Management Practices for a New Bakery Business

This report discusses the management practices for a new bakery business, including staff management, communication, conflict resolution, time management, and technology management. It also provides recommendations for running a successful bakery.

REPORT SELECT YOU
COMPANY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Introduction of the company........................................................................................................3
Capital sources for the new bakery..............................................................................................3
PESTLE ANALYSIS..................................................................................................................4
Potential risk involved in the business.........................................................................................5
Management practices for eliminating the problems in the business..........................................5
Recommendation.........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

EXECUTIVE SUMMARY
In this report, the discussion will be on the new business management. This report includes
the introduction and size of the new business. It will further describe about the product features
of the company. The emphasis was laid on the capital sources for the new business and the
methods of obtaining. It also describes about the problem and challenges faced by the new
business management. This report also contains the risk involved in the process and the
management practices for minimising the problems in the new business management.
Introduction of the company
The name of the company is cakes delight and it is basically a bakery. It is small scale business.
It is UK based company. It provides all the eatables. It provides the facility of online food
delivery. It includes the products like cakes, pastries, drinks, chocolates etc. as the people in the
UK are more conscious about the health, specifically for them Cakes delight bakery has started
the organic food and drinks. People in UK nowadays started ignoring the junk food and fast food
(Monitor,2016). It attracts more customers and helps in increasing the sales of the business.
Capital sources for the new bakery
Capital sources basically refers to the sources by which the capital is generated. Capital
plays an important role in staring up the business. Without capital a business cannot be started. It
is always a big confusion for the entrepreneur about acquiring the capital. There are many
capital sources and an entrepreneur should choose an appropriate capital source for cakes delight.
The different capital sources are as follows:
Crowdfunding: It is the method of raising the capital through the internet or social networking
sites. It needs maximum campaigns for the promotion, as it is important for the people in the
market to know more about the Cakes delight. It is important to win the maximum support of the
crowd. In this method the money is not be return back, it is simply kind of the donation from the
recognition. Crowdfunding are obtained by the public and crowd in the market.
Microloans: Microloans are designed basically for the small business. It helps the entrepreneur
of the cakes delight to start up the business. The most attractive part of the loan is they are very
short-term loans and with low interest rates (Harvey,2018). It is beneficial for the entrepreneur in
establishing new business. Microloans are obtained by the banks.
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Credit cards: Credit cards are used during the immediate finance of the expenses. Credit card
are helpful when entrepreneur don’t have cash for making the transactions at that moment. Credit
card can increase the debt with the higher annual percentage rates. Credit cards are provided by
the banks only.
Therefore, it can be concluded that, the microloans are more beneficial for starting up
cakes delight bakery. As these are designed especially for the small business. It is comparatively
better from the other capital sources and traditional business loans.
PESTLE ANALYSIS
PESTLE analysis is the tool used for monitoring and analysing the different environmental
factors, which influence the performance of the business. It is very useful tool during the
establishment of the business.
Political factor: Political factor basically includes the government policies and laws such as, tax
policy, foreign trade policies, labour law, trade restrictions, environmental law etc. For the Cakes
delight bakery, it is a challenge as it very difficult to figure out every regulation, as it is not easy
and also consumes maximum time.
Economic factor: Economic factors basically determines the performance of the economy. The
factor includes the economic growth, exchange rate, interest rates and unemployment rates, etc.
It also affects the price of the products and services. This factor directly or indirectly affects the
business, as it affects the purchasing power of customers and accordingly changes in the demand
and supply. The impact laid on the sales and performance of the Cakes delight bakery.
Social factor: Social factors generally represent the demographic characteristics, norms, values
and customs of the people where the business has to be started. It includes the lifestyle of the
people, health, hygiene and safety of the people.
Technological factor: Technological factor basically refers to the updating of the new
technology in the Cakes delight. It also helps the entrepreneur to evaluate the current situation of
the technology. In this factor internet plays an important role for the promotion of the innovation.
It helps in delivering the knowledge about of the business to the customers. It helps in promoting
the Cakes delight in the market at the wider level, which results in maximising the profit of
Cakes delight bakery.
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Environmental factor: Environmental factor involves the ecological and environmental aspects
that affects the business. This factor includes the location, weather, climate, pollution and etc, the
demands and supply of the consumers, which directly affects the sales of the business
(Taylor,2016). The entrepreneur should keep the positive attitude towards the nature and
environment, it should make sure that the environment should not be affected by its any activity.
Legal factor: legal factor includes the laws and regulations, that can affect the cakes delight
bakery. The laws are related to the discriminations, anti-trust, intellectual property law, tax law,
health and safety law. The entrepreneur of the cakes delight should be aware about the ethics and
law or any potential changes in the legislations.
Therefore, PESTLE analysis is important tool for identifying and analysing the different
factor of the business. It can be considered as a challenge, as the health and hygiene are more
preferable in the UK, it requires more investment in managing the health and hygiene in the
Cakes delight bakery.
Potential risk involved in the business
The bakery industry is very large and spread in all parts of the countries. In the cakes delight
