PEST Analysis

A scan of the external macro-environment in which the firm operates can be expressed
in terms of the following factors:

 Political
 Economic
 Social
 Technological

The acronym PEST (or sometimes rearranged as "STEP") is used to describe a

framework for the analysis of these macroenvironmental factors. A PEST analysis fits
into an overall environmental scan as shown in the following diagram:

    Environmental Scan

          /   \

External Analysis     Internal Analysis    

/                       \  

Macroenvironment  Microenvironment     

|
     
  P.E.S.T. 

Political Factors

Political factors include government regulations and legal issues and define both formal
and informal rules under which the firm must operate. Some examples include:

 tax policy
 employment laws
 environmental regulations
 trade restrictions and tariffs
 political stability
Economic Factors

Economic factors affect the purchasing power of potential customers and the firm's cost
of capital. The following are examples of factors in the macroeconomy:

 economic growth
 interest rates
 exchange rates
 inflation rate

Social Factors

Social factors include the demographic and cultural aspects of the external
macroenvironment. These factors affect customer needs and the size of potential
markets. Some social factors include:

 health consciousness
 population growth rate
 age distribution
 career attitudes
 emphasis on safety

Technological Factors

Technological factors can lower barriers to entry, reduce minimum efficient production
levels, and influence outsourcing decisions. Some technological factors include:

 R&D activity
 automation
 technology incentives
 rate of technological change

External Opportunities and Threats

The PEST factors combined with external microenvironmental factors can be classified
as opportunities and threats in a SWOT analysis.

http://www.quickmba.com/strategy/pest/
Analyzing the environment - Five Forces Analysis
Five Forces Analysis helps the marketer to contrast a competitive environment. It has
similarities with other tools for environmental audit, such as PEST analysis, but tends to focus on
the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or
range of products. For example, Dell would analyse the market for Business Computers i.e. one
of its SBUs.

Five forces analsysis looks at five key areas namely the threat of entry, the power of buyers, the
power of suppliers, the threat of substitutes, and competitive rivalry.

The threat of entry.

 Economies of scale e.g. the benefits associated with bulk purchasing.
 The high or low cost of entry e.g. how much will it cost for the latest technology?
 Ease of access to distribution channels e.g. Do our competitors have the distribution
channels sewn up?
 Cost advantages not related to the size of the company e.g. personal contacts or
knowledge that larger companies do not own or learning curve effects.
 Will competitors retaliate?
  Government action e.g. will new laws be introduced that will weaken our competitive
position?
 How important is differentiation? e.g. The Champagne brand cannot be copied. This
desensitises the influence of the environment.

The power of buyers.

 This is high where there a few, large players in a market e.g. the large grocery chains.
 If there are a large number of undifferentiated, small suppliers e.g. small farming
businesses supplying the large grocery chains.
 The cost of switching between suppliers is low e.g. from one fleet supplier of trucks to
another.

The power of suppliers.

The power of suppliers tends to be a reversal of the power of buyers.

 Where the switching costs are high e.g. Switching from one software supplier to another.
 Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.
 There is a possibility of the supplier integrating forward e.g. Brewers buying bars.
 Customers are fragmented (not in clusters) so that they have little bargaining power e.g.
Gas/Petrol stations in remote places.

The threat of substitutes

 Where there is product-for-product substitution e.g. email for fax Where there is
substitution of need e.g. better toothpaste reduces the need for dentists.
 Where there is generic substitution (competing for the currency in your pocket) e.g.
Video suppliers compete with travel companies.
 We could always do without e.g. cigarettes.

Competitive Rivalry
 This is most likely to be high where entry is likely; there is the threat of substitute
products, and suppliers and buyers in the market attempt to control. This is why it is
always seen in the center of the diagram.

http://marketingteacher.com/lesson-store/lesson-five-forces.html
BUSINESS CYCLE

The economy tends to experience different trends. These can be categorised as the trade cycle and may
feature boom, slump, recession and recovery

BOOM: A period of fast economic growth. Output is high due to increased demand, unemployment is
low. Business confidence may be high leading to increased investment. Consumer confidence may lead
to extra spending.

