Business Report: Cakes and Buns - Industry Analysis and Business Model

This business report provides a detailed analysis of Cakes and Buns, a bakery operating in Australia. The report begins with an executive summary and an introduction to business reporting, emphasizing its importance in decision-making. Part A explores the industry background, business model, value proposition, SWOT analysis, and Porter's Five Forces. The business model is broken down into core capabilities, partner networks, customer relationships, distribution channels, cost structure, value proposition, target customers, and revenue models. The SWOT analysis highlights strengths, weaknesses, opportunities, and threats, while Porter's Five Forces assesses competitive rivalry, the threat of new entrants, the bargaining power of suppliers and customers, and the threat of substitute products. The report concludes that the analysis of the Cakes and Buns business can help in taking competitive advantage from its competitors and achieving higher profitability.

Business Report

Executive Summary
Business report is a written document which define the formal process of the company. It
is very important for the company to get desirable success. Cakes and Buns is a bakery in
Australia which provide quality products to its customers. It define their process in effective
manner to attain competitive advantage and get higher satisfaction by its customers by proving
quality products. The main aim of this reports is to evaluate the SWOT analysis of the company
and also understand about the Porters 5 forces in order to achieve positive results.

Table of Contents
Executive Summary....................................................................................................................2
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Industry background....................................................................................................................1
Business model and environment: .............................................................................................1
Value proposition........................................................................................................................3
SWOT analysis of Cakes and Buns:...........................................................................................3
Porters five forces:......................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business reporting is a design of company frameworks which consist of various valuable
aspects of its current and previous background. It is a written document for a setting up a new
venture. For an example mentioned under this project report of Buns and cakes company. The
main objective of BR is to convey the information to assist in business decision-making. It is
used to identified various business issues and to record all the necessary information of the
company in order to prepared future plan (Loshin, 2012). The project report consist of two parts:
In the first part company's background and it operations are discussed. The external and internal
aspects which are affecting the businesses of the cited company are discussed. The second part,
is a technical part which is based on designing of a new portal mock- up. The analysis of all the
information in order to present a positive image in the market.
PART A
Industry background
A bakery business is an organization that make and sells flour based food backed in an
oven such as bread, cookies, cakes, pastries and other related items. It provides freshly prepared
bakery and pastry items at all the times during the business operations. In the starting of such
kind of business operations, a person need to support form other parties to guide our business to
take off. The cakes and Buns was originated in 1985. it was first started as a stand at the local
market were it was used it as a ways of supplementing their university costs. In very quick time
they got large follows of customers (Saunders, 2011). The unique and sweet creation of fruits
flavours to differentiate themselves from the other products. The first shop was opened in 1990
for coming 3 years they tried to face their strong competitors as Brumby's and Bakers Delight.
They currently have three new stores in various parts of Australia. But they receive more interest
from its outside customers of Germany, Sweden and Japan.
Business model and environment:
A business model is explain the rationale of how an organisation such as bakery
businesses can create, deliver and captures values and other contexts (Sekaran and Bougie,
2016). The process of business model is the structure of business strategies which a company
going to implement in its business operations. The business model for Bakery operations are
categorised into various phases such as:
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Illustration 1: Business model
(Source: Business model, 2017)
 Core capabilities: The first stage of business model of cakes and Buns are divided into a
core business which require a well organised plan to operate this kind of businesses.
 Partner network: The other aspects of this model is a commercial business entity with
which another other commercial entity has some form of alliances. Both are working for
the same motive to gain maximum profit from the businesses.
 Customer relationship: The motive of bakery business is to provide more delicious food
through which maximum number of customers can attract towards their shop.
 Distribution channel: The main objectives of this kind of business is to make available
for raw material and transform it into finished goods. The chain of food supply can be
more specific so that goods which transfer from supplies to customers can be reached in
more effective manner.
 Cost structure: The framework of various types and relative proportion of fixed and
variables costa that a concern businesses incurred during the production process.
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 Value proposition: It is a promise of value to be delivered. It is the most valuable reason
a customer should buy from the concern business entity.
 Target customers: As, this particular business of Cakes and Bun are more favourable to
the children and young people. The company's main target is to capture those segment
which are more interested in buying cakes and Buns.
 Revenue model: It is a complete framework for incurring maximum profit from this
particular businesses. It help to identifies which revenues scope to pursue, what value to
offers to customers and at what prices the value can be maximum. It is considered as
crucial elements of business model.
Value proposition
