Case study Soft Spoons operates a series of fresh cream bakeries in
Case study Soft Spoons operates a series of fresh cream bakeries in Australia that specialises in supplying the range of cakes to restaurants and coffee shops. Major production includes event cakes, party cakes, scones, éclair, and custard tarts. Until last year sales levels were stable. However, sales have been decreasing for the last 12 months. Nicole Prier the marketing manager of Soft Spoons is worried and has visited major customers to find out the reasons for their decreasing sales order. The comments of the owner of one of the most popular Canberra Coffee Shop sums up the general response. ‘Nicole, your style of cake is old fashioned. They are not what people want anymore. Our customer preferred lighter taste. They want variety and are willing to pay more for high quality innovative and healthy creations. At a recent meeting, Nicole stated that the company should expand its product offerings or there may be no future for the company. Specifically, she believes that there is untapped market for the multigrain flour vegetable gourmet baked pies. The Managing Director is uncertain, he states, “I really don’t think that we can afford to invest time and money into fads”. We sell cakes, we are not a gourmet caterer. Nicole points out that it is these new items that customers are asking for, so it makes sense from a strategy point of view to develop these products. However, Page 1 of 2 Case study assignment :Strategic Management Accounting the Managing Director is still uncertain. I have no idea whether we’re going to make a profit this year and cash is always tight. We don’t need strategies; I prefer to just sell good products. Nicole understands why the Managing Director is resisting her plea to be more innovative with the products-the bakery has been producing the same line of cakes for 30 years. Nicole also knows that there has never been any formal planning undertaken within the company or consideration of objectives or strategies. Required: Nicole Prier has asked for your assistance. As the new management accountant prepare a report for the managing director conducting strategic analysis of the organisation in the light of comments made by Nicole. Also based on the strategic analysis advice what type(s) of strategy(ies) help in achieving business goals and objectives. (10 marks) Marking Criteria To address the requirement of question, please perform SWOT analysis, Porter’s Five Forces analysis and then come up with a conclusive argument of which strategy (ies) best suit the business to create competitive advantage. Marks would be awarded based on the analysis and application of knowledge on the case study facts and not on general discussion. Be specific in your responses and support your answer from the facts in the case study.