Michael Bregman Case
1. Opportunity Evaluation: It is a good business opportunity to open the bakery in Toronto because it is a business that has been disappearing due to technology, location of each facility is important in order to attract customers. The value-adding potential of the business is that they are focusing on French made products using French techniques and machines, and thus giving value to the product. The opportunity for long-term sustainability is high because no one else will be doing their method of preparation, despite the possibility of having losses in materials because it needs to be prepared on the same day. The type of business it can create will be attractive to the industry, following the current model of a “European bakery” feel that provides quality food to the population.
Some risks are: premature stage of the business and unstandardized methods of production that still need to be developed.
2. Implementation Strategy: The goals of the business are to provide a competitive advantage by bringing the process and preparation of French baking style business to Canada, specialize a few lines of products, since the “European baking style” industry would be smaller and smaller, and it emphasizes freshness and quality instead of frozen products that were used more often. As an investor, Michael’s risks were raising capital, and in this particular case he needed cosigners from different family members and even had his mother and father put up the house as collateral. Also, he risked only making enough money to cover the loan and took a $25,000 a year salary cut. He also ran the risk of accruing penalties for not making the five-year schedule.
3. Management: The management of the business requires a thorough understanding of the procedures needed to create valuable product. It is important to mention the effort time and dedication owners have to invest in the food industry. Michael sought out to bring a person with French baking......