Apothecary Bakery and Cafe Business Plan Assignment

Business plan is a formal and written document which lays the outline of the set of activities that a new venture or an existing company will carry out so as to execute initiation or expansion respectively (Sujarwo, 2016). Entrepreneurship is defined as the process of designing, developing, executing and monitoring the operations of a new business or an expanding enterprise. The present report is based upon The Old Apothecary Bakery and Cafe which is a small bakery situated in Downtown Halifax dealing in products such as pastries, breads, desserts and other items made from scratch.

BUSINESS PLAN

EXECUTIVE SUMMARY
This report has been based upon the ascertainment of a market opportunity by The Old
Apothecary Bakery and Cafe and then undertaking steps so as to derive the desired outcomes of
such opportunity. This organisation is currently operating in Canada and has decided to carry out
expansion within UAE after gaining knowledge of the health conscious nature of majority
population prevailing there. With the help of CAGE analysis, it has been ascertained that there a
number of factors which tend to create differences between domestic (Canada) and host country
(UAE) which have to be feasibly taken into account by entity to gain successful entry in
international market. This organisation will make use of social media and SEO to undertake
marketing initiatives within the new country and gain satisfaction from customers. Further, it has
been recommended to the bakery company to make use of licensing as market entry strategy to
gain entry into UAE and enhance its existing market share.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................5
International Business Opportunity........................................................................................5
“CAGE” Analysis of International Business Opportunity.....................................................6
Operations of Proposed Business...........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business plan is a formal and written document which lays the outline of the set of
activities that a new venture or an existing company will carry out so as to execute initiation or
expansion respectively (Sujarwo, 2016). Entrepreneurship is defined as the process of designing,
developing, executing and monitoring the operations of a new business or an expanding
enterprise. The present report is based upon The Old Apothecary Bakery and Cafe which is a
small bakery situated in Downtown Halifax dealing in products such as pastries, breads, desserts
and other items made from scratch. This organisation is currently operating in Canada and has
planned to expand within UAE. This report includes CAGE analysis of the international business
opportunity, operations of proposed business in terms of organisation, products, marketing
strategy plan and market entry strategies.
International Business Opportunity
The Old Apothecary Bakery and Cafe is operating in Canada currently and provides
products such as cakes, pie, biscuits, cookies, pastries, cupcakes, cream rolls, breads etc. The
management of this entity is planning to expand their operations within United Kingdom while
launching a new section of sugar free and gluten free bakery items. This has been done keeping
in mind that a large segment of population in UAE is health conscious and prefer to eat such
bakery items which are rich of nutrients and free from sugar or gluten. The economy of this
country is very strong and serves as an exceptional location for potential investors to carry out
investment in a new product, service or do expansion of its business operations (Radović-
Marković and et. al., 2014). This geographical place serves as a lucrative marketplace for
businesses that are looking forward to tap the advantage of a market opportunity and gain entry
into this place. The standard and lifestyle of people within UAE is quite lavish which tends to
develop opportunities for entities to enter this place and thereby gain the attention of people
towards the offerings of company so as to enhance the existing share in marketplace. The Old
Apothecary Bakery and Cafe can make use of this place as the key to extensively carry our
promotion of their old as well as new range of products, thereby striving to build a strong and
loyal customer base and enhancing the profits of the bakery within global market.
Further, UAE has been selected as the location as confectionery industry, particularly the
bakery sector in this place is valued at $683 million and is more likely to grow at a rate of 4.2%

annually owing to a rise in demand for naturally baked goods. Further, it has been found out that
cakes are the most dynamic and liked bakery segment within UAE marketplace witnessing an
overall annual growth of 10.5% (Bakery Industry in UAE countries, 2019). Further, it has been
ascertained that a vast segment of UAE's population are suffering from obese and diabetes due to
which these individuals and their families prefer sugar free and gluten free products. The obesity
rate of UAE is double of that of world's average. Over 2.1 billion people that approximate 30%
of global population are today obese or overweight which indicates the likely reason of people
being health conscious.
“CAGE” Analysis of International Business Opportunity
To analyse the differences that prevail within UEA and Canada for The Old Apothecary
Bakery and Cafe to carry out expansion successfully, CAGE analysis has been done. This is an
analytical framework which assists an entity in gaining an understanding of the differences that
lie between the nations so as to devise effective strategies while going international or global.
CAGE stands for Cultural, Administrative, Geographic and Economical aspect which tend to
create distinction between the countries (Mandić, Borović and Jovićević, 2017). While the
bakery operates within Canada, it tends to enter global market and for this, the management has
chosen UAE as the location for facilitating expansion. In this regard, the various aspects that are
a part of this analysis are described below in detail:-
Cultural Distance: This tends to be the first and foremost aspect of CAGE analysis
which is also found to be one of the most perplexing ones for the top management of
organisation. Culture is an intangible element yet it is one of the most crucial aspects which has a
major impact on the international strategy adopted by the entity (Iveta and Geci, 2017). This
consists of a number of factors which creates cultural differences for The Old Apothecary
Bakery and Cafe in context of Canada and UAE such as diverse languages, social norms,
ethnicities, religions etc. In this regard, Canada is a large country where the languages usually
spoken by people are French and English. On the contrary, population of UAE usually use
Arabic which indicates that the staff of the bakery have to undergo training to learn about the
diversities between the culture and languages of people in both the countries so as to feasibly
expand the operations in UAE and launch the new product segment of gluten free and sugar free
products. Further, the culture of Emirates is more of religion and value focussed while Canada is
a country where the population is free and liberal in terms of their social norms, ethnicities etc.

