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Avans University of Applied Sciences - International Business (and Management) - Year 3 Quarter 2 - IBO Project - Business Plan $11.50
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Avans University of Applied Sciences - International Business (and Management) - Year 3 Quarter 2 - IBO Project - Business Plan
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Grado
Project (IBO)
Institución
Avans Hogeschool (Avans)
In Year 3 Quarter 2 of the Bachelor International Business (and Management), a Business Plan for a specific company is required. This Business Plan is for an expansion of De Koekfabriek. By receiving a 7.5, this plan definitely will help you to gain enough inspiration to pass your project.
De Koekfabriek will open a bakery in the city-center of the capital of Sweden: Stockholm, and
entering the market with a franchise strategy. The business strategy that will be implied is divided
into two segments; the bakery and the healthcare organizations. For the bakery, a polycentric
approach will be used, meaning decision-making will be adjusted to the host country, which will
create more diversity in the company. The strategy is to spread the social mission of the company
as best as possible to customers, especially to consumer at the shopfront. De Koekfabriek should
collaborate with the Swedish SALAR organization, that is the best suitable organization for the
concept of De Koekfabriek.
The cookie market in Sweden contains a worth of €275 million, and an annual cookie consumption
of 41,7 million kilograms. It appears that on average approximately €27 per person of revenue is
generated in the market. This confectionary market includes three large players, namely Mondelez,
Cloetta and Fazer. This results in high competitiveness for De Koekfabriek; therefore, to
differentiate from competitors their social mission must be spread well. Regarding the cookies
offered of De Koekfabriek, The Hallongrotta recipe will be added to the product portfolio, in order to
integrate with the Swedish consumer demand. Furthermore, the cookies will be packed in
environmental paper bags per 200 grams of cookies for sales at the shopfront and per kilo for
online orders. The prices that are implied are multiplied with a margin of the prices in the
Netherlands, resulting in 60 SEK for 200 grams of cookies in the shop and 147,67 SEK per kilogram
on the website, an additional 30 SEK is priced for deliveries. De Koekfabriek will open a 50m2
shop, including bakery facility, in the city-center area of Stockholm, making the bakery is the
central place of operations of De Koekfabriek. For promotion of the shop, the website will be
translated in Swedish, social media account will be used and the franchisee will hand out small
cookie samples to corporate consumers. The main focus point is on operating B2B, where De
Koekfabriek aims to target to corporate customers. Whereas, the business-to-customer market
targets a group of males and females with an age between 25 and 54 years, since this is the
largest age group in Sweden.
Transportation will be executed by DHL, due to a collaboration with the company. The collaboration
includes transporting the required amount of raw materials from the supplier in the Netherlands to
the bakery in Stockholm weekly, and deliver orders from the shop to the customer. Twenty
Valerie Kuijpers
2128722 – PG06
IBO Project Business Expansion
Mr. Peters
12-12-2019
kilograms of Ingredients will arrive within 2 days at the bakery, for starting productions. The
company structure consists of five employees, with different roles and responsibilities. The team
subsists of a local location manager, a supervisor, a head baker, a shop employee and a second
baker. The employees are responsible for the sale of cookies at the bakery and uphold customer
satisfaction. The corporate culture of De Koekfabriek shall be adjusted to a more linear-active to
reactive culture, since this is occurring in Sweden. So, this host country reactive’s part of the
culture prioritize courtesy, respect, where they also listen calmly and quietly to others and react
carefully to the opponent’s proposals. To analyze the corporate culture in Sweden a 7s model has
been created. The most important aspect are the shared values of De Koekfabriek, like the mission
to create jobs for individuals with poor forecasts.
Projected revenue in the first year is based on the De Koekfabriek Wageningen bakery in The
Netherlands and the Swedish market size. The revenue is assumed to be 1.750.835,84 SEK with a
market share of 0,63%. Moreover, analyzing all costs that need to be incurred for start producing
are stated in a profit and loss statement. The statement has shown a loss for the shop in 2020 of
1.026.366,48 SEK, since costs are excessively high than projected revenue. For the greatest part,
costs include a budget needed for purchasing equipment for the first year only. Other costs include
rent, wages, insurance, care, transportation, administration, equipment, advertising and a royalty
fee. The sales forecasts and profit and loss statement for the second and third of operations, result
the bakery to make a profit. Finally, it is recommended for De Koekfabriek to expand to Sweden,
due to the potential of the market for profitability for the company. When operating in this country,
the firm must measure several key performance indicators for departments, like supply chain
management, marketing, sales, and human resources. The indicators aim for different purposes
and include customer lead times, inventory turnover, employee satisfaction, employee productivity,
costs versus revenue ratio, new customers acquired, and brand awareness.
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