HEALTHY BAKESHOP

By: Ms. Annelyn Juntoria-Deasis and Mrs. Rita A. Arguelles West Visayas State University Graduate School La Paz, Iloilo City, Philippines Master in Hospitality Management October 2011 VISION: To be the citys preferred bakeshop within 3 years. MISSION: To offer products that help valued customers lead healthier, happier lives, prompt and quality services that exceed guest expectations, keep employees happy, and with a reasonable rate of return to investors. OBJECTIVES: 1. To fortify bread with Vitamin A and iron and lessen the amount of saturated fats by 20% within a year. 2. To reduce customers waiting time by 5 minutes. 3. To increase employees salary by 25% after 3 years. 4. To increase profit to a minimum of Php 500, 000.00 in 2012. OBJECTIVES KEY RESULT AREAS 1. Healthy Foods 1.a Approved by Bureau of Food and Drugs 1.b Number of customers referred by doctors 2. Achieve Customers Satisfaction 2.a More Customers Served in a day 2.b Sales Volume Increased 2.c Customers Rating 2.d Number of Repeat Customers 3.a Decrease Staff Turnover Rate 4.a Return on Sales 4.b Return on Assets 4.c Sales Turnover

3. Achieve Staff Satisfaction 4. Increase Profitability

PERFORMANCE INDICATORS KEY RESULT AREAS Customers Rating Number of Customers Referred by doctors Number of Repeat Customers Return on Sales Return on Assets Increase in Sales More Customers Served Sales Volume Increase 25 15 18 20 18 38 36 32 32 39 42 43 45 48 51 10 25 30 2011 (%) 2012 (%) 2013 (%)

Observations, Trends and Patterns in the External Environment A. Macro Environment 1. Social Almost 30% of the population are children aging from 2 years to ten years of age and most often have micronutrient deficiency. The same percentage of the population from the retirees, they prefer low salt, low fats and high in nutrients food due to their illnesses such as diabetis, hypertension, high uric, and the like. Professionals aging from 21 to 60 years old, who are health and diet conscious, they prefer foods which have low fats but high in fiber and nutrients. 40% of the populations daily diet comprises of bread and bakery products. There is an observed trend of the population of nearby towns moving into the city for job opportunities. The growing awareness of the population about nutrition and the changing lifestyle preferring nutritious foods. 2. Political The Department of Health is requiring all food factories to fortify their products

Opportunity or Threat

There is an opportunity for entrepreneurs to open a bakery selling healthy bread. Children with micronutrient deficiency, retirees who prefer a healthy lifestyle and for dietconscious professionals who prefer low-fat foods are potential consumers of healthy bread.

The bakery has potential of being able to fill in the maximum 40% daily dietary requirement of the population. Increase in population will result to increase in market. Growing preference for nutrient-fortified foods means an opportunity for a healthy bakery to increase sales An opportunity for bakeries following the mandate of the DOH regarding food products to be

with vitamins and minerals and use polysaturated fats in baking instead of saturated fats. The city government pass an ordinance mandating elementary schools to implement a feeding program which will use nutri buns fortified with iron and vitamin A. 3. Economic Global recession greatly affect all businesses. The continuous rising of the oil cost have domino effect on all business sectors therefore causing a rise in the cost of flour which is the main ingredient of bakery products. Their exists other bakeries which had established their markets in the area for the past 20 years. Four of these are well-advertized and promoted: Angelina, JD, Tibiao and Sari sari Bread Store. These 4 bakeries likewise supply the large supermarkets in the area. 70% of the population in the area are employed and earning enough income that can sustain their basic needs 4. Ecological Waste segregation and proper waste disposal is strictly implemented by the government. And the latest is the Clean Air Act. A city ordinance requires waste products of business enterprises to be properly disposed without affecting the environment. The government is working towards a green environment. 5. Technological The use of modern utensils and equipment in processing, baking and packaging are utilized.

fortified with nutrients. The bakery can supply the citys daily needs for fortified nutri buns. It is a threat to the business since the increase in the prices of bakery products will result to the decrease in the buying power of consumers. Presence of strong competitors will mean smaller market share.

It is an opportunity for the business since the product is considered as a basic commodity of every family. It is an opportunity for the bakery located in an area not affected by flood and with sufficient supply of potable water. Waste segregation is strictly observed and followed. Because of the latest equipment in baking being used, the Clean Air Act is not violated. This is a threat in the bakery business because being in the city, we lack space for the proper disposal of the solid waste and just depended on the citys garbage collection. The bakery is preferred by consumers who are aware of the bad effects of using plastic bags instead they use environmental friendly paper bags. An opportunity due to less in labour cost as a result to the reduction of manpower because of the purchase of modern equipment. However huge investment required to procure these modern equipment will require additional capital outlay. The implementation of HACCP System as the best method for ensuring food safety will result to an increase in the number of buyers. Faster delivery and distribution of products to the customers.

The Hazard Analysis and Critical Control Point System is implemented.

There are a lot of available technology for easier marketing and distribution of bakery products.

B. Industry, Area and Sector Environment 1. Industry There had been a tremendous growth in the bakery industry for the past decade characterized by variations in bakery products as a result of continuous researches to be able to produce and introduce new food products in the market.

This may be a threat to small bakery enterprises which have small capital and could not afford to put up Product and Research and Development Department. But this may also be an opportunity for smaller bakery enterprises which may be able to offer specialty product in the neighbourhood which is different from the products sold in the bigger market. An opportunity for the existing business because an increase in population means an increase in sales of the business. More people patronize the product and an opportunity for the bakery to produce more to meet their demands.

2. Area A Real Estate Developer has planned to put up a subdivision in the nearby vicinity that will result to an increase in population. 3. Sector The health sector is aware of the Importance of prevention of illness. With the increase in prices of medicines, hospitalization expenses and professional fee of doctors, the health sector gives importance to the prevention of illness. Healthy bakery produces sufficient and available bread to meet the nutritional needs of the community. C. Market 1. The faster pace of life in the city requires faster and easier preparation of food. 2. Increase in the opportunity to work abroad likewise increased the number of OFW and therefore increase in the purchasing power of the population D. Micro Market 1. It was found out that customers prefer to buy family packs of bread rather than per piece. 2. It had been observed that older customers prefer low salt foods 3. The result of the survey conducted revealed that consumers prefer a food establishment that is accessible with wide parking area.

It is a threat to the existing bakery for other investors may engage in the same business and also adopt food fortification. Bread and bakery products are ready to eat without much preparation but can be a good substitute for staple food. Increase in peoples purchasing power will lead to likely increase in sales

The bakery can offer family packages of bakery products which may end up cheaper. The bakery offers two types of bakery products: Classic and Low salt products The entrepreneur can use the result of the survey as an opportunity for earning more profit in the bakery business. Using a location that is accessible with wide parking area can attract customers.