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Report

Harrys Bakery

Aman
Katie
Marcelo Vieira da Silva
Simon









June 2014
English for Academic Purposes - Murdoch Language Centre/Murdoch Institute
of Technology
Perth, WA


EXECUTIVE SUMMARY

The report explains some problems related to a small bakery business which is runned
by Harry Jones and his wife. Their first problem is high management costs, which includes
high staff turnover and corruption. The owners have to recognize that an outstanding
characteristic of an enterprise, a company and or a firm is its quality service delivery, and it
depends on a good recruitments policy and staff retention strategies. Another problem is
reduction in the customer base ... So, they have to ... Thirdly, delay in bank payment is
another problem. They should ... Moreover, there is wastage of supplies of fresh ingredients.
Therefore, they have to reduce the menu list to reduce wastage ... Finally, there is ...

























CONTENTS

1 INTRODUCTION .............................................................................................................. 4
2 PROBLEMS, CAUSES AND SOLUTIONS ..................................................................... 5
2.1 Problem 1 ........................................................................................................................ 5
2.1.1 Causes ......................................................................................................................... 5
2.1.2 Possible Solutions ....................................................................................................... 5
2.2 Problem 2 ........................................................................................................................ 0
2.2.1 Causes ......................................................................................................................... 0
2.2.2 Possible Solutions ....................................................................................................... 0
2.3 Problem 3 ........................................................................................................................ 0
2.3.1 Causes ......................................................................................................................... 0
2.3.2 Possible Solutions ....................................................................................................... 0
2.4 Problem 4 ........................................................................................................................ 0
2.4.1 Causes ......................................................................................................................... 0
2.4.2 Possible Solutions ....................................................................................................... 0
2.5 Problem 5 ........................................................................................................................ 0
2.5.1 Causes.......................................................................................................................... 0
2.5.2 Possible Solutions ....................................................................................................... 0
3 CONCLUSION .................................................................................................................. 0
4 RECOMMENDATIONS.................................................................................................... 0
APENDIX (if it will needed) ..................................................................................................... 0
REFERENCES .......................................................................................................................... 0














LIST OF FIGURES


















































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1 INTRODUCTION (Katie)

The objective of this report is to identify main problems, to analyse the causes as well
as to propose some potential solutions accompanied by the recommendations. The report has
been requested by the Jones who are running a great bakery business called Harrys Bakery
with three branches. Despite the growth of their business, they are faced with enormous
financial difficulties. In order to reach its findings, the report involved group discussion and
survey associated with evidences deriving from the Internet. Firstly, the report examines the
problems and the causes. Then it might suggest the solutions of each problem. Subsequently,
conclusions are drawn, followed by several recommendations.

























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2 PROBLEMS, CAUSES AND SOLUTIONS

2.1 Problem 1 (Marcelo)

Management costs - High staff turnover and Corruption.

2.1.1 Causes of problem 1

The cause of this problem is the overexpansion of business and the necessity of an
effective recruitment policy as well as, staff retention strategies.

2.1.2 Possible Solutions of problem 1

2.1.2.1 The first solution of problem 1:
Harry Jones and Sandra must as first step recognise that an overexpanding of business
demands preliminaries strategies that should consider all possible challenges to be faced in
short and long term, as well as, estimate the finances to cover future expenditures. The
decision to extend the scope of your business must be a result of thoughtful consideration of
various factors, including the financial, logistical, even your emotional readiness. The rule of
thumb is that you should only expand when there are untapped opportunities that can benefit
your business. There may be a niche that you want to capture; or a location not serviced even
by your competitors. Therefore, without these strategies, Harrys Bakery shops shall be
reduced from 3 to 2, eliminating that one which has fewer profits. This decision will reduce
the expenditures with extra managers, training for new staff, renting, and will save money for
future investments. http://www.powerhomebiz.com/managing-and-growing/growth/business-
expansion-6-things-to-consider.htm


2.1.2.2 The second solution of problem 1:
Even closing one of three Harrys Bakery branches, it is essential an effective
recruitment policy on hiring talented staff to help in new strategies to guarantee efficiency of
output of the enterprise. A concise staff recruitment policy would add new ideas, techniques,
innovations and realistic plans on improving the quality of the goods and services to the

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business. This policy will guide Harry Jones and wife in recruiting or hiring the most capable,
efficient and energetic staff with relatively low expenses on their enterprise in maintaining
them on the staff list.

2.1.2.3 The third solution of problem 1:
Apart from developing effective recruitment policy, staff retention is very essential in
keeping the business running and viable in a competitive market. Every potential business
including Harrys Bakery must ensure that it has the capacity to pay staff entitlements
including salaries and benefits within or on the stipulated days. Besides salary, Harry Jones
and his wife must introduce a scheme that is carved to motivate staff. Such scheme includes,
commissions, medical insurance for employees, profit margins competition between the two
Harrys Bakery and as a ward, the owners give same bonus for employees that belongs to the
winner shop. This kind of motivation always promotes hardworking staff and complimenting
creating fringe benefits that will raise their morale and increase individual and collective
expected outputs. As result, this eventually will improve quality productivity of goods and
services and maximise profits for the business and employees.

