Overview of Tabors Bakery

Tato and his 4 brothers are two of the five partners in the family-run bakery business known as Tabors Bakery. With shares in exchange for services and money, the five partners have joined forces. In Northwest Washington, there will be a bakery. Northwest Washington has a high population density despite its fame. Furthermore, a number of hotels, important hospitals, and banks are situated in the region’s major cities. As a result, the majority of the workers at these organizations live in Northwest Washington. In this field, the partners in this company have a wealth of experience. Additionally, they are aware of how the local competition operates. Moreover, two of the partners are graduates with a degree in Business Management and two years of experience. Importantly, the two have surveyed all the competitors in the area, and they know what their strengths and weakness are. Tabors Company will, therefore, have a competitive edge over its competitors in the area. Thus, this bakery expects to build a strong market position in the major towns in Southwest Washington by offering its products at competitive prices to meet the demands of the area residents. The company hopes to raise funds from the partner’s shares. The funds raised will be used to buy raw materials, pay employees, buy equipment and pay for overhead costs such as advertising and insurance.

Objectives

Primary objective of Tabors company is to establish a world class bakery in Northwest Washington

To build a strong market position in the major towns in Southwest Washington

Mission

Tabors Bakery aims to offer high-quality products in Northwest Washington to meet the demands of both the middle and upper-class residents. We are a health sensitive organization, and we will provide delicious and healthy products.

Keys to Success

Offering products at competitive pricing

Providing the highest quality products

Type of operation

Tabors Bakery will be involved in the manufacture and transportation of goods to its retailers. It is, therefore, a manufacturing and a servicing company.

Form of Ownership

Tabors Bakery is owned by five partners/shareholders. It is therefore a partnership form of business. After the establishment of the company, the management hopes to registers Tabors Bakery as a Limited Company.

General Manager

Consultant

Financial Manager

Marketing Manage

Operations Manager

Unskilled Workers

Fig 1: Tabors’ Bakery Organogram

Staffing and Management

The management

The management team shall consist of the General Manager, financial manager, marketing manager, the productions manager and the Bakery specialist. The bakery specialist’s work will be to scrutinize and implement the shareholder’s policies in order to maximize their wealth. The bakery specialist has worked in a similar role at one of the bakeries in Northwest Washington, and he has 5 years of experience in the bakery industry. The financial manager is a first class degree in financial management and has worked in the banking sector for three years. She will ensure that the production and the bakery do not run out of cash to carry out their daily activities. Also, she is responsible for proper management of funds in the organization.

The production manager will be required to have a degree in Economics. He/she will be responsible for all the production activities in the company. He will ensure that goods are only produced according to the demand of the consumers. He will also be in charge of the stores and will make sure that the stores do not run shot of goods. The marketing manager will be one of the Tabors brothers. He will be responsible for informing the company about consumers changing demand, informing the public about our products, creating links between the customers and the business and making sure that the product manager has the right information of what consumers in the market want. Furthermore, the consultant will ensure that the company’s operations go as planned and all the other manager are answerable to him.

PRODUCTION/OPERATIONS

Production

In order to produce our products, we would need some basic materials such as milk, flour, yeast and sugar. For bread and cakes production, the process will be as below.

The dough is mixed and kneaded

Before mixing, the flour will be sifted and then poured into an industrial mixer with a capacity of 3000 pounds. Yeast will then be poured into the gluten. The role of yeast here is to emit carbon dioxide and feed off sugars in the grains. Also, yeast produces gas bubbles whose purpose is to leaven the bread. The other ingredients will then be added into the mixer depending on the type of bread to be made. This process is expected is expected to take around 12 minutes.

Fermentation

The dough will also be fermented depending on the type of bread to be made. This process will be carried out using a high-speed machine so that the yeast cells can multiply at a faster rate.

Molding and baking

After fermentation, the dough will be conveyed to another machine which will re-shape it into loafs and then drop them into pans. With this process, Tabors Bakery expects to be producing 3000 cakes and 1500 loafs of bread on a daily basis.

Delivery to the Customers

Since breads and cakes have shorter expiry dates, the finished product will always be delivered to the retailers immediately after the production process is finished. We will also carry out Research and development to make sure that our products are not only of high quality but also different from those of the competitors.

Hours of Operation

The bakery will be operating for seven days a week as from 8 am to 6 pm. The employees will, therefore, have to work on a rota.

Facility

Since the company still does not have enough cash to build its own premise, we will rent a building in Northwest Washington and install it with all the necessary equipment.

Suppliers

The suppliers of our raw materials will be located in the nearby towns in Northwest Washington just a few kilometres from where the facility will be located. This is expected to make the supply time to be short so that the resources for production are readily available.

Inventory Management

The management will make sure that the inventory is properly managed so that there are no shortages during production.

