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Internal and External Environmental Analysis for the Bakery Business - Case Study Example

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This paper "Internal and External Environmental Analysis for the Bakery Business" discusses the environmental analysis relating to the proposed bakery business that is carried out by applying SWOTT analysis. The location selected for starting the business in London…
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Internal and External Environmental Analysis for the Bakery Business
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Download file to see previous pages Liberalization of foreign investment and technology policy of the government is supportive of establishing industrial units in the country.

Threat: The UK food regulatory authority is planning to enforce the EC Regulations relating to food labeling. The labeling requirements under the new regulations will affect the food industry as the suppliers will be legally obliged to disclose the GM content of foods to the caterers. Thus business firms in the bakery industry also will be effected through the exclusion of flexible manner of labeling arrangements in the case of flour confectionery involving GM Soya or maize. (Genetically modified and novel foods (labeling) (England) regulations, 2000).

Trend: The new substitute approach to hygiene risks of Safer Food Better Business provides a simple and straight forward risk assessment tool for small food business firms under the EU food hygiene legislation. (Fletcher, 2006).

Strength: Increasing demand for healthy and tasty food in the global food industry is supportive of new business firms. The global bakery products market is dominated by Europe with an estimated market share of 43.85 % in 2007. (Rano, 2008).

Weakness: The bakery industry is a matured industry. Intense competition between large scale firms exists in the industry which reduces the profitability of new small scale businesses as they lack economies of scale in operation and experience in the industry.

Opportunity: “The worldwide markets for bakery products by segment and geographic region predicts that by 2010, the world bakery products market will be worth about US$407 bn. A compounded annual growth rate of 3.93% is projected to cover the period 2001-2010.” (Rano, 2008).

Threat: In order to overcome the competition from large scale firms, small scale firms are forced to price discounting in products. Due to this, the profit margin per unit of small scale firms diminishes. ...Download file to see next pagesRead More
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