• Bakery Industry Analysis

• 3 Risks of a Bakery
• 4 Sample of a SWOT Analysis for a Restaurant

The retail bakery industry in the U.S. is highly fragmented, with 6,000 locations. The commercial
bakery industry was dominated by three major players in a $30-billion market as of 2013, according
to First Research, a marketing research company. First Research also projects low growth for the
near future. Your bakery company's strengths are the basis for ongoing success.

SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities and threats. Identifying a company's
strengths is a key part of the SWOT analysis a small-business owner does when preparing an annual
business plan. Strengths and weaknesses are under the control of a bakery. Taking advantage of
your company's strengths and overcoming its weaknesses lead to revenue growth and profitability.
Opportunities and threats are factors not influenced by the bakery. For example, a competitor
opening across the street is a threat, while a decrease in the price of flour is an opportunity.

Product
Whether you offer breads, rolls, cupcakes or wedding cakes, the major strength of a bakery is the
consistency and quality of its products. Setting your products apart from the competition gives you
an edge. You may decide to use only organic ingredients, bake the bread in small batches, or offer
unusual flavors for your cakes.

Social Media Marketing Efforts

Restaurants, cafes, food trucks and, of course, bakeries make use of social media sites such as
Facebook, Google+ and Twitter. Give your bakery a friendly and active presence on social media
sites to keep customers, friends and group members updated on specials, new items and discounts.
Every potential customer won't make it to your bakery the day when a special is offered, but the
offer reminds them of your cakes, cookies and desserts for future purchases. Bakeries with a strong
social media following can count that as one of their strengths.

Location
A high-traffic location for a retail bakery is a strength. The more potential customers that pass by
the bakery the more exposure it gets. While it's expensive to change a location, you can draw more
attention to your existing location with signage, displaying baked items in the windows and offering
samples to those who walk by. Locating the bakery near other non-competing food shops brings
their customers to you and vice versa.

Systems
A bakery may not seem like it requires a high-tech computer system, but having one in place geared
to bakery needs can be a major strength and a boost to productivity. For example, financial reports
may show that rye bread is sold out before the whole-grain bread, so the bakery should have more
rye bread on the shelves. The system would calculate how many rye bread loaves should be baked
and the cost of the bread. It would deduct the in-stock ingredients from inventory and put the
needed ingredients on the to-order list. The programming could also track employee sales to see
who is selling the most, as well as which time periods and days have the highest sales.

• Bakery Industry Analysis

• 3 Risks of a Bakery
• 4 Sample of a SWOT Analysis for a Restaurant

The retail bakery industry in the U.S. is highly fragmented, with 6,000 locations. The commercial
bakery industry was dominated by three major players in a $30-billion market as of 2013, according
to First Research, a marketing research company. First Research also projects low growth for the
near future. Your bakery company's strengths are the basis for ongoing success.

SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities and threats. Identifying a company's
strengths is a key part of the SWOT analysis a small-business owner does when preparing an annual
business plan. Strengths and weaknesses are under the control of a bakery. Taking advantage of
your company's strengths and overcoming its weaknesses lead to revenue growth and profitability.
Opportunities and threats are factors not influenced by the bakery. For example, a competitor
opening across the street is a threat, while a decrease in the price of flour is an opportunity.

Product
Whether you offer breads, rolls, cupcakes or wedding cakes, the major strength of a bakery is the
consistency and quality of its products. Setting your products apart from the competition gives you
an edge. You may decide to use only organic ingredients, bake the bread in small batches, or offer
unusual flavors for your cakes.

Social Media Marketing Efforts

Restaurants, cafes, food trucks and, of course, bakeries make use of social media sites such as
Facebook, Google+ and Twitter. Give your bakery a friendly and active presence on social media
sites to keep customers, friends and group members updated on specials, new items and discounts.
Every potential customer won't make it to your bakery the day when a special is offered, but the
offer reminds them of your cakes, cookies and desserts for future purchases. Bakeries with a strong
social media following can count that as one of their strengths.

