UK Economy Sustainability Analysis

This assignment provides an analysis of the UK economy's sustainability, including a detailed examination of its GDP growth and market trends. The report uses data from 2014 to 2020 and provides a forecast for future GDP growth. It also discusses the implications of these findings on businesses such as Anytime Cakes, which operates in the UK bakery market.

Entrepreneurial Opportunity

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Market attractiveness..............................................................................................................1
2. Industry Attractiveness..........................................................................................................2
4. Competitive and Economic Sustainability..............................................................................3
REFERENCES................................................................................................................................7

INTRODUCTION
The business plan is an effective means that helps in defining the goals and the steps that
are required to attain that goal. Launching a new business required a long analysis in order to
start a new company. The plan and decisions has to be made which will help in determining the
product which has to be offered, the target marker, potential customer and the pricing trend. The
the small-scale industries in UK are vital for the growth of the economy. It is important for the
entrepreneur to identify the existing opportunity in the market.
There are various opportunities in the market which will help the start-up business to
grow in the market. There are various entrepreneurial opportunities in marker that needs to grasp
in order to turn the idea into a successful business venture. The present report will help in
understanding the new business plan for Anytime bakery. Anytime Cakes is a small-scale
business which will be located in London, UK. The business will be engaged in offering cake
products that would be made up of essence of Vegan. The report will discuss the market
attractiveness techniques of Anytime bakery. The report will also analyse the attractiveness of
the business. Industry attractiveness is an essential tool that will help the management of
Anytime bakery in understanding the competitive environment that are being faced the bakery
industry. The report has also helped in understanding the competitive and economic
sustainability in the market.

1. Market attractiveness
Anytime Cakes is a small-scale business which will be located in London, UK. The
business will be engaged in offering cake products that would be made up of essence of Vegan.
In order to increase the profitability and customer satisfaction, market attractiveness can be
defines as the best tool. It helps the bakery owner to evaluate the profitability of the market.
Market attractiveness is the framework that helps in providing a structure to the Anytime Bakery.
It helps in determining the strength of the company's product and the potential market
attractiveness (Storey and et.al., 2016). The market attractiveness can be well understand by
analysis of the following factors:
Market size and the growth rate: They are the most basic factors that helps in while
evaluating a market. The larger the market size, the more the opportunities for Anytime bakery
in attracting the customer and increasing the sales of the business. It helps the company in
increasing the revenue of the business even in the low price range. If a market is of large size, it
will help the company in increasing its growth rate also. The company has to identifies the target
customers in the market. It will help in increasing the opportunities for growing the market share
of the Anytime bakery.
Market share of UK bread production by value and volume:
% by value % by volume
Large plant bakers 75 85
In-store bakeries 20 12
Craft bakers 5 3
100 100

It can be interpreted that, the market share and growth of Bakery industry been growing.
It can be observed that there in much scope of growth for large plant balers as compared to in
store bakeries.
Margin and Pricing trends: the revenue that is earned by the company is being determined by
the volume and margin. It is the key factors that helps in determining the profitability and hence,
the attractiveness of a market (Zihare and Blumberga, 2017). The market with the same size but
have the different margin point will have the potential to generate different revenue. Pricing
trend in the market are also very important for Anytime bakery. If the pricing in the market is
declining it will affect the business of the company. They too have too lower their price. And in
contrary to that, if the pricing trend in the market is increasing there are many opportunities for
the Anytime bakery to increase its sales and revenue.
Competitors: with the increasing numbers of competitors of Anytime bakery in the market. It
has become a major challenge for the company to make its differentiate space from its
competitors in the market. The things that need to be considered are the size of the competitors,
the competitive advantage they have in the market (Mannan and et.al., 2017). And the market
share and the growth rate, they have in the market. If a market is being dominated from a single
competitor will become unattractive as it will hinder the growth of the company. Whereas if the
market are having small companies have chance to rise in the market.
Value: it is important for the company to offer the product that can help in putting different
aspects of customers. By offering the customer different combinations of product with the
elements of value company will be achieve the value bundling in can help the company in
satisfying the need of customers and increasing the sales.
2. Industry Attractiveness
The industry attractiveness is the magnitude and ease for generating profit in comparison
with all the risk that are being involved in the industrial sectors. It includes the number of
competitors, their relative strength and rate of growth in the industry. Industry analysis helps the
Anytime bakery to develop the competitive strategy that helps in defending against the several
factors in the industry.
Industry attractiveness is an essential tool that will help the management of Anytime
bakery in understanding the competitive environment that are being faced the bakery industry.

