Question

The Authentic Baking Taste: The Baker Corner, an authentic taste behind every success

With a strong influence from his French origins and culture, Aly Salama utilized his entrepreneurial spirit and founded The Baker Corner baking shop in 1960 in Egypt. Aly developed a special baking recipe that earned his shop a reputation as being one of the premium bakeries. Since the beginning, The Baking Corner has been a family-run business. Aly Salama’s three sons are currently managing the company; through the transition between generations, the company has aimed to deliver a premium product that is consistent and meets customer standards. Everything from the recipes being virtually unchanged to the layout and colors of the shops needed to be identical to ensure success. Every detail of the place is designed to reflect traditions and authenticity describing The Baking Corner’s as an experience that allows customers to step back in time with a handcrafted product. As customers enter the shop, The Baking Corner’s employees play a special role by their famous storytelling activities; every employee is trained to tell different stories about the bakery making and famous recipes in two to three minutes so that customers get entertained and get more knowledgeable about the brand’s identity and core values. The new generation expanded the product range to include freshly baked cakes, pastries, homemade desserts, freshly baked breads and sandwiches. Industry observers point to several aspects of the Baking Corner’s experience that make it the first choice for young adults and families seeking to get the best quality of freshly baked products at convenient prices; they want genuine home-made recipes made with high-quality ingredients, superior value, fun-filled atmosphere, warm, comfy décor, and quick, friendly service. The company’s famous slogan “The authentic Baking Taste” says it all.  

Over the years, the business expanded to be one of Cairo’s best baking services. The main headquarter is now located in 10th of Ramadan city; the three brothers managed to invest in the new location and build a new factory to become one of the main ready-made bakery suppliers to major supermarkets and grocery shops. Moreover, they continued the family’s legacy by keeping the Baker Corner shops as one of Cairo’s premium bakeries destinations: there are currently seven bakery shops around town, in addition to a new shop in Alexandria with additional plans to expand. With each new store came the difficult task of maintaining the original experience for new, prospective, and loyal customers. To ensure customer satisfaction at the new locations, the management emphasizes the critical nature of replicating every aspect of the original idea.  

In light of the current strong competition with famous bakery and pastry shops, the three brothers have decided to take their family business at a different level. Their strategy aimed at becoming one of the leading providers of frozen goods presenting a new ready to bake range offering ready-made pies, rolls, puff pastry doughs and other new freshly made and frozen goods to be stocked and ready to use within only 15 minutes. They remain committed at presenting their products with their authentic recipes offering the best quality; they consider this promise as a duty that helps protect and build the brand. Accordingly, they hired and trained the new staff to work on their production and distribution plan. They aim to supply their new frozen products to different supermarkets and grocery shops as well as to target other cafes and restaurants and sell in bigger volume.

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Throughout the years, The Baking Corner has strived to deliver a promise to customers by staying true to the original product. Yet the company has a tough road ahead: maintain the superior performance of its old bakery shops and at the same time focus on the new expansion project. Everything from the recipes to décor of the stores need to be identical to ensure success in every new store; enthusiastic workers must be found. The owners are also concerned on how to sustain such growth in light of the global economic challenges that prevail due to the pandemic situation. What is the most appropriate strategy for this growth given the current economic condition? Not an easy task…

Case Questions

1. Explain whether The Baker Corner is working B2B and/or B2C, and why. (2 points) 2. Describe The Baker Corner’s Company target segment using evidence from the case. (3 points)

3. Outline the role of business in society according to your understanding of the course and the case. (5 points)

4. Mention the different departments that might be available in The Baker Company and explain the role of each department. (5 points)

5. Describe the challenges that might the new generation in maintaining the company growth. Please suggest from your point of view your recommendations to them. (5 points)

Answer 1

Answer 1) The Baker Corner is working in both B2B and B2C , because in the starting of the bakery they used to serve the consumers directly coming to there shop fulfilling the B2C category work however owing to the changes and bringing frozen food in there servable products which were send to further supermarkets and groceries as well as restaurants and cafes fulfilling B2C working also

Answer 2) THERE TARGET SEGMENT WERE :

• Working class
• Families
• Students (young adults)

Here this possible as of the ambience provided by them good quality, nice decor, along with fun loving atmosphere in the bakery along with story telling and entertainment is a part that can seek interest of hound adults and families.

The frozen range also covered the busy and is perfect fit for people working with busy schedule ,along with the goodwill they gained over years this diversification can be big step to cover the working class people also

Answer 3) Business's role in society :

1. Genuine products - The products that they make for the society is pure and genuine in regards to quality , show casing the culture or when it comes to keeping the things raw or showing the actual origin of the bakery to people
2. Changing with time - It will cover from expanding to different areas and also diversifying to frozen food also as per needs of society
3. No compromise in quality - Over time from ambience to qualtity to experience it has never compromised though they had to rise the workforce and do training at the same time to serve the society
4. Customer loving experience - The need to every customer which makes them loyal is there experience which was made perfect to make people loyal to them , from storytelling to the decor everything was for entertainment of customer
5. Serve to all - Society's biggest role is to serve all the groups of society and by providing fresh to frozen food it cater to all age groups

Answer 4) Departments:

1. Baking department - the main work of baking the products are done here , from all types by using the special recipe
2. Storing department - in order to store the groceries and also one could be for frozen products also
3. Hireing and Training department - As the people who will be employed there qualifications along with the training of them to become a fit for the place is one
4. Redistribution department - If expanding and bringing nearby retailers as another source to sale your products it's required
5. Sales department - people engaged in the sales covering from advertising also people at counter or serving

Answer 5) New challenges :

1. Sales promotion - with rising Competition in market how to increase sales is a big problem that is ultimate source of revenue
2. To give identical experience - if taking in pandemic also than those personal touch that goes with the product to consumer how to keep it
3. Where to expand - As they have expanded over geographical areas ,how to maintain them is one thing and need of more expansion is another
4. How to retain customers - loyal customers do come but with taking pandemic picture in mind , giving the home quality recipe makes them feel at home and quality justification
5. Getting good human capital - to produce same quality with more quantity now with expansion requires effecienct human capital and finding them is a task

Recommendation -

• Keeping pandemic in mind , bringing in or welcoming online means of orders can help to rise the sales
• As another common medium is , company can have application ,via which people can customize also and order also
• Showcase the hygiene with product delivery and sanitation steps adopted
• With supply chains at halt and less people at work , offers can be given or credit option for big order if comes
• Train the workers who work at bakery or does delivery to give best possible experience that can be via providing note of gratitude that there customers are still ordering, specially giving small sachet of sanitizer etc

Kindly please rate the answer and do feel free to ask in case of any doubt