Location
A high-traffic location for a retail bakery is a strength. The more potential customers that pass by
the bakery the more exposure it gets. While it's expensive to change a location, you can draw more
attention to your existing location with signage, displaying baked items in the windows and offering
samples to those who walk by. Locating the bakery near other non-competing food shops brings
their customers to you and vice versa.

Systems
A bakery may not seem like it requires a high-tech computer system, but having one in place geared
to bakery needs can be a major strength and a boost to productivity. For example, financial reports
may show that rye bread is sold out before the whole-grain bread, so the bakery should have more
rye bread on the shelves. The system would calculate how many rye bread loaves should be baked
and the cost of the bread. It would deduct the in-stock ingredients from inventory and put the
needed ingredients on the to-order list. The programming could also track employee sales to see
who is selling the most, as well as which time periods and days have the highest sales.
1. Small Business»
2. Managing Employees»
3. Employee Productivity»

The Weaknesses of a Bakery Company

by Brian Hill; Reviewed by Jayne Thompson, LLB, LLM; Updated January 22, 2019

Related Articles
• 1 The Strengths of a Bakery Company
• 2 Risks of a Bakery
• 3 The Pros of Running a Bakery
• 4 Bakery Industry Analysis

The retail bakery business in the United States is a multi-billion dollar market, but it is not without
its weak areas. Bakery products are perishable so there's a risk that you'll have a lot of wastage if
your products do not sell, and staffing may present an ongoing problem. The problems faced by
bakeries are possible to resolve in many places. When they are, the margins and profits are
potentially high.
Staffing Weaknesses of a Bakery
Your employees are the face of the bakery to your customers and employees are one of the many
problems encountered in bakery business models. Employees who can't answer questions about
ingredients for the breads and cakes, about why your bakery is better than the competition or why
using real cream, eggs and butter creates a superior product, results in lost sales.
Back of the house staff, those mixing and baking the cakes and pies can inadvertently sabotage a
bakery by not paying attention to ingredients and measuring. Baking is a science, and exact portions
are required for the products to turn out consistently delicious. Train the staff by offering samples of
properly prepared products. Post ingredient lists where the sales staff can easily find them. Test
employees on their knowledge, but make it fun rather than drudgery.

Operations and Cleanliness

Bakeries are inspected and graded by county or state health authorities. Those grades are usually
placed where customers can see them. A lower grade impacts the customer's perception of the
quality of your bakery. Serious infractions may cause the bakery to close until the problem is fixed.
Poorly operated bakeries waste ingredients and labor, increasing expenses and lowering profit
margins. Inadequate equipment results in the waste of cakes and breads not properly baked. Train
employees to keep the bakery sparkling at all times. Spot-check refrigerator and freezer
temperatures to make sure they are within allowable variances. Know what the health codes are and
enforce them.

Financial Management Processes

A bakery is a business and requires the owner to be a savvy financial manager as well as knowing
the ins and outs of baking. Baked goods are perishable inventory so if you don't sell the bread today,
it has to be marked down tomorrow. However, it still costs the same to bake. Knowing exactly what
your baked goods cost to produce gives you a better idea of what price to charge for them. If
finance isn't your strong point, hire an accountant to set up your accounting system and show you
how to use it, what reports are standard and what the reports mean.

Bakery Marketing Challenges

"Bake it and they will come" doesn't work in real life, only in the movies. You may think that your
baked goods will sell themselves, but unless you let customers know about your bakery, no one will
be eating your pastries. A nonexistent marketing plan is a weakness of a bakery. Use social media to
develop a list of friends, groups and followers. Announce specials, new breads and recipes through
the social media sites as well as on your bakery's blog or website. Create contests to name a new
muffin or bagel, awarding the winner a week's free supply.

