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MGMT 20144 Management and Business Context

Published : 31-Aug,2021  |  Views : 10

Question:

Identify a ‘hypothetical’ business opportunity that if you had the funds, time and drive you would pursue as a business start-up. This could be an idea you believe has the potential to become a business for you to own and grow. Provide a brief description of your organisation: its size, the industry and country/countries in which it will operate, the strategy and vision that it will adopt.

  • Describe the organisational structure that best suits your new business start-up.
  • Discuss the external and internal environmental forces that will impact your business organisation.
  • Analyse the risks that will confront your business organisation.
  • Describe the business practices that you will adopt to enhance organisational performance.
  • Discuss the most important functions within your business organisation and how these relate to its performance.

Answer:

The essay helps in analyzing the business plan for a hypothetical business that will be operated in Sydney. The name of the organization or the bakery that has been taken is Doughnut Bakery situated in Sydney and proper analysis has to be done that will include the different internal as well as external factors that can impact the entire business organization. The different risks have to be properly analyzed as this will help in understanding the different business practices that will help in enhancing the performance of the organization. The different functions of the entire business have to be analyzed properly as this will help in analyzing the performance of the respective organization.

Doughnut Bakery will offer broad array of espresso as well as baked products that will be of high quality. The respective bakery will properly offer freshly primed pastry as well as bakery products to the customers during the operations of the business. The size of the bakery will be medium sized at first as this will include about 15 staffs in the  kitchen department and there will be around 5 chefs who will be having specialized knowledge in baking. The industry will be food and beverages wherein Doughnut bakery will start their business and later on they will spread in other countries as well. Firstly, it will be starting their business in other cities as well such as Sydney along with in Singapore as well.

The strategy that will be adopted by the company is to provide best quality product with proper customer service along with implementation of the competitive pricing. The vision of the company is that Doughnut Bakery will be aiming to offer high quality bakery as well as coffee products at a competitive price that will help in meeting the demands of the customers and this is suitable for all income groups as well.

Business structure of Doughnut Bakery

Doughnut Bakery is a start-up company that will mainly operate in the food and beverage field. This is a blooming industry and has many opportunities related to growth and development. The structure of the organization is designed in such a way so that it addresses each and every issue related to the organizational processes. The owner of the business will be leading the different business related activities in the organization. The decisions regarding the different issues in the business are taken care by the owner. The capital investment in the business is done by the owner and he will try to organise the different processes in such a way so that the investment is paid off (Saka? et al., 2015). The owner is assisted in the different activities by the Assistant manager of the organization.

The assistant manager will help the owner in taking the various decisions regarding the increase in revenues of the organization. The Assistant manager is responsible for managing the next level of the managers including the kitchen lead, the market lead and the lead of the café. The lead of the café manages the staff who work in the services related to the café operations. The lead of the market manages the staff who work in the market for the procurement of raw materials that are required for the production of the different products. The lead of the kitchen manages the staff who work in the kitchen and develop the ultimate product that is to be supplied to the customers (Roper &Hodari, 2015).

Analysis of the internal and external factors related to the organization

Internal analysis of the organization with the help of SWOT framework

Strengths – The owner of the organization has already been working in this field for the last five years as he owns another restaurant in Australia. The bakery products are gluten free and this enhances the quality of the food. The staff of the restaurant have also been selected by analysing their experience in this field. The prices are also not quite high and this will provide an edge over the competition.

Weaknesses – The customers of this field are not well informed about the benefits of gluten free products. The area selected for the bakery is an upmarket area and is quite expensive as well. This affects the profitability of the organization as well (Huang et al., 2015).

Opportunities – The industry is booming in nature and this provides many opportunities to the owners of the organization. The passion of the citizens of Australia for food and bakery related products is also a major opportunity for the business.

Threats – The bakery will have to face stiff competition from the other organizations in the same sector who are old players of this area and have the knowledge about this market (Jarzabkowski& Kaplan, 2015).

External analysis of Doughnut Bakery with the help of Porter’s Five Forces framework

Rivalry between the different companies – The bakery industry is growing in the recent times and this has led to intense competition in the market. The competitors of Doughnut Bakery in the Australian market include, Black Star Pastry, Dojo Bakery, Sharp’s Bakery and many more. These companies are old players in the market and they have experience regarding the needs of the customers as well.

Bargaining power related to suppliers – The power of the suppliers of the company who are responsible for providing the raw materials is a major factor which can affect the profitability. The company needs to create many suppliers so that the power of the suppliers is less and they cannot control the prices of the products.

Bargaining power related to buyers – The power of the buyers to control the prices of the products also affects the profitability of the organization. The bakery needs to create a huge customer base so that the buyers cannot place extra demands on the company (Aithal, 2016).

Threat related to new entrants – Doughnut Bakery is itself a new player in the market of bakery products and it will be quite difficult for the company to counter the new entrant in the same market.

