The case talks about a small bakery shop which is well managed & controlled by Phil & Dale Stanley with 4-7 employees. The bakery is doing fairly well for the past five years & has been generating nominal amount of profits (McColl, et al 2001).
As the financial status of the bakery was improving, the owners thought of expanding their business & explore their competencies to the fullest (McColl, et al 2001). The major issue being faced by the Granary Bakery was that, where should the bakery expand its operations. There were two alternatives available with them, first was to explore their secret of success i.e. expand the business into home bread mix market while the second option available with them was to open a gourmet sandwich shop in the vacant space available to them just opposite their shop (McColl, et al 2001).
Phil & Dale Stanley were of the opinion that both the options available with them were profitable & had lot of scope of expansion in the years to come. They thought of expanding in only one of the markets as it would be profitable for the bakery (McColl, et al 2001).