Genesis

Charles Allen, David Mc Mullen, Brendan Church

 Introduction





 We are employed as consultants on a graduate program by

Genesis. The task at hand is to re-evaluate the strategic

plans of Genesis due to the current economic downturn. We

have been asked to complete a presentation including the

following:



 Evaluation of Genesis mission and vision.



 A summary of Genesis influential stakeholders.



 The current strengths and weaknesses of Genesis.



 And the external environment that Genesis operate in.

 Mission of Genesis





What is a mission statement ?

 According to BTEC national in business (2005),an

organisation‟s mission is the “overriding purpose in line

with the values or expectations of stakeholders”

 Mission is the definition of what an organisation is, the

reason for its existence.



 Genesis mission statement is the following:

 “GenesIS Crafty – we like to be different creating breads by

hand which are different. Different in taste and texture

using the best ingredients. It‟s not easy but our bakers

know its right. How

 crafty are you?” (Quigley, 2009)

 Evaluation of Genesis mission statements





From are evaluation of genesis mission we have identified these key

factors within:-



•the function of the organisation is immediately apparent.



•it informs all concerned on what Genesis are trying to achieve.



•they are not limiting themselves to one product which gives Genesis

room for

expansion.



•clear that they think highly of their staff.



•they are connecting on a personal level with the customers.



In our opinion Genesis do have a good mission statement because they

clearly set out why their company is in existence, however a main

criticism of it would be that they don‟t make it very aware what their

mission is and it was very difficult to find.

 Vision



Although genesis do not state a vision, we believe Genesis vision focuses on

their high quality and range of innovative breads.



Their intentions are to expand the business to level whereby customers can

recognise the Genesis brand name as a home bakery of choice in all major

independent shops and retailers within N. Ireland. They want to give an

impression to all customers that their products are the best and most

innovative within the bread industry, but also that their prices are affordable

for the customers must also enable Genesis to operate profitably.



There long term vision is to increase the size of their current market and

introduce themselves into the larger UK market which will give the

opportunity to work with larger variety of sectors focusing mainly on the

food to go market.

 Genesis



1. Survival – NPD, drive sales, differentiation, excellent service.

2. Profit Maximisation – cost reduction, continuous improvement, right price and profit

margins.

3. Care for the Environment – recycling, complies with relevant environmental

legislation.

4. Growth and diversification – continuous NPD, brand building, lead in design and

packaging, differentiation from competitors, new markets.

5. Staff Development – continuous, various managerial training courses, complete staff

involvement in developing the brand and products both internally and externally.

6. Corporate Image – Invest in Marketing, lead in packaging and design. Ensure all

sales people and company vehicles convey a positive image of the Genesis brand.

Premises and site reflect the quality and image of the brand.

7. Services to the community – sponsorship to various local sporting teams – Special

Olympics, generously supporting local schools and colleges in their activities.

Donations to local charities within Northern Ireland.

8. Producing high quality products and services – adhere to BRC standards in all areas

of the business. Manage the performance of their staff via Balanced Scorecards and

the Performance Management Programme.

9. Strategic intent

 Genesis objectives





Genesis objectives comprises of several different aspects:-



• Survival in new markets or ventures.

• Profit maximisation

• Care for the environment

• Growth and diversification

• Staff development

• Corporate image

• Services to the community

• Producing high quality products and services.

 Influential stakeholders





Stakeholders are a group of individuals who have an

interest in the activities of the organisation. This

normally comes in the form of customers,

employees, community, shareholders, suppliers

and lenders.

 Three types of stakeholders



 Internal

 Connected

 External

 Internal stakeholders





Internal stakeholders are the individuals which are part of the

organisation for example Managers and Employees.



The McErlain family which own Genesis are made up of 6 brothers, with

each of them having their own roles within the organisation spread out

over various departments.



The higher levelled managers is also made up of the six brothers plus

external professional individuals.



Within Genesis there are a number of different key individuals they

range from Senior management, middle management and the 130 skilled

staff who have operated with the organisation for a number of years.



It‟s the responsibility of the senior team to bring results and ensure that

Genesis continues to be a success.

 Current external stakeholders



There are two types of external stakeholders

this includes government who have a say on

how the organisation is run for example the

local councils in this case, Magherafelt local

council who would encourage the expansion of

Genesis to increase the employment in the

area and to improve the areas revenues.

The other external stakeholders are pressure

groups however Genesis are not affected by

them as many other companies would be.

 The power interest matrix









Government Employees







Box A Box B







Suppliers Customers

Bankers





Box C Box D

 Bread market





Sales of bread and morning goods rose to nearly £4

billion in 2008 in NI.