Threat related to substitutes – The Australian area is filled with many bakeries and the consumers also have many options. Doughnut bakery needs to differentiate their products in such a way so that they can create a competitive advantage in the market (E. Dobbs, 2014).

Risks confronting Doughnut Bakery

There can be different fluctuations in prices that can affect Doughnut Bakery and this will immensely affect the profit of the respective bakery shop as well. The number of opportunities can be lowered as there is huge competition in the Australian market and this can affect the business of Doughnut Bakery as well. Lastly, the health and safety of the customers is essential in nature that has to be properly maintained as well as ascertained as this will be a risk if the newly set up business firm do not provide proper products and services to the customers.

Adoption of business practices to enhance organizational performance

Proper focus on growth is essential in nature as this will help in enhancing the effectiveness of the organization. The quality management has to be properly enhanced as this will help in improving the overall efficiency of the organization and this will help in generating quality product in the organization. There has to be proper usage of advanced technology is essential in nature as this will help in increasing the effectiveness as well as efficiency of the organization. Proper usage of the social networking sites as well as mobile phones will help in improving the efficiency of the entire start up bakery business.

Proper operational efficiency is essential in nature as this will be providing cost effectiveness in the different products and services that are offered by them to make the customers satisfied (Akhavan et al., 2014). Proper training as well as developmental strategies has to be adopted as well in order to develop a proper plan for workforce in order to meet the organizational requirements. Proper engagement of the employees is required as this will help in improving the understanding between the employees and this will help in building trust among the employees as well. Lastly, proper competitive pricing has to be adopted by Doughnut Bakery as this will help them in gaining competitive advantage in the entire industry and this will help in enhancement of the business as well.

Essential functions within Doughnut Bakery and relation to performance

Proper skills set are essential in nature as this will help in improving the entire performance of the organization as well as employees. It is the duty of the manager of Doughnut Bakery to analyze the different raw materials that is required in order to deliver proper bakery products to the customers (Posthuma et al., 2013). Secondly, the production goals have to be met by the employees of the respective organization as this will help in improving and enhancing the performance of the organization (Hon, Bloom & Crant, 2014). The productivity plays a major role in the organization as this will help in determining the different functions that is required to achieve the organizational goals.

Thirdly, proper reviewing has to be done on the performance of the employees as this is a critical part that is required to be properly identified. This will help in establishing proper advancement in technology and this will help in improving the entire performance of the organization as well (Choudhary, Akhtar & Zaheer, 2013).Lastly, proper motivation is essential and is required to be adopted by Doughnut Bakery as this will help in development of the employees in the organization (Katzenbach & Smith, 2015).

Conclusion

The essay can be concluded by stating that the organization needs to follow the basic structure that has been discussed and thereby the roles and responsibilities will also be divided. The managers need to check the skills of the employees and thereby their performance also needs to be checked. The management needs to focus on the growth related opportunities and the efficiency of the operations also needs to be kept in check.

References

Aithal, P. S. (2016). Study on ABCD analysis technique for business models, business strategies, operating concepts & business systems. Browser Download This Paper.

Akhavan, P., Ramezan, M., Yazdi Moghaddam, J., & Mehralian, G. (2014). Exploring the relationship between ethics, knowledge creation and organizational performance: Case study of a knowledge-based organization. VINE: The journal of information and knowledge management systems, 44(1), 42-58.

Choudhary, A. I., Akhtar, S. A., & Zaheer, A. (2013). Impact of transformational and servant leadership on organizational performance: A comparative analysis. Journal of Business Ethics, 116(2), 433-440.

De Waal, A. (2016). The High Performance Organization Framework. (De Waal, 2016)

  1. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.

Hon, A. H., Bloom, M., & Crant, J. M. (2014). Overcoming resistance to change and enhancing creative performance. Journal of Management, 40(3), 919-941.

Huang, K. F., Dyerson, R., Wu, L. Y., &Harindranath, G. (2015). From temporary competitive advantage to sustainable competitive advantage. British Journal of Management, 26(4), 617-636.

Jarzabkowski, P., & Kaplan, S. (2015). Strategy tools?in?use: A framework for understanding “technologies of rationality” in practice. Strategic Management Journal, 36(4), 537-558.

Katzenbach, J. R., & Smith, D. K. (2015). The wisdom of teams: Creating the high-performance organization. Harvard Business Review Press.

Posthuma, R. A., Campion, M. C., Masimova, M., & Campion, M. A. (2013). A high performance work practices taxonomy: Integrating the literature and directing future research. Journal of Management, 39(5), 1184-1220.

Roper, A., &Hodari, D. (2015). Strategy tools: Contextual factors impacting use and usefulness. Tourism Management, 51, 1-12.

Saka?, M. B., Mišan, A. ?., Pestori?, M. V., Šimurina, O. D., Nedeljkovi?, N. M., Škrobot, D. J., ... &Mandi?, A. I. (2015). Buckwheat-enriched wheat bread: National market placement possibilities. Food and Feed Research, 42(2), 119-127.

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