Profitable Investing in the Bakery Business - Report Example

Memo August 25, Future investors your report preparer Bakery Investment is a timely profitable venture. Dear Future Investors: Attached is my report on the profitable bakery business. The report is presented to you as our possible future business partners. With your valuable investment, you are sure to get your expected profit-based returns. Hoping you will invest in our bakery business now. Sincerely yours, --------------------- Signature Profitable Investing in the Bakery Business Student Name: Professor August 25, 2014 Abstract The report presents the evidences proving the viability of investing in the bakery business. The report is presented to future bakery investors. The popular county bakery business is a profitable business endeavor. The implementation of the SWOT analysis strategies will enhance revenues. The STEEP analysis indicates the bakery must maximize the social, environmental, technological, economic, and political factors to enhance customer buys. The graph shows that the bakery will produce an increase in both the monthly bread revenues and monthly net profits. Evidently, now is the time to invest in the highly profitable bakery business. Table of Contents Table of Contents 4 Introduction 4 Discussion 5 Conclusion 9 Recommendation 10 Introduction The report presents the evidences affirming the viability of investing in the bakery business. The report is presented to prospective bakery investors. The SWOT analysis discusses the four factors affecting the bakery revenues. The STEEP analysis explains external factors contribute to the customers’ demand for the bakery’s bread products. The graph focuses on the bakery’s trends. The report ends with a recommendation. Investing in the bakery business will generate favourably high returns1. Discussion To Inform Bakery Business The nearby county bakery has been operating for the past six months. The bakery serves the bread needs of the sleepy community. The poor and affluent residents of the community patronise the freshly baked bakery products. The bakery is planning to increase its revenues. To achieve this aim, the bakery is preparing this report in order to attract financially blessed individuals to invest in the bakery. The investors’ funds will be used to take advantage of two opportunities, increasing the bakery’s overall revenues and net profits. STEEP Model2 Social. The community is a sleepy town. Most of the residents are elderly persons and children. Others are retired individuals. These local sleepy residents love to eat bread. It is their favorite snack choice. Technological. The bakery uses top of the line baking technology. The baking equipment is new. The new equipment produces twice the bread produced by the bakery’s previously discarded baking equipment. The new equipment allows the bakers to focus more time selling the bread. Economic. The people have the money to buy bread. Food is one of the people’s basic requirements. The affordable selling price of the bakery’s bread products allows the poor to purchase the bakery’s bread alternatives. The rich neighbors prefer purchasing huge bread quantities. Environmental. The bakery complies with environmental laws. The bakery does not throw its waste products into the nearby clear river. The bakery equipment does not pollute the atmosphere. The equipment does not emit hazardous smoke. Political. The government’s laws control the bakery business. The bakery must comply with the government’s food-related statutes. First, the bakery must not sell stale bread. Next, the bakery must comply with the local government’s bread sanitation requirements. The bakery premises must be clean and pest-free. Analysis3 SWOT diagram Strengths The bakery sells high quality products. The bakery hired friendly bakery personnel. . The bakery opens for 12 long hours. The bakery has expert bakers. Weaknesses There are only two bakers. There only few bread choices. There is a long line of often irate waiting customers. Opportunities The bakery can profitably set up new branch in the next county. For customers who want to immediate munch their bread and relax, the bakery can viably allocate a portion of the bakery premises as a snack corner. Threats Two new competitors plan to open up a new branch within the county. One of London’s top bakeries will set up a local branch. Graph Bakery Operating Performance The above graph proves your investments in the bakery business will generate high money returns. During May, the bakery generated ₤ 1,946.67 revenues. The revenues include the amount paid for the bread purchases. During the month of June, the figure favourably rose to the higher ₤ 2,238.67 status. Next, the bakery generated a favourable ₤ 886.67 net profit during the same May period. During June, the amount favourably climbed to the ₤948.74 net profit level4. Further, the above SWOT diagram vividly affirms the bakery investment is a timely business venture. The bakery should maximise its strengths to generate higher bread revenues. The friendly bakery personnel keep the customers returning for more bread buys. With the employees prioritising the bread needs of the current and future customers, the customers feel they are treated as important individuals. The long bakery hours augment the bread revenues5. In order to increase the current monthly revenue trend, the bakery must resolve its weaknesses. The bakery must hire another baker. The new baker’s output will augment the current bread production. The bakery must sell more bread and cake choices. With more choices, the customers’ purchasing boredom is reduced to allowable levels. The new baker will help serve the needs of the customers, improving customer service.6 In addition, the bakery can take advantage of certain opportunities. The opportunities will increase bakery revenues. First, the bakery can set up a new branch in another county to increase overall revenues. Next, the bakery can segregate a portion of the spacious bakery premises as a snack corner. The customers can consume their bread purchases while relaxing within the bakery environs.7 Lastly, the bakery can counter the new competitors’ threats. One retired government employee is planning to set up a new bakery. One of London’s top bakeries is setting up a nearby competing branch. To successfully prevent customers from transferring to the new entrants, the bakery will reduce its bread prices by 10 percent. The price reduction will increase bakery revenues8. Conclusion The popular county bakery business is a profitable business venture. The implementation of the SWOT analysis strategies will increase revenues. The STEEP analysis affirms the bakery must maximize the social, environmental, technological, economic, and political factors to increase customer purchases. The graph affirms that the bakery will generate an increase in both the monthly bread revenues and monthly net profits. Evidently, now is the time to invest in the highly profitable bakery business. Recommendation It is highly recommended that people invest in the bakery business. The investments will augment the bakery’s current revenues. With the increase in the revenues, there is an automatic net profit increase. With the high customers’ demand for the bakery’s products, investors are assured of high returns on their valuable bakery investments. Part 2 Reflection The class textbook helps me craft a convincing influential report for my target audience, bakery investors. My tutor’s comments hone my report writing skills. I acknowledge my report incorporates the methods discussed in the class reference book, improving my professional communicating skills. The skills include adequate knowledge on sections, paragraphing, wording, numbering, and other grammar principles. The report incorporates flow, style, and other professional communication standards. By complying with the class concepts, I am able to create an effective document. The document influences the readers to take immediate action, investing in the bakery. The readers will eagerly invest in the bakery. Part 1 was accomplished using a standard report format. The format includes the introduction, discussion, conclusion, and recommendation. The discussion portion contains the informative business information and the realistic analysis part. The part convinces the report readers to funnel their funds into the bakery business. Further, the above part I report is based on gathered references. An accounting reference book explains the concept of bakery revenue and net profit generation9. The classroom reference book on business models increased the persuasiveness of the report. The SWOT and STEEP discussions indicate the business has both internal and external factors affecting the revenue generation. To add clarity, a strategic management book is used10. The book explains the importance of managing financial issues. To retain a high current and future customer demand, the same author affirms the bakery must implement customer-oriented strategic policies. Surely, the reference books help create a complete, convincing, and reliable business report. References Minaxi, R., Management Accounting, London, Pearson Press. Lane, N., Strategic Sales and Strategic Marketing, London, Routledge, 2013. Student Classroom Book author, Producing Influential Documents, City, Publisher. Read More