General Musing

blaze your trail

Bakery Risk Management Failure – UPDATED

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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.

Posted with WordPress for CrackBerry.

Written by Daniël W. Crompton (webhat)

November 22, 2011 at 6:50 pm

Posted in business, risk

Tagged with , ,

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