Bama Pie Limited Company

Bama Pie, Limited is a fraternity that reinforced quality as a way of life. Bama Pie has been the single source supplier of pies to McDonalds U.S. operations. By providing top-quality pie products and never missing an order, Bama had been commensurate to expand its core pie business by landing 50 percent of McDonalds oven- postulatey, prebaked frozen cooky needs. Another major customer includes Pizza Hut (for which Bama was producing approximately 25% of its bread stick requirements).Bama Pie produced much than then 1 million pies per day from facilities in Tulsa, Oklahoma, for McDonalds. The History of Bama Pie dates to 1927 when Henry C. Marshall decided to go for the pie-baking talents of his wife, Cornelia Alabama Marshall, to provide employment for himself after a lengthy period of being out of work. The companys CEO now was 38-year-old Paula Marshall-Chapman, who succeeded her father in 1985 as a chief executive policeman of the company.i) Quality has always been the comp anys top priority.The company had instilled a total quality centering discipline in its approximately 600 employees through extensive training and educational programs offered through the in-house Bama Institute. Even genitals truck operators have gotten involved in helping solve the inventory adjustments occupation.ii) Long-term relationship with McDonalds has al measlyed Bama Pie to grow along with McDonalds as unitary of its key suppliers.iii) Diversity of expertise Paula reshaped the management team significantly and assembled a highly professional staff with an average age under 40. The team members atomic number 18 all well-educated, experienced 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 bonus incentives to all employees in the company. The plan was base on an annual return on 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 trained to run the newly figurer system, and in that capacity she learned the value of training people and helping people solve problems. She was cognise 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 small 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 Thinking 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 fetch more health conscious, the pecan pies sales whitethorn drop.i) Bama can expand its brand by creating new products such as hard cookies, crackers and power bars. The company still has room for expansion in its under-utilized biscuit plant.ii) Buyout smaller companies that sell similar products.iii) Joint Ventures with foreign local firms Bama can invite a foreign local firm to invest together to create a local business. They can partake in 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 menti unmatchabled 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 the professional staff together and she is the core of the company.iii) Competitors There are a lot of too large 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.