Sakara Life

13 Pages Posted: 16 Jan 2018 Last revised: 9 Apr 2018

See all articles by Rebecca Goldberg

Rebecca Goldberg

University of Virginia - Darden School of Business

Elliott N. Weiss

University of Virginia - Darden School of Business

Abstract

This case examines Sakara Life, a healthy-lifestyle company founded near the end of 2012 with a core business of preparing and delivering beautiful, healthy, premium meals, often (but not exclusively) on a subscription basis (organic meal delivery, or OMD). Kimberly Dunn, the head of strategy and operations at Sakara Life, was facing a number of strategic decisions, including whether to buy an automatic peeler/chopper and a commercial dishwasher, and whether to introduce a revenue-sharing program offering bonuses to all hourly employees based on monthly revenue and achieving quality targets. The decisions needed to be analyzed both strategically and operationally with a special focus on human resource issues.

Excerpt

UVA-OM-1585

Rev. Apr. 2, 2018

Sakara Life

Recommendations to the Board

Kimberly Dunn, Darden MBA '12 and head of strategy and operations at Sakara Life (Sakara), reviewed her approach before entering the boardroom. Sakara was a healthy-lifestyle company founded near the end of 2012 with a core business of preparing and delivering beautiful, healthy, premium meals, often (but not exclusively) on a subscription basis (organic meal delivery, or OMD). (See Figure 1 for Sakara's website splash page.) At first, founders Whitney Tingle, who had worked on Wall Street, and ex-model and nutritionist Danielle DuBoise, made meals in their kitchen and rode bikes to deliver them to clients. Dunn joined the management team in April 2015. In her two years managing a high-growth start-up, she knew that investment decisions were essential to get right, especially because investments were usually made with cash. At this time, Dunn was considering three investments: an automatic peeler/chopper, a commercial dishwasher, and a revenue-sharing program offering bonuses to all hourly employees based on monthly revenue and achieving quality targets. She decided that the company could afford one or two of the options, but probably not all three without potentially jeopardizing its ability to self-fund its marketing effort the following spring. Sakara had remained debt free and was hoping to retain that position.

Figure 1. Sakara sample web page.

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Keywords: service operations, service strategy, online businesses, meal delivery services, organic food

Suggested Citation

Goldberg, Rebecca and Weiss, Elliott N., Sakara Life. Darden Case No. UVA-OM-1585. Available at SSRN: https://ssrn.com/abstract=3101115

Rebecca Goldberg (Contact Author)

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Elliott N. Weiss

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/html/direc_detail.aspx?styleid=2&id=4375

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