Bakery Business Report 2022

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Business
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Business
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Contents
Name of business.............................................................................................................................3
Form of business ownership selected..............................................................................................3
Mission............................................................................................................................................4
Product features and benefits...........................................................................................................5
Product differentiation for the new bakery......................................................................................5
Organizational chart.........................................................................................................................6
Corporate culture and incentives.....................................................................................................8
Marketing Mix...............................................................................................................................10
SWOT Analysis.............................................................................................................................13
References......................................................................................................................................17
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Name of business
The business is named after “Manelatica” that will deal in mostly in gluten free products. The
report will discuss the process of establishment of new bakery house, its mission, and its form of
business in which it will be owned. Further, it will carry a discussion on product differentiation,
effective organizational chart, corporate culture, and its relative incentive. Further, it will brings
out a discussion on product effectiveness and efficiency on the basis of SWOT analysis. The
business will sell gluten free cakes where the breads do not contain wheat, dairy products, fillers,
soy, natural food, egg and corn (Bohari, Hin, & Fuad, 2017). This business provides not only the
gluten free food but also allergy free food in a gluten free environment with mouthwatering
muffins. It is important to measure the market structure and size of the market. With the
improvement in GDP of the country, the revenue of the baking industry has reached to $30
billion by 3000 commercial bakeries, and remaining are small bakery retailer. Further, it will
discuss its scope of marketing mix through four important elements such as product, price, place
and promotion. These elements will help the business (Ahmady, Mehrpour, & Nikooravesh,
2016). The organization to identify the target market, segmentation, and their awareness
regarding the change in the consumer identification towards the gluten free items and products
that has affected the food industry and the product content as a whole. It is seen that nearly 1
percent of the population has been analyzed with coeliac disease, an appropriate proportion of
people that is gluten free, which is quite healthier, fashionable and it also cuts the consumption
of products containing gluten (Ahmady, Mehrpour, & Nikooravesh, 2016).
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Form of business ownership selected
Although, there are several types and forms of business ownership through which a business can
be operated. Majority of small business are ran by the sole proprietorship. These type of firms
are owned by single person who takes all the day to day responsibilities to run the business. It is
one of the easiest way to manage and own business (Bohari, Hin, & Fuad, 2017). The bakery
business will be operated under the system of sole proprietary but it will have the hierarchy of
people from top management to middle level to cooks, and the workers. Although, the
partnership business, corporate business and company base is quite important (Ahmady,
Mehrpour, & Nikooravesh, 2016).
Mission
The main aim of the bakery business is to meet and accomplish the needs of customers and the
potential customers in cities where the company has its outlets. The main aim is just like a
myriad of bakery organization that is to maximize profits for which human resources will work
for tirelessly to foresee the accomplishment of goals (Bohari, Hin, & Fuad, 2017). The
organization believes that like other brands in city and all over the world having the products in
faces of the people that is one of the thing, which motivates them to buy breads and snacks (Yin,
2017). In order to achieve the organizational goals and huge profits, it has to achieve some
marketing goals such as to enhance different brands of the breads to be numerous, availability of
breads and pastries in all the retail outlets, to sell 50 pieces of gluten cake in a day and increase it
with a certain span of time and increase all the related client base by 25 percent in first year then
further, it will increase by 50 percent in next 3 to 4 years (Yin, 2017). The company also aims to
open more than 10 outlets in upcoming two years. From the marketing endeavors-
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A company aims to achieve sustainable growth at the pace of 20 percent in the sales growth on
the annual basis. The company intends to attract consumers (Yin, 2017).
Product features and benefits.
One of the most important feature of gluten free cakes and other products is that it can be offered
to the target market that includes health-conscious folks, teenagers, household folks, aspiring
entrepreneurs, corporate companies, shopping malls, celebrities, and office places (Bohari, Hin,
& Fuad, 2017).
Product differentiation for the new bakery
It is true that in today’s competitive market, it is essential to differentiate the product in order to
bring the growth. In the recent time, customers are getting health freak that pushes the company
toward bringing healthy products. Gluten free cakes will prove to be helpful in order to bring the
success in the new bakery (Haß, Müller, & Vergauwe, 2015). By offering the number of gluten
free products from bread to the muffins and carrot cake, it is easy to tap the market. The growing
preference of the people toward the healthier alternatives such as offering desserts, gluten free
products to the markets is also one such mean to differentiate the business from other
competitors (Sharma, Bowman, Karan, & Singh, 2016). Today, sophisticated customers want to
seek the maximum nutrition in the food. By keeping this in mind, it will provide the more fiber
by taking care of the balance diet of people. In order to target the huge number of customers in
the market, it is quite significant to provide the wide variety of products. There are different
kinds of customers who have different preferences (Ahmady, Mehrpour, & Nikooravesh, 2016).
