1.0 Introduction

This study deals with the global business perspective based on an SME called Marshfield Bakery in the UK. This bakery organisation plans for expanding its business in India, and that is the major focus of this study. Marshfield Bakery continues its business in Dyrham, Wiltshire in the UK.


As this company is focused on enlarging its business in India so this organisation searches for the external as well as the internal environment of this country in which it plans for expanding its bakery business. The FDI issues related to this organisation have been mentioned in this study.

Most importantly, the business of Marshfield Bakery depends on the mode of entry of this organisation in India.
2.0 Overview of the company
Marshfield Bakery started its business in Dyrham, Wiltshire in the UK. This organisation majorly prepares handmade cakes with the maintenance of quality and presents snacks, bars, seasonal goods as well as biscuits to its customers. Marshfield Bakery provides a wide range of handmade products all over the UK and Europe.

The employees of Marshfield Bakery are 45 and the turnover of this organisation is £2m (, 2022). From the perspective of this organisation, it can be seen that the turnover of this organisation has increased by 155% (, 2022). Most importantly, this bakery organisation introduced 13 new products in their business.

3.1 PESTLE Analysis

Factor Analysis Impact
Political ●India has been going through political turbulence for several years
●Political crises like the interest of the politician, and differentiation in ideology affect the political situation of India
●It provides political stability regarding the thrives of business
●India presents the largest democracy in the world
●Privatization become an integral part of India regarding business in the present situation (Kim and Panchanatham, 2021)
Economical ●The GDP of India is INR 236.65 trillion in 2022 (India-briefing, 2022)
●In 2022-2023 the flow of FDI is nearly $100 billion, which implies the economic development of this country
●The range of tax in India suggests 15%, 25%, and 37% (Bankbazaar, 2022)
●The inflation rate in India in 2022 suggests 15.18% Negative
Socio-cultural ●India bears a significant population of 1523555795 (, 2022)
●The population of India benefits the business organisation
●The rate of unemployment in India has been raised to 7.8% (Economictimes.Indiatimes, 2022)
●The income per capita in India implies Rs 1.27 lakh in 2021-2022 (, 2022) Positive
Technological ●The technological industry has been growing up in India
●It contains major IT sectors that ensure the up-gradation of software
●The population of India drastically use the internet and AI has been used in this country by the tech companies
●Foreign technological companies invest in India for technological advancement Positive
Legal ●IESO Act has been implemented for the employment in the industries of India
●The labors are regulated by “Industrial Relations Code 2020”, “The Code on Social security 2020”, “The Occupational Safety”, “Health and Working Conditions Code 2020”, and “The Code on Wages 2019″ (Sumalathaet al. 2021)
●”The Companies Act 2013” is considered the law of the company through which the organization implements several rules and regulations (Aswaniet al. 2019) Positive
Environmental ●“Environment Protection Act 1986” has been implemented for the consequences of any kind of environmental issues in India (Kaura, 2018)
●The demand for eco-friendly products has been increased
●India give stress on reducing the carbon emission from the busies organization Positive
Table 1: PESTLE Analysis
(Source: self-created)
As India has gone through several political flashes so business organisation like Marshfield Bakery has to face problem setting up its branch in India and the political factor give a negative impact on this business. Due to the changes in the tax rate, and not a strong economy in India, Marshfield Bakery faced the issue related to the economy while expanding its business in this country.

The economic factor gives a negative impact on its business. The population of India is huge, and due to the unemployment in India, the business of Marshfield Bakery presents job opportunities for the population. Therefore, the socio-cultural factor gives a positive impact to0 the business of Marshfield Bakery.

India started to grow from its technological aspect, and the internet and AI have been used in this country for software development. For the business of Marshfield Bakery, the technological factor gives a positive impact in India. India regulates “The Companies Act 2013” to regulate the companies in this country along with several laborers always.

Therefore, the legal factor gives a positive impact on the business of Marshfield Bakery in India. The companies in India give stress the reduction of emission of carbon and the environmental facts are regulated through the “Environment Protection Act 1986”. It can be said that the environmental factor gave a positive impact on the business of Marshfield Bakery in India.

3.2 Porter’s Five Forces

Five Forces Analysis Impact
Competitive Rivalry ●Marshfield Bakery faced huge competition in the market of India with “Theobroma”, “WarmOven”, “Davars”, “Bakers Circle”, “CakeZone”, “Bakingo”, “Cake Capital”, “Shiva Kitchen EquopmentsPvt Ltd” (Toastfried., 2022)
●Due to Covid-19, the business of the bakery organization faced a problem
●The competitors of this organisation in India gain success after the pandemic situation in 2021 High
Threats of new entrants ●For the first time in the expansion of the business of Marshfield Bakery, this organisation is not able to invest a large amount in the market (, 2022)
●This company has to build loyal customers in the Indian market
●The new company can conduct the same things as Marshfield Bakery High
Threats of substitute ●In the market of the UK,Marshfield Bakery presents several opportunities to its customers like the presentation of handmade cakes, and biscuits (, 2022)
●This organisation delivery the item of Marshfield Bakery to the customers in online mode as well
●The substitute organisation give the same facilities as Marshfield Bakery High
Bargaining power of the suppliers ●The suppliers of Marshfield Bakery provide sufficient material to this organisation
●The suppliers supply sufficient raw material for the business of Marshfield Bakery (, 2022)
●Marshfield Bakery maintains good relationships with the suppliers
●It provides facilities to the suppliers in the UK’s market Low
Bargaining power of customers ●The customers of Marshfield Bakery keep faith in the products of this organisation
●Loyal customers of Marshfield Bakery always stick with this organisation for their products and services
Table 2: Porter’s Five Forces
(Source: self-created)
Marshfield Bakery has to face huge competition from “Theobroma”, “WarmOven”, “Davars”, “Bakers Circle”, “CakeZone”, “Bakingo”. Due to the pandemic, the business of the bakery company has suffered but after that managed this situation.

