M Garcia Mod2 Assign2
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1) The document discusses starting a home baking business called Home Baked Goods, Inc. that will offer high quality baked goods at affordable prices as consumers change spending habits due to the recession. 2) A SWOT analysis is presented which identifies strengths like high quality products and cost advantages, as well as opportunities in the market. 3) Competition in the bread and baked goods market is analyzed, with 56 sellers in the area and 4 puff pastry sellers currently accounting for 21.1% of the total market share.
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- 4. Due to the global economic recession, consumers are supposed to change their habits. People will stop to visit expensive restaurants, but food will remain a basic necessity for them. Our home business company will be able to offer high quality products at affordable prices. (Bannister, A., 2008, May 14). Products will be available in 30 days. Profits will begin to flow within the next 30, 60 days. The complete market penetration is supposed to take place within the next 12, 24 months.
- 5. SWOT Analysis ( SWOT, 2009) Higher management capability Products high quality Cost advantages Favorable access to distribution lines Good production control Good quality control Good inventory control Able to operate under budget More flexible than big businesses
- 6. Weaknesses SWOT Analysis ( SWOT, 2009) Opportunities Threats
- 11. PERCEPTUAL MAP High Quality Low Quality Low Price High Price Home Baked Goods, Inc. (HBG)