Therefore, in order to attract the customers, it will ensure the different variety of products such as
cream, chocolate, fruit filling in order to create the different style of cakes. Several customers
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also come for their holidays in Singapore. Therefore, it will add the other countries preference
also by baking those cakes. As per the different needs of the customers, it is essential to make the
cakes. If customers will be get satisfied with the quality and services of the bakery, they will also
insist and encourage their colleagues to definitely avail the services of bakery (Swarnakar, &
Vinodh, 2016). It will help in increasing the customer base. As a result, it tends to achieve the
higher chances of growth in other countries too. If demand of the product is increased, it will not
face too much problem in expanding its wings to other emerging economies (Porter &
Heppelmann, 2017).
Other than the differentiation in product, it will also ensure the differences in quality of services.
A better customer services attracts the people to again avail the services of the same. Therefore,
training will be provided to the employees so that they will keep their customers first always
(Swarnakar, & Vinodh, 2016). By providing the preferences and respect to customers, they feel
delighted to take the services. In the recent time several innovative ideas will also be attached
with the new business. For example- it will encourage the people by putting the cards into the
bowl. Afterwards, it will announce the lucky winner each week. These kinds of activities also
distinguish the product from other competitors existing in the market (Dhar, 2015).
Organizational chart
Organization structure of business
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(Source: Guiso, Sapienza, & Zingales, 2015b)
In the organization structure, it has used the simple form so that very member will come to know
whom they are accountable. Executives are at the top. They will make the policies for the
organization. It is therefore essential to formulate such policies that will be accepted by each
member. Employees will also be given the sake in some of polices so that they will provide the
better output to the organization (Guiso, Sapienza, & Zingales, 2015b). The opinions and ideas
of the employees will be given due consideration. After ensuring the proper research, the
important ideas and opinion will be included in the structure of the organization (Huguenin,
2018). Afterwards, senior manager come at the organization structure. They are responsible for
bringing out the policies in actions. Afterward the proper analysis of each policy, it will proceed
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the things that is required to be follow by middle manager (Council, 2017). It is significant to set
put the clear expectation and responsibility with the middle managers because they work closely
with the workers. If they will not be aware about the rules and procedures, it will not be easy for
them to pass out the policies further. Middle management on the third level of organization
structure are the leaders for the subordinates. They plan as per the policies of the company and
the objectives set by the top management. They will also discuss each information from the top
level management to the lower level management. Due to this, they assist the subordinates in the
improvement of performance. Middle level manager will also communicate upward by offering
the feedbacks and suggestion to the top managers. It is true that subordinates usually do not have
the access directly with the top level management. Therefore, middle level manager will assist
them in bringing theirs valuable opinions and ideas to the top level managements. At the end,
workers come at the end who carry out the major functioning of the organization. They are the
people who are responsible for bringing the best for organization. Due to this, it will keep the
workers motivated so that they will work harder and think positive for their organization. It will
help them in work with the more efforts (Mukhopadhyay & Ye, 2016).
Corporate culture and incentives
In order to grow in the market, it is essential to create the innovative culture. It will bring the
culture form power not from the leadership. Employees will be given the chance to participate in
the decision making (Quinn, 2018). This will ensure the employees to work with more
productivity when they are given the chance to come up with their own ideas and opinions. It is
also essential to include their opinions and ideas in the business. It will also establish the
common focus. It will create the clear vision, mission and value statement. It will come from the
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voice of the customers. It will ensure the five attributes in the company culture (Shahzadi, Javed,
Pirzada, Nasreen, Khanam, 2014). Firstly, it is essential to encourage the teams to be empowered
and self reliant to make their own decisions. Organizations that are providing decision making
power are more successful in today’s time. Besides this, it will also provide the essential projects
and assignments to the team members (Tafesse, & Skallerud, 2017). Teams with the proper
ability and talent are able to produce better results. It will also provide the support to team
members as support by management to members helps in bringing the more desired output.
Under the organizational culture, team members will also be allowed to form their informal team
so that it will easy for them to solve the problems. Proper training will also be ensured in order to
increase the understanding and appreciation among the colleagues (Gabszewicz & Tarola, 2018).
A successful product differentiation strategy will help in creating the brand loyalty among
customers. The same strategy that gains market share through perceived quality or cost savings
may create loyalty from consumers (Quinn, 2018).
Under its culture, it will follow the clear procedure. Firstly, it will set the goals so that every
member can track the progress. Afterwards, it will also bring each member together from the
planning stage and participation. It is also essential handle the potential disputes that can occur
during the procedure (Guiso, Sapienza, & Zingales, 2015a). In order to avoid the disputes, it will
appoint the party that will assist it in handling the disputes among the team members. It will
assist the members to be flexible. Flexibility means accepting the rules that will come their way.
Several incentives will also be linked with the organizational culture (Mukhopadhyay & Ye,
2016).
