Bakery Risk Management Failure – UPDATED
Just reading the Telegraph article Groupon demand almost finishes cupcake-maker:
A businesswoman has accused Groupon of almost ruining her bakery company after she was forced to make 102,000 cupcakes at a loss when too many people took up her cut-price offer.
I was thinking about what went wrong. She underestimated the popularity, under priced an already cheap product, and rather than break a bad contract she chose to fulfil with what she herself called a second rate product – damaging her brand.
What she did right is contacting the newspapers and getting herself on Slashdot.
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