Report on Marshfield Bakery: Entrepreneurship, Growth, and Challenges

This report provides a comprehensive analysis of Marshfield Bakery, a UK-based small medium enterprise (SME) in the bakery industry, focusing on its entrepreneurial aspects. The report begins with an executive summary and introduction to the company, which was established in 1985 and inco...Read More

Report

Table of Contents
Executive summary..........................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
The nature of the entrepreneur....................................................................................................4
The start-up processes.................................................................................................................4
The business concept and any sources of competitive advantage...............................................5
The current level of demand and the competitive environment..................................................5
The growth and development of the business (discuss the market share)135............................6
The challenges of managing and running the business125.........................................................6
The SMEs current growth and development strategy.................................................................7
Government support measures to help the business overcome the challenges faced.................8
CONCLUSION................................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
REFERENCES:.............................................................................................................................10
Books and Journals...................................................................................................................10

Executive summary
It has been analysed that entrepreneur plays a significant role in the making the business
more successful in the market. Start up process and the level of the competition has been
analysed. Porter five forces and ansoff matrix of the organisation has been analysed. It has also
been evaluated that internal and external factors of the business environment affected the
operational activities at the workplace.

INTRODUCTION
To carry out the learning of this report, Marshfield bakery has been undertaken into the
account. This company was started in the year 1985 but the operations were incorporated in
2005. company's headquarter is located in the Chippenham, United Kingdom. They are
producing fresh and handmade cakes into the market and other various types of bakery items.
They have mainly operations in the market of the UK and Europe (Audretsch and Moog, 2022).
They are small medium enterprise that is present in the market of the UK country. This reports
aims to analyse that how the entrepreneur takes necessary steps in order to compete in the
market. Another main of this report is to find out the development options for the organisation
and also finding out the various internal as well as external factors that can affects the
operational activities at the workplace. These are the various challenges that are being faced by
the organisation.
MAIN BODY
The nature of the entrepreneur
Entrepreneurship can be defined as the person who a person who undertakes the risk in
order to start a new business in the market. Main aim of the entrepreneur is to earn maximum
market share as well as the profits through which they can enhance the brand image of the new
business. In relation to the entrepreneur of the Marshfield bakery they are busy in the bakery
business through which they serve variety of the bakery products in the market of the UK. It is
owned by the Unilever company (Ratten and Usmanij, 2021). The entrepreneur has involved in
other business before and it is the new business that they have started in order to generate profit
with the aim of providing delicious bakery products in the market. In the business the
management department ensures that they provides various kinds of bakery products like
handmade cakes, snack bars, biscuits, seasonal goods, etc. mainly in the boundary of the UK and
Europe. They are also approaching the SWMAS who can help them to introduce new
innovations and techniques of production in order to enter the new markets.
The start-up processes
The business was started by the owners of the company with the aim of providing bakery
products in the market of the UK and Europe. Entrepreneur of the company has seen the biggest
opportunity in order to enter into the food and retail industry. They have raise the funds from

various sources. But one of the main sources that they used at the time of the start up are the
bank loans. It facilitates the organisation to carry out the operations smoothly when they have
started the business. They have started the business with approximately 50 employees. At the
time of the start up they have a very small start up as for the first time they were entering into the
food and retail industry. Organisation faces several challenges at the time of the start up because
there so many competitors present in the market related to the bakery businesses (Lipset, 2018).
They faces so much competition at that time as and it also affects the profitability of the business
at that time. Another challenge that the organisation faces is of the promotion of the new
business in the market.
The business concept and any sources of competitive advantage
One of the main idea and the purpose of the business is to serve the quality bakery
products into the market through which they can capture a good share in the market. Managers
of the business has the main to set up the bakery stores across the market of the UK and Europe.
They also wanted to establish as a valuable brand in the market through which they can generate
more profits in the future. They have introduced various new techniques of production in their
business through they able to attract large number of customers towards their business. The thing
that makes them apart from the competition is that they make fresh handmade cakes that helps
them to get the competitive advantage (Morozova, Popkova and Litvinova, 2019). Through this
they become able to stand out from the competition in the market because there are very few
bakery businesses that are selling fresh handmade cakes. Marshfield bakery is using much
advanced technology in order to produce variety of bakery products in the market which
facilitate the organisation to give competitive edge to the competitors.
The current level of demand and the competitive environment
Porter's five forces: It is an effective framework that is used by the organisation and the
business firms through which they can analyse the competition that is present in the market and
which can affects the operations of the business. It includes mainly five components that are
described below in relation to the Marshfield bakery:
 Competition in the industry: It means that how many competitors are present in the
market that can affects the operational activities of the business (Brush and et.al., 2019).
Larger number of the competition decreases the power of the businessman. In relation to

