Bama Pie Limited Company

Bama Pie, Limited is a political party that reinforced quality as a way of life. Bama Pie has been the single source provider of pies to McDonalds U.S. operations. By providing best pie products and never missing an order, Bama had been able to expand its core pie business by landing 50 percent of McDonalds oven- ascertainy, prebaked frozen biscuit needs. other(prenominal) major customer includes pizza pie Hut (for which Bama was producing approximately 25% of its net income stick requirements).Bama Pie produced much then 1 million pies per day from facilities in Tulsa, Oklahoma, for McDonalds. The History of Bama Pie dates to 1927 when Henry C. Marsh only decided to utilize the pie-baking talents of his wife, Cornelia Alabama Marshall, to translate employment for himself after a lengthy power point of being bulge out of work. The teleph integrityrs CEO directly was 38-year-old Paula Marshall-Chapman, who succeeded her father in 1985 as a chief executive officer of the com pany.i) Quality has always been the companys top precedentity.The company had instilled a total quality worry discipline in its approximately 600 employees through extensive training and educational programs offered through the in-house Bama Institute. Even fork truck operators have gotten involved in helping solve the inventory adjustments problem.ii) Long-term relationship with McDonalds has allowed Bama Pie to get along with McDonalds as one of its key suppliers.iii) Diversity of expertise Paula reshaped the management team signifi lavatorytly and assembled a highly professional mental faculty with an average age under 40. The team members are all well-educated, see and young (they can serve the company for a longer period of time).iv) BEBOPP In 1990, Bama instituted the Bama Employees Bonus on Profit Plan to provide premium incentives to all employees in the company. The plan was based on an annual payoff on gross sales objective that was established by Marshall-Chapman . The profit-sharing plan is a good way of getting employees involved.v) Management talents obtained by Paula she was the person adept to run the new computer system, and in that capacity she learned the cherish of training people and helping people solve problems. She was know as the Bamas problem solver.i) Relationship with McDonalds Although Bama has been McDonalds principal supplier of biscuits for 24 years, they had never established a contract.ii) Relatively pure company with limited capital Compare to Quaker Oats, Bama is a very small company with limited capital for expansion.iii) Limited product line Bama has a low variety of products.iv) Limited market for its products Its major customers are McDonalds, Pizza Hut, Wal-Mart and Sams Wholesale Clubs.v) Health Conscious sentiment Consumers now are more health conscious and some of them do read the nutrition fact label prior to consumption. Pecan pies contain a lot of calories and fat. As consumers become more health cons cious, the pecan pies sales may drop.i) Bama can expand its brand by creating new products much(prenominal) as hard cookies, crackers and power bars. The company still has manner for expansion in its under-utilized biscuit plant.ii) Buyout smaller companies that sell similar products.iii) peg Ventures with foreign local anaesthetic firms Bama can invite a foreign local firm to invest together to create a local business. They can share ownership, control and profits of the new company. .i) Lose business with McDonalds Since more than 70% of the companys business comes from McDonalds, if McDonalds finds another supplier, which provides cheaper pies and biscuits, Bama may lose its business with McDonalds.ii) Loss of Paula As it mentioned in the case, Paula is the one who set up the companys computer system and she is known to be the Bamas problem solver. With her management talent, she is also described as a unique chief executive by her employees. She is the one who recruits all t he professional staff together and she is the core of the company.iii) Competitors There are a lot of big and small competitors out there.vi) Health Conscious Thinking As I mentioned earlier, consumers now are more health conscious and some of them do read the nutrition fact label prior to consumption. Pecan pies contain a lot of calories and fat. As consumers become more health conscious, the pecan pies sales may drop.