Instructions:
In (week 7) of this course you were asked to identify a business that interests you. The signature assignment will pull together some of the assignments you completed these past 9 weeks and you will submit a paper that addresses the following:
1.
Explain your business (150 words minimum).
2.
Next, explain what type of leader you plan to be to make your chosen business successful (250 words minimum).
3.
Describe why ethics is an important component of doing business and elaborate on how you will ensure ethical behavior with business partners and associates pertaining to your chosen business (300 words minimum).
4.
Complete a SWOT analysis and Ansoff’s Matrix for your proposed product/service (1 page). Additionally, describe the ideal marketing mix for your proposed product/service (minimum 300 words).
5.
Write a 5-year strategic plan for your chosen business where you articulate your priorities and your key performance goals (600 words minimum).
6.
Use the sales forecast from
(week 9)
and include the two chosen descriptive statistics with explanations (150 words minimum).
v The total word count for this paper is 1250 words which is approximately 5 pages, double spaced, Times New Roman 12 pt.
Running Head: Business Idea to Sell Cupcakes 1 5 Business Idea to Sell Cupcakes Business Idea to Sell Cupcakes Student Name Department of Business, Name of The University Business Fundamentals ******* ******* Introduction Companies are using different matrix and tools for identifying the problems related to the existing services or products. SWOT analysis and Ansoff matrix can be called an effective strategic marketing tool that helps for determining the market potential and for understanding the strengths and weakness of the business. SWOT analysis is an effective technique for assessing a company's strengths, weaknesses, opportunities, and threats (Andrew 2019). Ansoff's Matrix is a marketing strategy approach that helps a company figure out how to grow its product and market. In this research paper, we are analysing the SWOT and Ansoff’s Matrix for starting a Cupcake business. Business Idea We are planning to start selling Cupcakes, and the name of the company is Sweat Cakes. The company is planning to provide cupcakes to all cities of Canada, and for attracting customers, the company is providing cupcakes with different flavours and styles. SWOT Analysis Strengths 1. Low production cost 2. Online and Offline Order Booking 3. Low initial investment Weakness 1. Skilled labor required 2. Lack of innovative tools and methods for making cakes Threats 1. Competition 2. Alternative products 3. Easy replication ideas Opportunities 1. Healthy cakes 2. Untapped market For starting the business and cost incurred for the production is very low compared to other types of business. The cupcake business will not require more labour, and it allows the company to hire a minimal number of employees. Diversifying work tasks in this manner is a common approach in the sector. Using this strategy, overheads will be minimized or avoided, allowing employees to focus on developing specialised talents or skills related to the business operations. The major issue related to the Cupcake business is that we required quality baking tools and IT support for providing better services to the customers. Sweat cakes have to face tough competition from internal and external competitors, and anyone can easily start and operate a cupcake business (Tat et al 2017). PMI obviously wants higher revenues as they are going to get aid the management fee and billing fees for the increased revenue only. Ansoff’s Matrix The Ansoff Matrix, also known as the Product/Market Expansion Grid, is a tool that companies use to evaluate and plan their growth and development strategy (Loredana 2017). The matrix depicts four techniques for assisting a Sweat Cake growth, as well as the risks connected with each strategy. While analysing the matrix we can understand that company is planning to fix clever pricing. Customers do comparison shop, bargain, and go out of their way to obtain coupon codes. However, not every store will succeed by undercutting its competitors. The company is also planning to provide healthy cupcakes, and it helps for attracting more customers. In future, the company wants to start bakery courses online and they also want to expand to other countries. Conclusion Strategies like SWOT and Ansoff Matrix always helps for making changes in the existing business practices and policies followed by the company and it also helps for improving the performance level of the organization. . References Andrew, W. (2019). Strategic Marketing. Retrieved Date 29/5/2021 https://bookboon.com/ Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research, 10(51). Loredana, E. M. (2017). The use of Ansoff matrix in the field of business. Annals-Economy Series, 2, 141-149. 36 Month Sales Forecast 36 Month Sales Forecast 36 Month Sales Forecast Fiscal Year 12020 2020 Jan Frank Vickers: Enter Start Month Here.FebMarAprMayJunJulAugSepOctNovDecTotals Product NameSweet Cup Cakes Units252525283033374044495459450 Selling Price$3.00$3.00$3.00$3.00$3.00$3.00$3.00$3.00$3.00$3.00$3.00$3.00 Total Sales$75$75$75$83$91$100$110$121$133$147$162$178$1,350 % of Total5.55%5.55%5.55%6.14%6.75%7.43%8.17%8.99%9.88%10.87%11.96%13.16%100.00% 2021 JanFebMarAprMayJunJulAugSepOctNovDecTotals Units667483931041171311471641842062311,601 Selling Price$3.50$3.50$3.50$3.50$3.50$3.50$3.50$3.50$3.50$3.50$3.50$3.50 Total Sales$232$260$291$326$365$409$458$513$575$644$721$807$5,602 % of Total4.14%4.64%5.20%5.82%6.52%7.30%8.18%9.16%10.26%11.49%12.87%14.41%100.00% 2022 JanFebMarAprMayJunJulAugSepOctNovDecTotals Units2653053514044645346147068129331,0731,2347,695 Selling Price$4.00$4.00$4.00$4.00$4.00$4.00$4.00$4.00$4.00$4.00$4.00$4.00 Total Sales$1,061$1,220$1,404$1,614$1,856$2,135$2,455$2,823$3,246$3,733$4,293$4,937$30,778 % of Total3.45%3.97%4.56%5.24%6.03%6.94%7.98%9.17%10.55%12.13%13.95%16.04%100.00% JanFebMarAprMayJunJulAugSepOctNovDec 01234567891011 Explanations Analysis & Explanation The sweet cup cakes will be the product for which the sales forecast is done for three years i.e.; from 2020 till 2022 The strategy that is used for the sales forecast is less production of cakes in the first year i.e. 2020 with keeping the price of the cup cakes at market price. A price lesser than the market price will increase the customer base but might not generate revenue and profit which is required for business expansion. Further, the cup cakes are produced less in units for the first year as there are chances of the cakes remaining unsold and wasted. For the first three months (Jan to Mar) 2020, we have kept the number of units of cup cakes to be 25 and then from April onwards till December 2020 there has been an increase of 10.5% increase in the units or quantities of cup cakes. We have considered the price of the cup cakes to be CAD$3.00 for the fist year. This price is the average market price of cup cakes in Canada (Felicity and Krystle, 2021). In the second year onwards i.e. from 2021 there has been a growth of 12% in the cake units or quantities compared to the previous year 2020. This is the growth phase of the new cup cake company and the number of units as well as the price of the cup cakes are expected to increase to CAD$3.50. The increase in the price of cup cakes is due to the customers awareness of the product and gradual increase in sales. Finally, in the third year 2022 we have projected an increase in the per units quantity of cake by 15% over the previous year 2021. This is because the sweet cup cakes company will be operating at full phase during 2022 and will be competing with the competitors in cup cakes in Canada. We have also increased the price of the cup cakes to CAD$4.00 as there will huge customer base, brand awarness, different products and varieties of cup cakes and various costs associated with the business operations of cakes. In 2020, the total sales of the cake company was $1350 while in 2021 it grew to $30778. Therefore at the end of 2022 the sweet cup cake company is expected to increase its total sales by 2180%. References https://www.craftsy.com/post/price-your-cupcakes-like-a-business-pro/# https://www.craftsy.com/post/price-your-cupcakes-like-a-business-pro/