Publications
Publications
- September 2024
- HBS Case Collection
Red Hen Baking Company (B)
By: Richard S. Ruback and Royce Yudkoff
Abstract
Pre-abstract: Instructors should consider the timing of making videos available to students, as they may reveal key case details.
Abstract: This (B) case supplement is designed for use by faculty only to support classroom instruction in conjunction with "Red Hen Baking Company" (HBSP Product #: 211091-PDF-ENG (99A)). 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. This (B) case supplement should not be assigned to students.
Abstract: This (B) case supplement is designed for use by faculty only to support classroom instruction in conjunction with "Red Hen Baking Company" (HBSP Product #: 211091-PDF-ENG (99A)). 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. This (B) case supplement should not be assigned to students.
Keywords
Entrepreneurship; Financial Strategy; Financial Management; Buildings and Facilities; Finance; Food; Risk Management; Risk and Uncertainty; Growth and Development Strategy; Food and Beverage Industry; United States; Vermont
Citation
Ruback, Richard S., and Royce Yudkoff. "Red Hen Baking Company (B)." Harvard Business School Multimedia/Video Supplement 225-710, September 2024.