Business Plan Assignment: Business Proposal

BUSINESS PROPOSAL

TABLE OF CONTENTS
ELEMENT A: BUSINESS PLAN..................................................................................................1
Business..................................................................................................................................1
The opportunity......................................................................................................................1
Description of the product or service.....................................................................................1
Business description...............................................................................................................3
Competitive advantage...........................................................................................................3
Business model.......................................................................................................................4
Industry analysis.....................................................................................................................6
Competitor analysis................................................................................................................9
Market analysis.....................................................................................................................10
Segmentation, targeting and positioning..............................................................................10
Estimate of market size and predicted sales with key assumptions.....................................13
Marketing plan......................................................................................................................13
Operational plan...................................................................................................................16
Canvas business model of ABC Bakers...............................................................................17
FINANCIAL PROJECTION.........................................................................................................19
Capital requirement..............................................................................................................19
Sales and cost projection......................................................................................................19
Critical success factors (CSF)..............................................................................................25
ELEMENT 2: INDIVIDUAL POSTER PRESENTATION.........................................................26
REFLECTIVE STATEMENT.......................................................................................................27
Learning experience.............................................................................................................27
Barriers to learning...............................................................................................................27
Professional & employability development skills................................................................28
Personal objectives...............................................................................................................29
REFERENCES..............................................................................................................................30

Index of Tables
Table 1 Sales and cost projection of ABC Bakers.........................................................................18
Table 2 Projected profit and loss statement of ABC Bakers.........................................................20
Table 3 Calculation of estimated personnel cost of ABC Bakers.................................................21
Table 4 Loan amortization schedule..............................................................................................22
Table 5 Profitability analysis.........................................................................................................23
Table 6 Projected cash flow statement of ABC Bakers.................................................................24
Index of Figures
Figure 1 Sales and cost projected figures......................................................................................20
Figure 2 Expected gross profit, operating profit and net profit.....................................................23

