TRALARIN TEAM PROJECT

1. TRALARIN TEAM PROJECT Juan José Fuertes Cebrián Pablo Genovard Carpio Marta Rubio Forner Lukasz Kusowski

2. TRALARIN TEAM PROJECT LOCATION: DULCES CONCHIN IS SITUATED IN THE CARMEN’S DISTRICT, ONE OF THE MOST FAMOUS PLACES IN VALENCIA. IT’S IN THE CENTER OF THIS DISTRICT. IT’S CLOSED TO NA JORDANA, A REALLY IMPORTANT FALLA. THIS IS THE REASON BECAUSE MANY TOURISTS VISIT THIS ZONE.

3. TRALARIN TEAM PROJECT LOCATION BENEFITS: City Center Tourists Public transport Easy to get it Many people working

4. Location detail

5. TRALARIN TEAM PROJECT HISTORY: DULCES CONCHIN BELONGS TO CONCHIN. THIS WOMAN BEGAN TO WORK IN A LITTLE ROOM OF HER HUSBAND’S FACTORY. SHE CARRIED HER FIRST CROISSANTS TO ANOTHER BAKERY. IN THE 50’S MANY PEOPLE DIDN’T HAVE ENOUGH MONEY TO FOUND AN OWN FIRM. THE FIRM STARTED TO GO QUITE WELL. THE OTHER BAKERY BURNT CONCHIN’S CROISSANTS BECAUSE THEY WERE LOSING MANY CUSTOMERS. THEN, CONCHIN’S HUSBAND GAVE HER A SMALL PLACE WHERE SHE COULD MAKE CROISSANTS. AFTER ALL, THE BUSINESS GROWED AND GROWED

6. TRALARIN TEAM PROJECT BUSINESS SECTOR: THIS FIRM IS A SMALL TRADITIONAL BAKERY. IT DELIVERS TO THE CUSTOMERS CROISSANTS, BREAD, AND OTHER BAKERY PRODUCTS. Two examples of gastronomy firms

7. TRALARIN TEAM PROJECT BAKERY BUSINESS SECTOR IN VALENCIA: BIG FIRMS (GASTRONOMY, SELLERS…) THIS FIRM SMALL SHOP SMALL SHOP SMALL SHOP THESE SMALL SHOPS AND THE BIG FIRMS, ARE NON PRODUCERS, SO THAT’S THE BUSINESS

8. TRALARIN TEAM PROJECT COMPETITORS: THE BAKERY DOESN’T A LOT OF COMPETITORS. THEY DELIVER THEIR PRODUCTS IN ORDER TO TOUT (SELL AGAIN); THE MOST IMPORTANT FOR THIS FIRM IS THE QUALITY. THE OTHER 15 OR 20 COMPETITORS HAVE LOWER PRICES, BUT IT DOESN’T MIND. THIS FIRM OFFERS MORE QUALITY WITH A HIGHER PRICE, AND THERE’S NO ONE WHO DOES IT.

9. TRALARIN TEAM PROJECT COMPETITORS (other closer bakeries):

10. TRALARIN TEAM PROJECT STRATEGY: NOWADAYS, THE STRATEGY OF THE BAKERY IS REALLY CONSERVATIVE. THE FIRM DOESN’T WANT TO GROW UP. THE REASON IS THAT, TODAY THEY CONTROL THE MARKET, THE PRICES, THE SELLERS AND THE PROBLEMS THAT COULD HAPPEN ARE SMALL PROBLEMS. THE BUSINESS MODEL, HAS LOTS OF YEARS AND HAS GONE QUITE WELL; THEY DON’T WANT TO CHANGE THAT. ALL THE WORK IS “HAND-MADE”; THEY FIRM DOESN’T HAVE MANY MACHINES; THE PRODUCTION IS REALLY TRADITIONAL

