Company Background/SWOT

Company Background/Situational Analysis

External Environment

– Since the demand for healthier products is growing (Morales, 2009), it is important that Beantown Bakery provides its customers with a variety of options to choose from. Demand will also grow and decline depending on the season. During the summer there will be a higher demand for iced products, while during the winter there will be a higher demand for hot products. The supply manager will be in charge of keeping track of the products that are in demand, and will make changes to the menu according to the observations. The ingredients for the products will be purchased at organic farms, since the items the bakery will be making are mostly organic.

– Coffee is currently in high demand by the American population so Beantown Bakery will also divide its attention to focus on providing its customers with delicious, yet healthy coffee.

– Keeping in mind that Beantown Bakery will be located in the heart of the financial district, customers such as CEOs of companies and presidents will influence the price of products. Beantown Bakery will keep its prices at an affordable level, but will also keep in mind that prices may be able to be a bit higher, due to the level of business surrounding them.

– Beantown Bakery does not require any high tech equipment. Basic machines such as a cash register, credit card machine, refrigerator, a coffee maker, a mixer, and an oven are used. When the business eventually expands, we will need more of each of these items in order to meet the needs of a larger customer base. Wi-Fi will also be available inside the bakery, so such equipment will be necessary. Vehicles to make deliveries will also be needed.

– Going green is a major theme in today’s society, and the company is highly influenced by this. Recyclable materials will be used for coffee cups and transporting items. Re-useable travel mugs are also sold at the location and discounts are offered when the recyclable mugs are used. Every day companies are innovating new ideas with new materials to use to be green, so these new ideas will affect the products that Beantown Bakery chooses to use. Customers will be encouraged, by the availability of recycling bins, to use proper recycling techniques.

Competitor Environment

– Starbucks is the largest coffeehouse company in the world that sells brewed coffee, espresso, lattes, coffee beans, sandwiches, pastries, and travel mugs; Starbucks also markets books and music. (Starbucks) A downfall that Starbucks has is many of their drinks are seasonal, unlike Beantown Bakery, which offers their drinks year-round. Starbucks’ prices also are very high.

– Panera is an established bakery-café that sells breads, sandwiches, soups, salads, and other bakery items. (Panera Bread) Panera has a loyal customer base, which will be the biggest challenge for Beantown Bakery, but they do not offer a variety of healthy options like Beantown Bakery does.

– Finagle a Bagel is a bagel shop that makes its 4 oz. bagels at its headquarters in Newton, MA. (Finagle a Bagel) Its bagel recipe is all-natural, without chemical dough conditioners and preservatives. (Finagle a Bagel) Unlike Beantown Bakery, Finagle a Bagel uses high gluten wheat flour, and the technique of flash freezing, which doesn’t ensure the freshest bagels like Beantown Bakery does.

– The strengths of our competitors are that they already have an established customer base, and they also have the funds to advertise their companies on a large scale. The weaknesses are that they don’t deliver so it is an inconvenience for companies to have to transport large orders.

Company Environment

– Beantown Bakery makes all of its products on site and provides customers with the option of coming into the store to purchase the products, or the option to have products delivered. Wi-Fi is available inside the store, and there is a sitting area, and a meeting room that can be rented out. The suppliers for our packaging materials will be companies that are focused on being green. Our food products will come from organic farms and businesses. Our strategy is to provide a convenience for businesses. Our potential strengths would be providing our customers with a comfortable and friendly experience. Our possible weaknesses would be lack of funds, which would limit our ability to use a variety of sources to advertise.

– Since Beantown Bakery is only in its seed stage, funds are limited. A customer base is still being established. Advertising is going to be limited because there are not a lot of funds to purchase large billboards or create commercials. Advertisement will include posters in the subway, and small advertisements in local newspapers.

– Through our marketing campaigns, Beantown Bakery will attract customers who are interested in using green recycling techniques, and also those who wish to practice a healthy lifestyle.

Competitive Analysis

– Our main competitors (Starbucks, Finagle a Bagel, Panera) may not be very impacted by our business, at first. We are a small business and our competitors are very large companies. As we expand, we might begin to pose a real threat, since our products are different from anything Starbucks, Finagle a Bagel or Panera has to offer.


– Product differentiation from our competitors.

– Distribution distinctions. We offer catering to businesses and homes.

– We are located in the Financial District, near many different businesses, giving us easy access to our target market.

– Beantown Bakery is associated with green measures. We intend for every aspect of our business to partake in conservancy measures.


– We have not yet established our brand name, or a customer base.

– We do not yet have any other locations besides the one in the Financial District.


– Ability to serve different groups. We attract a variety of consumers, which yields opportunities for larger profits.

– Opportunity for expansion of product lines. We offer a variety of products, from regular baked goods to those specially made (low-sugar, vegan, vegetarian, etc.).

– Potential for growth. We are a small business as of now, and this gives us the opportunity to expand into a chain in the future.


– If the economy continues in its current state, our prices may be considered too high and consumers may bypass healthy choices for less expensive ones.

– Lower prices of competitors. The quality of their products is not up to par to ours, but consumer choices are often driven by price and not quality.

– Cost of production. Our green measures give us a positive image, but they are costly. If these increase, it might pose a threat.

– We will adjust our marketing campaign accordingly to combat potential threats. Every company is subject to changing business cycles, but with the appropriate kind of services and high quality products, we hope to be able to survive, and maybe even prosper in such changing environments. Also, with an effective marketing campaign it is possible to show that we are, in fact, the best choice for consumers.


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