Entrepreneurship (2) - Simms-World Bakers Business Plan

This report discusses the business plan of Simms-World Bakers, an independent bakery headquartered in Bolton, UK. It covers their innovative steps to accelerate their expansion, industry analysis, business management and operations, marketing strategy, and financial plan.

Entrepreneurship (2)

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Business Aim, Objectives, Goals and Overview....................................................................2
Industry Analysis....................................................................................................................2
Business Management and Operations...................................................................................4
Marketing Strategy.................................................................................................................5
Financial Plan.........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Entrepreneurship refers to the creation of or extraction of ability to take risks in order to
create new opportunities and start a new business. The entrepreneurship is the process that is
related to the development of a business, but it can also be related to an innovative idea to
produce something new or create changes in existing items. “Simms-World Bakers” will be a
independent bakery that will be established in the upcoming times and will be headquartered at
Bolton, UK. The report consists of a brief discussion about the COVID-19 crisis and how the
company could take innovative steps to accelerate their expansion. The report also covers the
analysis of market competition that is prevailing in the market and how the company could tackle
them. Moreover, the report presents an analysis of management practices in the business and
how could it get better. At the end it includes, the marketing practices of the company in order to
better present its products to the customers and buyers in effective ways.
MAIN BODY
After the COVID-19 pandemic the companies and market has gone through vigorous
changes and expansion of business innovations was highly experienced. Simms-World Bakery
could accelerate its growth towards innovation in e-commerce as well as it should innovate its
products from precise high cost products to daily use and fast consumable products. The
COVID-19 crisis has increased the need for e-commerce. With the help of E-commerce the
company will be able to fulfil the demand of customers who are willing to get convenient and
safe products available at their fingertips. This could enable Simms-World Bakers to continue
operations even when the restrictions n the movement of people prevails. The pandemic has
opened ways to enhance the dynamics in e-commerce, which means new firms can have better
scopes of expansion and increasing their foothold in the market (Leong and et. al., 2020). During
the COVID-19 the world has seen the significant shift of consumers from highly prices premium
products to the daily use items. The government has made significant efforts to create more
better policies regarding the help to develop e-commerce channels across the countries
worldwide. This could be a better opportunity for the company to grow its channels and make
efforts to cover more and more areas in new market (Javadian, and et. al., 2020).
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Business Aim, Objectives, Goals and Overview
The Simms World Bakers will be opened with the aim of serving best class products with
high tastes and quality that would be available to the customers in very reasonable budget. The
company's focus would be to provide the customers with the online as well as online options for
their products so the consumers could purchase their products with safety while sitting at their
homes (Tinyakova And et. al., 2020). Simms-World Bakers would make innovative use of e-
commerce to satisfy the needs of its customers so they could get their products easily even at the
times of restrictions. The goal of the Simms-World Bakers would be to create healthy brand
image and serve its products to all the customers. The business would be functioning online as
well as offline including counter services, speciality services, sit down and dining options
(Baraldi, and et. al., 2020). It will provide quality driven, European style, American style and
many other forms of breads and products in its bakery through its online operations. Simms-
World Bakers would produce different type of breads including thick crusted breads, dense
savoy breads to sweet baked products. The operations of the business would be all round and will
produce cakes to regular eatable breads to make its online products diversified for its customers.
Industry Analysis
The bakery industry in the UK is very large this means that the company may face
challenges related to its business in the marketplace. There are competitors in the market that
may influence the business activities of the company (Kreiser And et. al., 2021). Porter
developed his framework of five forces as an method to explore the competitive ability of a
particular industry. The power of these forces rests in the questions it asks about the company,
market or the competitors which Porter described through these policies. In order to analyse the
competitive market of the company and analysis through Porter's Five Forces are given below: Threat of New Entrants (Medium): The Simms-World Bakers have a unique idea
regarding the selling style of its commodities and produced items. The company would
focus towards use of e-commerce to sell its products as the world has shifted from the
physical activities of purchase and sales to the non physical world (Hilson and
Maconachie, 2020). There exists bakers in the nearby areas but only few of them carry
their business online therefore the threat of new entrants would be medium to this
company.
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 Threat of Substitutes (Medium): It can be explained as threat caused due to availability
of substitute products that gives tough competition to products marketed by the company.
