Strategic management of twelve cupcakes PDF

Running head: STRATEGIC MANAGEMENT OF TWELVE CUPCAKES
STRATEGIC MANAGEMENT OF TWELVE CUPCAKES
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Author Note

STRATEGIC MANAGEMENT OF TWELVE CUPCAKES1
Table of Contents
2.0 Industry Business Description..................................................................................2
2.1 Porter’s Five Forces.................................................................................................2
2.1.1 Bargaining power of suppliers..............................................................................2
2.1.2 Threat of Substitutes.............................................................................................2
2.1.3 Bargaining power of buyers..................................................................................2
2.1.4 Threat of new entrants...........................................................................................3
2.1.5 Rivalry among competitors...................................................................................3
3.0 Company Description...............................................................................................3
3.1 Type of Business......................................................................................................3
3.2 Legal Structure.........................................................................................................3
3.3 History, Mission and Goals......................................................................................4
3.4 Ownership Structure.................................................................................................4
8.0 Management Considerations....................................................................................4
8.1 Personnel / Sales Force Factor.................................................................................5
8.2 Business Advisers....................................................................................................5
8.3 Contingency Plans....................................................................................................5
References......................................................................................................................7

STRATEGIC MANAGEMENT OF TWELVE CUPCAKES2
2.0 Industry Business Description
The confectionery industry of Singapore had recorded total revenues of around 230.2
Million Dollars in the year 2017. The annual growth rate of the organization was around
2.5% between the year 2013 and 2017. The market consumption in the industry had also
increased by 1.5% from 2013. The confectionery based market operates with the help of retail
sale of products like, gum, chocolate and sugar. The trend which is rising in the confectionery
industry of the country is based on the demand for health and wellness (Doz 2017).
2.1 Porter’s Five Forces
Porter’s Five Forces Framework will be useful in analysing the situation of the
industry in which Twelve Cupcakes is operating.
2.1.1 Bargaining power of suppliers
According to Engert, Rauter and Baumgartner (2016), the different suppliers in the
confectionery industry of South Korea do not have high levels of negotiating power as the
markets are developed in an effective manner. Furthermore, this has been seen and analysed
that the price changes in raw inputs can affect the products of bakery.
2.1.2 Threat of Substitutes
The confectionery market consists of many different substitutes for the products
which are offered to the consumers. The baked foods can thereby be replaced by other food
items which already exist in the market (Engert, Rauter and Baumgartner 2016).
2.1.3 Bargaining power of buyers
The buyers or consumers of the confectionery industry including the supermarket,
hotel based chains and grocery stores are able to affect the levels of profitability and revenues
due to the presence of huge number of small bakeries.

STRATEGIC MANAGEMENT OF TWELVE CUPCAKES3
2.1.4 Threat of new entrants
According to Engert, Rauter and Baumgartner (2016), it has been analysed and
identified that there are different kinds of barriers which exist in the confectionery based
industry are quite low. The small business based organizations are able to enter within the
industry quite easily. The two major determinants for the success of a new organization are
ability of the leaders and ability to build the brand recognition (Frynas and Mellahi 2015).
2.1.5 Rivalry among competitors
According to Engert, Rauter and Baumgartner (2016), the levels of rivalry in the
industry are high as many players exist in the confectionery market of Singapore. The small
bakeries are also able to provide high levels of competition to the different organizations in
the industry. There are different kinds of supermarkets along with other major competitors
which can be a huge threat for the Twelve Cupcakes which will be ineffective in nature in
managing the overall efficiency.
Summary
From the Porter’s Five Forces Model Analysis, this can be analysed that there are
different kinds of threats along with opportunities for the Twelve Bakery in the market of
Singapore. This can be seen that the suppliers in the South Korean market is less and the
price of the raw materials are huge which can become a huge threat for the respective bakery
shop along with the business of the bakery.
From the above analysis of the Porter’s Five Forces Analysis, this can be analysed
that this will be helpful for the Twelve Cupcakes while moving from Singapore to South
Korea. With the help of the same, this has helped the company in understanding the nature of
the different competitors who are present in the South Korean market and this will help them
in identifying the different strategies which will be beneficial for the overall success of the