2. 1
Business plan
The Simit Shop
Presented to:
EAE Business School
Presented by:
Pamela Gutiérrez
Rafael González
Ahmet Eren Kongu
Daniela Uribe
2014

3. 2
Dedicated to our families, who have supported us in all the choices we have made
throughout our lives.
To our professors at EAE Business School, who have guided us throughout the entirety of
this project and also helped us understand things from different perspectives.
And to everyone who collaborated in the creation of this business plan.

4. 3
INDEX
1. INTRODUCTION
1.1 Summary
1.2 Objective
2. SITUATIONAL ANALYSIS
2.1 What is a Simit Shop?
2.2 Why a Turkish bakery?
2.3 Materials
2.4 Location
2.5 Labor force
2.6 Information sources
2.7 Promotion:
2.8 External Analysis
2.9 SWOT Analysis
3. MARKETING PLAN
3.1 Target Market and Segmentation
3.2 Differentiation and Positioning
3.2.1 Image of Bakery Industry
3.2.2 Important Feature
3.3 Competitive Strategy
3.4 Resource Allocation Strategies
3.4.1 Product Life Cycle (PCL)
3.4.2 The GE-McKinsey Nine Box Matrix
3.4.3 Loyalty-based Strategies
3.5 Growth Strategies
3.5.1 Keeping Competitive Position
3.5.2 Ansoff Matrix
3.5.3 Integrative Growth
3.6 Marketing Policies
3.6.1 Prices
3.6.1.1 Place and Distribution
3.6.2 Place and Distribution

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4. OPERATION AND PROCESS
4.1 Location
4.2 Neighborhood Analysis
4.3 Distribution of Plant
4.4 Detailed Plan of Distribution
4.5 Operation and Processes
4.6 Management of Raw Materials
4.7 Simit Preparation
4.8 Packaging and Chargign
4.9 Suppliers
4.10 Processes
4.11 Organization and Structure
4.11.1 Mission, Vision and Values
4.12 Organization Chart and Human Resources
4.13 Schedule
4.14 Description of the Work Position
4.15 Gantt and Time Charts
4.16 Training and Development
4.17 Motivation and Employees
4.18 Dismissal Polices
5. LEGAL
5.1 Social Object
5.2 Business Model
6. FINANCIAL-ECONOMIC PLAN
Preface
6.1 Three Years of Balance Sheet
6.1.1 Assets
6.1.2 Liabilities and Equity
6.2 Result Forecast- Three Years

6. 5

7. 6
CHAPTER 1: Introduction
1. Summary
2. Objectives

8. 7
1. Summary
The following business plan explains to detail the entire operations of a newly opened
Turkish Bakery setup in Madrid, Spain. The bakery focuses on offering the most traditional
Turkish flavors, but specializes on one of their most popular product, the Simit. A simit is a
circular type of bread made with wheat flour, typically encrusted with sesame seeds, which
is baked to a golden brown color.
The concept of our Simit Shop is very exciting, as we wish to combine the exotic flavors of
a Turkish bakery with the exquisite tastes of Spain. Our shop design will be a combination
of a traditional and modern style, which will house the warm colors of Turkey. Our
transparent counters will allow our customers to see at all times the available selection of
ingredients for the customization of their simits, which will grant our customers the
certainty of freshness of our products.
Our product menu will offer the traditional simit, and a wide variety of articles to customize
it. Our product range will cover both salty and sweet options, such as hams, cheese,
chocolate, etc. These products can be accompanied with hot or cold beverages if desired.
Product freshness is one of the key success factors of our Simit Shop; and for that reason,
our products will be baked daily, with more than one daily batch.
Our business plan begins by describing a situational analysis, in which we explain the
characteristics of our Simit Shop and why we have opted to introduce these Turkish bakery
products into the market. We also developed a detailed PESTLE Analysis, labor force
analysis, information sources, promotion strategies, an internal and external analysis, and a
SWOT analysis, which combined, allow us to have a clear picture of our possibilities and
constraints.
The following segment of our business plan is dedicated to our Marketing Strategy. In this
section, we establish our competitive strategy, and, due to the fact that our Simit Shop will
offer a new and exciting option in the bakery market, our options revolve around this
premise. We provide a detailed analysis of the key marketing elements of our business, map
out our directions, objectives and activities for the business, customers, and employees. The
development of the Four P´s draws on the broader perspectives outlined in the business
plan.
The next segment analyzed is the Operations and Processes strategies, where we evaluate
the importance of location, which directly affects the competitive capacity of the company.
In this section we elaborate on a handful of key factors, such as the plan of distribution,
management of raw materials, our suppliers, organization and structure, mission and vision,
schedule and time charts, human resources plans, etc.

9. 8
In our Legal chapter, we establish what type of society best suits our needs, and all the
necessary elements that need to be taken into account when creating the business. We
provide an insight on why we chose to enter the bakery business with our Turkish
alternatives and why we selected Madrid and Spain as a first location, over other business
opportunities in other cities around the world.
The last chapter of our business plan is dedicated to our Financial and Economic plan,
where we make detailed projections regarding our variable and fixed costs, our assets,
liabilities and equity, and a detailed three year sales projection on three scenarios.
We finish our business plan with a set of conclusions about each segment, and highlight the
most important points of our business plan.
2. Objectives
The general objective for a business plan is to describe every action required to start a new
company, analyze the technical and economic viability of the project, and provide correct
processes that meet the needs of future company.
Prime objective: Analyze the market and competitors
In this objective, we analyze and recognize the market in which the company is going to be
located, both national and provincial level, studying key factors, such as political factors,
economic factors, social factors, and technological factors; furthermore, we analyze the
direct and indirect competition for the sector.
 Analysis of the macro environment: To locate the company in a macro environment
level, we analyzed the most important political and economic factors of the country
where the company is going to be located; in our case, Spain. We also considered
all the legal aspects that could affect the opening and operation of the company.
 Analysis of the microenvironment: In this step, we analyze which are the strengths
and weaknesses that the new company will have, as well as understand the value
chain of the industry in which the company will operate.
 Analysis of the competition: It is required to know which are the strengths and
weaknesses of our competitor, in order to improve their conditions or not fail in the
same situations. This analysis will help us differentiate ourselves from the
beginning of operations.

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Secondary objective: Detail and comply with the operations and processes that develop
the business on a day to day basis.
In this object, we develop our operations and activities that the company has to carry out to
serve their clients, and the relationship between ourselves and our customers and suppliers.
 Location of the business: The location of the business is one of the most important
factors of success of the company, and for this reason, we have to analyze each
alternative in order to choose the better options.
 Distribution within the business: In this point, we have to discover which is the best
distribution within the store, in order to make our customers and employees feel
comfortable.
 Relationship with suppliers: The relationship with our suppliers is key to
determining our financial possibilities.
Third objective: Analyze and choose the best legal structure to operate the company.
 Detail the legal and tax forms: We have to choose the best legal structure for the
company, according with the dimension of the project.
 Establish the Mission, Vision and Values for the company.
 Organization chart and Human Resources: Describe the job positions, including the
responsibilities and skills required for each position.
Fourth objective: Commercial plan. Decide which market segment is the most appropriate
for our company.
 Meet the potential market and segmentation: According to our potential market, we
have to define and segment the market in which the company will operate and focus
most of its commercial activities.
 Develop an action plan: Describe the actions that we are going to implement in order to
improve sales, obtain new clients and create brand awareness.
Fifth objective: Develop an Economic and Financial plan
The economic and financial plan has to give a prevision of the expected results and
conclusions about the profitability of the project.
 Make a balance sheet: the prediction has to be for 3 years and in three different
scenarios (Pessimistic, Moderate, and Optimistic).

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 Ratios: A ratio analysis offers an easy to understand financial information.
 Make an investment analysis: With the NPV and IRR we analyze the viability and
the investment attraction

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CHAPTER 2: Situational
Analysis
2.1 – What is a Simit Shop?
2.2 – Why a Turkish bakery?
2.3 – Equipment
2.4 – Location
2.5 – Labor force
2.6 – Information sources
2.7 – Promotion
2.8 – External Analysis
2.9 – SWOT Analysis

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2.1 – What is The Simit Shop?
Nutrition is a major issue in every country and in every community, and due to that you can
find different forms and ways in which food is presented to customers. In Spain, you can
find different options due to both local and international culinary traditions, mainly because
of the increasing number of foreign communities established in the country. We have
realized that Turkish cuisine is not as established as it could be, and, in addition, numerous
people know at least something about several Turkish dishes.
In Spain, there is huge potential for specialized bakeries because both Spaniards and non-
nationals tend to consume bread for breakfast and in meager and quick meals and snacks.
We want to offer them a new space where they can enjoy and taste the different flavors of
our variety of Turkish bakery products. The Simit Shop is basically, a Turkish bakery that
combines the most traditional tastes of Turkey, with the most emblematic hams and cheeses
of Spain.
2.2 – Why a Turkish bakery?
The Turkish culinary culture in Spain is getting more and more acceptance, therefore we
want to use the first-mover advantage and offer Turkish bakery products. We have the
successful references of Turkish companies Istanbul Doner Kebap, which brought turkish
kebap to Spain in 1999 (http://www.istanbuldonerkebap.es/empresa01.asp) and Simit
Sarayi, which turned local crisis into advantage in 2001 and has growth internationally
from a small local shop from Turkey (http://www.simitsarayi.com/en_US/hikayemiz/).
These examples prove that Spanish culture is open to try and consume different types of
cuisine. First mover advantage would give us a huge share of the market, and considering
the current economic crisis, it is a huge opportunity to start the business.

