The biggest challenge faced by the breadtalk is the intense competition that it had to face in the market. The bakery industry is a famous industry and therefore it has to face is the competition with the other successful bakery groups that exist in the market. There is huge competition of the breadtalk in the market. Therefore, this is the biggest challenge of the company. In order to survive in the market the company has to revise the price of the products and they have to for better suppliers (Worley, Williams and Lawler 2016). The other weakness of the company is facing low barriers towards the entry in the food and bakery industry. The food and bakery industry include innumerable barriers like the dealing with the best suppliers, the manufacturers should produce best quality product in order to survive in the market. Apart from this the other challenges that the company needs to face is the shortage of the supply of the products. There are sometimes chances of getting exposed to the changes in the sentiment of the customers as their preferences might change from time to time (Szczepa?ska-Woszczyna and Kurowska-Pysz 2016). The other challenge is the failure to procure a good location for any bakery outlets and restaurants. The location needs to be in a good and a popular place (Quinn et al. 2014). The bakery items are preferred by those people who usually have a high lifestyle. This might increase the costing of the company. The company might have to find posh area for opening an outlet which might lead to the increase of the costing which indirectly might increase the price of the products. The two most important suppliers of the company are the Hangzhon Guangqi and Femac. They had a problem with these suppliers which added up to the biggest challenge. It was a big challenge for them to find suppliers who were equally good than the previous ones. The challenge for them was to get into a good partnership with some quality suppliers (Garcia 2016).
There were many implications of the challenges that were faced by the company. The company had to go through a huge amount of loss. The expenditure increased than the income therefore the company had to suffer a major loss. The company was unable to increase their product all of a sudden and it had to therefore go through major loss because of this (Schaveling and Bryan 2017). Apart from this due to the intense competition the company had to face tough competition in the market. Breadtalk had to lose many patent customers as they preferred other bakery shops that were the competitors of Bredtalk. The company had to change the suppliers which had an adverse effect. It was time-consuming for the company to find other suppliers who produced goods of the same quality (Doherty and Norton 2013). The company had a lot of struggle in finding good partners who would help in adding up the revenue of the company. The company had to face the difficulty in building a long term relationship with new suppliers. There were many layers of suppliers from big to small, the company faced a problem in maintain a relationship with them. (Nguyen 2015). The small suppliers could not afford the high range products of the company therefore; the best products were unable to reach to some amount of customers in some region. The cost of the products was sometimes difficult to afford for some suppliers which affected the revenue of the company. This was the biggest implication that was there in the company. However towards the end of the report certain recommendations have been made that could turn to be useful for the company (Andrade Coelho 2014).
The above discussion shows that Breadtalk is an international bakery, which is seeking to expand into new product segment but lacks the required knowledge and resources. Moreover, the company faces stiff competition from the local bread manufacturers offering bakery products at lower prices. The company is facing the issue of acquiring the suppliers in market. The company faced a difficulty in choosing the suppliers and maintaining a long term relationship with them. There are following recommendation that has been made in order to solve the problem of acquiring the suppliers and making a good partnership with them.
- The first and foremost step that needs to be done is to document the needs of the suppliers. The suppliers are of high-level and of snall-level. The company must understand the requirements of all kinds of suppliers. This would enhance many suppliers to work with them. This would also enable them to meet with the potential suppliers. At the end of the suppliers would ensure the increase of revenue of the company.
- The payment must be always made on time. Payment should be made on time. The suppliers must be called and in case of any delay they should inform the suppliers. They should play game with the money of the suppliers. This would hamper the relationship between the suppliers and the company which can have a negative impact.
- The third most important step is to personalize the relationship with the suppliers. This would include a visit to the office of the suppliers and to keep a constant conversation with the suppliers. The company must invite them to break bread invite them to the office parties and picnics and any other similar social gathering.
- The suppliers must be kept informed of what is going on in the company. They must be informed of the changes in the key personal of the company. They should be informed about the special offers of the company and about the promotional offers and similar offers. The suppliers sometimes offer good customers therefore a good relationship should be maintained with them.
These are the recommendations that the company must follow in order to acquire good suppliers and increase their revenue in the market.
Andrade Coelho, M., 2014. Application of an approach to the innovation management in micro and small enterprises. Independent Journal of Management & Production, 5(3).
Doherty, L. and Norton, A., 2013. Making and measuring “good” HR practice in an SME: the case of a Yorkshire bakery. Employee Relations, 36(2), pp.128-147.
Garcia, R.C., 2016. Integrating Community Services and Research: A Livelihood Needs Assessment at the Countryside of the Philippines. Online Submission.
Nguyen, Q., 2015. Business Plan For Online Bakery Concept.
Quinn, B., McKitterick, L., McAdam, R. and Dunn, A., 2014. Barriers to micro food enterprise engagement in business support programmes. The International Journal of Entrepreneurship and Innovation, 15(3), pp.205-217.
Schaveling, J. and Bryan, B., 2017. The Value Creation Model in Action. In Making Better Decisions Using Systems Thinking (pp. 51-57). Palgrave Macmillan, Cham.
Szczepa?ska-Woszczyna, K. and Kurowska-Pysz, J., 2016. Sustainable business development through leadership in SMEs. Ekonomia i Zarzadzanie, 8(3), pp.57-69.
Worley, C.G., Williams, T. and Lawler, E.E., 2016. Creating Management Processes Built For Change. MIT Sloan Management Review, 58(1), p.77.