Nature Of Business
This business plan is prepared to start a new business by using online method with respect to the starting of new business which is online cake selling. The business will be named as CakeSky.com. The new start up business belongs to the bakery industry. The baking industry of Australia is complex and it is the mixture of both high industry concentration and high fragmentation. Here, high concentration can be seen at the corporate level whereas high fragmentation can be seen upon small to medium size enterprise. At both wholesale and retail level, the baking industry of Australia is highly competitive in nature.
In addition to this, the bread and bakery industry consists of following type of products such as cakes, pancakes, pastry, rolls and breads etc. Furthermore, the annual turnover of Australian baking industry was account to 5.1 billion dollar in the year 2001 and 02.
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- Delivering the orders as fast as possible
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Furthermore, the analysis as being done by experts havehas stated that, a there is significant boom will be seen in the given industry as the needs and demands of the buyers are changing. This depict that, there are many prospects available for the online cake selling business. In addition to this, customer convenience is another major factor which will play the crucial role in increasing with regard to increase the sales and profitability related condition of the new business (Sahlman, 2008). In accordance with the given context, now a daysday’s customer are demanding for such type of goods and services which can be availed by them at their home. The givenThe needgiven need of buyers will be met by through online cake selling business which is creative method of delivering the cake to the buyers. or innovative revolution in baking industry. Here, byBy complying with the giventhe given type of practices, satisfaction of the customers will be maintained. Thus, through this way the success of new newly start up business named as CakeSky.com in Australia will be assured in an effective way.
Background of business
There are some online cake deliverydeliveries shops operating in runs in Australia which are also performing well in market. The given shops providesshops provide services to the some areas of Australia. Thus, this indicatesthis indicates that, there are still opportunities available in market for the starting of given type of shops or venture. Thus, it can be said that, the new business launched will prove to be be proved as beneficial. In addition to this, with the launch of the given business, there are several benefits identified which will be gained by the customer of Australian market. This enterprise will help in fulfilling the convenience related demands of the buyers. Inconvenience will be caused to the buyers when they have to wait at the respective shops or have to stand in the long queue with an aim to avail the ordered cake (Barringer, 2012). In addition to this, the online cake selling business will also provide opportunity to the buyers with regard to see the structure as well as design of the cake which they will order. Thus, on the basis of given feature an appropriate order will be made by the buyers.
The name of new business will be CakeSky. This business will be launched at online platform. The organization will provide online cake delivery services to the customers. In this respect, a site will be created which is named as CakeSky.com. The site will display the pictures of varied type of cakes which can be ordered by the buyers. Here, in the given sites separate categories of cake will be made on the basis of occasions. In addition to this, the site will also provide cake designing related option to the buyers which will allow them with regard to make the design their cakeof their cake in an effective manner. This option is new and hence it will play very effective role in terms of attracting large number of buyers towards the company. Furthermore, the site will also have the feature of price negotiation. With the use of this feature, customers can perform negotiation with the company named as CakeSky regarding the price of particularof particular cake which they considered toconsidered to be inappropriateineffective. Moreover, customer feedback related feature will also be added in the respective site of corporation (Club and Chen, 2015). By using the given option, organization can carry out improvements in its existing goods and services. Through this way, it can perform necessary increment in its sales and profitability related condition.
The strategic capability of new business is analyzed. The firm possessfirm possesses the team of talented and skilled chefs who will provide assistance to the firm in terms of creating and designing the cake as per the needs and demands of the buyers. By using the given capability, CakeSky can provide assistance to the cake designing feature which is as being displayed on the by it in it's website. In addition to this, the firm is financially sound which can also be considered as another strategic capability of the organization (Monks and et.al., 2014). There is sufficientSufficient amount of finance will be needed by the firm in order to perform its businessits business in Australian market in an effectual manner. Here, financeFinance is needed for the marketing of new business. Furthermore, the organization also possess strong and effective logistic department which can provide assistance to the firm in terms of delivering the ordered goods to the buyers within the given specified time limit. The success of e-business largely depends upon the logistic system. Further, This is because, it is with the help of given section only the objective as being framed by the manager of firm can be met in an effectual way (Louie, 2011).
For example, CakeSky has the goal to deliver the ordered cake within 20 minutes duration. This objective of the enterprise will be met if corporation possess strong logistic department. In addition to this, the features that will be added by cited firm in its online website can also be regarded as another strategic capability of CakeSky. For example, by using the feature like design your own cake corporation can establish it'sits unique and distinct image in market in comparison to their the competitors (Jones and et.al., 2013). The given thing will also enable the organization with regard to attract the large number of customer towards the corporation in an effectual manner. This will lead the to corporation in the form of increased profits and sales.
