Mike Glaze Park Cakes
Understanding the Forces for Change in an Organisation
* Park cakes are a company producing premium cakes and desserts for supply to the major multiples. It consists of two sites Oldham site producing high end speciality cakes and confectionaries and Bolton bakery producing high end market cakes and mid range cakes.
* This project is covering the Bolton site which is a medium sized site within a semi built up area consisting of a mix of housing and local small businesses. The site is around 10 acres and has good access and egress and good transport links to major motorways. Having had moderate investment over the past few years the site ...view middle of the document...
* The introduction of the minimum wage was seen as a threat, as the major multiples expect price reductions from the supply chain, the increases in the minimum wage and the new legislation on agency pay has meant the manufactures footing the increase and lowering profit margins.
* Government health warnings were also seen as a threat to our business as we supply food produce with high calorific value, with healthy eating and fitness high on the political agenda.
* Slow economic growth has a major negative effect on our business as consumer confidence is low due to job threats and uncertainty, luxury foodstuffs are the first to be hit this has the added effect of company uncertainty and less ability to secure loans for capital expenditure and investment in the business.
* Low exchange rates have a negative effects on our business and pose major threats, as a majority of our ingredients are sourced in Europe and our prices are fixed with the supermarkets at the start of the financial year, a 1% drop in the exchange rate can have a massive impact on profit margin.(if we were to trade in Europe the opposite could be said.)
* Health and wellbeing is high on everyone’s agenda and new attitudes to healthy eating and diet is seen as a negative effect on our industry.
* Changes in education towards additives and what is good for us have changed again this is seen as having a negative effect.
* Automated processes have positive effects on the business through reduced labour and higher efficiency economical and...