Antonio Baking Company Analysis - Case Study Example

Name: Institution: Tutor: Date: Antonio Baking Company Business Plan Introduction As argued by (Tallant 2), a business plan is more important for entrepreneur be it large scale or small scale particularly in the current era where financial constraints (tighter economy). Indeed, business plan is tenet to business planned sustainable success. As such business plan is usually regarded as a statement which describes in details the business future, laying down plans of the business as well as devising how the plans will be implemented in achievement of the goals according to Wallace (DeThomas & Derammelaere 2-5). In reality, business plans are inherently strategic as they guide and facilitate the business entrepreneur in achievement of his or her ultimate goals, stakeholders and communicate the owner’s business idea (Greene 4-7). Indeed, they define the time at which objectives are achieved and the chronology of sustainable strategies. At the same time, business acts as a source of reference incase of drifting to the wrong direction. As such, business plan is a decision making tool in a business organization (Greene 4-7). More importantly business plan is a significant source of revenue for the business especially from external stakeholders for instance government agencies and investors, donors and also local and international leading body. In fact, no single investor would want to dish out resources such as money without having a proper and reliable plan of their use as highlighted by (Greene 4-7). Business plan gives an overview of very many strategies that the business intends to implement in an effort to realize goals which are also mentioned in the business plan. This paper therefore intends to develop business plan for Antonia Baking Company highlighting some of the fundamental details such as the mission vision and goals and objectives as well as other factors. Executive Summary As a business organization Antonia Baking Company is owned on sole partnership basis of Antonio and his family member where Antonio is the C E O. The business is based the ideas of offering the public baked products which meets the standards of nutrition hence adding value to the public. In order to achieve it goals, the company works with a number of internal and external stakeholders among them twelve employees. It main center of operation is one of densely populated town in Australia referred to as Brisbane hence offering large market share potential. While the company strives to make profits, it is highly steered by the mission of making Brisbane and its outskirts towns to be nutritionally healthy through offering products which are produced in a nutritionally sensitive environment. As such, the baked products are of varying types including cakes and breads. On cakes the company produces such cakes as Angel Food Cake, butter cake, butter cream cakes, Butter Cream Brown Betty, brownies & bars , Bûche De Noël, Bundt cakes among others. When it comes to bread the company bakes varying quantities hence appealing to different groups of market segment needs and wants. Further, the company has a lot of value for consumers and it would not by any means jeopardize the products quality at all cost hence winning trust and confidence from customers (Cpp 280-290). Although the company offers high quality products which ensure nutritional value standards, it offers the products at competitive and affordable prices which directly reflect the target market. In this regard, the Antonia Baking Company which is expected to sustainably grow large market targets the general public for its products and more importantly partying members of the society especially the college students, newly married couples young adults and more importantly wedding couples as they are regularly involved in parties and birthday parties celebrations. Finally, Antonio baking company has devised several market strategies which will aims at promoting, achieving and maintaining competitive advantage over other baking business organization around the region (Cpp 280-290). First with the utilizations of the companies strengths exemplified by value driven executive management, employees, advanced technology as well as flexible government legislation which offers good working relationship. Antonio the executive manager has trained as a nutritionist and therefore he acts as a resource to the company in the production process hence putting the organization at an upper hand than the competitors. Additionally, the company has the potential of acquiring large market share than any other company as it intensively intend to intensify market strategies implementation and to involve in more of corporate social responsibilities hence significantly wining more market share and consequently more sale revenue and sustainable success as argued by (Cpp 280-290). Pictorial representation of some of the products Birthday cake Birthday cake Boston cream pie Butter Cream Butter cake wedding cake Business Description As stipulated in the earlier currently a sole proprietors business structure which be altered to a corporate structure in future. The structure inherently a strategy as it provides proper centralized decision making. Unlike partnership, sole partnership avoids the dominant blame game and suspicions between partners and bestore the whole business responsibility to the owner (Cross 392). Antonio who is nutrition and who have a lot of business knowledge as he had worked in a sugar firm as a manager owns the business as the executive manager. He provides transformational leadership acknowledging high level of communication in the organizations as it strives to achieve its goals and objectives. Further, his leadership style enhances productivity as well as efficiency as it promotes citizenship in the work place and value driven activities. As a nutritionist, the manager is able to offer significant guidance to the production process as the company aims at emphasizing on a health public through offering nutritional healthy products. Mission statement Antonio Baking Company roadmap starts with the mission which highlights the