4

CASE

Sift Cupcake and Dessert Bar

ASSIGNMENT QUESTIONS
1. What are the dominant economic characteristics of the specialty baking market? Does it appear that the
industrys prospects for growth and attractive profits are good?
2. How strong are the competitive forces confronting Sift and other specialty bakers? Which one of the five
competitive forces is the strongest? Prepare a five-forces analysis to support your answer.
3. What key factors will determine a companys success in the specialty baking market in the next 3-5 years?
4. What is Sift Cupcake and Dessert Bars strategy? Which of the five generic competitive strategies discussed
in Chapter 5 most closely fits the competitive approach that Sift is taking? Explain.
5. Which of the companys resources and capabilities have the greatest competitive power? Are Sifts resources
and capabilities (1) competitively valuable, (2) rare, (3) difficult to copy, and (4) not easily be trumped by the
substitute resources of rival firms. How well do Sifts resources and capabilities match up with the industrys
key success factors?
6. What is your appraisal of Sifts financial performance based on the data in case Exhibit 9? How well is the
company doing financially? Use the financial ratios in the Appendix of the text as a guide in preparing the
calculations needed to arrive at an analysis-based answer to your assessment of Sifts financial performance.
7. Which of the three strategic options under consideration by Sifts owners have the best fit with its internal
and external situations? What recommendations would you make to Andrea and Jeff Ballus to strengthen the
companys competitive position and future strategic and financial performance?