Tasty Baking Company

Summary/overview

Tasty baking company was established/incorporated in Feb. 25 1914 in Pennsylvania by Herbert C. Morris and Philip J. Bour. By supplying freshly baked cakes the company grew rapidly, exceeding 1million sales by 1918

Company/ organizational position

Goals

• Increase shareholders value through leveraging the Tastykake brand.

• Increase sales through companies core routs, new intuitive and strategic partnership

• Finding partners to larger direct store delivery system

• Be more customer diverse organization to deliver what customer wants

Mission

Commitment to shareholders, to make the best out of knowledge and expertise and make better sweet goods than anyone else.

Objective

To use the expertise gained in mass merchandise market to enter in store bakery market and which requires only little investment of resources.

Past and current strategies

Corporate

Tasty baking company has entered in partnership with Kroger stores one of the largest grocery chains to distribute Tastykake which gave Tastykake brand legitimacy and established distribution foothold in new territories.

Tasty baking company also joined up with Merita bakery division of interstate bakeries corporation to sell Tastykake cakes and pies in Florida and Georgia

Tasty baking company has also got in distribution agreement with Frito-Lay but due to incompatible delivery schedule agreement was terminated eventually.

At same time tasty baking company has made marketing agreement with 500 Wawa convenience stores.

Business

Tasty baking company has implemented business strategies to meet future challenges, upgrade and enhance existing facilities.

Societal environment

Intensity of rivalry

Tasty baking company consider as “everything….that you might consume as a snack” as competition. Competition also includes regional or local bakeries. Main competitors were interstate bakeries, McKee, Entenmanns. In US market tasty baking company takes 5% of market so the competition is intense.

Threats of new entrants

Although the snack cake market is highly competitive 21% of the market is taken by other regional or local bakeries. Because the nature of the snack products due to perish ability of the sweet goods they go stale quickly so usually cannot be shipped over long distances. This makes the economy of scale limited which then provides additional opportunities for regional and local bakeries.

Substitute products or services

There are few companies that provide substitute products like interstate bakeries corporation which has also acquired continental baking company which was the nation’s largest baker.

Power of supplies

Tasting baking company has made numerous strategic alliances for distribution channels as well as ingredients suppliers.

Power of customers/distributors

Tasty baking products are available in all 47 states which are sold by primarily by 487 independent owners/operators and approximately by 30000 retail outlets in six state regions. Tasty baking company distributes their products through strategic alliances with other companies. Te main distribution is through supermarkets 55% although the remaining 40% came from convenience stores.

Conclusion about overall competitive nature f the industry

Snack cakes is very competitive industry because