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Bailey’s Fudge and Fine Gifts Company’s Challenges Case Study

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Updated: May 28th, 2021

Despite being a small firm in Quincy, Bailey’s Fudge and Fine Gifts has managed to produce and market several fudge flavors to many customers. It has also managed to win a contract to market its goods in several Wal-Mart stores in Illinois. However, the business is facing predicaments such as power distribution systems, personal responsibilities, and family problems. This paper analyzes the issues facing this small company and proposes evidence-based approaches to improve performance.

Bailey’s SWOT Analysis


  • Strong brand reputation. Bailey’s Fudge and Fine Gifts is currently admired by many customers because of its superior products such as homemade fudge. Such goods are marketed in different Wal-Mart outlets.
  • Competent workforce. Ruth has always been dedicated in an attempt to support the company’s performance. Her family members have been supportive within the past few years.
  • Appropriate business model. Currently, the firm has a superior model whereby products are marketed locally and in different outlets. The small number of workers minimizes operational expenses.


  • Reduced cooperation. The presented case reveals that Ruth completes most of the managerial and baking processes at this firm. This means that her partners do not support most of the targeted goals.
  • Lack of adequate resources. Bailey’s might be unable to maximize its supplies to Wal-Mart. This means that advanced equipment must be purchased to meet this demand.
  • Ineffective marketing approach. The company is finding it hard to expand its sales and attract more customers. This is the case because the existing word-of-mouth approach has been ineffective and the business owners do not intend to spend a lot of money.
  • Lack of skilled personnel. The case study indicates that different Wal-Mart stores allow sampling of different products distributed by Bailey’s. Unfortunately, the firm has been unable to hire or identify skilled persons who can support the company’s business model.


  • Availability of outlet chains. The successful collaboration between Bailey’s and Wal-Mart indicates that the firm has the potential to come up with more products. This approach can be considered to partner with new retailers and maximize the firm’s profitability.
  • Changing consumer expectations. As more people continue to use social media networks, the demand for different products marketed by Bailey’s will increase. This means that the leaders can embrace the developments to improve performance.
  • Desirable business environment. The information presented in this case study shows clearly that Bailey’s is operating in a reliable environment. This is true because it has established partnerships with companies such as Wal-Mart.
  • Economic developments. The current economic growth rate experienced in the country is making it easier for many people to purchase a wide range of goods and services. This kind of change has the potential to support the firm’s business model and eventually make it profitable.


  • Family challenges. Ruth has been spending most of her time maintaining the performance of this company and address emerging managerial problems. Different family members have been unsupportive and incapable of presenting evidence-based ideas to take Bailey’s to the next level.
  • Competition. Many players in this industry are focusing on the same customer segments and markets. They are also ready to produce and market similar offerings.
  • Seasonal products. The company’s leading product is homemade fudge. However, it is seasonal and capable of affecting profitability levels.
  • Strict requirements. Notably, Bailey’s has encountered numerous challenges before having its partnership with Wal-Mart approved. This kind of challenge shows that the company might be unable to increase the major products marketed using different retailers.

Issues to Address: Rationale

From the above SWOT analysis, there are critical issues that must be taken seriously if Bailey’s is to achieve its business objectives. To begin with, the issue of family constraints has the potential to disorient this firm’s performance. The reason for this argument is because Ruth has been the one addressing the challenges facing Bailey. She has been forced to make crucial decisions without the help of her family members. Some of them believe that the company should be sold in an attempt to deal with the existing problems. Any decision or strategy aimed at addressing this challenge will transform the situation and ensure that Bailey’s remains competitive.

The second concern is that of marketing. As revealed in the presented case, many individuals are unaware of the existence of this company and its superior products. This gap has resulted in a situation whereby Bailey’s is unable to maximize its profits. The leaders at this firm should make superior decisions and allocate adequate funds to advertise and inform more potential buyers about every product. This strategy will attract different customers and eventually maximize performance.

