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wooden bakery.pptx

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wooden bakery.pptx

  1. 1. WOODEN BAKERY
  2. 2. PESTEL ANALYSIS
  3. 3. Political The political situation in Syria has presented the Lebanese bakery industry with great growth opportunities as there are millions of Syrian refugees coming in causing the demand of pita bread and baked goods in general to increase But now The political situation in Lebanon has negatively affected sales of bread Increasing production costs forced the increase of bread prices, and the decrease of sales in Lebanon
  4. 4. Economic the economic crisis in Lebanon along with the fluctuations of the value of the Lebanese Lira with respect to the dollar forced the prices to go up Moreover, due to COVID-19, most commodities prices fell worldwide, but production costs in Lebanon have increased drastically
  5. 5. Sociocultural/demographic Lebanese pita bread was and still is the chief staple of the world-famous Lebanese cuisine Pita bread is usually served as a complement to several main dishes It is also important to note that bread is broadly consumed across the country, regardless of where you live or or income level
  6. 6. technological Wooden Bakery open a new online shop that customers can order from their houses Wooden Bakery also opened a new website that the population of the country can go check the history and the franchise of the company The automated pita bread production-line equipment are made locally
  7. 7. Environment The factories that wooden bakery owns, and the large number of industrial devices such as ovens and baking equipment that are used , contribute to carbon emissions in the atmosphere. IN addition to, wooden bakery owns many vehicles that assure the transportation of the products
  8. 8. Legal Since pita bread is an absolute necessity in the Lebanese diet, its production was regulated by the government Regulations apply to the number of loaves in a pack, the weight, and the price of a pack Bare in mind that the regulations are relevant only to traditional white pita bread
  9. 9. porters 5 forces analysis
  10. 10. competitive rivalry among firms High in the bread industry , especially that bread prices are fixed and any small increase in one companies’ prices will make them lose a lot of customers and there are many competitors in the bakery-convenience industry that offer very similar products today
  11. 11. threats of new interns For wooden bakery threats of new entry are Low, because of high barriers to entry the industry is saturated with major competitors and new entries require a lot of resources, and production costs have become way higher than 2019 or any year before Besides, Wooden Bakery has a large distribution network that is hard to compete with, let alone build in the first place
  12. 12. bargaining power of suppliers Low bargaining power: Flour constitutes 70% of the production cost for wooden bakery but it is highly regulated by the government Due to wheat shortages in Lebanon after the explosion of Beirut , the size of wheat supply has decreased In this case, since wheat is a commodity, the supply of wheat is dependent on external factors (for example Covid-19
  13. 13. bargaining power of buyers Very high bargaining power: The switching cost is very low People are aware and able to buy easily from other bakeries at the same price that is set by the Lebanese government However, Wooden Bakery is a bit protected by the variety of products that extend beyond “Pita bread” to Manaish, kaak, and other Lebanese food
  14. 14. threats of substitutes High, since bread operating costs are increasing, and wheat prices are increasing as well, many Lebanese people are going after “Marquq bread” which is cheaper and can be produced in houses or smaller bakeries From the convenience store threat perspective, we can consider that supermarkets offer a wider variety of goods spanning a greater range of prices with potential loyalty cards and offers
  15. 15. SWOT analysis
  16. 16. strengths • Wooden Bakery offers high quality products, freshly baked bread • presence of around 50 bakeries in Lebanon have strengthened the position of Wooden Bakery in the industry. • Wooden Bakery focuses on hiring the most professional management to benefit from their expertise in adding more value and taking the firm to a new level
  17. 17. weakness • Increase in operating expenses, increase in production costs , and expensive bread packing technique
  18. 18. opportunities • After Wooden Bakery established factories and outlets in Qatar in 2017, many opportunities were presented in Chicago and Middle Eastern countries • There are areas were Wooden bakery has not franchise stores in yet, so they have the opportunity of Focusing on those areas
  19. 19. threats Unstable economic and security conditions in Lebanon High barriers to entry in some geographical areas where competitors are highly known dominant
  20. 20. VALUE CHAIN ANALYSIS
  21. 21. Inbound Logistics Wooden Bakery makes use of around 75 tons of flour per day, and engages in wholesale, where they sell their products to local grocery stores as well Wooden Bakery has around 600 employees in Lebanon
  22. 22. Operations • Wooden Bakery operates in over 50 outlets in Lebanon today, launches a franchise operation in Saudi Arabia, operates in Qatar and UAE, and plans to operate in Kuwait and Iraq in the future
  23. 23. outbound logistics The company has contracted agents in offshore countries and sites to manage product selling However, a majority of the products are sold directly to licensed sellers and shops locally as well as internationally
  24. 24. Marketing and Sales The target customers are all members of society, especially that all Lebanese families consume Pita Bread, and it is the main product that Wooden Bakery produces With its high-quality packaging, and marketing strategy, Wooden Bakery was able to access and impress every Lebanese home Moreover, Wooden Bakery engages in advertising (billboards etc
  25. 25. Services It invests in customer service in order to increase customer loyalty and foster long-term relationships with its customers. The company invests in gaining and incorporating customer feedback and in solving customer question effectively
  26. 26. Infrastructure • This covers many departments such as management, finance, and legal, among others, that are essential to keep the company's operations going smoothly.
  27. 27. Human resources Management • Wooden Bakery only recruits the best bakers, and provides exceptional training in order to produce high quality bread
  28. 28. Technology Factories utilize advanced machinery and equipment for the production of bread Company makes use of its equipment to produce bread for low prices
  29. 29. Procurement Maintaining supplier relations Assessing feasibility of products Checking for available ingredients To obtain high-quality raw materials, the company has engaged agents who operate for the company in many nations and areas.
  30. 30. Conclusion Due to the economic crisis in Lebanon, production costs for wooden bakery are increasing Besides, due to the limited supply of grain, exported grain is costing more Wooden Bakery must find alternative ways to supply its branches with the necessary raw material to keep business flowing Moreover, Wooden Bakery can turn its weaknesses into strength by finding a way to decrease production costs, without affecting the quality of its products, and without increasing the price of its output

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