Sweet Bites Cakes Opportunity
Sweet Bites Cakes (a fictional company) is impressed with your midterm proposal. As a result, the owners of Sweet Bites Cakes want your recommendation on which of the following two equipment investment opportunities would be beneficial to the company.
Opportunity 1
A national fast-food chain has provided Sweet Bites Cakes with a request for a proposal to provide upscale individual mini-cakes packaged in clear plastic containers that use the chain’s label. The chain is willing to pay $1.50 per cake for a 3-year agreement guaranteed for 2.2 million cakes. There could be a possibility to extend the agreement depending on the success of the relationship. The cakes would be made using existing recipes and ingredients, but it would require a large investment in special packaging machinery of $500,000 with a 10-year life. Sweet Bites Cakes would expect to achieve a 15% net profit margin on the agreement.
Opportunity 2
Labeling is considered the primary bottleneck for the company. Some variety packs require especially heavy labor to assemble the different flavors, snap on the plastic lid, and affix the labels in the right place. Sweet Bites Cakes is also considering a new labeling machine (different from the machinery in Opportunity 1) with an estimated 5-year life. The machine would cost $500,000 and save an estimated $14,500 per month in labor cost. It is expected to increase throughput by $13,000 revenues per month with roughly 20% markup on incremental production costs (excluding new investment).
Assignment
Analyze each of these business opportunities from financial, strategic, and risk perspectives. Provide a four- to five-page summary with supporting documentation. Use the following guidelines when making your recommendations:
Assess the opportunities in terms of increased profitability and return on investment.
Comment on strategic, technical, and risk factors that are relevant to this decision.
What action do you recommend for the company?
Your summary should be written in the current APA Style for formatting and references. Include both a title page and reference list that includes at least two scholarly sources (your text can be one of the sources).
See rubric for specific grading criteria.
Due: Sunday, 11:59 p.m. (Pacific time)
Points: 200
Active Goals
ID Goal Goal Set Name Category
ILO.02:
Demonstrate effective written communication skills.
Institutional Learning Outcomes
ILO.02:
ILO.01:
Implement intellectual and practical problem solving skills through information assessment and critical thinking.
Institutional Learning Outcomes
ILO.01:
PLO 5
Apply knowledge of business law and ethics to employ effective decision-making.
MBA Program Learning Outcomes
Learning Outcomes
PLO 3
Apply and integrate procedures, processes, and information systems tools to effectively manage business finances and operations.
MBA Program Learning Outcomes
Learning Outcomes
PLO 1
Analyze and evaluate issues within a business organization and use data analytics and knowledge of business and management to formulate solutions.
MBA Program Learning Outcomes
Learning Outcomes
Rubric
BUS_505_DE – Week 8 Rubric: Sweet Bites Cakes Opportunity
BUS_505_DE – Week 8 Rubric: Sweet Bites Cakes Opportunity
Criteria Ratings Pts
This criterion is linked to a Learning OutcomeTopic and Introduction
20 to >17.8 pts
Accomplished
The introduction to the signature assignment is thoroughly and expertly presented with a clear and relevant focus. The central idea is clearly communicated with supporting evidence. The topic and introduction are narrowly and concisely focused, relaying the scope of the assignment.
17.8 to >14.4 pts
Satisfactory
The introduction to the signature assignment is thoroughly presented, but the key point of the assignment may be missing in certain areas. A focus is present but may be unclear. The paper includes a few thought-provoking ideas or unique insights into the topic. The central idea is clearly stated, but may have gaps in development.
14.4 to >11.8 pts
Approaches Expectations
An introduction to the signature assignment is present but lacks focus and connection to the course content. The topic is not narrow enough for the scope of the assignment and does not convey the intention of the assignment. The central idea is incomplete and needs additional development to match the scope of the assignment.
11.8 to >0 pts
Does Not Meet Expectations
The paper does not demonstrate an understanding of the concepts in the assignment. The introduction to the signature assignment lacks any exploration of the subject. The topic is unclear or too broad for the scope of the assignment.
20 pts
This criterion is linked to a Learning OutcomeSupporting Research and Evidence
70 to >62.3 pts
Accomplished
Two or more appropriate peer-reviewed sources are integrated throughout the paper. Sources are highly relevant to the topic and add greatly to the development of the research. Detailed, meaningful quotations and/or paraphrases aptly and accurately support the topic. All sources are from credible, scholarly, peer-reviewed materials. All information presented has been published in the last five years. The paper thoroughly and insightfully discusses profitability and return on investment, and financial, strategic, and risk perspectives when evaluating a business opportunity.
62.3 to >50.4 pts
Satisfactory
One or more appropriate peer-reviewed sources are used. Sources are mostly relevant to the topic, but some may be slightly less relevant to the development of the research. All information presented has been published in the last five years. Quotations and/or paraphrases are lacking or do not support several subtopics. The paper mostly discusses profitability and return on investment, and financial, strategic, and risk perspectives when evaluating a business opportunity.
50.4 to >41.3 pts
Approaches Expectations
The paper severely lacks supporting research. One or no appropriate peer-reviewed sources are used. Sources are not relevant to the topic. Sources may not be credible. Some of the information presented has not been published in the last five years. Quotations and/or paraphrases are lacking. The paper may not discuss profitability and return on investment, and financial, strategic, and risk perspectives when evaluating a business opportunity.
41.3 to >0 pts
Does Not Meet Expectations
The paper lacks research and credible support. No references are used, or they are highly irrelevant to the research. Presents a superficial or incomplete analysis with limited or no discussion of profitability and return on investment, and financial, strategic, and risk perspectives when evaluating a business opportunity.
70 pts
This criterion is linked to a Learning OutcomeOrganization and Cohesiveness
70 to >62.3 pts
Accomplished
Connections among subtopics and the main topic are clear without being repetitive or redundant. Concluding remarks demonstrate analysis and synthesis of ideas. Writing and integration of source materials are eloquent and skillful. Structure is aligned throughout with transitions that guide readers through a natural progression.
62.3 to >50.4 pts
Satisfactory
Connections among subtopics are missing or forced. The conclusion is unclear or may be somewhat disconnected from the topic. Writing and integration of source materials are awkward or confusing in some places. A logical progression of ideas and transitional devices is utilized.
50.4 to >41.3 pts
Approaches Expectations
Connections among subtopics are missing throughout. The conclusion is disconnected from the topic and introduction. Writing and integration of source materials are awkward or confusing in most places. Topic sentences may be missing, too general, or overly specific.
41.3 to >0 pts
Does Not Meet Expectations
There is no connection among subtopics throughout paper. The conclusion is disconnected from the topic so much that it impedes the meaning. Writing and cohesiveness negatively affects the readability of the paper.
70 pts
This criterion is linked to a Learning OutcomeMechanics
20 to >17.8 pts
Accomplished
The writing demonstrates a sophisticated clarity, conciseness, and correctness; includes thorough details and information; and is extremely well organized. Punctuation, spelling, and capitalization are all correct. There are minimal to no errors.
17.8 to >14.4 pts
Satisfactory
The writing is accomplished in terms of clarity and conciseness, sufficient details are included, and it is well organized, but it may contain a few errors. Punctuation, spelling, and capitalization are generally correct with not many errors.
14.4 to >11.8 pts
Approaches Expectations
The writing lacks clarity or conciseness, contains numerous errors, and lacks organization. Errors in punctuation, spelling, and capitalization detract from the readability of the paper.
11.8 to >0 pts
Does Not Meet Expectations
The writing is unfocused, rambling, or contains serious errors; lacks detail, relevant data, and information; and is poorly organized.
