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Cake World Assignment

Cake World Assignment

 Cake World Assignment

Executive summary:


Cake World would focus on selling attractive cakes, puddings and confectionery items across the local residents of London. The report would involve evaluation of the online cake shop business plan which would focus on sticking to a lean business model of selling cakes on the internet. Key description of the report highlights the online business model which Cake world would stick in attracting the local audience to place orders on cakes for their special occasions such as birthday, wedding anniversary and other events. The business opportunity showcases the state of increased spending power across the local residents of London and also in determining the best alternative method to operate without an outlet and delivering cakes directly to the customers. The marketing strategy for Cake world has been proposed on the online marketing context and plenty of offline marketing interventions are also offered on. The nature of business operations would initiate from the production, packaging and delivery of the cakes to the customer residence at free of cost. Assessment of the technological requirement showcases the importance of owning multiple computers and access to software such as customer relationship management for Cake world. Human resource strategy focus on sticking to the strategic context of human resource where in individual key performance indicators and key result areas have been listed to enhance the productivity of the employees. The financial projections are being made on the basis of essential funds in purchasing the machinery and the resource to launch the online cake shop successfully. The outcome of the report thus offer clarity over the proposed business plan of starting an online business which will focus on selling cakes to the local residents of London by means of using an online E commerce platform.

Business description:

 Demand for attractive cakes has been in place across different age groups of people in and around London. The nature of baking and confectionery business lies on the niche of attracting huge number of customers there by turning as a potential celebration partner. Proposed business plan for Cake world focus on attracting the local population of London to make them buy cakes across different time lines with the help of online E commerce shop. The nature of products that would be sold at Cake world will be a combination of fresh cream cakes, dry cakes, fantasy cakes and printed cakes. There are multiple events across which Cake world would sell the products such as wedding events, birthday cakes, celebration cakes, cupcakes and corporate events. The business would take in to account the task of opening up a direct outlet and the use of internet selling is highly proposed as a part of the business plan. The shift to the lean business model is a result of increased overhead expenses which might occur as a result of operating in direct outlets. Hence the unique selling proposition of Cake world would aim at offering the cake delivered at the residence free of cost and also reducing the wastage which might occur as a result of baking and displaying them in the selling counters. Cake world would focus on distinctive customer segments that will be acting as the base for reaping in more revenue for the company. Online customers, Event management companies, churches, wedding groups and corporates are some of the most important customer base whom Cake world would be targeting at. The business plan is planned taking in to consideration the least amount of investment being needed and in yielding a higher return on the investment without operating on the outlet based traditional business model.

Business opportunities:

Business opportunities reflect the outcome of the individual interest of the entrepreneur over a product or service and in ways it would match with the requirement of the customers. Hence the integration of passion and skills with that of the needs of the customers forms the crux behind the formation of Cake world. In stimulating the selling of products to the customers and getting paid Cake world would be focusing on offering customers the credit of conducting business over the internet. At present the local community of London population has been subjected to the increased state of spending power and access to the customer of different age groups further nurture the scope for Cake world. Cake world focus on serving the niche market of online customers by means of offering extensive range of cake products to the customers where in the primary objectives would be to:


·         Offering increased state of trust and confidence through online E commerce cake shop


·         Offering quality and delicious cakes to the customers with valued added services such as free delivery of cakes to the customer residence.


·         To make the visually lucrative cakes as well as cupcakes available to customers of all ages there by grabbing the loyalty of entire family.


Quality as well as the free delivery services forms the unique selling proposition behind the business strategy of Cake world. Cake world would be offering the customer free delivery for the cakes that are not lesser than 1kilo and the delivery radius must be in and around 25 kilo meters from the production unit of Cake world. Quality component of Cake world is multiplied by the use of top quality ingredients which will never be compensated in order to grab the trust of customers Taste buds.


Thus the business opportunities for Cake world across the corporate, families, churches and social gathering is in abundance which showcases the high propensity of business lucrativeness in place for Cake world.

Marketing strategy:


Marketing strategy is of sheer importance for the proposed business plan of Cake world, it is evident that Cake world does not operate with an outlet across London to reduce the operational costs (Belanger, 2009). Hence online marketing campaigns would aim at registering the domain in the name of Cake world using an E commerce platform and the selling process would aim at creating a strong search engine optimization which would be used to spread across the consumer segments with the help of social networking sites (Bryce, 2009). Hence Cake world would focus on publishing the official page across Facebook, twitter and other local communities where in the local community of London would access at frequent intervals.