Value proposition is an business segments which is used by the company to define that
why customers buy and use products and services. Cakes and buns define their quality products
to its customers in order to achieve the higher profitability in appropriate manner. This process
of segments of the company follows various formats to understanding the specific needs of the
customers and achieve positive results (Abor and Quartey, 2010). Basically value proposition is
an important process of the overall marketing which tells about its business process that define
effective process to make appropriate benefits to its products and services in effective manner. It
is an effective part of the business strategy which is totally define the value proposition of the
customers. One of the main advantage of this process is to analysis and review of the benefits,
cost and value services that providing as well as deliver to its final customers. It is define the best
positioning the value of the business that define in the marketplace and its customers mind.
Cakes and buns define systematic statement that include clear and measurable benefits when the
customers buy its products and services.
SWOT analysis of Cakes and Buns:
Cakes and Buns is a small business which having multiple stores in street market. They
wants to expand their business by promoting their products and service to local market and
corporate catering market (SWOT Analysis, 2017). They define their business in order to get
higher profitability to achieve customers satisfaction in appropriate manner.
Strength Weaknesses
 Brand name is one of the big strength  Rival is one of the biggest weakness of
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of the Cakes and Buns.
 They provide unique and quality
products at affordable cost.
 Customers loyalty is also a positive
aspect of the company.
 They generate high profitability in
revenue every years.
 Cakes and Buns include their staff
members with high capability and
skilled so that they manage all the
process in appropriate manner.
the company.
 Low brand image is also a negative
aspects which loose customers towards
it products and services.
 Lack of experience is also a weakness
of the company
 Health conscious customers are also
reduce the sale volume of the company.
Opportunities Threats
 They expand their products line in
international markets.
 Use of new technology is also a one of
the biggest opportunities in their
process to generate more and more
revenue (Chen, Chiang and Storey,
2012).
 New market and new products is also a
positive opportunities of the company.
 The big threat of the company is
competitive market.
 They also face price wars which lead to
reduce the sale of the company.
 Product substitution in market at
cheapest rate.
 Government regulation create conflicts
in business process.
Porters five forces:
It is an essential tool to analysis the competition of the business in marketplace. All these
factors are more important for the business to evaluate the effective process in order to achieve
competitive advantage in appropriate manner.
Threat of new entrants to a market: In this force, It define the new and profitability company
attract the new firms which decrease the image as well as profits of the another company. It
totally depend on the company size and economic scale (Zikmund and et. al., 2013). It is depend
on the capability of the potential company that operate their process at geographic regions.
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Bargaining power of suppliers: It is totally depend on the suppliers ability to drive up the price
of the products and service. It define the market inputs like raw materials, labour and other
services which is include by the company.
Bargaining power of customers: It define the power of buyer which affect the price and quality
of the products. It show the customers ability to drive price down. This process affected by the
customers and company which switch from one brand to another.
Threats of substitute of products: In this force the customers are switch from one products to
another which is competitors of the company. It define the various competitors which define the
same quality and same price of the products. This threats define the switch cost of the products
and service which offer by the company to its customers.
Overall degree of competitive rivalry: In this process it define the number of competitiveness are
exist in the market with same size and market position (Siltaoja and Onkila, 2013). So that the
growth of the company is very low due to various competitors over there. It increase the price
war in the market so that company face more competition.
All these factors and SWOT of the Cakes and Buns helps in taking competitive advantage
from its competitors and get higher profitability in appropriate manner. In this process that
manager of the company identify new and innovative trends which aid in improving the
company performance as well as profitability of the company in order to achieve higher success
at aggressive marketplace.
CONCLUSION
From the above project report, it has been articulated that business reports are used to
identified that how company are managing there business operation. The project summarised as
the company which are operating in cake and buns business. As, there background analysis and
various business model on which they operations are conducting. It also consist of SWOT and
Porter model to analyse the cake and buns business. All those analyse which are collected from
the concern business are prepared under a report on that basis various decisions can be made.
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REFERENCES
Books and Journals:
Abor, J. and Quartey, P., 2010. Issues in SME development in Ghana and South Africa.
International Research Journal of Finance and Economics. 39(6). pp.215-228.
Chen, H., Chiang, R. H. and Storey, V. C., 2012. Business intelligence and analytics: From big
data to big impact. MIS quarterly. 36(4).
Loshin, D., 2012. Business intelligence: the savvy manager's guide. Newnes.
Saunders, M.N., 2011. Research methods for business students, 5/e. Pearson Education India.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Siltaoja, M.E. and Onkila, T.J., 2013. Business in society or business and society: the
construction of business–society relations in responsibility reports from a critical
discursive perspective. Business Ethics: A European Review. 22(4). pp.357-373.
Zikmund, W.G and et. al., 2013. Business research methods. Cengage Learning.
Online
SWOT Analysis. 2017. [Online]. Available
through.<https://www.mindtools.com/pages/article/newTMC_05.htm>. [Accessed on
2nd October 2017].
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