Running head: DEVELOPMENT OF STRAETGY

STUDENT NUMBER :UUZIA 300519-706

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Executive Summary

The report has helped in analysing the business and marketing approaches of starting a new

venture in the food and beverage sector which is the Bakery Business named French Bakery.

With the incorporation of the different tools such as SWOT and Porter’s Five Forces Model

Analysis, the different strengths, opportunities, threats along with weaknesses are being

identified which provided a brief overview on the different steps which are required to be

taken by the company in becoming effective in the future. Moreover, the long and short-term

objectives have been identified which will be capable of gaining efficiency in the competitive

business environment which includes companies like Starbucks. With the help of generic and

grand strategies, the different companies have been capable of improving the efficiency in the

business.
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Table of Contents
Introduction ................................................................................................................................ 3

Mission and Vision of French Bakery Company ....................................................................... 3

Internal Environment Analysis .................................................................................................. 4

External Analysis ....................................................................................................................... 7

Strategic Analysis and Choice ................................................................................................... 9

Long-Term Objectives ......................................................................................................... 10

Generic and Grand Strategies .............................................................................................. 10

Generic Strategies ............................................................................................................ 10

Grand Strategies ............................................................................................................... 11

Short-term Objectives .......................................................................................................... 12

Functional Tactics ................................................................................................................ 12

Policies Empowering Action ................................................................................................... 13

Strategic Control and Continuous Improvement ..................................................................... 13

Establishment of Strategic Control ...................................................................................... 13

Continuous Improvement Implementation .......................................................................... 13

Conclusion ............................................................................................................................... 14

References ................................................................................................................................ 15
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Introduction

The report throws light on analysing the business plan of a new venture in the food

and beverage sector which is Bakery Business that will be situated at Nigeria. The name of

the bakery will be French Bakery and equally managed by two main partners. The different

products and services which will be sold by the company to the customers include different

range of expresso along with coffee related products which will be mainly targeting the

young generation who prefer to consume healthy yet tasty food items.

The main aim and purpose of the report is to identify the mission and vision of the

company along with understanding the internal and external environmental factors which can

be affecting the business in a positive or negative manner. With the help of SWOT and

PESTEL analysis, it will be effective in understanding the overall efficiency of the company

in a proper manner. It will be catering all the different customers by providing each customer

with the different espresso products which will be suiting their preferences in a successful

manner. Moreover, the long term and short-term objectives of the company needs to be

analyzed that will be affecting the efficiency of the company in a proper manner. The last

section will be including the functional tactics as well as policies that can be beneficial in

empowering action for continuous improvement in a successful manner.

Mission and Vision of French Bakery Company

The major mission of the company French Bakery is to create the café which will be

suiting the personalized needs of the different customers in a successful manner. The best

quality food products will be made available to the customers through their online and offline

channels which will be effective in attracting large number of customers. In addition, the

company creates the atmosphere wherein the different employees can be able to learn, grow

as well as hold the roots of the traditional type of baking experiences. It will be creating a
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large experience for their lifetime and French Bakery needs to establish the large regular

customer base which will be successful in meeting the different needs of the customers

effectively.

On the other hand, the vision statement of the company includes the fact that there

will be continual kind of improvement and innovation as per the standards of the baking

industry in Nigeria. It will be conducting proper training programs for the staffs that will be

enhancing their growth prospects and continuing to make everything from scratch for the

different customers as per their demand. Additionally, the core values of the company will be

inclusive of the facts that there will be value and ethics that will be ensuring that the staffs

which can be better care for the different clients and customers along with guests in a

successful manner. The main motive of the company includes the fact that employees and the

customers are the two crucial elements which needs to be maintained as they will be effective

in managing the growth of the company.

Internal Environment Analysis

With the help of the SWOT analysis, there will be different kinds of strengths,

weaknesses, opportunities along with threats which can be faced by the bakery business of

French Bakery which will be suitable for understanding their position in the competitive

business environment (Wu et al., 2016). SWOT analysis is one of the most suitable tools that

can be helpful for understanding the position and there can be strategic recommendations

which can be provided to them for the future growth prospects as well.

