Uploaded by B AL Shehhi

Case 1 Solution

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Name: Basel Ahmed Saeed Alshehhi
ID: 202210030
1. The operational issues that effected Priya's Cakes:
 To maintain the quality of picture cake as the high demand for it led to low
quality pictures due to absence of dedicated artist.
 The absence of standard pricing procedure which created challenges in
negotiations between Priya and her customers.
 Non availability of website and online presence: the customers are requesting
website for online ordering instead of visiting the shop. Moreover, to explore
cake options and designs.
 The limitation of delivery system with make to stock orders, and Priya’s
involvement in delivery is time consuming that can affect her work.
 The lack of contract service for bulk orders and the lack of onsite setup
assistance which led to lose business to competitors.
The above issues can affect each other:
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The quality of picture cake and Pricing: The quality of the cake can affect the
satisfaction of the customers and the negotiation for cake prices, and it may
affect the prices of standard and custom cake segments.
The availability of website and delivery system: The online presence in the
websites can make the delivery scheduling easier than the existing situation.
Delivery, contract service, and onsite setup: the delivery as planned on time will
affect the onsite setup positively. At the same time the customers will be
satisfied about service contract.
The process of Making Cake:
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Ingredient Preparation: Measuring and preparing ingredients (flour, sugar, eggs,
butter, etc.)
Mixing: Combining ingredients in the correct order and using appropriate
techniques (creaming, folding, etc.)
Baking: Pouring batter into prepared pans and baking in a preheated oven at the
correct temperature and duration.
Cooling and Assembly: Allowing the cake layers to cool completely before
assembling with frosting and filling.
Decorating: Applying frosting, decorations, and any special elements (sculpted
pictures, figures, etc.)
2. The order qualifiers and winners for Priya's Cakes, considering both standard and
custom cake segments:
Feature
Standard Cakes
Custom Cakes
Order
Qualifiers
Quality
High-quality ingredients
Flawless execution of designs and decorations
and taste
Variety
Range of standard
Wide array of flavors and flexibility for new
flavors and daily specials combinations
Pricing
Competitive pricing
Lead Time
Short lead time and
quick availability
Hospitality
Friendly and welcoming Effective communication and collaboration
service
throughout the design process
Order
Winners
Lead Time
Immediate availability
and quick pickup
Unique
Offerings
Unique daily specials or
seasonal flavors
Customer
Service
Exceptional and personalized designs
Excellent customer service, including clear
communication, personalized consultations, and ontime delivery
The standard cake segment remains important for:
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Steady Revenue Stream: It provides a consistent base revenue and attracts walk-in
customers.
Brand Awareness: It introduces customers to Priya's Cakes and may lead to custom cake
orders in the future.
3. I would collect the following data:
 Sales Data for standard cakes and custom cakes.
 Customer data such as demographics, feedback, and order history.
 Operational data such as production time and labor costs.
 Website traffic
 Market data that includes competitors’ analysis and industry trends.
Potential Approaches with Data:
 Demand Forecasting by analyzing sales data to forecast demand for different
cake types and to optimize production planning.
 Pricing Optimization: by using data on production costs and other factors to
develop a standard pricing model for custom cakes.
 Customer Segmentation: by Analyzing customer data to identify the range of
customer segments and determine their specific needs.
 Website Optimization: Utilize website traffic data to improve website design
and online ordering processes.
 Delivery Route Optimization: by Analyzing delivery data to optimize delivery
routes, reduce delivery times, and minimize costs.
 Performance Monitoring: Track key performance indicators such as sales
growth and operational efficiency to measure progress and identify areas for
improvement.
Priya's Future Plan of Action
4. Here's a suggested plan of action with an integrated implementation plan:
a)
Maintain Quality and Consistency in Picture Cakes:
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Dedicated Artists: Hire a dedicated part-time or freelance artist to focus on picture
cakes during high demand periods.
Training and Supervision: Provide training and supervision to regular chefs on basic
picture cake techniques to handle fewer complex orders during non-peak times.
Standardized Templates: Develop standardized templates and guidelines for
common picture cake designs to ensure consistency and reduce production time.
b) Pricing and Customer Interaction for Custom Cakes:
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c)
Standardized Pricing Model: Develop a clear and standardized pricing model
based on factors like size, complexity, flavor, and design elements.
Online Design Tools: Implement online design tools on the website to allow
customers to visualize and customize their cakes, reducing consultation
time.
Scheduled Consultations: Implement a scheduling system for custom cake
consultations to manage time effectively and provide dedicated customer
attention.
Website and Online Presence:
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Website Development: Launch a user-friendly website with online ordering
capabilities for standard cakes, showcasing custom cake designs, and potentially
incorporating online design tools.
Social Media Marketing: Utilize social media platforms to promote both standard
and custom cakes, showcase designs, and engage with customers.
d) Delivery Challenges:
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Delivery Options for Standard Cakes: Offer delivery options for standard cakes, with
a minimum order value or delivery fee.
Delivery Partnerships: Explore partnerships with local delivery services to expand
delivery reach and handle increased demand, especially for midnight deliveries.
Delivery Optimization: Optimize delivery routes and schedules to ensure timely and
efficient deliveries.
e) On-Site Setup and Service Contracts:
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On-Site Setup Service: Offer on-site cake setup services for custom cakes, especially
for large orders and weddings.
Rental Partnerships: Establish partnerships with rental providers for cake stands
and pedestals to offer integrated services.
Implementation Plan:
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Phase 1: Focus on immediate needs:
 Hire a dedicated artist for picture cakes.
 Develop a standardized pricing model for custom cakes.
 Launch a basic website with online ordering for standard cakes.
Phase 2: Expand offerings and optimize operations:
 Implement online design tools and consultation scheduling.
 Offer delivery options for standard cakes and explore delivery
partnerships.
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 Establish on-site setup services and rental partnerships.
Phase 3: Strategic growth and marketing:
 Enhance social media marketing and online presence.
 Explore strategic tie-ups with wedding service providers.
 Continuously monitor and analyze data to optimize operations and
customer experience.
Justification:
This integrated plan addresses the key operational issues, leverages market opportunities, and
aims to improve customer satisfaction, operational efficiency, and overall business growth. By
implementing these strategies in a phased approach, Priya can manage resources effectively and
adapt to evolving market demands.
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