The Original Cake Co.: Enterprise Development and Ecosystem Analysis

This report provides an analysis of The Original Cake Co.'s enterprise development, focusing on its business model, customer segmentation, and market impact. The company, based in Lincoln, UK, specializes in supplying cakes to independent retailers, distributors, and importers. The analysis covers the enterprise ecosystem, highlighting the roles of customers, beneficiaries, government, and competitors. A business model canvas is presented, detailing key partners, activities, value propositions, customer relationships, and revenue streams. The report also examines customer segmentation based on demographics, geography, behavior, lifestyle, psychographics, preferences, loyalty, and value. Furthermore, it emphasizes the importance of understanding customer needs and adapting products accordingly, with a focus on maintaining intellectual property and adhering to relevant regulations. The Original Cake Co. is portrayed as a growing business with significant potential for future expansion.

DEVELOPING ENTERPRISE OF THE ORIGINAL CAKE CO.
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SUMMARY
With globalization and technology development, companies need to develop plans for their
business. Each company has unique risks, creates changes and has a positive impact on society
and communities. In this analysis, The Original Cake Co. enterprise developed is undertaken.
They specialize in providing cakes to independent retailers, professionals, distributors,
distributors, and importers with quality food packaging. It works with different systems,
organizations, and networks where the business can thrive. The original cake was developed with
the owner's passion for serving and serving the community. The business model allows strategic
management to establish a business model that contains elements that imply a specific business
proposition. Customers of all companies are essential because they enable designing of the
products of the company. Although the various types of bakery and bakery products on the mass
market are popular, anyone who is interested The Original Cake Co. in Lincoln's proximity may
select expensive products. The company must understand the needs of the customer and then
design the products. After purchase or consumer behavior can help identify the potential needs of
the user. The analysis of consumer behavior shows that regular customers prefer smaller cakes
and cost-effective ones. Cake Original Co. is a private limited company. The interests of the
owner determine the board of directors and the governments act as one of the parties. In the UK,
most companies prefer intellectual property policies, which they consider to be one of the most
valuable assets of society. Original Cake Co. recipe is the intellectual property of the company.
Intellectual property strategy, which aims to keep its revenue intact, and makes it a leader. All
businesses operating in the business world must comply with the applicable rules and regulations
in this area. In the United Kingdom, the bakery has to develop terms and conditions. The
conditions are entirely valid as they offer good legal protection and limited liability. The original
cake is a growing business with great potential for future growth.
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ABBREVIATION
BMC Business Model Canvas
BPP Business Planning Process
IP Intellectual Property
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Table of Contents
SUMMARY
ABBREVIATION
Table of Figures
Introduction
Analyzing Enterprise Ecosystem
The Business model canvas for The Original Cake Co.
New Venture Creation (Customer Segments)
Business Structures & Business Model
Business Venturing
Market Impact
Business Environment
Conclusion
References
Table of Figures
Figure 1: Products of The Original Cake Co
Figure 2: Enterprise Ecosystem
Figure 3: Business Model Canvas
Figure 4: Customer Segmentation
Figure 5: Types of Boards
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Introduction
Globalization and technological advent have led to dynamically changing businesses, increasing
competition immensely (Osterwalder and Pigneur, 2010). The business of every size need to be
creative, enterprising and have entrepreneurial people for driving the business towards its goals
and objectives. Every business entails undertaking certain amounts of risks, creating changes,
creating a positive impact on societies and communities (Chesbrough, 2010, pp 354-363). In the
current analysis, development of an enterprise, The Original Cake Co is undertaken. The
company is based in Lincoln, UK and is in the business of baking cake since the past 40 years.
They specialize in the supply of excellent tasting case to independent trade, specialists retailers,
distributors, and importers. The business has grown from merely supplying to various resellers to
establish their own business and website from where they can sell cakes to customers. The
enterprise ecosystem analysis with customer segment analysis and other relevant details have
been encompassed in the current discussion, information regarding which had been obtained
from various stakeholders of the business.
Figure 1: Products of The Original Cake Co
Source: The Orginal Cake Co., 2019
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Analyzing Enterprise Ecosystem
The Original Cake Co. operates with multiple interdependent systems, institutions, and networks
which allows its enterprise to flourish. The Original Cake developed for the owner’s passion for
baking and serving the local community. The customers of the enterprise are people who
purchase products from the Company and make payment for goods purchased. The
beneficiaries are those persons, whom the organization helps. For the enterprise customer and
beneficiaries include direct customers, retailers, distributors and other resellers of cake and its
other products (Zott and Amit, 2010, pp 216-226). They provide crucial feedback to the
enterprise which allows shaping the aim and model of the enterprise.
