Cupcakes-Palooza Case Study

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Chris and Pat Anderson, majority shareholders and founders of Cupcakes-Palooza (CP), is a privately held corporation located in Janesville, WI. CP’s office hours are Monday thru Friday 8:00 A.M. until 4:30 P.M. and bakery hours are 4:00 A.M. until 12:30 P.M. During bakery operations, CP produces and sells roughly 15,000 cupcakes weekly to selective grocery stores in the Janesville area.

Despite a weak economy, sells have been steady and Chris and Pat have decided to open a second location 45 miles away in Monroe, WI. Their business plan for the new store will be similar to their current operation. The new store will have the same office and bakery hours just like the Janesville location. In addition, they plan to have the same amount of staffing in the new location, nine bakers, an accountant, an office manager, and a salesperson.

CP has two concerns, first, establishing a stronger organizational system that will unite both locations, and second, how to effectively manage a growing number of employees. Because of their lack of experience in operating multiple stores, CP has retained Management Improvement Consultants, LLC (MIC), to develop and purpose a new organizational and control system for their newly expanded business.


In order to develop a successful organizational and control system for CP, we, MIC, had to
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Secondly, CP should incorporate a more flexible environment using an organic structure while incorporating a horizontal approach that will allow them to delegate authority and responsibility. The organic structure would require CP to “depend heavily on an informal structure of employee networks. Astute managers are keenly aware of these interactions, and they encourage employees to work more as teammates than as subordinates who take orders from the boss”
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