You have been hired as a manager for a small local business called "Sweet Treats Bakery". The bakery opened three years ago and has gained a loyal customer base due to the delicious and unique desserts that it serves. However, the business has been struggling to grow and expand, and the owner has decided to bring in new management to help with this.

Business information:

• Sweet Treats Bakery serves a variety of desserts, including cakes, cupcakes, cookies, and pastries.
• The business is located in a small town with a population of 10,000 people.
• The bakery has four full-time employees and two part-time employees.
• The owner of the bakery is passionate about baking and has limited business experience.
• The business relies on local customers, and there is no delivery or shipping service.
• The bakery is open six days a week, from 8 am to 6 pm.

Factors that can impact business decisions:

1. Competition:

There are two other bakeries in the town, and they offer similar products at a slightly lower price. Furthermore, there are several grocery stores that offer pre-made desserts, which are cheaper.

1. Seasonal demand:

The bakery experiences high demand during holidays, such as Christmas and Easter. However, there is a lull in demand during summer and some other off-season months.

1. Labor costs:

The cost of labor is a significant expense for the bakery. The owner has not been able to hire additional employees due to the limited budget.

1. Marketing:

The bakery has not invested in marketing, relying on word-of-mouth to attract customers. There is no social media presence or advertising.

Be the Manager – Make the decision 

1. Planning

What steps can the manager take to increase revenue and profitability, considering the competition, seasonal demand, and labor costs?

• Be Specific.
• Utilize environmental scanning tools (PESTEL, SWOT…)to support your decision
• Decide on your Strategic Plan to Increase Revenue and Profitability
  • Create 2 Tactical Plans that help to achieve the strategy 
  • For each Tactical Plan, you should include at least two Operational Plans (At least 4 Operational plans in total) to help achieve the tactical plan.

1. Organizing: 

How can the manager set up the bakery's operations to minimize costs and maximize efficiency? What can be done to improve inventory management?

• Design an Organizational Structure
  • Include work design/role for employees
    • Include a Job Analysis for any new recommended positions in addition to the current staff
• How will you improve inventory management?

1. Leading:

How can the manager motivate and lead the employees to increase productivity and maintain quality? What training and development can be provided to employees to maintain customer satisfaction?

• Motivational Plan to incentivize employees
  • Connect to at least one motivational theory 
• Design a Customer Service Training for your employees 

1. Controlling: 

What measures can the manager put in place to monitor and control expenses, quality, and customer satisfaction? How can feedback from customers and employees be used to improve performance?

• What control measures will you implement to monitor and control expenses? 
• What control measures will you implement to monitor and control the Quality of your products? 
• What control measures will you implement to monitor and control Customer Satisfaction? 
  • Remember you have options in terms of feedforward, concurrent and feedback controls
  • How can feedback from both customers and employees be used to improve performance?

Answer rating: 100% (QA)

Planning Strategic Plan to Increase Revenue and Profitability Utilize Environmental Scanning SWOT Analysis Assess strengths unique desserts loyal cust... View the full answer