Case Synopsis
Founded in 1984 Laurentian Bakeries Inc. operates in the industry of manufacturing a vast variety of frozen baked products within their three operating plants in Montreal, Winnipeg and Toronto. The operating plants produce items such as frozen pizza in Winnipeg, MB, pies in Montreal, QC and Cakes in Toronto, ON- with each representing 30%, 30% and 40% of the total revenue stream respectively. The buyers for this company include large institutional clients such domino’s pizza, etc. which have a significantly higher level of power whereas the seller of the products consists of several food producers which have a relatively low level of power. With…show more content… This indicates that they are a dominant player in the market and have survived many difficulties from various competitions. * Well established and profitable company which indicates that they have survived one full economic cycle and have withstood their competition. * The company has a diversified revenue stream with three operating plants located in major cities which are not as risky as a single revenue stream. * All three segments are profitable. * Low cost pizza producer which is helping to expand into the US. Market. * Laurentian Bakeries has an integrated workforce such as sales, marketing, etc. for all of their operating plants.
Weakness
* Shortage of capacity. If this weakness is not dealt with the company can face losses in their sales because of the shortage. This in return lowers the overall profit of the company and can potentially decrease buyers if they cannot meet the demand due to the shortage. * Class 1 products are too risky and by taking such a great risk any wrong doing can have a negative impact on the company.
Opportunities
* Arrangement to supply large U.S. based grocery chain with private label brand. If the opportunity is taken to its advantage the company can potentially see higher figures in sales and profits. * Since U.S. pizza consumption is 3x bigger than the Canadian segment the overall US market is bigger which can potentially lead to a higher market share.