Top business opportunities for bakery products

1. 1. Top 10 Business Opportunities For Bakery Products 1.Home Bakery Home made bakery
 products. The easiest way to do business in bakery products is to start it from home .You can
have limited customers and with unique recipes you can supply products like cakes,
cookies , biscuits for personal occasions like birthdays , kitty parties,
marriages ,meetings ,seminars and official functions &both govt or private firms. Best
options for some one with small budget www.bakerybazar.com
2. 2. Top 10 Business Opportunities For Bakery Products 2.Bakery Retail Shop Small Bakeries
When people or entrepreneur has finance constrains then can opt for small bakeries which
caters for local and close areas for sales .cost of advertisement are low .Can have direct
relationship with customer and can produce tailor made products for customers . Business
could be good if &products are innovative and quality superior to beat branded products
produced by bakery manufacturers .You might have seen people waiting for fresh bakery
products outside of bakeries. You can expect decent income from such bakery shops
www.bakerybazar.com
3. 3. Top 10 Business Opportunities For Bakery Products 3.Automated Bakery Plants Bakery
plants :Here investors can put up big automated plants for wide variety of bakery products.
The volumes are very high and caters mass population of different geography . This models
is useful for people with large amount of finances and interested in long term and brand
building exercise .Automated plants requires plant and machinery with higher levels of
supply chain networks with functions like sales marketing , procurement , finance and
production etc .Employee numbers are very high. Business options for entrepreneurs looking
for long term with objective to cover large market and creating brands .
www.bakerybazar.com
4. 4. Top 10 Business Opportunities For Bakery Products 4.Bakery Café & Retail Chain Retail
chain. This bakery business model is similar to any other food retail chains like
McDonalds ,star bucks , barista ,kfc etc. Entrepreneur has to build one central bakery from
where these retails chain would get their supplies or bakery products can be out -sourced
from other bakeries. www.bakerybazar.com
5. 5. Top 10 Business Opportunities For Bakery Products 5.Franchise Route Applicable for
investors and entrepreneurs who would like to join big names with jv or franchise
route ,hence risk for failure is minimized thus one can have franchise arrangement in bakery
retails such as bread talk, Hot Bread etc . Similarly manufacturers can have franchise
arrangement for big brands such as Britannia , Parle or ITC .The Principals pays fixed
amount of conversion charge per unit of product manufactured . www.bakerybazar.com
6. 6. Top 10 Business Opportunities For Bakery Products 6.Export/Import Export/ Import –
Trading This model is the simplest form of doing bakery business with either exporting
bakery products to different countries by buying from ones own country or Importing bakery
products from other country and distributing to ones own country. Disadvantage is that the
margins are limited and doesn‘t carry any brand equity. www.bakerybazar.com
7. 7. Top 10 Business Opportunities For Bakery Products 7.Private label Third party
manufacturing/private labels(outsourcing)It applies for firms with idle capacity to
produce ,companies with brand equity ,investors with finances. Many manufacturers are
ready to manufacture for third party .Advantage of this model is that one doesn't require
plant and machinery ,land and employees liabilities to do business. So if you have cash and
do not want to worry about overheads this is best option to do business. Many low cost
 producers are available in countries like China , India, Malaysia , Philippines , Gulf
countries .You can get product and packaging as per your demand .It is best options for
business entity which has already some brands established in the market.
www.bakerybazar.com
8. 8. Top 10 Business Opportunities For Bakery Products 8.Online Store With internet
exploding in the scene and being integral part of modern day living people are using it for
ordering products online in big way . The net savvy entrepreneur can launch website store
and can sell various bakery product. The basic advantage is that investment is low and
products are available 24x7x365 days .Bakery products with longer shelf life can be sold to
any part of the world . www.bakerybazar.com
9. 9. Top 10 Business Opportunities For Bakery Products 9.Pet Food • A very promising
business opportunity is available for bakery industry that is of special bakery products for
pet animals .These can be tailor-made for dogs ,cats and other animal .Even these bakery
products can be mixed with animal feeds. The popularity of dog biscuit is a good example
www.bakerybazar.com
10.10. Top 10 Business Opportunities For Bakery Products 10.Exotic /Artisan/Niche
/SpecialityBakeries With Bakery products popularity on rise consumers are now
experimenting with exotic products from different nationalities like french,italian ,
mexican ,swiss and popular varieties . Artisan bakery products from these countries have
gained popularity hence entrepreneurs can open bakeries catering specialty products .
www.bakerybazar.com

