Principles of Business: Jackson Bakery, Market, Innovation Report

This report provides a comprehensive analysis of business principles, using Jackson Bakery as a case study. It begins by examining the characteristics of different business markets, the interactions between businesses, and how market forces shape company goals. The report then delves into business innovation, exploring different models, sources of guidance, and the product development process, along with the associated benefits and risks. Financial viability is discussed, including its importance, the consequences of poor financial management, and key financial terminology. The report also covers budgeting, marketing principles, the sales process, market research, and the value of branding, concluding with an overview of the relationship between sales and marketing. References are included to support the analysis.

PRINCIPLE OF
BUSINESSES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Describe the characteristic of different business market ......................................................3
1.2 State the nature of interaction between business in a market................................................3
1.3 Describe how a company goal may be shaped by the market...............................................4
1.4 State legal obligation of a business.......................................................................................4
TASK 2 ...........................................................................................................................................4
2.1 State business innovation......................................................................................................4
2.2 State the use of different models of business innovation......................................................4
2.3 Evaluate different sources of guidance & support for business innovation..........................5
2.4 State the process of product or service development ...........................................................5
2.5 Explain the benefit & risk associated with innovation..........................................................5
TASK 3............................................................................................................................................6
3.1 State the importance of financial viability in a company......................................................6
3.2 State the consequence of poor financial management..........................................................6
3.3 State different financial terminology....................................................................................6
TASK 4............................................................................................................................................6
4.1 Describe the use of budget....................................................................................................6
4.2 State how to manage a budget...............................................................................................7
TASK 5 ...........................................................................................................................................7
5.1 State the principle of marketing............................................................................................7
5.2 State the sales process...........................................................................................................7
5.3 State the use of market research ...........................................................................................8
5.4 State the value of brand in an organisation...........................................................................8
5.5 State the relationship between sales & marketing.................................................................8
CONCLUSION................................................................................................................................9
REFRENCES ................................................................................................................................10
Understanding the Evolving Relationship between Sales and Marketing. 2017. [Online].
Available through: <http://www.volarisgroup.com/blog/article/understanding-the-evolving-
relationship-between-sales-and-marketing>. ................................................................................10

INTRODUCTION
A business is an organization or enterprising entity engaged in commercial, industrial or
professional activities. A company transacts business activities through the production of a good,
offering of a service or retailing of already manufactured products (Ahmad and et. al., 2012).
The chosen company in this report is Jackson Bakery. This report covers various characteristic of
business model and also states how the referred firm use marketing tool in order to achieve
company's objective effectively.
TASK 1
1.1 Describe the characteristic of different business market
The world of business is an extremely large place and there are plenty of ways to run a
success company and make a profit if you understand the market. They’re many different types
of customer you can sell your products too but the main business markets can be broken down
into these 5 categories:
 Business to business market
 Industrial market
 Professional services and Financial services
 Government
 High Street
The business to business market is when one business simply sells it’s products to another
meanwhile the industrial market consists of companies transacting business in hard goods such
as machinery, materials, vehicles and supplies. The most obvious business market is the high
street and depending on what you’re selling really depends on who your customer is, if you set
up shop in the right place and have the right product the high street can be a fantastic place to
make a living.
1.2 State the nature of interaction between business in a market
This can be best explained by an example in which Jackson Bakery wants to open up a
factory that makes and sells bread, he then interacts with a multi million pound company such as
Virgin Atlantic who’re looking for another business to make sandwiches for their flight meals

(Amabile and Kramer, 2011). They would most likely test his products then once they were
happy with the quality of his bread they’d agree a contract with the baker and both companies
would hopefully find the deal profitable. This is an example of how good interactions between
businesses can lead to great results for both parties.
1.3 Describe how a company goal may be shaped by the market
Company's goal can be shaped according to the consumer requirement, for instance if
Jackson's Bakery is selling white bread but their potential buyers requires brown bread, then the
company is aspire to manufacture brown bread as it has been highly demanded by the consumer.
Thus Jackson are require to make such product that is highly demanded by the consumer. If they
want multi-grain bread, then the firm is liable to produce that bread (Chesbrough, 2010). Their
main goal is to give audience a reason to love their & enjoy their food and they simply do that by
shaping their objective as per buyer's demand or requirement.
1.4 State legal obligation of a business
When starting a business there are a number of legal obligations you must follow. Firstly
the Corporations Act 2001 has all the requirements a business owner must abide by in terms of
the structure of his/her business, an example would submitting your annual return.
If you decide to employee staff you will also have to follow several other legal requirements
such as the Anti Discrimination Act 1991 to ensure your staff are treated fairly. Health and
Safety is also an element when having a work force, it’s important to make sure they comply
with the Work Health and Safely Act 2011.
TASK 2
2.1 State business innovation
The simplest way to describe innovation in business is a new creative idea that is
designed to help improve your business. Whether that be to improve the working lives of your
staff, improve your profits or improve your products it’s something that will have a positive
impact on your company.
2.2 State the use of different models of business innovation
Models of business innovation can help you identify opportunities to grow your business,
generate new creative ideas, find and successfully enter into new emerging markets and create