ELEMENT A: BUSINESS PLAN
Business
The main key towards the business of bakery is towards making determination of suitable
balance among the product quality as well as reasonable price. Due to the presence of immense
competition in the food sector market there is requirement that Bakery firm possess unique
things that make it different from the one who are present already within the market. Today most
the people prefer backed products. There is importance towards considering the altered demand
of the customers. The customers have gained the significance regarding the empowerment within
the food products (Dollinger, 2008). Flexibility needs to be present in the who procedure of
buying. Such is considered as the success of every business which is comprised of Bakery as
well. The Business of bakery is striving to meet the need of the target market. Today the
customers are preferring food options that are much healthier and that are being developed by the
bakeries. Whole grain selection us important for the sake of catering to the requirement of target
market. In order to attract the target market gluten free as well as items that possess lower
sodium are being chosen.
When catering towards the customers health requirement there is requirement to consider
that taste would not be sacrificed at all. At the similar point of time there is sensitivity in relation
with the price.
The opportunity
At present the customers thinking is changing to a greater extent. The desire of the
customers is towards making purchase of the customized products they possess the ability to
comply with the demand. People are fond of wearing the clothes and accessories that are
designer and desired by them. In similar manner innovations are also preferred by the people
when it comes to bakery items (Ward, 2016). The customers want to develop the cake in
accordance with their need. The present business proposal demonstrates the opportunity towards
development of bakery that would be opened in London. This would effectively enable the target
market in gaining designer cakes to a greater extent.
Description of the product or service
The bakery referred to as ABC would be counter service bakery within London. There is
existence of provision related with counter in which details are being offered by the target
market in relation with the cake which they desire to order. The order needs to be accepted in
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case of other baked food items. A greater range of the desserts are being provided by the Bakery.
The main product associated with the bakery would involve cakes that are being developed in
accordance with design that customer offers. The present era has faced greater shift within the
bakery sector. Within the market of baked food business can attain success but there is greater
need that desire of the customers is known to a greater extent. It is important that balance is
being kept with the latest trends that are existing within the market. The firm would make
development of the cakes in suitable way. There is uniqueness within the product as the customer
is designing as per the pattern and colour that are being selected by them. The decision related
with the cake ingredient would be offered by the customers only. In such manner the product that
is customized cake will be developed. This would be comprised of flavours which customers
desire. Further the cake would be customized in terms that ingredients that are not preferred
would not be put within the recipe of developing the cake. Also the customers can provide
information regarding the ingredients with which they possess allergy. Such is being done as per
the determination provided by the target market. Such would offer way to delicious cakes that
would be developed in accordance with the customer preferences. Fresh as well as natural
ingredients would be used while making preparation of the product. The innovative design that
the customers offer is the foundation associated with the cakes. The organization would come up
with the product that possesses ability to create greater impression at reasonable prices.
The value added service that is being offered by ABC will be offering customized
services to the target market. In order to prepare customized cakes the customer would place an
order with the firm. Along with this the customer would give an approval to the design and
sketch of the cake that is required to be devised. By the means of carrying out investigation in
the market information has been gained regarded the needs of the customers that have remained
unfulfilled. The customer's expectations from the local bakeries in London have also been known
by the means of research. On the basis of investigation ABC bakery will come up with the
packages associated with the services which cover the aspects attached with customized cakes.
The ideas associated with the design would be discussed so that decision can be developed
regarding whether to make utilization of the services of the particular bakery or not. Suitable
services in relation with the bakery would involve working effectively with the customers
towards the planning as well as development of the special cake. Thus suitable attention will be
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the focus that would be provided by ABC bakery. In certain areas home delivery services would
also be offered in the particular region.
Business description
The present business development proposal is putting forward the concept that is attached
with opening up bakery in London. The aim of the bakery is towards offering the customers with
the opportunity to develop the cake in accordance with the imagination which is possessed by
them. Further their choice can be on the basis of particular occasion that is comprised of
wedding, birthdays etc. By the means of bakery business the customers would be empowered get
the cakes developed by the ingredients, colour and the design which is design by them. The
Bakery is making presence within the market in order to serve larger base of customers. The
organization is dedicated towards offering new range of the products as well as services where
greater need is. The new venture wishes at making development of the suitable association with
the customers, suppliers as well as employees who are offering value to the firm. This results in
making a greater difference.
Competitive advantage
The following are regarded as the key sources associated with competitive advantage in
relation with the new bakery business. The major source attached with the competitive advantage
is reasonable price at which the firm is offering customized cakes. There is presence of greater
number of bakeries that offer the services related with custom ordered cakes at higher prices
which is making it unaffordable. The availability of the cakes would be different range of prices
so that customer is ordering cake within appropriate range of prices. Another source that is
attached with competitive advantage is potential of the bakery to make outer decoration that is
being stated by the customer. There is greater difficulty for the present bakeries to develop inner
and outer details of cake as this is being stated by the target market. But the particular bakery
would not let the customer design but also allows them to make the decoration. The bakery
possesses the chef who possesses the ability towards making traditional taste in the modern twist
that is customer demand. Suitable ingredients would be sourced and utilized in order to develop
the cakes. Such will offer authentic flavour related with the cakes. The organization would make
payment of special attention in relation with the cake quality as well as other bakery items. The
term quality is considered as the main concern for the customers in present era. On the other
hand for the purpose of serving greater number of customer large number of bakeries is making
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ignorance of such aspect. Through maintenance of the cake quality as well as other products
ABC will gain edge over competitors. Customers have focus towards influence of the business
actions over the environment. In this relation packaging that is friendly is considered as another
factors that assist in gaining advantage over competitors. This will act as an aid for the new firm
in developing unique image in the customers mind.
Business model
SWOT analysis
It acts as an aid in making determination of the strength, weakness, threat and
opportunities of the ABC bakery. The firm is making new entry within the market. Thus by the
means of SWOT analysis assistance would be offered to the firm in development of strategies
that can be used towards bringing enhancement in the weakness. Strengths: The major strength is towards catering to the customer’s specifications. Along
with this offering cake possessing decoration which the customers specify is the main
strength. Along with this strength is towards providing cakes at economical prices.
Further the business has the ability to develop the cakes with traditional flavours as well.
This has been determined that organization possesses the potential to blend the traditional
flavours with the taste that is modern one. Weaknesses: The weaknesses attached with this are the absence of excellence in
development of other products related with bakery. Further another drawback is offering
services related with home delivery in the various regions. On the other hand absence of
innovation in other items of bakery is another weakness of firm. Opportunities: The business has the opportunity regarding making introduction of the
flavours that are considered innovative. The exploration of the market would be done in
the cities that are nearby.
 Threats: The supermarkets as well as in-store retail bakeries can offer same services.
Other bakeries offering home delivery cakes in same region. The bakery that is offering
services related with taking online orders.
PESTLE analysis
For the sake of ascertaining the external environment of the organization there is
importance at carrying out the Pestle analysis in order to know the factors that influence the
business operations. This technique takes into account essential factors such as political, social,
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economical, technological and legal. Pestle analysis of ABC bakery has been presented in the
manner as under: Political: This factor is associated with legal laws as well as regulations which is required
to be followed while the business is carrying out performance of operations in the market.
Apart from this laws related with employment has to be followed then there is
significance for the firm to provide suitable environment to the employees. The
regulation attached with quality of services needs to be followed with respect to ABC
bakery. In this the firm is required to maintain appropriate quality that is being offered to
the target market. At some point of time the political laws are regarded as the barriers and
due to this they are required to be complied with in an appropriate way (Metzger, 2014). Economical: In case of London the economy is developed one. Further considering the
economic situation there is greater advantage for ABC to perform the operations in the
market. As a reason of growth in rate of GDP there is greater willingness in the firm to
spend on the services that are provided by restaurant. This suitable for business in the
market. Apart from this inflation rate is less due to which purchasing power also becomes
higher. Further economic scenario of London is stronger as well as people's income level
within the city is higher that is considered as advantageous in development of the pricing
strategies in an effective manner (Fozer and et.al., 2017). Social: This is attached with the alterations in the needs of the target market on the basis
of services that needs to be offered by the target customers. Further it is important for the
firm to make development understanding with respect target market for the sake of
offering quality services within the town. The retention of the customers is considered as
the key. Thus such is in case of ABC bakery as well. Legal: Such factor is attached with the rules as well as regulation that new firm is
required to follow. It is essential that business complies with the legal restrictions that are
associated with paying off the duties and taxes. Further other laws involves generation of
the employment (Bruns, 2015). Technological: The market wherein the ABC bakery can perform the function in
advanced manner. It is the tourist destination and due to this there is greater significance
for the business to make use of the place (McKeever, 2016). There is no doubt in relation
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