Cupcakes by Lizbeth: flash in the baking pan or here to stay

Abstract

Synopsis

Cupcakes by Lizbeth (CBL) was a “gourmet” cupcake‐focussed retail store chain founded by a married couple. Eight years after opening, CBL used the relatively uncommon process of a “reverse merger” to become publicly traded. At that time, it had seemed as if CBL was on track to be the largest among cupcake focused businesses. However, financial setbacks as reported by the company and change in top management gave reason for pause and closer examination. Did the CBL business model have staying power or did there need to be a serious reconsideration of the company's strategic choices?

Research methodology

This case was prepared from secondary sources.

Relevant courses and levels

This case is appropriate for courses in strategy and management at the undergraduate level.

Theoretical basis

Competitive positioning, competitor analysis, operations strategy, SWOT analysis, planning business strategy, business expansion (franchising vs company owned).

Citation

Lakshminarayanan, S. and Hanspal, S. (2014), "Cupcakes by Lizbeth: flash in the baking pan or here to stay", , Vol. 10 No. 2, pp. 145-155. https://doi.org/10.1108/TCJ-02-2014-0016