LSC UoS BA Business: The Crumbs and Creams Bakery Business Plan

This business plan outlines the strategies for launching a new bakery, "The Crumbs and Creams," in the UK. It begins with an executive summary and introduction, then delves into business details, including location and services. The plan includes a comprehensive market analysis, examining the UK bakery industry's size, segmentation, and PESTEL factors. It details product and service descriptions, highlighting the bakery's USP of premium quality and customer service, alongside competitor analysis. An operational plan covers resource management and manufacturing capacity, while risk and contingency plans address potential challenges. The sales and marketing strategy focuses on market share growth and the marketing mix. Financial and funding plans, along with management team details, are also provided. The plan concludes with a summary and references.

BUSINESS
PLAN

EXECUTIVE SUMMARY
The project is built on a new business plan and will emphasize the steps that an
entrepreneur will follow to manage a successful firm. The prospects for the company strategy
will be identified, with the goal of maximizing sustainability and profitability. The study is done
in phases, including identification of the new venture's location, market study, USP of the new
firm, operational planning, risk analysis, market analysis, and preparing the source of money and
budgets that will aid in running the firm competitively. The project will emphasize numerous
stages, each of which will represent the relevant details about the entrepreneur's aims and
operations.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTON............................................................................................................................4
BUSINESS DETAILS.................................................................................................................4
MARKET/INDUSTRY ANALYSIS..........................................................................................4
PRODUCT/ SERVICE DESCRIPTION.....................................................................................6
USP AND COMPETTITOR ANALYSIS...................................................................................7
OPERATION PLAN...................................................................................................................8
RISK AND CONTINGENCY PLANS.......................................................................................9
SALES AND MAKETING STRATEGY.................................................................................10
FINANACE AND FUNDING PLANS.....................................................................................12
MANAGEMENET TEAMS.....................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTON
Entrepreneurship is defined as the capacity to create, organize, and manage a new
commercial operation by identifying and resolving uncertainty that may have a negative impact
on management operations and, as a result, the business, in order to maximize profit and gain a
competitive advantage. An entrepreneur is someone who has the capacity and desire to start a
new company endeavour (Almeida, 2008). Entrepreneurship is the act of creating value by an
entrepreneur who wants to build and thrive in their business. A business venture is the
development of a new firm with the goal of profiting, and it also contains risk, since a business
venture might be small or huge. The goal of the project report is to establish a new business
strategy that the entrepreneur will implement. A business plan will outline entrepreneurial
abilities and how a successful firm was founded by detecting market trends, developing sales and
marketing strategies, researching rivals and industry competition, and managing operations. The
strategy will also include a description of how finances will be managed by the company
operation.
BUSINESS DETAILS
The business plan which has been quoted underneath is based on opening a new bakery
in UK, under the label of “THE CRUMBS AND CREAMS”. The bakery will be operating in
UK and will offer wide variety of confectionaries such as cakes, cookies and patisserie. The
bakery will offer dine-in, take-away and online delivery services through which they can meet
demands of maximum customers. The bakery will also use environment friendly cutlery and
packaging through which they can create and participate in such initiatives that can be beneficial
for the environment.
Location- 89 Elmfield Rd, Potters Bar, United Kingdom
MARKET/INDUSTRY ANALYSIS
The UK bakery business is worth £3.9 billion, making it a substantial portion of the UK
food economy. Therefore, overall volume is over 4 billion units, equating to over 11 million
loaves and packages sold per day (Bernasconi, Harris and Moensted, 2013). In the United
Kingdom, the baking industry is separated into three different communities. The largest (plant)
baking firms generate almost 80% of the bread sold in the UK. In-store bakeries (ISBs) within

supermarkets generate almost 17% of the total, with the rest coming from high-street retail
(craft) bakers. Product Type, Distribution Channel, and Geography
(Hypermarkets/Supermarkets, Convenience Stores, Specialty Stores, Online Retail Stores, and
Other Distribution Channels) are all segments of the global bakery products market (North
America, Europe, Asia-Pacific, South America, and Middle East and Africa).
Market of UK bread production by volume and value
% by volume % by value
Large plant bakers 85 75
High street bakers 3 5
In-store bakeries 12 20
Total 100 100
PESTEL ANALYSIS
This is a marketing technique which helps in identifying the external business
environment and the several factors which are identified are discussed underneath:
Political Factors- Political factor create an adverse impact on profitability of business
and the political factors which influence the bakery industry of UK are level of corruption, trade
regulations, pricing regulations, taxation, political stability and many others factors which are
responsible for affecting business position (Carayannis and Formica, 2008).
Economic Factors- The factors such as inflation rate, interest rate, unemployment rate,
foreign exchange rate and economic growth rate affects the operations of the bakery companies
operating in the economy. The economic activities such as interest rate and other economic
factors affects the economic condition and operations of business.
Social Factors- The factors such as shared beliefs, attitude, demographics, culture,
attitudes and leisure interests are factors which affects the operations of the bakery industry of
the company.
Technological Factors- Technology is one of the factor which affects the functioning of
the company (Casanova, Cornelius and Dutta, 2017). The technology can create an impact on the

