Entrepreneurship and Business Development for Baker's Heart Company

This report discusses the new business concept of Baker's Heart Company, analysis of industry, market, organizational and financial feasibility, key components of the value chain and business model canvas, and how the business manages potential risks.

Entrepreneurship and
Business Development

Table of Content
s
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Discuss the new business concept that includes the key components of the market
offerings, target market, values, scale of the newly proposed business, location of the business.
3
Analysis of Industry, Market, Organizational and Financial feasibility......................................4
Discuss the key components of the value chain and business model canvas linking to the
proposed business........................................................................................................................8
Determine business models and concepts to evaluate how the business manage potential risks
...................................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is defined by turning available resources and creative ideas into new
business opportunities. These resources involved stakeholders, business finance, infrastructures
and raw materials for carrying the business activity. An entrepreneur comes up with creativity
and innovative decisions to start up the new business, Further, rightly managing all business
activities to facilitate growth of the business. Managing start up business requires assessing the
financial capabilities, stakeholders, analysis of environment, determining the market offerings,
evaluating structure of managing organizational functions, assessing the value chain of the
organisation, business model and everything to ensure success of the start-up business. The
startup business covered in this report is Baker’s Heart Company, which is the bakery based
out of UK operating in food industry. This report clearly talks about how the new business
startup manages and details out its business plan and concept to facilitate growth in the external
marketplace. In the context of Baker’s Heart Company this report reflects the business concept,
analysis of market, the components of value chain and business model canvas, the business
model and concept to valuate that how the business manages risk (Alvarez and Barney, 2020).
MAIN BODY
Discuss the new business concept that includes the key components of the market offerings,
target market, values, scale of the newly proposed business, location of the business
The business is a small scale start up with limited profit, sales and market share. The
company operates in food industry sector. Baker’s Heart Company is a business initiative in
order to deliver bakery products to its targeted prospects. The start-up business focusses on
bringing new concept of sustainability and healthy lifestyles of people. By scrutinizing the rising
health issues among people such as obesity, blood sugar and others, Baker’s Heart Company
brings up with the concept of delivering freshly baked with organic ingredients and purely vegan
products to its customers. Apart from that, business also facilitates measures of environmental
protection such as reducing the use of polythene, proper treatment of waste, preferring digital
payments, serving food in plates made from banana leaves. The products offered by the
association also includes home-made ice creams and natural coffee (Berglund, Bousfiha and
Mansoori, 2020). The target market set by the business includes low to middle income earning

group as the offerings delivered by the business is at affordable ranges. The business believes in
maintaining strong customer engagement and earning loyalty by delivering quality to its
customers. The business also uses different digital marketing platforms to enhance its online
presence as well brick and mortar stores. In order to manage business functioning, Baker’s Heart
Company deploys skilled human force in order to achieve productive human capital and
efficiency in the business functioning. The business is located in 24 Baker Street, London, UK.
“Baker’s Heart Company”
Menu
Victoria Sponge Cake.
The Victoria Sponge sandwich cake
Lemon Drizzle Cake
Chelsea Buns
Sticky Toffee Pudding
Bakewell Tarts
Yorkshire Pudding
Cornish Pasties
Analysis of Industry, Market, Organizational and Financial feasibility
In order to analyze the market, industry, organizational and financial feasibility, Pestle
analysis is supported that helps to determine that how different factors of internal and external
business environmental impacts the business performance. Pestle analysis have different factors
such as political, economic, social, technological, legal and environmental (Blundel, Lockett and
Wang, 2017). Further, Pestle analys is is conducted on Baker’s Heart Company is discussed as
follows:
Political factors

