Question:
Write an essay on “Four Leaves Bakery, Singapore”.
The current essay revolves around trends of management. Management is a technique of designing and maintaining in which people work together in a group to achieve the desired goals and objectives. In addition, management is consisting of some activities directed to an organization’s resources with a purpose of accomplishing organizational goals and objectives in an efficient manner. To remain competitive in the market, it is important for the marketers to develop the marketing strategies as frequent as possible and to watch on the changing market trends. The essay starts with an overview of the organization Four Leaves Bakery, Singapore. Likewise, the essay carries forward with the external and competitive analysis of the organization. A set of recommendations has also been provided to tackle the potential marketing challenges. At the end of the essay, a comprehensive conclusion has been provided, which summarizes the whole essay.
Since 1981, Four Leaves Bakery has been running its operation in Singapore. The company has currently become one of the leading chain bakeries in Singapore. Besides, the bakery operation, the organization is also involved in the operation of St.Leaven, Peck, and Splash n Decker. Further, the organization deals with two different subsidiaries in Kuala Lumpur and Penaga of Malaysia. The aim of the Four Leaves Bakery is to provide innovative as well as quality bakery products to its customers (Four Leaves Pte Ltd 2016). Thus, the major policy of the organization is to bring in Japanese technical experts to develop new products and maintain stringent quality in service.
Figure 1: Logo of the organization
In order to bring in more customers and increase sales, the organization is focused on developing the quality of products. Each of the products is handmade by its bakers using healthy and finest ingredients. The best quality of products and aggressive marketing strategies of Four Leaves Bakery has put the competitors in the apprehension of remaining competitive in the market.
Political and legal
The political environment in Singapore is supportive. The organization gains this opportunity to develop their business. In addition, from different trade laws and relevant judicial system, the marketers receive backup from the government bodies. The organization Four Leaves Bakery being based in Singapore is an advantage since there is stability in the political environment of the country. As mentioned by Dobbs (2014), a business becomes healthy and competitive when it is situated in the politically stable country, where there is less number of riots, strikes, and political unrest. It is observed that Singapore has several trade laws that are protecting the business. Four Leaves Bakery takes the advantages of such stable political environment and develops its business considering the standard of living
Figure 2: PESTLE analysis of the organization
Economical
Downturn in the economy is affecting the business. . However, in the future, because of the annual inflation as well as increased costs of goods, it is prudent for Four Leaves Bakery predicts its demands in the coming years. On the other side, the SARS outbreak in the year 2003 hit the global economy, which has resulted in poor retails sales. The retails sales in Singapore have taken a dip up to 45% since the outbreak because of the considerable decline in the local demand.
Socio-cultural Factors
Four Leaves is in the rush of developing a high quality of products considering the standard of living of people in Singapore. They need to add organic ingredients in products. The socio-cultural factors indicate that the organizations in the confectionary industry tend to maintain the business protocol, which directly influences the business. The people of Singapore has a high standard of living; this, particular factor influences the operation of Four Leaves Bakery.
Technological Factors
The developed technology plays an important role in increasing production. In addition, cost of production is less. The increasing development of technology is highly beneficial for the companies in the field of marketing and production (Hacklin & Wallnöfer, 2012). With the help of developed technology, Four Leaves Bakery produces the products within a short time.
Environmental
The business environment in Singapore is quite healthy. There are multiple opportunities for expanding the existing business. In addition, it has also been identified that “The Ministry of Environmental and Anti-Pollution Unit” works on maintain the air quality and environmental issues. Thus, Four Leaves has to follow the environmental policies as it has the factories where the products are manufactured. Moreover, the country has lost about 30% of its mangrove area. Thus, the government has put regulations on trading that should be strictly followed by the organizations. Further, Four Leaves Bakery opts to communicate and be inter-dependent largely on the environment. This indicates the Four Leaves Bakery is much determined to achieve prosperity; thus, they could benefit from the opportunity and resources. In addition, it is also observed that the judicial systems of Singapore have become one of the fairest in Asia. Thus, the business in Singapore receives government’s assistances.