11. TRALARIN TEAM PROJECT PRODUCTION DETAIL

12. TRALARIN TEAM PROJECT SHOP DETAIL

13. TRALARIN TEAM PROJECT SUGGESTED FUTURE STRATEGY: THERE IS ANOTHER BAKERY CLOSER THAN OUR’S THAT COULD BE SET AS AN EXAMPLE TO ELABORATE A FUTURE STRATEGY. THIS BAKERY IS IN PLAZA DE BOLSERÍA. THE FIRM IS NEAR A FAMOUS PUB, A DISCO AND OTHER CLUBS (LIKE PASTELERIA CONCHIN). THE BUSINESS IS TO OPEN ALL NIGHT AND TO GET CUSTOMERS IN THE STREET. IT’S A FACT THAT PEOPLE WHO GET’S OUT FROM A PARTY, AND AFTER DANCING, ARE HUNGRY. MANY PEOPLE WALK AROUND BARRIO DEL CARMEN LOOKING FOR SOME FOOD, AND IN THIS WAY WE COULD FIND A GOOD BUSINESS.

14. TRALARIN TEAM PROJECT ORGANIZATIONAL STRUCTURE: OWNER (PEDRO) 12 BAKERY EMPLOYEES DELIVERY VAN DELIVERY VAN DELIVERY VAN

15. TRALARIN TEAM PROJECT PRODUCTS: DULCES CONCHIN, PRODUCES CROISSANTS, AND OTHER BAKERY PRODUCTS (INCLUDING SALTED PRODUCTS). THEY SELL CROISSANTS TO MANY BUYERS; FOR THE FIRM IS REALLY IMPORTANT TO HAVE GOOD PRODUCTS AND THEY NEED TO HAVE ALWAYS SOME STOCK. THIS FACT, IS SOLVED. THEY HAVE A BIG FREEZER WITH CROISSANTS.

16. TRALARIN TEAM PROJECT FREEZER DETAIL

17. TRALARIN TEAM PROJECT DESIGN OF A NEW GOOD: A SALTED CROISSANT. WE THINK IT WOULD BE A NEW GOOD FOR THIS FIRM. IT COULD BE SOLD TO THE SAME CUSTOMERS WITHOUT MEANING A COMPETITION BETWEEN THIS NEW GOOD AND THE OTHER SWEET PRODUCTS. IN CASE OF MASSIVE PRODUCTION IT WOULD BE NOT NECESSARY TO BUY OTHER MACHINES. THESE SALTED CROISSANTS CAN BE MADE BY THE MACHINES THEY ALREADY HAVE.

18. TRALARIN TEAM PROJECT A estimation : the age of the customers

19. TRALARIN TEAM PROJECT A estimation : Which type of customers are

20. TRALARIN TEAM PROJECT OPERATIONS MANAGEMENT WHAT IS OM? THE PRODUCTION OF GOODS AND SERVICE WE HAVE OUR INPUTS WHICH WE CONVERT INTO GOODS AND SERVICES, THE OUTPUTS. IN OUR CASE, THE BAKERS WITH THE EGGS, SUGGAR, AND FLOUR ARE BE ABLE TO MAKE CROISSANTS AND THE OTHER PRODUCTS. OM

21. TRALARIN TEAM PROJECT 10 DECISION AREAS OF OM • GOODS & SERVICE DESIGN • QUALITY • PROCESS & CAPACITY DESIGN • LOCATION SELECTION • LAYOUT DESIGN • HUMAN RESOURCE AND JOB DESIGN • SUPPLY-CHAIN MANAGEMENT • INVENTORY • SCHEDULING • MAINTENANCE

22. TRALARIN TEAM PROJECT GOODS AND SERVICES DESIGN DULCES CONCHIN IS A FIRM SPECIALIZED IN BAKERY PRODUCTS. THE CROISSANT IS THE PRODUCT WHICH IDENTIFIES THE FIRM; THE FIRM IS KNOWN DUE TO THE QUALITY OF THIS PRODUCT. THIS IS AN UNIQUE GOOD BECAUSE IT’S JUST PRODUCED BY A TRADITIONAL WAY. IT’S NOT AN INDUSTRIAL BAKERY, AND IT TASTES REALLY GOOD. THEY ALSO HAVE SALTED PRODUCTS LIKE PASTIES,BREAD… BUT ALL THE PRODUCTS ARE HAND MADE. NOWDAYS, THIS FACT IS TOO DIFICULT TO FIND. THIS FIRM OFFERS QUALITY PRODUCTS WITH A GOOD PRICE; IT’S NOT THE PRICE THAT OTHERS HAVE, BUT IT’S REALLY GOOD TRADITIONAL BAKERY; THE FIRM OBTAINS THE RAW MATERIALS MOSTLY FROM ITS SUPPLIERS. THE MAJORITY OF THE SUPPLIERS HAVE DELIVERED PRODUCTS FOR A LOT OF YEARS. THEY ARE ONLY RELIABLE SUPPLIERS.