SLUMP: A period when output slows down due to a reduction in demand. Confidence may begin to
suffer.

RECESSION: A period where economic growth slows down and the level of output may actually
decrease. Unemployment is likely to increase. Firms may lose confidence and reduce investment.
Individuals may save rather than spend.

RECOVERY: A period when the economy moves between recession and a boom.
WHAT HAPPENS IN A BOOM?

- Businesses produce more goods

- Businesses invest in more machinery

- Consumers spend more money. There is a FEELGOOD FACTOR

- Less money is spent by the Government on unemployment benefits

- More money is collected by the Government in income tax and VAT

- Prices tend to increase due to extra demand (page)

WHAT HAPPENS IN A RECESSION?

- Businesses cut back on production

- Some businesses may go bankrupt

- Consumers spend less money. Fall in FEELGOOD FACTOR

- Individuals may lose their jobs

- More money is spent by the Govt on unemployment benefits

- Less money is collected by the Govt in income tax and VAT

- Prices start to fall

http://tutor2u.net/economics/gcse/revision_notes/big_picture_business_cycle.htm

The Business Cycle

Economic growth is not a steady phenomenon; rather, it tends to exhibit a pattern as

follows:

1. an expansion of above-average growth

2. a peak
3. a contraction of below-average growth
4. a trough or low-point

The troughs then are followed by periods of expansion and the cycle generally repeats,
though not in a regular manner. These fluctuations in economic growth are known as
the business cycle and are depicted conceptually in the following diagram:

The Business Cycle

Indicators of the Business Cycle

Because the business cycle is related to aggregate economic activity, a popular

indicator of the business cycle in the U.S. is the Gross Domestic Product (GDP). The
financial media generally considers two consecutive quarters of negative GDP growth to
indicate a recession. Used as such, the GDP is a quick and simple indicator of
economic contractions.

However, the National Bureau of Economic Research (NBER) weighs GDP relatively
low as a primary business cycle indicator because GDP is subject to frequent revision
and it is reported only on a quarterly basis (the business cycle is tracked on a monthly
basis). The NBER relies primarily on indicators such as the following:

 employment
 personal income
 industrial production

Additionally, indicators such as manufacturing and trade sales are used as measures of
economic activity.

Notable Business Cycle Expansions and Contractions

According to the National Bureau of Economic Research, the longest U.S. economic
expansion on record began in March 1991 and lasted until March 2001, a duration of 10
years.

The longest economic contraction in the NBER databse was the 65 month contraction
from October 1873 until March 1879. By comparison, the contraction that began in 1929
and that initiated the Great Depression lasted 43 months from August 1929 until March
1933.

Business Cycle Intensity Over Time

Many economists believe that the business cycle has become less pronounced,
exhibiting briefer and shallower economic contractions. While there is economic data to
support a diminished business cycle, other economists argue that the data prior to 1929
was not very accurate and tended to overstate the magnitude of the economic swings.

Whether the business cycle has become less intense has practical importance because
after World War II the U.S. government initiated policies with the intent to minimize the
severity of economic contractions, so a decrease in the intensity of the contractions
would support the arguments of those who advocate such policies. Whether the
business cycle really has declined in severity is a question that remains open to debate.

http://www.quickmba.com/econ/macro/business-cycle/
Business Life Cycle

Your business is changing. With the passage of time, your company will go through various
stages of the business life cycle. Learn what upcoming focuses, challenges and financing sources
you will need to succeed.

A business goes through stages of development similar to the cycle of life for the human race.
Parenting strategies that work for your toddler can not be applied to your teenager. The same
goes for your small business. It will be faced with a different cycle throughout its life. What you
focus on today will change and require different approaches to be successful.

The 7 Stages of the Business Life Cycle

Click on the stages for more information.

Seed
The seed stage of your business life cycle is when your business is just a thought or an idea. This
is the very conception or birth of a new business.

