Table of contents
Introduction
Overview 3
Vision & Mission 4
SWOT Analysis 5-
Strength
Weakness
Introduction
BreadTalk Group Pte Ltd was founded as a bakery brand in Singapore and
opened it first outlet at Bugis Junction in July 2000. It was the listed on the
Singapore Exchange in 2003.BreadTalk Group was bought out it’s Thai joint
venture patners 50% stake. The Minor Food Group for $ 6.96 million on 20
February 2019.Then, BreadTalk Group are planned to buy Food Junction, a
food court operator similar to Food Republic (a Breadtalk brand), for $80
million on 2 September 2019. The Competition and the consumer commission
of Singapore allowed the acquisition that as the acquisition would not be
substantially reduces competition and also allow for Breadtalk to better
compete with others food operator on 15 October 2019.There have many
challenges, especially in the Chinese market. China is considered the big
market in the word. Other the United Stated it’s the most attractive market,
and many firms have consider investing in this country . The bakery got the
challenge from various players. The biggest challenge comes from small scale
trades in the lower ends for market. They make majority and hence the most
attractive market segment . However, presences of small scale trader who
manufacture doughnut and others confectionaries have a huge control for
market. Besides these small scales trades, the industry leaders who have
control of middle and high class segment in market. BreadTalk has
responsibility to fight this competition in order to be position to stay any longer
in market. In order to achieve this would be recommended the firm specializes
in number of niches within Chinese market. There are three main classes of
people in this country, include the rich ,the middle class and the
poor .Singapore, Breadtalk outlets are strategically located in the places with
the high human traffic such as the Resorts Word Sentosa and a global concept
store in VivoCity targeting customers with the high levels of disposable
income. Breadtalk is competitions include Polar Puffs , Duke Bakery ,Four
Leaves ,Yamazaki Bakery and Paris Baguette.
3
Vision
The vision statement for BreadTalk Continuous Innovation to Keep the Brand
Fresh is its strategic plan for the future, it defines what and where BreadTalk
Continuous Innovation to Keep the Brand Fresh Company wants to be in the
future.The vision statement for BreadTalk is a document identifying the
goals .BreadTalk is facilitate its strategic, managerial, as well as general
decision making processes.
-Encompassing Description
The vision statement of Breadtalk should be hosistic and brief in nature. That
means a comprehensive statement identifying the company core strengths,
which an enabeiit to achieve it’s futuristic goals.
Mission
The mission statement for Breadtalk is a public document that details the
values and strategic aims of Breadtalk. The mission statement also identifies
the purpose of organization existence, highlighting the services and the
products it offer. In addition, the mission statement also identifies the
organization’s operation goals for Breadtalk .
-Customer Satisfaction
The mission statement of Breadtalk focus on addressing issuus of customer
satisfaction. The mission statement of Breadtalk has identified the target
customer groups and identified their needs and demands.
-Realistic and clear
The mission statement for Breadtalk has used simple string ,and easily
understood words in the drafting of its mission statement. Clarity is important
that the mission statement is understood by all relevant stakeholders of
Breadtalk company.
4
SWOT Analysis
This has made it able increase competitive market. This firm also has financial
strength. As such, this firm is in position to an implement it’s projects ,
including those of research and extension. The firm also operate in various
countries outside the home market. That it has been an able to balance it’s
production when one section of the market is experiencing economic growth
while other has recession.
Strength
Brand call ability to obtain economies of scale ,robust human resource,study
R&D group to add an innovation to product offerings , and strong franchise
relationships.
-Market Leadership Position
Breadtalk has a strong market leadership position in the Food Processing
Industry. It has help the company to rapidly scale products successes.
-Strong Brand Recognition
Breadtalk product have a strong brand recognition in the Food Processing
Industry. This is an enable the company to charge the premium compare to its
competitors in Food Processing Industry.
-Economies of scale
Breadtalk capable of achieving economies of scale via producing doughs in the
large quantities at its centralized kitchen. Having an economy of scale in buying
uncooked material gives Breadtalk the bargaining strength over the providers.
5
Weakness
-Environmental degradation
Some of the plastic bags that this firms used in packing its products are cause
havoc to the environmental. It is an apparent that this firm is to develop
solution to this problem at Tanke (2000). Breadtalk company is need to replace
the plastic bags with better alternative.
-Steady needs to distinguish
Breadtalk is the leader with the bakery items market place, many competitors
will attempt to the imitate their product for the reason low Breadtalk’s market
place proportion. Moreover, Breadtalk should continuous additionally permit
to move quicker, possibly into the new market place segments and to the gain
extra strategic projects.