Consumption patterns are changing, daily consumption

of bread is steadily declining and the most prevalent

buyer type is Apathetic/Habitual, i.e. they lack interest

in different types of bread and always buy the same

brand.

The bread market is fuelled by NPD, both French bread

and specialty breads are more popular than they were

in 2007 but, influenced by the cost implications, people

are becoming less enthusiastic about organic bread

 Bread market

Any rolls 80

Soft bread rolls/baps 64

Crusty bread rolls 49

• Penetration of rolls is higher

Burger buns 27

than other morning goods, reflecting

their significant share of the morning

Any foreign recipe products 62 goods market.

Croissants 36

Bagels 27 • French-style pastries are

Danish pastries 24 increasingly being incorporated into

Pains au chocolat or other chocolate … 21 the British diet.

Sweet American muffins 20

Waffles 13

• Trends towards health have

Any other bakery snacks 79

driven innovation in morning goods,

Crumpets 52 with multi-seed croissants and high-

Doughnuts (iced/plain or jam) 40 bran bagels.

Scones 30

Pancakes 24 • The comfort factor is fuelling

English muffins 23 the trend for toasting products.

Iced buns/Chelsea buns 20



Any part-baked/bake-at-home products

• Men have a more indulgent

18

approach to morning goods.

Fruited products 34



0 50 100 %

 Bread market

I am willing to pay more for premium bread 41

I eat brown/wholemeal bread because it is • Health, rather than cost,

38 Health

healthier is the consumer‟s main

I make a conscious effort to eat less bread than

14 priority.

I used to



• Bread with natural

I buy whatever is on special offer 28

enhancements (nuts,

seeds and dried fruit) is

The brand I buy is not important to me 28 Branding preferred to the addition

Supermarket own-label bread is just as good as of functional ingredients.

branded bread

26



I always buy the same brand 18 • People want to be brand-

loyal but are easily

swayed by special offers

I prefer bread from in-store bakeries because it

25 Retail and supermarket own-

is fresher

label.



I have switched from branded to OL bread to

19

• What most defines the

save money cost-conscious consumer

I have cut down on the amount of premium Cost

bread I buy in order to save money

16 is a preference for extra-

thick slices.

I am buying more white bread to save money 11



0 5 10 15 20 25 30 35 40 45

 Physical Resources





Genesis currently has a factory located in Magherafelt

on the Aughrim Road. The factory is around 32,000 sq

feet.

There are currently a total of 120 employees working in

both factory and bakery. The bakery is situated inside

the Meadowlane shopping centre in Magherafelt town

centre.

Genesis sends a lorry to Dublin daily and from there the

stores throughout the ROI are serviced. In order to

service the stores throughout England a lorry travels

daily and from there distribution is split up as to

where it must be delivered

 Financial Resources

Key financials & Employees





31/10/2010 31/10/2009 31/10/2008 31/10/2007 31/10/2006 30/04/2005

th GBP th GBP th GBP th GBP th GBP th GBP

12 months 12 months 12 months 12 months 18 months 12 months

Uncons. Uncons. Uncons. Uncons. Uncons. Uncons.

Unqualified Unqualified Unqualified Unqualified Unqualified Unqualified

UK GAAP





Turnover 13,239 10,983

Profit (Loss) before Taxation 518 299 71 -322 116 248

Net Tangible Assets (Liab.) 1,542 1,670 1,752 1,904 2,327 2,664

Shareholders Funds 1,097 1,083 949 903 1,101 1,052

Profit Margin 3.91 2.72

Return on Shareholders Funds 47.22 27.61 7.48 -35.65 7.04 23.57

Return on Capital Employed 32.40 17.19 3.87 -16.11 3.18 8.89

Liquidity Ratio (x) 1.06 0.92 0.86 0.75 0.80 0.76

Gearing (%) 79.58 122.35 186.78 218.59 239.56 251.68

Number of Employees 130 120 125 148 167 169

 Human Resources





Genesis currently employee around 130 workers, they

train their employees extensively to ensure that they

have the breadth of knowledge required to work in a

Genesis bakery.

The baker‟s must be able to produce the innovative

products therefore Genesis finds it difficult to find and

employ bakers which have the skills that they require.

From when the employees begin working in Genesis

they are trained within the company to obtain specific

requirements needed to become one of Genesis‟ quality

bakers.

 Genesis research





In May 2010, Genesis became the 16th food and drink

company in Northern Ireland to successfully gain

Marks & Spencer supplier accreditation, launching a

brand new Irish Bakery range to the retailer‟s 38

stores throughout Ireland on 4th May, this in turn was

extended to Main Estate in August 2010.