 Challenge: Most seed stage companies will have to overcome the challenge of market
acceptance and pursue one niche opportunity. Do not spread money and time resources too
thin.
 Focus: At this stage of the business the focus is on matching the business opportunity with your
skills, experience and passions. Other focal points include: deciding on a business ownership
structure, finding professional advisors, and business planning.
  Money Sources: Early in the business life cycle with no proven market or customers the
business will rely on cash from owners, friends and family. Other potential sources include
suppliers, customers, government grants and banks.
 WNB products to consider: Classic Checking Account / Business Savings Account / SBA
Resources / Minnesota SBDC / Minnesota Community Capital Fund

Back to top

Start-Up
Your business is born and now exists legally. Products or services are in production and you
have your first customers.

 Challenge: If your business is in the start-up life cycle stage, it is likely you have overestimated
money needs and the time to market. The main challenge is not to burn through what little cash
you have. You need to learn what profitable needs your clients have and do a reality check to
see if your business is on the right track.
 Focus: Start-ups require establishing a customer base and market presence along with tracking
and conserving cash flow.
 Money Sources: Owner, friends, family, suppliers, customers, grants, and banks.
 WNB products to consider: Seed Stage Products / Working Capital Loan / Line of Credit /
Equipment Financing / Business Internet Banking / Bill Payer / Credit Card Processing

Back to top

Growth
Your business has made it through the toddler years and is now a child. Revenues and customers
are increasing with many new opportunities and issues. Profits are strong, but competition is
surfacing.

 Challenge: The biggest challenge growth companies face is dealing with the constant range of
issues bidding for more time and money. Effective management is required and a possible new
business plan. Learn how to train and delegate to conquer this stage of development.
 Focus: Growth life cycle businesses are focused on running the business in a more formal
fashion to deal with the increased sales and customers. Better accounting and management
systems will have to be set-up. New employees will have to be hired to deal with the influx of
business.
 Money Sources: Banks, profits, partnerships, grants and leasing options.
 WNB products to consider: Line of Credit / Equipment Financing / Construction Loan /
Commercial Real Estate Loan / Health Savings Account / Remote Deposit / Cash Management /
Business Credit Card

Back to top
Established
Your business has now matured into a thriving company with a place in the market and loyal
customers. Sales growth is not explosive but manageable. Business life has become more
routine.

 Challenge: It is far too easy to rest on your laurels during this life stage. You have worked hard
and have earned a rest but the marketplace is relentless and competitive. Stay focused on the
bigger picture. Issues like the economy, competitors or changing customer tastes can quickly
end all you have work for.
 Focus: An established life cycle company will be focused on improvement and productivity. To
compete in an established market, you will require better business practices along with
automation and outsourcing to improve productivity.
 Money Sources: Profits, banks, investors and government.
 WNB products to consider: Premium Checking Account / Business Money Fund Account /
Sweep Account / Private Financial / 401K Planning / Investment Brokerage / Health Savings
Account / Remote Deposit / Cash Management / Business Credit Card / Line of Credit

Back to top

Expansion
This life cycle is characterized by a new period of growth into new markets and distribution
channels. This stage is often the choice of the business owner to gain a larger market share and
find new revenue and profit channels.

 Challenge: Moving into new markets requires the planning and research of a seed or start-up
stage business. Focus should be on businesses that complement your existing experience and
capabilities. Moving into unrelated businesses can be disastrous.
 Focus: Add new products or services to existing markets or expand existing business into new
markets and customer types.
 Money Sources: Joint ventures, banks, licensing, new investors and partners.
 WNB products to consider: Acquisition Financing / Private Financial / Line of Credit / Equipment
Financing / Construction Loan / Commercial Real Estate Loan / Investment Brokerage

Back to top

Mature
Year over year sales and profits tend to be stable, however competition remains fierce.
Eventually sales start to fall off and a decision is needed whether to expand or exit the company.

