Environmental Analysis Of Lee's Bakery

The business my friend and I decided to start is a bakery café, named Lee’s bakery, which is a profit base business in selling a variety of cake. The reason that we choose to set up a bakery café is because this kind of business does not involve such a high amount of capital and risk as compared to other kind of business. Our bakery café located in Kuching that is a city of Sarawak. The market in Kuching trend has changed from simple cakes to designed cakes and other tasty pastries which will provide by the Lee’s Bakery. Thus, our main purpose is to provide a comfortable environment for people to chat while enjoying cake and coffee at an affordable price.
For our business, we operate at a low profit margin because we offer special discounts
The first most relevant threat is the economic. The implementation of goods and services tax (GST) which stared from 1 April 2015 is a threat to our long-term goal in attracting 60% of Kuching people in Sarawak by 2025. Our response to this threat is to decrease profit margin of product sold, reduce hiring too much worker, find a better supplier or renegades a good supplier price and try to get the supplies directly from supplier’s sources. Those actions will help to maintain our bakery café competitive pricing. Furthermore, the second external effect is the socio-culture. It is because the customers especially students are more brand conscious (Marx, 1995, p. 40). Therefore, students also tend to go to more branded food. This can affect our business goal to achieve over Rm300, 000 annual profits in one year. Our response to this threat is to improve our product quality and provide better facilities to compete with other branded outlets. Besides that, we still diversifying product to be sold such as coffee and maintaining a competitive pricing. The third external effect is political-legal which is both an opportunity and a threat for our business. In Malaysia, bakery business must get the Halal certification from JAKIM. It is because the major
These five departments will help the business to make sure the business operates smoothly. The responsibilities of finance department is managing advising, cash flow and sourcing long-term finance and prepare budget to help the managing directors. Information communication technology department (ICT) will assist and manage in use of technology and information resources. Moreover, operation department assist marketing department for identifying suitable work. As human resource department, management takes a place in human resources classification and human recruitment. Lastly, the marketing department are in-charge in promotion, pricing, product and distribution planning.
Furthermore, our business organisation is employing a combination of decentralization and centralization in different management level. As for decentralization, it can enable lower-level employees to quickly respond to solve problems and catch better opportunities. Thus, giving employees a sense of control can motivate them into doing better work. For centralization, our business organisation will avoid conflict over trivial issues and strengthen a