Business Plan: Loco Bakery - Introduction to Business ITB Report

This report presents a business plan for Loco Bakery, a vegan bakery aiming to establish a market presence by catering to the growing demand for animal-free products. It details the company's mission, vision, and objectives, focusing on sustainable and ethical practices. The report outlines the bak...Read More

Introduction to
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Description of the Business Plan............................................................................................1
How to Make the Business Functional...................................................................................2
Organisation and Management...............................................................................................2
Internal and External Business Information Using SWOT....................................................3
Business Analysis Using Models and Theories......................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Business refers to the activity of manufacturing products or services and selling them in
order to create profits. Business plan is a structure that states how a business should be developed
in order to gain more and more customers and incur higher profits. The report will include a
discussion of a new business and its plan to cover and gain a foothold in the market area.
Moreover, the report will cover an analysis of how the business will function and what strategies
would it adopt to be successful in the market. At the end the report will include an analysis of
internal and external factors that affect the business along with a marketing analysis to identify
the customers.
MAIN BODY
Description of the Business Plan
A business plan refers to a series of actions and steps that are planned or framed in order to start
a business or an organisation (Freudenreich and et. al., 2020). Bakery refers to a business that is
involved in preparation of baked products such as cakes, cookies, bread etc. to be directly sold to
the customers.
Overview of the Business
The business plan of creating Loco Bakery is formed after considering all the factors that
are required in order to start a bakery business. Due to the recent changes in the taste and
preferences of people there is a possibility to create such a bakery that would have exemplary
effects on the market.
Mission, Vision, Aims and Objectives of the Business
In today's world baked products are highly in demand which can be traded with an
individual or more people in order to provide them with quality products. It has been observed in
the recent trend that people are moving towards veganism; therefore Loco Bakery would have a
mission to fulfil the demands of such people and provide them sustainable options to enjoy best
quality products. The vision of the bakery would be to serve people with animal free products
with the aim of gaining first mover advantage with newly designed products (Nica, 2021). The
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long term objective of the company would be to create more and more demand for vegan
products and create awareness among people about the animal abuses that are prevailing due to
the use of animal based products.
How to Make the Business Functional
To cover a huge market area and expand the business the Bakery would provide its unique
products to individuals as well as other units such as cafeterias, burger shops, etc. according to
their choices, demands and preferences. The Loco Bakers will offer vegan cakes, pastries, vegan
confectionery products that would be produced in the bakery and serve to the people. It will also
be serving handmade cookies in different flavours like chocolate truffle, Kessler sandwich,
walnut Choco chip, etc. The Loco Bakers will offer high quality products and facilities to
customers in order to influence them towards the brand.
The company will start its production with one Bakery and distribution unit and will mainly
produce cakes, pastries and confectionery products during the initial month of starting (Trapp
and Kanbach, 2021). The company would serve high quality products with reasonable prices that
would be liked by customers and they would prefer to buy more. The company would have on-
order production services as well as already prepared products that would be options for
customers to purchase products and have easy access to the shop.
Organisation and Management
The Loco Bakery will be created at Penn Road, Wolverhampton, in the UK, near TESCO
superstore and a McDonald's and KFC shop. The company will be near to three main locations
where the Loco Bakers could sell their products, the advantage of establishing their Bakery at
such a location which is quite busy and contains frequent movement of people would make the
Bakery more consistent in the eyes of people. The organisation will be started as a partnership
business including two people who would be the owners and managers of the business (Oehlhorn
and et. al., 2020). The production unit will be controlled and managed by one of the owners
whereas the sales shop would be managed by another owner according to their qualification in
production of breads and sweets and another in the marketing and sales management.
The business will require qualified professionals in order to produce high quality breads
which will be vegan in the origination and could fulfil the requirements of their customers. The
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employees in the production unit would be trained and well equipped in order to create products
in new manners with the use of new methods without the use of dairy products or any animal
based products, to create vegan bread. The sales unit or the shop will be managed buy another
owner and it will require people who have reasonable skills to serve customers in better ways
and create awareness among them about their listed products and its health benefits.
Internal and External Business Information Using SWOT
SWOT analysis is a effective tool that is used by businesses to evaluate their internal strengths
and weaknesses as well as the potential threats and opportunities for the business in the
extrinsic market. SWOT analysis is helpful in many ways to a business and informs the
business about its strengths and weaknesses that could turn out to be the threats or
opportunities for it. SWOT analysis for the Loco Bakery is given below:
 Strengths: In today's world the demand for vegan products is rising continuously with the
rise in knowledge and awareness among the people about the cruelty on animals for their
products. The Loco Bakers will be producing vegan products that would serve people with
their unique needs and show its moral values in terms of creating a better place for humans
as well as animals.
 Weaknesses: The bakery does not have many weaknesses in the existing market but it would
be challenged by the existing Bakers who would be trying hard to push Loco Bakers out of
this market. The company is new and does not hold a strong foothold in the market therefore
it could be purchased out of the market easily.
 Threats: The first threat on the company would be from the existing producers in the Bakery
industry (Marques and et. al., 2020). The company would face challenges from those
producers who would lose their customers for better and health conscious products of loco
bakers.
