Business Studies: Case Studies Paper on Introduction to Business Administration

Problem Statement

Millie’s was a company whose foundations were based on a culture of growth through business expansion and sales volumes. This is considered as the primary force behind the successful rapid expansion of the company in three years from sales of $500,000 to $3 million. However, in spite of this rapid growth, the company lacked clear guidelines to manage the rapid expansion through product placement and quality. Instead of consolidating their growth and loyalty being accrued from the local product, the company neglected this and proceeded to become more innovative and introduce products that are more new. Therefore, at the tail end, the company found itself with a range of products that it was offering to the public, but without clear guidelines to manage the products’ production and quality. It is alleged that one of the primary reasons for the demise of the company was the production of a greasy chip that was of poor quality, unattractive, and unsavory to consumers.

Another problem that the company was experiencing was a lack of effective record keeping procedures, which can be evidenced by the lack of data by Miles regarding the company’s operations. This problem can be linked to the company’s lack of analysis of its sales volumes and profits, assets and liabilities. This problem resulted in poor profits been posted despite the company’s growing liabilities and debt portfolio. The company was also involved in product pricing strategies that were hurtful to the company. The company was operating at a cost that was 20% more than its competitors’ operational costs. However, despite this high costs, the company priced its products at a value almost similar to its competitors.