23. TRALARIN TEAM PROJECT QUALITY QUALITY IS ONE OF THE MAIN GOALS WHICH DULCES CONCHIN ADOPTED SINCE ITS BEGINNING. THIS IS THE REASON WHY THEY PRODUCE ALL THEIR PRODUCTS BY HAND. IN ORDER TO SHOW THE COSTUMERS THE QUALITY OF THEIR PRODUCTS, PEOPLE HAVE SEEN THE PROCCES OF MAKING THROUGH THE WINDOWS IN MANY TIMES. THE CONFIDENCE THROUGH THE LAST YEARS HAS DONE THAT CUSTOMERS CHOOSE THIS BAKERY BEFORE THAN OTHERS.

24. HOW PEDRO’S WORKERS RECOMMEND US TO DO THE CROISSANTS? • DISSOLVE THE SUGAR AND SALT. ADD THE POWDERED MILK. • POUR THE FLOUR IN A FOOD PROCESSOR EQUIPPED AND COMBINE THE SALTED AND SWEET WATER. • WAIT FOR 30 MINUTES TO GET DOUBLE IN VOLUME ROLL OUT THE FOUR EXTREMITIES OF THE CROSS. PUT THE SOFT BUTTER IN THE CENTER • CUT A TRIANGLE AND ROLL THE CROISSANTS. • PUT THE CROISSANTS IN A WARM PLACE FOR 1 TO 2 HOURS • BON APPÉTIT !!!

25. PROCESS AND CAPACITY DESIGN THE PRODUCTION OF DULCES CONCHIN IS ABOUT 50 KILOS PER DAY. PRODUCTS ARE DELIVERED TO TRADITIONAL MARKETS, OTHER BAKERIES AND BIG SHOPS. IT ALSO DELIVERS GOODS TO RESTAURANTS, BIG EVENTS, AND CATERINGS. THE FIRM HAS A SMALL SHOP IN VALENCIA, AND THE FACTORY IS SITUATED BEHIND THE SHOP. LOCATION SELECTION DULCES CONCHIN IS SITUATED IN THE CARMEN’S DISTRICT, ONE OF THE MOST FAMOUS PLACES IN VALENCIA. IT’S IN THE CENTER OF THIS DISTRICT. IT’S CLOSED TO NA JORDANA, A REALLY IMPORTANT FALLA. THE CHOICE OF THE PLACE WAS DETERMINED BY THE BIG FACTORY OF THE HUSBAND. FIRST OF ALL IT WAS A SMALL ROOM, AND AFTER ALL IT’S A SHOP IN THE SAME PLACE THAT THE FACTORY WAS.

26. TRALARIN TEAM PROJECT LAYOUT DESIGN THE LAYOUT DESIGN IS ALWAYS THE SAME. IT’S A TRADITIONAL DESIGN FOR ALL THE CUSTOMERS. THE PRODUCTS ARE ALWAYS SOLD IN PAPER (BAKERY PAPER) AND ALSO IN PLASTIC BOXES. OTHER DESING CUOLD BE SOMITHING LIKE THIS:

27. TRALARIN TEAM PROJECT HUMAN RESSOURCE AND JOB DESIGN DULCES CONCHIN HAS 15 EMPLOYEES. ALL OF THEM ARE DIRECTED BY PEDRO (CONCHIN’S SON) WHO IS THE OWNER. THE DECISION ABOUT EACH PERSON DOES IS VERY IIMPORTANT. THIS IS THE REASON FOR EVERYONE HAS A CONCRETE TASK; MANY OF THE EMPLOYEES ARE PRODUCING CROISSANTS (HAND MADE); OTHERS PUT THEM IN THE OVEN, DELIVER THEM TO ANOTHERS BAKERIES, AND THEN THE DELIVERERS. DULCES CONCHIN IT’S ALSO IMPROVING. THE OWNER HAS A FACTORY IN THE METROPOLITAN AREA TO VALENCIA, IN ORDER TO LEADER THE PRODUCTION; THIS FACTORY NOW IS A PROJECT BUT MAYBE IN THE FUTURE IT WILL BE REAL.

28. TRALARIN TEAM PROJECT MAINTENANCE THE FIRM IS A TRADITIONAL BUSINESS; THEY HAVE THE WAY TO PRODUCE WITHOUT HAVING PROBLEMS AND MAKING MONEY. PEDRO SAYS:”WE’RE REALLY CONSERVATIVE AND AT THE MOMENT WE DON’T WANT TO DO OTHER TASKS”.”THE QUALITY OF OUR HAND MADE PRODUCTS TOGETHER WITH THE NECESSITY OF THE PEOPLE TO EAT BAKERY PRODUCTS ARE OUR KEY OF THE SUCCESS. NOWADAYS THEY’RE NOT THINKING IN MAKING THE BUSINESS BIGGER. SCHEDULING THE WAY OF THE PRODUCTION IS NOT SO FAST BUT IT GUARANTEES THE QUALITY. THE PRODUCTION BEGINS AT 3’00 AM AND THE DELIVERING BEGINS AT 7’00 AM. AT THIS TIME, MANY CROISSANTS MUST BE MADE.

29. SUPPLY CHAIN-MANAGEMENT THE WORKERS USE A VERTICAL INTEGRATION STRATEGY: PEDRO WORKERS ¡SUCCESS! SUPPLIERS CUSTOMERS USUALLY EACH MEMBER OF THE HIERARCHY PRODUCES A DIFFERENT PRODUCT OR SERVICE, AND THE PRODUCTS COMBINE TO SATISFY A COMMON NEED. INVENTORY DULCES CONCHIN HAS 8 MACHINES IN THE SHOP. PEDRO, THE OWNER IS THE MAN WHO MAKES ALL THE MACHINES TO GO WELL. THE SUPPLIERS BRING THE INGREDIENTS TO THE SHOP. A NUMBER OF THEM ARE FROZENED. THE OTHER PART IS USED TO PRODUCE.

30. TRALARIN TEAM PROJECT QUALITY HOUSE: "Hows vs.Hows" RELATIONSHIP BETWEEN CUSTOMER DESIRES AND THE FIRM/PRODUCT CAPABILITIES "Whats vs. Hows".

31. TRALARIN TEAM PROJECT CONCLUSIONS OF HOQ • THE PRICE AND THE FLAVOUR ARE THE MOST IMPORTANT FACTORS. • IMPROVE OUR MARKETING IN OTHER AREAS. • EXPAND OUR AREA OF OPERATIONS. • HAVE MORE DIVERTSITY OF PRODUCTS.

32. TRALARIN TEAM PROJECT Forecasting Approaches Qualitative Methods They are used with new products or new technology. They involve intuition, experience. Quantitative Methods They are used when situation is ‘stable’ & historical data exist, with existing products and current technology. They involve mathematical techniques. They must coexist to make the forecasting as efficient as possible.

33. TRALARIN TEAM PROJECT Quantitative Forecasting As we couldn´t ask costumers, or talk with experts to help us in a qualitative way, we are working with quantitative forecasting to study the sales of our bakery : -Moving Average Method n=3 -Exponential Smoothing a=0.10 -Weighted Moving Average Method (We thought it should require more historical data than the one we have). Since the beginnings of Dulces Conchín, the firm has always been growing all along the years and increasing its sales, becoming one of the leaders in its sector in its location.

34. TRALARIN TEAM PROJECT Quantitative Forecasting As you can see in the following table, Dulces Conchín is reaching every year continually improvements.