Therefore, the competitive rivalry is high for Marshfield Bakery. Marshfield Bakery for the first time in its business is not able to invest a huge amount in India, or the new organisation from the bakery industry can be a threat to Marshfield Bakery. Therefore, the threat of new entrants is high for Marshfield Bakery.

The substitute organisation can provide the same facilities as Marshfield Bakery with the presentation of handmade biscuits, cakes and other items. For Marshfield Bakery, the threat of the substitute is high. The suppliers of Marshfield Bakery provide material to this organisation and Marshfield Bakery presents opportunities to the suppliers.

Therefore, the bargaining power of the suppliers is low. The customers of Marshfield Bakery gain facilities from this organisation with the services and the products and the customer wants to stick with this company for the maintenance of the quality of bakery products. Therefore, the bargaining power of the customers is low for Marshfield Bakery.

3.3 STP Analysis

The demographic aspect includes the age, income, and household of the customers on which the sale of Marshfield Bakery depends on. The psychographic aspect includes the preferences, purchase intention as well as lifestyle, and attitudes of the customers regarding the bakery products. The belief and values of the customers regarding the bakery products depend on the purchase of the item from Marshfield Bakery.

There are different age groups of people who preferMarshfield Bakery’s products. Majorly, Marshfield Bakery sells products all over the UK and Europe (, 2022). In the case of segmentation, Marshfield Bakery maintains its brand loyalty with the maintenance of the quality of products, which benefits the customers in the UK.
The business of Marshfield Bakery targets to enlarge its wings all over India such as in the UK and Europe. In the market of India, the marketers of this organisation will understand the differences in several aspects.

For the expansion of its business, it invests a large amount in the Indian market. This organisation makes channels to expand its business in this country (Dnb, 2022). This company is focused on giving benefits to its customers in the Indian market just like the market of the UK with the presentation of products and services.
Marshfield Bakery gives stress on how the customers view their handmade products of them like cakes, biscuits and other items (Dnb, 2022). This organisation makes a comparison with the other bakery companies in India and according to that, sets the product in front of the customers in the Indian market.

4.0 FDI issues that make or break the decision to expand

FDI in India has gone through several issues including the regulatory authority, as well as the issue regarding the resources. Most importantly, the economy of India has gone through equity challenges on a large scale (Papers.ssrn, 2020).

In the perspective of India regarding FDI, the stringent labor law becomes a major issue and the acquisition-related issues become major in this case. For all these reasons, Marshfield Bakery has to discuss with the finance team to expand its business in the market of India regarding the continuation of business with the maintenance of profit in the Indian market.

5.0 Mode of entry

Marshfield Bakery gives stress on the entry mode with franchising in the market of India. As this organisation is focused on expanding its business in India, so franchising is the way to do this. For Marshfield, Bakery uses a business format franchise in the market of India (Yi et al. 2019).

Through the presentation of a huge variety of bakery item such as cakes, snacks, biscuits etc. For this entry mode like a franchise in India, this organisation set the goal and objective of this organisation for expansion.

It can be said that this helps the company to understand the landscape and the process of expansion to gain the goal of this organisation on a large scale. Through the process of the franchise, this organisation gives stress on the increase in its sales in the market of India.

Marshfield Bakery searched about the market and according to that made the plan for the expansion of business in India. Most importantly, for the expansion of the business of this organisation, Marshfield Bakery has to be well aware of the competitors in the bakery industry in India. Based on these, this bakery prepares a plan for business expansion and continues its business in the Indian market.

6.0 Recommendation

●The competition of Marshfield Bakery in the Indian market is huge. It can be recommended that this organisation has to give stress the segment of competitors in the Indian market to give the best service and products to the customers (Dnb, 2022)
●This organisation give stress on franchises for business expansion in India, it can be recommended that Marshfield Bakery well conduct market research regarding the products in the market and detect the target market and give priority to them (, 2022)
●In India regarding the business of Marshfield Bakery, this organization faced the issues of FDI. It can be recommended that this organisation have to discuss with the financials about the FDI issues while taking decisions about the expansion of business.
●The marketers of Marshfield Bakery analyze the external and internal environment regarding the expansion of business in India (Satyanarayanaet al. 2019). It can be recommended that the markets must be focused on the external environment mostly to process the business of Marshfield Bakery in India.

7.0 Conclusion

Throughout this discussion, it is clear that Marshfield Bakery performed well in the UK market and plans for entry into the market in India. For that, this organisation well researched the market of India. While opening this issue in this country this organisation has to face some issues regarding FDI and others, but with several strategies, this organization solves the issues and enlarges its franchises in the Indian market.


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