Bakery Business Plan – SWOT Analysis

Sample
Are you about writing a bakery business plan? If YES, here is a sample bakery business
plan SWOT analysis that exposes the strength, weakness, opportunities and threats of
starting a bakery.
1. Executive Summary
2. Market Analysis
3. SWOT Analysis
4. Financial Projection
5. Marketing Plan
6. Marketing ideas & Strategies
Because of our drive for excellence when it comes to running a bakery business, we were able to
engage some of the finest business consultants in Orlando Florida to look through our business
concept and together we were able to critically examine the prospect of the business and to access
ourselves to be sure we have what it takes to run a standard bakery company.

Bakery Business Plan SWOT – Economic Analysis

Starting a bakery business is indeed tricky due to the expertise and other things that must be put in
place hence critical economic analysis must be conducted to ensure that the risks and other threats
associated with starting a business from the scratch or investing in a business idea are mitigated.
If you are considering starting a bakery business in the United States, your concern should not be
restricted to just acquiring an office facility and equipping the facility or hiring the best hands in
the industry, you should also be concerned on how to attract customers to patronise your
products, after all you will not consume them yourself.
Averagely, setting up a bakery business is usually expensive, but when done on a small scale with a
lot of ideas induced into it, the business will pay off in the long run.

A Sample Bakery Business Plan SWOT Analysis

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and
also the threats that we are likely going to be exposed to in Florida and even in the United States of
America as a whole. Here is a preview of what we got from the critically conducted SWOT
Analysis for Top Taste Confectionaries™;
• Strength:

Our strength lies in the fact that we have a wide range of products that can meet the needs of a wide
range of customers. We have state of the art facility and equipment that has positioned us to meet
the demand of products even if the demand tripled over night or if we had a massive order to meet
and emergency delivery deadline.
Another factor that counts to our advantage is the background of our Chief Executive Offices;
she has a robust experience in the industry and also a pretty good academic qualification to match
the experience acquired which has placed her amongst the top flight bakers in the United States
of America. We are not ignoring the fact that offering consultancy services and running a
standard and accredited bakery institute is definitely going to count as a positive for us.
• Weakness:

The fact that we are setting up a bakery business in a city with other bakeries might likely pose a
challenge for us in breaking into the already saturated bakery business in Orlando, Florida. In
essence our chosen location might be our weakness. Nevertheless, we have plans to launch out with
a big bang. We know with that, we will be able to create a positive impression and we have a proper
handle when it comes to building on already gather momentum.
• Opportunities:

The opportunities available to us are unlimited. Loads of people consume breads, cakes and snacks
on a daily basis, and all what we are going to do to push our products to them is already perfected.
There are also loads of people who might want to learn how to bake; as a result, they can readily
find our government approved bakery institute highly ideal for them to fulfill that goal.
• Threat:

The threat that is likely going to confront us is the fact that we are competing with already
established bakeries in Orlando, Florida, and also there are other entrepreneurs who are likely going
to launch similar businesses within the same location we plan to launch out from. Of course, we for
see that they will compete with us in winning over the available market. Another threat that we may
likely be faced with is the area of government policies.

