Sambhavi Lakshminarayanan and Savita Hanspal
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…
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).