This means that management of The Old Apothecary Bakery and Cafe will have to ensure that
they sell bakery items such as cakes, pies, cookies, pastry, breads etc. in accordance with the
religions and social norms of Emirates so as to ensure their sustainability for a long time there.
Administrative Distance: This constitutes a crucial aspect of CAGE analysis which
focuses upon the historical and existing political as well as legal association amidst the countries.
This assists in gaining knowledge in relation to determining whether relationship between the
domestic and host country will be beneficial for the operations of business as well as the
international expansion strategies or will serve as obstacles (Chepurenko, 2017). In this regard, it
has been ascertained that there are no trade barriers or other restraining laws and legislations that
may prohibit The Old Apothecary Bakery and Cafe to facilitate expansion from Canada to UAE.
Geographic Distance: This is associated with the physical element of differences
between two nations like the size of country, nature of information as well as transportation,
climate conditions and many such aspects. It is also associated with the geographical distance
amidst the two nations, UAE and Canada in terms of kilometres which tend to alienate the entity
from target market or the suppliers. However, in the modern and dynamic era, the factors such as
technology, internet and social media strive to reduce the physical distance associated with the
transportation time (Devi and Goswami, 2014). Further, the availability of digitalisation and also
the presence of digital products as well as services tends to shrink the constraints related to
geographic distance between Canada and UAE for The Old Apothecary Bakery and Cafe. This
helps to ensure that operations take place in the desired manner within new country and the
bakery is able to successfully gain the attention of the people of the international country by
offering its newly launched sugar free and gluten free items such as pies, cookies, cake, pastry
etc.
Economic Distance: The fourth as well as the last element pertaining to the CAGE
Framework is concerned with the differences that lie within the nations owing to income levels,
purchasing power that the target market of the nations possess, distribution of wealth and
disposable income level of people. This tends to act as one of the largest hurdles for a company
when they are carrying out expansion of their operations and functions in a new country (Ahmad
and et. al., 2016). In this regard, when The Old Apothecary Bakery and Cafe facilitate expansion
of this bakery into UAE, it has to devise international strategies which are viable with the

economic policies of Emirates so as to make sure that the business sustains and grows in the new
market for a long duration of time.
Operations of Proposed Business
A. Organization
The Old Apothecary Bakery and Cafe was started as a small bakery by a mother and her
daughter within Canada. With time, the bakery items produced and sold by entity got renowned
and assisted the entity in enhancing its scale of operations (Bhargavi, 2015). Today, this
organisation comes within the leading bakery companies of Canada with a large, strong and loyal
customer base who are not at all willing to shift to other brands. In order to enhance the share of
entity in marketplace, the management of The Old Apothecary Bakery and Cafe has planned to
enter international market and for carrying out the expansion, UAE has been strategically
selected by the entity. The major objective of this organisation is to tap the advantage of gaining
support from the largest possible population segment of UAE so as to build a strong name and
gain a hgh position in global marketplace.
B. Product or Service
The Old Apothecary Bakery and Cafe has been offering cakes, pies, biscuits, catering and
fresh bread within the domestic market of the company, namely, Canada. However, post entering
the new country, the management of the organisation considered carrying out some research
about the latest trends and behaviours prevailing within the geographical location. Thus, they
analysed that a large section of UAE population is struck by obesity and diabetes owing to which
they planned to introduce a new product segment of sugar free and gluten free bakery items
(Adebayo and Otemuyiwa, 2015). Thus, The Old Apothecary Bakery and Cafe will offer bakery
items enriched of vital nutrients yet lacking sugar and/or gluten so that the health conscious
customer segment of UAE can also enjoy the taste of bakery products and do not remain devoid
of the savoury and tasty bakery items produced and offered by the company.
C. Market Entry Strategy
There can be a number of strategies through which an organisation can gain entry into an
international market. These are referred to as market entry strategies. In relation to The Old
Apothecary Bakery and Cafe, several market entry strategies are available to this bakery to
facilitate expansion into UAE marketplace yet the management of this organisation is a little
confused about the selection of strategy through which they gain entry into UAE. However, they

