Compile a swot analysis for Betty’s business. Quote from the scenario below
“Betty worked at a a bakery of a large supermarket in Arconpark for twelve years. Three years ago she resigned and started her own enterprise, Jankies’s Bakery, in Vanderbijlpark. The enterprise is located in a small building near the taxi rank. Her product range consists mostly of commuters and people who are working In the immediate vicinity of the enterprise.
Betty’s product became well-known in the area. Local shops and businesses started to order bread and pastry from her. They encouraged her to include products such as homemade sandwiches, “votkoeks” and confectionery in her product range and suggested that she consider catering for small functions in the area. Betty did that on a trial basis and it was such a success that she started to do it on a full time basis.
She appointed at least four new bakers and one sales lady to cope with the orders from the growing demand of the middle to higher-income local residents. Seven to eight moderate batches of bakery and pastry products are prepared during the day to ensure freshly baked goods are always available.
Competition in the local area is somewhat sparse and does not provide the level of quality and customer service as jankie’s bakery. Most competitors in the area buy their cakes and pastries from suppliers and do not have their own baking facilities giving jankie’s bakery a good competitive advantage as their products are freshly baked on a daily basis.”
1.2 Below are the business environments that Betty’s business operations under:
1 government
2. Technological forces
3 economy
4 suppliers
Explain how the above business environment affect Betty’s business.
1. Government: The government plays a role in regulating the bakery industry and ensuring compliance with health and safety standards. Betty's business must adhere to these regulations to maintain its operations and reputation. Additionally, government policies and regulations related to taxes, licenses, and permits can impact the profitability and sustainability of the business.
2. Technological forces: Technological advancements can have both positive and negative impacts on Betty's business. On one hand, technological innovation in baking equipment and processes can improve efficiency and productivity. Betty can leverage technology to streamline her operations and enhance the quality of her products. On the other hand, rapid technological changes may require investments in new equipment or training for staff in order to remain competitive and relevant in the market.
3. Economy: The state of the economy can significantly impact consumer behavior and spending patterns. During economic downturns, consumers may cut back on discretionary spending, which can affect the demand for Betty's bakery products. Additionally, fluctuations in inflation, interest rates, and exchange rates can influence the cost of raw materials and ingredients, impacting the profitability of the business.
4. Suppliers: Betty relies on suppliers for raw materials, ingredients, and packaging materials. The availability, reliability, and cost of these suppliers can impact the overall operations and profitability of the business. If suppliers experience disruptions, such as shortages or increased prices, it may affect Betty's ability to produce her products or maintain competitive prices. Having reliable and responsive suppliers is crucial for the smooth functioning of the business.