Assignment 2: Industry and Risk Analysis
October 30, 2011
Industry and Risk Analysis
There are many risks involved in the new business venture. Entering into the business industry can be a hit or miss and having a business plan to ensure you are targeting the right audience and marketing the business to the proper market can help ensure the business stays on track.
Future Outlook and Industry Trends for the New Venture
After assessing the future outlook growth potential for bakery businesses it has shown that it is steadily rising by 1% each year. With over half of Americans loving desserts more and more of these types of businesses are ...view middle of the document...
The bakery will also provide classic baked goods such as a variety of cookies designed for the kid at heart, specialty pies for everyday needs, and flavored cakes for any particular occasion or event. Bakeries should also be able to cater to the more health conscious individuals. Taking the old fashioned flavors and developing a truly tasteful dessert without the calories and fattening ingredients are becoming more and more important in today’s society. This is important for individuals struggling with health issues as well as those that choose to be more health conscious. Sugar free snacks and pastries are also becoming more popular. Although this will not be the focus of desserts this option will be available in certain selections on the menu. Offering a selection of sugar-free cookies and cakes by using ingredients such as applesauce and certain artificial sweeteners will be provided. Weight consciousness or dietary needs can be a downer when it comes to sweets. So to include everyone the option will be available.
The initial focus will be on building clientele with classic international baked goods, but the plan is to add coffees, hot teas, milk and milkshakes to the menu. This will allow customers to come in from the weather and sit down to enjoy a sweet treat along with a complimenting beverage. The bakery will be a medium sized bakery that will include seating areas with chairs and tables, a bar area as well as outside seating to enjoy the scenery. Risk analysis is a technique to identify and assess factors that may jeopardize the success of a project or achieving a goal. This technique also helps to define preventive measures to reduce the probability of these factors occurring and identify countermeasures to successfully deal with these constraints when they develop to avert possible negative effects on the competitiveness of the company. After identifying and categorizing the risks a team or owner identifies the controls that could mitigate the risk. The decision for what controls are needed lies with the business manager. The conclusion as to what risks exists and what controls needed should be documented along with a related action or business plan for control of the initial process. Bakeries can be a hit or miss business so knowing the competition, target audience, supply/demand for the product, and knowing whether or not to incorporate new products are just a few things to consider.
Legal Concerns Related to the New Venture
There are many things to consider legally when starting a business: pricing, packaging, insurance, contracts, equipment, certifications, and multiple types of licensing and legal team. Contracts with distributors are going to be one of the most important factors. The relationships that will be built with these distributors will determine how successful the business can be because the business will depend on them for dependable...