Sprinkles of Joy Bakery’s Business Overview


Small and medium-sized enterprises have gained roots and are contributing majorly to the economy of the country. They are increasingly offering competitive solutions in a wide range of areas, including manufacturing, distribution, and retailing goods and services (Masroor & Asim, 2019). Masroor and Asim (2019) report that many countries are establishing stable and prosperous SME sectors to revamp their economic growth. In this context, small business entities have become an essential alternative for economic development in the contemporary business environment. This essay examines business planning, rational decision-making, and Henry Fayol’s administrative management approach to analyze Sprinkles of Joy Bakery.

Overview of the Small Business

Name of Small Business

This essay focuses on a small business called Sprinkles of Joy Bakery. The company was established in 2016 and started offering a wide range of confectionery products, with a particular focus on cakes, cookies, and scones.

Type of Business

Sprinkles of Joy Bakery is a startup that operates in the confectionary sector. The firm offers a wide range of bakery products in various flavors and designs, including bread, rolls, bars, buns, cookies, desserts, snack cakes, muffins, doughnuts, pastries, and pies, among others (Sprinkles of Joy, n.d). As illustrated in the product line, the bakery provides all types of cakes for every occasion, such as birthdays, weddings, graduations, anniversaries, baby showers, or any other event. The company’s patties are designed and decorated according to the occasion, depending on the customer’s tastes and preferences (Sprinkles of Joy, n.d). Moreover, the bakery provides soft drinks to clients, and the shop has enough space for customers to enjoy the bites of well-baked cakes and pastries. The startup is a health-conscious bakery as it offers healthier foods.

Vision Statement

To build a community of cakes and pastry lovers by offering the best cakes at affordable cakes in Australia.

Mission Statement

“To bring people joy through our edible creations–we can’t wait to bake for you!” (Sprinkles of Joy, n.d.).


Sprinkles of Joy’s forefront office is located along 621 E 1st Street Newberg, OR 97132.

Number of Staff and Position

The company has well-trained and experienced bakers, aiming at providing the best, sweetest, and most unique cakes. It has five qualified, passionate, and well-qualified chefs responsible for preparing cakes and other confectionery products. One cashier oversees all the monetary transactions and accounting activities in the company. The startup has a human resource manager who ensures that employees are working in better condition and oversee new staff members’ recruitment. It has four waiters and waitresses who serve clients in its forefront office. Lastly, the firm has one security guard to monitor the premises and two subordinate staff who ensure a high level of cleanliness in and around the shop.

Analysis of the Small Business

SMART Goals in Planning

Every organization needs to set goals and establish ways of achieving them. Goals help prioritize activities and processes and allocate and utilize resources efficiently (Reeves & Fuller, 2018). They are useful only if they are SMART – specific, measurable, attainable, relevant, and time-bound (Reeves & Fuller, 2018). SMART objectives play an important role in program planning, particularly in capacity building and monitoring and evaluation of the progress toward organizational processes and outcome objectives (Bjerke & Renger, 2017). Each of the SMART goal method characteristics contributes to the achievement of the organization’s overall strategy.

Goals are specific if they are well-defined, unambiguous, and clearly state the activity to be pursued and the procedure for accomplishing it. Clear objectives enable every team member to understand tasks and achieve them (Bjerke & Renger, 2017). Goals are measurable if the progress or outcome of the implemented strategy or assignment can be quantified. There should be a specific metric for measuring how the set goals’ results contribute to the company’s accomplishment. Most importantly, the objectives should be realized within existing capital, human, and time resources (Bjerke & Renger, 2017). Relevant tactical and operational goals align with a firm’s business strategies. Lastly, goals should be time-bound, meaning that they should have a clear timeline, including the date of commencement and completion.

An example of a SMART goal for Sprinkles of Joy would be to achieve a 25% increase in the bakery’s operations and sales revenues by opening two more retail outlets within one year. This particular goal is specific as it demonstrates that the firm seeks to establish two more branches. The objective is measurable because it outlines metrics such as operations and sales revenues, indicating progress toward its achievement. It is attainable because it requires less capital and human investment. The objective is relevant because it aims to increase the firm’s earnings. Lastly, it is timely as it states that the additional branches will be established within the next two years.