One of the most unique marketing strategies to be adopted at Cake world is to make the menu of cakes available across the net cafes, medical shops and other outlets with whom the local population of Cake world would interact with (Fowell, 2009). Thus the offline marketing strategy of offering variable pay for the referrers for the cake is a crucial idea and this in turn would pay of Cake world in gaining regular source of selling cakes to the local community of London.

Tie up with the event management companies would be yet another crucial intervention for Cake world as this would focus on getting repeated orders from wedding groups. Churches form yet another source of Cake world where in repeat orders are being expected across several occasions in the Christian community (Kim, 2009).

 Corporate culture are highly encouraging the need for celebrating birthdays which has to be used as the primary marketing strategy by Cake world. By means of getting in to a strong tie up with the corporates Cake world will be able to attract the small and medium scale enterprise there by ensuring customer satisfaction by offering timely delivery of service to the customers. Hence yet another major source of marketing would be in focusing at the corporates in and around London (Dahringer, 2010).

 Word of mouth marketing is being targeted as the most important source of marketing; Cake world would make use of the customer relationship management software in order to track in customers who have been placing regular orders to Cake world. Loyalty cards and reward programs

are most traditional and recommendation course of marketing activity for Cake world (Cakim, 2011).

Business Operations:

As stated earlier Cake world would be operating on a lean business model which would focus on delivering the cakes free of cost to the residence of the customers. The value chain management of Cake world initiates from the process of attracting the visitors on the online forum there by grabbing in more number of orders over the internet. Each time when an order is being placed on the internet the orders gets diverted to the marketing as well as the production unit of Cake world. Most important variables captured from the customer at this juncture include the selection of appropriate flavour, quantity, delivery date and time, and address of the customers. When such details reaches the marketing executive the follow up takes place with the production unit and then the delivery process gets initiated. On confirmation of the order the customer would get an intimation of the delivery date and time which is being agreed upon. Hence the logistics process forms the crux of the business operation in which the transit to the customer place must be ensuring proper delivery of cake to the customers. Business operations of Cake world are purely driven by the lean business model where in information plays a vital role and proper communication with the customers will focus on gaining more trust and confidence. Thus right from the procurement of the raw materials to that of delivering the product to the customers at most emphasize is being offered to the capture of information on the entire flow of information.


Taking a different view from the traditional cake shops Cake world is focusing on attracting the customers on the online platform which emphasize more importance of technology. To state in explicitly technology would be the most important source of competitive advantage for the firm and support from the E commerce platform and its back end process if of sheer importance. On assessing the technological requirements Cake world must be making use of computer for billing and marketing purpose (Dahringer, 2010). Internet connectivity is the primary soul of business for Cake world and hence the server in which the website of Cake world is loaded has to be more efficient and effective (Fowell, 2009).

 Development of the E commerce website will be carried over with the help of Magento – an e commerce based software which will be forming the outlet of the firm. The back end process of magneto would focus on showcasing the products to the customers and also in tracking the overall sales on a daily basis (Ratnasingham, 2009). Integration of the website with that of the social networking pages would be of sheer importance as it is essential in catching up a viral network of the existing customers who would be able to influence their close networks (Kim, 2009).


(Diamond, 2011) Customer relationship management software of Cake world will be of sheer importance as this will focus on capturing the order from the customers and then communicating to the production unit and finally in gaining response from the customers with regards to the quality of cakes (Esen, 2011).

Training and development has to be offered to the human resource who would execute the entire business operations of Cake world in a timely manner. The marketing executive, the production manager and the delivery boys altogether form the most important component of the business process and they will be constantly using the software to upload the details and tracking of the order.

HR strategy:

 Human resource strategy of Cake world focus on gaining access to the human resources across the marketing, production and delivery attributes. Hr strategy of Cake world will be to project a minimum of human resource that would be essential in executing the proposed business plan.

 Marketing executives are of at most importance as they represent the brand image of Cake world to a greater extent. Production executives in form of chef must exert a strong knowledge and skills on making fancy cakes. Total number of human resource in the production department is 2 in number and the delivery person would be taking care of the transit between the production units to that of the customer delivery place. (Fowell, 2009)

 As far as the human resource practices are concerned the employees of Cake world are less in number and hence management by objective is proposed as the best strategy which will influence the culture of Cake world to a greater extent on gaining ownership at work.

Financial Considerations:

 Financial projections are of sheer importance as they lay the foundation for the business plan in arriving at the most approximate financial needs. Financial projections will take in to account the total amount of money that will be essential in executing this plan in a timely manner. As the proposed business plan is high on the online marketing context the sourcing of funds is being done amongst the partners and no access is being gained across the angel investors or external investors.



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