Problems Regarding Amy’s Bread

Amy’s Bread is a small Bread producing industry which basically produces bread. This business organizations are facing some trouble at present which directly results drawbacks for the organization to expand. The problems they are facing at present and the problems they may face at the near future are analyzed below;

Limitation of spaces in the present location

The main problem that they are facing is lack of space. Basically because of their limited space they can not produce much as needed. As a small enterprise this is not so easy for them to arrange adequate location or space to increase their production. Though they are maintaining three different shifts but this is not that much enough now a days.

Has to pay higher wages to the employees

Adding another place to expand their business will require more employees and these employed will also have to be paid more.

Lower scale of production

She can not produce more to serve the market because of having issues regarding space. As the space is limited , so less raw materials and goods can be stored and less number of people can be employed too, so the production remain lower.

Not enough space in the office

As there space is limited, so their office is also bound to be small. As their office is also small so there is a high chance to the official activities be hampered.

Consumers have the higher chances to turnover

As they can not meet up the customer’s demand by producing more, so there is a high chance the customers to be moved away and select another company’s product to consume. Eventually they will loose consumers.

Slow-paying customers

May be their supply chain is week that is why they got paid later which badly affect their business.

Large scale of selling towards wholesalers

They supply more to the wholesalers than the retailers. As the profit is minimized in selling to the wholesalers rather than to the retailers ,they got paid less and thus having problems.

Lack of skilled employees

Lack of skilled and dedicated employees has also be seen in the case though they have tried to give a very good working condition towards the employees.

Getting loan is not easy as a bread production industry

Banks and other financial institutions are not providing that much loan to the businesses like their business, so this is also hard to expand business by taking loan.