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Table of Content

Executive Summary……………………………………………………………………..3

Portfolio of Products – Value Proposition and Competitive Turnover, Costs…………..4

Legal Form and HR Plan………………………………………………………………..6

Key Financial elements………………………………………………………………….6



Reference List……………………………………………………………………………8

Improving Management Practices at Al Arz

Executive Summary

Al Arz Automatic Bakery is a Dubai-based bakery that functions as a small and medium enterprise (SME). The small business boasts of its professional experience. It strives to achieve the requirements of buyers, and gains pleasure in ensuring that buyers get high quality professional services in all its provisions (Al Arz Bakery 2020). Being committed to escalate the heights of the baking industry gives the group the confidence to meet its promises to consumers. Furthermore, the team is dedicated to upholding the highest level of integrity in all its dealings with potential, present, and past consumers, both with regard to safeguarding all personal data received in the process of service delivery, and the conventional commercial privacy and confidentiality (Al Arz Bakery 2020). The management emphasizes on ethics with particular emphasis on honesty and adequately acknowledging the sensitivity and duty of care needed, as well as stresses on professional conduct while handling all business operations (Al Arz Bakery 2020). The enacted management approaches play critical roles in making the firm competitive among its rivals but the small business would be more aggressive in the way it appeals to consumers and stamp its authority in the sector if the management considers other suitable strategies. Hence, the report is a proposal on how Al Arz may enhance certain areas of its operations and become more effective. It specifically informs on how the group can establish its value proposition, mitigate turnover issues, and set proper costs. The paper provides tips on how to create a legal form as well as a HR plan that steer organizational operations in the most effective manner. More fundamentally, the proposal provides information on what Al Arz may consider to improve its financial operations. Overall, the plan in viable and likely to make the bakery more competitive.

Portfolio of Products – Value Proposition and Competitive Turnover, Costs

Al Arz has a large portfolio of products but it can achieve impressive performance in this area by paying more attention to various key aspects. The bakery presently makes and sells products such as Arabic bread, pastries, manakeesh, Arabian and French sweets, and also provides a wide range of Arabian and Lebanese cuisines. However, the business should appreciate the fact that globalization increases how people move from one place to the other, and the possibilities for servicing clients from other nations and cultures are considerably high. Thus, exploring other food stuffs and bakery products presents a better chance for the group to attract more buyers. The bakery is in the right path to making and selling foods that appeal to buyers from diverse parts of the world because it presently makes and includes in its menu tortilla from Mexico, Chapati from Punjab province, India, shawarma and grills bread from Turkey, Panini bread from Italy, pita or circular bread from the Middle East, European bread, Saj bread associated with the Ottoman regime, and the Arab bread of Egypt. The product portfolio is impressive but the bakery could do better by venturing into American, African, Asian, and South American foodstuffs.

In addition to expanding its portfolio of products, the firm needs to pay considerable attention to its value proposition and find ways for minimizing turnover rates. An effective way to establish the business’ value proposition is to identify the consumer’s main problem as well as to identify all the gains the product or service offers. The management while developing the value proposition should elaborate what makes the benefits treasured and link the value to the consumers’ needs and problems (Carnalvho & Jonker 2015, p. 55). It is also important for the business to distinguish itself as the preferred provider of the product that meet specific values (Carnalvho & Jonker 2015, p. 55). Al Arz should center its value proposition to offering the finest quality and provisions to its buyers while distinguishing itself as an accessible and innovative firm (Carnalvho & Jonker 2015, p. 56). Similarly, the group should enact measures to address turnover rates that are a major concern in many business firms. For example, the management can create a work environment where every worker is free to give their views and where leaders perceive each employee as being key in fostering business practices. Offering timely and satisfying payment and offering an opportunity for employee growth and development through training may also help to reduce turnover rates. Therefore, paying adequate attention to building the business’ value proposition and taking measures to achieve competitive turnover will increase how Al Arz competes.