Government plays an integral part in an enterprise ecosystem. A Government sets regulations,
taxes, laws which shape ways in which the organization operates. Currently, all the policies and
regulations by the Government are adhered to by the organization, regarding obtaining
certifications for operating its businesses. The Government of UK often provides financial aid
and assistance to small and medium scale enterprise like this one for their expansion and growth
(Clarysse, Wright, Bruneel and Mahajan, 2014, pp 1164-1176).
Figure 2: Enterprise Ecosystem
Source: Author
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Enterprise
Ecosystem
Customers
Beneficiaries
Governments
Funders
Competition
Society /
Community

Peer organization or competitors have a crucial role in the enterprise ecosystem. Often sharing of
crucial information regarding customers or new regulation impact on the business and best
practices are shared, collaborated which provides complementary initiates. Earlier Original Cake
company used to sell its products through resellers and distributors, but with competitors
adopting the online business model, the Original Cake Co. has done so. This has allowed to
reduce risks in the current enterprise and expand its business.
The Business model canvas for The Original Cake Co.
A business model canvas allows strategic management for the development of a business model
including elements that provide the firm valued proposition. The Original Cake Co. is primarily a
baking start-up with relatively little knowledge regarding the technical tools available in business
(Zahra and Nambisan, 2012, pp 219-229). Creating a business model canvas for the enterprise
will allow a visual for the key stakeholders of the Company. The practical value of such visual is
to allow the business to focus on the critical elements of the enterprise describing value
proposition and aligning activities for potential trade-offs. The below-designed business canvas
model once present on the announcement board of the enterprise can help its stakeholders focus
on key activities and revenues streams.
Key Partners
Tesco
Metro Cash &
Carry
Distributors
Retailers
Direct
Customers
Key Activities
Cake Designing
Cake Baking
Small Cupcakes
Value
Propositions
Manage and
Delivery
Orders
Delivering
Exclusive
Taste
Special
Occasion
Cakes
Photo Cakes
Customer
Relationships
Delighted
Amazing Taste
Best Designer
Cakes
Customer
Segments
Satisfaction
and Taste
Driven
Cost Driven
Key Resources
Chef's Skills
Large Baking
Capacity Oven
Financial
Capital at the
Standard
Channels
Distributor
Channel
Retailer
Channel
Direct
Customer
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Chartered Bank Channel
Online Sales
Cost Structure
Material Costs (Flour, Butter, Sugar)
Electricity Charges
Special Item Costs
Chef’s Charges
Advertisement Charges
Website Hosting Costs
Revenue Streams
Special Order Cakes
Party/Bulk Orders
Corporate Orders
Figure 3: Business Model Canvas
Source: Author
The business model canvas includes the nine basic building blocks for the enterprise. The visuals
help in understanding the factors that deliver value to the business, as customer segments are
understood from it which the enterprise wants to target (Rong et al 2013, pp 268-294). Value
proposition includes the products that customers of the enterprise finds value. The enterprise
reaches its customers through various channels, by which customers become aware of the
enterprise's products. Customer relationship is the way in which the enterprise interacts with the
customer segment, this, in turn, impacts the relationship of the Company with its customers
(Osterwalder and Pigneur, 2010). Key resources are the important physical, human and financial
assets that are needed in the enterprise. Key activities are the actions that determine the
appropriate functioning of the business model. Thus, in short, the BMC provides all the essential
elements of the business that need to be incorporated into the business planning process. The
BPP is initiated taking into consideration the elements as suggested in the BMC (Hong and
Fauvel, 2013). Therefore, the BMC informs the BPP on aspects on which plan needs to be
developed such that the organization can attain its goals and objectives.
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New Venture Creation (Customer Segments)
Customer Segment for any business plays a crucial role as it allows designing products
accordingly. Though various forms of cake and other bakery product to be accepted in the mass
market remains a popular strategy, but assuming everyone near Lincoln will be interested might
be an ineffective and expensive strategy (Wilson and Gilligan, 2012). As the enterprise has
recently started offering its products directly to customers from their store in Lincoln and from
the website, segmentation its various customers will allow reaching out to the targeted segment.
Customer segmentation will help the business gain a competitive advantage over its rivals and
gain a better knowledge of its customer needs.
 Ø Marketing effectiveness of the enterprise will increase by identifying target
customers. Marketing campaigns for different customer groups, as for corporates using
public relation's personnel and individual customers social media marketing over
Facebook can be devised.
 Ø New marketing opportunities by grouping customers into clusters could help
identify new market segment. Such as social organizations in the UK often place bulk
orders from a bakery for their various occasions.
 Ø A better branding strategy can be designed by identifying a key motivator for
customers. The Original Cake can use its legacy in banking as the branding strategy to
attract customers.
 Ø Improving distribution strategy is a major factor that would allow the enterprise to
increase sales.