It is essential to achieve the attach the incentives with the employee performance. At the time of
working, it will create the certain target for the people who are ensuring the making of cakes. It
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will decide the number of cakes that is required to be produced by the employees (Guiso,
Sapienza, & Zingales, 2015a). If the employee will go beyond that, it will provide the several
benefits to the employee in terms of monetary as well as non-monetary form (Manso, 2017).This
will push the employees to produce more output with the best quality. Quality will also be
included as the major factor during the making for cake (Pacelli, 2019). There are times
employees do not take care of the quality for the sake of getting incentives for more output. Due
to this, it will also include the quality with quantity in the incentive policy. Customer feedback
will also be included as the major factor in the incentive program (Pacelli, 2019). Every time
customer will avail the service, they will be asked to provide the feedback regarding the taste and
quality of the product. The number of times positive feedback will achieved, incentive will be
provide according to that. Incentives play an essential role in bringing the positive output at the
workplace. The new bakery business will also ensure the same in order to bring the several
results at the organization. The results will definitely come in the positive manner if they will be
given the better incentives for their good efforts. IN this way, incentives will prove to be the
motivation factor for the employee (Singh, Burgess, Heap, Almatrooshi & Farouk, 2016).
Marketing Mix
Product- the market trend of cake has been changing and other tasty gluten free cakes. Product
mix is the pure combination of manufacturing that has been traded by particular business to
reinforce the presence at the marketplace (Basset, Mohamed, & Smarandache, 2018). The main
concept of business related to the bakery business is the most business organizations that diffuse
huge risks associated with the different groups. It will enable the organization to appeal huge
group of businesses and customers (Shi, 2016). Our bakery named “Manelatica” has introduced
huge variety of bakery items for its customer so that it can attract them. “Manelatica” consists a
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large range of products with their main cakes including flavored cakes, simple cakes, designed
cakes, tasty pastries (Fan, Lau, & Zhao, 2015). Some of the few items in the menu are pastry,
soups, soft drinks, coffee, and tea, designed cakes for the celebration, packaged juices, cookies
and ice cream. Enabled with menu, bakery will avail several services such as Wi-Fi for students
and professionals, free and pleasant sound system, free home delivery regarding the orders,
discount on huge amount purchases, loyalty cards for regular customers, and a separate room
reserved for special meetings. Their main idea is to get fresh cakes for all the occasions
(Andrews, & Taylor, 2017). The firm has chocolate, pastry, cakes and also the combination of
chocolate and cakes especially enabled with gluten free cakes and chocolate in the product line.
It concentrates to sell packaged cakes that will be available at different supermarket and retail
stores (Mohammad, 2015). It will also start home delivery facilities enabled with different types
of breads and snacks for the dine-in customers in non-veg variety. It will also start some home
deliveries, gifting system and online booking. Further, the firm will also manufacture cookies,
home baked deserts, brownies, cakes, cupcakes and square. The firm will avail good variety of
products, to meet long term relationship with the customers by offering discounts on huge
purchases. It will avail internet facilities to the customers and music system with the television
facilities provided for the entertainment (Awan, Salam, & INAM, 2015).
Price- Price of “Manelatica” is quite low and reasonable as far as competitors are concerned. The
price of the cake depends on its flavor and its size. Averagely half kilogram cake will cost near
to around $20 that can go up nearly to $100. This range fluctuates on the basis of flavor and size.
“Manelatica” will further offer superior quality in the affordable prices. The price set an offering
target that plays an important role on the basis of its marketability (Išoraitė, 2016). This is one of
the element that is included in the revenue generation as a component. Price can be offerings to
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most common available market that is more elastic, unit sales that will go up in order to response
to the effective price changes (Ahmed, & Rahman, 2015). These products have general and it is
more limited to the availability of product in the market. The price elasticity of the offerings can
be easily determined with the help of various market research techniques. The price elasticity,
price changes, with more elasticity that will not affect unit sales. The price elasticity of the
offerings, which can be determined with the help of several marketing testing techniques. It is
important to ensure price should be competitive closely matching with competitors. Competition
pricing in an organization will certainly add huge profit margin on the top of its charge. In order
to penetrate the existing market, the firm will undertake to opt for low pricing when entering new
market. Organization lowers the prices where the new entrance will find it difficult to sustain in
the market. After some time, the firm will start its pricing on the basis of premium goods in order
to maintain brand image (Tafesse, & Skallerud, 2017).
Place- Place mix is related to how product will conduct to measure the distance to reach the
customers and will focus on some of the important areas. Figures differ from product to product
that is near to the cost of product and reach to the customers. It is important for the concern if
several methods of storing and transporting goods. Getting the right product to the right place
includes distribution system. Manelatica will shop in nearly Singapore covering 12-13 cities in
next 1 year after establishment. It wants to make a huge brand in next five years with its huge
brand. On the other hand, goods that are unsold as backed by company that are given away in the
charity purposes when it will be consumable condition or destroyed.
