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Old established business and may struggle to change their ways and adapt to new products 

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Old established business and may struggle to change their ways and adapt to new products 

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Long Established Company

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dietary shifts eg. gluten intolerances, protein goals

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dietary shifts eg. gluten intolerances, protein goals

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Customers know the brand, and Halfpenny will have a loyal customer base.

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Large market share

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Strong Customer Base

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80% of market share in Keeland might highlight dependency in one area

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Customer preferences leaning away from normal loaves

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Carbon Neutral, eco-friendly practices, using more sustainable supplier (i.e farmers), Long term collaboration

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Carbon Neutral, eco-friendly practices, using more sustainable supplier (i.e farmers), Long term collaboration

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Only sell in one country

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competition from sellers with more diverse product ranges. artisan breads, speciality breads

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competition from sellers with more diverse product ranges. artisan breads, speciality breads

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No current innovation

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Functional structure - can be slow to adapt to changing market conditions

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Functional structure - can be slow to adapt to changing market conditions

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New product range - Cakes as possiblity, vegan product, dairy free

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New product range - Cakes as possiblity, vegan product, dairy free

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Strong market Knowledge of products

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Slightly behind on technological advances such as High-speed mixing

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inflation leading to price increases, challenges the affordability of products

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inflation leading to price increases, challenges the affordability of products

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Only a single supplier for their Yeast - what if supplier were to have a bad crop / increase their prices

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Very reliant on agricultural products so production is susceptible to harvest issues which are outside of Halfpennies control

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heavy reliance on supermarkets and power the retailers would have

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heavy reliance on supermarkets and power the retailers would have

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Awareness of customer wants and ability to innovate

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Will attract investors & customers as they are more likely to buy/invest in a product which is environmentally friendly - this will allow them to source cheaper financing & charge a higher price

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lacking in digital resources, eg. website, which customers are heavily reliant on these days

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lacking in digital resources, eg. website, which customers are heavily reliant on these days

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Clear functional structure

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Can't hold high inventory levels (perishable goods) dependent on suppliers for on time deliveries

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minimises risk

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Willingness to reinvest profits back into the business

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potential job losses if they don't keep up with innovation to maintain steady growth

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potential job losses if they don't keep up with innovation to maintain steady growth

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Bread can be considered a staple product. You could argue there will always be demand for it (although it is a changing demand, and customers want different variations of bread).

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HP have advanced tech in the production of their product, being able to produce more at a quicker and cheaper rate

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increasing amount of regulatory standards which is costly to the business

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increasing amount of regulatory standards which is costly to the business

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Taking opportunity in technology, incorporating AI, demand & forecasting 

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Taking opportunity in technology, incorporating AI, demand & forecasting 

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Has a good financial gearing ratio showing that they are not in high debt

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Integration of AI solutions or an ERP system that helps with stock ordering since their inventory is all perishable. This would help to reduce inventory holding costs and reduce wastage thus helping their sustainability targets

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ideas may have stayed quite rigid within the long-running family business

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ideas may have stayed quite rigid within the long-running family business

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very strong cash position & low working capital cycle

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very strong cash position & low working capital cycle

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Excess cash can be spent on marketing to promote products & increase revenue, or this can be invested into product development (e.g. expanding into artisan bread market segment)

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Awareness of threats and potential future challenges, they can pre-emptively react

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Production facility and distribution centre are located in close proximity to each other. Located in the centre of Keeland, which would be advantageous to deliver to all regions in Keeland.