Report and Presentation Growth, Innovation, Sustainability, and Succession
BMGT 335
Report and Presentation: Growth, Innovation, Sustainability, and Succession
Using the following scenario and template, evaluate the three strategies (1-Take Over the Business and Maintain the Status Quo; 2 – Take Over the Business and Upgrade & Innovate the Business; 3 – Sell the Business or Close & Liquidate the Business). You must identify within the scenario, from the course materials and your outside research the information necessary to complete the template. Once completed, you must analyze the findings to determine which strategy aligns best with the owner’s goals for succession planning and sustainability, and address the role of innovation in achieving the owner’s goals.
You will present your findings in a two- to three-page report, not including the cover, references, or the template (which must be attached to the report as an exhibit). The final paper must be in APA format. A template has been provided in the Assignments Folder for the Final Report that you can use or you can create your own.
SCENARIO
The Gold Star Bakery is a small family-owned business founded by Dominick Clemente in the 1980’s. The business catered to the small Italian community with a selection of traditional Italian breads and pastries. There isn’t much competition nearby so Dominick made a good living operating the business on good profit margins. Success of the business was mainly attributed to satisfying local customers with fresh hand-made Italian bakery products made from traditional ingredients. To maintain a showcase full of fresh made products Dom dedicated long hours, often starting at 1 am each morning to have products available to the public by 7 am.
After many years of watching and assisting his father Dominick’s son Joseph was now 21 and working full time in the business. Not having much of an interest in going to college or pursuing a different career, Joseph continued his father’s tradition of mixing dough, baking and frying throughout the early morning hours, and opening at 7 am with a full showcase of freshly made products. This formula had served his father well for 30 years, and he really enjoyed working in the business and carrying on the family business. Dominick was pleased that his son would carry on the family tradition.
Through the years the baking methods and product mix hadn’t changed much but the industry did. Supermarkets were now incorporating extensive in-store bakeries offering an extensive line of breads, cakes and pasties, all made possible through time-saving industry innovations like quick-rising dough and frozen pastry products. Now supermarkets were able to provide a large selection of bakery products with less preparation time and cost. They also offered trending new products like cupcakes, themed cakes and other high-end muffins and breads.
Although this had caused a small decrease in annual sales revenue over the previous year, Dominick was confident that customers would return to his bakery once they experienced the difference in quality of the frozen products sold at the supermarket bakery. Furthermore, since he hadn’t increased prices for several years, he was confident that a small price increase could offset the loss in sales revenue. The business operated on low overhead, since most of the equipment was purchased 30 years ago and had been paid off for several years. Although more efficient machinery was available, Dominick was not interested in changing the traditional production methods or product mix which had served him well for many years.
Now facing retirement age, and pleased at the business he had built, Dominick was proud to be able to pass the business to Joseph, and proposed to sell the business to him for one half its appraised value. Dominick would use the proceeds for retirement, and Joseph could continue the business, which was currently generating enough revenue to cover the business loan and pay Joseph a working wage.
Considering the above scenario please develop a 2-3 page report in addition to completing the following template identifying the three noted alternatives which could be pursued and the Pros & Cons associated with each alternative. (Be sure to follow the “Required Formatting for Report”).
1. Take Over the Business and Maintain the Status Quo.
2. Take Over the Business and Upgrade & Innovate the Business.
3. Sell the Business or Close & Liquidate the Business
TEMPLATE
TAKE OVER THE BUSINESS & MAINTAIN THE STATUS QUO TAKE OVER THE BUSINESSUPGRADE & INNOVATE THE BUSINESS SELL THE BUSINESS,CLOSE & LIQUIDATE
PROS:
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PROS:
1.–
2.–
3.- PROS:
1.–
2.–
3.-
CONS:
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CONS:
1.–
2.–
3.- CONS:
1.–
2.–
3.-
