Planning For Growth

This document discusses the key considerations for SMEs when evaluating growth opportunities, including competitive advantage, Porter's Generic Strategies, and PESTLE analysis. It also assesses various methods of funding for organizations and provides insights on developing a business plan for scaling up a business.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1: Analyse the key considerations SMEs should consider when evaluating growth
opportunities...........................................................................................................................3
Task 2: Assess the various methods through which organisations access funding and when
to use different types of funding.............................................................................................6
Task 3: Develop a business plan (including financials) and
communicate how you intend scaling up a business.............................................................9
Task 4: Assess the various ways a small business owner can exit the
business and the implications of each option......................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
SMEs are the small medium enterprises which consist fewer than 250 members. They
play major role in economy as they contribute to growth, creates employment opportunities and
provide platform for new markets. The entrepreneurs of SMEs are attracting investors as with the
advance technology they are opening new market for these products. Further there aim is to
satisfy the customer and fulfil the needs of the localities, thus they easily cope up with the
changing environment. The companies identifies the opportunities for growth to attain the long
term success and sustainability in the competitive market. The SMEs adapt the changes in order
to sustain in the markets. These enterprises generally develop the exit and succession strategies
in initial business plans. Sometimes exit strategy is not acceptable by entrepreneur so they face
many challenges during the succession planning. The report examines the planning for the
growth of an organisation in the market.
MAIN BODY
Task 1: Analyse the key considerations SMEs should consider when evaluating growth
opportunities
COMPETITIVE ADVANTAGE
When an enterprise maximise the profits exceeding the average profit earned by the same
industry, thus creates a competition in the market and the enterprise which inherits the advantage
said to gain the competitive advantage (Rana, Agarwal, and Sharma, 2021). The basic advantage
which prevails growth opportunities in relation to Don’t-Look-Further Catering Services are:-
 when an enterprise is able to deliver the same product or service as competitors but at a
low price, gaining cost advantage
 or deliver the product or service exceeds those of competitors, causes differentiation
advantage
Further Margaret Millions utilised its resources and capabilities effectively and
efficiently in order to gain competitive advantage that will ultimately increase the goodwill of the
firm and its value towards the customers. Also the firm has capability of providing the highly
specialised catering service promptly than competitors. Thus, the competencies will somewhere
enable the firm the efficiency, better quality and customer awareness (Kanaan and et. al., 2020).

Porters Generic Strategies
Porter formulated four strategies in order to gain advantage in the competitive market. It
also determines whether the position of firm is above or below the market average. Don’t-Look-
Further Catering Services, a highly specialised catering business focus on providing services
effectively and efficiently (Razak and Vattikoti, 2018). Thus, using the above advantages the
Porter devised generic strategies so that the firm can effectively segment the market and gain
sustainability in the competitive environment. The generic strategies for achieving above the
average performance in the market are as follows:-
1. Cost Leadership: This strategy enable to target the market where the demand of customer
are high and offer them with the products or services at low cost. Thus, it focuses on
keeping the cost of the firm low. The application of this strategy results into high
performance as compared to its competitors in the market.
2. Differentiation: This strategy enable to target the market where the demand of customer
are high and offer them the products or services of unique features, i.e. those products or
services through its unique features distinct its from the competitors. The firm while
using this strategy requires a proper research of the market along with the trends and
changes in the environment, innovation and ability to maintain and provide high quality
products or services. Such unique product or service is required to be launched in the
effective market so that the firm can maintain its sustainability.
3. Focus: This strategy is further bifurcated into cost focus and differentiation focus. The
cost focus to attain the advantage by lowering the cost while the latter attain advantage
through product differentiation in the segment. Prestige of brand and its loyalty is formed
under the latter strategy. Thus, level of competencies is required to be focused by the
firm before adapting the strategy.
PESTLE Analysis
PESTLE Analysis focus to give an overview of the external factors which are affecting
the business. Accordingly the organisation formulates its strategies and make decisions regarding
the conduct of the business (Segura, Morales and Somolinos, 2018). This PESTLE analysis
examines the external factors which the Don’t-Look-Further Catering Services company faces,
these are:-

