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A bakery business is opening new outlets to expand its reach and introduce unique products like organic and vegetarian options, aiming to increase sales and profits. However, this expansion leads to higher administrative and infrastructure costs, and potential quality issues due to the challenges of managing multiple locations. To maintain quality while controlling costs, the business needs to effectively train staff and manage expenses.

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khayyamrafique980
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23 views1 page

Document 2

A bakery business is opening new outlets to expand its reach and introduce unique products like organic and vegetarian options, aiming to increase sales and profits. However, this expansion leads to higher administrative and infrastructure costs, and potential quality issues due to the challenges of managing multiple locations. To maintain quality while controlling costs, the business needs to effectively train staff and manage expenses.

Uploaded by

khayyamrafique980
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Problem Statement: A bakery business opens new business outlets.

Causes:
1. They want to reach out to the customers by expanding to new location.
2. They might be introduce a new and unique products e.g organic and vegetarian.
3. To increase the sales and earn more profit.

Effects:
1. Increased administrative cost.
2. Increased cost due to new infrastructure.
3. Quality may decrease.

A bakery business opens a new business outlets for expanding purpose. The bakery wants to reach
increases and offering delicious baked goods to customers.

The bakery want to reach out to the customers by expanding to new location and they might be
introduce a new and unique products which different from competitors, such as organic and
vegetarian. Due to this act, the sales of business increases and business gain more profit.

Expanding to the new location the business administrative cost and new infrastructure cost are
increased. Because business needs the new management and trained staff. Due to different branches,
business face difficulties to provide high quality products in reasonable price, business of which
quality may decreases.

If business reduce the administrative or new infrastructure cost and business can be trained their
staff, So business will provides high quality goods in reasonable price to the customers.

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