Yummy Bakery Strategic Management Assignment

8/10/2019 Yummy Bakery Strategic Management Assignment

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The Yummy Bakers & Sweets Case Study:


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Table of contents

Introduction . 03

History of YBS 03

Present Condition 03

Map view . 03

Vision and Mission . 04

Product Manufacturing ... 04

Management & employees . 04

Business Structures . 04

Core Value of YBS . 05

Opportunities and Challenges . 05

Marketing . 12

Competitors 06

Competition Bases .... 07

SWOT Analysis . 07

E.F.E ... 09

I.F.E . 09

Financial analysis . 10

Cultural and social class . 12

Recommendations .. 14

Conclusion . 15

Remarks . 16


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The beginning

In the area of Sariab Road, Quetta, YUMMY took start with a medium shop. The concept of

fresh, healthy and hygienic food in affordable prices achieved quick popularity among bakery

customers. The bakery products for breakfast were provided in limited areas. Yummy Bakers

& Sweets become very popular in its first year. The huge number of customer are willing tobe touch with YBS. Where in Sariab area it among the list of top bakeries due to few

Bakeries.

History

Abdul Zahir s/o Takari Abdul Razzaq, the Founder and Chairman of YUMMY, started hisjourney with his cousins Kamran Khan and Abdul Raziq, the unique concept of hygienic and

healthy food on 19th March 2013 in Sariab Road. They bought three big shops at Green

Town at the cost of Rs. 6,600,000 on the month of December 2012. After that furnished the

shop by latest tiles and decoration pieces which cost them Rs. 300,000. After searching in netand thinking a lot then finalized the name of the Bakery '' The Yummy Bakers & Sweets

(YBS)''. Mr. Zahir who is the owner of YBS appointed his cousin Mr. Kamran as manager.

The Yummy Bakers & Sweets (YBS) started out by selling fresh bakery products and sweets

to its local customers. They are in the process of being listed in the registered category. They

are giving subsidiary for supply cost for just being in the top of the bakery in Sariab to attract

the customers. We see his journey starts in fact from the day he planted the idea of bakery

products at Yummy Bakers & Sweets opposite University of Balochistan, where they had

served his best for almost last one years in the same field and got his expertise.

Present Conditions

Yummy Bakers & Sweets (YBS) produce Rs. 35,000 Bake products daily serve its customers

with fresh bread, cake, butters, biscuits, cookies, Flavors for Biscuits both soft and harddough, Cookies, wafers, cream fillings and other bakedproducts.


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Vision

The vision of YUMMY, throughout is to provide a quality food in affordable prices. The

Vision of Abdul Zahir was higher than any crisis. Since he belongs to well-known family,

sincerity and integrity has been his code of conduct. He has strong believe in Allah that He is

providing whatever he has. His entire Life is an example of it. Although now the care takersof the YUMMY Bakery are he himself and his cousins. But his vision remains unchanged

over the time.

Mission

In this age of rapidly changing life styles consumers are driven to change their eating habitsconstantly. YUMMY responds to their desires and extended its existing product line.

YUMMY has built a huge network of retail shops/mini bakeries all over Sariab and now

stepped towards Satellite Town, Qambarani road and Raisani road.

Product Manufacturing

We aim to make your life more pleasurable through nutritious methods and latest machinery

in our factories. YUMMY is planning to launch its own factory in the area of Sariab Road.

The milk products are processed under the scientific methods with the help of latest bakery

machineries and supplied fresh.

Bakery

YUMMY first started its bakery where only products of breakfast were provided in the

beginning. But YUMMY is presenting now more than fifty varieties in bakery products.

Mithai


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After the success of bakery products in 2012 Yummy decided to fill Sweetness in your Life.

YUMMY produced Mitha is with fresh and pure ingredients. YUMMY has its own plant for

making fresh varieties of mithai. That is why YUMMYs unique and innovated taste in Mitha

are always appreciated.

Breads

Now Yummy has willing on March to introduced plain milky as well as multi grained and

high fiber breads in different flavors and textured looks. Which promotes healthy digestion,

weight loss and also stabilizes cholesterol and sugar level in blood. Especially for Sugar

Patients.

Business Structure

Though Yummy Bakers & Sweets is new in the market but its supply of breads and bakers

products are being supplied in all over the Sariab, Raisani road, Kirani road, few areas of

Satellite town and Sariab link road. There are 35 mini Bakeries who are purchasing Bread ,

cake, sweets etc from YBS on daily bases.

