Research paper Example | Topics and Well Written Essays - 1250 words

Research Paper Example Petite Palate specialized in producing baby food, and targeted Northeast and Midwest markets of the United States. At the time the company started its operations, the market had become significantly competitive due to the number of players that had already established operations in prior years. On the same note, the enterprise was essentially a gourmet baby food company that only pursued this line of production, unlike other players who had mixed lines of production for diversity purposes (Lawrence, Lyons & Wallington, 2012). The dedication by the enterprise to gourmet baby food constrained its operational strategies in terms of diversity. The baby food industry and the markets in this industry were experiencing an ever growing trend in terms of operational business enterprises and baby food and baby formula varieties before and during the time Petite Palate started its operations. As a result, competition in the targeted markets was relatively stiff. Petite Palate had to compete aga inst Gerber Baby Food, Beech-Nut Baby Food, Enfamil, and Carnation Formula among others. Most importantly, capturing Gerber customers was a significant operational challenge for Petite Palate. This was due to Gerber’s size, market share in the industry, and consumer loyalty that it enjoyed in the U.S markets. Petite Palate Company’s business vision was to become one of the leading producers of frozen baby food. This followed the belief that such food was healthier for children, compared to other types of baby foods that were not frozen; like food contained in jars and pouches (Smith, 2007). This business vision lasted for four years, since the company started its operations in the year 2006, only to close four years later in October 2010. In the four-year period that the company operated, it remained within its belief of frozen baby food as opposed to shelf-stable formulations that its rival firms provided in the markets. Reasons for Failure Business enterprises fail d ue to myriad reasons, all of which revolve around their plans, business strategies, and overall operations. The most contributing factors to business failure are financial, market, or economic-based. Mismanagement of resources has also seen many businesses collapse on the verge of their success. Poor planning, overestimation of business potential, and poor implementation of business strategies are also contributing to business failure (Platt, 2009). In the context of Petite Palate Company, the setting of its operations could have foretold that failure was looming. The company set up its operations in a substantially competitive market, but then limited its production to baby food that could be frozen. As earlier mentioned, the company regarded frozen food as healthier that shelf-stable formulations. This was the belief of the company’s founders; Lisa Beels and Christine Naylor. This belief plunged the company into a limited operational capacity at a time when market growth wa s exacerbating. In the year 2007, Petite Palate Company’s products hit the Northeast and Midwest markets, selling in about 100 stores (Lawrence, Lyons & Wallington, 2012). The same year, the founders of the company prepared and presented Petite Palate’s business plan in a bid to mobilize investment funds and resources to the company from potential investors. The company hoped to raise an amount between two and a half and five