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2.3 – Equipment
Equipment of the business would be an oven. Some of the options are as follows:
The oven will be selected after making a detailed price-productivity analysis. Another
option to be considered is a high-tech machine used to reduce time and increase efficiency-
productivity1
.
Additional equipment and machinery required are: freezers, dough resting counters, dough
knead machines, dough cutting machines, cake-patty machines (optional), counters, and
tables and chairs (optional). The machinery and equipment is accessible in Spain, but if we
were to find difficulties finding the correct ones, we can import them tax free from
neighboring countries (Germany, France, etc.).
1
http://www.youtube.com/watch?v=dEu-t6JXhWM

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2.4 – Location
We will open our first shops in Madrid, and, depending on our growth, we can expand into
other cities within the Spanish national territory. Portugal and Morocco are also potential
markets to consider in the future.
Location is a key business success factor since it directly affects the competitiveness of the
company. A business concept can have tremendous success or failure depending on where
you are, and in many cases, location is one of the key variables in a commercial company.
For the first shop, these are the following factors we will be considering:
- Pedestrian transit volume.
- Proximity to professional and educational centers.
- Proximity to public transportation stops and stations and ATM machines.
2.5 – Labor force
To start, we require six employees. One baker, two assistants, two cashier/supervisors, and
one manager.
2.6 – Information sources
Turkish Embassy´s commercial counselor, the National Statistics Institute (INE), access to
the information of a similar company that did this in Germany and Holland, internet
statistics, e-commerce, government reports, student thesis found online, and access to
cultural Turkish icon in Spain.
2.7 – Promotion
Renting space for promoting our shops via banners in the already established and well
distributed around the city “Istanbul Doner Kebap shops” is a viable idea. Social Media
(Facebook, Twitter, Instagram), mouth to mouth promotion, and other forms of direct
marketing (guerrilla marketing – via flyers) are also feasible and effective.

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2.8 – External Analysis
The External Analysis will be presented with the traditional PESTLE Analysis, which
includes Political, Economic, Social, Technological, Legal, and Environmental factors, at
national terms.
1. Political
a. Spanish citizens consider the political environment in Spain as somewhat
unstable, but this opinion has become a trend since the economic crisis
struck Spain in early 2008.
b. Continuous changes in taxes add to the uncertainty and instability of the
Spanish market. In the last few years, many important laws and decrees have
been modified, including the definition and taxes of and for SME´s.
2. Economic
a. Even though the Spanish GDP has reported a decline in 2013, up to 71,000
new companies have been created. In the last trimester of 2013, a 0.1%
increase was reported.
b. The European Commission predicts an increase in GDP of 0.5% in 2014,
and another 1.7% increase in 2015, which brings hope to investors and
entrepreneurs.2
c. A study reports that the creation of new SME´s has grown 7% with regards
of 2012.3
d. Furthermore, there are many government programs that promote the creation
of SME´s, offering financial support and formation and training courses.4
e. The Consumer Price Index reported a slight increase in November 2013, and
the trend is expected to continue for 2014.5
2
http://news.xinhuanet.com/english/business/2013-11/06/c_132862056.htm
3
http://www.lne.es/economia/2013/10/10/creacion-empresas-crece-7-septiembre/1481795.html
4
http://www.madrid.org/cs/Satellite?c=Page&cid=1120203321276&pagename=Emprendedores%2FEMPR_C
omun%2FDivulgacion%2FEMPR_QuienesSommosTemplate
5
http://countryeconomy.com/countries-cpi/spain

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3. Social
a. Spain is the second largest market worldwide on bread and bakery, with a
volume exceeding €5.7 billion in 2013 (according to the Food consumption
report in Spain 2013, by the Ministry of Agriculture, Nutrition and
Environment of Spain).
b. The Spanish culinary menu includes a wide variety of different breads and
other bakery products for breakfast, lunch, and dinner. Also, mid-day snacks
include fruits, baking products, and other light snacks.
4. Technological
a. The process and production of baking goods has evolved throughout history.
b. Automation has become present in most industries related to food
processing.
c. Electrical ovens are also being used to substitute classic wood and gas
ovens.
d. The ability to produce frozen bakery products changed the baking industry,
allowing local shops and supermarkets to acquire them and bake them
whenever they considered it necessary, allowing them to offer freshly baked
products.
5. Legal
a. The specific legislation for the elaboration of baking products in Spain is the
“Real Decreto 496/2010, de 30 de Abril”, in which the quality standard
norms for baking products, confectionery, and pastries is approved. 6
i. According to this decree, the standard sanitary norms of food safety
of the European Union are applicable to the country. It also includes
the regulations regarding additives, labeling and publicity.
b. Other decrees or laws that require deeper investigation include:
i. Taxing
ii. Accounting
6
http://www.boe.es/boe/dias/2010/05/14/pdfs/BOE-A-2010-7714.pdf

18. 17
iii. Hygiene
iv. Labor and Compensation
v. Syndicates, etc.
6. Environmental
a. The environmental factors we consider are those that concern the laws that
regulate environmental pollution (if existent in our production process), or
regulation regarding waste.
2.9 – SWOT Analysis
Strengths
- Innovative product
- Inexpensive to produce.
- Variety and freshness.
- Reasonably low price of sale.
- Culinary culture.
Weaknesses
- New type of product.
- Unhealthy image of baking
products.
- Cultural barriers.
Opportunities
- First mover advantage.
- Customization.
- Local and International growth.
- Unemployment (low labor cost)
- Franchisee project.
- Economic incentives for new
businesses.
Threats
- Substitutes (sandwiches, croissants,
napolitanas, hojaldres, etc.)
- New competitors.
- Lack of customer loyalty in Spain.
- Foreign market (laws, paperwork’s,
etc.)
Strengths
Turkish “bagels” haven’t been introduced into the Spanish culture. Turkish Kebab example
provides us with an idea of “how much” the Spanish and international communities living
in Spain like kebabs; we can expect a similar reaction from this new product.
The production costs of our products is not expensive. Flour, molasses, and sesame seeds
are the main ingredients of our products.
The company will offer different types of fresh products on a daily basis, as they are going
to be produced and prepared daily. It will also offer a different shape to customers.

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The selling price of the Simit will be reasonably acceptable for our potential customers.
Due to low production costs, even with a lower selling price than substitute products, our
margin will be very satisfactory.
The culinary culture of the Spanish and international communities living in Spain is another
positive point to achieve our target. Simits should be seen as close to a “tapa”. If
categorizing it into a snack, there exists the opportunity marketing it as a “quick snack”
option, or, if opting for a customized version (according to our menu items), a more
complete snack.
Opportunities
First mover advantage is one of the key reasons to be optimistic about the business. As our
business proposal fits into the culinary culture of the territory, the largest part of the market
will be obtained by our business, as there is no available competitor.
The customization of our products will help us on the introduction stage. Customers can
choose to add some supplements inside of the simit, all according to their likes (and the
availability of ingredients). This will also give the company and extra opportunity to earn
more money, as these customized products will, evidently, be more expensive.
Examples of Customization of Simit
Related to first-mover advantage, this sector has the potential to grow in a short period of
time. Aided by the ideal location of Madrid, it is only logical to expand, at first, within the
city limits. Once the Madrid area is covered, other cities and countries will be considered as
an option for expansion.

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The high unemployment rate will help us in various ways. First, because of the reduced
household income, people tend to spend less money on food consumption (without
reducing consumption itself). Price is preferred rather than quality. In accordance to the
National Statistics Institute (INE), annual average net income per household in Spain stood
at €23,123 in 2012, a decrease of 3.5% compared the previous year. Meanwhile, the
average per capita income reached €9,098, 2.4% lower than the previous year.
The average income of Spanish households has fallen by 9.5% during the crisis, which
translates to about €2,400 less per year between 2008 and 2012, as shown in the following
table.
Source: National Statistics Institute
Source: National Statistics Institute ( INE )

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Furthermore, finding employees who are willing to work for a low or even minimum wage
is possible. With 26% of unemployment rate, Spain has the second highest unemployment
rate in Europe after Greece. Moreover, more than half of the unemployed population has
been looking for a job for more than one year. These figures will help us find appropriate
individuals to hire for a lower cost and wage.
The expansion plan we consider is that of franchising, which will allow us to grow faster
and reduce our risk.
Increased economic incentives due to the economic crisis is the another opportunity to
assist us in the creation of the business.
Weaknesses
Given that we offer a new product, a considerable amount of time will be required for the
introduction stage. Our marketing costs will be greater in comparison to any other similar
products at the introduction stage.
Health concerns related to pastry and baking products is another weak point for our
business. We have to fight against that to eliminate these ideas. We might also use these
negative ideas regarding baking products in our favor, offering the entire nutritional value
of our products.
Threats
Even though it is an original product, it can be substituted by another types of meals and
snacks, such as sandwiches, croissants, napolitanas, etc. It will be hard to keep customers
loyal to our products.
Because of the low costs, other companies might appear in the sector, given the market
potential.

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CHAPTER 3: Marketing
Plan
3.1 – Target Market and Segmentation
3.2 – Differentiation and Positioning
3.2.1 – Image of Bakery Industry
3.2.2 – Important Features
3.3 – Competitive Strategy
3.4 – Resource Allocation Strategies
3.4.1 – Product Life Cycle (PLC)
3.4.2. – The GE-McKinsey Nine Box Matrix
3.4.3 – Loyalty-based Strategies
3.5 – Growth Strategies
3.5.1 – Keeping Competitive Position
3.5.2 – Ansoff Matrix
3.5.3 – Integrative Growth
3.6 – Marketing Policies
3.6.1 – Prices
3.6.1.1 – Place and Distribution

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3.1 – Target Market and Segmentation
Our company is going to offer a new and exciting nutritional option in the bakery market,
with a different and original product. We aim to introduce the Turkish bakery concept into
the Spanish and international society of Spain for the first time, which consumes high
volumes of baking products7
(with a rising demand, in spite of crisis).8
Regarding both
Spanish and international communities in Spain, we also have to take into account the huge
immigrant population and tourist groups (national and international) in the country, who are
more willing and open to taste different cuisines and flavors.
7
http://www.eae.es/news/2013/10/21/espana-es-el-segundo-mercado-mundial-de-pan-y-bolleria-con-un-
volumen-de-4.662-millones-de-euros-en-2012
8
http://www.clubdarwin.net/seccion/negocios/sector-de-panaderia-y-pasteleria-industrial-en-espana-
crece-un-16

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Given that our starting operating point is in Madrid, the immigrant population is also
considered a key target.
In addition, Spain is the second most preferred tourist location in Europe after France, with
60.601073 yearly visitors. The following table shows that the Madrid region is the 3rd
most
visited location of the Spain.
When focusing on baking products consumers, we face a very wide market, which
complicates us in the creation of a target group. Nevertheless, market segmentation is
necessary. Segmentation is the process of differentiating the total market for a
product/service or homogeneous groups of people and organizations together as different as
possible from others. (Miquel, and Bigné Molla, 1994).In other words of Kotler and
Armstrong (2002), who define a market segment as "a group of consumers who respond in
similar ways to determined marketing efforts."
Segmenting the market of “baking product consumers” is, therefore, the first step to
defining the target markets of Simit Shop, where we will center most of our commercial
efforts. This does not mean, in any case, that the rest of the segments of the market will be
abandoned or ignored, as we will also have an offer for them.

