Rahul Sharma

2K22/EMBA/17

My Bakery
 Agenda :-
 Selection of Market

 Factor affecting Market

1. Political
2. Economical
3. Cultural
4. Environmental
 Political Factors:-
Positive Factors
• Corruption  There are some countries like Denmark
has least corruption rate are easy to trade and taking
approval from authorities are highly easy and less time
taking.
• Tax Policies  Tax policy and duties of Switzerland has
shown remarkable support for Bakery Business, Due to
which it helps in operation cost management.
• Stable Govt  Stability in govt leads to many policies
and long term vision approach.
• Government regulations  Govt regulations are
essential to any industry, and the bakery industry is no
exception. The government establishes regulations and
laws to ensure that businesses operate safely, fairly, and
comply with the laws.
Negative Factors
• Government regulations  Govt Regulations that
ensure food safety, quality, and hygiene standards This
can help build trust and reputation among customers
and prevent legal issues or health risks.
• Government policies  Govt Policies that support
small and medium enterprises (SMEs), such as tax
incentives, subsidies, loans, or grants. This can help
reduce the cost of doing business and increase
profitability and competitiveness.
• Government initiatives  Govt Initiative that promote
local production, consumption, and export of bakery
products, such as campaigns, trade agreements, or
tariffs. This can help create demand and market
opportunities for the bakery industry.
 Economic Factors:-
Positive Factors
 Demand – For Example Japan people are mostly love
sweetner and bakery business could be great as they
have huge demand and same preference people
 Growing Economy  A growing economy can
create opportunities for the bakery industry to expand
operations and reach new customers
 Political Stability  When a country experiences
political stability, it provides a healthy environment for
businesses to operate and grow.
Negative Factors
 Inflation  Inflation can increase the cost of raw
materials, labor, and transportation, which can reduce the
profit margin and customer demand for bakery products.
 Economic growth  Economic growth can affect the
disposable income and purchasing power of consumers,
which can influence their preferences and spending habits
on bakery products.
 Interest rates  Interest rates can affect the borrowing
costs and investment decisions of bakery owners, which
can impact their cash flow and expansion plans.
 Exchange rates  Exchange rates can affect the
competitiveness and profitability of bakery products in the
domestic and international markets, especially if they rely
on imported ingredients or export their products.
 Social Factors:-
Positive Factors
 Social interaction: Building relationships with
customers and suppliers can increase loyalty and trust.
 Social participation: Engaging with the community
and supporting social causes can enhance the bakery’s
reputation and social responsibility.
 Social preferences: Adapting to the changing tastes
and demands of consumers can attract more
customers and increase sales.
Negative Factors
 Social competition  Facing new or existing rivals
in the market can reduce the bakery’s customer base
and profits.
 Social changes  Having to cope with the shifts in
consumer behavior and preferences due to trends,
health concerns, or environmental issues can
challenge the bakery’s operations and offerings.
 Social distancing  Implementing safety measures
to prevent the spread of COVID-19 can limit the
bakery’s capacity, productivity, and customer service.
 Cultural Factors:-
Positive Factors Negative Factors
 Cultural diversity  Adapting to the different tastes  Cultural conflicts  Having disagreements or
and preferences of customers from different cultures misunderstandings with customers or employees from
can increase the bakery’s market share and customer different cultures can damage the bakery’s reputation
satisfaction. and trust.

 Cultural heritage  Preserving and promoting the  Cultural shifts  Having to deal with the changes in
family traditions and recipes of the bakery can consumer preferences and expectations due to health,
enhance its reputation and uniqueness. ethical, or environmental reasons can challenge the
bakery’s offerings and profitability.

 Environmental awareness  Implementing

sustainable practices such as reducing waste, using  Cultural competition  Facing new or existing
renewable energy, and choosing eco-friendly rivals in the market that offer more innovative,
packaging can lower the bakery’s environmental diverse, or convenient products can reduce the
impact and attract more conscious customers. bakery’s customer base and sales.
 Environmental
Factors:-
Positive Factors
 Environmental benefits: Adopting green and
sustainable practices such as using renewable energy,
reducing waste, and sourcing local and organic
ingredients can lower the environmental impact of the
bakery and save money on utilities and costs.
 Environmental reputation: Promoting the
environmental values and initiatives of the bakery can
enhance its image and appeal to more eco-conscious
customers and retailers.
 Environmental opportunities: Exploring new ways
of using or donating the unsold or excess products of
the bakery can create new revenue streams or social
impacts.
Negative Factors
 Environmental regulations: Having to comply with
the environmental laws and standards that limit the
emissions, waste, and noise of the bakery can
increase the operational costs and complexity.
 Environmental impacts: Having to cope with the
effects of climate change, such as extreme weather,
droughts, floods, or pests, that can affect the
availability and quality of the raw materials and
ingredients of the bakery
 Environmental Awareness : Having to deal with
the increasing demand of consumers for more eco-
friendly products and practices, such as organic,
vegan, or gluten-free options, and biodegradable or
reusable packaging.