The company have many substitutes but it is growing as a alternative for existing firms
that could easily provide products to customers through online selling (Meyer, Pedersen
and Ritter, 2020). The company does not have any potential substitutes related to its
innovative aspect towards its e-commerce business but it has substitutes for its products
at a medium level. Bargaining Power of Customers (Low): It shows the power of buyers to negotiate prices
of products in the market due to availability of low-cost products and better quality from
other company's products (Dencker And et. al., 2021). The customers will be getting very
less online purchase options, therefore the customers would not be able to bargain with
the company. Simms-World Bakers would be making their products that would be cost
effective which means the customers would accept its products at the same prices that the
company would offer. The customers would not get their products with safety, as such
this bakery could provide during the times such as COVID pandemic. Bargaining Power of suppliers (Low): It refers to the power of suppliers to bargain their
product sales prices with the retailers (Gomez and Helmsing, 2020). The suppliers of the
company have low bargaining power because they could not be able to affect the supply
chain of the company. The company has many suppliers to get the better products to
continue their operations therefore the suppliers are willing to supply items at the demand
of the company. The suppliers has to provide products at lower rates along with quality
standards or the company has the power to kick them out.
 Competitive Rivalry: This force among Porter's five forces looks for the available
competition from other businesses in the same industry (McElwee and Atherton, 2021).
The main competitors of Simms-World Bakers are as follows:
◦ Competitor 1: Sayers Bakery is the competitor that is already existing in the market
the company has variety of baked items that covers the majority of market in that
area.
◦ Competitor 2: Cooplands is another competitor that has many outlets across the UK
and covers a huge market area.
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Simms-World Bakers are going online that would be advantageous to the company in order to
compete with other brands. As all the brands present in the market does not have their businesses
entrenched with e-commerce operations. These companies have their online sites but their
activities and operations are carried physically where buyers needs to reach them to get their
products. Simms-World Bakers would be doing it completely different and changing the concept
where they will reach their customers in the time of their needs.
Business Management and Operations
The “Simms-World Bakers” would be a private corporation that would be incorporated in
the London. The business will be completely owned by its partners who will manage and run the
business completely.
Organisation and Management
The organisation of the “Simms-World Bakers” would be covering the area of approximately
1800 square feet with a well established bakery area, storage room, unpacking and mixing
compartments as well as the packing areas, distribution areas and seating spaces for its
customers. The company would be having everything already installed in the building and will
function its production and distribution activities with the help of these equipments (Achim,
Borlea and Văidean, 2021). Production of its sell-able products would start in the first month of
2021. The company would order its raw materials two times in a month duration from various
suppliers in the local market to help them carry their businesses too. Its raw materials would be
stored in the dry storage facility and cold storage capsules in the same premises. Rent of the
place or location is estimated as £1050/month and with the running amounts that would cost up
to £725/month.
The schedule of operation will be made on daily basis with the continuous production
activities and the bakers will bake products in a deck oven that is used for backing items on a
large scale. This oven would provide great temperature for baking the products and with the
controllable amount of heat and moisture it could produce better products. With the help of such
a baking system the company could produce every type of breads including thick crusted breads,
dense savoy breads to sweet baked products. The operations of the business would be all round
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and will produce cakes to regular eatable breads to make its online products diversified for its
customers.
The management of the company would not be diversified and it would run on a scaler
chain principle where the operations would be controlled and managed by both the business
owners simultaneously. The employees will follow a chain of command as the hierarchy of
management is short. The employees will be well trained and professionals in baking and cake
making business, moreover there will be technical staff members who would take care of the
online operations and would inform the quantity of orders to be produced packed and shipped.
The distribution channel would be controlled by the managers and the operations of supply chain
would be followed similarly.
Marketing Strategy
Marketing strategy involves making detailed plan or strategy to cover maximum number
of customers in the market by making them aware about the products and services of the Cafe.
For this purpose, the marketing mix can be utilised that consists of combination of product,
place, price and promotion mix to make the cafe and its products effective to reach its customers.
The marketing mix of Simms-World Bakers is given below: Product: The Simms-World Bakers would show its passion towards serving the highest
quality products by in-sourcing premium quality materials to maintain taste and flavours.
The competitors uses low grade items and inefficient staff that reduces quality of product
and lowers down customer satisfaction. The bakery will be availed with top-of-line e-
commerce technology and quick delivery options along with the employees with
professional training. Place: The Bolton, UK area is not served by many bakeries and nearby areas does not
have may online suppliers of baked items. The bakery would be offering services through
a professionally developed e-commerce platforms to sell the products to its customers
with ease and customers feels satisfied. The place is near to the mainstream location
where a burger distributary stands and the place itself gives the opportunity to sell its
baked breads to the burger distributor. Price: The Simms-World Bakers would focus on specially developed breads with new
tastes and designs that will consist of American style breads and European style breads
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and many more, to gain high profits. The bakery would use adequate pricing strategy for
its products and will give offers on its online and offline products. The prices would be
considerably be made by elaborating the costs to cover the transportation and delivery
costs in the cost of products to avail free of cost delivery options. The company would be
using online and huge sales options to variety of retail shops, burger shops etc.
