• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Success and Failure at Mrs. Field's Cookies. The secret ingredient in Mrs. Fields business concept is providing freshly baked and incredibly tasty cookies at each store.

Extracts from this document...

Introduction

MRS. FIELDS' COOKIES Case Analysis Introduction 3 Business Concept 4 Customer definition 4 Value proposition 5 Product/service 5 Distribution channels 5 The Success of the Business Model 6 What went wrong in the company? 7 Feasibility Analysis 8 SWOT Analysis 9 Strengths 9 Weaknesses 10 Threats 12 Opportunities 13 Could the company be managed differently? 14 Mrs. Fields' Cookies Today 15 Recommendations 16 Works Cited 17 Introduction Mrs. Fields was founded by Debbie and Randy Fields in 1977 as bakery shop. Debbie Fields decided that it's time to do something on her own to get out of her husband's shadow, and started doing what she knew best - baking chocolate chip cookies. Even though her friends and family didn't support her idea, she was persistent and started her first cookie store in Liddiocoat's Market in Palo Alto. Things got even worse when she didn't manage to sell even one cookie on the first day. Afraid that she is going to fail, she took the cookies and gave them away to people on the streets as free samples which attracted them to come back and buy. The second store opened at the Pier 39 shopping area in San Francisco proved that people loved Debbie's cookies because they were waiting in lines which caused problems to neighboring business. That was a clear indication that there is demand for more stores which resulted with 70 stores in 1982. The pressure of expansion intensified development of innovative computer software which helped them to monitor stocks, plan daily production schedules, order materials automatically, easily communicate with headquarters, handle payroll and improve employee training. The software was so successful that Randy started subsidiary named Fields Software Group and started selling his artificial intelligence store management software. However they had a setback in 1988 when they closed 85 out of their 500 stores, and lost about $19 million which resulted as consequence of the bad relationship with the British investors who felt deceived. ...read more.

Middle

Mrs. Fields mistake was that she was unable to correctly answer the question how is the company going to support the growth because the debt was wrong answer. Debt is interest bearing first of all, which highly affects net income and more important, owner's investment in the case of such an expansion was better solution. In conducting feasibility analysis, it is crucial to address the question if some change in normal economic cycle occurs, how is that affecting the business in question and what a business can do in order to lessen that impact. Mrs. Fields failed to address this problem and continued to sell its cookies for one dollar per cookie, which given the economic recession in early 90's was very expensive. SWOT Analysis Strengths First, we should mention that the most important issue that adds to the success of Mrs. Fields is that she specialized in a job that she knew how to do it, based on a skill that she had - she knew how to make good cookies. Her idea of giving samples was a very innovative one, but it was the quickest way to attract customers and have immediate observation whether they like your product or not. Although free samples remained the cornerstone of her business, more and more companies are adopting actually this method of attracting customers and ensuring them about the quality of your products. Mrs. Fields is customer oriented and she wants to maintain the same quality as the one she was offering from the first moment. This is shown when she refused to replace higher cost raisin with lower cost ones but with lower quality. Moreover, she constantly puts attention on quality, as she states that her cookies should be always fresh or at most two hours out of the oven. The training sessions seem to be very useful as Mrs. Fields is not only teaching them her expertise, but also allowing them for their own development, as each manager was so well-prepared that they could recognize which cookies they have baked. ...read more.

Conclusion

Moreover in 2008 it announced preparing for chapter 11, meaning that due to the huge debt it had the company had to go bankruptcy. Through the chapter 11 protection Mrs. Field made the following agreements: to continue paying the salaries, wages to employees, to continue offering the same products and services to the company's partners and franchisees, continue pay suppliers and vendors for the products and services offered to the company. The company was said to emerge from chapter 11 within 45 days, and actually it emerged from bankruptcy on 28 October 2008. Today the stores Mrs. Fields are about 390 located in the United States and about 80 stores worldwide, having stores in Australia, Kuwait, UAE, Greece, Panama, Philippines, Saudi Arabia, Hong Kong, Jordan, Canada, Singapore. Recommendations For what we've seen in this case, we shall say that in the future, company should pay closer attention to market changes and act accordingly. For example, if there is a recession in the economy they should try to lower the prices, if their competitors are wining customers and "stealing" market share they should try another strategy and so on. Also, the very important is the way they are going to finance their operations. Evaluate the degree of risk of borrowing, and determine to what extent company is to be leveraged; and of course try to raise capital by owner's investments. Moreover, looking at the places where the company has stores it will be a good idea to try to expand even to more locations as Europe represents a very good direction for some future investments. Moreover, the managers should pay close attention the company's identity and try to keep the image through the years, which is mostly connected with the production of cookies. Once entered a certain market, and once having won a place in customer's mind and heart a company should try to maintain their reputation and not change it constantly by choosing different paths - producing different products and thus confusing the customers. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Kristens Cookie Company

    5 26 Minutes Self 8 Minutes Roommate 4 Minutes Total labor minutes 12 Two Dozen: Activity Number Activity Details Activity Precedence Total Time(taking into account activity precedence) 1 Washing, Mixing done by me - 6 Minutes 2 Spooning Tray 1 done my me 1 8 Minutes 3 Spooning Tray 2

  2. ITC - diversification strategy

    Over 93 per cent of ITC's Bhadrachalam mill's wood requirement in 2007-08 came from plantations initiated through ITC's forestry project undertaken by tribals and marginal farmers.12 8.1.7 Forward Integration into Education & Stationery products Leveraging its investments in paper and paperboard manufacturing, ITC got into stationery products in 2002.

  1. Analysis of the Apple Company and reasons for its success.

    In the end of 2005, Apple held 75% of the world market of digital music player 4. Supply chain management Apple retail strategy appears to be a key factor in its success. Today, Apple operates more than 250 retail stores in nine countries and an online store.

  2. Innovation For Business Success. It is possible to be innovative in both large ...

    Methods used in this study 5. Case study synopses 6. Findings: Principles common to systematically innovative companies 7. Managerial implications: How your organisation can drive forward on systematic innovation capability 8. Case studies 9. Bibliography 10. Appendix: project specification 3 | P a g e 1.

  1. General Management - organisation, leadership and theories.

    The interviews complement the survey information along several dimensions. Interviews allow us to ask open-ended questions, so the respondent's answers can dictate the direction of the interview (versus pre-chosen questions in the survey). Interviews also allow for give-and-take and clarifications, which are not possible with a traditional survey.

  2. WorldCom Business Failure

    of the company contribute to the failure of WorldCom, because senior management failed to develop a cooperative mentality within the different entities of WorldCom. The company closed several of MCI service centers to open 12 additional centers however, the additional centers were duplicates and ineffective.

  1. Nursery Business Plan. I intend to employ on 3 to 4 employees along ...

    they were not a suitable for the research I was looking for. From the people I questioned 45% said they would need a private nursery 5 days a week, so there is a demand for it. 55% of the people would prefer a better changing facilities and other snacks, along

  2. Study on Enager Industries Inc. Enager Industries Inc. is a relatively young company ...

    In the industry where the Industrial Division belongs, new investments are constantly needed to improve the quality of products in order to keep up with the competition, and to grow sales.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work