Business Structure

Business structure describes the category of a corporate enterprise recognized by the laws and regulations in a particular jurisdiction. Villaluz and Hechanova (2019) define the concept as the legal structure from which a corporate entity is organized or operates. Each form has unique implications relating to ease of formation, ownership, and control over the organization, paperwork involving filing taxes, the limit of liability, ease of accessing financing, sharing of profits, continuity, and dissolution. Firms can take many different structures, including sole proprietorship, partnerships, corporations, limited liability companies, and non-profits (Starr, 2016). Therefore, the system an enterprise chooses affects the day-to-day operations of the organization.

Sprinkles of Joy bakery operates as a sole proprietorship business. According to Starr (2016), organizations in this business structure are typically owned and operated by one person. Villaluz and Hechanova (2019) argue that sole proprietorship is the simplest business structure since one person, most often the owner is responsible for overseeing the entity’s routine operations. Consistent with these descriptions, the bakery is owned and controlled by Kelly, the founder, and owner of the startup, who doubles as the confectionary creator.

The several benefits of sole proprietorship make it the most suitable business structure for Sprinkles of Joy. First, the business is easier to start because it involves minimal paperwork and other legal formalities to start, unlike other forms such as corporations. Second, this structure is less costly because owners incur lower fees when registering and lower taxes. Starr et al. (2016) explain that the only costs sole proprietors incur are license fees and business taxes because they do not operate as a legal entity from their owners.

Unlike corporations and limited liability companies, which file separate income tax forms from the owner, sole proprietors’ business taxes are incorporated in the owner’s tax return. Moreover, owners can make decisions faster, interact with customers to have a personal touch, and adapt quickly to changing needs. Thus, sole proprietorship gives Sprinkles of Joy bakery the right balance of benefits and legal protections.

Administrative Management Approach

Henry Fayol’s administrative management approach seeks to establish a rational way of designing an organization as a whole. The management theory emphasizes the need to embrace formalized organizational structures, specialization, and delegation of power and authority to personnel in charge of various operational areas (Edwards, 2018). Falls 14 principles of management provide valuable insights that can help managers make strategic decisions and actions. Some of the principles manifest in Sprinkles of Joy’s decision-making and management processes.

The bakery is characterized by a clear division of labor among employees. According to this principle, workers have varying specializations, and thus they should be assigned tasks and responsibilities that align with their skills (Godwin et al., 2017). Consistent with this principle, the bakery’s management promotes staff specialization by assigning employees based on their knowledge and formal training. For example, chefs are responsible for production while the cashier oversees all accounting functions of the startup. This strategy enhances output, accuracy, and speed because workers become increasingly skilled and efficient.

Furthermore, the firm has clear lines of authority and responsibility. According to this principle, managers should exercise power to give employees orders and directions to get things done (Edwards, 2018). This principle is evidenced by the startup owner who has the right to give orders to her junior staff members, including chefs and cashiers. This authority comes with responsibilities such as ensuring optimal production and quality products and service delivery.

Lastly, Fayol’s remuneration principle stipulates that organizations should provide sufficient compensation and benefits to motivate their workforce and maintain their productivity (Godwin et al., 2017). The bakery applies this principle by ensuring that employee rewards are fair and competitive. The manager seems to understand how remuneration impacts staff performance and commitment to their employer. Thus, the firm integrates monetary rewards such as bonuses and non-monetary benefits such as compliments, greater responsibilities, and personal recognition to enhance employee morale, productivity, and retention.


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Edwards, R. (2018). An elaboration of the administrative theory of the 14 principles of management by Henri Fayol. International Journal for Empirical Education and Research, 1(1), 41-51. Web.

Godwin, A., Handsome, O., Ayomide, W., Enobong, A., & Johnson, F. (2017). Application of the Henri Fayol principles of management in startup organizations. Journal of Business and Management, 19(10), 78-85. Web.

Masroor, N., & Asim, M. (2019). SMEs in the contemporary era of global competition. Procedia Computer Science, 158, 632-641. Web.

Reeves, M., & Fuller, J. (2018). When SMART goals are not so smart. MIT Sloan Management Review, 59(4), 1-5. Web.

Sprinkles of Joy Bakery. (n.d.). Sprinkles of Joy. Web.

Starr, K. T. (2016). “I want to be my own boss:” Self-employment and legal business structures. Nursing2020, 46(5), 14-15. Web.

Villaluz, V. C., & Hechanova, M. R. M. (2019). Ownership and leadership in building an innovation culture. Leadership & Organization Development Journal, 40(2), 138-150. Web.

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