Designed to complement Marks & Spencers‟ hugely

successful Irish breads and morning goods, the new

Irish Bakery products created for the retailer by

Genesis.

 Market Audit





Genesis also supply Sainsbury‟s UK with four of its own

lines, including Genesis Crafty Big Pancakes and

Genesis Crafty Double Butter & Sultana Scones.



In the Republic of Ireland, Genesis produce own label

scones and cakes for Superquinn and Musgrave Retail

Partners, who also carry a range of Genesis Crafty

products

 Market Audit





Genesis Crafty has also teamed up with Tesco in Britain

to launch an innovative Soda Bagel that offers a

contemporary approach to one of Ireland‟s traditional

and popular handmade breads.



The Soda Bagel, now on sale in over 400 Tesco stores in

Britain, is targeted at younger consumers and provides

a handcrafted alternative to existing bagels, pitta

pockets and tortilla wraps for „eating on the go‟ or

quick meals.

 Product Portfolio





Genesis produces a wide range of products, from bread to

scones and pancakes from looking at the statements

made by the six brothers on the Genesis bakery

website which is shown in the next slide.

“For us, baking is the perfect mix of creativity and

science. We use only the finest quality ingredients,

combined together with care and attention and then

baked in precisely the right heat for exactly the right

time.

 Product Portfolio

 Genesis awards





There are certain products within the range that have been

accredited with awards these awards are shown below:

Awards:

 Great Taste Awards 2008: Cranberry and Yoghurt Scones

awarded a Gold Star.

 Great Taste Awards 2009: Fifteen's Biscuit & Condensed

Milk Bake, Shortbread Iced Biscuit, SQ Date & Walnut

Speciality Bread and SQ Apricot & Raisin Speciality Bread

awarded one Gold Star each.

 Great Taste Awards 2010: Two Gold stars Butter and

Sultana Scones, one Gold star for Apricot and Raisin Bread.

 Inter value chain

 Core Competencies



The major core competencies within Genesis is their unique process

of creating their products. Genesis use innovative baking and

products to distinguish themselves from the rest of the competition.

This has helped Genesis break away from the traditional away of

baking and give them a competitive edge in a very difficult market.





Another core competency Genesis have is their methods of training

their employees. Genesis train their employees within the

organisation meaning they can train their employees the way they

see fit. This benefits Genesis as they can save money on training and

build up employees to the level of quality that Genesis demands.





Another core competency is the brand itself although this was not

always the case up to 1998 the bakery was called McErlains Home

Bakery, they then changed the brand name with help form Invest NI

to Genesis Breads of the World.

 PEST Analysis



This helps analyse what forces are at work within

the firm and what factors influence planning.

PEST stands for:



•Political



•Economical



•Socio-cultural



•Technology

 Political





Political factors are the actions of the Government

which may affect Genesis; this could happen through

legislation or changes in benefits. There are different

factors that can affect Genesis:-



•Benefit cuts



•Environmental legislation

 Economical





How the economy of the UK is performing will have a great

effect on each market, so as the UK economy is currently

going through a recession it will have a great affect on

consumer spending in terms of disposable incomes.



As the public will have less of a disposable income they will

not have as much money to spend on luxury items which

could have an effect on Genesis. When people have less of a

disposable income they may opt to purchase cheaper brand

in order to save money.

 Socio-cultural





The UK is said to have an aging population, this is due to the

makeup of the population compared to what it used to be.

Traditionally people used to marry young and have a lot of children

meaning large families but today this is different.

Now that people tend to get married later in life and have fewer

children means that there are more elderly people within the

population. This is shown in the diagram below

 Technology





In term of technology, Genesis does not take full advantage of

what is available to them. They do not take advantage as they do

not sell directly to customer from their website; they only sell

indirectly through the supermarkets who they supply such as:-



•Tesco



•Asda



•Sainsbury‟s.



Also as they hand make each of their product at Genesis they do

not take full advantage of the latest technology in term of

production compared some of their competitors who produce

their products by the batch.

 Porters 5 forces





For Genesis it’s extremely important that they analyse the external and

competitive environment. The competitive environment is the immediate

environment of Genesis. The competitive environment can be affected by

any actions Genesis take. Genesis should go through a certain procedure

by which they ensure that they know who their competitors are and any

problems that may arise from this.



