Micheal Bregman

I. CURRENT SITUATION Bregman (B) opened two restaurants in Toronto¡¯s Eaton Centre - Mmmuffins (M): December, 1979 & angstrom unit; Michel¡¯s Baguette (MB): April 1980. By July 1980, both restaurants began to stabilize. B has limited experience/resources. B¡¯s butt ¡ú build substantial restaurant chain with ace or both concepts. II. ATTRACTIVENESS OF OPPORTUNITIES Unattractive macro- milieu: ¡ü 1980 entertain rates (prime lend interest rate = 15.3%) make prospective less foreseeable & investment planning raging (Hill & Jones 2001:85). If B wants to expand internally, he may pauperism to borrow at ¡ü equal or mortgage subtract of business. Inflation (1980) in like manner ¡ü @ 10% ergo equipment & inputs (ingredients) cost ¡ü. industry environment attractiveness: Industry shifted from retail bakeries to supermarkets with in- pedigree baking, fresh products & clinical depression prices. B must be aware of shift of guests to shop centre s. paint victor factors for competing in M & MB markets: pukka value creation, low costs, differentiated product, mail verity/customer responsiveness, efficiency, high timber, & innovation. Strategy ¨C characteristic competencies / rivalrous advantages: M strategy ¡ú specialization, attractive & cost-efficient store design, ¡ü-quality, freshness, simple menu. MB strategy ¡ú ¡ü-quality, freshness, eating quick in some comfort. MB has ¡ü-quality standards, superior recipe quality (freshness), elaborate specialization, organization & store design, excellent process manner of speaking system, expert bakers & specialized French equipment. However, success of MB not arduous to bend b/c: 1) belike not new enough to have true brand loyalty; 2) Probably does not have imperious cost advantages (unless processes are markedly superior); 3) Too small to gain from economies of scale. M¡¯s success is even less difficult to replicate due to simp le, standardized menu & ¡ý equipment c! osts @ just 10% cost of MB equipment. III. DECISIONS B mustiness run into w/r/t M & MB 1) Suitability for wide use; 2) Assuming one or both concepts are suitable, pursuing... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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