Importance Of Corporate Governance And Funding Sources For Business Expansion

Corporate Governance Principles

Bread contains numerous vitamins, including Thiamin(vitamin B1) and Niacin(vitamin B3) which is essential for releasing energy from food. Wheat Flour consist really high amount of iron.  This is very significant for red blood cell formation. Moreover, it is highly important for brain function.

As mentioned above hereby I am going to describe about whole meal or whole wheat bread. This is made of partly or entirely with whole wheat flour. It is also known as brown bread.

Nutritional Value

Calories	74 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
grams of Protein	2.9
grams of Carbohydrate	15.1
grams of Fat	0.7
grams of Fibre	1.2
grams of Alcohol	0

History

The first bread slice was instigate in the year 1928 in America, but in Australia the bread loaf was  introduced with the arise of supermarket. Moreover, in 1958 Australia’s first bread brand was launched and it was named as Tip-Top brand.

Furthermore, Victorian railways had started a new bakery in early 1920. Monthly they baked almost thousand of loaves of brown bread and they also wrapped bread hygienically . On the other hand, individual bakers offered sliced breads for consumers  and the Sunshine bread company of Newtown prepared earliest bread sliced in Sydney.

Bakery Industry

According to the given reference , in the past year approximately 11 million of Australian’s spend around $89.6 million on the purchase of bread in the week period. Around 8.9 million customers bought bread  from supermarket and near about 3 million buyers purchased bread from the bakery stores and the convenience stores.

The given bar chart reveals that, the amount of bread sold by total supermarket is 67.7%. Hereby Coles and Woolworth  supply almost equal proportion of breads that is near about 26%. Moreover, there is little bit difference in between IGA/Foodland and ALDI that ALDI  sales 6.0% and IGA supply 8.4%. On the other hand, the delivery of breads from bread shops is quite less as compared to supermarkets which is only 25.5% in which Brumby’s bakery supply very least amount of breads that is only 2% as contrast to Baker Delight which sold almost 13%.

Competitive Rivalry

In the bakery industry, there are plethora of brands are in trend like Tip -Top, Helga’s, Wonder White etc. Additionally, There are only top four companies which owns 11.7% of the business .Most of the percentage of the business has taken by small bakeries. Nowadays business grows on the price and quality of the product and also relationships with suppliers. In addition to it, the high percentage of those brands  mainly posses by two companies .

• George Weston:  Abbott’s  Village Bakery ,Gold Max ,Tip-Top(9Grain,  Sun blest, the one)
• Goodman Fielder: Buttercup, country Life, Helga’s, Lawson’s,  Mighty Soft,  Mole berg

Substitutes

There are variety of substitutes present for the bakery products. Like Breakfast cereals ,rice and potatoes. Bakeries mostly depend on the prices and convenience of customer to keep them handle to substitute or to bake what they require at home. Moreover  the profitability of industry mostly affects  when similar basic requirement of  any  new product or service meets in different way.

Barriers Entry

The entry of barriers in any industry make their business difficult to grow and operate in an market . The entrance of barriers in bakery industry is quite least. If threat of new entry is low then products can be easily differentiated , brands names are popular and  switching of  drivers rates are high. Furthermore , the spending on bakery industry is extremely less as contrast to other industries as well as there is not much necessity  to investigate and enlargement   in order to utilize this business . In addition , to get familiar with each other product is not much complicated(Charlie, 2010).

Suppliers

The main fact is that due to existence  of  muscular  provider  in the industry  results into the concession  profit margins in any industry. Moreover the trader enhance  competition within   the industry by increasing charges of the goods as well as the decline  the quality of product and services. It   outcomes  in the reduction of profitability in an industry in which companies are unable to recapture cost and expand  their own rates. The Bargaining power of  traders is one of the part of five forces that deduce the strength of competition in various industries. Additionally, the main fact in bakery industry is that the of products like flour and wheat is not much vary which regulate the bargaining power of suppliers (Cammiechenglimin,2008). 

Consumers

The major buyers of the industry goods are supermarkets, grocery stores, hotel chain , convenience stores  which gain much of industry profit as contrast to small bakeries. Buyers have power  to command  for cheaper rates and discounts .In addition, drivers also  enlarge contention in an industry by compelling down prices, and bargaining for upgrade  quality and multifarious facilities. Moreover, there are mainly three types of consumers that are daily customers, infrequent customers and rare customers.

	Reported bread intake per day	Reported bread intake per week	Reported not eating bread
Daily consumers	99.3%	0.6%	0.1%
Infrequent consumers	53.1%	41.9%	5.0%
Rare consumers	5.4%	4.1%	91.0%

Opportunities:

There are unlimited opportunities available for us in bakery industry. Daily, higher population spends money on breads ,cakes  and snacks and to offer them perfection in every product is duty of seller. Moreover, lots of persons are interested to know how to bake; to fulfill their this goal there are multifarious government approved bakery institute are established .

Threats:

The ultimatum are like that there is already number of competitors are present that we are engaging with lots of bakeries in Australia as well as same business is also run by many entrepreneurs within similar location. Obviously , everyone competing with each other in order to win in market which is major threat .

Conclusion

The bakery report conclude that bread production and consumption has keep increasing over the past few years. As we can sum up that it is an emerging industry. It is easy to get into the business but hard to keep the quality and relationship with suppliers, which is a key threat to the business. Different types of breads due to their nutritional values are the main artificial food of the 70% of the population. so we can say that the customers are the main drivers of the industry.

References

1. https://www.ibisworld.com.au/industry-trends/market-research-reports/manufacturing/food-product/bakery-product-manufacturing.html
2. https://www.weightlossresources.co.uk/calories-in-food/bakery-products/brown-bread.htm
3. https://australianfoodtimeline.com.au/sliced-and-packaged-bread/
4. https://www.roymorgan.com/findings/7198-slicing-up-australias-bread-market-201703281034
5. https://www.marsdd.com/mars-library/bargaining-power-of-suppliers-porters-five-forces/
6. https://strategiccfo.com/threat-of-new-entrants-one-of-porters-five-forces/

7.https://www.google.com.au/search?q=www.abs.gov.aubreadconsumption&oq=www.abs.gov.aubreadconsumption&aqs=chrome..69i57.15367j0j4&sourceid=chrome&ie=UTF-8

https://www.coursehero.com/file/p343l7h/Threat-of-new-entrants-As-there-are-relatively-low-barriers-to-entry-in-bakery/

https://www.profitableventure.com/bakery-business-plan-swot-analysis/

https://bizfluent.com/about-5234246-bakery-industry-analysis.html