35. MA MA     Demand in Demand in Previous Previous n n Periods Periods n n TRALARIN TEAM PROJECT Quantitative Forecasting Moving Average Method n=3 functionx=mediamovil(Y,n,t) fori=4:length(Y)+1 x(i-3)=(Y(i-3)+Y(i-2)+Y(i-1))/n; end plot (t(4:end),x,'r'); XLABEL('Year') YLABEL('Gain(€)') grid hold plot(t(1:end-1),Y,’g’);

36. MA MA     Demand in Demand in Previous Previous n n Periods Periods n n TRALARIN TEAM PROJECT Quantitative Forecasting Moving Average Method n=3 Forecasting for 2008 : 192000 €

37. MA MA     Demand in Demand in Previous Previous n n Periods Periods n n TRALARIN TEAM PROJECT Quantitative Forecasting Exponential Smoothing a=0.10 Ft = Ft-1 + a· (At-1 - Ft-1) functionx=exponential(Y,xini,n,a,t) x(1)=xini; fori=2:length(Y)+1 x(i)=x(i-1)+a*(Y(i-1)-x(i-1)); end plot(t,x,'*'); hold grid plot (t,x,'r'); XLABEL('Year') YLABEL('Gain(€)') plot(t(1:end-1),Y,'g');

38. MA MA     Demand in Demand in Previous Previous n n Periods Periods n n TRALARIN TEAM PROJECT Quantitative Forecasting Moving Average Method n=3 Forecasting for 2008 : 161310 €

39. TRALARIN TEAM PROJECT Forecasting To sum up we could say Forecasting is the process of predicting a future event. It is the process of estimation in unknown situations, and as a prediction, it is not 100% reliable. In conclusion,in 2008, attending to the forecasting, Dulces Conchín will keep on increasing the sales, even when it is known that forecasting gives lower than real values.

40. TRALARIN TEAM PROJECT E-COMMERCE AND US

41. TRALARIN TEAM PROJECT BENEFITS: • IMPROVED, LOVER COST INFORMATION • AVAILABLE 24/7, VIRTUALLY ANYWHERE IN THE WORLD • AVAILABILITY EXPANDS MARKETS (FOR BUYES AND SELLERS) • DECREASES THE COST OF PAPER-BASED INFORMATION • FAST DELIVERY OF DIGITIZED PRODUCTS • INCREASED FLEXIBILITY OF LOCATION

42. TRALARIN TEAM PROJECT LIMITATIONS : PEOPLE WHO USUALLY BUY IN A BAKERY DON’T NEED TODO IT ELECTRONICALLY A BAKERY IS A BUSINESS IN WHICH TRUST AND HABITSARE VERY IMPORTANT, AND THAT ARE NOT CHARACTERISTICS OF E-COMMERCE LACK OF SYSTEM SECURITY, RELIABILITY AND STANDARDSINTEGRATING E-COMMERCE SOFTWARE WITH EXISTINGSOFTWARE IS STILL A CHALLENGE

43. TRALARIN TEAM PROJECT SUMMARY: WE ARE NOT THE BEST EXAMPLE TO TAKE ALL THE BENEFITS OF E-COMMERCE BUT.... • IT IMPROVES THE QUANTITY AND QUALITY OF OUR SALES (I.E. WALL DRUG STORE IN U.S.A.) • MAKES OUR BRAND MORE KNOWN WORLDWIDE („IF YOUR BRAND IS NOT ON THE INTERNET IT DOESN`T EXIST”) • WE CAN SELL ADDITIONAL ACCESORIES TO MAKE EXTRA MONEY AND MAKE OUR BRAND MORE RECOGNIZED (CUPS, FUNNY T-SHIRTS WITH OUR BRAND NAME ON THEM) • CONCLUSION: WE STRONGLY RECOMMEND THE USE OF E-COMMERCE IN EVERY BUSINESS WHICH COULD AFFORD IT.

44. DULCES CONCHIN THANK YOU FOR YOUR ATTENDANCE!!!! ANY QUESTION?