Michael Bregman Harvard Case Solution & Analysis

Michael Bregman

Opportunity Evaluation

Canadian food industry has been flourishing with a tremendous rate. In the Canadian food industry, 16.5% share belongs to franchise. An attractive survey reported a 29% increase in the total food service franchise sales. The store design and concept was one of the biggest advantages they had that attracted the customer. For the value addition they could introduce the customization facility in the products for customers.  Refer to the exhibit 3, the net profits of the Mmmuffins are low as compared to Michel’s Baguette, so Baguette can afford to give higher margins to customers as compared to Mmmuffins. Industry is extremely attractive due to the high growth rate from all positive aspects.

Implementation Strategy

Business goals should increase sales to penetrate in the market as much as possible. Moreover they should expand their franchising network to increase the brand recall. Their competitive strategy should be low pricing strategy so that more and more penetration can be possible. Investor must feel risky because very low experience and competition risk may create a serious issue afterwards. On initial basis, investing a lot of capital may not be a suitable option.

Management

Management will require expert cooks and other employees for the best product. The management is doing a tremendous job because in a very small span of time these two businesses have flourish in a very tremendous manner. In the exhibit 2, their sales figure is continuously been increasing that shows the excellent performance of the management from both the Mmmuffins and Baguette. They must expand their network and must come up with new branches and try their level best to outsource branches in through franchising. Franchising will help them to increase the public reach, moreover, this less costly but they must make sure that while doing franchising they must maintain their quality and taste standards. They should also make sure that a complete range of products should ..........................

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Michael Bregman successfully opened a pilot plant two different concepts restaurant. Now he has to develop a growth strategy, including the decision to fast or slow growth, the use of company-owned versus franchised units, and how to use different concepts. To do this, Michael has to pay special attention to the pros and cons of franchising. "Hide
by Howard H. Stevenson, Richard O. von Werssowetz Source: Harvard Business School 21 pages. Publication Date: Mar 03, 1983. Prod. #: 383107-PDF-ENG

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