Strengths- The respective component in SWOT analysis mainly deals with the

different internal factors which can be used by the organization for addressing the respective

weaknesses and protect the business against the different kinds of competition successfully.
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Location- French Bakery will be located in the central location of Nigeria which is

the central hub of introducing business as there are lots of people who daily pass by on daily

basis (Wiering, Liefferink & Beijen, 2018).

Products and Services- French Bakery will be considered to be one of the successful

bakery businesses in the entire market of Nigeria as there has been increase in the number of

the loyal customers who prefer to consume the healthy and gluten free products which are

healthier in nature.

Different and Unique- The diversification approach of the company such as through

providing the gluten-free organic flavoured cakes can be the biggest strength which will be

adapted by the different individuals and improve their efficiency in the competitive business

environment as well (Veselovsky et al., 2015).

Target Market- It is the other strength of the French Bakery in Nigerian market as

there will be sale of variety of bakery food items for the different age groups. The main target

group will be the ones who are the young generation and prefer to consumer tasty and

healthy food items to manage their cravings (Trujillo-Cayado et al., 2018).

Weaknesses- In analysing the weakness, there are different kinds of aspects that can

be affecting the profitability of the business negatively. In case of French Bakery, the

different concerns which can take place are as follows:

Health as well as safety aspects- It is the major weakness as it is considered to be the

new business in Nigerian market and they need to learn regarding the health and safety

policies and at first, it will be creating trouble for the company as all employees may not be

trained and they need to be trained appropriately (Sibirskaya et al., 2015).

Awareness Regarding French Bakery- It is the other major weakness of the company

in the competitive business environment as there are other competitors which are adapted by
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customers. In order to overcome the respective weakness, the company needs to adapt the

different advertising strategies which will be beneficial in improving their brand image in the

competitive business market (Rowledge et al., 2017).

Location- It can be considered as both strength as well as weakness of the bakery

which is due to the fact that there will be various businesses which are similar and selling

same food items and it can affect their growth negatively and considered as the major

weakness (Parisi et al., 2017).

Opportunities- There are different kinds of innovation prospects which can be

adapted by French Bakery for improving their presence in the market which are described as

follows:

Innovation- It is the first and foremost critical element which will be generating a

new idea on most of the products. The company will be generating the opportunity in creating

the sugar free and gluten free products for the customers who are health conscious and it will

be impacting their efficiency in a positive manner (Meissner & Wulf, 2015). There can be

different flavours of the tea and coffee which will be organic which will be consumed by

various customers. It will be proving advantageous for the customers and it will be possibly

increasing the brand awareness regarding the product.

Arrangement of Various Events- It is the other aspect which can be considered as the

opportunity wherein the French Bakery can be arranging the different events such as the

exhibition of the different cookies and flavoured coffee products which will be enhancing

their brand in a successful manner (Liu, 2017). For promoting the business of the company in

the market, there can be inclusion of online events that will be proving to be advantageous for

their growth and improve their presence in various other locations.

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Environmentally friendly Products and Loyalty programs- It is one of the major

opportunities which can be adapted by French Bakery successfully as in the present scenario,

people are becoming environmentally aware and it is the trend for purchasing the different

products which are environmentally friendly. One of the major aims of the company and their

product is to make the brand and products are known for the environmentally-friendly for

gaining competitive advantage in the market over the different other casual café’s which are

present (Li & Li, 2016). There can be inclusion of loyalty programs which can be started

through offering good kind of rewards with every purchase for the first few months from

opening and through the same, it will be gaining awareness and gain loyal customers

appropriately.

Threats- Lastly, while implementing a new business in a country, there can be

different threats which can be impacting the business negatively that are described as follows:

High level of competition- It is the first and foremost aspect of threat as there are

various bakeries which have been settled in the country and they have generated a strong

customer base. There will be huge competition and it can create high pressure on the growth

of the business (Li et al., 2015).

Products which are Non-Patented- It is the other threat which needs to be taken care

by French Bakery as with the opportunity to innovate the different products, there can be risk

of being copied by the other competitors in the competitive business environment (Koukios et

al., 2018). It will be proving to be non-advantageous for the business and impact the business

in a negative manner.

