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Hr Paper

In: Business and Management

Submitted By nichy2
Words 462
Pages 2
Cynthia Smith
Professor Yaron M. David
Principles of Management and Leadership
September 7, 2004

Michael Bregman Case Questions
1. The major strategic issues Michael Bregman must address are (1) deciding on whether or not to focus on specialty-type restaurants or (2) deciding on franchising one or both of his companies. There are risks involved in deciding on which business strategy to pursue. For the focused business strategy, Bregman must decide on the type of specialty restaurant to pursue by marketing; he must also take into account location and demographics. For the franchising business strategy, not only must Bregman take into account location and demographics, but he must also consider the ramifications associated with franchising such as disclosure issues, liability and capital requirements.

2. The design layout and space makes it efficient for the employees at the Mmmuffins Shop to function well. Because Mmmuffins’ menu consists of only a few basic items, the employees do not have to be highly qualified. Management only has to supervise a small staff and be concerned with routine day-to-day activities. Management has established policies and procedures in place, which makes it easier for all involved. On the other hand, Baguettes is more complex in that the company is both a restaurant and bakery. Baguettes is larger than Mmmuffins and requires specialty staff for specialized tasks. In addition, management has to supervise a larger staff and without policies and procedures in place, which can be difficult. The space, although small, is functional and efficient for the staff to perform their duties.

3. Michael Bregman has vast experiential knowledge in the bakery and restaurant business. In addition, some of his staff members have specific technical knowledge in the bakery business as well. The acquisition of specialized equipment gives Bregman the edge in delivering a more superior product. Using the specialized machinery makes it difficult for other companies to replicate Baguettes’ baked products. Also, using fresh ingredients and by baking the company’s products from scratch makes it costly for other companies to imitate. Bregman is trying to establish brand recognition, which is an intangible resource.

4. The business strategy for both companies is somewhat similar. Bregman used the differentiator approach as his business strategy; he is differentiating by using fresh ingredients to ultimately establish brand recognition. Mmmuffins is a second mover shop because Mmmuffins duplicated and made a product better based on the success of a product that was already proven successful by another company. Baguettes is both a late mover and a second mover shop. As a late mover, Baguettes was developed as a result of copying the fast food restaurant concept. As a second mover, Baguettes bakes and sells French croissants from scratch, which is something unique and new in that geographical area.…...

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