The tool helps the company in evaluating the internal competition, barriers to entry, the
bargaining power of both supplier and buyer and the chances of substitutes. The porter's five
forces model analysis of Anytime bakery are as follows:
Rivalry among existing competitors: There are many player in the bakery industry, especially
in UK. Anytime bakery has to face the competition from The competitors are AB Mauri, Bakers
Oven, Beigel Bake, Cooplands, Fox's Biscuits Sayers, Wrights Pies, Warren Bakery, Greggs
PLC to name a few (Guan and Jones, 2015). These competition are competing for the same
customers in the market. While the product differentiation in the industry is limited, the
switching cost for the customer are none, that increases the threat of the Anytime Bakery.
Anytime Cakes have to produce superior quality cakes so that it may be able to attain profits in
the best way possible.
Threat of new Entrants: it can be said that Anytime bakery has low threat from the new entry
in industry. As there is no such barriers to enter in the market, but to gain success a company
need investment to open different chain of bakery. Moreover, in order to earn success in the
market the new entry has to face an intense competition in the market (Vargha, 2018). Thus, the
threat of new entrants to Anytime bakery in moderate.
Bargaining power of Buyers: Anytime bakery has to face the foreseeably pricing power of the
buyers. As most of the bakery items are being sold in bid supermarket and big outlet they are
able to maintain their price. But the small size company has to allow the discounts or lower their
price in order to maintain the number of their customers.
Bargaining power of suppliers: It helps in analysing the effect of the changes in the prices of
the suppliers. Suppliers in the bakery industry do not have such negotiation power in the industry
(Rout and et.al., 2018). As the ingredients and the customised nature does not affect the pricing
decisions of the suppliers.
Threat of substitute: As there are many competition for Anytime bakery in the market, there are
large choice of alternative for the customer in the market. Anytime Bakery can introduces
speciality products with reasonable price in order to attract more customers towards their
company.

4. Competitive and Economic Sustainability
Anytime Cakes is a small-scale business which will be located in London, UK. The
business will be engaged in offering cake products that would be made up of essence of Vegan.
Customers will be able to attain satisfaction in the best manner possible as cakes will be made
with up with aroma of taste of Vegan and also taste of UK people will be filled up with. It is
required to analyse competencies so that business may be able to enhance and build up its
position in the market in effective manner (Hennart, 2018). This will provide small-scale firm to
implement well-defined strategies by which it may overcome competencies in a better manner.
The bakery firms providing cakes, biscuits and pastries are numerous in the UK.
The competitors are AB Mauri, Bakers Oven, Beigel Bake, Cooplands, Fox's Biscuits
Sayers, Wrights Pies, Warren Bakery, Greggs PLC to name a few. This means that for
maintaining competitive sustainability in the country, Anytime Cakes have to produce superior
quality cakes so that it may be able to attain profits in the best way possible. This will provide
business with increased scale of operations in effective manner and profits would be garnered
with ease. It will be required to implement strategies such as offering discounts to customers
during festive seasons, providing discount on first order of customers. By initiating such
strategies, consumers will be attracted to avail cakes from firm so that firm may be able to
accomplish goals in effectual way. Moreover, penetrating pricing strategy will also be applied by
which cake or bakery products would be made available to people far below than those of rival
businesses (Woo and Lee, 2018). This will aid to firm in achieving good customer base and
outreaching competitors up to a high extent.
Economic sustainability is another key factor which will drive and affect Anytime
Business quite effectively. UK economy is rising one in the world and economic sustainability
lists down ability of an economy for supporting defined level of economic production in
effective manner. It can be analysed that economic sustainability is an integral part of the
sustainability and it cannot be separated from it. This means that UK economy is quite
sustainable for the long-run and will like move upward.

Illustration 1: UK GDP
Source: United Kingdom GDP. 2018
It is evident from the above chart that GDP of UK was all-time high in 2014 reaching
$3022.83 billion in 2014. The figure however, slowed down in next year and decreased to
$2885.57. Furthermore, GDP in 2016 was $2650.85 which reduced to $2622.43 in 2017.
However, it is forecasted that UK economy will reach to $2850 billion at the end of present
quarter of 2018. In long term, GDP is estimated around $3170 billion in 2020. Thus, it can be
said that economy of the country is sustainable and will continue to grow at a rapid rate. Hence,
Anytime Cakes will be able to attain desired range of profits by outreaching competitive forces
and will gain share in the UK bakery market.

REFERENCES
Books and Journals
Guan, J. and Jones, D. L., 2015. The contribution of local cuisine to destination attractiveness:
An analysis involving Chinese tourists' heterogeneous preferences. Asia Pacific Journal of
Tourism Research. 20(4). pp.416-434.
Mannan, M. and et.al., 2017. Customer satisfaction, switching intentions, perceived switching
costs, and perceived alternative attractiveness in Bangladesh mobile telecommunications
market. South Asian Journal of Business Studies. 6(2). pp.142-160.
Rout, A. and et.al., 2018. A service-based business model for rapid diffusion of solar water
heaters in India. International Journal of Energy Technology and Policy. 14(2-3). pp.331-
347.
Storey, C. and et.al., 2016. Success factors for service innovation: A meta‐analysis. Journal of
Product Innovation Management. 33(5). pp.527-548.
Vargha, Z., 2018. Performing a strategy's world: How redesigning customers made relationship
banking possible. Long Range Planning. 51(3). pp.480-494.
Zihare, L. and Blumberga, D., 2017. Market Opportunities for Cellulose Products From
Combined Renewable Resources. Environmental and Climate Technologies. 19(1). pp.33-
38.
Hennart, J. F., 2018. Springing from where? How emerging market firms become multinational
enterprises. International Journal of Emerging Markets. (just-accepted). pp.00-00.
Woo, K. Y. and Lee, S. K., 2018. Price convergence in the UK supermarket chains: Evidence
from nonlinear cointegration approach. Economics and Business Letters.7(3). pp.115-125.
Online
United Kingdom GDP. 2018 [Online] Available Through: <https://tradingeconomics.com/united-
kingdom/gdp>