25. 24
The key criteria factors that we will use to segment the market will be geographical,
demographic and psychographic.
Geographical
The shop will not be located exactly in the center of Madrid (around Puerta del Sol), but,
ideally, in its surrounding neighborhoods and streets. We will avoid Puerta del Sol, so as to
escape the high financial requirements of rent. On the other hand, we consider that being
close to the city center allows us to be close to our potential clients, such as students,
professionals, residents of the area, tourists and any person passing through the city center´s
streets. If the location of the shop meets these requirements (amongst others), the location
will allow us to have higher sales.
Demographic
 Gender: No gender discrimination.
 Age: Our age target is only limited to infants (due to physical reasons). Children,
teenagers, young adults, senior citizens, etc. are included in our target age.
 Social Stratum: The concept of the Simit Shop addresses mainly to medium and
medium-high class, with medium and medium-high purchasing power. Our
combination of a good price, nutritious products, and unique concept will help us in
reaching our target group.
Other demographic variables, such as religion, marital status, height, weight, etc. are
irrelevant to our business and will not be used when segmenting the market.
Psychographic
According to the Ministry of Agriculture, Nutrition and Environment of Spain, bread and
other baking product consumers value variety. For this reason, we understand that the
novelty and unique taste of our product (simit), will add the much desired value. We will
also offer our customers a chance to customize their orders, which we understand will add
more value to our product and our brand.
The freshness of our products, combined with the healthy image of our type of bakery, will
allow us to break apart from the paradigm that “all bakery products are unhealthy”. We can
also offer our products in a gluten free recipe, for our celiac customers.
We are never going to present stale or poor quality products to our customers, as we
consider that our brand image can be strongly damaged by the opinion of the public.

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Both men and women in the province of Madrid, who are within our age group and belong
to medium and medium-high social economic class, open to taste new and unique flavors,
appreciate quality and variety, are
3.2 – Differentiation and Positioning
As our product is new and unique in the Spanish market, we have to position ourselves
according to the bakery market. We are going to give major importance to following
attributes:
- Freshness
- Quality
- Schedule
- Information
- Natural Ingredients
- Closeness
- Sincerity
- Cleaning
The most difficult task we have to complete is to change the “unhealthy” image of bakery
products in the country. We plan on offering natural high quality products in a clean and
relaxing environment. In addition, the freshness of our products is another important factor
for our Simit Shop. We are going to produce our simits on daily basis, offering them
directly from the oven to our customers; we want to fix our schedule with respect to the
demand of our clients.
3.2.1 – Image of Bakery Industry
Even though the ingredients of baking products (eggs, flour, milk…) could make the
resulting products a basic article in anyone´s diet, the additives, preservatives, sugars, and
fats that the industry adds to the products, in order to produce in mass and extend their
expiration date, makes these products obtain an “unhealthy” image.
As you can see on the following nutritional pyramid, baking products are situated at the top
the pyramid. Consuming these articles is recommended “sparingly” or “occasionally”.
Anyhow, all the ingredients that together make the baking products are set at the base.

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According to the Institute of Nutrition and Eating Disorders of the Autonomous
Community of Madrid (Instituto de Nutricion y Trastornos Alimentarios de la Comunidad
de Madrid), people choose not to consume baking products for the following reasons:
In an effort to change this negative image, the fabricants of baking products are reducing
the quantity of salt, saturated fats, sugars and calories present in their products, while also
incorporating healthy ingredients, such as fiber, vitamins, and other components.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
Motives to the non consumption of
Baking Products

28. 27
To address this issue, Simit Shop will offer products the highest quality ingredients,
offering the best quality homemade and frozen dough (one that has the less amount of
artificial additives). This will be one of Simit Shop´s most important and firm
commitments, which will be demanded from our suppliers.
The dough will be flavored in the shop with natural ingredients, including the sesame seeds
and the other ingredients considered for our specialty simits.
To enforce the image of a quality and healthy alternative, we will inform our clients of the
nutritional value of our product via posters in the shop. We could also print brochures with
the nutritional value of our products for our clients to take with them. If clients do so, it
would also be a good way to promote our shop via mouth to mouth marketing.
3.2.2 – Important Features
In the list of the most valued attributes of baking products (in Spain), only 2.35% of people
consider price as a determinant factor, while the flavor and freshness of the product are the
two characteristics most appreciated.
Our Simit Shop is going to prepare products in batches of a few units throughout the day,
so the freshness of the product is guaranteed. It will be a distinctive feature compared to
other establishments which prepare products early in the morning and sell throughout the
entire day, or receive them packaged and sold during weeks.
53.50%
13.62%
26.53%
2.35%
4%
Valued Attributes of a Good Bakery Product
Good Taste Do not contain saturated fat Refreshness Affordable Low Expiration

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Related to having good taste, we are only going to buy flour from a manufacturer. Then we
are going to prepare all of the products in according to our recipe to get original flavor. We
are not going to use saturated fat and we are going to give information about that to our
customers.
3.3 – Competitive Strategy
According to Phillip Kotler, we must identify our target market´s Leader, Challenger,
Follower, and Nicher. The market leader (or leaders) is the dominant firm of the industry,
with the largest market share. Market leaders commonly take the first steps into price
changes, new product introductions, control the intensity of advertisement and promotion,
and have the most coverage in the marketplace. 9
Given that we are a Simit Shop with our specialized baking products, finding a market
leader would only be possible if we look at our market as the industry as a whole. Since we
are introducing a novelty of baking products, no specific leader could be pinpointed. We
would become the leaders of this specific niche market; with a first mover advantage in
hand. As market leaders, we will, in theory, have all the market share regarding our
product, as no other bakery or supermarket currently sells simit. With the introduction of
the Simit in the specialized bakery sector, we hope to attract customers for the following
reasons:
 The introduction of the Simit as a new product to the market.
 With the growing amount of internationals living in Spain, new products have been
introduced into different markets. Both the Spanish and Internationals, especially in
Madrid, have become culturally flexible and curious about other products available,
especially in the food sector. (I.e. kebabs, Chinese, Latin American, Indian
restaurants, etc.)
 We want to make Simit Shop more than just a selling point. The idea is to make the
purchase of our products an experience for the customers. A good service is the
starting point for a positive experience.
 Customization of the Simit is another strategy we want to take on. We can offer a
variation in the recipes, adding new ingredients to make our product more attractive
to other target customers.
9
Kotler, Philip (1997), Marketing Management, 9th
Ed., Prentice Hall, New Jersey.

30. 29
But, since we are not in a position to close our doors to the general market, typical baking
product suppliers and distributors (fresh and frozen) will be considered as the Market
Leaders, as this company (or companies) is the one providing our potential niche
competitors with their basic products. ASEMAC10
(Asociacion Española de Masas
Congeladas) contains the biggest players in the industry, and generally sets the trends in the
baking products market in Spain.
If any of the firms in the ASEMAC conglomerate begin to offer products similar to ours,
we would make a special emphasis on how our product has better quality and is genuinely
fresh. As opposed to the products used by most bakeries in Spain, frozen dough. This is
also an opportunity for the Spanish market to realize that “out of the oven” is not a
synonym for “fresh”.
The Challengers are “Firms that are not market leaders in their industry or product category
are trailing firms. One or two of them could be close competitors to the market leader and
they can be termed as runner-up firms. These firms can take the role of challengers when
they make aggressive efforts to further their market share or they can be termed followers
when they keep quiet and maintain their market share.” 11
Since ASEMAC gathers all of
the market´s baking products companies, there is no clear challenger in the industry. Any
bakery offering similar or substitution products will be considered our challengers.
Supermarkets and Franchises like Starbucks, who offer a wide variety of baking products
will be regarded as challengers. Given that there are so many bakeries in Madrid, but
without a strong brand and presence in the Turkish bakery market, we will refer to them as
followers.
Europastry, Precopan, Pastyfrio, and Orconsa are only a few of the companies that belong
to ASEMAC. These companies can be considered as followers, who basically follow what
the leaders do, the leaders set (prices, processes), innovate, etc. Since this is an association
of companies, they all follow the same line.
If we look at our market as “people who consume baking products”, we will find ourselves
with a huge market, making it very difficult to target them in general. Because of that, a
market segmentation is required. According to Kotler and Armstrong (2002), segmentation
is "the act of dividing a market into distinct groups of buyers who might require separate
products and/or marketing mixes."
A niche market, as described in the Business Dictionary, is the “concentrating all marketing
efforts on a small but specific and well defined segment of the population. Niches do not
10
http://www.asemac.es/quienes.html
11
Kotler, Philip (1997), Marketing Management, 9th
Ed., Prentice Hall, New Jersey.