 Challenge: Businesses in the mature stage of the life cycle will be challenged with dropping
sales, profits, and negative cash flow. The biggest issue is how long the business can support a
 negative cash flow. Ask is it time to move back to the expansion stage or move on to the final
life cycle stage...exit.
 Focus: Search for new opportunities and business ventures. Cutting costs and finding ways to
sustain cash flow are vital for the mature stage.
 Money Sources: Suppliers, customers, owners, and banks.
 WNB products to consider: Private Financial / 401K Planning / Employee Stock Ownership Plans
(ESOP) / Investment Brokerage / Health Savings Account / Remote Deposit / Cash
Management / Line of Credit

Back to top

Exit
This is the big opportunity for your business to cash out on all the effort and years of hard work.
Or it can mean shutting down the business.

 Challenge: Selling a business requires your realistic valuation. It may have been years of hard
work to build the company, but what is its real value in the current market place. If you decide
to close your business, the challenge is to deal with the financial and psychological aspects of a
business loss.
 Focus: Get a proper valuation on your company. Look at your business operations, management
and competitive barriers to make the company worth more to the buyer. Set-up legal buy-sell
agreements along with a business transition plan.
 Money Sources: Find a business valuation partner. Consult with your accountant and financial
advisors for the best tax strategy to sell or close-out down business.
 WNB products to consider: Acquisition Financing / Employee Stock Ownership Plans (ESOP) /
Investment Brokerage / Trust

http://www.winonanationalbank.com/BusinessBanking/BusinessLifeCycle.aspx

Start Your Own Cake Decorating

or Cupcake Business
Get Paid to Decorate Cakes at Home
or Open Your Own Cake or Cupcake Shop
Imagine having a rewarding, high-paying job that lets you use your creativity to decorate fun or elegant
cakes and cupcakes. Welcome to the world of cake decorating!
As a cake decorator, you may be paid to create the centerpieces of some of the most memorable
occasions of people's lives. Cake decorators design, bake and decorate creations that are almost as
much fun to look at as they are to eat. 

There are few jobs that offer so many benefits. When you become a cake decorator (also known as a
cake designer) you will have the satisfaction of making your vision a reality.

If you start your own cake decorating business or cupcake business you will enjoy the freedom of being
your own boss. You could earn $50,000 or more per year from home, or even more if you open your own
cake or cupcake shop.

And perhaps most importantly your cake decorating "work" will be fun, interesting, and personally
rewarding.

As a professional cake or cupcake decorator you could design and decorate all types of cakes and
cupcakes, or you might choose to specialize in decorating the type of cake you enjoy the most, such as:

 Gourmet cupcakes
 Baby shower cakes
 Wedding cakes
 Picture or character cakes
 Children's birthday cakes
 Anniversary cakes
 Cupcake bouquets
 Whimsical or topsy-turvy cakes
 And more

Cake decorators may also choose to specialize in a style or theme of cake decorating, such as
gumpaste flowers, marzipan figurines, royal icing, fondant cut-outs, or intricately piped buttercream
lacework or roses, just to name a few.
As long as you have the desire, you can become a cake decorator. No special education or experience is
necessary to become a cake decorator. You can start a cake decorating, cake design, or cupcake
business and become a cake decorator immediately. 

If you would like to become a cake decorator and be paid to decorate cakes or cupcakes, the FabJob
Guide to Become a Cake Decorator is for you! In this e-book you will discover how you can get started
and succeed in the exciting business of cake decorating.

The author of this guide is Jennifer James, a leading writer and editor of career guides. In the cake
decorator guide she shares insider tips and expert advice from cake decorating business experts to
help you achieve success with your own cake decorating business. 

The guide covers topics of vital importance to anyone who wants to become a cake decorator, including:

How to Decorate Cakes and Cupcakes

 How to select the right style of cake or cupcakes for an occasion

 What special elements to consider when creating cakes or cupcakes for weddings (and ways to
boost your profitability with "little extras")
 How to prepare flat-topped, crumb-free, ready-to-decorate cupcakes and cakes
 How to assemble, support and transport a tiered or stacked cake
 How to put together a professional cake decorator's kit
 A list of cupcake-specific tools and supplies you'll need (as well as ones experts say to avoid)
 How to create and decorate cake boards and presentation boards
 How to use fondant and gumpaste for elegant-looking cakes (it's easier than you think!)