The government of UK delivers grants including financial and non-financial solutions to small
and medium businesses in UK such favourable government grants can be accessed by the startup
business in order to continue growth and financial stability of the business in the marketplace.
The governmental grants are great sources of financial stability to small and medium business in
UK, Baker’s Heart Company enjoy acquiring the financial and non-financial assistance of the
specific business ventures, these governmental grants help to hasten the financial stability of the
business as these are cost effective and reliable sources of business finances.
Other political factors such as Brexit have negatively impacted the business performance making
it higher cost of acquiring the raw materials and higher overall business cost makes it too
expensive for operating the business in UK (Bylund and McCaffrey, 2017).
Economic factors
With stability of economic condition in UK, it becomes an ideal place for operating start the
business, with easy availability of credit facilities and business finances from private and public
authorities supports Baker’s Heart Company to operate the business functioning in UK.
Moreover, that, the association finds the ideal prospects very easily as mostly people living in are
earning with stable financial positioning that further positively impacts the business. Baker’s
Heart Company an also acquire skilled candidates conveniently with large literacy rate, good
education system and income stability.
Social factors
With the rising demand of people living in UK wherein they ask for higher living standards,
quality lifestyles and rising health consciousness among people. These social factors become
favourable for Baker’s Heart Company to deliver its products and services to the
customers. Also, with the increasing consumer demand and so as substitute goods, Baker’s Heart
Company delivers differentiated products at exclusive prices which are not easily available with
other brands and non-brands (Chakraborty, Thompson and Yehoue, 2016).
Technological factors
UK is recognized as one of the fourth technologically advanced countries, wherein people living
in UK are becoming more tech savvy, Baker’s Heart Company adopt such policies that focuses

on bringing efficiency by adopting latest technologies such as customer relationship management
software in the business. Apart from that, the business also focuses on enhancing its online
presence by communicating with the customers via internet platforms. Other technologies used
by the business involves cloud based computing, artificial intelligence, augmented reality in
order to make use of latest software into business to enhance the business functioning and the
customer engagement. Baker’s Heart Company also uses digital market approaches in order to
deliver marketing objectives to the final prospects and performance metric tools to evaluate the
business performance and effectiveness of the offerings delivered to the final prospects
(Frederick, O'Connor and Kuratko, 2018).
Environmental factors
With the rising environmental concerns and issues, Baker’s Heart Company satisfies both
corporate social responsibility and legal adherence to governmental measures of practicing
environmental friendly business activities. Some measures carried by the business includes
recycling waste, proper waste disposal and management, reducing the use of plastics and so on.
These environmental friendly measures adopted by the business supports the business to acquire
strong market share and brand identity of the business in the external market place. Other
environmental approaches used by the business involves conducting green practices, serving the
customers in plates made from banana leaves, using renewable sources such as solar energy to
generate electricity helps the business to not only deliver attractive market offerings but also earn
customer reliability for the business.
Legal factors
Legal factors as such norms and legislations that is to be complied by businesses right from
incorporation to the further existence of the business. Baker’s Heart Company complies with all
such legal norms such as equality rights act, national minimum wages et cetera in order to
operate business functioning in the smooth and ethical manner. Baker’s Heart Company delivers
fair compensation, equality of rights in the workplace, carry timely audits, formulates financial
statements in order to reflects the transparency in the business activities (Kuratko and Morris,
2018).

SWOT Analysis to determine organizational performance by evaluating internal business factors
and identifying external business challenges and opportunities SWOT analysis discussed on
Baker’s Heart Company is as:
Strengths
Differentiated products
Delivering differentiated products is one of the strengths of the business wherein the business
offers organic, gluten free and 100% natural ingredients, homemade ice creams, natural coffee
brewing, without any artificial flavours, food colorings, no-added preservative and chemical
without compromising the taste of the food products and beverages that too at affordable prices
to the customers makes the market offerings differentiated in the external market place (Lyons
and Zhang, 2018).
Weaknesses
Financial stability
With unstable financial positing of the startup business makes the business unable to acquire
market growth and sustainability also that the business has not reach the maturity stage to build
strong financial positioning.
Threats
Competition
With rising competition in the marketplace where large business has already acquired the
positioning of market share and brand reputation, thus, it becomes difficult for small business
like Baker’s Heart Company to sustain in the competitive environment (Maritz and Donovan,
2015).
Opportunities
Online presence
With the increasing reliance of consumer over the internet platforms, Baker’s Heart Company
enhance its online presence in order to deliver the customers services via virtual platforms
irrespective of their location, wherein the customers’ needs to order food and beverages via