Embracing a suitable approach for setting costs is an important aspect that the management should regard as one that requires much focus. Whereas it is possible to choose from a variety of prising methods, Al Arz would be in a better position to generate profit from what it sells by deploying the cost plus pricing strategy. The pricising plan is the simplest technique of determining price, and entails the primary concept of doing business (Guilding et al. 2015, p. 14). The chief idea in this plan is to make a product, sell it for a higher price than what is used in the production process because of the value addition process. An advantage with the approach is that it does not require in-depth market research, but it is critical to consider that the method does not take into account competitor strategies and consumer demands (Guilding et al. 2015, p. 14). Besides, the approach is inefficient because it develops an organizational culture of isolationism and does not take into account consumers’ perception while determining prices. Thus, the group may also have to use the competitive based pricing strategy, which involves examining the prices that competitors set and then settling on rate or range that favors the business (Guilding et al. 2015, p. 17). Also known as strategic pricing, the technique, however, deprives the firm the autonomy to come a price of its liking and must depend on other operators in the sector to make pricing plans.

Legal Form and HR Plan

Al Arz should embrace a suitable legal form for the business to achieve a smooth flow of its operations. An effective legal form for this business is sole proprietorship whereby a single person owns and runs the business. Other than high liability, the owner has sole decisions over business practices and is easy to manage. In addition to settling on the most suitable legal form for the business, the SME should embrace a human resource planning (HRP). HRP is the relentless practice of systematic planning to attain maximum utilization of a business’s most valuable assets, mostly its quality workers (George 2019, p. 2). HR planning helps to achieve the best fit between workers and their work while avoiding workforce shortages. Effective HR planning requires the team to pay attention to four critical practices. They encompass analyzing the current labor supply, predicting labor demands, harmonizing forecasted labor demands with supply, and promoting organizational goals and objectives (George 2019, p. 4). Al Arz should pay considerable attention to this area because HR planning is an essential investment for any business as it permits it to maintain profitability and productivity.

Key Financial elements

Creating an effective marketing plan for a small business can appear challenging and confusing at first. Nevertheless, the process becomes easier once the group acquires relevant information and knows the various elements of a plan and how they fit into each other. Some of the main aspects to consider, include a profit and loss statement, operating income, net income, cash flow statement, balance sheet, sales projection, and business ratios (Osadchy et al. 2018, p. 343). All these elements presents different issues that would help the business to improve its financial practices.


The recommended ways for improving how the bakery performs its activities are viable and the management should consider implementing them. For example, expanding the brand portfolio increases the likelihood for attracting buyers from diverse backgrounds, which makes it possible to generate more revenue. On the other hand, developing HR practices presents a suitable opportunity improve how the workforce contributes towards the firm’s performance. Besides, being clear on the financial elements that impact on operations is equally essential in achieving effective business practices. Thus, the management should pay considerable attention to each of the presented elements.


Al Arz would record significant improvement in its practices if it works towards implementing some of the recommended measures in this report. Al Arz increases its chances for performing better by expanding its product portfolio, adopting the appropriate legal form and HR plan, and outlining the primary financial elements that require more attention. Nonetheless, disregarding these proposals could derail how the business strives to achieve its targets.

Reference List

Al Arz Bakery 2020, Al Arz Automatic Bakery. Available from: <> [Accessed January 16, 2022]

Carnalvho, J, & Jonker, J 2015, ‘Creating a balanced value proposition: Exploring the advanced business creation model’, The Journal of Applied Management & Entrepreneurship, vol. 20, no. 2, pp. 49-64. doi:10.9774/GLEAF.3709.2015.ap.00006

George, V 2019, ‘The role of human resource planning in the human resource network’, IJ CRT, vol. 5, no. 97, pp. 1-10.

Guilding, C, Drury, C, & Mike, T 2005, ‘An empirical investigation of the importance of cost-plus pricing’, Managerial Auditing Journal, vol. 20, no. 2, pp. 1-24. doi:10.1108/02686900510574548

Osadchy, E, Akhmetshin, E, Amivora, E, & Bochkareva, T 2018, ‘Financial statements of a company as an information base for decision-making in a transforming economy’, European Research Studies Journal, vol. 21, no. 2, pp. 339-350.

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