New Venture Creation
Mike Bellobuono is one of the managers who run the company Bagelz, a Connecticut based bagel chain that is originally owned by Joe Amodio and Wes Becher. It was during 1991 that Mike and his college friend; Jamie Whalen joined the company by establishing partnership with Joe and Wes. The team manages the whole company including its seven stores in Connecticut with Joe as the President, Wes as the Vice President, Jamie as the Territory Development Manager and Mike as Director of Operations (Timmons 2007).
For several years, Bagelz has proven its name and captured the taste of people in Connecticut through its delicious products and efficient services. This is due to the great skills of its master bagel maker, Irving Stearns. Irv’s capability to make new flavors of Bagels and the management’s effective and flexible decision making made the business profitable. During 1993, Bagelz has gained over $ 83, 000 worth of net income – a proof of the company’s good performance (Timmons 2007).
The excellent business performance of Bagelz captured the attention of Fred DeLuca, founder of Subway, a multi million dollar sandwich franchise. Fred suggested franchise for Bagelz and even offered financing. He said that through franchising, Bagelz will be able to expand its business faster though; certain legal procedures are necessary (Timmons 2007). As bagel industry continue to grow and as more and more people become health conscious causing a high percentage of bagel consumption, so as the level of competition among bagel makers like Bagelz, Bruegger’s Bagels and Manhattan Bagel.
According to news, Bruegger’s Bagel, one of the 50 fastest growing restaurants is planning to expand its business throughout Europe (Timmons 2007). The idea of franchising as a means to expand attracts Mike and his company but they also have doubts regarding the hassles and problems that can occur. They want to consider whether to continue expanding their business in Connecticut despite the growing competition or accept Fred’s offer and face the possible problems that lie ahead (Timmons 2007).
References: Timmons, J. and Spinelli S. (2007) New Venture Creation. Mc Graw Hill Professional.Sample Essay of Essayontime.com