 Ø Customer retention is integral with increasing competition in the UK baking
industry, with new businesses being set up frequently.
Most importantly analysis of the customer segment will help the enterprise conduct its business
in an informed manner, leading to new venture entrepreneurship.
An approach to understanding customers demand to conduct their segmentation from a
contextual understanding (Proctor, 2014). While conducting marketing campaigns or designing
products, it becomes imperative to group customers under varied segments for the enterprise as
has been conducted below;
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Figure 4: Customer Segmentation
Source: Author
 Ø Demographic: The products of Original Cake Co. will be consumed by both the
genders male and female from varied ages and educational background. The income level
of the customer will be mainly from high and middle-income status. Ø Geographic: The consumers will be located nearby to Lincoln area to avail the
various baked products of the enterprise. Ø Behavioural: The customer's transactional behavior for the enterprise will be a
mainly sentimental and occasional purchase, as cakes are item loved by all. Ø Lifestyle: Customers with family background or having some social
accompaniments will consume products from the enterprise. Ø Psychographic/ Attitudinal: The social status of the customers will be from all
walks of life and values would include purchasing cakes from an authentic baker. Ø Preference: Individual Consumers of the Cake Co. will include mainly walk-in and
very rarely online purchases. For retail distributors, orders will be placed over the
telephone or using email. Ø Loyalty: The enterprise does not yet have or plans to have any loyalty program.
However, the enterprise does have a set of loyal customers visiting its store frequently.
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GeographicBehaviouralDemographicPsychographicLifestylePreferenceLoyaltyValue

 Ø Value: The revenue or value earned from individual customers is GBP 10 on each
purchase, whereas from distributors it varies GBP 500 to GBP 1000 regularly.
The customer needs have to be perceived by the enterprise, and then the products need to be
designed. Following the purchase pattern or consumer behavior can aid in analyzing the
perceived needs of the consumer. Analysis of purchasing behavior reveals that regular walk-in
customers prefer cost-effective cupcakes and cakes of the smaller variant. On special occasions,
the customer prefers decorative cakes (Hollensen, 2010). Customers of the enterprise generally
prefer the flavor of the cake offered by it, which is a mixture of low sugar and high butter
content. Moreover, the cream flavors and designs made are a favorite of the customers. A
continuous process of feedback will help understand customer needs in an extensive manner.
Customer’s problem resolution is integral for businesses as it helps in customer retention. Often
there are problems related to packaging, delivery time, changes to be made in the order and so
on. A customer care executive in the enterprise will need to be appointed, who will take
individual care of the customer orders and also resolve problems by coordinating with the
departments.
Business Structures & Business Model
A business enterprise may be formed by obtaining finance from varied source, which determines
the structure of the business. It also enables the formation of the board for appropriate business
structure. The Companies Act 2006 in the UK determines the type and form of company.
Depending on the form and type of financing, the business's legal entity might be determined. A
business which is self-funded is a proprietary organization, a business which takes fund from two
or more parties is referred to as a partner organization in the eyes of the law (Teece, 2010, pp
172-194). Such a business might be referred to as a Limited Liability Partnership (LLP) and has
a separate legal identity. There are organizations which are a private limited company, where the
liability of each member is limited unlike in LLP and has a separate legal entity. A public limited
company is one that is open to public subscription and enjoys a separate legal entity. The various
forms of subscription that a company attracts further determines the structure of the Company.
Depending upon the amount of capital which is sought from outside the structure of the
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Company is determined. There are various forms of financing options available for a company
that wants to obtain outside financings such as debt finance, equity finance, mezzanine finance,
business angels and private investors and venture capital funds.
A business can be analyzed according to the type of business model that it follows, such as
manufacturer, distributor, retailer, and franchise. The baker follows a manufacturing business
model, where it bakes various items such as cakes and cookies in its warehouse and then sells to
direct as well as indirect customers.
A business can be structured according to the difference in the type of their board structures. A
board of a business can be as given in the figure below.
Figure 5: Types of Boards
Source: Author
The Original Cake Co. is a business based on the ownership model. Amongst the different types
of board structures present, the enterprise has a governing board. In this case, the board leads the
enterprise by using direct authority and control as transferred from the owner and legal act of
formation. The initial direction of the board is determined by acting in the best interests of the
owner, and such boards operate the enterprise as a single entity. The enterprise is a private
limited company with the owner enjoy the maximum share of 51% of the business. The business
was originally established using 100% of the owner’s fund 40 years ago, GBP10,000. But with
increasing demand and need for business expansion, the owner had to invest some self-funds and
opt for a bank loan of GBP50,000 and private finance of GBP50,000, thus restructuring its
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Types of
Board
Collective Governing
Board
Working
Board
Advisory
Board Managing
board/
Executive
board
Fund
Raising
board
Policy
board