 How to get great results when piping buttercream designs on your cakes and cupcakes
 Advice about using fresh flowers on cakes
 How to use new cake design techniques such as airbrushing and edible ink photo transfers
 Four fantastic cupcake decoration ideas 
 Step-by-step instructions for two Wilton cake and cupcake projects to try out your new skills

How to Start a Cake Decorating or Cupcake Business

 Where to start once you've decided to go into the cake decorating and cupcake business
  How to choose a cake decorating specialty (and what the hottest trend is right now)
 How to start a cake decorating or cupcake business as inexpensively as possible
 An overview of options for your cake decorating or cupcake business: 
o Starting a cake decorating or cupcake business from your own home
o Buying an existing cake or cupcake business (including how to find cake or cupcake
shops and franchises for sale) 
o Opening a new cake or cupcake shop
 How to create a business plan for your cake or cupcake business (includes a sample business
plan for a retail cake shop)
 Choosing a name for your cake decorating or cupcake business
 Where to get start-up financing for your cake decorating or cupcake business (includes sample
start-up budgets)
 Computer software that can help you with your cake or cupcake inventory
 Choosing a retail location, plus information about permits, leases and design of your cake or
cupcake shop
 What you should know about getting licensed to sell food products from home
 How to find and rent a commercial kitchen to bake cakes and cupcakes
 Equipment and supplies you need to start a cake decorating or cupcake business and where to
get what you need 

How to Market and Sell Cakes and Cupcakes

 How to set your per-serving or per-cupcake prices for profit

 Developing a marketing plan for your cake decorating or cupcake business
 Creating marketing tools for your cake decorating or cupcake business to sell your cakes or
cupcakes including:
o Brochures for your cake decorating or cupcake business
o Sample cake designs
o A cake decorating or cupcake portfolio
o Your website for your cake decorating or cupcake business
 Identifying potential clients for your cake decorating or cupcake business
 How to market your cake decorating or cupcake business effectively including:
o Where and how to advertise your cake decorating or cupcake business
o How to get free publicity for your cake design or cupcake business
o How to develop strategic partnerships and get referrals from other businesses when
you start a cake decorating or cupcake business
 Marketing through wedding expos and wedding directories
 Accepting payments from customers
 How to take and fill orders from your clients

PLUS, you will discover:

 How to develop the skills you will need as a cake decorator 

 Dozens of handy tips for great cake and cupcake baking from the experts
 How to safely transport clients' cakes and cupcakes
 Step-by-step information on how to run a retail cake or cupcake shop including:
o How to plan your grand opening
 o How to find and hire great cake or cupcake shop employees
o Increasing sales, including how to get repeat business
 Helpful checklists and samples of what you need to start your cake decorating or cupcake
business, including: 
o Checklist of pantry supplies 
o Checklist of baker's equipment
o Checklist of cake decorating supplies
o Sample client questionnaire
o Sample contract/order form
o Sample business plan for a cake shop
o Checklist for finding the perfect location
o Sample cake shop floor plan
o Sample lease agreement
o Shop operations checklist
o Sample start-up budgets
o Sample daily sales report
o Sample press release
 Links to free serving and pricing charts
 And more! (including free updates)

You can have all this and more for an incredible price. It can cost hundreds of dollars to take courses on
starting a business, and chances are they will not include specific information about starting a cake
decorating or cupcake business. The FabJob Guide to Become a Cake Decorator contains some of the
best business advice you could get from other sources, and more.

The information in this cake decorating guide can save you many hours of research, help you avoid some
costly mistakes, and give you information you need to become a cake decorator and start your own cake
decorating or cupcake business.

http://www.fabjob.com/cakedecorator.asp

We look forward to serving you!

For all your needs in equipment
contact us at 615-441-3370

 New and Used Bakery and Restaurant Equipment

Don't forget we have Space Racks

Front load and Side load
Call Patrick or Vicki for
Special Price this month

Esperamos poder servirle!

