Monday, February 6, 2012

Nothing Bundt Cakes in relation to supply & demand

Nothing Bundt Cakes is becoming a popular cake chain throughout various parts of the United States. With its moist cake and unique concept, it is no surprise consumers enjoy walking into a store and quickly become returning customers.
Supply and demand is an important thing in any business if they want to continue being successful. However, supply and demand is a delicate balance and many factors can affect it. Consumer demand is important because if demand changes it may affect the supply and overall sales negatively. Nothing Bundt Cakes strives to continually develop strong, friendly customer relationships that allows the customer to enjoy walking into any store and enjoying their product, bundt cake. If the economy continues to worsen, Nothing Bundt Cakes could face a loss in consumers and therefore causing a chain of struggling Americans starting with the consumer up through the employees and operators of the corporate offices. Another factor that affects supply and demand greatly is future expectations. Since Nothing Bundt Cakes is a cake shop, they mainly focus around holidays so they can market appropriately and gain spikes in profit around those times. Without demand for these holidays and special occasions, Nothing Bundt Cakes may not survive.
These are only two of the concepts we covered in relation to how supply and demand could be affected. Obviously they are two important factors in any business but these two especially to Nothing Bundt Cakes.

2 comments:

Peyton Moore said...

Does Nothing Bundt Cakes rely on holidays to make income for the rest of the year? I know many retail businesses depend on certain months to bring them enough income to survive the slower months. Are they the same way, or are they usually always busy because its the new cool cake shop? Also, do you think as more of these specialty bakeries grow in popularity ( i.e. Sprinkle Cupcakes,..) do you think Nothing Bundt Cake will struggle while they have to deal with more competition?

Erin said...

All small businesses rely on demand from consumers. With our economic times small specialty businesses will most likely struggle without an increase in demand. Nothing Bundt Cakes has done really well with keeping their costumers happy. It is important for small businesses to spend extra on better quality resources in order to maintain customer satisfaction. Do you believe it is important to sacrifice profits in order to get better quality product?