.
Organizational environment consists of both external and internal factors. The environment must be
from scanning and determine a development and prediction of the factors that can affect
organizational success. Environmental scanning means of possession and usury occasions,
information patterns, trends, and in a relationship of enterprise internal and external environmental
impact. It helps managers to decide the future path of organization, the company must confirm
threats and opportunities exist in the environment. When strategy formulation, organization should
take advantage of this opportunity and mitigate the threats. A threat to an institution may have the
opportunity to another.
Internal environment is analyzed the first step of scanning environment. The organization shall
abide by internal organizational environment. This includes staff and other employees, employee
interactions and management, the manager interaction and other coach interaction, management and
shareholders get natural resources, brand awareness, organization structure, key personnel and
operating space. Meanwhile, discussions, interview and investigation can be used to assess the
company’s internal environment. Analyzing internal environment help identify strengths and
weaknesses of an organization.
As business become more competitive and rapid changes in the external environment, information
from the external environment of the key factors to increase effective long-term plan. As
environment is dynamic, it becomes competitor move must identify and action. Organization also
updates core competitiveness and internal environment according to the external environmental
impact.
Environmental factors is infinite, therefore, the organization should be agile and accept and adjust
to changes in the environment. A business functions not in vacuum. It must take action and respond
to face external factories and offices happening. These factors of business happening outside called
external factors and influences. These will affect the business of the main internal functions and
possible business and strategic objectives.
Main factors that affect the most enterprises are the degree of competition is how to make fierce
competition in other industries and another enterprise. Other factors that can affect business are
society, the legal, economic, political, scientific, and technological ethics.
Scanning the internal and external environment is an important part of the strategic planning
process. The internal environment factors are usually divided into strength (S) and disadvantages
(W), that external company can be divided into opportunities (O) or a threat (T). Such an analysis of
strategic environment is considered a SWOT analysis.
The importance of SWOT analysis and provides information to match is very useful resource and
ability of the company competition environment, this operation. Similarly, it helps strategy
formulation and selection.
The SWOT analysis framework has been widely accepted, because it is simple and powerful
strategy development. However, like any planning tool, SWOT is only as good as the information
content. In-depth market research and accurate information system, important is to determine the
key problems of SWOT analysis of environment.
Today I am writing the report on a small and local enterprise is Lavender Confectionery &Bakery.
Today I also very honored to have access to the Lavender Confectionery & Bakery the executive
manager, namely Lavender Confectionery & Bakery owner’s son is Tam Yong Wen.

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Lavender Confectionery & Bakery is a small enterprise in Malaysia, he opened in Malaysia has 11
years of history. He also in our country have nine between branches, respectively is in Kuala
Lumpur and Johor. Lavender Confectionery & Bakery is a Bakery in Malaysia. It is currently
heated conversation and continue to have in the bread enthusiasts from abroad, earn profit is
Lavender bread. Lavender bread will be so much attention and viewed and discussed, encroach
buyers, this is because in every product, they are using eastern and western merger way. For
example, if the bread is from a western characteristics, but also gives Oriental element. Quality is
enterprise’s main process. Therefore, we invite experts to join our team Bakery, both from France,
Hong Kong and Taiwan, their strict for our check all bread and monitor all production process. So
our bakery will so successful.
In every company has internal analysis of advantages and disadvantages, such as I found the postal
service is provided to every home and business in the United States, every American has entered its
services and pay the same postage no matter where they live and work. A weakness I found is the
government’s control operations, they seem to be shut down more than other facilities, leaving a
blank items could be saved.
Every company also has external analyzing opportunities and threats. A chance I found that even
some reptiles, they have no pains so ships ever snake shipment. A snake industry is a booming
industry, more people are more likely to experience them if ship snakes, but they don’t like. This
threat I found, since don’t open on certain days, because other rival company, people can take their
business elsewhere.
Here are some of proposed my strengths problem with Yong Wen. Some in business is what makes
you in your competitors out of before. And his answer is for our product I have 100persen
confident, we adopt the most top and quality is made of the best materials to produce our each piece
of bread, also after professional teachers review will take place on market sale. Next is what are the
merits or benefit to bistro business care? Because I know the business bread better than bistro. He
answered our bistro although business as bread comes well, but also to have certain market.
Because we inside food is not each restaurant can be found, we adopt the Chinese way, also have a
spell of American English or Chinese food. And in dining customers also can choose bread came in,
so it can also enjoy the bistro upgrade our business.
Third, what are the major source of your company’s revenue and profit? Our company main source
of revenues and profits from bread and cake, because we got more than 200 to 300 bread species.
Some bread cost is high, so naturally we price will the price than general bakery come high, but as
long as you try, you will perceive where different. In cake that on the one hand, we also not in retail
stores, we also have received orders, such as wedding cake, bread and full moon cake.
For your company is strong brand or have some best-selling products? He is sure answer has, we
brand of moon cakes and cookies are in the best-selling. This is because in every moon cake festival
or lunar New Year we will use plenty of time to prepare our products, definitely not slovenly take
out the product sell. And we are halal, so customers can appeal to the Malay compatriots, Chinese
New Year festival gifts with our product is the best gift. The key is that we care about health, we use
our customers the oil is vegetable oil and sugar also uses sweeteners to let the customer with
diabetes can be safely edible.
Next is the problem about weakness. Your customers have complained and are about what? We will
meet different types of customers, some of them will complain products on this little short weight,
we’ll have patiently explain to them or apology, product and will change a for them. In at this point,
we’ll also ask reason, to master the improvement methods in research. But our products are
produced according to certain components come out, absolutely no cutting corners.