31. 30
'exist' but are 'created' by identifying needs, wants, and requirements that are being
addressed poorly or not at all by other firms, and developing and delivering goods or
services to satisfy them. As a strategy, niche marketing is aimed at being a big fish in a
small pond instead of being a small fish in a big pond. Also called micromarketing.”12
On this basic idea, we want to compete in “arenas, rather than industries”. In our case, if we
consider the baking industry as the main competitor, we are not going to find a new market
necessity, but rather discover a new niche market that is unattended. Our business will work
in a different and improved way, to a segment that consumes and knows about bakery
products, also creating an image of “healthier” baking products for them to
consider/consume.
Segmenting the market of “baking product consumers” is, therefore, the first step to
defining the target markets of Simit Shop, where we will center most of our commercial
efforts. This does not mean, in any case, that the rest of the segments of the market will be
abandoned or ignored, as we will also have an offer for them.
This way, we will be able to avoid the larger firms, by targeting niches that are little or of
no interest to the larger firms. Once these niches have been identified or created, the next
step would be to expand them and protect them (protection of the niche is very important; if
larger firms see the potential or success of the niche, they might opt to enter the market).
According to Philip Kotler, “a firm should `stick to its niching’ but not necessarily to its
niche. That is why multiple niching is preferable to single niching. By developing strength
in two or more niches the company increases its chances for survival.”
Establishing a sustainable competitive advantage is becoming extremely difficult in today´s
world. As technology evolves, your competitive advantage can become obsolete the next
12
http://www.businessdictionary.com/definition/niche-marketing.html

32. 31
day. These types of advantages are considered to be transient (according to Rita Gunther
McGrath), and not sustainable. “To operate, we need a new set of assumptions about how
the world works and a new playbook to compete and win when competitive advantages are
transient”.13
3.4 – Resource Allocation Strategies
3.4.1 Product Life Cycle (PLC)
Phase 1 – Introduction
This phase is the most expensive, because we need to invest heavily in promotion to build
awareness (such as free samples and marketing cost) and, with the correct strategy, target
our marketing efforts at people who influence others to buy a new and unique product.
During this phase, we will hold some special events to attract customers, such as a
“greeting week of tasting”. In order to have a successful store launch, we will be giving
away flyers inviting potential customers to our opening.
Phase 2 – Growth
In this phase, we expect our sales to increase, causing our unitary costs to lower.
Competitors will appear and aim to grab some market share. Our marketing objective will
now be to maintain and increase our market share. For example, by improving our product
portfolio and offering new packaging alternatives, therefore, attracting more clients.
Phase 3 – Maturity
In this phase, our product will peak, and we expect the competition is going to be numerous
and complex. In order to maintain our market share and margins, we will innovate our
product portfolio, adding a few services, such as catering, event planning, etc.
13 http://www.forbes.com/sites/stevedenning/2013/06/02/its-official-the-end-of-competitive-advantage/

33. 32
Phase 4 - Decline
As demand starts going down, the market will be getting smaller, as some customers lose
interest and drop off; therefore, sales will fall as new products emerge. This phase is
inevitable for some reason; one of them might be because people get bored of the product
or because the product necessity disappears. We are going to offer a mix of new products,
such as desserts, beverages, bread, etc. Then, we will reduce some variety of simit flavors
and focus on high demand goods. Finally, we plan on opening new shops in different cities

34. 33
3.4.2. – The GE-McKinsey Nine Box Matrix
L O WH I G H
MARKET ATTRACTIVENESS
C
O
M
P
E
T
I
T
I
V
E
P
O
S
I
T
I
O
N
Protect position
 Grow as much
possible.
 Sustain
strengths.
Grow selectively
 Invest in attractive
segments
 Neutralized our
competitors
 Increase rentability
via productivity
Protect and reorient
 Win
 Concentrate on
attractive
segments
 Defend our
strengths
Invest for growth
 Selective
development of
strengths.
 Reinforcement
in weakness.
Win selectively
 Invest on segment
of good rentability
and lowest price.
Win
 Protect our
position on
rentable
segments.
 Improve our
products.
 Minimize your
investment.
Grow selectively
 Neutralize our
weakness.
 Find different
solutions if not
growing.
Expand selectively
 Expand at lower
risk or lower
investment.
Divest
 Reduce our fixed
costs.
 Sell maximizing
our cash.
H
I
G
H
M
E
D
I
U
M
M
L
O
W
M E D I U M

35. 34
3.4.3 – Loyalty-based Strategies
Loyalty nowadays is one of the most important assets of any food shop. The future for the
company depends on the strategies that the company uses to get a good customer base, who
come back to consume any type of products, and that suggest as a good option to eat to
others potential customers. For this reason, we are going to design some strategies to keep
our customers satisfied.
Loyalty program
This strategy consist on creating a loyalty card, where the costumer can accumulate points
with each purchase, and when 10 points are accumulated, the customer is entitles to one of
any type of Simit that they want free of charge. Furthermore, this loyalty card serves us to
generate a database, which will help us understand which are the types of simits that
customers consume the most; and which are the flavors that people would like to taste.
Rewards program
This strategy is different to our loyalty program, as our customers are not required to have
any type of card or affiliation to get the reward. The control is an internal aspect for the
bakery. For example, we could provide a birthday or special occasion simit, so they get to
know how important he/she is to us.
3.5 – Growth Strategies
3.5.1 – Keeping Competitive Position
With the aim of minimizing risk, and regarding the tendencies of the bakery market in
Spain, and especially in Madrid, we have to adapt to the new lifestyle and current
preferences of the consumer, with new technologies and new products. Our strategy is
focused on providing our products to the new consumer, a quick, nutritious, and exotic
snack. According to the GFK market research company, “In the field of marketing, this
new healthy consumer is considering their physical, emotional and intellectual well-being
up above the traditional consumerism, luxury and somewhat unnecessary things for their

36. 35
own development. They are more aware of what to do to make your life healthier”14
, and
that’s what we are going to provide to our potential market, this way we maintain our
competitive position.
3.5.2 Ansoff Matrix
Source: Authors
a) Market Penetration
In Spain, the consumption of bakery products, pastries, cakes, and biscuits reveals a
clear upward trend in the last year in a 1,8 %15
; bakery products have a great
acceptance among the different age structures which provide a big range of potential
consumers. Today, consumers are more selective and focus in product
diversification. They want something fast, different, and healthy. The industry is
committed to diversifying the product ranges and adapt to the changing needs of
consumers, who increasingly value new formats and innovative and healthy
products. Having said that, on the one hand, the industry is trying to bring to the
market products that contribute to a more comfortable lifestyle, but at the same
time, lead to an improvement of the nutritional profile, so that the consumer has a
maximum ease to a balanced diet.
14
Las 12 tendencias del nuevo consumidor según GFK,
http://www.revistapym.com.co/noticias/mercadeo/las-12-tendencias-nuevo-consumidor-segun-gfk
15
20 minutos.es, “El consumo de pan en España rompe la tendencia y aumenta en medio de una guerra de
precios”,http://www.20minutos.es/noticia/2018890/0/consumo-pan/guerra-precios/marcas/#xtor=AD-
15&xts=467263
PRODUCTS
Traditional New
Traditional
Market Penetration Product Development
MARKET
New
Market development Diversification

37. 36
b) Market development strategies
As we are going to enter a new product in the existing bakery market in Madrid, our
market will develop according to our penetration and the acceptance of the product
in the current market. In the future, we consider exploring other markets, like frozen
bakery. In terms of advertisement we are going to focus on visual ads, promoting
the business via mouth to mouth, and gaining notoriety within the social networks.
Another aspect which is of vital importance to us is promoting the business in the
already establish Turkish venues, such as the kebabs restaurants, markets etc. Our
objective in this regard is to create a network, which we hope will become our base
of potential customers.
In terms of adaptation, due the products that we will be handling in the bakery are
unknown to the Spanish consumer, it is imperative to adapt it and offer them in an
innovative way, with clear differentiation from the traditional Spanish bakery
products. We want them to discover our products as a substitute of the current
“bocadillo”, a different way of eating a healthy snack.
c) Development strategies
One of the strongest points of our Turkish bakery is that the company is open to
change, and will remain in constant innovation. In this business, we are going to
manage a wide variety of products, offering different packaging and presentations
that will be key in attracting new customers and engaging new ones, according to
market evolutions and trends.
d) Diversification
Our diversification strategy is not for the near future, as we consider it too risky at
the beginning. First, we want to establish our products and our brand, and when we
position ourselves successfully regarding the market situation, we will analyze how
we can enter new markets. We are also taking into account that the Spanish market
of bread consumption at home during 2012 stood at 1.65 million tons, with a value
close to 3,890 million euros16
. Consumption is growing, and according to this
growing trend, we need position our product and give the consumer one clear
choice.
16
Libre mercado “el consumo de pan aumenta por primera vez en décadas”,
http://www.libremercado.com/2013-10-16/el-consumo-de-pan-aumenta-por-primera-vez-en-decadas-
1276501877/

38. 37
3.5.3 – Integrative Growth
Backwards Integration Horizontal Integration Forward Integration
Suppliers Competition Distribution
The company is going to
produce its own dough. This
way, we will eliminate
intermediaries in the
production line.
Even though the company
could benefit by the
detriment of our competition,
it is not the key factor of our
potential growth and success.
The commercialization of
simits will be by our own
shop, with no additional
channels of distribution.

39. 38
3.6 – Marketing Policies
- Product
A Simit is crisp, round bread in a donut shape, decorated with sesame seeds. It
has different characteristics in term of size, crunchy texture and customization
options.
- Packaging
For those who want to have their simits to go, the packaging of our products will
be in paper bags with the company logo printed on it. For customers who want to
consumer our products on spot, it will be handed to them on a napkin with the
company logo printed on it.
- Size – 11, 8 cm average it can vary.
- Portfolio
Our portfolio is based on the customization of our Simits, with salty and sweet
ingredients, based on the most likely combination in the Spanish market, such as
cheese, ham, chocolate, cream, olive oil, etc.

