Executive Summary
The plan is to develop a network of micro bakeries called Green Buns in areas such as New Jersey, Texas, and California that specialize in baked products. The bakery goods market in the United States is valued at USD 99.47 billion in 2023 and is predicted to expand to USD 110.25 billion by 2028, at a compound yearly growth rate of 2.08% during the forecast period (2023-2028) (Jerome et al., 2019). Changing consumer preferences towards bakery items with high nutritional value and convenience during COVID-19 are propelling market expansion in the area.
Consumers in the United States were concerned about their health, immunity, and energy during the coronavirus outbreak, which increased demand for gluten-free baked goods that are followed not only by celiac patients but also by health-conscious consumers, low in carbohydrates, low in fat, and high in protein (Jerome et al., 2019). The majority of individuals acquire favorable health elements from food, according to the International Food Information Council’s (IFIC) 2021 Food and Health Survey, because of changes in consumption habits as well as increased understanding of concepts such as portion control, demand for convenience meals is expanding at a quicker rate.
Furthermore, calorie-deficit dietary habits are driving more firms to provide tiny packets of bakery items for on-the-go consumption. Consumers in the United States are more interested in flavor, health, and convenience, and they frequently prefer takeout bakery snacks to satisfy their hunger on busy days or to substitute meals on stressful days. Moreover, the United States has become a country of herbivores, with individuals seeking solutions that match their lives and exquisite tastes. According to the State of Snacking survey, 64% of consumers choose to snack as a regular eating behavior over traditional meal times. As a result, leading businesses are introducing a variety of on-the-go baking items to the market. This is why establishing micro bakeries is a profitable option.
Green Buns Company’s objective is to serve inhabitants with high-quality, healthful food. The bakery items created by this bakery company will be made using natural and organic ingredients. Launching goods with label claims such as no artificial ingredients, no preservatives, no GMOs, and decreased sugar content is becoming more common (Araújo et al., 2019). As a result, rising consumer demand for healthy meals and rising demand for clean-label goods have boosted market expansion in this area. Thus, changing dietary patterns and rising demand for on-the-go snacks among consumers in the United States as a result of the development of work and home life are driving the expansion of bakery items in the region. This report will help in taking a more specific look at the company’s strengths, weaknesses, threats, and opportunities, which will help in charting the growth path.
Green Buns: SWOT Analysis Report
About the Company
Green Buns is a network of mini bakeries whose purpose is to give nutritious snacks to all inhabitants. The company will be localized in states such as New Jersey, Texas, and California. A poor diet is one of the primary causes of death and the development of chronic illnesses across the world (Araújo et al., 2019). I picked this topic since the American populace is frequently impacted by diet-related ailments. Diabetes or prediabetes affects half of all individuals in the United States. Only 12% of Americans are metabolically healthy, defined as having normal levels of blood and blood pressure indicators as well as a healthy waist circumference (Araújo et al., 2019).
Diet-related disorders are no longer a concern for the future. They might expedite death in a pandemic by next week. For years, the topic of inadequate nutrition has been gaining traction in the United States. Experts have seen a rise in the average weight of US inhabitants in tandem with the growing death rate. This just exacerbates the issue and demonstrates that the bulk of the population consumes a bad diet. As a result, people are more likely to develop cardiovascular disease and diabetes.
Health-consciousness and pleasure are two concurrent trends that dominate the baked goods business in the United States. Due to the growth in busy lives and the need for quick and convenient meals, the demand for bakery items that can be easily grabbed on the move has surged in the United States. The market is rising because of the convenience provided in terms of time savings and minimal effort required for cooking. Furthermore, the expanding working population and improved consumer lifestyles have increased the consumption of ready-to-eat food goods such as nutritious breads, pizza rolls, chicken puffs, and muffins across the country.
The health orientation is being fulfilled with the introduction of goods with high-fiber whole grain components or other healthy additives. Baked foods have a very high tolerance, and American consumers want informal baked items as part of everyday life. SWOT analysis is used to assess changes in the external and internal environment. By applying the SWOT method, it is possible to establish lines of communication between the strengths and weaknesses inherent in the organization and external threats and opportunities. A SWOT analysis of Green Buns Company can assist in charting a course ahead and identifying challenges that can be handled to help the company succeed.
