Establishing a business may be a challenging task as it requires the consideration of various significant aspects, such as future trends of the market, the management of customer service, and branding. This paper addresses these issues from the perspective of a baking business and its CEO. The report analyzes the aspects mentioned above along with the baking market, management of human resources, and the problems of ethics and sustainability.We will write a custom Establishing a Business in Baking Market specifically for you
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How Human Resources Relates
Strategic management is significant for all types of organizations as it allows for effective planning and regulations of the company’s operations. Functions of management include planning, leading, staffing, controlling, and organizing (Sun, 2017). To perform these actions, strong managerial skills are necessary as they can help an enterprise to enhance its productivity and profitability, as well as support a safe and welcoming environment for the employees.
Planning can be considered the essential function in the strategy-formulation process as it helps the company’s authorities, such as a CEO, to choose an appropriate course of action for achieving short- and long-term goals. Planning involves systematic critical thinking about the means the organization can utilize to enhance its performance, product, or the quality of services. Leading is associated with assisting the company’s employees in achieving organizational and personal goals and motivating them to show enhanced performance. Staffing is an important function focused on human resource management. Staffing involves selection and placement, development and training, workforce planning, and salary administration, as well as promotions and transfer. This function is also a significant part of the strategy-implementation stage.
Controlling implies the evaluation of the company’s accomplishments in relation to existing standards or plans. Its goal is to ensure that all processes within the organization comply with its long-term objectives. Controlling is performed during the strategy-evaluation stage of the strategic-management process. Finally, organizing is a significant function that can help an enterprise to coordinate its financial and physical resources to achieve its aims. Managers should be able to classify activities, assign duties, delegate and coordinate authority, and create responsibility to perform this function effectively.
Projected Future Trends
From the perspective of a CEO, it is vital to use effective strategies to perform an external environmental analysis and address future trends. One of these strategies is the Sociological, Technological, Economical, Environmental, and Political (STEEP) analysis (Akinyele, Belikov, & Levron, 2018). This tool is one of the most popular ones used to address potential changes in the industry (Garland, 2017). It is utilized to divide existing trends by categories to understand the nature of changes better.
From the perspective of the sociological factor, it is possible to say that the baking business can compete in the market. Storey and Farris (1964) report that the competition in the industry is present on the local market primarily rather than on the national one. However, small firms can compete with larger ones due to product differentiation and effective method of sales. In addition, the American Bakers Association (2014) reports that the majority of individuals in America prefer to buy food items from specialty counters, such as bakeries, compared to large grocery stores. In addition, it is possible to say that the area in which the business is located has a good rate of age distribution, which means that there are many groups of individuals that may be interested in baked goods. My business is focused on delivering affordable products along with higher-priced ones to ensure that they are available to a larger number of people.
The technological factor addresses the tools available for the company that can enhance or decrease its production level. When the business and its customer base become larger, it will be vital to improving baking equipment as there is a trend of increasing automation in the field (Marais & Black, 2018). For instance, it may be necessary to use renewed spiral mixers and modern ovens with rotating racks and microprocessor controls. However, currently, the accessibility of technology is low due to the limited funds.Get your
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From the perspective of the economic factor, it is possible to say that it can play a role in the success of a business. The U.S. Bureau of Economic Analysis (2018) reports that in 2017, personal income increased in the majority of counties in America. Real gross domestic product (GPD) is enhanced in many metropolitan areas too. In addition, personal consumption expenditures (PCE) increased by almost 4,5% on average in 2017 (U.S. Bureau of Economic Analysis, 2018). It means that today, it is feasible to start a business as the country’s population is gaining more economic advantages.
The environmental category considers ecosystem factors, such as energy, soil, and water, as well as regulations in the field. These factors do not affect the business significantly as it is not associated with high levels of pollution. Finally, the political category addresses government regulations and legal issues that affect the profitability and success of the baking business. The company has an appropriate number of employees that will not be forced to work overtime. In addition, the personnel is provided with appropriate wages, vacations, and insurance. In summary, it is possible to say that the baking business described in this report has the potential to succeed; the only aspect of consideration is the implementation of technology at the early stages of the company’s development.
Effective Customer Service Technology Management
Excellent customer service is a crucial aspect of the company’s success, especially in the baking industry. The first practice is ensuring responsive online platforms. For a bakery, it is vital to have an online presence to help customers to access necessary information, such as an address, contact number, and product range, easily and from any place. Thus, a website of the bakery will be launched along with pages on the most popular social media websites, such as Facebook and Instagram. The second practice is developing training sessions for employees, during which they will learn how to communicate with different types of clients, address their concerns and needs, resolve conflicts, and deliver an excellent experience at the bakery. Such an approach can establish trust-based relationships between the organization and its clients.
Ethics, Social Responsibility, and Sustainability
The questions of ethics, social responsibility, and sustainability are vital for the CEO to consider. Reiss (2017) reports that ethics is the basis of a successful business. To establish the ethical approach to the company’s operations, one should define the core values of the bakery. They can include ensuring respect for humanity and striving to improve people’s and the community’s lives. In addition, the bakery should only use high-quality materials for its products, as well as appropriate fabrication rules (Turneanu & Petroman, 2009). These measures are part of ethical behavior, too, as they ensure customers’ safety.