Description of products and services
The detailed description regarding the products and services that will be delivered by the cited firm through its online website is depicted in below:
Products: The goods such as cake, cup cakes and pastries will be sold through the CakeSky site. The cake will be displayed on the site on the basis of particular occasion. For example, separate sections will be created for the birthday and wedding cakes etc. In addition to this, the organization will also offer sugar free sweet delights to the buyers who are health conscious and are suffering from disease like diabetes. Besides cake, the organization will also offer varied type of gifts to the customers (De Oliveira, Shayani and De Oliveira, 2013). The gifts inclusive of birthday cards, paintings and flowers etc. Thus, this website can be considered as one end shop which helps in fulfilling all the product related needs and demands of the buyers.
Services: Some services will also be given by CakeSky along with the specified products. The organization will provide 24 hours home delivery services. In addition to this, the company will also give services like online payment system. This service will be optional. This is because; there are some buyers who will prefer to pay prices for the product after receiving the same. Thus, these are the major services which will be provided by the cited organization to respective buyers.
Before starting the new business it is being required by the organization to that it must carry out its carries out its efforts in in terms of assessing the condition prevailing in the business environment of country where it is planning to open its new for opening its new operation. For the purpose to analyze the situation of Australian market, the tool like PESTEL analysis can be used. The detailed explanation regarding the same is depicted in below:
Political: This includes the factors like tax and interest rates which leads to significant impact on CakeSky. For example, the government of Australia has raised tax rates upon the companies that belong to the bakery industry. In order to deal with the given condition, manager of cited firm have to carry out its efforts in terms of charging high prices for its product. Charging high rate for the goods will be proved negative for the new firm (Connolly, Wolfgram and Santos, 2012). It is due to the fact that, by charging high prices upon the product it became difficult for new corporation t to influence more number of buyers to use the services of corporation in an appropriate way.
Economical: It is also required by the firm to analyze the economic condition of nation before taking any strict decision regarding the new venture like CakeSky. However, lack of consideration regarding the given aspect will lead to hamper the sales and profits of the corporation in a negative way.
Social: It includes the element like change in the tastes and preference of buyers. It is essential for the manager of the firm like CakeSky to upgrade its knowledge and understanding regarding needs and demands of the customers. This is because; by complying with such type of practices only satisfaction of the buyers can be maintained. Moreover, through this way cited firm can improve its sales and profits.
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Technological: It is also required by CakeSky to perform regular up gradation in its website on the basis of technological changes prevailing within the particular industry (Miller, 2014).
Environmental: The firm needs to fulfill all the environment related rules and regulations associated with the business. The CakeSky has to follow rules relating to disposal of cake wastage at appropriate place.
Legal: The firm must also consider all the IT related laws and regulations before starting business at online platform (Ward, 2011). But, if not considered by the organization at that time it will become difficult for it to maintain continuity of business in the given market.
The competitive analysis with specific reference to new business named as CakeSky is carried out. In accordance with the given context, from the analysis it has been identified that, the cited firm will face competition from famous online cake delivery company of Australia such as Delicious cupcake Australia. The organization also produces cakes for all type of occasions. Besides this, the Delicious cupcake Australia also offers catering services to its buyers which can be considered as the biggest strength of the company. In addition to this, there are some high street famous cake shops which prove as the biggest competitor for the new venture. These shops provide fresh products to the buyers. Hence, it can be said that, the bakery industry of Australia is highly competitive in nature. However, with an aim to compete with the given corporations CakeSky can take assistance from its strategic capability. Through this way, enterprise can mark remarkable presence in the specific industry.
Segmentation is the way in which whole market of product will be divided into several sub groupgroups. The product of CakeSky will be segmented on the basis of demographic structure of customer which includes age, gender and income related criteria. For example, CakeSky will offer more cartoon character related cake varieties for the buyers who belongs to 6-13 age categoriesage categories. Likewise, unique and innovative cake designs will be offered to the customer who belongs resides in the 15-25 age categorycategories. However, Hover, there are some simple and contemporary cakes which will be made for the rest age group of buyers. In addition to this, sugar free cake will also be offered to other customer who arecustomers who are conscious towards their health (Butler, 2015).
The differentiation targeting strategy will be used by CakeSky with an aim to influence its respective buyers. It is the tactic in which more than one promotional message will be framed with regard to the specific goods and services. For instance, in order to influence health conscious buyer’s promotional message for the product will be made in such a manner which leads to talk more about beneficial aspect of cake.
The unique feature of the website of firm such as design your own cake and price negotiation willnegotiation will be used with an aim to positioned the distinct and unique image of new business in the mind of respective buyersrespective buyers. These are the options which hasoptions which have not been being given by any firm. Thus, by using this unique characteristic, large number of of customer will be attracted by CakeSky which will further results in leads to it in terms of increased profits and sales.