Michael E Porter states that there are 3 different generic strategies an

organisation can undertake and they are:



•Differentiation



•Cost Leadership



•Focus

 Porters 5 forces





Michael E Porter states that there are 5 main forces that

can act upon a company. The 5 forces are:



•Power of suppliers



•The power of buyers



•The threat of substitutes



•The threat of entry



•Competitive rivalry or collaboration

•Power of suppliers





Power of suppliers explains how much power a supplier has over the buyer

or vice versa. If a supplier has more power over a buyer they have the

ability to bargain for whatever price they wish to offer their products for,

this has a positive affect on their profits but an adverse affect on the

buyers profits as they will have to offer more money to the supplier.



It is often the case that the buyer has the power over the supplier;

however the supplier could be more powerful if their brand has a very

good reputation and such companies are expected to sell it.



An example of this would be Coke. Most supermarkets and businesses are

expected to sell Coke; therefore Coca-Cola can sell their product at a price

which they see fit.

•The power of buyers

The power of buyers is basically the same as the power of suppliers except

instead of looking at the suppliers it will be based on the buyers. If a buyer has

more power than a supplier they will have the ability to bargain the materials

from the supplier to lower prices. There are different types of buyers; there are

independent retailers, wholesalers and multiples such as:-

• Tesco

•Asda

•Sainbury’s



The ratio of power differentiates between different buyers depending on size

and status; therefore multiples will have a greater level of power over an

independent retailer.

Overall in the bread market and selling on to buyers, the power again seems to

be with the buyers. There are only certain situations where the supplier will

have the power but again as stated before this only occurs depending on their

brand power, uniqueness of products and selling power. A good example of this

would be Kingsmill, they have a strong brand name and most consumers

expect shops to sell them therefore Kingsmill can hold their selling price which

suits them better.

•The threat of substitutes



The threat of substitutes is how easily your product could be

substituted for another similar product. In the breakfast

market it‟s extremely competitive and the products can be

easily substituted for another. The consumption of bread is

decreasing in the breakfast market and there is an increase in

cereal. Other products in the breakfast market which could be

substituted are:-



• fruit



•Yoghurt



•cooked breakfasts



•fast food breakfasts



•pancakes

•The threat of entry



Threat of entry is how hard or easy it is for an organisation to enter a

particular market. Some markets are more difficult to enter than others.

The norm is that if a market is very difficult to enter, then fewer companies

will wish to try and enter the market meaning more profits for the current

existing organisations within that difficult market. An example of a difficult

market to enter is the pharmaceutical drugs market.

It takes several years for an organisation to get there products passed and

tested and then sent into the market. This is very off putting for companies

as they don’t wish to wait that long before they can get their products sent

out into the drugs market.

Other factors which may be off putting to companies are:

•Capital Requirements Entry

•Potential Retaliation

•Legislation

•Differentiation

•Access to distribution

 Competitive rivalry or collaboration





Within any market there is a lot of competitive rivalry there is

Microsoft and Apple, Nike and Adidas and there is Xbox and

PS3.



No matter what company it is they will always have some one

who is a competitor and will try to rival them.



It is important for an organisation to try and distinguish

themselves from their competitors if they are to have any chance

of surviving in a very difficult economy where business is

extremely cut throat.

 Swot Analysis

 Strengths







•Family Business



•Premium Product





•Strong Supplier Links





•Skilled and dedicated workforce

 Weaknesses





•Lack of ranges



•Inefficient technology buying process



•Labour intensive process





•Lack of production space

 Opportunities



From looking at the financial figures of Genesis it is clear to see

that expansion is valid opportunity for them, they could improve

there position within the UK market and become more of a

presence in the bread market.



Within the UK market Genesis have a competitive advantage as

there is a demand for there new and innovative products and the

unique way in which they are produced.



In today's market place health is becoming a stronger factor in

what consumers purchase this also an opportunity for Genesis as

a lot of the ingredients that are used in their products are organic

this opens up new potential consumers and opportunities.

 Threats







• Recession



•Levels of food inflation





•Threat of entry





•Threat of substitutes

 References

Stakeholder Definition, 2011, Available at:

http://www.businessdictionary.com/definition/stakeholder.html [Accessed

29/09/2011]



Secondary Research definition, 2011, Available at:

http://www.entrepreneur.com/encyclopedia/term/82616.html [Accessed

06/11/2011]



Table ref page 6 keynote fame report [accessed 2011]

Awards reference, 2011, Available at: http://www.buynifood.com [Accessed

12/10/2011]



Mintel international group bread and morning goods



British Age Distribution Graph, 2011, Available at:

http://www.nationmaster.com/country/uk/Age_distribution [Accessed

01/12/2011]



http://www.tesco.com/groceries/product/search/default.aspx?searchBox=panca

kes&N=4294796231

http://www.superyachts.com/news/strand-craft-122:-the-superyacht-concept-

complete-with-supercar-681.htm