Social responsibility is an essential part of ethics, as it creates a basis for its values and operations. As a CEO, I should develop strategies to ensure that the corporate culture of the organization creates a safe environment for the employees and clients. For instance, in the future, I am planning to implement training sessions for the personnel that will discuss the issues of diversity and equality. In addition, I strive to promote transparency in the company’s actions and products to establish trust-based relationships with the customers and employees.
In today’s world, the sustainability of businesses is a significant concern. As a CEO, I should ensure that the company’s operations do not hurt the environment by utilizing the principles of reducing, reusing, and recycling when possible. In addition, the business will support the community by offering discounts for individuals with low economic advantages and establishing free workshops on baking. My company is not focused on profit exclusively but strives to support the environment, address existing problems in the field, and provide for the local community.
The main aspects of my personal branding are authenticity, consistency of the image, visibility, and clear values. I do not use the same branding and marketing strategies as my competitors; instead, I work on creating unique products and experiences for the customers. Consistency allows my company to be recognizable across social media platforms and helps to avoid possible confusion. Clear values, such as the ones described above, enable my organization to work with businesses and customers that have similar goals and perspectives. Personal branding reflects my professional reputation as it presents my bakery as a well-organized and managed company that values its partners’ time and opinions. It helps to create trust-based relationships with other organizations, local initiatives, and investors. The aspects of personal branding reflect my personality as well because I strive to establish clear goals and values for myself and follow them, as well as be consistent in my decisions.We will write a custom
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As mentioned above, effective social media marketing is a significant aspect of the company’s success. The CEO’s role is to develop a strategy of using social networks to promote the business and its products. I am planning to use three social media websites, such as Facebook, Instagram, and LinkedIn, along with the bakery’s website to communicate with potential customers. These online platforms will be utilized to increase the company’s visibility as they will present information about its products and their unique features, the organization’s values, and links to relevant information that can help customers to learn more about the business. It is necessary to mention that these sources have a high level of average advertisement revenue per user (Enberg, 2019). Thus, the use of social media can allow the company to connect with the community and promote its products and vision, as well as gain profit.
Managing Global Human Resources
There are several ways in which the expansion of business internationally will affect human resources activities. First, it will be vital to consider that the world’s countries have different labor laws, as well as economic, legal, and political systems (Dessler, 2016). It means that the company should comply with the regulations of each particular government to avoid potential penalties or sanctions. Second, human resources personnel should consider cultural differences as they may affect individuals’ perspectives significantly. For instance, potential employees may have different expectations regarding wages, reward systems, motivational factors, and career development; the social values of countries may vary too. If the business expands, it will be crucial to develop initiatives that will align the management of human resources across global branches but make necessary changes according to the cultural and social peculiarities of particular societies.
The websites used for this report included the one managed by the U.S. Bureau of Economic Analysis, eMarketer, Forbes, and LinkedIn. The first website was used because it presents vital information about the current economic trends in America, as well as the data about personal consumption expenditures. The findings from the website allowed me to evaluate potential trends from an economic perspective. eMarketer was used as it provides an analysis of digital tools businesses can use for marketing and commerce. The website allowed me to evaluate the effectiveness of the selected social media platforms in enhancing the customer base and establishing communication with clients.
Forbes was selected for this report as it can be considered one of the most significant websites and magazines on business. The utilization of this website allowed me to understand the significance of ethics and social responsibility for the business. Finally, the choice of LinkedIn was determined by this platform’s reliability in the questions related to human resources management. Besides being a social network, it provides articles on business. The utilization of this source helped me to perform a detailed STEEP analysis and understand its components.
Research Summary/Annotated Bibliography
Storey, D. A., & Farris, P. L. (1964). Market performance in the baking industry. Journal of Marketing, 28(1), 19-25.
This article discusses the primary characteristics of the bakery products industry. It features the analysis of significant aspects of market structure, including product differentiation and the conditions necessary to enter the market, along with seller and buyer concentration. The main thesis of the article is that the market structure of the organization and the patterns of its behavior are in direct relation with its performance. The article allowed me to learn more about the characteristics of the industry and evaluate its profitability. It also revealed the methods that I could use to enhance the market performance of my business. I would give the article a positive recommendation because it offers the information that applies to the modern baking industry and can be utilized by the owners of small businesses.
Turneanu, M., & Petroman, I. (2009). Traceability in the milling and bakery industry. Agricultural Management/Lucrari Stiintifice Seria I, Management Agricol, 11(2), 1-8.Not sure if you can write
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This article explains the importance of traceability in the bakery industry. It features specific factors that individuals should consider before establishing a business in the field. For instance, the article addresses the problem of the safety of the materials used for producing baked goods. The authors refer to the issues business owners should clarify and the information that should obtain to prevent cases of contamination and reduce risks for customers. This article was valuable to me as it allowed me to learn more about the problem of safety and reflect on how this challenge can be addressed. I have applied the information from the source to ensure that the production process of my bakery is safe for employees and clients. In addition, the article has allowed me to prevent possible mistakes in choosing materials for baking. I would give the article a positive recommendation because it features valuable considerations for individuals starting a baking business.