purpose of the company hence serving as the ultimate standard of measuring our decisions making as well actions. To be part of the peoples moments of optimism as well as happiness To make a substantial difference and to add value to the society Antonio baking company Vision The company’s vision is to be the leading baking company in the region which advocates for healthy eating as well as being part of the public’s happy moments through providing high quality bakery products which are nutritionally sensitive. Slogan As a way of enhancing understanding of the mission and vision Antonio baking company uses a slogan “a healthy eating people is a strong nation” which facilitating to the positioning of the products. The company’s operates centrally from Brisbane a town which has where products are distributed to other towns. As a densely populated place which makes it to be ranked the third most populated cities in Australia, the town offers a larger number of potential consumers who can be converted to loyal customers given market strategies. For instance, the town harbors considerable large number of learning institutions hence offering some market segment such as the college students who as mentioned earlier are fond of parties and optimisms. Queensland University of Technology and Queensland University are for instance found there just to mention a few. The large number of families and kindergartens also offers impressive large potential customers particularly carry out birthday parties and graduation ceremonies respectively. Weddings parties and after marriage parties are equally many hence making the future for Antonio Baking Company to be admirable and impressive. While offering products to the consumers the company intends to value the customers and extend the relationship beyond the buyer-seller relationship to a caring relationship which is dominated by active communication. In this regard, the company develops communications mechanisms including E-business technologies as well as information technology so as to keep in touch with every stakeholder particularly the consumers. After sale services such as product delivery and other offers provision of seats and tents at a subsidized fee particularly during outdoor parties as well as offering reception services at a subsidized fee for loyal customers are some of the strategies that the company intends to attract and build the relationship with the loyal consumers. Further, the company plans to immensely involve in corporate social responsibility services such as healthy nutrition awareness forums and workshops to members of the public and offering nutritional booklets the public consequently growing the market share and the overall competitive advantage. Marketing strategy section As argued by (Doyle 299-303) marketing strategy is tenant to sustainable success of any business organization. As such marketing consultant and personnel cannot be taken for granted any organizations which aims at aching competitive advantage over other competitors (Jaakkola 25). Although there are varying number of competitors who among other includes Buderim Baking Company, Goldsteins Bakery, Uncle Bobs Bakery Belmont , Antonio Baking Company as a late market entry strategy intends to take advantage of the pioneers mistakes and utilize advantages such as advanced technology in the production process as well as the unexploited large population. Due the robust marketing strategy implementations the company plans to invest especially during the first two years of its existence. Given the current potential of larger market share the company intends to attain more geographical markets in other regions hence attainment of national level market share in the next three years. To achieve this company intends to intensify the use of online marketing and sales, triple the number of distribution channels in the next three years such that the products reach the consumers any time they need them and through reliable means and in a larger geographical area. Marketing segmentation As argued by (Athanassopoulosa 192-197)marketing segmentations entails fragmentation of the total market target share into stratums or sub markets of homologous groups of consumers who share the same needs and wants in the same products. Antonio Baking Company plans to intensify in marketing segmentation in an effort to adequately respond to the needs of different market groups through product differentiation in accordance to the groups consumer needs. With the help of intensified marketing research on consumer demographics which are extremely dynamic especially in the current era where globalization and advancement technology has taken roots (Athanassopoulosa 192-197). Given the many strategies the company intends to attract more than a thousand customers per month and to triple the number of loyal customers in a period of three years given the full implementation of the market strategies. Market positioning To maintain and increase the number of customers the company also requires market positioning where by products are made to stand in the midst of other competitors products (Philip 500). As such, positioning can be done by the as a marketing strategy to lure customers therefore increasing the gross sale revenue. To achieve market positioning Antonio Baking Company plans to achieve market positioning through the use of their slogan and business logo. Additionally, the company embarks on intensive market research to verify and comprehend the different colors that appeals to the consumers more than others later use them in packaging materials and in its premises such as vehicles, buildings and many others. While the company manufacture quality product, it will also ensure that the products are competitively priced such that they become positioned in the market as affordable and of high quality. In an effort to record high sale revenue every very other day the company plans of enticing consumers through the use of discounts and offers. For customers who beat a certain threshold in their cumulative buying such for a period of every three days will receive other products for free as discount. Further, the company