Internal Environment
Strengths
Green Buns offers a wide variety of one-of-a-kind items. Whole grain breads, whole grain sandwich rolls, gluten-free rolls and croissants, gluten-free desserts, and sugar-free sweets are examples of these. To suit the different requirements and interests of clients, a comprehensive range is essential. Offering a diverse selection enables customers to locate what they are seeking while also discovering new things they would not have considered otherwise. The firm also reaches out to a vast number of customers since individuals of all ages are eager to better their diets and lives in today’s environment.
Green Buns is also up to date on customer trends and preferences. Understanding customer behavior enables the company to identify the most important selection factors and position the product advantageously in comparison to rivals. Because of the great quality of the product, the firm is able to attract a significant number of customers and create a client base. High product quality demonstrates that maximum labor savings were achieved to meet a specific requirement by optimizing labor costs at the phases of product manufacturing and consumption. Additionally, competent corporate management is a focus, which increases overall performance and success. Management effectiveness is a key factor in the success of any organization or business. It combines a variety of skills, strategies, and techniques that enable managers and administrators to make good decisions, optimize the use of resources, achieve goals, and lead their teams.
Weaknesses
Green Buns’ shortcomings include a lack of its own working capital as well as financial resources. Production may be reduced as a result of a lack of funding. Because working capital contains both material and monetary resources, not only the process of material production but also the company’s financial health is dependent on its organization and efficiency of use. Green Buns’ second drawback might be a lack of marketing. Marketing allows a company to express its narrative, boost revenue, and differentiate itself from rivals. A company’s lack of marketing prevents it from taking advantage of these changes. To develop a marketing strategy, the company must first research the product or service, competitors, market demand, consumer demands, risks, and opportunities.
The firm’s usage of obsolete technology and equipment is a major disadvantage. Outdated machinery and technology severely slow down and diminish the efficiency of the manufacturing process. When employing obsolete equipment, it is required to spend more time and resources on activities, resulting in greater production costs and poorer business profitability. Furthermore, such technology needs more regular maintenance and repairs, which raises the company’s expenditures. Outdated technology also contributes to lagging behind rivals. Newer technologies enable the automation and optimization of manufacturing processes, increasing productivity and decreasing the risk of mistakes. Newer technologies also minimize energy usage and resource utilization, which has a good influence on the environment and reduces a company’s ecological imprint.
External Environment
Opportunities
The first opportunity for Green Buns is to expand the sales market. When demand expands, the company can start producing more of its products, which allows it to open new branches and hire more workers. The company also has the opportunity to obtain favorable loans for production, including equipment leasing. This will help to solve the problem of lack of working capital and direct it to the development of the company.
Another possibility is to expand the assortment, which means adding new types of goods and (or) services to the existing assortment, expanding the product portfolio. This will increase sales in this category, closing the needs of the target audience in diversified products, as well as better representation of goods in the product category (in the price list, on the shelf). The next opportunity is the provision of additional services by Green Buns. Additional services play a big role in expanding the audience of mini bakeries. This can include holding open master classes for the preparation of healthy baked goods. This will attract the audience and also create a competitive advantage in the bakery market.
Threats
The first threat is the increasing competition in the bakery and bakery products market. The weaknesses of the company can reduce competitiveness, and the inability to resist the pressure of competitors can seriously affect the success of the company and even lead to bankruptcy. Changing customer preferences and the disappearance of the healthy food trend is also a threat. Customers may no longer be interested in the products made by Green Buns.
Low demand due to weak marketing is another threat that may affect the development of Green Buns. Demand is the consumer’s request for a certain product to fulfill their needs and willingness to purchase it at a certain price. With a weak marketing strategy or no marketing strategy at all, the demand for the product decreases. This happens because people are not aware of the existence of the company, the products it provides, and its features.
References
Araújo, J., Cai, J., & Stevens, J. (2019). Prevalence of optimal metabolic health in American adults: national health and nutrition examination survey 2009–2016. Metabolic syndrome and related disorders, 17(1), 46-52. Web.
Bright, D. S., & Cortes, A. H. (2019). Principles of management. OpenStax. Houston, TX.
Jerome, R. E., Singh, S. K., & Dwivedi, M. (2019). Process analytical technology for bakery industry: A review. Journal of Food Process Engineering, 42(5), e13143. Web.