Business Development for Gregg's Bakery in Romania

BUSINESS DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Business development idea of Gregg's bakery............................................................................3
Reason or justification for expanding business in Romania........................................................4
Opportunities recognition............................................................................................................6
Business development process and evaluation............................................................................7
Environmental Analysis...................................................................................................................9
PESTLE ANALYSIS................................................................................................................10
PORTER’s FIVE FORCES.......................................................................................................13
Ansoff Matrix............................................................................................................................15
REFERENCES..............................................................................................................................18

INTRODUCTION
Business Development deals in creating long-term value for the organisation from the
markets, customers and the relationships. This focuses on the activities which contribute in
developing the business in some way or the other (Petrişor and Petrişor, 2018). This report will
be mainly focused on the business development of Greggs bakery which aims at expanding itself
in Romania. The bakery deals in specialisation of savoury products like sandwiches, bakes and
sausage rolls along with the sweet items including the vanilla slices and doughnuts (Greggs plc,
2020). The report will lay emphasis on developing the business of Greggs bakery by using the
models like Porters 5 Forces, Pestle Analysis and Ansoff Matrix.
Business development idea of Gregg's bakery
In regard to Gregg British bakery chain it can be said that it wants to expand its business
in Romania and other countries. It specializes in savoury products like: sausage rolls,
sandwiches, bakes and others (Buana and Agristina, 2018). It focuses on market development for
expanding business. As per the market development, company focuses on new market and
expand business with its existing products. There are several other ways of business expansion
and developing business such as product development, diversification and others. In product
development, company focuses on developing its products or by making changes in features of
products, it expands business. In diversification, company take risk by developing new products
in new market. There are high risks for company if it chooses this strategy for business
expansion. But Gregg chooses market development because it is famous for its qualitative
products. So, there is no need to make changes in products and services and with continuous
development and maintaining quality, it can attract customers of new market. So, this business
development strategy or idea can help it out in meeting its all goals. Further analysis and
selection of strategies mainly depend on the type of strategy selected by it. So, it can be said that
it is the main key function that can either make company successful and fail. So, it is important
to select better strategy (Hacklin, Björkdahl and Wallin, 2018).
For successful developing business idea of expanding business, it will require analysing
competiive market and accordingly it can add value as well as build trust. Building trust can be
the main key of its success and can help it out in attracting customers and retaining them with the
company for the long run (Ardian and Syairudin, 2018). Quality, prices and taste are main keys
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that can help it out in developing its business idea of expanding business by market development.
It can make use of TQM, JIT and other approaches for maintaining or improving quality of
products and accomplishing goals that it has set.
Reason or justification for expanding business in Romania
The main reason behind expanding business in Romania is improved economy. It is
stated that Romania is a fast developing economy and people in this country are employed. It
means people in this country can invest in buying bake products that Gregg's bakery want to sell.
By expanding business and selling its all qualitative food bakery items in this country it can
increase market share. It can give it opportunity of increasing sales. Other main reason of
expanding business in this country and other is increasing demand by people. By providing
qualitative, tasty and nutritional values of bake items, it can take several advantages of external
opportunities. It can boost its confidence.
Local consumption growth and increasing purchasing power of people in this country is
other main fact that have been known. Other main thing that has been found about Romania is, it
is one of the main producers of wheat in Europe (Unguru, 2017). Bakery companies in this
country take advantages of increasing sale by exporting qualitative bakery items to Australia,
Hong Kong and others. So, according to this analysis, it can be said that Gregg has made better
decision regarding expanding business in this country.
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From the above data, it is known that value of fresh bread products quantity has been
increased. Value of pastry and cake products have also been increased to the great extent and it is
also expected that this trend will be continued 2019 and 2020-2022. So, other main reason of
Gregg is increasing sales, revenue and making an effective position in the market. Decision of
expanding business in this country is being taken by this detailed analysis. But it is important for
this company to focus on quality management of products as competition intensity is high
already. It will require strive hard for making an effective position and attracting customers.
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Illustration 1: Bakery production in Romania
Sources: (Romania Bakery Sector, 2020)

On the basis of above data it can be said that Romania is the one that consume bread to
the great extent among all countries of EU. So, on the basis of this data, it can be said that reason
of Gregg of expanding business in this country is increasing profit margin and sales.
Opportunities recognition.
In regard to Romania where Gregg wants to expand its business it is found that it has
improved and effective economy. Demand for bake items is also high in this country. So, from
detailed analysis is being done regarding this country, it can be said that Gregg, bakery chain can
increase market share. It is also found that competition is increasing day by day in this industry
so, by attracting people and making aware them about its qualitative products it can improve its
image in the market (Radu, 2019). It can take advantages of competition. It is also believed that
once customers become loyal towards company then they are less likely to switch brand. So, by
providing them qualitative and tasty products as per the needs of Romania people, it can retain
them for the long run. This improved image can help it out in attracting and reaching to global
customers.
In addition, it can also be said that as per the analysis that it had 631.084 GDP Billion in
the year of 2016 and around 6 million population was employed. So, investment amount of
people in this country is high. Disposable amount ad investment amount in food products can
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Illustration 1: Bread Consumption
Sources: (Characteristics of Bakery products Consumption in
Romania, 2018)