Memorandum
To: Amy Bourgon
From: Imran Consulting Inc.
Re: Bake Me A Cake
Introduction
On January 14, 2011, Amy Bourgon, sole proprietor of BMAC initiated the idea of expanding her home business and looked towards making changes to her company’s strategy. Throughout the last three years, BMAC has grown and concerned at the fact that growth might halt due to her work environment, she is now wondering whether it is time to expand her business in to a bigger location. This case will analyze the industry Bourgon is working in and try and predict how revenues and expenses will react depending on which alternative is chosen.
Role
In this case, I will be specifically advising Bourgon as an external consultant. I will be focusing on providing a thorough analysis of her business environment and industry while also researching and analyzing her past performance with additional information to predict her future fiscal year's income statement as well as balance sheet. My goal is to help her find the alternative that achieves the highest profitability while also maintaining low costs. My audience will be Bourgon herself, as well as her mother who is believed to be helping Bourgon with bookkeeping.
PESTE
Economic
One of the most important things to consider when analyzing the case is the input …show more content…
One of the biggest reasons being that large commercial bakeries factory produce their products, resulting in products having a longer shelf life. In addition to having a larger shelf life, larger companies have access to large capital and have the ability to offer cakes, as well as a wider product line of cupcakes and other pastries at a cheaper price. As a result, price elasticity will be an issue, considering customers might choose the cheaper option when it comes to events not as large as weddings (anniversaries, holidays
To: Amy Bourgon
From: Imran Consulting Inc.
Re: Bake Me A Cake
Introduction
On January 14, 2011, Amy Bourgon, sole proprietor of BMAC initiated the idea of expanding her home business and looked towards making changes to her company’s strategy. Throughout the last three years, BMAC has grown and concerned at the fact that growth might halt due to her work environment, she is now wondering whether it is time to expand her business in to a bigger location. This case will analyze the industry Bourgon is working in and try and predict how revenues and expenses will react depending on which alternative is chosen.
Role
In this case, I will be specifically advising Bourgon as an external consultant. I will be focusing on providing a thorough analysis of her business environment and industry while also researching and analyzing her past performance with additional information to predict her future fiscal year's income statement as well as balance sheet. My goal is to help her find the alternative that achieves the highest profitability while also maintaining low costs. My audience will be Bourgon herself, as well as her mother who is believed to be helping Bourgon with bookkeeping.
PESTE
Economic
One of the most important things to consider when analyzing the case is the input …show more content…
One of the biggest reasons being that large commercial bakeries factory produce their products, resulting in products having a longer shelf life. In addition to having a larger shelf life, larger companies have access to large capital and have the ability to offer cakes, as well as a wider product line of cupcakes and other pastries at a cheaper price. As a result, price elasticity will be an issue, considering customers might choose the cheaper option when it comes to events not as large as weddings (anniversaries, holidays