2.2 Problem 2 (Katie)

Another issue which Harrys business has to face is the qualified worker shortage.

2.2.1 Causes of problem 2

Finding skilled employees is significantly challenging because of irregular working
hours in a bakery or low salary as well as poor management.

2.2.2 Possible Solutions of problem 2

2.2.2.1 The first solution of problem 2:
So as to deal with this problem, the bakery should have a reasonable working schedule.
On one hand, working in shift can be carried out with flexible schedules which become easier
for workers to choose. It is necessary to establish alternative timetable to help workers avoid
suffering overloaded work and feel more comfortable.

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2.2.2.2 The second solution of problem 2:
Moreover, it may be helpful that a range of motivating methods should be applied not
only to inspire the employees but also to attract skilled workers. For example, suitable
commission for high qualified employees estimated by the number of products sold can be an
effective way to motivate them. Besides, monthly contest among group of workers with
valuable prizes based on the efficiency may push the productivity. Addition to commission,
vacation time to refresh and relax seems to be effective in attracting potential skilled
employees.
2.2.2.3 The third solution of problem 2:
Not only finding qualified workers but also keeping them is probably a tough struggle.
Consequently, associated with motivating methods, the improvement in management system
should be considered to set up confidence for workers and make them devote their physical
and mental power to the company, instead of only working for themselves. In fact, a good
staff is always a good basis for the development of a business.

2.3 Problem 3 (Simon)

The third problem experienced by Harrys business is the decrease in the number of
customers, which leads to the significant loss of profit.

2.3.1 Causes of problem 3

2.3.1.1 The first cause of problem 3:

Firstly, rise in the cost of raw ingredients due to the global recession forces the bakery
to increase the price of food.

2.3.1.2 The second cause of problem 3:

Secondly, the intense competition from another bakery named who has cheaper
price of goods and more branches in all suburbs possibly puts a great deal of pressure on
Harrys business.

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2.3.2 Possible Solutions of problem 3:

2.3.2.1 The first solution of problem 3:
The first step is that a new supplier with affordable price of stocks and bulk-
buying can be found associated with the search for new cheap sources of ingredients.
Local supplier can be considered because of the low cost in transportation. Actually
the cheaper procurement may result in the decline in the price of raw ingredients as
well as the price of goods.
2.3.2.2 The second solution of problem 3:
In addition, the service quality should be improved professionally to appeal to
customers in which the improvement in home delivery, for instance, may bring more
convenience to clients.
2.3.2.3 The third solution of problem 3:
Also, surveying favor of customers accompanied by various promotion types
should be carried out to attract more customers. Indeed, if these strategies are
followed reasonably, the business may gain the dominant position in the competition
and the issue linked to the loss of customers will be solved.
2.4 Problem 4 (Marcelo)

The fourth problem is delay in bank payment.

2.4.1 Causes of problem 4

There are two causes for this problem, low profit margin and corruption.


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2.4.2 Possible Solutions of problem 4

2.4.2.1 The first solution of problem 4
Harry Jones and his wife, Sandra, could get loan from another bank with low interest
rate to pay the current bank debt, by this way they can negotiate for a long payment that is
easy to pay.
2.4.2.2 The second solution of problem 4
Helping their finances with some sponsorship is also one scape from this difficult
situation, as well as, from big companies in return for advertisements at shop, even from
suppliers.

2.5 Problem 5 (Aman)

Lack of or wasting stock of fresh ingredients.

2.5.1 Causes of problem 5

The cause for this problem is related to an extensive menu.

2.5.2 Possible Solutions of problem 5







3 CONCLUSION
This report contains a systematic review and critical analysis of Harrys Bakery and
has identified five main problems including management cost, disqualified staff, loss of
customer base, delay in bank payments and wast of fresh ingredients, in which overexpansion
appears the most important issue. It also offers some potential solutions to help Harrys
business overcome the financial crisis. The best solution suggested is to reduce the over
expenditure, which means closing one of the three branches of Harrys Bakery in order to

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allocate the budget on developing two main branches. When the business has enough
financial power, Harrys Bakery may reopen another new one branch.































4 RECOMMENDATIONS

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The following recommendations summarize the main solutions given to Harrys
Bakery problems in order to heal them and improve its profitability:

1. Set up a recruitment policy;
2. Introduce a scheme to motivate staff by giving them benefits;
3. Obtain feedback and opinions from customers through market surveys and price
analysis (Survey);
4. Borrow money from bank at low interest rates and sponsorship;
5. Improve quality of service in order to attract customers;
6. Redesign and organize the bakerys menu;
7. Give at the ingredients multiple usages;
8. Introduce discount facilities (motivation);
9. Buy ingredients from local suppliers and bulk buy;
10. Replace ingredients for low cost substituents.











APENDIX






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REFERENCES