company website and the company will deliver it to the doorstep of the consumers. The business
also carries its market activities via digital platforms in order cover large market share at lower
cost.
Discuss the key components of the value chain and business model canvas linking to the
proposed business
In order to evaluate the value chain of the business, Porter value chain model is being
used to understand the how the business converts its input into output delivered to the customers.
Porter value chain is being divided into support and primary activities of the business; these are
discussed below in brief in the context of Baker’s Heart Company:
Primary Activities
Inbound logistics
Baker’s Heart Company maintain strong supplier relationship in order to ensure suffice
availability of raw materials to carry further business operations (Mayer, Siegel and Wright,
2018).
Operations
The business carries its operational activities by deploying chefs and other skilled employees
who are professional in order to deliver value to the customers.
Outbound logistics
For outbound logistics, the business uses brick and mortar store and online presence in order to
deliver customers products and services.
Marketing and sales
For carrying the marketing and sales activities the business uses digital platforms in order to
reach out large customers at limited time span and cost.
Services
The business maintains post-sales communication with the customers in order to evaluate the
feedbacks of the products and services delivered and identify the drawbacks and the weak points
to make necessary amendments (Morris, 2015).

Support activities
Procurement
In order to procure the raw materials, the association maintains relationship with vendors by
making right vendor selection decisions to avail quality raw materials and business resources at
best prices. In order to acquire fixed assets by the business, the association uses lease financing
as a method to acquire fixed assets at lease.
Human resource management
Baker’s Heart Company recruits skilled professionals and chefs in order to prepare tasty food,
experienced professionals to carry other business functioning pertaining to finance, operations,
marketing, sales in order to acquire talented human capital to conduct the business functioning in
the most productive and efficient manner.
Technological development
The association uses advanced technologies such as customer relationship management software
in order to establish a strong customer relationship which works by collecting important
customer details and frequently engaging with them to deliver exciting deals, discounts and other
marketing objectives to the customers (Olanrewaju and et.al., 2020).
Infrastructures
In order to carry accounting, administrative and other legal management, the association carries
all business activities by compliance of all legal proceedings and legislations for carrying on
business in UK.
Business model canvas is a tool that helps to determine all the key resources and activities that
the business conducts while starting with a new business ventures. The business model canvas in
the context of Baker’s Heart Company is discussed below in brief:
Customer segment
The association selects the customers with low to middle income earning prospects highly
conscious for health and well-being.
Value proposition

The association promises to deliver quality food products and beverages at affordable ranges in
addition to that the business also offers seasonal discounts and exciting deals on the food
products. The business delivers use fresh farm vegetables and other organic products to the
customers without using any toxic chemicals and food flavouring to deliver value to the
customers.
Channels
The association uses both online and brick and mortar store to deliver value to the customers.
The customers can easily access services irrespective of the location through online company
website and can also physically visit the brick and mortar store of the business.
Customer relationship
In order to maintain a strong customer relationship, the business uses CRM software in order to
store important customer information and build one-on-one communication with them. The
business also evaluates the post sales behaviour and feedbacks of the customers in order to make
necessary amendments and product diversification. Apart from that, the business also uses
platforms such as email in order to facilitate frequent interactions with the customers.
Revenue streams
The business focuses on acquiring revenue by market penetration and enhancing the market
share by delivering products and services at affordable prices
The business uses cost based pricing strategies, in order to cover the cost incurred for building
the final output and setting a price which is beneficial to both customers in business (Omorede,
Thorgren and Wincent, 2015).
Key activities
The business engages in key activities such as preparing desirable food and entertainment
activities to the customers. The business deploys professional chef for making best delicacies and
musicians for entertainment activities in the brick and mortar stores.
Key resources

Service is the key output delivered to the customers, thus, the business acquires highly skilled
employees with excellent communication skills in order to enhance customer experience. The
business acquires suffice funding for maintenance of brick and mortar stores and managing the
core business activities.
Cost structure
The business manages the cost structure by managing relationship with the suppliers, the
business does not wholly depend upon the suppliers rather it carries all the important activities
itself to lowers the dependence on the suppliers and intermediators that further reduces the cost
incurred for obtaining resources and raw materials required for the business activities. Apart
from that, the business also uses digital platforms by reducing the investment on advertisement
activities rather the business focus on social media platforms such as Instagram and Facebook to
reach large consumer prospects at minimum cost. The business uses its profit for maintaining
retained earnings and managing other business expenses such as offering compensation to the
employees, acquisition of raw materials and others (Shepherd and Patzelt, 2017).
Key partnership
The business partners with suppliers for acquisition of raw materials, dependence upon private
and public investors, shareholders to raise business finances in order to manage core business
functionalities and financial stability of the business.
Determine business models and concepts to evaluate how the business manage potential risks
RISK FACTORS IMPACT STRATEGIES
Financial capacity It is important that business
have stable financial
conditions in order to sustain
in the marketplace.
Insufficient financial capacity
might lead to business failure.
Baker’s Heart Company
formulates takes limited risk
and calculated risk before
making every investments
and evaluates the rate of
return to be expected from the
investments. Apart from that,