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Second, what product not and cannot meet your sales? These products and certain we cannot say we
products must be best for sales bad product we can further study and improve methods of master
research. If this product sales or bad, we’ll turn it into another kind of new products, also let
customers to try new products.
Third in what areas is the company cannot restore cost? Can’t restore cost is our development new
bread, because the customer cannot try, in the new products we cost is high, so our price is high also
cause could not recover cost in the near future.
For example we now have developing a new bread called ‘Black Diamond’, we are
using Japan’s chocolate, it made of soft tasty and wrestling like chocolate customers will like it. But
the high cost of this bread, our price is RM10, so we initially take back the cost.
Fourth, advertising for sales effective? Advertising for sales have certain help, it enables customers
to our new product with interest and will help us to ascend turnover. We will only when the season
advertise for propaganda, because in the season with before we will develop different new flavors to
our customers to try and give them a different feeling.
The next question is about opportunity. And emerging trends, accord with your company’s
strengths? This is of course, although now more and more the bakery bread species will increase
gradually, but our brand in the market have 10 years of history, so customers would still choose our
bread.
Second, what product or service area is you haven not care? For product, we have sufficient
preparation and using the best materials for our products, so there are no bigger problems
temporarily. About services, we hire employees we will each month, meetings and training to them,
let them know more about our company and products and know, so that they can kiss and every face
and answering customer’s problem.
Third, what is your face in the favorable environment? On our company under favorable
circumstances we face is the customer, if do not have a customer support, we wouldn’t have today.
So we will often developed new bread to feedback customers. Here, there will be a favorable
environment because our product also have certain level, so would get customers loved them.
Fourth, your company will enter new markets? Our company will enter new markets, at present we
now has three stores in KL, but may we will open in two more branches in KL, JOHOR six stores
will also establish a belong to our own factory in JOHOR. Our market will become more big will
increase our revenue and profit.
Fifth, your company has advanced technology? Yes, our company has advanced technology and
equipment, so we made the product has a certain standard level. Our equipment imported from
Japan, and each year we will inspection and maintenance to ensure that he product won’t have any
problems and change.
Finally is about the threat. Your opponent is more and more strong? Our opponents have a lot, we
cannot say they very strong or it’s fall, we can only say that every company have their advantage or
placement also have their own market. For our opponents, we will not therefore backwards or
retreat, we will be more efforts to develop new products to defeat your opponents.
Second, you have seen outside threats your company succeed? Based on my experience and
speculation, external about our company’s influence or threat and no great role and threatening. Our
company has a solid foundation of, so not every company can easily threats.
Third, in internal you have financial, development, or other issues? In the present situation, we see
not facing these problems, because our company financial aspects still pretty stable and
development to also very smoothly.
Fourth, what is your competition? Our competitors a moment in every day, the promotion of their
products to sell, but that the devaluation of our company’s not influence, and we are absolutely
won’t use the same method to make our products accordingly and depreciation.
About our company’s threats and weakness, our company can have the solving methods. We will
hold a meeting to discuss our placement and the insufficient place, if is about product problems, we
can and teacher discussion and study and find the improvement methods. If customer complaints
about the problem, we will review the problem and explained to customers. About competition, we
would work to make our products to be the best, do not let other brands have the opportunity to step
in.
Conclusion
Does a report strong influence on me, because this report let me touch I never had contacted
characters and I have never experienced feeling. I realize now run a company originally is not so
simple, it is need pay than the average people to get achievements. Yong Wen is a very young
entrepreneur, let I to he had to admire.
Lavender Confectionery & Bakery will have today are all have their efforts, they did not give up
any opportunity, difficulty not shrink back not retreat, stick with the best material in any products,
the purpose is to let their customers believe them.
Help visualize the SWOT matrix analysis. Similarly, when performing this analysis, the important
thing is to understand how these elements in working together. When an organization inside
advantages to match its external opportunities, it creates the core competitiveness in meet the needs
of its customers. In addition, an organization internal weaknesses performance should be converted
into advantages and external threat into opportunities.