new systems and rules that will take your business forward (Cragg, 2012). Normally there are
three types of business innovation:
Industry Model Innovation: It mainly deals with industry transformation such as Jackson
combine with Virgin Atlantic.
Revenue Model Innovation: It deals with how effectively company manage its revenue or
profit so that they maintain sufficient working capital.
Enterprise Model Innovation: This means when a company integrates its business with other
company of same nature.
2.3 Evaluate different sources of guidance & support for business innovation
The government are constantly focused on improving business in the UK and offer help to those
businesses who’re in need (Eigen, and Schuster, 2012). Here you can get support to get improve
and grow your business through ways of business innovation Often local authorities also offer
businesses help to get going.
2.4 State the process of product or service development
In order to create a product or service you firstly must come up with an idea. The next
step is to consider is their a market for your product, do people want to buy it or not. Then you
must create strategic plan to decide how you’re going to sell your product. The next step is to
create a prototype of your product and test it with your target audience. Once you’re happy that
your products works and it’s what your target customer wants on the market then you must
promote and finally launch your product to the market.
2.5 Explain the benefit & risk associated with innovation
Benefit: It includes increasing your profits, helping to personalise your services, finding new
business opportunities or even giving you an advantage over your competitors.
Risk: It can be in the form of acceptance of product or not by the target audience in the market
place.
Implication: It includes the expense cost of creating new ideas or products, sometimes small
companies may even have to look at expanding to innovate and also resource’s play a huge part,
if you only have a small team of employees who’re all extremely busy then it makes it
practically impossible to innovate effectively (Koch, 2011).

TASK 3
3.1 State the importance of financial viability in a company
Financial viability is extremely important in any business because making financially
viable decisions can determine whether your business is successful or not. Making sure
something is financially viable simply means to ensure it’s profitable and you can afford it
(Lindsey and Pate 2013). An example in our organisation would be, if we alter the
manufacturing equipment with the advance one or the latest one, it will increase the overall
efficiency of worker. Earlier workers cut the pieces of Bread with their hands but now they can
simply do this with the modern equipment. This results in saving time of entire workforce which
they can utilise in doing any other work. Though initially it will be expensive for the company
but it is worthful to spend in this.
3.2 State the consequence of poor financial management
When making a financial decision it’s key to really think about what the consequences
might be if your decision isn’t financially viable. If a company decides to spend money on items
that are expensive but won’t really improve their business then they will soon find themselves in
lots of debt, they could have to make cut backs or make people redundant to survive as a
business. That’s why it’s vital to carefully think about every decision you make in business.
3.3 State different financial terminology
1. Turnover – The amount of money a company has taken over a period of time.
2. Gross Profit – The amount of money a company has made after allowing for the cost of it’s
product and the cost of selling the product.
3. Net Profit – Net profit is the actual profit a company has made after working expenses.
4. Debt – Debt is an amount of money that you owe to someone or a company.
5. Credit – Is the ability to allow a customer to obtain goods or services without paying for them
first but with the knowledge they will pay for them at a later date (Porter and Tanner, 2015).
TASK 4
4.1 Describe the use of budget
A budget helps you to be organised when it comes to managing your finances, in terms of
a business it helps you work out what money you can afford to spend on expenses while still