MARKET ANALYSIS

The focus of Tabors Bakery is to meet the demands of the local resident in Northwest Washington.

Industry Analysis

The food industry in Washington is very large, and for sure many businesses in the region are involved in the production of cakes and bread. In addition to competing with all the restaurant and supermarkets, it will also be competing with other bakeries in Northwest Washington. However, our business is unique because our products will be different from those of the competitors. Most importantly, our products will be of high quality and will be at reasonable prices. For now, there is no major regulation facing the industry. Also, the economic environment in the country is good, and this means we will be able to get loans from banks at fair interest rates. The lifestyle of the people in Northwest Washington is also changing. The ageing population need healthy products which are free from sugar. Our company will manufacture a variety of bread including those which are sugar-free. We also intend to use state of the art technological equipment in our production processes.

The strengths of Tabors Bakery include the availability of managers with many years of experience in the hospitality industry. Our managers are well trained and have more than two years of experience in the bakery business, and they are enthusiastic about this business idea. Another strength is that the partners have agreed to contribute a substantial amount of capital which will help in running the business. Our major weakness is that we do not have an existing customer in Southwest Washington. Nonetheless, we hope to use our strengths and opportunities in the external environment to overcome our weaknesses. We will use social media to inform customers about the existence of Tabors Bakery in Northwest Washington and the products that the company offers. Our major threat is well-established bakeries with bigger budgets.

Competitor Analysis

Tabors Bakery has so many competitors some of which are well-established businesses in the region. However, the competition in this area can be described as sparse because these companies do not provide high-quality products as Tabors Bakery. Moreover, most of these companies produce almost similar products whereas customers are looking for something different and unique. Therefore, for our bakery to be different in the market, we intend offer highly differentiated products to serve the needs of both middle and upper-income markets which are the primary consumers of bakery products in Southwest Washington. We will offer sugar-free cakes, brown bread and cakes with attractive colours different from those of our competitors.

Although our company is new in the market, we hope to have a competitive edge over our competitors. This we will achieve through offering products at competitive pricing and providing the highest quality products in the market. Also, we will ensure that our customers do not run short of bread by supplying them on time. Importantly, we are aware that we are in business and competing with the best in this game. So in anything that we will do, we will always put our customers first.

Market Research

The food industry in the US has experienced rapid growth recently. Our market research also revealed to us that Southwest Washington about 70% of the residents in the area were dissatisfied with the products offered by our competitors. Therefore we concluded that there was a need to set up a new bakery in the area. We also founded that there were shortages in the supply of bread and cakes, especially during weekends. This is why we decided to operate even during weekends so that our customers can have fresh products even on weekends.

Target Market

The target market for Tabors Bakery is the entire Southwest Washington and its environs. However, we aim to serve the middle- and upper-income markets and will produce more products for this group of people. We understand that income is not equally distributed among populations and therefore we shall provide products of different sizes and prices while still minting high quality.

MARKETING PLAN

Product

The bakery shall be the sole manufacturer of its products and will sell different variety of bread. We also intend to position our products in the market by providing customers with high-quality products at cheaper prices. The products of this bakery will include:

Bread (Brown bread)

Pastries

Cakes and Sugar free cakes

Pricing

We will use the penetration pricing strategy so that we can attract more customers and gain their loyalty. We know we might make some losses, but we must make our products known to the customers. After the consumers have known our products, we will adjust our prices.

Promotion

Advertising and promotion are intended to inform and remind our customers about our products to compel them to demand more. We will use personal selling, bill boards and social media to promote our products.

FINANCIAL PLANS

Sales Forecast

Sales

YEAR 1

YEAR 2

YEAR 3

Breads

$12,000

$16,000

$21,000

Cakes

$7,000

$8,000

$10,500

Pastries

$9,000

$10,400

$14,000

Total Sales

$27,000

$34,400

$45,000

Direct Cost of Sales

YEAR 1

YEAR 2

YEAR 3

Breads

$3,000

$4,500

$6,500

Cakes

$2,000

$2,666

$3,333

Pastries

$1,600

$2,400

$2,800

Total D.C of Sales

$6,600

$9,566

$12,333

Works Cited

Barbour, Tracy. “Business Plans Play Important but Varied Role in Commercial Lending.” Alaska Business Monthly, vol. 32, no. 6, June 2016, pp. 28-32.

Chambers, K. Dennis. The Entrepreneur’s Guide to Writing Business Plans and Proposals. Greenwood Publishing Group, 2008. The Entrepreneur’s Guide.

Brad, I. “Business Plan -- Major Management Tools in Development of a Business.” Agricultural Management / Lucrari Stiintifice Seria I, Management Agricol, vol. 16, no. 2, Apr. 2014, pp. 214-217