Analysis
Company Name
Burr’s Bakery
Goals
1. To Provide Excellent Quality Products: The primary aim is to maintain high
standards in the quality of the bagels and other bakery items they produce. This
involves using quality ingredients, skilled preparation, and ensuring that each
product meets a set standard before it is sold.
2. Improve Net Profit: Another key goal is to enhance the profitability of the
business. This involves not only increasing revenue through sales growth but also
managing costs effectively to ensure that the profit margin improves over time.
3. Expand the Business: Burr’s Bakery aims to grow by opening more shops and
possibly extending their market reach beyond their current locations. This includes
scaling up production capabilities and possibly exploring new markets or product
lines.
Evidence of Goals Achieved
Based on the information provided, Burr's Bakery has faced mixed results in achieving its goals:
1. Provide Excellent Quality Products:
o Initially, the quality of products was high, a direct result of Owen's hands-on approach and
passion for baking. However, as the business expanded and management practices shifted
under Isaac's influence, the focus moved towards sales targets over product quality. This
change has led to increased customer complaints and higher wastage rates due to poor
quality, indicating that this goal is not being fully achieved in the later stages of expansion.
2. Improve Net Profit:
o Financial data shows an initial increase in sales revenue and net profit, with sales peaking
in 2019-20 at £2,555,000 and net profit at £255,000. However, by 2021-22, there was a
noticeable decline, with net profit dropping to £100,350. The financial trend suggests that
while there was early success in improving net profit, recent challenges have hindered this
goal, particularly as operational issues increased costs and affected sales negatively.
3. Expand the Business:
o Burr's Bakery successfully expanded from its original location in Chester to multiple shops
and a dedicated production unit, indicating substantial growth in terms of physical presence
and capacity. This suggests that the goal of business expansion has been achieved to some
extent. However, the rapid expansion also brought challenges in maintaining the quality
and operational efficiency, which could threaten long-term sustainability.
Overall, while Burr's Bakery has achieved its expansion goal, it has struggled to maintain product quality
and profitability in the face of rapid growth and management challenges. To realign with its original
goals, the business may need to refocus on quality and efficient operations while reconsidering some of
the expansion strategies or management practices that have been detrimental.
Stakeholder
Owen Burr: He is the founder and co-owner of Burr's Bakery. Owen is deeply involved in product
development and customer service.
Isaac: The venture capitalist who invested £500,000 for a 50% share in the business. Isaac handles the
recruitment, training, and management of staff.
Employees: This includes both the bakery staff and the shop staff, who are crucial for daily operations
and interacting with customers.
Customers: People who buy bagels and other products from Burr’s Bakery. Their satisfaction is vital
for the business's success.
Suppliers: Companies or individuals who provide ingredients and other goods needed for the bakery
to operate.
Local Community: The local community can affect and be affected by the bakery’s operations,
especially in terms of employment and local economic impact.
Analysis of Data 1
Summary
The data in Table 1 highlights a trend of decreasing customer satisfaction and increasing staff turnover
and wastage rates as Burr’s Bakery expanded. The initial small, tightly managed team that provided high-
quality products and service faced challenges as the business grew and management practices shifted
under Isaac’s influence, focusing more on sales and less on quality and employee well-being. This table
suggests a need for a strategic review and realignment towards the original values of quality and excellent
service to stabilize and improve the business performance.
Analysis of Data 2
Summary
The financial data in Table 2 shows that while Burr’s Bakery experienced impressive growth in both
revenue and profit initially, there are signs of financial strain by 2021-22. The decline in net profit, despite
only a moderate decrease in sales revenue, suggests increased costs and potential inefficiencies in the
business operations. These financial challenges align with the issues highlighted in Table 1, such as lower
customer satisfaction and higher wastage rates, underscoring the need for a strategic reassessment
focusing on quality control, staff management, and operational efficiency to restore profitability and
business health.
A3 Business culture
Issues
Focus on Sales Over Quality: The bakery used to care a lot about the quality of its bagels and
customer service. When Isaac joined, the focus changed to selling as much as possible and reducing costs,
which made the quality worse and customers less happy.
Employees are Not Involved: As the business culture changed, employees started feeling less
important. They noticed that the main goal was now to sell more, not to make good bagels or keep
customers happy.
Loss of Trust and Respect: When Owen was more involved, employees trusted him because he
worked closely with them and respected their work. After Isaac took over more control and focused
mostly on sales, this trust and respect went down, causing more staff to leave and more arguments at
work.
Solutions & Recommendation
Bring Back Focus on Quality:
Solution: Make sure everyone in the bakery understands that quality is most important. This
means teaching all staff more about making good bagels and how to serve customers well.
Get Employees More Involved:
Solution: Have regular meetings where employees can talk about what they think and give ideas.
Start a program to celebrate not just who sells the most, but also who does great work in making
bagels or helping customers.
Build Trust and Respect Again:
Solution: Train Isaac and other managers to lead in a way that makes employees feel valued and
included. They should learn to listen more and work together with the staff.
Management Theory
Total Quality Management (TQM) — This approach says that the business should always try to get
better, especially in making customers happy. By focusing on quality again, Burr's Bakery can work
towards long-term success.
Related Theory: Herzberg’s Two-Factor Theory — This theory says that people at work need good
reasons to feel satisfied with their jobs, like being recognized for good work. By doing this, the bakery
can make employees happier and more interested in their work.
Transformational Leadership — This style of leadership is about inspiring employees by showing a
clear and exciting future, caring for them, and helping them grow. By using this style, Isaac and Owen can
make the workplace better and get back the trust of their employees
B1 Management and leadership styles
B2 Management and leadership skills
Issues
Solutions & Recommendation
Management Theory
C1 Human resources (HR)
C2 Human resource planning
Issues
Solutions & Recommendation
Management Theory
D1 Motivation in the workplace
Issues
Solutions & Recommendation
Management Theory
D2 Techniques to meet skills requirements
D3 Training and development
D4 Performance appraisal
Issues
Solutions & Recommendation
Management Theory
E1 Managing change
Issues
Solutions & Recommendation
Management Theory
F Quality management
F1 Quality standards
F2 Developing a quality culture
F3 The techniques and tools of quality management
F4 The importance and benefits of quality management
Issues
Solutions & Recommendation
Management Theory
