Writing Executive Summaries

Susie's Cookies began as a small business in Cleveland, Ohio which has expanded to include 45 stores throughout the Midwest. Plans have already been instituted to expand sales nationwide, using the same "mall-concept" marketing strategy which has proven successful in the Midwest. Despite these plans, Susie's Cookies may be in danger of bankruptcy.

Susie's quadrupled its sales in the last two quarters, realizing a profit of $750,000 in the current year, an increase of $250,000 over the previous year, due to its increase in advertising. To realize equivalent sale figures nationwide, however, it is projected that advertising costs will increase by 200% for the first two years of the national expansions. Further, construction costs for the new stores are estimated to be 20 million dollars.

The result of increased advertising and construction costs will put a substantial debt burden on Susie's cookies, an estimated $750,00 to 1 million a year. Given that sales did not reach current levels in the Midwest until the 45 stores had been operating for five years, projected sales nationally will not cover expansion costs. As a result, Susie's Cookies is likely to show a loss of almost $2 million for at least the next five years.

Due to the high advertisement and development costs of national expansion. Susie's Cookies may not be able to continue doing business in the future. Therefore, I recommend that Mrs. Field's does not participate in the hostile takeover under consideration because the threat of competition will not be realized.