Introduction
The following assessment has scrutinized the environmental and SWOT analysis of Intrepid Bakers company. Under the macro-environmental analysis, this essay explains the impact of technological innovations, COVID-19, Brexit, and competition on the daily operations of Intrepid Bakers organization. Furthermore, in the microenvironmental analysis, the marketing strategies and customer acquisition approaches employed by Intrepid Bakers are examined. The company’s SWOT analysis is investigated in this paper, and some recommendations are offered to reduce the impact of the threats and weaknesses.
Intrepid Bakers Ltd
Intrepid Bakers’ product sales are influenced by macro and micro environmental features. The capacity to make accurate decisions is fundamental to the organization’s prosperity. The research of environmental assessment enables the organization to select the optimal options for its achievements and development. Macro environment evaluation is a component of a firm’s operations planning to assess and discover prospective opportunities and threats to the organization. The assessment of the components of a micro-environment includes components in a company’s immediate surroundings that significantly impact how the business is operated.
Macro Environmental Analysis
By modifying baking procedures, advanced baking technology increases product uniformity. Intrepid Bakers had to manually transfer trays from lower to upper racks in older ovens, which affected bake durations (Intrepid Bakers, n.d.). By employing ovens with moving racks and temperature concerns, the company may improve baking outcomes with innovative technology. Various modern baking technologies are particularly designed to enhance the final result. Devices like spiral mixers can aid in combining numerous quantities while also limiting over-mixing. The more accurately a bakery can forecast sales, the easier it can handle inventory to ensure that consumers receive what they demand when they prefer it.
The COVID-19 situation has also impacted intrepid bakers’ product distribution strategies. During the lockdown, bake-off usage surged at the expense of scratch baking on the premise, which encountered workforce shortages and additional sanitary restrictions (Intrepid Bakers, n.d.). Due to securing regular supplies, fresh bakery product supplies have dropped throughout the lockdown. The pandemic’s greatest beneficiaries are packed long-life ambient items and exceptionally packaged bread, which has increased its sales. Consumers have responded positively to protective packaging, and this is a pattern that should persist in the future.
The bakery market in the United Kingdom is valued at approximately four-billion-pound sterling and is a significant part of the UK food sector. In 2019, roughly two thousand four hundred baked food production businesses were in the United Kingdom (Noya et al., 2018). The bread sector in the United Kingdom is fiercely competitive, and businesses must devise effective methods to get an advantage over their competitors. Clients are positively impacted by business competition since it forces firms to offer high-quality services and commodities at reasonable costs. Moreover, it suggests that companies must continue innovating and introducing modern services and items.
With the termination of freedom of movement between the United Kingdom and the European Union, Brexit has been difficult for the workforce. Intrepid Bakers will be unable to depend on low-cost labor, and it may be necessary to spend considerably on apprentices and current staff (Intrepid Bakers, n.d.). Furthermore, these laws mean that taxes can be imposed on exported commodities based on their country of origin. Unfortunately, this is already generating problems for Intrepid Bakers, which uses third-party wheat in their flour. Import tariffs are boosting expenses at a rate that might result in a 9% increase in bread pricing for Irish consumers.
Micro Environmental Analysis
Bakery owners need to create awareness about the business through various marketing strategies such as advertisements. Intrepid Bakers utilize different marketing approaches that concentrate on nurturing the company’s growth and achievement of better outcomes in a short period. The firm increases product visibility by listing the bakery on food applications and displaying the products online. Intrepid Bakers have set up its user-friendly website and accept online orders, which promotes the growth of the business (Intrepid Bakers, n.d.). Implementation of effective marketing strategies grows sales and gives businesses a competitive advantage.
Customer acquisition is critical since it helps organizations grow their customer base, implement client retention schemes, and reduce expenses to maximize return on investment. Intrepid Bakers cultivate customer connections by maintaining communication with them to preserve the brand on their minds. Furthermore, Intrepid provides customers with unique product selections they will not find anywhere else (Intrepid Bakers, n.d.). Customer retention strategies are the first step in developing helpful marketing strategies for a company. A company can increase profits and take the bakery to the next level by fostering connections and standing out from its competitors.