Threats of new entrants-LOW
Threats of Substitute products-HIGH
Bargaining power of suppliers- HIGH
Bargaining power of customer-HIGH
Competitive forces-MEDIUM
Many organizations get into the market each year with a purpose of gaining profits. However, Four Leaves Bakery has been around for decades in Singapore and boasts a long history of high quality products. This helps the organization to gain a substantial share of the market. From the items of bread to fruits based cakes, it has the array of similar products that could compete directly or indirectly with Four Leaves Bakery. Especially, several organizations in the confectionary industry in Asia usually provide similar types of products like Four Leaves. As mentioned by Saren et al. (2012), the bargaining power of suppliers is one of the important factors that need to be considered in confection industry since these are a major strength of the organization. Furthermore, Four Leaves also presents useful guidance to their suppliers in knowing how to work more effectively to minimize the redundant costs. Therefore, the organization cares for their suppliers that in return pay them off in the type of high quality product. However, despite many substitute products and the existences of competitors; the customers of Four Leaves Bakery have an influential choice, however, due to the high quality of products, the company created an increased influence among the customers. In addition, the competitors such as Bread Talk provide varieties of products.
Figure 3: Porter’s Five Forces analysis
Nevertheless, it is necessary for the organization to identify the power of the customers and their requirements. Thus, the customers can be satisfied with the quality of products and services. The organization Four Leaves Bakery is known to have a strong position in the confectionary industry; however, some of the major competitors exist in the industry like Bread Talk. The competitors such as Bread Talk are competing to get one each other and ignore the kind of competition. However, the level of competition is still there (Morgan, 2012). In this context, Hinkelmann & Kempthorne (2012) added that the competition is aggressive in the confectionary industry; this is the advantages for the consumers.
The synthesis of literature review helps to learn that organization Four Leaves has acquired a competitive position in the market. With its strategy of providing a high quality of products and services, Four Leaves Bakery throws a stringent challenge to towards its competitors. However, certain issues such as high bargaining power of customers and suppliers, the threat of substitute products have been identified from the external environmental analysis. Thus, in order to gain competitive advantage from the market and acquire the position in the market, it is necessary for the organization to implement some strategies such as Porter’s generics strategy. There have been certain aspects that are associated with Porter’s generic strategy. These aspects are such as Cost leadership, Differentiation, and Focus strategy.
Figure 4: Porter’s Generic Strategy
Cost leadership- While applying cost leadership strategy, the organization needs to become the low cost producer in the confectionary industry. By applying vertical integration, Four Leaves Bakery may consider buying over dairy and wheat farms to help keep the cost of raw materials as low as possible. Hence, this strategy is making it possible for the consumer to benefit, while still generating profit.
Differentiation strategy- A differentiation strategy is usually called for a product or service that has a unique characteristic that is valued by the consumers. Thus, to deal with the high bargaining power of customers in the market, Four Leaves Bakery needs to pay attention to other contributing factors besides its products. In terms of retail shop decoration, product packaging, service staff attitude, this will all contribute to overall customer satisfaction. Four Leaves Bakery may consider a bright green clover motif prominently displayed at all their retail outlets, matching clover packaging for their cakes and buns, and conduct giveaway activities on weekends. For example, clover balloons given free with purchase to customers with children.
Focus strategy- Niche market/Focus strategy – Creating a niche market for the elites, customizing wedding cakes or cakes for special occasions like baby showers, graduation. For example, edible gold flakes as one of the ingredients to be used to glamorize any customized cake design.
Mobile app recommendation- by creating a personalized mobile app for four leaves bakery, this enables customers to instantly chat with the customer service staff on their customized order, encourage customer loyalty by creating a points and loyalty rewards system.
5. Conclusion
On the completion of the essay, it can be mentioned that organization Four Leaves Bakery has held a competitive position in the market due its long operation on the planet. The external analysis helps to learn that Four Leaves has gained a significant position in the market due to some factors like stable political environment, government’s association, trade laws, technological advancement. However, the organization is dealing with some issues such as aggressive strategies of competitors, the downturn in the economy. No doubt, Four Leaves has built itself as the largest organization today, nevertheless, if Four Leaves were to keep on with its conventional business techniques, it may not be long before it may be surpassed. The organization should constantly innovate and keep a close on the market trends and its competitors to remain competitive in the market. In addition, the organization needs to pay more attention to their environmental strategies. It is comprehensible for an organization as large as Four Leaves, it is probably difficult to meet and satisfy the requirements of stakeholders because of the large scale of shipping and production of materials involved. The continuous influence of economical and environmental factors could damage the operation of the organization in the existing market. On the other side, the competitor Bread Talk is a threat for the company. The prices of Bread Talk’s products are quite similar to Four Leave Bakery. Thus, the organization needs to focus on these particular aspects for an effective operation in future.
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