 Promotion: To minimise costs and connect to larger customer demographic,
advertisements with the help of digital and non-digital methods would be done. The
promotion would be very much attractive and alluring to the customers with the help of
well designed hoardings and newspaper advertisements. The promotion would be done
through posters on the local campus billboards, social media, newspapers and online
methods. The Simms-World Bakers will be unique in using reward points to its loyal
customers on its online sales to promote its business through its consumers.
Financial Plan
Start Up Costs
Equipments £ 46 thousand
Materials £ 4.5 thousand
Rent (2 months) £ 2.1 thousand
Site Modification £ 5.0 thousand
Sanction and Legalities £ 1.0 thousand
Consultation £ 1.0 thousand
Supplies £ 0.6 thousand
Cash Reserves £ 9.8 thousand
Total Costs £ 70 thousand
Financial Structure:
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Month 1 Month 2 Month 3 Month 4 Month 5
Revenues
Total Revenues £36000 £79372 £87500 £96460 £106338
Expenses & Costs
Cost of goods sold £6480 £14287 £15750 £17362 £19140
Lease £5000 £5125 £5253 £5384 £5519
Marketing £1000 £800 £800 £800 £800
Salaries £15701 £21403 £23596 £24776 £26015
Initial expenditure £10,000 £0 £0 £0 £0
Total Expenses &
Costs £29181 £41615 £45400 £48324 £51475
EBITDA £6818 £37757 £42100 £48136 £54862
Depreciation £2716 £2716 £2716 £2716 £2716
EBIT £4102 £35041 £39384 £45420 £52146
Interest £2346 £2052 £1759 £1466 £1173
PRETAX
INCOME £17568 £32988 £37624 £43954 £50973
Net Operating Loss £0 £0 £0 £0 £0
Use of Net Operating
Loss £0 £0 £0 £0 £0
Taxable Income £17563 £32988 £37624 £43954 £50973
Income Tax Expense £6147 £11546 £13168 £15384 £17840
NET INCOME £11416 £21442 £24456 £28570 £33132
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CONCLUSION
The above report had been providing the introduction to development of a business plan
with a unique idea of starting e-commerce operations for selling to maximum customers. The
report had been analysing the market competition with the use of Porter's Five Forces for the
industry in which the company wants to grow. The report had also been covering an analysis of
business operations of the company and what management is required to do and what should be
their skills. The report had been including a marketing strategy for the upcoming business with
the use of4P's of marketing and at the end it had been stating the financial requirements in the
business.
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REFERENCES
Books and Journals
Achim, M. V., Borlea, S. N. and Văidean, V.L., 2021. Culture, entrepreneurship and economic
development. An empirical approach. Entrepreneurship Research Journal, 11(1).
Baraldi, E., and et. al., 2020. Connecting IMP and entrepreneurship research: Directions for
future research. Industrial Marketing Management, 91. pp.495-509.
Dencker, J.C. And et. al., 2021. Reconceptualizing necessity entrepreneurship: A contextualized
framework of entrepreneurial processes under the condition of basic needs. Academy of
Management Review, 46(1). pp.60-79.
Gomez, G. M. and Helmsing, A. B., 2020. Social entrepreneurship: A convergence of NGOs and
the market economy?. In NGO Management (pp. 391-402). Routledge.
Hilson, G. and Maconachie, R., 2020. Entrepreneurship and innovation in Africa's artisanal and
small-scale mining sector: Developments and trajectories. Journal of Rural Studies, 78.
pp.149-162.
Javadian, G., and et. al., 2020. Qualitative research in entrepreneurship studies: A state-of-
science. The Journal of Entrepreneurship, 29(2). pp.223-258.
Kreiser, P.M. And et. al., 2021. Corporate entrepreneurship strategy: extending our knowledge
boundaries through configuration theory. Small Business Economics, 56(2). pp.739-758.
Leong, C. and et. al., 2020. The emancipatory potential of digital entrepreneurship: A study of
financial technology-driven inclusive growth. Information & Management. p.103384.
McElwee, G. and Atherton, A., 2021. Rural entrepreneurship. In World encyclopedia of
entrepreneurship. Edward Elgar Publishing.
Meyer, K., Pedersen, C. L. and Ritter, T., 2020. The coronavirus crisis: A catalyst for
entrepreneurship.
Tinyakova, V.I. And et. al., 2020. The cluster form of organization and the prospects for its
application to provide the sustainable development of cooperative
entrepreneurship. Revista Gênero e Direito, 9(4). pp.1092-1103.
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