products are offered and affects the value chain of the industry. This factor also involves rate of
technological diffusion which can create an impact on the managerial activities and machinery
which are used by the bakery and overall industry.
Environmental Factors- The environmental factors such as norms and standards affects
the revenues and profitability of the bakery industry (Dinis, 2006). The factors such as weather,
change in climate, environmental laws and other waste management strategies and
environmental standards can affect the measures and strategies of the company.
Legal Factors- The legal factors such as employment laws, health and safety laws, data
protection, consumer protection and other legal factors affects the operations of the bakery
industry which can create an impact on the profitability of bakery industry in UK (Doerr, 2019).
PRODUCT/ SERVICE DESCRIPTION
THE CRUMBS AND CREAM
Menu
Cakes
Chocolate Macaron Cake
Classic Carrot Cake
Apricot Cheese Cake
Blueberry Cheese Cake
Patisserie
Canele
Tarte Myrtille
Chocolate Éclair
Moellux Chocolate- slice
A Dozen Mini Macarons
Cookies
Walnut cookie
Oatmeal Raisin Cookie
Cinnamon Sugar Cookie

Nutmeg Cookie
PRODUCTS- The products offered by the business venture will majorly focus on
offering premium and best quality raw materials through which they can deliver premium quality
products to the customers and attract more customers. The products which are offered by the
business venture will be purely eggless and will be made with premium quality and fine raw
materials through which the bakery can maintain the standards and hygiene level of the
company. The products which will be offered by the business venture are listed above in the
menu.
SERVICES- The bakery will offer dine-in, takeaway and online delivery services by
partnering with delivery companies through which they can meet customer demands and
competitive business scenario. The bakery will ensure that the customer service offered by the
venture is best through which they can meet customer satisfaction and maximize their profits.
USP AND COMPETTITOR ANALYSIS
USP- The USP of the company is to deliver premium quality raw materials and ensure
effective customer service through which they can establish and maintain their competitive
position in the industry. The Crumbs And Creams promises to deliver high quality food, fast and
friendly services, clean and sanitized environment and will also use environmental friendly
cutlery and packaging through which the venture can contribute in environment friendly
practices. The venture will focus on making value for money for the products and services which
will be provided by the company.
COMPETITOR ANALYSIS- Competitor analysis is a strategic management process of
identifying strengths, weakness of current and potential competitors. The process also helps in
evaluating rivalry companies, products, sales and their marketing strategies (Duening, Hisrich
and Lechter, 2020). The competitor analysis must be aligned with several requirements such as-
who the target market is, what are the core problems and how the problem can be solved.
Competitor analysis approaches contribute in the evaluation of a variety of factors, some of
which are included below:

 Design a Go-to-Market strategy- An effective GTM strategy should be based on
analysis of market customers, competitive pricing strategy, products offered and channel
which are used by the business to reach out to customers (Evers, Cunningham and
Hoholm, 2014). With the help of an effective competitor analysis, it helps in
understanding market dynamics which facilitates in forming effective strategies that can
support in reaching target customers and determine how business and offered products fit
in the current scenario.
 Determine strength and weakness- An effective competitor analysis must be helpful in
determining strength and weakness of competitor and own company in the industry that
can support the venture in forming effective plans and strategies which will be helpful in
creating and maintaining brand image in the industry.
 Identify the strategies of competitor companies- By determining the strategies such as:
pricing, sales, marketing strategy of competitor companies in the industry will support in
identifying the procedures which are followed by existing companies for attracting more
customers, generating higher revenues and maximizing profits (Garcia, Leles and
Romano, 2017). This will also help the new venture in forming innovative strategies that
can attract more customers and earn higher profits.
OPERATION PLAN
The entrepreneur will carefully plan all of the bakery's operations and activities, which
will aid in running a successful and lucrative firm for a long time. The following are all of the
procedures that the entrepreneur performs in order to start and operate the bakery:
 Resources- Most of the other resources utilized in the bakery will be continuously
monitored, which will assist to reduce waste, save money, and improve time
management.
 Planning and organizing- This will aid in determining what actions will be carried out,
how much resources will be spent, and what services firms will provide, as well as
tracking all activities and comparing actual performance to standard performance.
 Monitoring and controlling- By constantly monitoring and controlling all operations, it
will be easier to track the bakery's performance and spot deviations, allowing for

