BMM3013 - UK Market Business Plan: A Case Study of Fun & Food Bakers

This report presents a business plan for "Fun & Food Bakers," a bakery business proposed for the UK market, specifically London. It includes an overview of the business idea, a PEST analysis evaluating political, economic, social, and technological factors influencing the market, and a discussion of competitive advantages using Porter's Five Forces model. The analysis covers competitive rivalry, bargaining power of buyers and suppliers, the threat of substitution, and the threat of new entry. Suggestions for the target market are provided, focusing on demographics like youngsters, college students, and middle-aged individuals, with recommendations for promotional techniques and strategic location planning. The report concludes by emphasizing the importance of PEST analysis for understanding the external market environment and setting a target market to sell products.

BMM3013

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................4
Overview of Proposed Business Idea .........................................................................................4
Evaluation of the External Environment ....................................................................................5
Discussion about the Competitive Advantages...........................................................................7
Suggestions for the proposed Target Market .............................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business is refers as an enterprise or organization that connected in industrial ,
managerial , commercial and personal and professional activities. Business can be both purpose
for profit or not for profit. Business is consider as an organized activities by an individual or
partnership to produce and sell products and services. The main objectives of business is to
spread their market growth and sustain for a longer period of time in market. There are many
types of business which can be started by anyone like manufacturing, production, services,
merchandise, hybrid. Business structure is really necessary when anyone start business. In
United kingdom, there are four types of business structure follow such as sole trader,
partnership, limited liability partnership and limited company. In this report, a business plan is
proposed for UK market with the name of “Fun and Food Bakers” for the people of London .
For this business plan, its necessary to analyse the external environment factors through PEST
analysis so that company can easily understand the market situations and also identify
competition factors in the market and determine the competitive advantages and this report also
provide suggestions for the target market.
TASK
Overview of Proposed Business Idea
Business is like an entity that start with specific business idea and a name. There is a
Unique and fundamental idea exit behind every business plan and its momentary to prepare a
creative and innovative business idea and then start to make a business plan. In Business plan,
business model, vision , mission, are need to developed. With the help of this report a well
planned business plan design that shall cover all the market of the United kingdom. The name of
this business plan is “Fun & Food Bakers”. This company shall plan to establish in London
market. This bakery plan to start in partnership. Partnership is like an unincorporated company
in which partners are self-employed. Partnership company include two or more individuals, both
are agree to start and share business, profit and benefits together and apart from this, also share
the responsibilities, risk and losses with each other. Fun & Food Bakers shall start in
partnership. There are many things consider under the this Fun & Food Bakers business are
discussed below-

Background – Name consider of this business plan is “Fun & Food Bakers”. This bakery
will open in London market and plan to serve the local people of the united kingdom.
Vision – Offer best company services company will try to cover the whole UK market
in future.
Mission- The main mission of this bakery is to provide the best food so that company
will spread their market.
Objectives – To maintain the quality of products and services so that company will get
the customers loyalty.
Evaluation of the External Environment
To start a business its necessary to identify band evaluate the macro external
environmental factors. To evaluate the external environmental factors PEST analysis is
applicable. With the help of PEST analysis, political, economical, social and technological
factors are determined. For “Fun & Food Bakers” business plan, these factors are evaluated
which descriptions are given below-
Political Factors- These factors are very essential and mandatory to maintain for each
and every businesses. In political factors, tax regulations, policies, trade policies, trade
restrictions and government stabilities are considered and these factors are uncontrollable for the
businesses. Fun & Food Bakers is planning to establish their business in London so company
need to maintain those political factors which influence the market (Al Basir, Banerjee and Ray,
2019). Opportunities -If Fun & Food Bakers will follow all the Government rules and regulation
and all the legal procedure then company will establish their business plan properly in a
best manner.
 Threats – The uncertain situation of the Brexit may be challenge the market of the United
kingdom.
Economical Factors – Economical factors show the economic situation of the country.
With the help of this factors, company easily evaluate the over all market situation. These factors
help to identify the over all economic growth of the country, exchange and interest rate,
unemployment rate, minimum and maximum wages. Fun & Food Bakers need to determine
those factors which affect economically. According to the economic situation Fun & Food
Bakers business will set their company criteria ( Baines, et.al, 2017).

 Opportunities- It will help to improve in economic growth of the country and help to
make foreign currency strong.
 Threats –Dues to Covid and Brexit, country also experienced many economical changes.
Country GDP affected by these incidences that why pricing policy increase.
Social Factors – Social factors are significant to determine of each and every businesses. In
social factors, country culture, population, distribution, cast, region are measured. Fun & Food
Bakers need to consider the social factors before start a business which will help to target the
market and analyse the taste and preference of the customers(Björk, 2017). Opportunities - Fun & Food Bakers is a new company so company will need to set
products price low so that lots of customers will come and purchase their products
without any inconvenient.
 Threats – Fun & Food Bakers is a new company in the market so company will face
some socio-culture and population preferences threats and company will also experience
lots of competition in the market.
Technological Factors – Technological factors is very influential factors to evaluate. In
this factors, technologies and technical strategies and methods are determine. Some changes in
technologies, operations take place in technological factors. Fun & Food Bakers need to evaluate
the technological factors so that company can use the technological resources according to
market ( Dassou and Tixier, 2016). Opportunities – With the help of technology, company can promote their products and
services through online media like Facebook , Instagram , Twitter so that company
products recognize by the UK people.
 Threats – Sometimes there is a security risk of data protection and privacy. So Fun &
Food Bakery need to pay more attention on this.
These PEST factors are very useful to analyse the outside market situations. Through
these factors, Fun & Food Bakers company analyse the outside environment situation and then
company will implement all the conditions. This model helps to analyse the opportunities and
threats for the new business plan so that it will make easy to establish company in UK market
and run Fun & Food Bakers will run business successful.