Marketing provides a way with the help of which information regarding the newly developed products and services can be spread among the respective buyers. In accordance with the given context, the sales and marketing strategy is framed for the new online cake selling business named as CakeSky. In order to spread the information about the new venture, marketing communication means like advertisement will be used. For the purpose to give the advertisement about online cake selling business, both electronic and non electronic mediums will be utilized. The non electronic means consists of placing ads in magazines and newspapers etc. For example, manager of CakeSky has decided to place its ads in the magazines (Feenstra, 2014). Then in this condition, it must select that particular magazine which that provides articles relating to the food and beverages etc. The given mean selected is effective as well as economical. In addition to this, by using this mean of marketing communication, organization can influence large number of buyers. Furthermore, the business will also get also be promoted with the help of social media website like Facebook and Twitter. Further, the electronic mean like television will be used for the purpose to display ads regarding the new venture. Here, in order to display the ads selection of that particular channels will be carried out which basically showcase all food related programs. With the help of given means of distribution, organization can attract large number of buyers towards its. Thereby, it can build competitivebuild competitive image of its brand in the market where it is opening its store operation.
For the purpose to increase the sales of product in Australian market, price penetration tactic will be used by the manager of CakeSky. It is the strategy in which low prices are set for the newly produced product. By using this pricing strategy, CakeSky can cover its cost which it has incurred in the process of developing and establishing new venture and product (Price penetration, 2015).
The product produced will be distributedbe distributed directly to the buyers. Thus, it can be stated that, the organization such as CakeSky will deliver its cake through its own website which is named as www. CakeSky.com.
Operation And Management Plan
In this section, the roles and responsibilities being played by the different members of company will be depicted.
Operation team: This team includes individual such as chef and their assistant who prepare the cake as per the order which is being given by buyers. This team has the responsibility to complete the order of cake within the given specified time limit. In this team, around 10 members will be required.
Marketing team: This team has the duty to spread the information about new business among wide number of customer (Thomas and et.al., 2014). Thus, in case of marketing team 5 members are sufficient to carry out the operation. In addition to this, it is with the help of given team only, CakeSky can attract different types of customer towards its services and thereby can create its competitive position in Australian market.
Online website management team: This team will be responsible for making up gradation in the website of company. In this department, team of 4 members will be required who will be responsible for performing changes in the site.
In order to start online cake selling business, capital of around 22000 Australian dollar will be required. Here, 10000 Australian dollar will be obtained through personal saving. However, another 4000 Australian dollar will be raised by using other means of obtaining the finance which is through of taking loan from the bank. The money obtained will be invested in the different type of activities. For example, around 2000 Australian dollar will be invested in the development of website of company which is named as CakeSky. In the similar way, 2000 Australian dollar will be needed with an aim to carry out the recruitment of talented and skilled employees who will produce the cake as per the communicated demand. 2000 Australian dollar money will be invested in the marketing and sales type of activity which enableenables the corporation with regard to increase the customer raise the customer for the particular products and services. However, rest 2000 Australian dollar money will be investedbe invested for the purpose in purchasing to purchase the raw material for cake preparation. The cake packagingcake packaging will also be covered in the under the given cost.
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From the whole report, it can be concluded that for the individual it is beneficial to start online cake selling business in Australian market as it possess wide opportunity. In addition to this, from the financial statement it has been estimated that the sales of the firm will be increased significantly during the time period. This can be considered as positive aspect for the given business. Furthermore, by charging low prices for the product, the manager of organization will attract large number of Australian buyers towards the company. Thereby can gain benefits in the form of increased profits and sales.
Some recommendation are suggested to individual with regard to the given business. These are all depicted in below:
- At first it is recommended to the person that it must take measures towards its general expenses. This is because, the given financial statement is depicting that the general expenses of company will show many ups and down.
- Secondly, it is also suggested to person that it must set appropriate budget while starting the new enterprise. This is because, through this way manager of firm can track its financial resources and thereby can establish an effective control upon the same.
- At last, it is recommended to person that it should place ads about its new venture in the famous newspapers of Australia. This is because, through this way firm can spread information about its business among large number of citizens. Thus, can achieve necessary improvement in profits in the year of establishment.
You may also like to read:
- Connolly, K., Wolfgram, L. and Santos, J., 2012. Steps to Leading Change: A Transportation Agency's Business Plan Approach. Transportation Research Record: Journal of the Transportation Research Board. 2274. pp. 15-22.
- De Oliveira, L. S., Shayani, R. A. and De Oliveira, M. A. G., 2013. Proposed business plan for energy efficiency in Brazil. Energy Policy. 61. pp. 523-531.
- Feenstra, D., 2014. The Standout Business Plan: Make Irresistible-and Get the Funds You Need for Your Startup or Growing Business. Journal of Applied Management and Entrepreneurship. 19(4). pp. 116.
- Jones, C. and et.al., 2013. The student business plan: useful or not?. Industry and Higher Education. 27(6). pp. 491-498.
- Louie, T., 2011. SkillAddiction Business Plan.