Enterprise and Business Development: A Business Plan for Pie Bar Bakery

This article discusses the development of a business plan for a bakery called Pie Bar. It covers details of the company, macro environmental factors, market and industry analysis, competitors analysis, marketing and pricing strategies, operation plan, SWOT analysis, and financial requirements.

Enterprises and
Business Development

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business Plan...............................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Enterprise is kind of business entity that form for the purpose of making profit and
associated with some venture. Business development is combination of ideas, function and plan
that entrepreneur implement to achieve the goal that include growth, business expansion and
enhance profitability. In this present assessment, business plan is develop for “ Pie Bar” that is
bakery business which will open in Scotland, UK. It target costumer who are students, youth and
local office workers (Achtenhagen, Ekberg and Melander, 2017). External environment of
company and analysis of market, competitors analysis of enterprise is included. Apart from that
marketing & pricing strategies, operation plan and SWOT analysis is going to discuss and what
are the financial requirement of company is involve.
MAIN BODY
Business Plan
Details of Company
The name of company is “Pie Bar” that is bakery business and comes in the industry of
Confectionery. It provide 100% natural and organic product such as Breakfast Sandwiches,
Muffins and Cupcakes, Customised cakes and pastries, Cookies and Desserts, Soups and Bagels.
It target students, local office workers and youth and offer variety of different product that are
natural and cruelty free that focus on their health (Bider and et.al., 2017) . It also deliver the
Customised cakes and pastries and also serve breakfast meal and other stuff for local workers
who resides in nearby town for their work.
Macro Environmental Factors
To survive in market company need to understand the external environment and how it
impact the business. To determine this factors, PESTEL Analysis is require it means identifying
the outside component that impact the operation of company and to determining the factors is
necessary for every organisation. Following is the way by which it operate-
 Political Factors- It means having impact of tax rate, exchange rate in which company is
operating. As new government has and focusing on revving the manufacturing industry
that help the company in growth as it comes in food production company. It shows
positive side towards the bakery business.
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 Economical Factor- IT refers to economic condition of country such as demand and
supply, buying power of costumer and unemployment. As whole world was suffered
from current pandemic and ultimately UK has also go through. So, during that major loss
was faced by food industry and along with this bakery business will also confront the
same, as still people are not preferring to go out and have food.
 Social Factor- This concern with taste and preferences, behaviour of costumer towards
the product in country (Budzianowski, 2017). In UK, bakery was always been profitable
business as people like to eat such stuff and “Pie Bar” is providing organic product that
attract the costumer to buy them without the worrying of their health.
 Technological Factor- It termed as developing in any technological factor in industry
that impact the business. As selected company will use all the technological requirement
that needed in this to grow more and increase its brand name in its location.
 Environmental Factor- It concerns with following all the environment friendly practices
to fulfils responsible citizen. As “Pie Bar” is already offering organic and natural
products without any cruelly and believe in sustainable production and consumption. Legal Factor- This greatly affect the business, as it include legal formalities and
framework exist in country. As, in food industry UK government is quite strict about
rules and regulation regarding the what should be use, about its quality and safety
standard. So company need to adhere with all these regulations and maintain its qulity.
Analysis of Market and Industry
To start any new business, company first and foremost outline its strategies according to
the analysis of market and its industry that include the analysis of Segmentation, Targeting and
Positioning of product.
Segmentation- It refers to segmenting the market which include Geographical,
demographical and lifestyle. The company “ Pie Bar” is located in Scotland, UK. In
Geographical segment company will be located at centre of town (Ghanbari and et.al., 2017) . In
Demographical business focus on students, youth and local office workers in age of 15- 35. It
will be focus on middle class group as students and youth were focused. It will also provide high
quality of product at affordable price.
Targeting- After segmenting the market, targeting is applied it involve the how company
can target the costumer on basis of their needs and influence them to buy. “Pie Bar” bakery is
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going to target the students and local workers by providing them breakfast meals that will also be
deliver by company. It emphasis on organic and cruelty free products that going to be healthy for
young youth. It also provide customised cakes and pastries to parties and function.
