STRATEGIC MANEDMENT

1. WOODEN
BAKERY

2. PESTEL
ANALYSIS

3. Political
The political situation in Syria has presented the
Lebanese bakery industry with great growth
opportunities as there are millions of Syrian
refugees coming in causing the demand of pita
bread and baked goods in general to increase
But now The political situation in Lebanon has
negatively affected sales of bread
Increasing production costs forced the increase
of bread prices, and the decrease of sales in
Lebanon

4. Economic
the economic crisis in Lebanon
along with the fluctuations of
the value of the Lebanese Lira
with respect to the dollar forced
the prices to go up
Moreover, due to COVID-19,
most commodities prices fell
worldwide, but production costs
in Lebanon have increased
drastically

5. Sociocultural/demographic
Lebanese pita bread was and still is
the chief staple of the world-famous
Lebanese cuisine
Pita bread is usually served as a
complement to several main dishes
It is also important to note that bread
is broadly consumed across the
country, regardless of where you live
or or income level

6. technological
Wooden Bakery open a new online
shop that customers can order from
their houses
Wooden Bakery also opened a new
website that the population of the
country can go check the history and
the franchise of the company
The automated pita bread
production-line equipment are made
locally

7. Environment
The factories that wooden bakery
owns, and the large number of
industrial devices such as ovens
and baking equipment that are used
, contribute to carbon emissions in
the atmosphere.
IN addition to, wooden bakery owns
many vehicles that assure the
transportation of the products

8. Legal
Since pita bread is an absolute
necessity in the Lebanese diet, its
production was regulated by the
government
Regulations apply to the number of
loaves in a pack, the weight, and the
price of a pack
Bare in mind that the regulations are
relevant only to traditional white pita
bread

9. porters
5 forces
analysis

10. competitive
rivalry
among firms
High in the bread industry ,
especially that bread prices
are fixed and any small
increase in one companies’
prices will make them lose a
lot of customers and there
are many competitors in the
bakery-convenience
industry that offer very
similar products today

11. threats
of new
interns
For wooden bakery threats of new entry
are Low, because of high barriers to
entry the industry is saturated with
major competitors and new entries
require a lot of resources, and
production costs have become way
higher than 2019 or any year before
Besides, Wooden Bakery has a large
distribution network that is hard to
compete with, let alone build in the first
place

12. bargaining
power of
suppliers
Low bargaining power: Flour
constitutes 70% of the production
cost for wooden bakery but it is
highly regulated by the government
Due to wheat shortages in Lebanon
after the explosion of Beirut , the size
of wheat supply has decreased
In this case, since wheat is a
commodity, the supply of wheat is
dependent on external factors (for
example Covid-19

13. bargaining
power of
buyers
Very high bargaining power: The
switching cost is very low
People are aware and able to buy easily
from other bakeries at the same price
that is set by the Lebanese government
However, Wooden Bakery is a bit
protected by the variety of products that
extend beyond “Pita bread” to Manaish,
kaak, and other Lebanese food

14. threats of
substitutes
High, since bread operating costs are
increasing, and wheat prices are
increasing as well, many Lebanese
people are going after “Marquq bread”
which is cheaper and can be produced
in houses or smaller bakeries
From the convenience store threat
perspective, we can consider that
supermarkets offer a wider variety of
goods spanning a greater range of
prices with potential loyalty cards and
offers

15. SWOT
analysis

16. strengths
• Wooden Bakery offers high quality products, freshly
baked bread
• presence of around 50 bakeries in Lebanon have
strengthened the position of Wooden Bakery in the
industry.
• Wooden Bakery focuses on hiring the most professional
management to benefit from their expertise in adding
more value and taking the firm to a new level

17. weakness
• Increase in operating expenses, increase in production
costs , and expensive bread packing technique

18. opportunities
• After Wooden Bakery established factories and outlets in
Qatar in 2017, many opportunities were presented in
Chicago and Middle Eastern countries
• There are areas were Wooden bakery has not franchise
stores in yet, so they have the opportunity of Focusing
on those areas

19. threats
Unstable economic and
security conditions in
Lebanon
High barriers to entry in
some geographical areas
where competitors are
highly known dominant

20. VALUE CHAIN
ANALYSIS

21. Inbound
Logistics
Wooden Bakery makes use of
around 75 tons of flour per day,
and engages in wholesale,
where they sell their products to
local grocery stores as well
Wooden Bakery has around
600 employees in Lebanon

22. Operations
• Wooden Bakery operates in over 50
outlets in Lebanon today, launches a
franchise operation in Saudi Arabia,
operates in Qatar and UAE, and
plans to operate in Kuwait and Iraq
in the future

23. outbound
logistics
The company has contracted
agents in offshore countries
and sites to manage product
selling
However, a majority of the
products are sold directly to
licensed sellers and shops
locally as well as
internationally

24. Marketing
and Sales
The target customers are all members of
society, especially that all Lebanese families
consume Pita Bread, and it is the main
product that Wooden Bakery produces
With its high-quality packaging, and
marketing strategy, Wooden Bakery was
able to access and impress every Lebanese
home
Moreover, Wooden Bakery engages in
advertising (billboards etc

25. Services
It invests in customer
service in order to increase
customer loyalty and foster
long-term relationships with
its customers.
The company invests in
gaining and incorporating
customer feedback and in
solving customer question
effectively

26. Infrastructure
• This covers many departments such as management,
finance, and legal, among others, that are essential to
keep the company's operations going smoothly.

27. Human resources
Management
• Wooden Bakery only recruits the best bakers, and
provides exceptional training in order to produce high
quality bread

28. Technology
Factories utilize advanced
machinery and equipment
for the production of bread
Company makes use of its
equipment to produce
bread for low prices

29. Procurement
Maintaining supplier relations
Assessing feasibility of products
Checking for available ingredients
To obtain high-quality raw materials, the
company has engaged agents who operate
for the company in many nations and areas.

30. Conclusion
Due to the economic crisis in Lebanon, production
costs for wooden bakery are increasing
Besides, due to the limited supply of grain, exported
grain is costing more
Wooden Bakery must find alternative ways to supply its
branches with the necessary raw material to keep
business flowing
Moreover, Wooden Bakery can turn its weaknesses
into strength by finding a way to decrease production
costs, without affecting the quality of its products, and
without increasing the price of its output