External Analysis

In order to understand the external environment analysis of the Bakery Business of

French Bakery, the Porter’s Five Forces Model is one of the significant tools which can be
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used for identifying the threat from the substitutes and the competitive rivalry in the market

wherein they will be introducing their business.

Intensity of Rivalry- It is the first and foremost aspect in the analysis wherein it can

be seen that the intensity of the rivalry is high and there are large number of firms present in

the Nigerian market that can be a threat for the new business of French Bakery. However, in

case of preparing the specialized bakery items, the competition is moderate in nature which

will be impacting the growth of the business in a less negative manner (Kothare et al., 2016).

Additionally, the level of competition is strengthened as the customers are shifting their focus

from one to other company that is impacting the company and it can be disadvantageous for

French Bakery to compete in such scenario (Kiss & Barr, P 2017).

Bargaining Power of Buyers- It is high in nature and it can be impacting the growth

of the bakery negatively. There are large number of buyers and the cost of switching is low

and the customers have the knowledge regarding the product and the price which they need to

pay. For French Bakery, it can be a little difficult for running and establishing their business

in the first few years as there are other competitors which can be providing similar products

and at a lower price (Johnson, 2016). The different customers will be having options for shift

their focus and consume from other competitor companies.

Threat of Substitutes- It will be moderate in nature for French Bakery Business as it

will be one such companies which will be delivering and providing the customers with the

tasty gluten free bakery products and meet their expectations. In the respective market of

Nigeria, there are few substitutes available in delivering such products, it will be impacting

the profitability positively (Hitt & Duane Ireland, 2017). There will be introduction of

different dough nuts along with other cookie items that will be suitable for the young
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generation individuals who are health conscious and it will be impacting the revenue

generation of company.

Threat of New Entrants- It is the other aspect which needs to be analyzed and it can

be seen that the threat is limited and is moderate in nature. Since, it is one of the new

entrants in the market, therefore, the respective sector is not required to be considered (Hart,

Sharma & Halme, 2016).

Bargaining Power of Suppliers- Bargaining power of suppliers is strong and it can

be disadvantageous for French Bakery to earn revenues in the market. As the position of the

suppliers is strong, therefore, it can be difficult for the companies who are new entrants as the

suppliers may not be providing them with the raw materials or they can be charging extra

amounts for such products which can be ineffective for the growth of the companies like

French Bakery (Harris & Graham, 2016).

Strategic Analysis and Choice

In the competitive business environment, for fetching various growth avenues in the

entire market, the company French Bakery needs to determine the different weaknesses and

therefore, implement various strategies for overcoming the identified weaknesses

appropriately. In such scenario, French Bakery needs to undertake the value discipline,

generic strategy along with grand strategy which will be efficient in maintaining their

competitiveness in the current economy successfully (Gaspar et al., 2015). The long-term

objectives along with the analysis of the generic and grand strategies will be helpful in

understanding the situation in which the company will be operating their business

successfully.
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Long-Term Objectives

The long-term goals play an essential role for the successful growth of the companies

and it will be beneficial in enhancing the effectiveness of the company in comparison to the

other competitors such as Starbucks which is gaining high level of efficacy in the market

wherein they are operating (Garcés-Ayerbe et al., 2016). In case of French Baker, which is

the new company in the market, therefore there are different strategies which need to be

implemented for making improvements in the company and gain the competitive position in

the market. The SMART long-term objectives of the company are described as follows:

 To expand their business branching in different other states in Nigeria in the next five

years

 To increase the level of sales percentage for about 15% in the next five years which

will be beneficial in improving the effectiveness of the company in a proper manner

 To expand the company in the different aspects related to packaging as well as

delivery of the different baked food items which are organic and gluten free to the

different stores themselves

 To be recognized by the entire market of Nigeria and the different customers in the

next five years and to see their business in top charts with #1 bakeries and it will be

making the company successful

Generic and Grand Strategies

Generic Strategies

As per Michael Porter, there are three major generic strategies which includes

differentiation, focusing as well as low-cost leadership strategy. Differentiation and the low-

cost leadership strategies which can be implemented by the French Bakery in the market

which will be capable of achieving the required sustainable advantage (David & David,
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2019). Differentiation will be allowing the organization in offering the buyers with the

different organic flavoured gluten-free tasty food items for their customers that will be

impacting their business in a positive manner. Additionally, since the company is new in the

market, therefore, the low cost-leadership strategy can be adapted by the company which will

be enhancing them in selling the products at the lowest prices to customers. It will be

beneficial in making profit and draw the attention of customers towards their company in the

market (Berger et al., 2015).

