8. Following on from Question 7, analyse the reports you developed against the planned objectives and identify where changes can be made to improve performance.

Create short report to include:

• Whether current performance is in line with the planned objectives
• What issues there may be
• How performance may be improved.

Attach your completed report to your workbook.

QUESTION 7 ANSWER:

Key Aspect 1: Marketing Strategy

Executive Summary: The marketing strategy is a critical component of any business plan as it helps in identifying and reaching the target audience. In this report, we will evaluate the effectiveness of the marketing strategy for the start-up cake shop.

Main Body: The main body of the report will include an analysis of the marketing strategy used by the cake shop, including the target audience, channels used for promotion, and the messaging used. We will also evaluate the return on investment for the marketing spend and the overall effectiveness of the strategy.

Findings: Based on our analysis, we have found that the cake shop's marketing strategy is focused on social media platforms and word-of-mouth referrals. While this approach has helped the business gain some traction, it may not be sufficient for sustained growth. The messaging used in the marketing campaigns also needs to be improved to highlight the unique selling points of the cake shop.

Recommendations: We recommend that the cake shop should diversify its marketing channels and explore other options such as email marketing, paid search, and local advertising. The messaging used should focus on the quality and unique features of the cakes, such as the use of organic ingredients, unique flavors, and custom designs.

Key Aspect 2: Financial Plan

Executive Summary: The financial plan is a critical component of any business plan, as it helps in identifying the financial resources required for starting and running the business. In this report, we will evaluate the financial plan for the start-up cake shop.

Main Body: The main body of the report will include an analysis of the financial projections provided in the business plan, including the revenue, expenses, and cash flow projections. We will also evaluate the financial assumptions used in the projections, such as the pricing strategy, sales volume, and cost of goods sold.

Findings: Based on our analysis, we have found that the financial projections provided in the business plan are based on reasonable assumptions. However, the plan may not have factored in unexpected expenses or changes in market conditions, which can impact the business's financial performance.

Recommendations: We recommend that the cake shop should develop a contingency plan to address unexpected expenses and changes in market conditions. This plan should include a buffer for unexpected expenses, such as equipment repairs or replacement, as well as a strategy for adjusting prices or products to adapt to changes in market demand. Additionally, the cake shop should consider seeking additional funding sources, such as loans or grants, to support growth opportunities.