Cause Marketing & Core Values

Ingredients with a Purpose is one of the key philosophies behind the bakery at Everyday

Gourmet. Each and every ingredient containing nutritional or functional value means thatyour body will actually use that ingredient for a purpose. Your body utilizes real nutrients for

energy to feed your cells, skin, nails, hair and all of your organs, resulting in a healthier body.

We also strive to use only the finest Natural, Organic and Fair Trade ingredients continuing

our mission of providing you with the finest snack foods and baked goods available today.

We consistently search the globe for innovative, functional ingredients to compliment our

products, always trying to provide customers with as many nutritious energy producing

calories as possible.

When making the decision to use a new ingredient we research the supplier and its ethical

practices, so our loyal customers can feel confident about the quality and origin of ingredients

in their purchase.


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Weve committed to you that every ingredient we use has a purpose, but its just as important

to us when a supplier has a critical mission or purpose.

Core values of YBS

IntegrityWe are driven by our ethical and moral principles to practice business with

honesty and openness. We hold ourselves accountable to our customers,

our suppliers, and our employees to live our mission and core values.

SustainabilityWe see the big picture. Pearl takes responsibility for its role in the

farmer-miller-baker-consumer connection and for its impact on the local economy

and the environment. We consider stewardship in all of our decision-making.

QualityWe start with the best ingredients and use traditional methods to create

consistently high quality handcrafted bread, pastries, sandwiches, and coffee

drinks. Our commitment to excellence extends beyond our products to the

service and value we provide every day.

PeopleOur strength comes from relationships. The character of our business is unique

because of the people we employ, the community we serve, and the local businesses

and farmers who provide us with quality ingredients.

RespectWe care. At the heart of the bakery is a deep appreciation for the principles of

traditional baking and for the community we impact.

Opportunities and Challenges in Bakery

The grain-based baking and cereals industries have a lot to contend with these days.

Some issues, like rising commodity and energy prices are washing over the entireindustry. But others tend to hit baked goods squarely in the eye, such as consumers

shifting notions of healthy foods, gluten-free and acrylamide concerns. And thats

coupled with a mostly mature market predicted to experience only modest growth.

Competitors

Yummy Bakers & Sweets is new in the market compair to their rivals. In the list of their

rivals are so many but YBS is focusing and willing to beat its near one Bakeries. YBS has

four main competitors, which are follows;

1. Naveed Bakery.


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2. Al-Salwa Bakery.

3. Noor Bakery.

4. Zehri's Bakery.

These are the main rival to YBS because they 2 minutes drive far from each others. Their

sales are also same in some respect because of area.

Competition bases:

Yummy competition is based on

1) Speed

2) Cost

3) nutrition

Speed:

Yummy competes on several bases mainly to make their customers happy by providing

speedy, affordable and nutritious food

Through extensive market research and survey the organization discovered that its customers

desire speed as one of the restaurant top priorities. Therefore yummy vision aims to provide

fast friendly and accurate service.

Cost:

To offer high qualityproduct at low cost require efficient processes throughout the entire

yummy organization

Nutrition:

yummy third main competitive base is nutrition. the organization understands that health

trend is an increasingly popular trends therefore the organization has recently focused extra

ordinary efforts to promote their new nutritious choices.

Corporate social responsibility:

At yummy making customers happy is what our business all about. And we know it take a lot

to make that happen. Yummy work hard to provide every customer with a choice of bakery

products. And an experience that exceeds their expectations

Although the company strives to compete on several bases their ambient goal is customer

satisfaction. They reach this goal through a variety of effort. Yummy visionary goal is to

continually improve their organization. Management continuously checks every aspect of therestaurant throughout the day. In addition to short term continual improvement yummy


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organization also think ahead for long term improvement. To ensure that they serve 100%

safe food yummy conducts food safety test multiple times throughout the day.

Along with internal improvement to the organization yummy also collect external

information from its customers to discover which aspect could be improved. The manager is

supposed to talk to at least one customer during each travel path and the manager can

immediately react to this direct face to face communication.

Marketing strategy:

The marketing mix and market researchHaving identified its key audiences a company has to ensure a marketing mix is created that

appeals specifically to those people.

The marketing mix is a term used to describe the four main marketing tools (4Ps):

product

price promotion

and the place through which products are sold to customers.

Using detailed information about its customers yummy marketing department can determine:

1.

What products are well received?

2. What prices consumers are willing to pay?

3.

What TV programmes, newspapers and advertising consumers read or view?