PESTEL-PEST Analysis of BreadTalk | Free

PESTEL Analysis
adamkasi
8-10 minutes

The BreadTalk Company is a globalized company and is based in more than 16 countries such as
Hong Kong, China, South Korea and Singapore. The company is well known because of its
restaurant, bakery, and food atrium. BreadTalk Company was founded in 2000 and have achieved
various awards because of providing high-quality food items. The globalized company has a
network all over the world with at least 400 bakery outlets. The 6000 employees based company
has restaurants in Thailand as well as Singapore. More than 30 food atriums are based in Hong
Kong, Malaysia, and Singapore. The BreadTalk is well known as one of the most famous and the
most expensive food chains. The bakery business earns a substantial revenue and owns the financial
asset of worth $91100. The company growth is increasing day by day and stays as one of the
competitive industry.
The general environment of the company keeps on changing, and the analysis factors always
influence the industry. The elements of the company which helps in the growth of company must
need to stay competitive and. BreadTalk group gathers the necessary information and handles the
changes by implementing a strategy like environmental changes, demographics in China and
various other cultural values.

PESTEL Analysis
The famous company is expanding its business locally and in international markets. The three
product lines continue to grow worldwide, and the scope of the analysis depends on the recent
information. The PESTEL analysis helps to draw the influence and implications of various factors.
The analysis focuses on the BreadTalk Company based in China and will only discuss the topics
which will affect the audience present in China.

Political Analysis
The political factors involves all the legal factors such as labour, training, taxation and legislation.
All organization does involve competitve market value. Make sure to be more innovative about
services and products introduced. As China has one party system, so it has to maintain its domestic
stability as well as leadership.Its leader only governs the government of China. However, the
stability of Chinese Government still affected the BreadTalk Chinese market. When FTA was signed
back in 2014, China was able to develop or extend its relationship with Singapore due to which
BreadTalk faced significant benefits. The company got a way to reach its food atrium. We can say
that the stable and healthy political system paved the way for the enterprise. The bilateral trade
agreement between China and Singapore proved to be successful, and it was considered one of the
most favorable moves regarding the political perspective.