bakery, there are many risks involved. They are as follows:
Price fluctuating: Price fluctuations are basically on the goods which are seasonal and becomes
rare. The fluctuation of the price takes place monthly, yearly or frequently, it directly affects the
business and performance of the bakery (André,2018). For example, the price of white oil
frequently increases, which is used normally in all the products of the bakery.
Limited growth opportunity: There are many bakeries in the market, which increases the
competition in the bakery. So the chances for the growth is very limited. The growth of the cakes
delight bakery also depends upon the population. With the growth in the population, there will be
naturally more people to buy the products, but it is a slow process and the bakery is earning
single percentage annually.
Health and safety: The health and safety can be considered as a risk, as it is difficult for the
bakeries to maintain the standards of the health and safety. Due to the current situation people
prefer the place which are more hygienic.
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Baking methods: The baking method of the bakery is most important, as there are some rules for
the baking, which should be followed very carefully, otherwise it may result in increasing the
cases of the cross contamination. It also leads to the allergies in the customers.
These are some of the risk which is faced by the cakes delight bakeries. These risks might
affects the sales and performance of the business.
Management practices for eliminating the problems in the business
The efficient management practices are important for the elimination of the problems and
issues in the bakery. It helps in making healthy environment in the bakery which results in
increasing the effectiveness and productivity. The different management practices are follows:
Staff management:
Provide effective training: the proper training should be given to the employees to the business.
It helps them in gaining more knowledge about the business (Burns,2016). The training should
include the bakery procedures, dress code, safety measures and customer relation. It helps in
fulfilling the organisational goals more effectively and efficiently. It helps in eliminating the
illiteracy among the employees.
Communication: communication plays an important role in the bakery. Communication helps in
solving the problem related to the finance, as they communicate about the available resources in
the cakes delight company. The communication with the staff should be through the phones,
mails and internet.
Manage conflict: though the staff of the bakery is doing good, but still there are always risk of
the conflicts arise between the members of the business. The entrepreneur should be impartial
with the staff members. The conflicts and problems amongst the staff should be listened
carefully and resolve the issue in the positive manner. It helps in eliminating the problem of
clashes among the employees.
Time management: it includes managing the time in more productive way. The entrepreneur
should make sure that the staff of the business is properly utilizing the time. More time should be
utilized in organising the working place (Manigart,2017). The bakery should be organized in the
way it attracts the more customers. The Woking place should be organised according to the name
and theme of the bakery. The to-do list should be prepared, it helps in saving the time. The list
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should be prepared the day before, so that next day the time will not be wasted in thinking and
discussing about the work to be done.
Technology management: technology is playing a very important role in the business. It helps in
promoting the different products and services of the business. Technology also involves the
online delivering of the food. In this process, the customer’s order the food through internet and
the food is being delivered to the customers at their doorsteps. It is most convenient process for
the customers, and it is preferable by the customers nowadays. Technology is also important in
the working place, like television and music systems, they are helpful while the customers is
waiting for the food to be delivered. These factors helps in attracting more customers towards the
business.
Recommendation
During the management of the bakery, it is not easy to run the bakery and ensures the success of
the business (Vogel,2017). Therefore, some tips are mentioned below for the smooth running of
the business. The recommendations are as follows:
Diversity attracts: the innovation in the bakery is very important, it attracts the customers. Not
only items but the area should also be innovative. The entrepreneur can decorate the area in the
different format. The entrepreneurs should tap on the social media for selling the products.
tap online delivery platforms: people nowadays prefer online delivering the food then going out,
as it is more convenient for them. In this process, the customers orders the food online and the
food is delivered to their doorstep. It is also beneficial because, customers give their valuable
feedbacks on the same page, which can be visible to all the other people. Positive feedbacks
plays an important role in the business (Birley,2017).
Offer free samples: offering free samples helps in getting the ideas about the products of the
bakery. It is the form of promotion of the products and it is helpful in the success of the business.
Therefore, recommendations are important for increasing the sales and profit of the cakes
delight bakery.
CONCLUSION
The above report concluded the Cakes delight bakery is small sized bakery and it has
different features of its product. The capital sources and the ways to obtain it are also
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highlighted. The research also evaluated the challenge and difficulties of the business by
mentioning the pestle factors. It also described some potential risk and some management
practices to be implemented in order to minimise the problems.
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REFERENCES
Books and Journals
André, K., Cho, C.H. and Laine, M., 2018. Reference points for measuring social performance:
Case study of a social business venture. Journal of Business Venturing. 33(5). pp.660-
678.
Birley, S. and Stockley, S., 2017. Entrepreneurial teams and venture growth. The Blackwell
handbook of entrepreneurship, pp.287-307.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Harvey, D., 2018. The limits to capital. Verso books.
Manigart, S. and Sapienza, H., 2017. Venture capital and growth. The Blackwell handbook of
entrepreneurship, pp.240-258.
Monitor, G.E., 2016. Global entrepreneurship monitor. Empreendedorismo no Brasil (Relatório
Nacional). Curitiba: Instituto Brasileiro de Qualidade e Produtividade, Paraná.
Taylor and et.al., 2016. The role of business size in assessing the uptake of health promoting
workplace initiatives in Australia. BMC public health. 16(1). p.353.
Vogel, P., 2017. From venture idea to venture opportunity. Entrepreneurship Theory and
Practice. 41(6). pp.943-971.
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