are gaining an insight into some of the most essential global market entry modes to arrive at a
decision about the selection of strategy. In this regard, they are considering the following
strategies to tap entry into UAE market and promote the newly launched sugar free and gluten
free bakery items of enterprise:-
Franchising: This can be referred to as a form of partnership agreement that can be
utilised to carry out quick expansion of this bakery company into UAE.
Joint Venture: This is a specific type of partnership that consequently results in
formation of third company (Vesperi, Reina and Gentile, 2015). Here, two business entities come
together so as to assume the risks and share the profits collectively.
Partnering: Herein, entity enters into a partnership with one or more firms to facilitate
easy expansion into new global markets (Achmad, Saputro and Handayani, 2016). These
partnership entities are usually local companies that possess a large customer base and corporate
contacts which can assist in market entry.
The Old Apothecary Bakery and Cafe can make use of any of the above mentioned
market entry strategies to successfully gain a high stake in international marketplace and
formulate an easier expansion into UAE by introduction of sugar free chocolates.
D. Marketing Strategy Plan
The marketing strategy of this organisation for facilitating expansion into UAE has been
decided to be focussed upon social media and Search Engine Optimisation (SEO) to enhance
traffic towards company’s website. With the use of both the marketing strategies, the main aim
of this bakery is to gain entry and gain the attention of a large quantum of population of UAE so
as to enhance the share in international market and significantly build a good name and position
there. This will assist the organisation in enhancing the sales and profits of company.
CONCLUSION
From the above report, it has been concluded that an entrepreneur has to take into a
number of factors which may create differences between the operations in domestic and host
country. Further, to analyse this, CAGE analysis of business opportunity has been done which
indicates that cultural, administrative, geographical and economical differences exist within
nations. Also, it has been acknowledged that there can be a number of market entry strategies
which can be adopted by company while gaining entry into international markets yet licensing

has been found to be the best amongst all. Besides this, it is also ascertained that marketing
strategy plan is the prerequisite to feasibly establish a business within new global country.

REFERENCES
Books and Journals
Achmad, N., Saputro, E. P. and Handayani, S., 2016. Entrepreneurship in the Digital
Era. Dinamika Pendidikan. 11(2). pp.102-107.
Adebayo, O. and Otemuyiwa, A. A., 2015. University Unified Undergraduate Enterpreneurship
Education Curriculum is a Must. International Journal of Small Business and
Enterpreneurship Research. 3(1). pp.10-20.
Ahmad and et. al., 2016. Social entrepreneurship in ecotourism: an opportunity for fishing
village of Sebuyau, Sarawak Borneo. Tourism, Leisure and Global Change. 1(1). pp.38-
48.
Bhargavi, P., 2015. MICRO FINANCE AND EMPOWERMENT OF WOMEN
ENTERPRENEURSHIP IN INDIA. International Journal of Multidisciplinary
Advanced Research Trends. 2(2). p.3.
Chepurenko, A., 2017. Innovation Enterpreneurship in Transition Economies: Problems and
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reference to Kamurp district, India. Clarion: International Multidisciplinary Journal.
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and ethnic enterpreneurship. Studia ethnologica Croatica. 29(1). pp.305-330.
Mandić, D., Borović, Z. and Jovićević, M., 2017. Economic Freedom and Entrepreneurial
Activity: Evidence from EU 11 Countries. Economics. 5(2). pp.11-17.
Radović-Marković and et. al., 2014. Motivational factors affecting entrepreneurial decision: a
comparison between Bulgarian and Serbian women entrepreneurs. Ecologica: nauka,
privreda, iskustva, pp.103-115.
Sujarwo, S., 2016. INCORPORATING ENTERPRENEURSHIP IN A PRODUCTION
FUNCTION. Agricultural Socio-Economics Journal. 16(2). pp.79-86.
Vesperi, W., Reina, R. and Gentile, T., 2015 September. Academic knowledge vs
enterpreneurship: the spin off way. In European Conference on Knowledge
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Online
Bakery Industry in UAE countries, 2019. [Online]. Available Through:
<http://www.fnbnews.com/Top-News/bakery-industries-in-uae-countries-current-
scenario-38565>.