Promotion- it is seen that consumers are quite health conscious and they will undoubtedly they
will certainly demand gluten free, low carbohydrate, organic, whole grain, and other paleo diet
products. It is seen that buyers have its product substitution based with nuts, fruit bars, and
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yogurt. Further, governmental regulation will further continue to weigh heavily relying on the
industry. EPA (Environmental protection agency) with the food and drug administration, which
are constantly overseeing several operations of bakeries and issuing for several new rules which
will increase the cost of production. “Manelatica” has been using media such as print, web,
hoardings, and TV by advertising the products. It comes out with the offering on certain festive
occasions. In the promotion of the cakes and chocolates, it will come out with several offering
with special cakes and chocolates. Cost of distribution method that depends on the variety of
circumstances. It is quite convenient for some of the manufacturers to wholesaler to retailer,
which will directly sell to the retailers and customers.
SWOT Analysis
Strengths Weaknesses
The bakery has an extensive range of
offerings and product line
Existence of online ordering system
The company facilitates gift cards facilities
and personalized accessories on the birthday
occasion (Basset, Mohamed, & Smarandache,
2018).
The main idea of the business is Gluten free
cakes and the company have separate menu
for kids
Customer oriented and it has been priced
competitively with higher quality
The differentiation becomes difficult in the
menu as there are many bakeries that offer
gluten free cakes Canada (Basset, Mohamed,
& Smarandache, 2018). The company will not
have enough brand and it does not have
enough experience in running bakery,
production, inventory management and
ordering
It is important to know that Gluten free
products do not stay fresh when they are
made up of wheat base. Time is unpredictable
and the staff is too young (Basset, Mohamed,
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Location advantage & Smarandache, 2018).
Confusion among the customers regarding the
gluten and wheat free products
Opportunities Threats
It focuses on branding and advertising
towards kids to attract families
With the increase in the health conscious
concept, awareness of the celiac disease has
been growing (Bohari, Hin, & Fuad, 2017).
Every one out of ten people consume it.
Packed goods for the retail distribution can
avail a standard
Gluten free customers are quite valuable and
they rang up nearly to the sales of $100 with
the average basket as compared to $33 for the
overall basket.
Educating non-celiac market to benefit the
gluten free eating
Research has shown that people will never
abandon desert after proper meal.
The company can expand after to customers
maintain appropriate qualities.
Stiff and hard competition from all the
existing organizations, which can offer
similar products (Bohari, Hin, & Fuad, 2017).
People move towards several health products
and change in the price of raw material
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By using the discussion of the SWOT analysis, one can identify new opportunities as created by
gluten free foods causing business`s strengths. For example- Producers can lead to the
transformation of opportunity to increase the market demand for the gluten free food and also the
ability to charge high price level to maximize the profitability and at the same time, it establishes
supreme corporate identity (Basset, Mohamed, & Smarandache, 2018). I think there are several
opportunities as created by the firms in order to expand the customer base where customers have
been willing to pay extra cost for gluten free lifestyle. Marketing is something in the food
industry because of existence of several generic products in industry forcing the differentiators
(Basset, Mohamed, & Smarandache, 2018). Organizations should have effective marketing
techniques scare customers in the thinking that wheat is toxic and with a gluten free label that
has been associated with low calorie and the healthy lifestyle. Many organizations choose to try
the label associated with the packaging of the unrelated products which is always gluten free
(popcorn and nuts) in order to emphasize the point of differentiation (Basset, Mohamed, &
Smarandache, 2018).
My colleagues claim that as their prior choice they prefer vegetarian and they are able to
opinions of the non-coeliac customers. I think firmly that this gluten free craze that is more than
social trend that will ultimately burst. It is seen that marketing of transient food will motivate fad
to ascent on fast basis, social media against living gluten free diet, which is a powerful
enforcement will reshape the perception of non-coeliac consuming customers. It will force in
fading in experiencing a reduction. More customers will realize that eating too much gluten free
cakes is not the only way to lose weight. This situation falls in the category of threat
(Phadermrod, Crowder, & Wills, 2019).
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Further, opportunity asserts the importance of knowledge and market research in regards to enter
new trends. Vegetarians who avoid gluten create more active use of two market trends such as
active and responsive. Without quantitative and qualitative research of the recent market
structure, it is seen that organizations often fail for the identification of ever changing and
dynamic market trends and the risk manufacturing products where it is not the one it wants
(product-oriented). Market research assists the organizations to plan and forecast the future
patterns of demand. I strongly feel that manufacturing only gluten free goods can be neither
economically viable nor socially sustainable stratified because gluten free label is unlikely to
survive through the threat of media (Datta, Ailawadi, & Heerde, 2017).
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