will decide on when to sell some products at a subsidized price in every one week of the month hence attracting more customers which culminate to high sale revenue. As argued by (Philip 500), total daily sale can also be escalated by attachment of extra service to the product. In this regard so as to fundamentally boost daily sales, the company intends to offer varying services to the customers including delivery services for instance retailers and offering reception services to customers at a subsidized fee compared to other customers. Similarly for the company to realize more sales and maintain the image of the company more real and alive, the company aims at implementing some marketing strategies such as advertisement, formal promotions, public relations and the word of mouth promotions. For advertisement the company will utilize every niche available including print media, electronic media social media advertisement such as the use of social media services such as face book, twitter as well as Google+. The company will make use of internet advertisements. In public relations which according to (Govindarajan 261)has a lot significance in advertisement, the company will sponsor some of the public events such as football events, and other social events. This will culminate to market the company’s products and services hence more sales. Financial plan sections Financial section is meant interpret the profitable results in factual figure which shows that if all the strategies are implemented the business is going to gain profit. As the most important part of a business plan the owners should always try maintain and utilize it so as to always verify whether the business is in the right tract. As argued by Wallace it should always it should be kept updated as in most cases the business environment is extremely dynamic and so should the financial section. As such Antonia baking company intends to produce an income statement which includes revenues expenses as well as profits monthly. The business which expects to make substantial profit and therefore the total expenses are expected to be lower that the gross sales that is gross sales- expenses= profit. The cash flow statements will always be used as decision making references. For instance the following table shows cash flow for the first two quarters of its existence Antonio baking company for the first two quarters of the year Month Cost in $ Sales in $ Sales –cost in $ Total in $ 1 6000 2000 -4000 -4000 2 5400 4000 -1400 -1400 3 4000 5700 1700 1700 4 4000 8000 4000 4000 5 4000 9540 5540 5540 6 4700 10000 5300 5300 7 Total 11140 Profit and loss statements Profit and loss statements also are parts of the Antonio Baking Company and they represent a financial activity over a period of the years. More precisely, the statement reflects non- cash items including depreciation and also any cash procure capital items. As such, the company intends to give profit and loss statements after every four months and using it the company Monthly income statement Further on financial section the company also plans to release monthly income statements which aim at showing the amount of profit or loss that the company makes monthly. At the same time, the statements evaluates also evaluates the different departments in a company hence showing the most profitable departments. Finally the company tracks the overheads as well as the expenses hence pinpointing the company strengths and weakness. Sources of funding The company requires financial funding for set up as well as general running of the business. Particularly funding is fundamental initially in buying of equipments and production facilities such as ovens and others. Moreover, the company needs important assets at first, such as distribution vehicles as well some premises even if it means renting and therefore capital is adequately needed. In this regard, the company intends to be funded by some saving from the owner as well as a loan from the one of the local banks. The amount also will be used to procure raw materials as well as affecting the initial production process before the company starts earning some profit. Summary Antonia baking company intend to achieve sustainable sustainability through robust implementation of the business plan including the marketing strategies such as the marketing strategies and operation strategies as mentioned I the paper. Such marketing strategies include market positioning, marketing segmentation, distribution and more importantly the marketing mix. Although the company has some little funding, the owner also intends to gain funding from different investor which will facilitate attainment of his goals in a short period and efficiently hence the reason for his brief financial details. Work cited Allard K. Battling for Competitive Advantage. New York John Wiley & Sons. 2004 Athanassopoulosa Antreas. Customer Satisfaction Cues To Support Market Segmentation and Explain Switching Behavior. Journal of Business Research. Vol 47, Issue 3, pp 191–207. March 2000 Cross Frank. West's Legal Environment of Business: Text and Cases: Ethical, Regulatory, International, and E-commerce Issues. Cengage Learning Publishers.2007 Cpp Bill. Competitive Advantage-Fixing Small Business Security and Safety Problems. Bill Wise CPP Publishers. 2008 DeThomas Art & Derammelaere Stephanie. Writing a Convincing Business Plan. Barron's Educational Series. 2008 Doyle Peter. Value-based marketing. Journal of Strategic Marketing. Vol 8, Issue 4, pp 299-311 2000 Greene Cynthia. 21st Century Business: Entrepreneurship. Cengage Learning Publisher. 2010 Jaakkola Matti. Strategic Marketing and Its Effect on Business Performance: Moderating Effect of Country-specific Factors. Master’s Thesis. Pp 1-137. 2006 Philip Kotler & et al. Marketing, 7th ed., Pearsons Education Australia, Frenchs Forest, N.S.W. 2007 Govindarajan Vijay. Implementing competitive strategies at the business unit level: Implications of matching managers to strategies. Strategic Management Journal. Vol.10, Issue 3, pp 251–269. 1989 Tallant James. The Importance of Strategic Planning in the Business Environment. GRIN Verlag Publisher. 2011 Read More