Discussion about the Competitive Advantages
To analyse the competitive advancement situation in the market. Its important to evaluate
the Porter's Five force model. With the help of this model, Fun & Food Bakers measure the
profitability and attractiveness and also consider the competitive advantages. All the five forces
of porter's model are explained below-
Competitive in Industry - The force of competitive rivalry is high for the Fun & Food
Bakers . With the help of this force, Company can easily analyse the competition in the market.
Fun & Food Bakers need to identify the strength of their competitors. In this porter's force ,
company also determine the number so competitors and need to analyse the quality of your
products with their rivals ( Grubor and Jakša, 2018 ).
Bargaining Power of Buyer –The bargaining power of buyer in context of Fun & Food
Bakers company is high because buyers have a choice to switch their company and brand. Fun
& Food Bakers need to ask yourself that how easy for customers to drive their company
products cost down. Fun & Food Bakers also need to identify number of customers exist in the
market. Fun & Food Bakers will provide some offers and discounts so that company can easily
attract their buyers with their products and services.
Bargaining Power of Supplier - The force of bargaining power of suppliers is very low
in the context of the Fun & Food Bakers company because there are many suppliers available in
the market so Fun & Food Bakers company can purchase their products from many suppliers
who will give them good quality in convenient cost. If Fun & Food Bakers will not get a good
supply the company easily switch to another suppliers (Lüttgens and Diener, 2016).
Threat of substitution –The force of threat of substitution is high for the Fun & Food
Bakers company because customers have an option to purchase another company substitute
products. Fun & Food Bakers need to provide new and innovative products with high quality
and use some natural and herbal ingredients and provide diversified and variety of products so
that customer will not switch to another brand substitute product (Raszkowski, 2016).
offers many coupons and discounts and
Threat of new entry – The force of threat of new entry is high for the fun & food bakers
because it is possibility of bakers company is more in the market. Everyone like to eat and food
and bakery shops is on demand in UK. So new entry threat is more for the Fun & Food Bakers
company.

This is the analysis of the porter's five forces model. With the help of this model Fun & Food
Bakers company measure the whole scenario of the market and also consider all the aspects of
the company which will give competitive advantages. Fun & Food Bakers consider the
attractiveness elements of the market and also identify those elements which will profit. Through
this model company easily analysis and also will implement the new business plan competitive
aspects (Zhao, et.al., 2016) .
Suggestions for the proposed Target Market
Some suggestions for the Fun & Food Bakers company for the target market context are
discussed below-
To start a business its compulsory to consider the whole target market situations. Target
market define as a group of customers whom a business wish to sell their products. Target
market help to determine and sell products to a specific customers directly. To recognize the
target market, its necessary to prepare and develop a market plan. Fun & Food Bakers need to
prepare a full prove market plan so that company will easily identify their target market.
It does matter how company products are versatile and visible in the market . Company
need to set a target market because company can not sell their products to every so its important
to set a target market so that company will easily sell their products. Fun & Food Bakers need to
identify their target market and also investigate their rivals target market and their actual and
regular customers and after that Fun & Food Bakers need do some research that what the
promotional techniques of their competitors like advertisement on newspaper , television, radio
or promotion on digital media channels like Facebook, LinkedIn and Instagram so according to
this Fun & Food Bakers need to promote their products and services so that company will reach
large number of customers this will help to establish their market demand.
Fun & Food Bakers need to prepare a list of their customers demographically and
determine the age group of the customers. Fun & Food Bakers company mainly target on
youngsters, college students and middle age people. So according to the target market company
need to establish the Fun & Food Bakers company like company targeted youngsters and
college students and also local people then company can build their market near colleges ,
universities and societies so that all the people can easily purchase company food items.

CONCLUSION
According to this report it is concluded that for proposed a business plan its mandatory to
analyse the PEST model. With the help of this PEST (political, economical, social and
technical ) all the external market environmental situations identified. In this report, a business
plan proposed and the company name is Fun & Food Bakers. This report recognized the
opportunities and threats of all PEST factors so that Fun & Food Bakers company easily conduct
their business in the market. This report also evaluate the Porter's Five force model through this
model its easy to analyse the competitive situation in the market so that Fun & Food Bakers can
take some competitive advantages. This report also analyse target market of the company. This
company will cover youngsters, schools and colleges students.

REFERENCES
Books and Journals
Al Basir, F., Banerjee, A. and Ray, S., 2019. Role of farming awareness in crop pest
management-A mathematical model. Journal of theoretical biology, 461, pp.59-67.
Baines, P., et.al., 2017. Fundamentals of marketing. Oxford University Press.
Björk, B.C., 2017. Scholarly journal publishing in transition-from restricted to open
access. Electronic Markets, 27(2), pp.101-109.
Dassou, A.G. and Tixier, P., 2016. Response of pest control by generalist predators to local‐scale
plant diversity: a meta‐analysis. Ecology and Evolution, 6(4), pp.1143-1153.
Grubor, A. and Jakša, O., 2018. Internet marketing as a business necessity. Interdisciplinary
Description of Complex Systems: INDECS, 16(2), pp.265-274.
Lüttgens, D. and Diener, K., 2016. Business model patterns used as a tool for creating (new)
innovative business models. Journal of Business Models, 4(3).
Raszkowski, A., 2016. PEST analysis of Piechowice Municipality–power and future impact
direction of environmental factors. Prace Naukowe Uniwersytetu Ekonomicznego we
Wrocławiu, (431), pp.18-26.
Zhao, Z.Y., et.al., 2016. Competitiveness assessment of the biomass power generation industry
in China: A five forces model study. Renewable Energy, 89, pp.144-153.