40. 39
3.6.1 – Prices
a) Bags
Ours packaging bags are going to be of paper, and after analyzing different
options the most suitable one for us is buy them online in solostocks.com,
because it provides us more quantity for less price. 15 euros for 1000 bags which
means that each bag cost us 0,015.
3.6.1.1 – Place and Distribution
Our business idea is thought of in a long term period of time. At the beginning of business,
our distribution channel will be our physical premises (shop). As we grow and strengthen
our position within the market, we will evaluate if the creation of additional distribution
channels is a positive idea.
There are a few elements to take into account in this regard:
a. Objectives to be reached: Our main goal in terms of place and distribution is to
locate our shop in a place (or places) where we are visible and accessible to
potential customers.
b. Market and consumer's typology: Adult couples without children or with older
children and households in which the person responsible for making the purchase
does not work, such as retirees, are the ones that consume the most bread, while
households with children under 6 years and young adults living alone are showing
a lower preference for this food17
. Other key factor in the profile of the consumer
is that today, young adults tempt to eat more sandwiches, and healthy bread
17
Pan cada día, “Perfil del consumidor”, http://pancadadia.wordpress.com/noticias-2/perfil-del-consumidor/

41. 40
snacks as part of their diet due to the time of preparation or because of economic
aspects, they search for a take and go option.
The market shows important growth in comparison with the previous year. As shown
in the chart below, even though the presented growth is slight, we understand the
future growth prospects are even more positive, given the diversification of cultures
within Spain and the pursuit of economic already made food for daily choices.
Source: Ministerio de Agricultura Alimentación y Medio Ambiente
c. Products/Services and its characteristics: Simit and its variations, simple, fresh,
healthy.
d. Customer’s buying habits: A few years ago, the vast majority of bread was
bought and sold in specialist shops. However, currently these establishments
represent just 42% of sales, while supermarkets and hypermarkets and coalesces
41.6% of the sector18
.
2.6.2 – Place and Distribution
a) Advertisement: In this aspect our objectives are: First, to inform the community of
Madrid of the arrival of new products into the bakery market. We need to inform
them the choices they have, let them now about our product. Secondly, persuade the
potential consumer to pick us above the other market options. Third and final, for
18
20miutos.es, “El consumo de pan en España rompe la tendencia y aumenta en medio de una guerra de
precios”. http://www.20minutos.es/noticia/2018890/0/consumo-pan/guerra-precios/marcas/#xtor=AD-
15&xts=467263

42. 41
customers to become familiar with us, create brand awareness, and make simits their
first choice.
b) Promotion: Our promotion strategy focuses exclusively on the consumers. As we
grow, we can expand our strategy to the employees and intermediaries if the case
demands it.
Our strategy includes:
a) Price reductions: We are going to make promotions to achieve the introduction
of a new item on the market and fight for customer loyalty jurisdiction over our
store; this will be a complement of our campaign, we are not planning to have
permanent or continuous promotions, only for the introduction of our product the
Simit.
b) Tasting: Give samples in front to the store to it in invite people to enter and
know us, other possible action in terms of testing will be making a partnership
with the Turkish restaurants in the town so they gave our product as company of
their dishes always with the projection of permanent partnership.
c) Services: our differentiated services will be focus on provide quality attention
and fulfill our customer’s needs; by working in our human resources and
improving our contact with the costumers we will create loyalty among them, we
want to create brand awareness so they prefer to buy our products regardless the
other products in the market.

43. 42
CHAPTER 4: Operations
and Processes
4.1 – Location
4.2 – Neighborhood Analysis
4.3 – Distribution of Plant
4.4 – Detailed Plan of Distribution
4.5 – Operations and Processes
4.6 – Management of Raw Materials
4.7 – Simit Preparation
4.8 – Packaging and Charging
4.9 - Suppliers
4.10 – Processes
4.11 – Organization and Structure
4.11.1 – Mission, Vision and values
4.12 – Organization Chart and Human Resources
4.13 – Schedule
4.14 – Description of the Work Positions
4.15 – Gantt and Time Charts
4.16 – Training and Development Programs
4.17 – Motivation of Employees
4.18 – Dismissal Policies

44. 43
4.1 – Location
A good location is a key factor for the success of the business, given that it directly affects
the competitive capacity of the company. Any business concept can fail or have great
success depending on the place where it is located, and in many cases, the location of the
business is one of the key commercial variables for the company.
Of all the factors to consider when opening an establishment, the most important to Simit
Shop are:
 Transit of people: In a business with tight margins of benefit and where two of the
key elements for success are rotation (variety of products), and freshness, it is
essential that sales be as high as possible. Therefore, it is critical that the transit of
people to be high.
 Proximity to workplaces: The concept of our Simit Shop is perfect for the people of
the area. Simit Shop is perfect for having a simit for breakfast, on the way to work,
for a short break or a quick and healthy bite. We can foresee that workers from
around the area, students, and passerby´s will be an important source for clients.
 Proximity to a busy area of public transit: This is a strategy used by many food
chains around the world (Dunkin´Coffee). If the shop is located next to a metro
station or a frequently used bus stop, we could seduce many passerby´s to buy our
product, given the ease and speed of purchasing.
The proximity and availability factors regarding human resources are somewhat irrelevant,
given that the tasks to be performed in our shop are not at all specialized and do not require
a heavy or intense formation and training.
We have concluded that the shop has better chances of achieving a quick “in and out
service” for clients if the shop is rectangular or square, which would maximize the visibility
of all our product. It is important that the entry/exit door be particularly big, so the rotation
of clients if fluent and the visibility is increased.
The size of the shop will be consulted with an architect or engineer, so we can comply with
the minimum required space for the shop, machinery (ovens, refrigerators, etc.) and
sanitary services, determined by local laws or regulations (if any).

45. 44
The areas that we understand that comply with the previous requisites are:
 City Center: Commerce is highly concentrated and there are numerous passerby´s,
tourists, workers, metro stations, etc. If we are successful in seducing them into our
shop, our sales would have an important boost. The major problems we would
encounter are the renting costs, the availability of space, the ‘antiquity’ of the space,
etc.
 Paseo de la Castellana: With a high population density given the numerous
amounts of office buildings in the area, there exists a high availability of more
“modern” spaces available, with large facades in most of the cases. It is a very
important avenue in the city and it fits correctly with our brand.

46. 45
 Gran Via and Malasaña: Another important area in Madrid. It is highly populated
due to the large amount of businesses, offices, and apartment buildings in the area.
It is also popular tourist destination, where both tourists and locals meet on a daily
basis. The area has recently become a favorite by both tourists and locals for leisure
activities, with a very exciting nightlife.
 Ciudad Universitaria: Another option to consider is the bordering area of the
Ciudad Universitaria with Chamberi, a densely populated neighborhood in Madrid.
Considering that most students who attend the universities in the area live in dorm
rooms or the surrounding neighborhoods, locating our shop in the area would be a
good option.

47. 46
Regarding the type of occupation of the shop, we have opted for a lease, as we do not have
the sufficient funds to buy a commercial space of these characteristics in any of the
previously mentioned areas.
4.2 – Neighborhood Analysis
We understand that the City Center provides the characteristics that best fit our
requirements.
 City Center, Gran Via and Malasaña:
o The City Center is approximately 5.23 km², housing nearly 150,000 people.
o Monuments of the area include The Palacio Real, Puerta de Toledo, Palacio
de las Cortes, museums, El Rastro, etc.
o The area also hosts many commercial activities, with El Corte Ingles (which
also has a supermarket) and many of the stores belonging to INDITEX,
located around the area.
o In Malasaña, an estimated two hundred people pass by every fifteen minutes
during peak hours (morning – before beginning work, noon – during lunch
hours, afternoon and evening).
o Banks and ATM´s within the area:
 BBVA
 Santander
 Bankia
 Sabadell
 Barkleys
 Banco Popular, etc.
o The direct competition found in the area is substantial:
 Traditional establishments:
 La Mallorquina
 Starbucks
 Cafeteria Chocolateria Ricote
 Rodilla
 Casa de la Panaderia

48. 47
 Pans & Company
 Papizza Romana
 Restaurante Pacrep, etc.
 Supermarkets:
 Dia
 Lidl
 Carrefour
 El Corte Ingles
 Supermercados Vecino SL
 Supermercados Coviran, etc.
o Traffic
 Our selected location, in Malasaña, presents an average traffic per
thirty minutes of two hundred people.
4.3 – Distribution of Plant
An appropriate distribution will allow the company to organize the equipment and work
areas, resulting in a more satisfactory and comfortable place. The basic objectives to be met
by local distribution are:
- Unit
- Minimum flow and circulation
- Security
- Flexibility
It is also thought that having an accessible, transparent establishment to help us fend off the
negative image of pastries, allowing the customers to see from outside the distribution of
the store and the exhibited products.
Therefore, the establishment shall be rectangular, with a large glass window that allows
potential customers to see the inside of the shop and all the staff working inside. Similarly,
from the inside of the shop, it will be possible to see employees when they work on the
preparation table or oven when baking the products. In this picture, you can see the idea of
transparency that we want to transmit.

49. 48
Prepared products also should be transparent and easy to access. In this manner customers
can see whole products and customize their simits easily. Following pictures should be a
good example for our shop.

50. 49
4.4 – Detailed Plan of Distribution
The following areas of the premises are to be distinguished:
 Ordering Area: This area will be the focal point of the shop. From the first step
inside, customers will be able to see every product on that area behind the
transparent plate made of glass until they reach the ordering area. In the following
image, the following layout is displayed.
 Customization Area: Just before reaching the cashier, customers will find a small
area to customize their products. In this area, they can customize their simits with
different ingredients, such as cheese, ham, chocolate, chocolate, etc. They can
choose any of these products to place them inside of the simit. The additional
ingredients will be priced, and previously indicated.
 Paying Area: In this area, customers pay for their products. One employee is going
to be the responsible of this area, in which the employee is able to see customers off
in a positive way, after packaging their products regularly. There will be also a
refrigerator and coffee machine just behind of the employee to complete customers’
orders with a drink (if ordered).
 Storage Area: This area is needed to protect our ingredients and beverages.
 Preparation and Baking Area: This area is where our employee prepares the
products. A big oven, deep freezer, dough machines, and a set of tables are going to
be needed for this area. This area will be visible from the main area of store, so that
customers are able to see the preparation of their food, which adds value to our
freshness and quality objectives.

51. 50
Estimated approximate budget for the design and reform of the premises, which will
include bathrooms, exhauster, electrical doors, showcases, and adequacy of air conditioning
equipment is 45.000 €. Further details explained in financial plan.
4.5 – Operations and Processes
The business layout can be defined by the following operations: reception, storage and
management of raw material; preparation of the products and distribution on the premises;
customization of the simits, and cashier.
4.6 – Management of Raw Materials
Our simits require the following ingredients: Ingredients of the dough, fresh fruits, dried
fruits, drinks, and filler creams and sauces.
The ingredients of the dough, sauces, and the rest of the ingredients will be received by
agreement with the supplier, one time per week, at the begging of the day (before opening
the store at 8 am). The labor of the employees will be to receive the products and check that
everything is complete, sign the receipt, and, finally, setting all the products in place.
At the beginning of the day, when receiving the product and baking it, and at the end of the
day, the baker has to update the inventory for the store. A simple software will be used to
help us in the replenishment of our ingredients, at a minimum amount of safety stock. The
agreement with the supplier allows us to post orders two days before the delivery through
email or via the software.
Moreover, before opening the store early in the morning, we will receive the daily orders of
fruits and dried fruits, which will be paid weekly. Fruits should be washed and peeled
before putting them for sale.
Finally, the beverage supplier will also provide product one day per week. Again, this
provider will allow the order to be paid thirty days after delivery, therefore, employees will
only need to sign at each delivery. The sales person will be responsible for updating the
beverage inventory. Orders can be posted by email or by our software.

