Assalamulaikum my name is Syed Hassan Ali and these are my group members ….

And today we will be

presenting on the wooden bakery case.

Introduction

So The Wooden Bakery was started by Edward Bou Habib as a small and traditional Lebanese

bakery which had a limited production capacity. The bakery was named “Wooden Bakery” in

order to indicate that the bread was prepared in a traditional way which resembled how it was

baked in Lebanese villages in the old days. The bakery was situated on a main highway with a

heavy traffic flow and targeted as well as attracted people crossing this busy thoroughfare,

whether on their way to or back home from work. The company had the first automated pita

bread production line and it introduced a new and unique retail experience that matched or even

went beyond expectations of the Lebanese people. The bakery was best known for offering

freshly baked Lebanese and French breads as well as a wide variety of oriental and European

sweets.

SWOT Analysis

Strengths Weakness
 Large consumer base in Lebanon  Decrease in equity from year 2014 to
(4000 customers per day) 2015 ($283,610)
 Strong brand reputation  Only limited to the mount Lebanon
 Highly automated state of the art area
factory  Pita bread production is regulated by
 Strong unified leadership the government
 Successful franchising model
 Wide range of quality products
  Stores located in good locations
 Steady increase in net profits

Opportunities Threats
 Growing customer base (Syrian  Strong Competition
refugees/international market)  Governmental control
 Strong areas for growth (both in  Limited capacity to improve their core
Lebanon and abroad- franchising product Pita Bread
opportunities)  Growing operational costs due to
 Avenues for greater product diversity expansion
 Investment in new factories
(improving supply chain capabilities)

SO Strategies:

(were internal strengths which the bakery used to exploit external opportunities).

 Now, With their strong products and capabilities which include good leadership and

employee morale and quality measures, they can go into new markets and invest their

resources well.

 They can enter into US market by providing Lebanese products in US markets (Market

Development).

ST Strategies:

(were internal strengths used by the bakery to reduce impact of external threats)

 They can take over more franchises to ensure quality and increase their retail shops.

 Stay consistent with the government’s measures.

 Make a strong position in International Markets for example Chicago and get a first

mover advantage and build loyalty and originality.

WO Strategies:

(Improving internal weaknesses by exploiting external opportunities)

 Looking at the current condition, they can counter competition by being penetrative in the

markets or regions where their competitors hold a strong competitive advantage.

 Since they do not target international markets yet, like 2 of the competitors do, they can

use their profits and resources to enter into newer markets like Chicago.

WT strategies:

(Defensive tactics used to reduce internal weakness and avoid external threats)

 They should keep their quality in check.

 They should make sure to keep a check on their competitors and to continuously improve

and make strategies to counter their competitors.

PEST Analysis

Political

When it came to the Lebanese diet, Pita bread was considered essential and because of this

Wooden Bakery production was regulated by the government. From the number of loaves in a

pack to the weight and price of each pack were all fixed by the government. Intervention and

scrutiny increased when fluctuations took place in the market price of flour, which amounted

70% of the total production costs of bread.

Economical

As soon as Edward Bou Habib entered the bread- making industry, Lebanon was on the verge of
a civil war in the early 1970s. So, bread making industry was a safer investment during times of

political unrest and civil wars. He exploited this opportunity by looking at other perspectives of

war that can be beneficial in terms of creating demand, employment and profits for a business.

Secondly, Pita bread was an absolute need in the Lebanese diet. The average Lebanese family of

four to five members consumed a pack of bread per day regardless of residential area or income

level. Situated on a main highway with a heavy traffic flow, Wooden Bakery targeted and

attracted people crossing this busy thoroughfare, whether on their way to or back home from

work.

Social

Due to the fact that Wooden Bakery was located in Lebanon, eighteen different religious groups

coexisted. Each had a different system based on the proportional sectarian representation. The

heavy concentration of these different religious group and sect resulted in regional and territorial

strongholds for different bread making companies.

Technological

Wooden Bakery was the first bakery to enter a new era of bread making by taking the initiative

to reserve the first unit of automated pita bread production line equipment with the cooperation

of a Lebanese bakery equipment manufacturer called Saltek. This machine was customized that

matched the production of traditional Lebanese pita bread.