 Political Factors: The firm may face political issues in the country where the owner is
carrying its business. Taxation policy differs in the country and even the competitor may
evolve hindrances before the business.
 Economic Factors: During the pandemic situation many business faced challenges and
accordingly implemented the policy to overcome these changes. Thus, the firm is
required entertain these factors effectively.
 Social Factors: The firm is required to conduct its business keeping in view the cultural
aspects of the customers. Thus, require better segmenting, positioning and targeting of
the customers while considering their behavioural aspects.
 Technological Factors: The new innovation may affect the businesses. Thus, the firm is
required to create a wide aspects for research and development. For example my offering
services through mobile apps etc.
 Legal Factors: The firm is required to patent its work so that the competitors cannot
misuse the company's work and cause confusion in the minds of the customers.
 Environmental Factors: Most of the companies focus on eliminating material waste and
make an effort to reuse such waste. Thus, the firm is required to make consumer aware
about the environment.
GROWTH OPTIONS
Ansoff Matrix
Ansoff matrix aims to increase the market share in the changing environment by
applying its four main strategies. With the help of this Matrix the company will be able to know
their market position and will develop the business strategy to cope up the difficulties in the
changing environment (Hassanien, M., 2021).
Market Penetration
Under this strategy, the organisation aims to increase the market share in the current
market scenario by increasing the sales of existing products into existing markets. The firm can
use the social media to push its existing services as to create consumer awareness. The firm may
adopt the direct sale policy and even developed the mobile application for customers
convenience. Usage of catalogues will help to attract consumer towards services. Thus, this
strategy involves less risk as compared to others.

Product Development
This strategy focuses on introducing new products in the existing markets. This strategy
also involves a risk as new products may or may not be liked by the customers. The firm during
the pandemic situation may add such services like segmenting tables maintaining distance which
will be very helpful during social distancing norms. New Experiments with the trends while
carrying services will help to grow the firm in the market. Further Margaret is exploring her
services by working with supermarket to supply lunch meals. In this she may include new
service like online booking of meals.
Market Development
Market development strategy focuses on entering a new markets using existing products.
This involves a risk of company's stability in the new market segments. Under this strategy
Margaret is supplying meals in the supermarket, as she don't want to limit her catering services
for parities only. Further, used the market segmentation to target different groups of people. Also
induced the customers by providing membership services and vouchers.
Diversification
This strategy focuses on entering a new markets with the introduction of new products.
The risk involved in this strategy is more as the business is moving into a market of which it has
no knowledge. It creates a question in relation to the position of the business in the competitive
environment. Further Margaret may diversify her catering services creating a cooking school or
engage in partnership with colleges nearby. Thus, the firm structure need to be strong in the new
market with its new products.
Task 2: Assess the various methods through which organisations access funding and when
to use different types of funding
For initiating business funds are required and sometimes lack of funds may cause
hindrance in setting business. Thus, various methods can be opted to acquire funds for the
business (McDowell and et. al., 2018). Funding can be of two types:-
 Equity Financing: The money funded under this is from investors who acquire shares of
the company.
 Debt Financing: Funding can be done by taking loan and then returning back the amount
along with the interest.
Some common sources of financing business are as follows:-

BANK LOANS AND OVERDRAFTS
It is considered as most common source of financing business. Entrepreneur oftens lends
money from bank for a time period with an condition to return along with the interest up to that
date. Also entrepreneur required to keep security with the bank against the loan. Further another
option is to withdraw money beyond the limit from the account which is called the overdraft
facility. Interest rate of bank loan is low as compared to bank overdraft.
Benefits
 It will help to generate and maintain a good credit score and thus will attract the investors
 The loans with fixed rate of interest, makes it easier for the company to plan budget also
the loans are generally tax deductible. No obligation on the entrepreneur once the bank loan is paid.
Drawbacks
 Interest rate is generally high and sometimes the fund acquired remains insufficient for
the company.
 One of the major drawback is getting loan sanction is the biggest task unless the record
of business is small and valuable collateral is available against such loans. Formalities
and procedures are to lengthy to acquire loans from bank.
 Personal assets are forfeited if entrepreneur fails to pay the concerned amount wit the
interest (De Crescenzo, Baratta and Simeoni, 2020).
CROWDFUNDING
Crowdfunding, the name itself speaks a lot, it is suitable for those who enter the market.
It is the method of funding in which the entrepreneur raises small shares of money from a large
number of people. Mostly people raises money through social media i.e. from the internet
sources. They are the equity based funding and thus, regulated by the law. Further there are
many crowdfunding sites available for the entrepreneur.
Benefits
 It will attract the investors if the business attains success and growth in the market.
 These websites helps to make consumer aware about the brand and products or services
company is offering.
 Also somehow it becomes easier for entrepreneur to create awareness of its brand via
social media marketing

