Business Case

What are the dominant economic characteristics of the specialty baking market? Does it

appear that the industry's prospects for growth and attractive profits are good?

2. How strong are the competitive forces confronting Sift and other specialty bakers? Which one

of the five competitive forces is the strongest? Prepare a five-forces analysis to support your

answer.

3. What key factors will determine a company's success in the specialty baking market in the

next 3-5 years?

4. What is Sift Cupcake and Dessert Bar's strategy? Which of the five generic competitive

strategies discussed in Chapter 5 most closely fits the competitive approach that Sift is

taking? Explain.

5. Which of the company's resources and capabilities have the greatest competitive power? Are

Sift's resources and capabilities (1) competitively valuable, (2) rare, (3) difficult to copy, and

(4) not easily be trumped by the substitute resources of rival firms? How well do Sift's

resources and capabilities match up with the industry's key success factors?

6. What is your appraisal of Sift's financial performance based on the data in case Exhibit 9?

How well is the company doing financially? Use the financial ratios in the Appendix of the

text as a guide in preparing the calculations needed to arrive at an analysis-based answer to

your assessment of Sift's financial performance.

7. Which of the three strategic options under consideration by Sift's owners have the best fit

with its internal and external situations? What recommendations would you make to Andrea

and Jeff Ballus to strengthen the company's competitive position and future strategic and

financial performance?

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