corrective action to be made to improve the performance and, as a result, a higher
reputation in the industry.
 Manufacturing capacity- By carefully planning all expected demand, the entrepreneur
will be able to better control the quantity of raw materials required, as well as decrease
wastage (Hampel, Perkmann and Phillips, 2020). Serving the appropriate amount of food
for the appropriate dish will aid in fulfilling customer demand and maximizing resource
use.
 Raw material- All of the bakery's food ingredients will be obtained from the most
genuine food stall that can give premium grade foods. The entrepreneur will create a list
that is a layout of all the goods that are required on a regular basis in order to reduce
material waste and maximize the use of all raw materials.
RISK AND CONTINGENCY PLANS
There are various elements that might pose a threat to the bakery and act as important risk
factors that have an influence on the bakery's managerial function. Some of the responsible
variables that function as risk are listed below, along with many ways that will be applied to
mitigate such risk:
FACTORS OF RISK IMPACT STRATEGIES
Pricing strategy Pricing for the bakery goods
and services has a higher
chance of influencing
customers' purchase
decisions, which has a direct
impact on sales and
profitability.
Client retention may be
increased by delivering a
diverse range of things in an
effective and appealing
manner. The menu items will
be properly detailed, helping
guests to have a better
knowledge of what they are
ordering (Herrera, Guerrero
and Urbano, 2018).
Menu This is one of the most major
risk factors that can affect
customers ’ experience.
The bakery will be able to
achieve a win-win scenario
by monitoring competitors

and adopting a competitive
pricing strategy (Johansson,
Karlsson and R Stough,
2008). To attract as many
customers as possible and
generate as much income as
possible, the bakery will
charge reasonable and
moderate prices.
SALES AND MAKETING STRATEGY
Sales and marketing are critical components of how an organisation performs and how
well it conducts its business. In order to achieve better results, the new bakery needs have a
strong sales and marketing strategy. In the context of the chosen bakery, a sales and marketing
plan including marketing concepts must be created.
• To grow market share by 30% during the first six months.
• Using proper marketing methods, grow sales by 50% in three months.
Marketing Mix
Marketing mix technique is a plan of actions which supports a business in promoting
their brand, products and services in the market. In other words, it can also be called as set of
marketing tools which helps a business in meeting their marketing objectives and target market
(Kitsios, Papachristos and Kamariotou, 2017). The marketing mix technique involves 4 P's of
marketing which are product price place and promotion. The marketing mix for the chosen
bakery is as follows:
Product- Identifying the organization's products and services for the wider community.
As a result, the selected bakery offers a diverse choice of products and services to its customers
in order to satisfy them and improve their dining experience (Lounsbury and et.al, 2019). The
menu offered by the bakery involves- Chocolate Macaron Cake, Classic Carrot Cake, Tarte
Myrtille, Chocolate Éclair, Walnut cookie, Oatmeal Raisin Cookie and Cinnamon Sugar Cookie

which diversify the range of products and attracts more customers. The bakery will ensure that
the taste, quality and presentation of the products which will be offered by the bakery will be of
fine quality through which market demands can be met.
Price- This marketing factor is one of the major factor which can attract and retain huge
number of employees and help business in maximizing their profits. The bakery will target
customers from high class to middle class customers by using moderate pricing strategies. By
using competitive pricing strategy, it will help the bakery in generating higher profits by offering
discounts, offers, vouchers and other attractive coupons. The pricing strategy which will be
followed by will be cost-plus pricing strategy that will help them in earning good revenues.
Place- As the location and place is one of the another important factor which affects the
profitability and this is the major factor on which the sales and marketing strategy of a business
relies on. In relation to the bakery, the location is near to famous tourist place which will help in
attracting numerous customers and earn maximum profits (Martinez, Fuensanta and Rodríguez,
2013). The bakery will be operating in the famous locations of UK which will be an advantage to
attract customer and increase the brand awareness.
Promotion- Promotion is a marketing approach which helps a business in promoting and
advertising their selling products in order to attract more customers, increase brand awareness in
the industry. In relation to the bakery, the business venture will use different promotional tools
and techniques which involves modern as well as traditional patterns of advertisement. The
approaches so promotion which will be used by the bakery involves- newspapers, TV,
advertisements and other social media platforms, such a Twitter, Instagram and Facebook
through which all range of customer can be attracted and profitability of business can be
maximized.
STP approach
This model helps in identifying the products and services and how to deliver their
benefits to a specific target market or segment. This is a three step model which involves-
segmentation, targeting and positioning and is a strategic approach in modern marketing. The
STP model is a product centric approach to a customer centric approach which focuses on