Para todas sus necesidades en equipos
contacto con nosotros en 615-441-3370
 Nuevos y Usados Equipo de panadería, restaurante

BAKEMARKETING equipos nuevos y usados panadería. Para el español no se habla español. Tenemos un traductor
para mensajes de correo electrónico. Si usted no habla Inglés y la necesidad de enviarnos un correo electrónico en
español que puede responder a que en español también. Envíanos un email a [email protected] usted nos
necesita usar nuestro traductor. Gracias

If you don't see something you are in need of on our website

please contact us.
We carry a very large stock of NEW and USED Equipment
As well and New Equipment

 
Baxter Proofer

Click on the Read More for more information

Read more...
 
NEW ARRIVALS

       New Arrivals

       Check out our New Arrivals
       TG-25 Belshaw Used Thermoglazers
       18 Available
        New and Used Soup Bars
       4 Settings and 2 Settings
With Temp Controls For each Soup Container
       VERY NICE
Nuevas adquisiciones
       Echa un vistazo a nuestra Novedades
       TG-25 Belshaw usado Thermoglazers
       18 Disponible

       Nuevos y Usados Sopa Bares

       4 Configuración y Configuración 2
Con controles de temperatura para cada contenedor Sopa
       MUY AGRADABLE
 
New Soup Bars

New Soup Bars

5 Available
4 Used Available

New Soup Bar Made from Ameridiser

5' x 5' x 56"
Hexagon Soup Bar 51 15/16" Flat To Flat
60" Point to Point
Adjustable Heat Settings for Each of the 4 Soups
Contains Soup Containers with Spoons (Stainless Steel)

 Nueva Sopa Bares

5 disponible
4 de ocasión disponibles

Sopa de Nueva barra de Hecho de Ameridiser

5 'x 5' x 56 "
Hexágono bar Sopa 51 15/16 "piso en piso
60 "Punto a Punto
Configuración ajustable de calor para cada una de las 4 Sopas
Sopa Contiene contenedores con cucharas (Acero Inoxidable)
Read more...
 
Bakery Reach In Self Serve Cases

Just became available

Used Reach in Self Serve Bakery Show Cases
We have several available
Aprox. Size Width 33"
Lenght 30 1/2"
Height 66"
On Casters
Lights under each shelf
Front bag holders
These will be a great addition to your
Self Serve ShowCases
Non Refrigerated
We have 60 available

Sólo se dispuso de
Se utiliza el sistema REACH en los asuntos de autoservicio panadería Mostrar
 Tenemos varios disponibles
Duración aprox. Tamaño Ancho 33 "
Longitud 30 1 / 2 "
Altura 66 "
Sobre ruedas
Luces en cada plataforma
Frente soportes de bolsas de
Estos serán una gran adición a su
Autoservicio vitrinas
No refrigerados
Disponemos de 60
We also have Used Spartan Reach in Self Serve Cases
Case Measures 42" wide 30" Deep 76" High
The picture below is of the Spartan Reach in Cases
También hemos usado espartana Reach en Auto casos sirven
Medidas Caso 42 "de ancho 30" Profundo 76 "de alta
La imagen de abajo es del alcance de Esparta en los asuntos
 Ask for Jerry or Patrick for information on these great deals!
 
Middleby Marshall Pizza Oven
 Middleby Marshall Twin Pizza Oven
Model Pacesetter
Tag # 0000870 and 0000871
Two Available
USED but in great condition
click on the read more for more information
Read more...
 
Revent Double Rack Oven

            Revent Double Rack Oven (Gas)

Model # 624G DG
Revent rack overs are convection ovens with rotating racks.
Revent Horno Parrilla doble (gas)
Modelo # 624G DG
prórrogas Revent rack son hornos de convección con bastidores de rotación

Pans, Pans, Pans

Pans, Pans, Pans
B.A.K.E. Marketing's warehouse is loaded
with pans of nearly every shape and size. If
you are in need of pans for your baking
operation, give us a call!

Read more...
 
Belshaw Double Rack Oven
B.A.K.E. Marketing is excited to announce the
New Belshaw Double Rack Oven!  Belshaw,
the leader in bakery equipment manufacturing
is now offering rack ovens!  The Belshaw
Double Rack Oven can be ordered in either gas
or electric and is sure to make an excellent
addition to your bakery!  Click below to read
more...

Read more...
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