Economical Factors
Any industry will definitely get limitless benefit if the economy is in strength. Economic factors
does include inflation, gross domestic product and unemployment rates along with exchange rates
and business savings rates. In 2014, the Chinese Premier declared that China has to reach its GDP
rate.This will help to maintain the inflation rate, and the economic growth will expand in the
upcoming 2015 year. China was trying to make a move to mature their economy and worked best to
ensure the better quality. However, it resulted great and 10 million jobs were offered in the urban
areas. The real interest rate, stable exchange rate, and the currency exchange undoubtedly prove to
be a good chance fora businessperson to establish their business. BreadTalk has captured the
opportunity,and they saw a positive future because of the secure future with the minimum loss.
Breadtalk does enjoy demand for various bakery products. The fall and rise of commodity and
various raw material as well as fuel prices do increase the purchasing price for BreadTalk.
Social Factors
Social factors does involve all cultural changes along with social cultural within country. This will
influence the consumer spending pattern. Social cultural factors does involve tastes, beliefs, values,
attitudes, traditions, lifestyles and diversity.China is the largest populated countries. It has a
population of 1.35 billion. The ppopulation of China is increasing more in urbanareas, and the
demand for goods is also increasing. The consumer consumption rate is also increasing with the
productsdemand. According to the bakeries report in China, the eating habits has also been changed
from the last 10 years. The tight and busy working schedule especially among the urban people has
increased the demand in goo to eat bakery items. The bakery items can be salty or sweet but
preferably the traditional Chinese food. The demandfor baked food hasincreased from 3.7 billion to
7.8 billion. The change in the consumer behavior has provided BreadTalkan excellent opportunity to
enter Chinese Market.

Technology Factors
The technological factors takes place after major changes which impacts competitive environment
which is technological. The factors does include innovation, new communication technologies and
applications of knowledge. The technological factors largely depend on the social sites and the
Global Village. The advancement of technology has improved the way of marketing as well
advertising. Millions of people use the internetworldwide, and China has one of the world’s largest
network because of themaximum population. Wi-Fi access is standard and now available in public
places as well. The BreadTalkCompany utilized the market condition and incorporated in the
marketing campaign. The communication strategy was improved and was able to reach out
maximum audience.
The infrastructures and the transportations in China is expanded. The huge strides and the train
manufacturing sector was able to develop the speed rail network. China has the largest and fastest
speed rail systems which arethe greatest advantage for BreadTalk. They will be able to supply the
products or will be able to operate chain from warehouses to different stores. BreadTalk uses many
new machinery and various processes which helps to improve communications used by BreadTalk.
This ensures the production and the labor cost allowing to process faster because of globalization
and impact of technological factors.

Environmental Factors
The environmental factors does involve various elements such as weather, climate changes and
natural disasters. Environmental regulations allow the company to meet personal grooming needs
and health issues which targets the consumers to be efficacious and safe. The responsible company
needs to ensure that products produced must be safe to use even in daily life. The idea of
environmentally friendly and to promote green environment is popular in China. The expo in China
which was held in 2010, has developed the environmental friendly exhibition. Many foreign
companies participated in it. The less emission and low carbon technology are essential. The
industrial growth is putting adverse impacts on the environment and increasing every type of
pollution. However, as a result, theuse of thick plastic bags was prohibited in China and BreadTalk
has also to stop the use of plastic bags. The paper bags were promoted for the use of bread and
various items. The paper bags can easily be recycled. It showed that banning plastic bags in Country
puts the impact on BreadTalk operational branch.

Legal Factors
The BreadTalkCompany entered the Chinese market and crossed the border to franchise their
product. The company is legal and follows all the regulations. The company operates more than 100
bakeries worldwide but more than 2 in China. However,BreadTalk has to provide evidence every
year which shows that rules are regularly obeyed which helps to maintain the right brand image and
helps in the expansion.  The company does face the replication issues out of the scope of China, but
PESTEL analysis protected the company. Legal factors will be related to industry and helps to
establish relation between cities. Legal factors are applied even outside the country or in between
cities because of trading possibilities.
The successful company can follow the strategy to market and expand its business. Theprocedures
must be carefully adopted because they will inevitably increase the sales profits and revenues.