Finally, the changes encountered in the business environment must be taken seriously than ever before. The reason for this kind of argument is that most of the challenges facing Bailey’s are linked to this issue. For instance, the requirements outlined by suppliers such as Wal-Mart are informed by consumer needs and government regulations. Similarly, the emergence of competing brands is informed by such developments. The company should, therefore, monitor these changes and revise its business model to achieve its aims.

Most Appropriate Strategy: Rationale and Limitations

The above analysis has revealed that Bailey’s is facing numerous challenges such as family problems, strained marketing processes, and changes in the business environment. These issues have forced the owners to focus on various decisions and options that can support Bailey’s future performance. Using this kind of information, it becomes quite clear that the most appropriate strategy is for the company to maintain its brand name for every product. This means that fudge will only be marketed in specific Wal-Mart stores that are outside the firm’s local market. This model will create the best environment for the leaders at the company to restructure and strategize the best way forward. This approach will also result in superior action plans that can improve performance.

This kind of model is recommendable since it will make it easier for Ruth to maintain the company’s image and profile. She will also go further to design a superior distribution strategy and implement adequate marketing approaches that resonate with the emerging needs of local customers. Additionally, the company will come up with a new approach for mass marketing fudge to more customers in different markets or regions. This model will also make it easier for the leaders to address internal challenges that have been facing the company. The strategy will result in improved performance and sales, thereby reducing the challenge of competition in Quincy. More customers will be informed about the major products marketed by Bailey’s. When different Wal-Mart stores operating outside the local market are considered, the levels of profitability and sales will increase significantly. The company’s leaders will have enough time to focus on emerging issues that might either promote (or disorient) performance and address them accordingly.

On the other hand, this suggestion has the potential to catalyze specific bottlenecks and problems. The situation described in this case study reveals that Bailey’s lacks a reliable distributor within the local market. This means that the company might not be in a position to deliver its products to different customers with its geographic area. Additionally, many people are unaware of the existence of the quality products associated with this company. These issues must, therefore, be addressed before implementing this strategy. Consequently, the company will have to incur numerous expenses, identify new partners, and revisit its model. The execution of the approach will consume a lot of time and eventually affect performance. Bailey’s might be forced to incur extra expenses to transport or supply different products to Wal-Mart stores operating outside its local market. This is the case because the firm has only been delivering products with 120 miles. These issues must, therefore, be taken into consideration to come up with the best decision.

In conclusion, the above discussion has indicated that business management is a process that requires patience, selflessness, and dedication. The existence of domestic wrangles can disorient performance and profitability. Ruth must be keen to reexamine every issue affecting the company and make evidence-based decisions. Since Bailey’s has remained successful within the past few years, the existing opportunities should be analyzed to inform evidence-based measures to address every threat and put the company on the right path towards success. The revision and improvement of the current business model will eventually make Bailey’s competitive and profitable.

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IvyPanda. (2021, May 28). Bailey’s Fudge and Fine Gifts Company's Challenges. Retrieved from https://ivypanda.com/essays/baileys-fudge-and-fine-gifts-companys-challenges/

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"Bailey’s Fudge and Fine Gifts Company's Challenges." IvyPanda, 28 May 2021, ivypanda.com/essays/baileys-fudge-and-fine-gifts-companys-challenges/.

1. IvyPanda. "Bailey’s Fudge and Fine Gifts Company's Challenges." May 28, 2021. https://ivypanda.com/essays/baileys-fudge-and-fine-gifts-companys-challenges/.


IvyPanda. "Bailey’s Fudge and Fine Gifts Company's Challenges." May 28, 2021. https://ivypanda.com/essays/baileys-fudge-and-fine-gifts-companys-challenges/.


IvyPanda. 2021. "Bailey’s Fudge and Fine Gifts Company's Challenges." May 28, 2021. https://ivypanda.com/essays/baileys-fudge-and-fine-gifts-companys-challenges/.


IvyPanda. (2021) 'Bailey’s Fudge and Fine Gifts Company's Challenges'. 28 May.

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