targeting different groups of customers more efficiently. Here below is implementation of STP
strategy for the bakery in explanation:
Segmentation- This factor involves segmentation of market on the basis of different
factors which involves- behavioral, demographic, geographic and psychographic segmentation.
According to the business plan of bakery, the market will be segmented on the basis of
geographical and demographic segmentation (Modrego, F and et.al., 2015). The venture well
segment regions of London and will target the customers based on their age, gender and financial
status. The company will follow appropriate strategies which will help them in meeting
psychographic segmentation factors in order to satisfy the needs of customers and target those
customers who majorly focus on the product range offered by the bakery.
Targeting- Targeting is another important aspect which is met by this approach and this
further helps in meeting the demands of the customers. In order to the describe bakery, it can be
seen that different segments will be targeted by using appropriate strategies that can help the
business in generating higher revenues and maximizing the profitability (Shum and Lin, 2010).
The business venture focus on wide coverage and higher customer reach by forming innovative
and constructive strategies that can help in managing the cost.
Positioning- This is the last phase of the STP approach which supports the business in
positioning the products and services offered by the company in the target market (Vassallo, ed,
2016). In relation to the business venture, the bakery will use strategies which is based on
planning that can help them in positioning the product to meet the demand of customers at right
time and at right location.
FINANACE AND FUNDING PLANS
The following are all of the financial resources that the entrepreneur employed in
building and planning all of the resources that will assist in managing the business:
RESOURCES ESTIMATED COST
Human Resource Cost £20000
Logistics Cost £10000
Operational Cost £25000
Raw material Cost £10000

Maintenance Cost £10000
TOTAL £75,000
Source of funding- The source of funding and management of financial resources has done
through two sources, which involves:
 Personal investment- As I use to work in bank and I use to save some ratio from the
salary amount regularly and due to the global pandemic, I received a redundancy
payment which has been a major source of financial resources which are used or opening
a bakery in United Kingdom.
 Venture capitalist- Angel investors has been another source for management of financial
resources which has been used for opening a bakery in United Kingdom.
MANAGEMENET TEAMS
While managing the team, numerous elements will be kept in mind so that the business
venture may successfully execute their tasks and fulfil the necessary performance standards,
objectives, and develop their goodwill in the industry. Some of the functions that will be seen are
mentioned below:
 Personnel management- One of the major functions that the venture must perform is
staff and personnel management, as it will aid in the establishment of a cordial
relationship with personnel within the venture, allowing them to maintain effective
performance and motivating their employees to willingly participate in managerial
activities and perform effectively (Wang, Liu and Dai, 2010).
 Finance management- Effective finance management is one of the functions that will be
heavily focused and routinely reviewed in order to manage excessive spending and keep
track of all expenditures made.
 Raw material management- The supervisor of bakery will regularly monitor the inflow
and outflow of all raw materials which will be utilized by the bakery (Welter, 2019). By
regularly monitoring the utilization of raw material and effectively maintaining the
inventory will be a productive strategy for reducing the waste, saving time and

minimizing the cost. Such strategies will help in increasing the brand value and goodwill
in the industry.
CONCLUSION
From the study, it can be concluded that entrepreneurship is an inherited skill that gives a
person the ability to take a risk and start a new company initiative. An entrepreneur receives an
advantage in analyzing possibilities, hazards, and factors that may impede a company's
profitability and operations by recognizing several internal and external business environment
aspects. As a result, such techniques aid in the creation of market brand recognition as well as
the generation of increased sales and profits. It assists the organisation in identifying risks and
managing activities that will be conducted by the firm by strategically planning and assessing the
market.

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