the business depends of
government grants, maintain
own reserves out of profit in
order to ensure that there is
suffice financial sources with
the business. Some
approaches used by the
business includes maintaining
deprecation fund, retained
earnings, reserve so that the
business is prepared to future
business uncertainty.
Data and privacy Privacy is the greatest
challenge to business now-a-
days, where everything is
going online, privacy also
becomes a threat for business.
With proper remedial
measures for maintaining
privacy, a business might face
loss of important business
data and even business
failure.
Baker’s Heart Company takes
different measures in order to
prevent the risk of privacy
threat in the business
activities. These data security
measures includes setting up
firewall in order to control the
traffic in the business and
identify threats, scheduling
backup is also one of the
important measures of data
security used by the business
wherein the business use
techniques of mirroring to
maintain the backups of the
business data virtually and
save the loss of business data
from harmful treats, other
measures used by the

business includes establishing
strong passwords, updating
and monitoring the
technologies, software, data
of the business in a frequent
basis to avoid any such
uncertainty of data loss.
Changing customer
preferences
With the growing population,
emerging technologies,
globalization there has been
emerging in the market
trends, which further
increases consumer demand.
Customer preferences and
demand keeps on changing
with increase in competition
and substitute products in the
market, thus, knowing the
exact market offerings of
what the customers are
looking for becomes an
integral part. It also includes
huge risk as when business
deliver products if it does not
match to the customer
preferences, business can face
losses of sales, profit, market
share.
Baker Heart Company invest
in research and development
in order to rightly understand
the changing market trends,
so that the business can make
required amendment in the
market offerings. The
business also makes
alternative in order to meet
the flexible changes of the
consumer demand; the
association uses approaches
of stocking raw material only
when there is suffice demand.
Apart from that, the business
also maintains suffice funds
for meeting the unexpected
fluctuations of demand
(Welter and Gartner, eds.,
2016).

CONCLUSION
In the light of above discussion, it can be said that the report clearly talks about how
entrepreneurship adds growth and stability to new business startup. An entrepreneur has to look
after different resources and factors that adds value to the business. For rightly framing business
strategies and to ensure business stability in the external marketplace, market analysis is
conducted which also play an important role in order to scrutinize and identify factors that
negatively or positively affects the business performance. The new business startup should
carefully determine business strategies pertaining to managing different functionalities such as
date-to-day operational activities, managing risk et cetera to ascertain determined business
objectives.

REFERENCES
Books and Journals
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Berglund, H., Bousfiha, M. and Mansoori, Y., 2020. Opportunities as artifacts and
entrepreneurship as design. Academy of Management Review. 45(4). pp.825-846.
Blundel, R., Lockett, N. and Wang, C., 2017. Exploring entrepreneurship. Sage.
Bylund, P. L. and McCaffrey, M., 2017. A theory of entrepreneurship and institutional
uncertainty. Journal of Business Venturing, 32(5), pp.461-475.
Chakraborty, S., Thompson, J. C. and Yehoue, E. B., 2016. The culture of
entrepreneurship. Journal of Economic Theory. 163. pp.288-317.
Frederick, H., O'Connor, A. and Kuratko, D. F., 2018. Entrepreneurship. Cengage AU.
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Lyons, E. and Zhang, L., 2018. Who does (not) benefit from entrepreneurship
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Maritz, A. and Donovan, J., 2015. Entrepreneurship and innovation. Education+ Training.
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of Economic Policy. 34(4). pp.517-539.
Morris, M. H., 2015. Entrepreneurship as experience. Wiley Encyclopedia of Management. pp.1-
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Olanrewaju, A. S. T. and et.al., 2020. Social media and entrepreneurship research: A literature
review. International Journal of Information Management. 50. pp.90-110.
Omorede, A., Thorgren, S. and Wincent, J., 2015. Entrepreneurship psychology: a
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Shepherd, D. A. and Patzelt, H., 2017. Trailblazing in entrepreneurship: Creating new paths for
understanding the field. Springer Nature.
Welter, F. and Gartner, W. B. eds., 2016. A research agenda for entrepreneurship and context.
Edward Elgar Publishing.