Positioning- It refers to how company can stand out from competitors and what its
market niche. “Pie Bar” is positioned its brand as organic that include all natural ingredients with
the view to promote the healthy products that will be good in the age of Chilterns and young
people (Lindh and Nordman, 2017) . It will serve its products to parties and all kind of function
as per the orders. It will focus on hygiene as, it become necessary nowadays and diversifying its
product range with high quality stuff.
Analysing the Competitors
Company required to analyse the competitors so that they able to survive in market that
will help the new enterprise to formulate its plans and strategies. To do this analysis Porters
model is going to be use which means determining the competitors strengths and weakness and
according to that formulate the strategies and tactics.
 Bargaining power of costumer- It concern with force of buyers towards the company.
As this bakery will be new in market, so costumer will gradually attract toward this
through its promotion and advertising but initially there will be less growth. Because
there are many competitors who exist in locality will create competition and buyers has
more other choices to switch over. So, costumer has strong force towards the bakery.
 Power of suppliers- This force will be refer to power of negotiation in the hands of
suppliers. In food industry, every company has multiple suppliers, as they have approach
them for many inputs such as raw material and for delivering to costumer (Liu, Cheng
and Cheung, 2017). So, new bakery will also develop relation with them and also
availability of many alternative supplier in market who will provide them in reasonable
rate. So supplier has low force against the company.
 Threat of substitute- It refers to availability of substitute in market. This bakery has
great impact on this business, as this there is lot of substitute product exist in market the
onlu difference is in taste and quality. Apart from that products offer by many shops and
company are of same category with little variation in quality. So, bakery has big threat of
substitute.
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 Entry of new entrants- In this industry, entry barriers are quite low so chances of
getting into this business is easy. As in Scotland, government is promoting new
entrepreneurs and providing them relief to the some extent (Prokhorova and et.al., 2016)
. It will create threat of new entry and competition will be so high in this business. Rivalry among competitors- Basically in UK, there is large market of food industry
and and numerous of company and brand are offering high quality products with good
prices. It create lot of competitive environment for new business who were trying to
sustain in market. So, this bakery has to put lot effort to survive in market as there many
big players.
Marketing and pricing strategies
Marketing strategies- It is overall plan for targeting the potential costumer and converting
them to buyer through some strategies. “Pie Bar” required to use certain marketing strategies to
promote its business in following way-
 Advertising- This might include that company can initially advertise its brand through
local newspaper, radio and through events in community (Setiawan and et.al., 2018) . It
will help the Bakery to gain the awareness in its locality.
 Social media- It is popular medium through which Bakery can use to promote it in
bigger level. As every small organisation is on social media so it become important to
increase its presence on social media through representing its variety of product on
internet with catchy pictures.
 Public Relation- This concern contacting to local people and build relation with local
newspaper and television station to tell them about new Bakery shop “Pie Bar” has
opened and ask them to promote.
Pricing strategies- This refers to using different tactics to gain costumer gain and capture the
market and determine the price to set for the product. The bakery shop will use Penetration
pricing. As this pricing refer to set the price at low in order to capture the market share and able
to compete with competitors. It will attract the costumer more as they tend to but low price
product with good quality. As this business is targeting students and young people who generally
has no earning, so it will catch them so as to gain the competitive advantages through them.
Operation plan
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It refers to detailed plan how it contribute to the achievement and goals of company and it
include certain stages from which company has to go through. “Pie Bar” bakery shop will first
identify the kind of products which are profitable in food industry. Determine the target costumer
in the market that will be profitable. Prime location will analyse to attract large buyer ans after
this, Manufacturing will be concern in this bakery will produce hygiene and natural food item in
their bakery with full safety measure. It after connect to local and outsider base supplier that will
help in delivering to certain places (Szczepańska-Woszczyna and Kurowska-Pysz, 2016).
Marketing strategies will be use effectively to promote its brand in local area and after it will
expand to other cities after gaining positive response from costumer.