52. 51
4.7 – Simit Preparation
The process starts when the baker has all the ingredients ready to mix.
- Preheat oven to 375 degrees.
- In a medium mixing bowl, mix together flour and salt.
- Make pressure on the dry ingredients with your fist, forming a "hole" in the middle.
- Add olive oil, melted butter, water, milk, and egg.
- Fold dry ingredients into liquids to form dough. This may take 10 minutes by hand.
- Once you have the dough, tear off pieces of dough making long, cylinder shapes.
Bring the tips of "cylinders" together to make a circle.
- Place circle on greased cookie sheet.
- Brush with milk. Sprinkle sesame seeds on top. Repeat with remaining dough.
- Bake for 30 minutes, or until simits become golden brown and crispy on top.
4.8 – Packaging and Charging
The cashier will collect the products from the customer and place them inside one of our
Simit Shop bags (if the customer has ordered a beverage, it will only be handed to them
inside a cup if the beverage is warm, or in its own bottle, can, etc. if the beverage is cold).
Cashier will proceed with check-out, charging the correct amount to the customer.
As we want to create a “good service” and warmth image, our cashiers will be obligated to
wish the customer a good meal and day.
4.9 - Suppliers
For our six main ingredients, we found the following suppliers:
 Flour

53. 52
Atlanta is a Spanish company located in Leganes (Calle Ramón y Cajal, 2, Leganés
– Madrid), which specializes in the sale of foods and beverages for hotels,
restaurants, etc. They provide their services in the entire peninsula and most
European countries.
Harissa is a Spanish company founded in Madrid (Camino de Puenteviejo, s/n,
Arganda del Rey – Madrid) with more than 30 years of experience. They specialize
in the fabrication and commercialization of different types of flour.
Vaper Foods is a Spanish company located in Madrid (Calle Los Metales Nº 1B,
Humanes de Madrid) which specializes in the elaboration and commercialization of
frozen foods, and exotic Latin American ingredients.
 Yeast
AB Mauri (Villarubia – Córdoba) is a division of the Associated British Foods,
which is one of the biggest groups worldwide for baking and pastry goods. AB
Mauri is one of the biggest suppliers of yeast in Spain. (http://www.abmauri.es/)

54. 53
 Salt
Given that the amount of salt in our products is not large, the purchase of salt can
take place in any supermarket in Madrid.
 Grape Molasses
Azucarera is a Spanish company founded in 1903. They are leaders in the
production, commercialization and distribution of white and brown sugar. They
offer a wide variety of products, such as molasses.
 Sesame Seeds
Located in Valencia, Coralim Aditivos distributes sesame seeds to hotels,
restaurants, and bakeries in Spain.
Sucesores de Arturo Carbonell S.L. is a Spanish company founded in Murcia, 1965.
Its main activity is the sale of dehydrated products, such as garlic, onion, lemon, etc.
White, golden and black sesame seeds are also amongst the products they offer.

55. 54
Given that we will offer beverages in our shop, the following options will be
considered:
 Coffee
Illycaffe produces and sells excellent quality coffee all around the world, since
1933.
Valdecoffee is a Spanish coffee company founded in Madrid. They also offer coffee
makers, coffee grinders, tea, and chocolate powder.
Villa Real Café is a Spanish company settled in Madrid, which specializes in the
production and commercialization of coffee. The offer ground coffee beans, coffee
capsules, and top quality teas.

56. 55
 Tea
Unilever is an international company that operates in 190 countries. Unilever
operates over 400 brands, Lipton Teas being one of them.
Nectaran is a Spanish company that, since 1989, dedicates its operations to
importating and distributing all types of teas, infusions, and accessories for the
consumption of tea.
 Mineral Water and Soda
Dispedia is a Spanish company that specializes in the commercialization and
distribution of beverages in Madrid. Their product portfolio includes beer, wine,
water, milk, juices, sodas, coffee, tea, etc.

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The Coca-Cola Company is an American multinational beverage corporation and
manufacturer, retailer and marketer of nonalcoholic beverage concentrates and
syrups.19
19
http://en.wikipedia.org/wiki/The_Coca-Cola_Company

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4.10 – Processes
1. What
a. Simits – 160 to 185 daily.
2. How
a. Recipe provided.
b. Baked in one of our six oven-type options at 200 degrees Celsius.
i. Can be Electrical, Gas-Filled, Wooded Gas-Filled, Wooded, Mobile,
and Bistro.
3. When
a. Everyday
i. Two or three batches of simits per day.
ii. We would start early in the morning, at 6 a.m. The preparation of our
ingredients for our three sets during the day would take us an
approximate time of two or three hours, given that we will prepare
the recipe for all of them in the morning.
b. FIFO methods.
i. First In, First Out – We will offer fresh product every business hour
of the day.
4. With what
a. Ingredients.
i. Flour – 12 kilograms
ii. Yeasts – 375 grams
iii. Water – 18 kilograms (40 cups of water)
iv. Salt – 375 grams
v. Grape Molasses – 3 kilograms
vi. Sesame Seeds – 500 cups
b. Machinery
i. Selected oven type.
5. How much
a. 180 to 200 daily, high quality Simits.
6. Who
a. Described in our Human Resources report.

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Total Quality Management
TQM process is quite simple due to the size of our company. We will focus in our clients,
working on continuous improvement so to offer the highest quality of products and
services, which we ensure will enrich the experience of our customers at The Simit Shop.
Our TQM consist in:
- Customer Oriented: The customer ultimately determines the level of quality. No
matter what an organization does to foster quality improvement training employees,
integrating quality into the design process, upgrading computers or software, or
buying new measuring tools, ultimately, the customer determines whether the
efforts were worthwhile20
.
The Simit Shop will allow customers to select and customize their products. Also,
customers will be involved in the entire process, making the experience very
personal.
- Continuous improvement: The major thrust of TQM is continual process
improvement. Continual improvement drives an organization to be both analytical
20
TQM, http://asq.org/learn-about-quality/total-quality-management/overview/overview.html
TQM
FOCUS ON THE
CUSTOMER
CONTINUOUS
IMPROVEMENT
QUALITY
IMPROVEMENT
INVOLVE
EMPLOYEES

60. 59
and creative in finding ways to become more competitive and more effective at
meeting stakeholder expectations.
The company will continuously seek ways to improve our approach and
communication with customers. This process will allow us to get closer to our
customers’ expectations.
- Quality improvement:
We assure the quality of our services by reassuring our employees´ skillset per
position within the company. Continuous training will improve their customer
service skills.
We assure the quality of products by properly handing our raw materials, and
carefully preparing our Simits until they are out of the oven.
- Involve the employees: All of our employees work in the same direction, towards
common goals. Total employee commitment can only be obtained after fear has
been driven from the workplace, when empowerment has occurred, and
management has provided the proper environment. High-performance work systems
integrate continuous improvement efforts with normal business operations. Self-
managed work teams are one form of empowerment.

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4.11 – Organization and Structure
4.11.1 – Mission, Vision and Values
Our company´s mission is to satisfy clients by offering unique, fresh, and high-quality
bakery products.
A great service is the goal set by the company in order to successfully accomplish the
client´s satisfaction on their experience. Therefore, we will take care of every single detail
to fulfill client´s needs regarding our products and services.
Our long-term objective is to become the leader company in the alternative bakery food
sector in Spain, and to become a trademark.
To achieve our mission and vision we will apply the following values:
- Leadership: convince workers to believe in their company´s mission to transmit the
same sensation to our clients.
- Commitment to quality: we will use the best raw material to make healthy products
that will be easy to eat and easy to digest.
- Professionalism
- Offer a wide variety of products
- Human resources dynamism
- Loyalty: We´ll keep competitive prices.
- Ecologic commitment: recycling and handle remains responsibly.
In summary, mission, vision and value must integrate between each other to accomplish the
company´s objectives.
4.12 – Organization Chart and Human Resources
All the functions of the company have to be according to our mission, vision and values
which were already defined; but, have special importance on some areas, such as Human
Resources, which has to be developed with full integration according to these principles.

62. 61
The organization chart of the company, designation of roles, and allocation of work are
made according to the labor score from the bakery industry and pastry making by21
collective agreement.22
The salary levels are based on the same agreement of 2013, the
updated version, at industry average.
Graphic #1
Source: Own elaboration
As we can see, the organization chart of the workers is related to of a traditional PYME,
without some middle managers and with the accumulation of work for the founder of the
company, as we explain later.
4.13 – Schedule
As we will be located near the city center of Madrid, we are going to work with an
uninterrupted schedule from 6:00 am to 10:00 pm. For this reason, we going to need two
work shifts from 8 hours each one. The store is going to open every day of the week.
The first work shift will start at 6:00 am, in order to have enough time to prepare our
products and be ready to open at 8:00 am. The reason for this schedule is to try to capture
all those potential customers who are on their way to work or educational facility at the
beginning of the day. The time before opening is required, in order for us to receive all the
materials necessary and for the preparation of our products.
The change of shifts will take place at 2:00 pm, which we hope will be an easy and
comfortable schedule for our employees. Although the store is closed at 9:00 pm, the
employee has to stay there until 10:00 pm, so to clean the premises, count the money
earned and make the inventory of the dough and beverages. By closing at 10:00 pm and
21
http://www.cve.es/cve2011/wp-content/uploads/2011/05/CCP-PANADERIA-2011-2012-2013.pdf
22
http://www.cgt-cyl.org/descargas/valladolid/VA-Confiteria-Pasteleria-Bolleria-
Reposteria%20Industrial.pdf
ASSISTANT
OWNER
BAKER
SUPERVISOR

63. 62
starting the first shift at 6:00 am, we avoid paying extra for a night shift (after 10:00 pm and
before 6:00 am), according to the collective agreement previously mentioned.
4.14 – Description of the Work Positions
Carrel, Elbert and Haffiel (1995) highlight that the description of the work positions is the
process by which the direction controls systematically the works, obligations and
responsibilities of the workers of the company.
a. Job title: Manager
 Departments
o All departments.
 Functions and responsibilities
o The owner is going to be responsible of all the administrative labors of the
company, which include:
- Updating the accounting books.
- Controlling and maintaining the relationships with the suppliers.
- Designing the advertisement and promotion for the company.
- Managing the Human Resources, contracts, and salaries.
 Tools and resources
o Office equipment, such as laptops, telephones, etc.
 Required Skills
o Business skills: University Degree in Business Administration, or related.
o Experiences if they have, but it’s not really important because is a small and
new company.
 Availability
o Full time.
 Salary
o 1.500€ a month.

