from Hess’s Growing an Entrepreneurial Business (2011): 3 Fellers Bakery. Write an essay answering the following case study questions. Questions: You are Susan Feller. Should you grow your business? Why? What are the key questions that you must answer to decide question 1?

What are Susan’s growth options? What are the pros and cons of each? You are Susan Feller. How would you grow your business and why? Growth can be good and growth can be bad.

What does that mean with respect to this case? Prepare an argument for why Susan should not grow the business. Support your answers using at least two sources. Your paper should be 3-4 pages in total length and be formatted according to APA standards. title page, section headers, introduction, conclusion, and reference page. Case Study Attached Below.

Sample Paper For Above instruction

Introduction

Susan Feller faces a pivotal decision in determining whether to pursue growth for Fellers Bakery. The choice to expand or maintain the current scale involves analyzing various strategic, operational, and personal factors. This essay explores whether growth aligns with the company's mission and resources, evaluates different growth options, and considers reasons for cautiousness or restraint in expansion.

Should Susan Grow Her Business? Why?

The decision to grow a small, family-owned bakery like Fellers Bakery depends on multiple considerations, including market demand, operational capacity, financial stability, and personal readiness. Growth can offer increased revenues, market presence, and opportunities for innovation; however, it can also introduce risks such as overextension, loss of quality, and compromised customer relationships.

In Susan’s case, she must assess if the current market justifies expansion and if her team can handle increased production without sacrificing quality. If the bakery is experiencing steady demand and there is clear potential for growth, then expanding could be beneficial. Conversely, if the market is saturated or the business is financially strained, growth may jeopardize stability.

Based on existing evidence, Susan should consider if her core competencies and resources are sufficient to support growth initiatives while maintaining the boutique feel that differentiates her bakery (Miller & Friesen, 1983). Therefore, a cautious approach—such as phased expansion or exploring new niches—could be appropriate before a full-scale growth.

Key Questions to Decide on Growth

• Does the market demand support expansion?
• Are operational resources sufficient for increased production?
• Will growth align with the company’s mission and values?
• What are the financial implications and risks involved?
• How will growth affect product quality and customer satisfaction?
• Do Susan’s personal goals align with the demands of expansion?

Growth Options for Susan

1. Increasing Production Capacity

Pros: Higher sales volume, economies of scale, greater market share.

Cons: Increased operational costs, potential quality control issues, overextension of resources.

2. Franchising or Licensing

Pros: Expansion with lower capital investment, leveraging local entrepreneurial efforts.

Cons: Less control over brand and quality, diluting the bakery’s unique identity.

3. Opening Additional Locations

Pros: Broader footprint, increased brand recognition.

Cons: Significant capital investment, operational complexity, management challenges.

4. Diversification of Product Line

Pros: Attracting new customer segments, increasing revenue streams.

Cons: Dilution of brand focus, potential operational complexities.

Recommended Growth Strategy and Rationale

If Susan opts to pursue growth, a phased approach focusing on increasing production capacity while maintaining high product quality is advisable. This minimizes risks and allows her to evaluate demand and operational capacity incrementally (Christensen, 1997). Additionally, exploring online sales or niche markets could complement physical expansion without overextending resources.

Arguments For Not Growing the Business

While growth appears attractive, there are compelling reasons for Susan to refrain from expansion at this point. A primary concern is maintaining product quality and customer relationships, which could deteriorate under rapid growth (Lafley & Martin, 2013). Uncontrolled expansion might lead to inconsistent offerings, which could harm the bakery’s reputation.

Financial stability is another crucial consideration. If the bakery is not yet financially robust, taking on debt or investing in expansion could threaten its sustainability. Furthermore, the personal and managerial capacity of Susan and her team might not be sufficient to oversee significant growth, risking burnout or mismanagement (Barney, 1991).

Lastly, market conditions might not justify expansion; if demand is already met or limited due to local competition, then growth may not translate into increased profitability. Instead, focusing on strengthening current operations ensures long-term stability and preserves the unique identity of Fellers Bakery.

Conclusion

Susan Feller’s decision to grow her bakery should be carefully considered, weighing the potential benefits against the risks. While expansion can lead to increased revenue and market presence, it also entails risks to quality, financial health, and operational capacity. A cautious, well-planned approach aligned with the company’s core strengths and market realities is recommended. Conversely, conservative strategies that prioritize quality and stability might be more appropriate given current circumstances.

References

• Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
• Christensen, C. M. (1997). The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review Press.
• Lafley, A. G., & Martin, R. L. (2013). Playing to Win: How Strategy Really Works. Harvard Business Review Press.
• Miller, D., & Friesen, P. H. (1983). Strategy-Making and Environment: The Role of Pattern Recognition. Strategic Management Journal, 4(2), 11-32.
• Additional sources relevant to small business growth and management theories.