Profitable Brand for Hostess Brands Inc Assignment - 6

Profit competent Brand for Hostess Brands Inc - Assignment modellingThe Hostess brand Inc. plunging into bankruptcy is due to the dearly-won business model that they function to operate. The company haves a large network of buildings, trucks employees, Teamsters and the bakers union. After identifying the weakness of the Hostess Brands, Inc. Pepperidge farm Bread friendship would structure the business model and the brand would be profitable to the company. The shortcomings of Hostess participation are due to the expensive business model that it adopted. The model that Pepperidge farm Bread Company has will be able to sustain the brand. Buying the brand will not be a waste of resources but valley to the company. Pepperidge farm Bread Company business model does not allow the company to protest all the assets that in the bread making the industry, but only the crucial part is handled with the company. The company, however, monitors all the minutes that involve the sale of it s products. The company has the right to terminate the contr affect that it might have entered into with a electrical distributor or any business party. The company would not distribute the brand once acquired, but use independent distributors to do the work. This would ensure that even if the workers paralyze the normal distribution, the distribution would still go on as usual. The company has set some guidelines for the awarding of contracts to distributors to protect its interests. The company uses the strategy of the distributor salaried for the bread and earning from his sells. This ensures that the distributors work hard and sell the product. These will ensure that the distributors look for more(prenominal) customers to get more sells and earn more. These similarly reduce the companys losses compared to when it is the companys workers distributing the bread. The company has in addition reduced the cost of operation. The distributors are required to buy their own truck. Th is reduces the maintenance costs of the trucks. The strategy also ensures that only financially able distributors get the contracts to distribute the bread brand. Since the brand is popular within the population. The merchandise would be in mass to satisfy the market. However, the number of bakeries required to hand this will depend on factors as the route that the distributors are able to cover efficiently. The new establishment will only be set up in places that have a high market and the supply is insufficient to march the market. Research is conducted before setting up new bakeries. In the meantime, Pepperidge farm Bread Company will use the bakeries accrued with the brand as it continues to study the market. The Pepperidge farm Bread Company will hold in the sole right to the formulae of making the bread and packaging. The company will also maintain the proprietorship rights but release as the distribution rights of the bread. The routes that the Pepperidge farm Bread Compa ny own will go for bids. These routes will be sold to the highest able birder. The bidder will have to demonstrate that he can handle the route. The selling of the routes will help avoid unnecessary competition in the routes amongst the distributors. The act will also ensure that each distributor works hard in his designated route to achieve more sells.