-Hard to enforce alternate fast across all store
Breadtalk can also face difficulties in the implementing needs an exchange
speedy. Plan inside the headquarters will take time to be complete implement
within the stores. Breadtalk may also come to be rigid in terms of an executing
strategic objectives.
6
Strategic implementation of Breadtalk
It is important to understand the market forces in order your company’s
strategies and tactics to be successful. This start with through an analysis of
external factors used PESTOL, SWOT or porter’s five force model as appropriate
for each situation base on what you need to do the next at this stage.
The internal capacity should match up closely against these same conditions.
They can make an inform decision about whether it make sense move forward
together hand-in-hand, if necessary but not until after carefully consider all
option open before them include competition from other companies who may
similar goals.
External
Currently, the Chinese economy and many other economies make up the
market of this firm include the home market in Singapore are experiencing
steady economic growth, make it have the favourable economic environment.
The socio -cultural environment of this company is diversify. Because this firm
operates in the global market. There are those countries that cherish equality
and women have an equal economic strength just as a man. In such countries,
the firms does not segment the markets on basis of sex bet age.
The People Republic of China is the one such country . In addition , other
coutries like the neighboring Soudi Avabia have some woman as the
subordinates to the men .It forces this firm to target the male members of the
society because their have biggest purchasing power.
The technological environment of this firm is a very dynamic. Technological
invention and innovation , especially in the field of communication have the
main challenger and the strength of this firm at the same time.While this firm is
left with nightmares of trying to guess what its competitors in the market when
going to come up with the everynight , it has ese this technology to emerge as
the leader in the market.
It’s recent introduction of transparent kitchen where customer can waych how
their food is the prepare found the other firms unawares .the dynamism of
technology in this sector has made this firm be seen as the most innovative,
Legally , the firm has not major challenges .the laws that govern trade in the
People Republic of China , Singapore and many other coutries in the region
have very favorable to this firm.
Posters Five Factors
1. Breadtalk has been able to implement Porters five forces. To
tackle the threat of new competition, the firm has been keen
on producing new products to rival those of new competitors .
It has been to introduce new products in the market to counter
any possible threat .
To manage the threat of substitute products ,Breadtalk has
developed different lines of products to satisfy dofferent
markets so that it may not be adversely afferted if one line is
invanded by substitute products . Such new line of products
included the new brands of cakes .
2. To increases its bargaining power the buyers ,it has continued
to produce high end products with quanlities that make it easy
for the customers to appreciate their high prices ,In so doing,
the firm has been keen to ensure that lower end of the markets
is not assumed. To increase their bargaining power with
suppliers , it has created a scenario where it is a single buyer
with various sellers.
Political instability
A section of the society rebelled against the government ,this firm
would lose millions of dollars due to the destruction of its assert in
those countries.
Breadtalk Key assumptions
1. The Chinese market has a pure competition market structure
where firms have the freedom of entry and exit .
2. Although Breadtalk has the command of the market in most of
the cities in China there is a possibility that the firm can be
edged out if it falls to implement competitive strategies.
3. Breadtalk in china operates as an independent unit from the
parent firm in Singapore.
Breadtalk Key issues
1. The management should determine how to counter poor
perception that the market might have towards the brand.
2. Financial strength
3. E-commerce
Breadtalk the five competitive strategies
Low cost and differentiation.
Moved part of its production from Singapore to china in order to
cut the cost of production.
China unlike Singapore has a relatively cheaper labor that would
eventually translate to lower cost of production .This makes it easy
for this firm to sell its products at lower prices but still make
profits . Other than the cost strategy the other strategy that firm
has employed is the differentiation strategy . this firms has made
their products unique.
Its present products are differentiated from other conventional
products in the market , making it acquire a special niche within
the industry . the uniqueness in not only in the product and the
packaging design , but also in the way the product is prepared.
Timing tactic of this firm in launching new products has also been
superb.
Employ cooperation strategy
During its early years in china ,it formed a joint venture with a
number of small firms that were already established in this market
to produce competitive products in the market . this strategic
alliance saw it gain market share both in the home markets and
abroad.
Breadtalk implantation and control
The firm should properly budget for its profit the firm should set
aside at least 5 percent of its profits for market research. the
following gantt chart below shows the stage in which the firm
should follow in implementing the set activities.
Breadtalk references
1 strong partnership network
2enteringthe premium segment
3 Breadtalk’s franchise model
4 high tourist arrivals in Singapore
1. Low entry barriers into the food and beverage industry
2. Subject to inflationary pressures
3. Products are easily duplicated
Strategy suggestion
Training
Employee training to develop skills needed amd necessary for
goal attainment
Training can be in-house or out-house for employees
