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A comprehensive business case study analyzing the growth challenges faced by cala w mace, an artisan bakery in warsaw, poland. It explores various expansion options, including wholesale partnerships, adding a coffee shop, and maintaining the status quo. The document evaluates each option based on quality impact, financial viability, operational feasibility, brand integrity, and long-term growth potential. Ultimately, it recommends a strategic approach that prioritizes wholesale expansion to achieve sustainable growth while preserving the bakery's artisanal reputation.
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Submitted in partial fulfillment of the requirement of the course WRITTEN ANALYSIS AND COMMUNICATION (WAC) Submitted to Prof. Dr. Urjani Chakravarty Submitted by: Mr. KOUSTUBH BHUJANG HIRE Class: C Roll No: MBA/3061/ On 3 rd^ September 2024 Indian Institute of Management Bodh Gaya PGP 2024-
Monica Walecka’s bakery, Cala w Mace in Warsaw, is thriving but faces growth challenges. The dilemma is whether to maintain current operations or pursue expansion. Options include expanding through wholesale, opening a second location, adding a coffee shop, or maintaining the status quo. Evaluation criteria include quality impact, financial viability, operational feasibility, brand integrity, and growth potential. After evaluating the options, expanding through selective wholesale partnerships is recommended. This approach balances growth with quality control, offering new revenue streams while preserving the bakery’s artisanal reputation. A gradual, controlled expansion strategy is advised. TABLE OF CONTENTS
1. Situation Analysis Monica Walecka's bakery, Cala w Mace (All in Flour), is located in the district of Zoliborz in Warsaw. Since its opening in mid-2019, it has established a good name in the market for artisan bread and high quality that is justified by higher-than-usual prices. The bakery succeeded because Monica did not let quality falter, was hands-on, and the clientele liked the luxury profile of her product portfolio. Notwithstanding the successful experience, the list of challenges the bakery is facing grows day after day: Market dynamics : Increased artisan bakeries in Warsaw city have compelled Cala w Mace to strive to put up a good fight with their offerings. Operational boundaries : The bakery has a small team, and since it uses high- end ingredients in its products, it can barely increase output without compromising on quality. Growth Opportunities : The business has immense potential for expansion either through opening further branches, increasing the level of production, or improving the existing facility. These are equally very risky and challenging options. 2. The Problem Statement What alternatives will Monica need to take to make Cala w Mace viable for the future while sustaining the artisan quality and brand of the bakery?
Long-term Growth Potential : High. New markets without significant upfront investment.
2. Add Coffee Shop to Existing Location. Impact on Quality : Low risk - The core bakery operations are not affected. Financial Viability : Moderate investment with a fair potential increase of revenue per client. Operational Feasibility : Moderate, with changes to the current space and possible adjustments in staffing. Brand Integrity : Would offer a better experience for the customer without changing the brand. Long-Term Growth Potential : Moderate, because it enhances customer engagement but may not greatly increase the number of customers. 6. The Recommendation After careful consideration of all possible alternatives that could have been pursued for Cala w Mace, I propose Option 1: Expand through Wholesale as the first avenue of pursuit and keeping Option 2: Expand the Current Location with a Coffee Shop for secondary or future consideration. While both options are feasible ways to expand the business, wholesale expansion represents the most immediate and significant opportunity for Cala w Mace. This gives Monica an opportunity to scale up the revenue and brand presence without many of the risks associated with expanding on a much larger physical scale. Once the wholesale operations have settled and are running smoothly, Monica can explore further enhancements in customer experience at the bakery through the expansion that includes adding a coffee shop. In this regard, this two-pronged approach will most definitely ensure that growth is sustainable while retaining artisanal quality and integrity of the brand that have made Cala w Mace successful.
7. Action Plan
Financial Projections : Comparative analysis of the revenue, costs, and profitability for each option. Market Analysis : Overview of the competitive landscape in the Warsaw bakery market. Customer Feedback : Insights on customer questionnaires regarding the potential expansion of services or product line. Operational Capacity : Evaluation of current bakery production capabilities; any scope for scaling.