SWOT analysis
It refers to identifying the the internal external strength and opportunities for company that will
help making in certain strategies and plans. “ Pie Bar” is also use this method to determine its
strong and threats aspects according to market.
Strength
 “Pie Bar” will provide natural and
cruelty free products which is strong
point for company. Because there are
very few who offer such products.
 Company will provide wide range of
products with good quality at
reasonable price. It will help to grab
buyers as they will prefer to buy
product at low rate.
Weaknesses
 Due to large competitors in market,
company has to face lots of competition
in initial level.
 As, this is new venture it will confront
with capital issue in starting and it will
take time to use extensive amount at
initial stage.
Opportunities
 As with good product variety and
diversification in range it will aids in
boosting the bakery sales and growth.
 Due to high quality product it help the
bakery to expand in other potential
areas.
Threats
 From large competitors in food
industry, bakery will face the tough
competition.
 Availability of enormous substitute
goods present in market.
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Financial Requirements
To implement the business every company need to acquire certain equipment, furniture
for that it has to estimate certain fixed and running cost. So for that business has develop the
plan.
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Evaluating and Monitoring
Company need to finally evaluate and monitor the who business process to ensure
effectiveness and efficiency that will be help the organisation to achieve its targets and goals.
KPI is evaluating tool used by company to measure its performance in such a way that how
much time it will take to deliver its product (Zulkarnain, Wahyuningtias and Putranto, 2018).
Types of investment option for bakery business and how much revenue is to be generated to
cover its cost. Monitoring is also mandatory for smooth functioning of company and take
corrective measure in order to reduce any inefficiency during any process.
CONCLUSION
It is to be concluded that Enterprise and Business Development basically means proper
building of new enterprise it include all the ideas, thoughts, plan and strategies used in
developing of new enterprises. For Business plan Bakery shop is being develop with the name of
“Pie Bar”. For this business detail and Macro environmental factor that will affect was
determined and analyse the industry, competitors and Marketing and pricing strategies is also
being concluded. Apart from this operation plans, SWOT analysis, financial requirement and
tools for evaluating and monitoring tools was analysed.
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REFERENCES
Books and Journal
Achtenhagen, L., Ekberg, S. and Melander, A., 2017. Fostering growth through business
development: Core activities and challenges for micro-firm entrepreneurs. Journal of
Management & Organization. 23(2). pp.167-185.
Bider, I. and et.al., 2017. A fractal enterprise model and its application for business
development. Software & Systems Modeling. 16(3). pp.663-689.
Budzianowski, W. M., 2017. High-value low-volume bioproducts coupled to bioenergies with
potential to enhance business development of sustainable biorefineries. Renewable and
Sustainable Energy Reviews. 70. pp.793-804.
Ghanbari, A. and et.al., 2017. Business development in the Internet of Things: A matter of
vertical cooperation. IEEE Communications Magazine. 55(2). pp.135-141.
Lindh, C. and Nordman, E. R., 2017. Information technology and performance in industrial
business relationships: the mediating effect of business development. Journal of
Business & Industrial Marketing.
Liu, S., Cheng, I. and Cheung, L., 2017. The roles of formal and informal institutions in small
tourism business development in rural areas of South China. Sustainability. 9(7).
p.1194.
Prokhorova, V. V. and et.al., 2016. Prospects of the agro-industrial complex development:
economic diversification, business development, mono-industry town strengthening and
expansion. International review of management and marketing. 6(6S).
Setiawan, M. I. and et.al., 2018, January. Business Centre Development Model of Airport Area
in Supporting Airport Sustainability in Indonesia. In J. Phys. Conf. Ser (Vol. 954, No.
1, p. 12024).
Szczepańska-Woszczyna, K. and Kurowska-Pysz, J., 2016. Sustainable business development
through leadership in SMEs. Engineering Management in Production and Services.
8(3). pp.57-69.
Zulkarnain, A., Wahyuningtias, D. and Putranto, T.S., 2018, March. Analysis of IFE, EFE and
QSPM matrix on business development strategy. In IOP Conference Series: Earth and
Environmental Science (Vol. 126, No. 1, p. 012062). IOP Publishing.
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