Case Study Analysis and Solutions

Case ID: 211091

Abstract:
Case Solution & Analysis for Red Hen Baking Company by Richard S. Ruback, Royce Yudkoff
In 2007, the Red Hen Baking Company was deciding whether to move from its cramped and inefficient facility to a new facility. It had been in business about 8 years, and 2006 was the first year RHB realized a profit that was over $50,000. The added annual cost of the new location was about $58,000 and would require a $300,000 build-out. While the owner of Red Hen was excited about the possibility of a new, efficient bakery, he wondered if it was worth the added expense and risk.

Keywords:
Capital, Entrepreneurial finance, Entrepreneurship, Expansion, Finance, Risk management, Red Hen Baking Company Case Solution

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