Laws and Ethics For Effectiveness In The Business World

Task 1

A) Nature of the World fame bakers

World fame bakers are thinking of starting the business of cake and some bakery items like biscuits and homemade chocolates. This business is established at unique street shop number 8 of London. All the legal formalities of the business are done already. The speciality of the business is to make cakes with low calories and no use of artificial colours. The health of the customers is taken priority. The packaging of the cake is biodegradable which helps in taking care of the environment as well. On special occasions, there are some offers like discounts of 10 %, 20%, 30%, coupons and many more. As this startup is new then a lot of promotion and marketing strategy is made to gain recognition of the business. At the present level, the firm is using penetration pricing and for this, it suffered a loss in the initial years but after some time startups became popular. Slowly prices can be increased. For the arrangement of finance bank loan is taken and usage of personal assets. A business plan is made for running the bakery smoothly.

B) Advantages and disadvantages of owning the business

For starting a business there is a lot of risks involved in it. many entrepreneurs think twice before starting a business. Some merits and demerits of the business are discussed below:

Merits

• Independence- as the owner of the business people have the freedom to make decisions on their own which is very important for the business. This individual is responsible for gaining the success of the businesses.
• Learning opportunities- as the owner of the businesses it is not necessary to know everything. individual gain knowledge by making decisions while working in the entity. owner of the world fame bakers is also learning the while doing the business. this helps in the overall development of the owner.

Demerits

• Financial risk - in the initial years of the business there can be risk involved in it. for expansion purpose also there is need for funds and if the firm is investing money in the business then it has no guarantee of success.
• Stress- for the business owner there are many things to worry about like competition, equipment breakdown, and employees. While doing many situations in which things are to worry about.

Task 2

Learning Outcomes

A. In what ways can Globalisation have an impact on your business? Discuss two examples.

B. What suitable technology would your business use and how would it improve the operations of the business?

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Your answer should go in the box below.

A) Impact of globalization on the bakery business

globalization has an impact on the bakery business:

• Increased competition- globalization caused increased foreign direct investment in the country which caused an increase in the contenders. it will cause a lot of price wars in operating the businesses.
• Greater awareness - after globalization, customers are very particular about their needs and wants which include quality, services and prices. Now customers are aware of their specific wants which must be fulfilled by the entity (Georgi and et.al., 2017).
• Location flexibility- most of the production techniques are there which can be allocated in the business. Location advantage is taken by the business like if there is an available lab at low costs and resources in that case entity will cost low for these purposes.

B) Use of suitable technology which will improve the operations of the business

Use of the technology always makes the work easier. In the bakery businesses use of technology is helping the entity to do work in a faster way. There are many systems which help in this :

• Consumer digital ordering systems- it is very necessary for businesses to make the easy way to purchase the product by online mode by the consumers. This system will help in making the digital order system which makes the customers buy anytime when they want to purchase. This facilitates ordering the customers, making it possible to upload digital images, and viewing the decoration ideas which will improve the experience and has the potential to increase the margin (Hollenbeck and et.al., 2018). It will help the entity that consumers can purchase it anytime after the closing of the bakery. It will aid in maximising sales and ultimately turnover of the business.
• Analytics and reporting- this technology will help in keeping a record of the sales. It will facilitate in tracking the order details, sales volume, product trends and timing. It will aid the company in determining the popular product and least popular products of the bakery. It also helps in deciding the inventory, marketing, promotions and staffing. This will help in improving the World Fame bakery.

Task 3

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Learning Outcomes

A. Briefly identify who your customer is likely to be. Why is it important for a business to understand its customers?

B. Describe TWO ways in which you might attract more customers to your business.

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Your answer should go in the box below.

A) Identification of the customers of the bakery and the importance of knowing them in the business

The bakery is targeting all age groups of persons. These items are liked by all the people. It consists of items like biscuits, cakes and other items which are liked by people. Customers are most important to the business. They are the ones who can build the business or fail it. knowing the customer on the basis of their hobbies, tastes and interests. This will help in gaining the profitability of the business (Lee and et.al.,2017). Knowing the customer will facilitate in determining the needs and wants of the entity. After having knowledge of their demands then only the owner will make strategies for fulfilling those demands. In the bakery business to know the customers is to keep observing them which will aid in knowing the buying behavior and according to that owner of the business will meet the demands of the client. It will increase the retention and loyalty of the customer which is beneficial for the firm.

B) Two ways through which more customers can be attracted towards the bakery business

there are many ways through which most the customers can be attracted towards the bakery business two of