SWOT Analysis
Strengths
Intrepid Bakers firm offers a wide range of prepared food products that help to draw in clients. The greater the number of items in the portfolio, the simpler it will be for the store to meet client demands. The bakery uses distinctive creative designs on foodstuffs like cakes to increase value and make them more attractive (Intrepid Bakers, n.d.). Consumers want more than simply food; they want cuisine that is more appealing to the eye. Intrepid Bakers company offers a professional workforce and experienced personnel that assists in various ways, including improved product preparation and enhanced client satisfaction.
Weaknesses
Rising fuel costs, stringent standard operating procedures, expensive shipping, and a complex supply chain have all contributed to a rise in the general price of Intrepid Bakers’ finished product. When the cost of manufacturing and numerous other direct and indirect expenses rise, bakery store operators must raise the retail price to cover the expenditures. On the other hand, customers are unhappy with the spike in the pricing of essential food products which they purchase regularly. Financial management techniques may be a flaw since they demand the owner to be both a sophisticated financial manager and an expert baker. Baked products are perishable commodities; therefore, when the bread is not sold today, it will have to be cut down the next day.
Opportunities
Intrepid Bakers store has the opportunity of conducting market research and checking the feasibility of different bakery products that have the potential for growth. The items should then be introduced to the catalog and promoted to lure new clients through multiple channels. In order to render bakery items healthy, fewer greasy and low-sugar products should be produced. Intrepid Bakers would be able to pursue the wellness and diet-conscious client market if they took these actions. Intrepid requires more workers to complete large orders in a timely manner since it processes large orders. The bakery should hire more employees at a reduced cost and complete the task on time while the trainees gain work exposure and experience.
Threats
Intrepid Bakers’ expansion has been hampered by the economic downturn. The international outbreak of COVID-19 has resulted to numerous people losing their jobs forcing them to lower their purchasing power. When consumers have a limited budget, they cut back on their expenses, which has influenced the revenue of Intrepid Bakery. Bakery operations have been complicated by costly safety and health laws. Competition from the world’s most well-known chain stores invest billions of pounds in advertising and branding their goods and services. When the United Kingdom’s popular majority chose to leave the European Union, sales were severely impacted.
Recommendations To Reduce the Impact of Threats
The threat posed by Brexit has benefited UK firms by enabling them to deal reasonably extensively with non-EU regions such as the United States and Australia. Intrepid Bakers should be willing to take risks that establish new trade agreements with a wide range of non-EU nations to lure fresh and potential customer markets. In the era of social distancing, the COVID-19 danger has helped social media prosper. Intrepid should take advantage of technology and inform clients that they provide digital ordering or are members of popular delivery platforms like Just Eat and Uber Eats.
Intrepid Bakery should go outside the box regarding how they offer their goods. For example, if a consumer purchases one item or a package of baked products, the bakery should offer Bake at home packs. Customers may buy doughnuts, cinnamon buns, or cupcakes by the dozen and prepare them themselves at the household with these kits. Families may buy a dozen cookies from the company’s Customizing in a box package equipped with icings and decorations. These are entertaining suggestions for homebound families seeking things to do, plus they generate money for the organization.
Conclusion
In conclusion, this essay evaluates how the various business environment for Intrepid Bakers firm affect the decision-making process. The macro-environmental factors discussed in this paper affect the financial factors of consumers, thereby reducing their purchasing power. Government policies such as the Brexit situation affected Intrepid Bakers company when tariffs were imposed on imports. Competition from well-established bakery shops that spend billions of pounds sterling is a macro-environmental factor that affects Intrepid Bakers company. The micro environmental analysis shows marketing strategies and customer acquisition approaches that Intrepid Baker business employs to grow and attain a competitive advantage. Some recommendations from the SWOT analysis provide Intrepid Bakers to tackle the threats the business experiences.
Reference List
Intrepid Bakers. (n.d.).
Noya, L. I., Vasilaki, V., Stojceska, V., Gonzalez-Garcia, S., Kleynhans, C., Tassou, S., Moreira, M. T., & Katsou, E. (2018). âAn environmental evaluation of food supply chain using life cycle assessment: A case study on gluten-free biscuit productsâ, Journal of Cleaner Production, 170(1), pp. 451-461.