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b. Job title: Baker
 Departments
o Production
 Functions and responsibilities
o Prepare the dough for the simits.
o Responsible for preparing all the products for sale.
o Employee has to handle the flow of trays between cashier and new
customers.
o Employee supervises simit customization.
 Tools and resources
o All of the equipment and the raw material needed for the elaboration of our
simits: Refrigerator, oven, and other kitchen instruments required for
production.
 Required skills
o The baker has to be a professional in this field, with an official title that
proves it. Food processing license is required.
o Experience in this field: Minimum of one year.
 Availability:
o Full time: Considering that we are going to offer fresh and soft products, our
baker have to stay full time in the store and keep making the simit during the
day.
 Salary:
o 750.00 € a month.

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c. Job title: Assistant
 Departments
o Production.
 Functions and responsibilities
o Assisting the chief baker in the preparation of our simits.
o Preparation of the product display and customization ingredients.
o Responsible for the customization of simits.
o Direct contact with clients.
o Responsible for cleaning the premises.
o Receiving beverages and assuring purchase order is correct.
o Baking of products – assistance.
 Tools and resources
o All the material necessary to garnish and customize the Simits.
 Required skills
o Slight knowledge about the sector, taking into account that the baker could
train during the first weeks on the job.
o It is necessary to have the food processing license.
 Availability
o Full time.
 Salary:
o 900.00 € a month.

66. 65
d. Job title: Supervisor - Cashier
 Departments
o Sales
 Functions and responsibilities
o Opening the premises – Closing the premises.
o Responsible of charging the customers, bagging the products, registry count,
bag inventory, and assisting the bakers when required.
o Responsible for receiving the raw materials for our products.
o Inventory of all products.
 Tools and resources
o Cash register.
o Bags, napkins, and cups.
o Computer.
 Required skills
o Certified higher education.
o Slight knowledge about the sector
o Computer skills
o Basic Accounting skills
 Availability
o Full time: considering that He/she are helping all over the day to sale the
Simits.
 Salary
o 1,150.00 € a month.

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3.15 – Gantt and Time Charts
Delivery Day

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Ordinary Day

69. 68
3.16 – Training and Development
Our employees will receive specific training regarding the good practices of food handling
and hygiene, acceptable working apparel, personal hygiene, and habits during the
manipulation of food. The technique used to produce our simits is not complicated, but for
quality reasons, each employee involved in the production of our simits will receive a
training session on how to produce simits from scratch.
Our employees will also receive a training session regarding proper conduct in the
workplace, with fellow employees, and with customers.
3.17 – Motivation of Employees
Our Training and Development are a good source of motivation for employees. We
understand that some employees want to learn new skills and gain experience, in order to
grow professionally, therefore, our training and development programs will be continuous.
Personal Development Plans – Each employee has a specific role but different
characteristics, therefore, each employee should have a personal development plan.
Coaching and mentoring will be recognized by the company, as well as greatly appreciated
by the employee in hand.
Rewards and Recognition – Recognition is a good way to compensate an employee´s good
performances. It is greatly appreciated when peers and managers publicly recognize one´s
efforts. As our shop requires at least six employees per day, the best performing employee
per month will be rewarded with an “Employee of the Month” internal award.
Communication – Our staff members need to know they are valued and understood. We
understand that good communication between employees and the shop manager is crucial
to all of them working productively. We hope to reinforce positive behavior, so any
opportunity to converse and provide positive feedback will be welcome.
3.18 – Dismissal Policies
Our dismissal policies will be based on several factors. Negative behaviors and actions
during work hours, such as assault and battery, dishonesty, drug and alcohol use, lateness,
theft, etc. will not be tolerated in our company.

70. 69
Other broader terms, such as breach of company policy or problematic conduct will receive
different types of warnings, given the nature of the problem. At first, a verbal warning will
suffice. If the employee continues causing problems with the other employees or within the
premises, three written warnings will be handed. The third being the final one,
communicating termination of employment.

71. 70
CHAPTER 5: Legal
Structure
5.1 – Social Object
5.2 – Business Model

72. 71
5.1 – Social Object
We offer a highly nutritious and tasty snack that combines the exotic recipes of Turkey and
the premium ingredients from Spain for very affordable prices!
5.2 – Business Model
The business model consists on the production and commercialization of a very traditional
and popular Turkish recipe of bread. The name of this product is Simit, which is a circular
bread encrusted in sesame seeds. Simits can (and will) be customized with ingredients from
both Turkish and Spanish culinary culture.
Product and Services:
In this part, it is mandatory to specify and list all the products and services the company is
describing in the value proposition. In this case, it is focused only on Simits:
• Simits: Circular bread encrusted in sesame seeds.
Extra Products:
• Beverages
• Extra ingredients for customization.
Gain Creators:
In the Canvas Model, for our Simit case, consumers only have to buy and (if willing)
customize our product with the variety of ingredients we will offer.

73. 72
Our product is also a highly nutritious and tasty, of high quality, and an affordable
alternative to the traditional meal.
Pain Relievers:
Describes how the product creates value and eliminates negative emotions, undesired costs,
and situations that can risk costumer’s experience. In our case, the customer will consume a
nutritious and very tasty product at an affordable price.
Customer Jobs:
Related to the needs of the customers, our customers will:
• Adventure into different styles of fusion cuisine (Turkish and Spanish,
initially).
• Consider Simits as an option for a quick, healthy, and affordable meal.
Customer Gains:
In customer gains, it is necessary to consider all those benefits that the customer is going to
receive by eating a one of our products. We consider the following benefits are gained:
• Obtaining high value and high quality food for a low cost.
• Tasty and Nutritious.
• The possibility of customizing their Simits with the products they desire.
Customer Pains:
For customer pains, it is necessary to consider the elements that can negatively affect our
product, causing low satisfaction or no satisfaction at all. Due to the usability and
specificity of the product, there are two important elements to consider as customer pains:
• Breaking the culinary barrier in Spain.
• Association of our product with Kebabs.
 Simit as a Unique Product
• New product in Madrid, Spain.
• First mover advantage.
• The clients will be able to customize their Simits with a variety of
international and Spanish ingredients. Adaptable.
• Affordable, nutritious, tasty, and innovative.

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 Why in Spain? – Comparison with other countries
COUNTRY ADVANTAGES DISADVANTAGES
SPAIN
- New Product
- Easily Adaptable to
any eating habits.
- Acceptable in the
Spanish eating habits.
- Cheap
- Tasty and Nutritious.
- Realistic expansion
possibilities
- Turkish people willing
to invest in bakery
products in Europe.
- Advertisement of the
product.
- Make the Spanish
market know and try
the Simit.
COLOMBIA
- New Product
- Cheap
- Tasty and Nutritious.
- Not easy to merge with
the Colombian eating
habits.
- Bread is not a regular
consumption product.
- Other products (arepas)
preferred over bread.
GUATEMALA
- New Product
- Cheap
- Adaptable.
- Tasty and Nutritious.
- Consumption habits.
- Intense competition.
- Other products (maize
tortilla) preferred over
bread.
TURKEY
- People know it and like
it.
- Part of the traditional
Turkish diet
- Competition.
- Traditional product, not
innovative.
- Barriers of entry by
other franchises.

75. 74
 Expansion Projection
Based on the information found on bread (and other bakery products) consumption,
industry growth, business opportunities, etc. we have concluded that Madrid is the ideal
city to open our shop, due to:
- Acceptance of international cuisine.
- Large potential market, computed by local and international individuals.
- Familiarization of the environment.
- High bread consumption.
- Eating habits.
- Living lifestyle.
- Important touristic destination.
Our preliminary studies show that Andalucía, Catalonia, and Valencia are other
communities with presented high bread consumption, large potential markets, and
important touristic destinations. These are important factors that motivate our decision to
enter these communities in the future.

76. 75
 Value Chain
 Suppliers
The suppliers of the raw materials necessary to produce and create our Simits and
customized options are: flour, sesame seeds, oil, eggs, ham, cheese, etc. For these type of
suppliers, we are going to use a contract of no adhesion, as it is the most appropriate for us.
Also, all parties will be able to negotiate the terms that are more favorable for their
interests.
Suppliers of beverages: sodas, coffee, natural juices, beer, and tea. For these types of
suppliers, contract of adhesion appear to be the most appropriate, taking into account that
we are going to negotiate with companies that have standard prices.
 Product Development
Given that we are going to be producing fresh food products, we will start by describing the
steps that are required, starting from the licenses and permits required by the company (that
sells food products) to selling our products to the final consumer.
Suppliers
Product
Development
Marketing
and sales
Distribution Consumption

77. 76
 Licenses and Permits
If the SME or entrepreneur opts for the traditional way of starting a commercial activity in
Spain23
, certain licenses and permits are required to serve food to the public. Aside from the
Economic Activity License previously described, the following licenses are required:
 Authorization for food handling and sale of prepared meals for consumption on site.
(Ordenanza de Comercio Minorista de la Alimentación)
 Certificate of Urban Compatibility.
 Environmental License.
 Planning Permits24, etc
The premises must oblige with the requisites provided by the Sanitary Inspection Agency
(Registro General Sanitario de Empresas Alimentarias y Alimentos - RGSEAA). If the
premises are designed to have a seating area, the fire brigade must be contacted, in order to
establish the seating capacity, and, in case of any emergency, establish an evacuation route.
These licenses and permits must be placed in open view, preferably behind the till.
Once the licenses and permits are obtained, the following Laws, Regulations, Directives,
Loyal Decrees, and Collective Agreements will be respected:
 Reglamento (CE) n° 178/2002 del Parlamento Europeo y del Consejo, de 28 de
enero de 2002, por el que se establecen los principios y los requisitos generales de la
legislación alimentaria, se crea la Autoridad Europea de Seguridad Alimentaria y se
fijan procedimientos relativos a la seguridad alimentaria.
 Directiva 2001/95/CE del Parlamento Europeo y del Consejo, de 3 de diciembre de
2001, relativa a la seguridad general de los productos.
 Directiva 2001/95/CE del Parlamento Europeo y del Consejo, de 3 de diciembre de
2001, relativa a la seguridad general de los productos.
 Reglamento nº 852/2004 del Parlamento Europeo y del Consejo, de 29 de abril de
2004, relativo a la higiene de los productos alimenticios. Este Reglamento deroga la
Directiva 93/43/CEE del Consejo, de 14 de junio de 1993, relativa a la higiene de
los productos alimenticios.
 Real Decreto 1801/2003, de 26 de Diciembre de 2003, sobre seguridad general de
los productos. Transpone la Directiva 2001/95/CE del Parlamento Europeo y del
Consejo, de 3 de diciembre de 2001.
23
Statement of Responsibility is still not a common practice in Spain.
24
Only applicable if the premises require structural changes.

