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Chapter 7. Transaction Analysis > Introduction to Case Study: Bagelz

Introduction to Case Study: Bagelz[1]

[1] This case is used to illustrate complex franchise decision-making, not to judge the adequacy of those decisions.

This case study tracks the development of a bagel franchise from its beginning as a company-owned system to its partnership with a well-known franchisor. This case covers six years. The case is jam packed with insight and lessons to apply to your own business. We recommend keeping the notion of transaction analysis in mind to notice which transactions comprise Bagelz’s competitive advantage and which party is better suited to execute which task. We revisit the case at its conclusion to highlight the points most relevant for gaining a complete understanding of the transaction analysis process and the links between task segmentation and execution, competitive advantage, and cost efficiencies. Although some of the dates and names of people and companies have been changed, the events are a true depiction of the vastly complicated human and organizational interactions.

Bagelz

Mike Bellobuono[2] knew he had a lot to consider. It was an exciting time for the bagel industry. Industry-wide sales had exploded, and his company, Bagelz, a Connecticut-based bagel chain, had established seven retail locations in just three years. There was tremendous opportunity for growth, but Mike knew that the company needed to achieve this growth quickly or risk an inability to compete against larger existing competitors.

[2] All quotes are by Mike Bellobuono unless otherwise noted.


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