preview

Brownie Baker Case Analysis Essay

Decent Essays

Brownie Baker Case Analysis

1. Does The Brownie Baker use a differentiation or a cost leadership strategy? How can you tell?

The Brownie Baker utilizes the low-cost leadership strategy as its primary business operational standard. However, I also believe that a good amount of research and market competitor awareness is implemented into The Brownie Baker’s marketing decision making processes. With the differentiation strategy placing emphasis on uniqueness, I believe The Brownie Baker borrows from this practice to adjust product features to effectively standout from competitor food product lineups on shelves. One of the ways The Brownie Baker accomplishes this effort is through its use of product packaging and design. However, …show more content…

Management has come to see this slight differentiation of the norm possibly due to lack of consumer expendable income and dieting after the holidays. This pattern in the normal trend of demand behavior would be considered an irregular variation.

4. What changes have been made in production scheduling and inventory management? Why have these changes been important?

The Brownie Baker has taken advantage of several new technologies and techniques to enhance product consistency and productivity over the recent years. Some of the most critical strategies the company has revamped are in production scheduling and inventory management. The company began this restructure in scheduling by increasing employees and modifying work hours to optimize production output and cleaning maintenance.

Another significant change the company took was to reduce the overproduction of its products. Since The Brownie Baker’s food products have a 21-day shelf life they had to remain frozen in storage until shipment. The company was lumping orders together and baking goods for future distribution; this was keeping money tied up while products waited to be shipped. Instead, the company now prepares its products on a “made to order” basis thus eliminating the holding period between shipments and freeing assets frozen in inventory and storage costs.

Finally, I believe another important change to The Brownie Baker’s production process was the implementation of

Get Access