making a reasonable profit. Since budgeting allows you to create a spending plan for your
money, it ensures that you will always have enough money for the things you need and the things
that are important to you (Thomson, 2012). Following a budget or spending plan will also keep
you out of debt or help you work your way out of debt if you are currently in debt. Budgets often
allow companies to have a financial roadmap for business operations.
4.2 State how to manage a budget
There are three basic ways to create, track and monitor a budget which are described as follows:
The Notebook and Pen: With this method, you simply write down all your sources of income
and all your expenses. If they balance, you’re good to go.
The Spreadsheet: The most popular spreadsheet software for budgeting is Microsoft Excel. A
spreadsheet lets you organize a lot of information easily and does the maths for you.
Financial Software: There are also financial software programs, but you need to be computer-
savvy to use them. Quicken is a leading product.
TASK 5
5.1 State the principle of marketing
Marketing involves a range of processes that are used to find out what customers want,
these are known as the 4ps. They stand for Price Product Production and Place. These are the 4
main principals of marketing and one you find out it will help you market your product
successfully. The marketing mix helps you find and convince potential buyers to make a
purchase so you turn a profit and grow your company.
5.2 State the sales process
Each company will have a slightly different way in how they sell their product, for
example in a retail shop such as All Saints the staff may approach a customer when they come
into the shop and politely offer assistance, then will then allow you to shop and only help you
when needed but in other more high end retail stores staff may be told to personally assist each
costumer individually in order to try make a sale (Endtorff, 2012).
In Bakery terms, our process starts with meeting the different needs of potential buyers as per
their requirement. If the customer is happy then only they manufacture next slot. Their sales also
include home-delivery services.

5.3 State the use of market research
Features of marketing research:
1. Continuous process: Marketing research is not only continuous but also a scientific and
systematic process. It is scientific and systematic because it has well-defined procedures.
2. Wide Scope: Marketing is a specialized activity. It encompasses several functions. Thus,
marketing research has a wide scope.
3. Aid to decision-making: It helps the managers take practical decisions. Decisions based on
experience and research is better than decisions based on intuition (Pagell, 2011).
Uses of Marketing Research:
 It guarantees success of marketing campaign, and in-turn sales.
 It help the company to keep a tab on their competitors.
 It helps in minimizing the overall business loss.
5.4 State the value of brand in an organisation
A brand represents the sum of people’s perception of a company’s customer service,
logo, reputation and advertising. Following are the importance of Branding:
 United: Branding links your name, logo, online presence, product/services and appeal to
the masses. Make marketing skills consistent and the content the same across all
channels.
 Sales: Speaking of sales, branding will create sales and revenue for your business.
 Trust: As customers get to know your business they will begin to trust you. In order to
build trust you must give customers a reason to test you out.
5.5 State the relationship between sales & marketing
The relationship between Sales and Marketing has changed drastically in recent years,
and it is crucial that these two groups collaborate effectively. Marketing is holding onto leads
much longer than ever before, and they are focused on developing and nurturing relationships
with leads before handing them off to Sales (Broklyn, 2015). Also, more and more marketing
organizations are bringing inside sales (or lead qualifiers) into the Marketing organization – a
role that used to sit within sales.

CONCLUSION
As per the above report it can be stated that, in order to achieve company's objective
effectively, they are require to shape themselves according to the dynamic changes so that they
can easily fits in them. Also the company is require to be financially viable which gives them the
advantage of higher competitiveness over their rivals.

REFRENCES
Books and Journal
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Amabile, T. and Kramer, S., 2011. The progress principle: Using small wins to ignite joy,
engagement, and creativity at work. Harvard Business Press.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Cragg, W., 2012. Business and human rights: A principle and value-based analysis. Business and
Human Rights, pp.3-46.
Eigen, M. and Schuster, P., 2012. The hypercycle: a principle of natural self-organization.
Springer Science & Business Media.
Koch, R., 2011. The 80/20 principle: the secret to achieving more with less. Crown Business.
Lindsey, W. and Pate, L., 2013. Integrating principle-centered leadership into the business
curriculum: lessons from the LMU experience. Journal of Executive Education. 5(1).
p.3.
Porter, L. and Tanner, S. eds., 2012. Assessing business excellence. Routledge.
Rendtorff, J.D., 2012. Business Ethics, Strategy and Organizational Integrity: The Importance of
Integrity as a Basic Principle of Business Ethics That Contributes to Better Economic
Performance. In Handbook of Research on Teaching Ethics in Business and
Management Education (pp. 274-288). IGI global.
Wu, Z. and Pagell, M., 2011. Balancing priorities: Decision-making in sustainable supply chain
management. Journal of Operations Management. 29(6). pp.577-590.
Online:
Understanding the Evolving Relationship between Sales and Marketing. 2017. [Online].
Available through: <http://www.volarisgroup.com/blog/article/understanding-the-
evolving-relationship-between-sales-and-marketing>.