From the analysis of the two generic strategies which can be adapted by French

Bakery, the generic strategies can be implemented as the alternative approach which is

considered as value discipline. French Bakery needs to focus on combination of the two

elements which includes operational excellence as well as customer service as these are the

two best value discipline approaches which can be utilised in an effective manner.

Grand Strategies

As commented by Arif and Hossin (2016), the grand strategies are the ones which can

be used for achieving the set of goals along with objectives sustainably. In case of French

Bakery, the main grand strategy which is required to be used is improving turnover of

existing products and services which can be distributed through usage of several channels. As

the economy is politically not stable in Nigeria, there can be various risks such as high level

of competition such as Starbucks who are using grand strategy. In such scenario, for reducing

the effect of the competition, French Bakery needs to implement and use the different kinds

of advertisement strategies such as utilisation of emails, television or the social media

channels which will be grabbing focus of customers (Ansoff et al., 2018). It can be using the

different discount coupons such as inclusion of buy one get one free coupon to the customers.
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It will prove to be imperative for French Bakery to understand the desires, needs and wants of

customers.

Short-term Objectives

 To make the business worldwide in the next few years and it will be getting major

celebrities for coming in and trying the different delicacies

 To keep the business afloat and to make sure that the company does not fail in the

different aspects which are tried

 To retain the different employees as they are integral part of business and there should

be motivational schemes which can be awarded to them

 To build as well as nurture the relationships with their customers successfully

Functional Tactics

In case of French Bakery, the different functional tactics which can be implemented

by them are described as follows:

 There can be inclusion of advertisement which can be helpful in developing

effectiveness and convince the users for trying their organic cookies or other bakery

items

 Market Development and Market Penetration are the two elements which will be

beneficial in increasing sales as well as reduce the weaknesses of competition

 There can be utilisation of distribute packaging at French Bakery instant organic

coffee options can be beneficial in increasing the overall level of revenues and sales

as it is the major demand of customers

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Policies Empowering Action

There are different policies which will be empowering the action and ways in

enhancing the speed as well as effectiveness which are described as follows:

 To allow the decisions to be made possible for the employees working in the lower

level as they have the equal right to take part in decision-making process

 To develop policies such as health and safety policies which will be equal for the

different employees at different levels as it will be efficient in managing actions

 To increase the managerial effectiveness through standardizing the entire routine

decisions along with empowering discretion of the different managers as well as

subordinates in implementation of the strategies in business

Strategic Control and Continuous Improvement

Establishment of Strategic Control

 Setting the standards of performance of delivering the different items to their

customers

 Proper measurement of the actual performance of the company in terms of sales and

the profitability is required to be maintained by French Bakery

 There should be initiation of corrective action in the company for improving their

level of efficacy

Continuous Improvement Implementation

 Proper quality is required to be maintained and the customer service is required to be

maintained in a successful manner

 The company needs to focus on the business processes and develop the customer

orientation approach
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 There should be adoption of the error-free attitude in opening a huge business and it

will be successful for improving their effectiveness

 There should be creation of environment of total involvement of employees which

will be helpful for them in increasing their growth

Conclusion

Therefore, it can be inferred that while starting a new venture of the food and

beverage industry, which is the French Bakery, there are different factors internally and

externally that can impact them positively or negatively. With the help of long and short-term

strategies, the company can become clear regarding the goals and make decisions which will

be affecting their business positively. Through the help of differentiation and low-cost

leadership strategy, the company can be successful in making their business effective and

improve their brand image. There are different promotional tactics which can be considered

as grand strategies which can be adapted by them for making their business popular and

attract a large group of customers. Through implementing such strategies, it will be opening

large avenues for the company and it will be increasing their revenues overtime.
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