Question

In: Accounting

Sweet Susanna’s is a local chain of bakeries in Austin, Texas. The chain has 18 locations throughout the city and its suburbs.

Sweet Susanna’s is a local chain of bakeries in Austin, Texas. The chain has 18 locations throughout the city and its suburbs. The management is considering opening a website to conduct e-commerce with customers. Describe any benefits that might be derived from this move.

 

Solutions

Expert Solution

A move to sales on the web site may not increase the geographic area from which Sweet Susanna’s draws customers. This is because the delivery area is not likely to change. However, it may experience increased sales due to the convenience of placing bakery orders online. It will also be likely to increase the accuracy of orders and reduce the costs of filling bakery orders. Sweet Susanna’s may also see a benefit to the marketing available on the web site, For examples, they could put pictures of baker is on “special” and perhaps increase the sales of promotional items. If these benefits do occur, the company will experience increased profits.


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