4. What restaurants are visited?

Market researchMarket research is the format which enables Yummy Bakers & Sweets to identify this key

information. Accurate research is essential in creating the right mix to win customer loyalty.

In all its markets yummy faces competition from other businesses. Additionally, economic,

legal and technological changes, social factors, the retail environment and many other

elements affect yummy success in the market.

Market research identifies these factors and anticipates how they will affect people's

willingness to buy. As the economy and social attitudes change, so do buying patterns.

Yummy needs to identify whether the number of target customers is growing or shrinking

and whether their buying habits will change in the future.

Market research considers everything that affects buying decisions. These buying decisions

can often be affected by wider factors than just the product itself. Psychological factors are

important, e.g. what image does the product give or how the consumer feels when purchasing

it. These additional psychological factors are significantly important to the customer. They

can be even more important than the products' physical benefits. Through marketing, yummy

establishes a prominent position in the minds of customers. This is known as branding.


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External Factor Evaluation (E.F.E)

KEY EXTERNAL FECTORS WEIGHT RATINGS WEIGHTED SCORE

Opportunities

1. National Expansion.0.06 1.6 0.096

2. Tax Relaxation. 0.03 2.0 0.06

3. Innovation in product process. 0.04 2.3 0.092

4. Launching new technology. 0.05 1.8 0.09

5. Producing new Bake products. 0.06 3.0 0.18

6. Quality Service. 0.07 2.1 0.147

7. Customer care by home delivery. 0.06 1.1 0.068

8. Introduce online services. 0.08 1.2 0.096

9. Expand businesses at national level. 0.06 1.9 0.114

Threats

1. Demand of low calories Products. 0.08 1.7 0.136

2. Huge number of competitors. 0.07 2.0 0.14

1. Suppliers monopoly in area. 0.05 2.5 0.125

2. Electric and Gas load shedding in Sariab. 0.04 1.5 0.06

3. Political instability 0.06 1.8 0.108

4. Terrorism and Extremism. 0.07 2.5 0.175

5. Un-certain events. 0.05 1.6 0.08

6. Shortage of commodities. 0.07 3.2 0.224

Total 1.00 1.99

Internal Factor Evaluation (I.F.E)

KEY INTERNAL FECTORS WEIGHT RATINGS WEIGHTED SCORE

Strengths:

1. Quality is their first aim. 0.12 3.1 0.372

2. High qualified management. 0.09 3.2 0.288

3. Useage of new technology. 0.07 2.5 0.175

4. Time management. 0.10 3.0 0.300

5. Healthy food for diet conscious people. 0.05 4.0 0.2006. Consistent expansion of stores. 0.08 3.4 0.272

7. Huge number of resalers. 0.07 2.0 0.140

Weakness:

1. Unskilled and uneducated employees 0.07 2.1 0.147

2. Lack of home delivery services. 0.08 1.9 0.152

3. Lack of on line advertisement. 0.06 2.8 0.168

4. Lack of new ideas and innovation. 0.08 3.2 0.256

5. Huge number of competitions. 0.06 1.7 0.102

6. Limited resources. 0.07 2.3 0.161

Total 1.00 2.602


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Balance Sheets of Yummy Bakers & Sweets

ASSETS LIABILITIES AND EQUITY:

Cash Rs. 800,000 Accounts Payable Rs. 1,000,000

Land 4,200,000 Utilities Payable 401,000

Building 2,300,000 Unearned Revenue 285,000

Accounts Receivables 1,200,000 Interest Payable 105,000

Notes Receivables 900,000 Notes Payable 209,000

Vehicles 500,000 Total Liabilities Rs. 2,000,000

Equipments 900,000 Equity:

Inventory 200,000 Owner's Equity 9,000,000

Total Assets Rs. 11,000,000 TOTAL LIA & EQU. Rs. 11,000,000

Income Statement of Yummy Bakers & Sweets

Per Month Per Year Percentage

Sales Rs. 1,250,504 Rs. 15,006,048 100%

Less: Cost of Goods Sold 625,000 7500,000

Gross Profit 625,252 750,6048 50.0%

Less: Expenses:

Salaries Expense 150,000 1,800,000

Electricity & Gas bills 32,000 384,000

Telephone Bills 8,000 96,000Maintenance and Repair 15,000 180,000

Miscellaneous Expense 12,000 144,000

Transportation Expense 14,000 168,000

Other Expense 9,000 108,000

Total Expenses Rs. 240,000 Rs. 2,880,000 19.1%

Earnings before Tax Rs. 385,252 Rs. 4,623,024

Taxes @12% 46,230 554,760

Net Income Rs. 339,022 Rs. 4,068,264 27.1%

Social Responsibility

At Yummy Bakers & Sweets, we follow the Social Responsibility Program designed

around activities that address the challenges in which society is currently immersed.