the Marshfield bakery, they generally faces huge competition in the market of the UK as
there are so many bakery businesses are present.
 New entrants: There is a high degree of risk for the Marshfield bakery of the new
entrants that come in the market.
 Power of suppliers: They have a healthy relation with the suppliers in the market
through which they buy raw material from the suppliers. There is a low degree of the
power of the suppliers for the Marshfield bakery.
 Power of customers: There are various options present for the customers from where
they can buy cakes and bakery products (Alvarez and Barney, 2020). So there is a high
degree of risk present for the Marshfield bakery as the customers can shift to the other
brand.
 Threat of substitutes: It is the last part of the porter five forces that means that
substitutes of the goods and the services can be easily in the market. Marshfield bakery is
producing bakery products in the market and the bakery products are easily available in
the market.
Marshfield bakers is currently generating £2m in the market and the company faces so many
competition in the market of the UK. This affects the operations of the business activities.
The growth and development of the business (discuss the market share)135
Marshfield bakery has capture a good market share in less time. They have started their
business in the food and retail industry for the purpose of establishing as a valuable brand image
in the market. Their growth trends shows that in the starting time they were doing a great sales in
the market because they are busy in selling the delicious bakery products to the customers. But at
the time of the COVID-19 their growth trend shows a decline because at the time of the Lock
down their business got completely affected at that time (Sutter, Bruton and Chen, 2019). It
shows a great decline because the profits of the company has decreased to a great extent. After
the COVID-19, Management department of the company has made effective strategies in order
to again gain the good market share and through they become able to generate good profits in the
market.
The challenges of managing and running the business125
PEST analysis

It is an effective analysis that helps the organisation and the business firms to analyse the
internal as well as external factors which can affects the operations of the business. PEST
analysis has been mentioned below in relation to the Marshfield bakery:
 Political factors: This factors includes various component like rules, regulations,
taxation etc. This means that the how much the government interfere in the activities of
the business. In relation to the Marshfield bakery, they easily carry out the operational
activities in the business as their so much political stability in the country of UK.
 Economic factors: Marshfield bakery limited business was completely got affected at
the time of the COVID-19 (Landström and Harirchi, 2018). This has affected the
profitability of the business to a great extent.
 Social factors: It means that the organisations and the business firms should carry out the
operational activities in regards to the society. Marshfield bakery limited ensures that
they analyse the needs and wants of the customers and according to that they produce
bakery products.
 Technological factors: This means that the organisation and the business firms should
use effective techniques of production through which they can generate more
productivity in the goods and services. Marshfield bakery uses updated technology in the
company through which they become able to give tough competition in the market.
The SMEs current growth and development strategy
Ansoff Matrix
 Market penetration: It means when the organisations tries to increase their sales in the
existing market with the existing products or the services. This is done through various
types of promotions.
 Market development: This strategy of this matrix will be much beneficial for the
Marshfield bakery (Welter, Baker and Wirsching, 2019). This will facilitates the
organisation to advertise their products and services into the new boundaries. Through
this they will be able to attract large number of customers towards their bakery business.
 Product development: This means that when the organisation and the business firms
focuses on to advertise the new products and the services into the existing market. It is
one of the most effective ways to increase the sales of the business.

 Diversification: It is one of the most typical strategy of this matrix in which the business
enters into the new marker with the all new products and services.
Government support measures to help the business overcome the challenges faced
Government of the country has made several policies in order to support the small
medium enterprise businesses. They helped the organisation financially mainly at the time of the
COVID-19 because at that time the organisation faces so much losses who were operating their
business at a low scale (Neck and Corbett, 2018). Government of the UK has also launched so
many schemes in which they have provided loans to the small business through which they can
carry out the activities of the business.

CONCLUSION
From the above report it has been analysed that entrepreneur plays a major role in
executing the activities of the business towards the achievement of the desired goal. It has also
been analysed that there are various factors that affects the operations of the business. In the
above report, small medium enterprise has been undertaken into the account. In the above report
nature of the entrepreneur has been analysed in relation to the chosen organisation. Analysis of
the porter five forces has been undertaken that helps the organisation to check the competition
that can affects the operational activities. PEST analysis and the ansoff matrix of the organisation
has also been analysed through which they can find out the internal as well as the external
factors. At the end of the report, measures of the government have been undertaken through
which they support the SME.
RECOMMENDATIONS
 SMEs can take loan from the financial institutions from through which they can grow
their business.
 They should grab new opportunists in the market through they can increase the sales of
their business.

REFERENCES:
Books and Journals
Alvarez, S. and Barney, J.B., 2020. Has the concept of opportunities been fruitful in the field of
entrepreneurship?. Academy of Management Perspectives, 34(3), pp.300-310.
Audretsch, D.B. and Moog, P., 2022. Democracy and entrepreneurship. Entrepreneurship Theory
and Practice, 46(2), pp.368-392.
Brush, C and et.al., 2019. A gendered look at entrepreneurship ecosystems. Small Business
Economics, 53(2), pp.393-408.
Landström, H. and Harirchi, G., 2018. The social structure of entrepreneurship as a scientific
field. Research Policy, 47(3), pp.650-662.
Lipset, S.M., 2018. Values, education, and entrepreneurship. In Promise of development (pp. 39-
75). Routledge.
Morozova, I.A., Popkova, E.G. and Litvinova, T.N., 2019. Sustainable development of global
entrepreneurship: infrastructure and perspectives. International Entrepreneurship and
Management Journal, 15(2), pp.589-597.
Neck, H.M. and Corbett, A.C., 2018. The scholarship of teaching and learning entrepreneurship.
Entrepreneurship Education and Pedagogy, 1(1), pp.8-41.
Ratten, V. and Usmanij, P., 2021. Entrepreneurship education: Time for a change in research
direction?. The International Journal of Management Education, 19(1), p.100367.
Sutter, C., Bruton, G.D. and Chen, J., 2019. Entrepreneurship as a solution to extreme poverty: A
review and future research directions. Journal of business venturing, 34(1), pp.197-214.
Welter, F., Baker, T. and Wirsching, K., 2019. Three waves and counting: The rising tide of
contextualization in entrepreneurship research. Small Business Economics, 52(2),
pp.319-330.