78. 77
 Ley 11/2001, de 5 de julio, por la que se crea la Agencia de seguridad Alimentaria. •
Real Decreto 709/2002, de 19 de julio, por el que se aprueba el Estatuto de la
Agencia Española de Seguridad Alimentaria.
 Real Decreto 2207/1995, de 28 de Diciembre de 1995, por el que se establece las
normas de higiene relativas a los productos alimenticios. A través de este Decreto se
transpone la Directiva 93/43/CEE, de 14 de junio de 1993, relativa a la higiene de
los productos alimenticios.
 Real Decreto 202/2000, de 11 de Febrero de 2000, por el que se establecen las
normas relativas a los manipuladores de alimentos.
 Real Decreto 3484/2000, de 29 de diciembre, por el que se establecen las normas de
higiene para la elaboración, distribución y comercio de comidas preparadas.
 Real Decreto 1334/1999, de 31 de julio, por el que se aprueba la norma general de
etiquetado, presentación y publicidad de los productos alimenticios.
 Real Decreto 145/1997, de 31 de enero, por el que se aprueba la lista positiva de
aditivos distintos de colorantes y edulcorantes para su uso en la elaboración de
productos alimenticios, así como sus condiciones de utilización.
 Ley 7/1996, de 15 de enero, de Ordenación del Comercio Minorista.
 Ley 31/1995, de 8 de noviembre, de Prevención de Riesgos Laborales.
 Packaging and Labelling
Packaging and Labelling must meet the standards required by the following decrees:
- Real Decreto 1334/1999, de 31 de Julio de 1999, por el que se aprueba la Norma
General de Etiquetado, Presentación y Publicidad de los Productos Alimenticios.
Transpone la Directiva 2000/13/CE del Parlamento Europeo y del Consejo, de 20 de
marzo de 2000.
- Real Decreto 930/1992, de 17 de Julio de 1992, por el que se aprueba la norma de
etiquetado sobre propiedades nutritivas de los productos alimenticios. Transpone la
Directiva 90/496/CEE del Consejo, de 24 de septiembre de 1990.

79. 78
 Employee Contracts
Our employee contracts will be of undefined time limits. (contratos de tiempo indefinido
ordinario), which is a type of contract that is arranged without establishing time limits on
the provision of services, in terms of the duration of the contract. Upon signing the contract,
employees will acquire the status of permanent full-time workers.
If the contract is signed for more than one year, the party wishing to terminate the contract
shall notify the other party a minimum of 15 days prior. Considering the cause of the
termination of the contract, the employee will or will not have the right for compensation.
In case of dismissal, the employee will have the right of compensation according to the
“Real Decreto Ley 3/2012”.
 Commercial Lease
Based on the Titles I and IV of the “Ley de Arrendamientos Urbanos” (Urban Leasing), any
agreements reached and deemed convenient can be signed as long as they are not violating
any law.
 Marketing and Sales
The contract we will use to hire marketing experts will not be long-term, mainly because
we are going to use the Turkish Embassy´s Commercial Counselor and other online
marketing strategies.
Advertising with flyers, free tastings, fairs, etc. we will hire a company using a temporary
contract (can go from one week, or a full month depending on the success of the
campaigns). “Contratos de Obra” or “Contratos de Servicio Determinado” are the most
fitting.25
Using mass media (radio, local newspapers, billboards, etc.) should be another option for
us. We are going to make an agreement with a communication agency for the better and
more regular use of these options.
25
http://www.empleo.gob.es/es/informacion/contratos/contenidos/obraoserv.html

80. 79
 Distribution
The distribution of the Simit will be done by the employees of the Simit shop in the
facilities and for this matter is necessary to make a contract with the employees in order to
determine their functions, responsibilities, benefits, salary etc. In this regard the contract
will be an “Indefinite Contract” this type of contracts Are presumed held indefinitely and
full time, unless proven otherwise stating their temporary nature or character of the part-
time services in case of non-observance of the written form where required.26
 Insurance
One of our priorities for our startup business is to cover all the possible risks due to external
factors such as environment, weather, a third party etc. For that matter we will need to
protect our business, employees and finances with a variety of insurance policies.
Coverage for property damage
- Fire and other damage
- Water damage to the insured property
- Troubleshooting and repair of pipelines
- Breaks: Windows, windows, mirrors, signs and windows
- Sinks and fixed sanitary equipment
Theft Coverage
- Theft and damage from this cause
- Cash and checks
- Goods carried by the insured employees and customers inside the property
- Replacing keys and locks
Suffered internal damage machinery, appliances and electronic equipment
- Internal damage suffered by machinery, appliances and electronic equipment
Personal Injury
- Personal injury suffered by the owner or holder of the trade and its employees
(Death, Permanent Disability, Permanent Total Disability, etc.).
26
Ministerio del empleo y seguridad social,
http://www.empleo.gob.es/es/informacion/contratos/contenidos/indefinido.htm

81. 80
Transportation
- This insurance has to be in consideration in case we decide to acquire a vehicle for
the company or in case we begging to deliver the simits, to protect our merchandise,
employees and the other people that may be involve in case of an accident.
 Partners and Contributions
The founding members of the society are going to be composed by four partners: Eren
Kongu, who is going to have the majority capital and is going to work in the company,
and three capitalist partners.
 Eren Kongu, founding member and worker of the company. Resident of Madrid,
where the company is going to be located, and where it will establish the
administrative headquarters.
- Contribution to capital: €45.000
 Rafael Gonzalez, capitalist partner for the company. Resident of Madrid.
- Contribution to capital: €15.000
 Pamela Gutierrez, capitalist partner of the company. Resident of Madrid
- Contribution to capital: €12.500
 Daniela Uribe, capitalist partner of the company. Resident of Madrid
- Contribution to capital: €12.500
The initial capital is going to be of €85.000, higher than the minimum required €60.000.

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 Distribution of shares will be as follows:
 Legislation
The specific legislation to elaborate the bakery products, we found in the Decree 496/2010,
de 30 de April, by which is approve the quality rule of confectionery, bakery, cakes and
pastries products. (B.O.E. 14.05.2010).
This decree refers to the security of food regulation in the European Union, applicable to
the sector. The decree also regulates the additives (preservatives, dyes, sweeteners...), the
labeling, and the advertising of this product
Other laws applicable to the type of establishment are:
- Decree 3484/2000 of December 29th
which establishes the hygiene rules for the
production, distribution and trade of food prepared.
- Decree 1334/1999, of July 31st
, for which the rule is approved for general labeling,
presentation and advertising of food products.
- Decree 145/1997, of January 31st
, by which is approved the list for positive
additives other than colors and sweeteners to be use in the food processing, and
their conditions of use.
- Law 7/1996 of January 15th
on Regulation of Retail Trade.
- Law 31/1995 of November 8th
on Prevention of Occupational Risks.
- Collective agreement in the sector of the bakery, confectionery, pastries and trade of
the same province.
Own capital societies laws also apply to the company as:
53%
17%
15%
15%
Eren Kongu Rafael Gonzalez Pamela Gutierrez Daniela Uribe

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- Decree 1777/2004 of July 30th
, approving the corporate income tax bylaw.
- Legislative Decree 1/2010 of July 2nd
, by which is approved the revised text of the
Companies Act.
- Decree 1514/2007 of November 16th
, approving the General Accounting plan.
 Legal Structure
Given that our initial investment will exceed more than €3.010 and less than €120.202, and
the numbers of capitalistic partners are 4; required to form a “Sociedad Limitada”, this is
the legal structure we have selected.
Moreover, as we have mentioned in our SWOT analysis, the concept of the business allows
us (if successful) to begin franchising our brand “Simit Shop”. The “Sociedad Limitada” is
flexible on develop new business activities without modifying the social status of the
company.
During the first years, and with only one shop (sales point), our company will be
considered an SME.
The following information was retrieved from the government website named Invest in
Spain, website URL: www.investinspain.com.
In order to incorporate an SL, there are requirements as to the minimum share capital,
although in this case the minimum amount is 3,010.00€, this must be fully paid by
subscribers upon incorporation. The capital share is not divided into shares but into
"quotas" (participations), the main difference being that quotas are not securities as such.
Quotas are subject to restrictions on transfer and are not represented in certificates. An SRL
cannot be publicly quoted and cannot issue debentures.
An SL is typically used by businesses with smaller shareholdings. The rules and procedures
for operating this type of company (such as shareholders' decisions and management
through the board of directors) are generally more flexible than those applicable to
“Sociedades Anónimas”.
Legal formalities to incorporate an S.L.:
The new corporation in Spain will have to appoint an individual with a Spanish national
identity card number as its representative. If the individual is not Spanish, he or she will
have to apply for an alien identification number (NIE) as a first step.