 Opportunities: Loco Bakery will have a great opportunity to cover the market as it would be
among the few Bakery units that would be going vegan in their production. The company
would have opportunities to cover large market areas due to its any products and low entry
barriers in the Bakery industry.
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Business Analysis Using Models and Theories
Business analysis helps to identify the needs of business and what should be done in order
to make the business successful. It helps to identify the competitors, market and the
consumers of the products and services of the company and help it to act accordingly.
STP analysis to study the market and customers
STP analysis can be elaborated as segmenting, targeting and placing, this three aspects helps a
business to segment their target market and customers to place their products at the locations
where most of the customers could be covered (Salvato and et. al., 2020). STP analysis of Loco
Bakers is given below:
 Segmenting: The Loco Bakers will mainly focus on the taste, preference and purchasing
power of the customers to segment their products in the market.
 Targeting: The target people of the company would consist of the people from all the age
groups and classes including mostly the people who are willing to go vegan and have better
healthy lifestyle.
 Placing: The Company will place its products along a busy Street at Wolverhampton in UK
near a shopping complex, a Berger distributary and KFC shop where the company could get
the views of maximum number of customers.
Competitive Analysis Using Porter’s Five Forces
Porter's five forces is effective tool or framework that can be used by companies to identify and
know the existing competition as well as understand the competitiveness of their organisation in
the existing market (Thrift, 2020). Porter five forces framework to analyse the competitive
market of Loco Bakers is as follows:
 Existing Rivalry (high): the competition between the existing competitors would be high
because there are lots of customers and shops dealing in bakery products. Loco Bakers will
have to compete with the existing customers in terms of its quality, price, differentiation and
their relation with the suppliers. In the market there exist many suppliers in the Bakery
industry therefore the competition will be high among the existing market.
 Threats of new entrants (High): The power will be low for barriers of entry as economics
of scale is beneficial which will help the business to enter the market with a small amount of
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capital. For Loco Bakery two main determinants would be helpful in its success i.e. ability
of leader to acquire sufficient distribution channels to build brand recognition and loyalty
among the customers.
 Bargaining power buyers (Moderate): The Bakery business is a well-developed market
where many buyers exist who does have subsequent negotiating power. The customers for
Bakery products could rely on supermarkets, hotels, convenience stores or grocery shops
that make their negotiating power moderate to affect the prices of Loco bakers.
 Bargaining power of suppliers (Low): the Bakery business is a well-established market
industry where many suppliers exists therefore they have less negotiating power (Dalwai and
Salehi, 2021). The Loco Bakery can be affected with the change in prices of raw inputs due
to global supply and demand determinants.
 Threat of substitute (Moderate): although Loco Bakers have their distinct products a
superior quality and a new concept of vegan baked products there exists other Bakeries
which could turn out to be the substitute for it product. Even though the products may be of
high quality and have higher values for health the customers could move to other bakers for
purchasing their products.
The marketing plan of the Loco Bakers would use online banners and posters,
advertisements and social media such as Instagram and Facebook to market its products
directly to the customers. It will attract its customers with the help of promoting its shop as
sustainable, healthy and ethical with its variety of tasty products that are just like homemade.
The company would be focusing on making promotions on daily basis and cover the local
community with their products, further the bakers would expand globally with its products
along with a strong brand name.
CONCLUSION AND RECOMMENDATION
In the following report there had been discussion about a bakery shop that is to be started
newly. The report had been covering a description about the bakery industry and establishment
of new business in this market. The Report had been showing an evaluation of business strategy
and how the business could get success in the market. Further there had been a evaluation of
business intrinsic and extrinsic strengths, weaknesses, opportunities and threats that a business
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should know in order to gain advantages and be aware of problems. At the end the report had
been analysing the competitive environment of the business with the help of porter’s five forces
and the market analysis with the help of STP. To cover the market the company could utile these
statistical tools and models and increase its business in the market.
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REFERENCES
Books and Journals
Dalwai, T. and Salehi, M., 2021. Business strategy, intellectual capital, firm performance, and
bankruptcy risk: evidence from Oman's non-financial sector companies. Asian Review of
Accounting.
Freudenreich, B. and et. al., 2020. A stakeholder theory perspective on business models: Value
creation for sustainability. Journal of Business Ethics, 166(1). pp.3-18.
Marques, F. C. and et. al., 2020. A system dynamics-based approach to determinants of family
business growth. Annals of Operations Research. pp.1-21.
Nica, M., 2021. Economic development and business creation. Economic Change and
Restructuring, 54(1). pp.219-239.
Oehlhorn, C. E. and et. al., 2020. Human resource management and its impact on strategic
business-IT alignment: A literature review and avenues for future research. The Journal of
Strategic Information Systems. p.101641.
Salvato, C. and et. al., 2020. Natural disasters as a source of entrepreneurial opportunity: Family
business resilience after an earthquake. Strategic Entrepreneurship Journal, 14(4). pp.594-615.
Thrift, N., 2020. Virtual capitalism: the globalisation of reflexive business knowledge (pp. 161-
186). Routledge.
Trapp, C. T. and Kanbach, D. K., 2021. Green entrepreneurship and business models: Deriving
green technology business model archetypes. Journal of Cleaner Production. p.126694.
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