We center our efforts on four programs:

Committed to your Health

Committed to the Environment
http://www.bimbobakeriesusa.com/about_us/social_responsibility.html#healthhttp://www.bimbobakeriesusa.com/about_us/social_responsibility.html#envirohttp://www.bimbobakeriesusa.com/about_us/social_responsibility.html#envirohttp://www.bimbobakeriesusa.com/about_us/social_responsibility.html#health


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Committed to our Associates

Committed to our Community

Committed to your Health

Our Bakery has always been keen on fostering the adoption of a healthy life style, whichincludes a well balanced diet as well as frequent physical activity. Through our

"Committed to Your Health" program we have undertaken action in four specific areas:

Healthy Products

Promotion of Physical Activity

Nutritional Education

Alliances and Research

As part of our ongoing commitment to offer a healthier mix of products that cater to thedifferent needs of our consumers.

Current initiatives under implementation include producing only 0g trans fat products

and we are developing products with less sodium. We have also been introducing new

products with added benefits such asprebiotic breads;products with extra fiber, products

with phytosterols for cholesterol reduction, as well asproducts containing Omega 3 for

cardiovascular health. We have also been introducingproducts with less than 100

calories per serving.

Committed to the Environment

Ourconcern for the environment is genuine and we believe that we can all do our part to

heal our planet so that present and future generations may come to enjoy it as well. Our

goal is to be a company that stands out for its care of the environment through a

rational use of natural resources by implementing efficient and profitable technologies.

We are also helping to develop an environmental cultureamong our personnel,

customers, suppliers and society.

Our commitment with the environment revolves around fivekey areas:

Power and energy savings

Reduction of air emissions

Water savings

Integrated waste management systems

Environmental stewardship

For each one of these areas we have set specific annual objectives. We have a dedicated

team of environmental specialists.
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Committed to our Associates

Our associates are at the heart our company. They are key to our success. In fact, some of

our associates have been working for the company for over last 1 years. We appreciate

their everyday contributions and are committed to helping them reach their full potential

by offering a healthy and safe work environment in which the Person is at the center of

our Values.

We make our best efforts to offer development opportunities for associates who

demonstrate a commitment to service to our Customers, our Consumers, their peers and

the community. Some of these opportunities include a tuition reimbursement program for

associates wishing to complete their bachelors degree or pursue their graduate studies.

Committed to our Community

In addition to our constant focus on improving internal operations, we alsocontribute tothe general well being of our society.We want to contribute by being responsible

corporate citizens and bysponsoring programs that benefit children, education, nutrition

and the environment.

Diversity

At YBS, we operate in a multi-cultural marketplace. Therefore, we believe that having

a workforce comprised of people from different backgrounds and life perspectives

working in every level and area of the organization is key to our success and critically

important to our employees.

YBS is an equal opportunity employer and does not discriminate against qualified

applicants on the basis of race, colour, creed, religion, ancestry, age, gender, marital

status, national origin, disability, veteran status or any other legally protected status.

YBS will endeavour to make a reasonable accommodation to known physical or

mental limitations of a qualified applicant or employee with a disability to enable

them to perform the essential functions of their job.
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Recommendations:

1) Yummy should develop menu choices that are healthy and socially acceptable.

2) Use local food sources where possible

3) Localizing its management teams in managing the operations and decisions making

regarding the Quetta market.

4) R&Dproduct development

5)

Yummy B&S should open many franchise in different places.

6)

Yummy B&S could be able to develop new products in new tastes to better satisfy the

local market needs.


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Conclusion:

Yummy started its operations in 2012 and now it is leading bakery products service in Quetta

for its valued customers. There are many challenges for this company to do business in

Quetta regarding religious, cultural and political aspects. Mostly people belong to the middle

class so food prices are also a big problem in Quetta. The strategy of the company focuses on

offering different products services as compare to its competitors. The project of extending

the business should not be done unless they bring a stronger marketing plan that focus on the

price of Yummy menu.


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References

www.business.com

Review different Case Studies.

Senior Students Guidelines.

Teachers Suggestion and Support.


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Remarks

Yummy Bakery Strategic Management Assignment

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