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Case Study Mrs. Acres Homemade Pies

968 Words4 Pages

Question 1

Shelly Acres began her small business with the goal of marketing homemade, all natural ingredient pies to local supermarkets and family restaurants (O. Ferrell, Gatewood, L. Ferrell, & Taylor, 2010). At only 23, she had the insight to market the pies as baked by a grandmother. By renovating a shed and purchasing a commercial oven and second hand food processor, she created her own factory. Within six months, Shelly Acres began to outgrow her current small production factory. This was great for her business reputation. However, she soon could not meet the demands of the customers.
Faced with this dilemma, Shelly decided to increase her business. With four full time employees, she could now produce 400 pies a day compared to the previous 100 (O. Ferrell, Gatewood, L. Ferrell, & Taylor, 2010). This in turn created a wider profit margin. Since business has continued to grow, the demand for Mrs. Acres Homemade Pies is greater than her current employees can supply. She now faces the dilemma of either expanding her factory again or partnering with an outside national company to manufacture the pies. Either of these options would help meet the demands of the consumers. Shelly must now decide what the better option is for not only her company, but also herself.
In conclusion, Shelly Acres dream of managing a small business grew beyond her expectations. Now she must decide if the best way to manage Mrs. Acres Homemade Pies is by expanding with another company

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