Outline of Business Plan
My company is a baking business named CakesAtMartinos that was established in 2017. The primary management of the organization includes me, its CEO, and two members of the lower-level management staff. The objectives of CakesAtMartinos are to deliver high-quality baked goods to our customers and provide individuals with an excellent gastronomic experience. The main specialization of the business is cakes, including personalized ones, along with other baked goods.
Summary Description of Business
The mission of the company is to create high-quality baked goods available to everyone. The company’s main strategy is to work in a wide price range and offer products at decreased prices compared to competitors, as well as exclusive cakes for higher rates. The Strengths-Weaknesses-Opportunities-Threat (SWOT) analysis shows that the primary strength of CakesAtMartinos is that the bakery offers a wide range of goods for various groups of the population, which allows the organization to meet customers’ needs and demands. The potential weakness that can be outlined is that there are many small bakeries in the city; thus, there is a high level of competition in the area. However, it is possible to say that CakesAtMartinos can be competitive due to lower prices and the focus on excellent customer experience. The existing opportunities are expanding the business regionally and nationally, as well as establishing baking courses for the community. In addition, the company is planning to open in two other locations in the city as well. Finally, the potential threat is that there are other small bakeries that are likely to open within the following months, which means that CakesAtMartinos will have more competitors.
Marketing Strategy: Customer Service
As mentioned above, the bakery aims to provide excellent customer service. Customer service activities include establishing trust-based relationships with clients by having a record of their preferences and offering them a personalized selection of goods during every visit. Each individual is encouraged to leave feedback about the bakery’s products and services; customers’ opinions serve as a basis for improvement in policies and the marketing strategy. In addition, CakesAtMartinos hosts events for the community regularly in collaboration with the local initiatives, which also allows for enhanced relationships with potential clients. The expected outcomes of achieving excellence include increased trust and loyalty among individuals and higher revenue.
The target market is the city where the bakery is established; there is a plan to expand regionally. The primary target audience is young adults; however, the bakery offers products for all age groups. The main competitors are small bakeries in the city; large food retailers are not considered competitors as they do not provide handmade baked goods. As mentioned above, the marketing trends of the industry include the preference of specialty counters among customers, as well as the value of the high quality and freshness of products.
Summary of Financial Needs
Currently, the company has a growing demand for external financial support. The financial needs of the company are determined by the fact that it is a small business that lacks the necessary equipment and has limited opportunities for expansion. According to the baking industry overview presented by the American Bakers Association (2019), an investment of approximately $30,000 is needed. The funds will be spent on purchasing baking equipment and high-quality products for baking goods.
The baking industry shows high profitability; establishing a business in the field may be beneficial for its owners. CakesAtMartinos strives to provide customers with excellent quality products and services, as well as ensure their safety. The values of the company include respect for humanity and the improvement of people’s and the community’s lives. If the company expands globally, it will be vital to consider cultural and societal differences to manage human resources effectively. The business requires additional financial investments to incorporate improved equipment and expand to other cities in the region.
Akinyele, D., Belikov, J., & Levron, Y. (2018). Challenges of microgrids in remote communities: A STEEP model application. Energies, 11(2). Web.
American Bakers Association. (2014). Baking industry consumer trends — What’s on the horizon? Web.
American Bakers Association. (2019). Baking industry economic impact study. Retrieved from www.americanbakers.org/industry-data/
Dessler, G. (2016). Human resource management (15th ed.). Upper Saddle River, NJ: Pearson.
Enberg, J. (2019). Q1 2019 social trends. Web.
Garland, E. (2017). How to use STEEP analysis in business strategy. Web.
Marais, H., & Black, J. (2018). A low-cost condition monitoring solution for industrial bakery equipment. In P. S. Heyns, P. A. van Vuuren, G. van Schoor, & R. B. K. N. Rao (Eds.), Proceedings of the 31st international congress and exhibition on condition monitoring and diagnostic engineering management (pp. 347-354). Rustenburg, South Africa: North-West University.
Reiss, R. (2017). Top CEOs place high value on corporate ethics and social responsibility to drive business. Web.
Storey, D. A., & Farris, P. L. (1964). Market performance in the baking industry. Journal of Marketing, 28(1), 19-25. Web.
Sun, Z. (2017). A framework for developing management intelligent systems. International Journal of Systems and Service Oriented Engineering, 6(1), 37-53. Web.
Turneanu, M., & Petroman, I. (2009). Traceability in the milling and bakery industry. Agricultural Management/Lucrari Stiintifice Seria I, Management Agricol, 11(2), 1-8.
U.S. Bureau of Economic Analysis. (2018). U.S. economy at a glance. Web.