 Considered as cheap funding Encourages the start ups to step into the market with their innovative products.
Drawbacks
 Funds may be insufficient to initiate a business
 Creating websites, legal formalities, advertising and other miscellaneous expenses led to
high cost.
 There involves a risk of business failure and wastage of resources.
VENTURE CAPITALIST
Venture capital is the form of equity and considered as a financing method by the
investors in mostly start up companies and small ventures which has the potential to stand in the
market for a long term.
Benefits
 No interest is applied on such funding
 Impressive and innovative start ups attract such investors
 Offers valuable and expertise guidelines
 These investors are loyal and trustworthy On failure of start ups and business, there is no obligation to repay
Drawbacks
 It is time consuming as it takes time to release the fund.
 Complicating and delaying formalities
 Because of the failure the company takes a lot of time to decide whether they are
interested in investing or not.
 Requires high return on investment which may create tension
ANGEL INVESTORS
An angel investor are those funder who are among the entrepreneur's representatives i.e.
family and friends (Álvarez-Bornstein and Montesi, 2021). Further they invest in exchange of
equity ownership of the company. They may be one time investment in order to support the
business from its difficult phase.
Benefits
 No need of collateral security against the investment No obligation of payment and interest

Drawbacks
 It takes long time for investor to invest in the company
 Such investment involves risk
 Investors contributes less support as compared from other investing company
PEER TO PEER LENDING
Peer-to-Peer lending enable to obtain loans from the individuals other than the financial
institution. It eliminates the middleman and directly connect borrowers to investors. Thus
considered as a traditional bank with better offers.
Benefits
 Lenders are generally the choice of the entrepreneur
 Liquidate the funds on time
 Ability to give high return as compared to others Access funds at lower rates
Drawbacks
 Interest earned will be taxed and is required to furnish the interest earned in the annual
report.
 Lending of funds is time consuming
 need to take measures in order to secure the fund required to pay application fee
Task 3: Develop a business plan (including financials) and
communicate how you intend scaling up a business
Another main motive of the organisation is to enjoy the competitive advantage in the
market. As discussed above it refers to advantage gained by the company on producing goods
and services at low price than its competitors. Further it provides the spirit of competition in the
market and thus, help the organisation to achieve the organisational goals effectively and
efficiently (Al Badi, 2019).
Marketing Plan helps to formulate the policies and strategies in order to carry a effective
marketing in the business. Further business plan helps to allocate the resources effectively and
also led the organisation to meet its objectives. The Don’t-Look-Further Catering Services
provides the catering services and also expanding its services by availing lunch meals to
supermarket. Margaret had created a strong base of her services and want to explore more with

her services. Also she has formulated the strategies required to achieve the desire goals. Some of
the strategies to increase sales and revenue includes:-
 Properly targeted and segmented the group of people
 Devised strategies like, differentiation services in order to gain competitive advantage
 Promoting its services via use of social digital marketing i.e. use of trending social sites
 Delivering the service with high quality accompanied by reasonable price.
MISSION
Our aim is to provide services of high quality ensuring safety and hygiene and portrays
the values towards the society and environment.
VISION
To be the best chosen catering and food service provider with the best quality standards
through continuous improvements and effective utilization of our resources and capabilities
along with maintaining the commitments made to our clients and shareholders.
EXECUTIVE SUMMARY
Margaret is considering working with supermarkets to supply lunch time meal deals. As
she wants to expand her services keeping in view the quality standards and interest of its
shareholders.
MARKETING OBJECTIVES
The main aim of the company is already stated above in the mission and vision. Thus, the
objectives in respect of new service considered by the Margaret are:-
 The company's objective is to grow steadily and enhance with its resources and
capabilities (Tenjo Rosero, 2020).
 Attract customers for creating long term relations with them.
 Increase in the percentage of sales by decreasing the cost of expenses.
FINANCIAL OBJECTIVES
The financial objectives are required to achieve in order to maintain the budgets of the
company. These are as follows:-
 Main objective is to maximise the profits by making an effective utilization of resources.
 Achieve annual growth rate of 10% or more in a tenure of eight years or longer.

 Focus on reducing the variable operating costs of the company by lowering the use of
unnecessary utilities. As these are those costs which varies according to the business
activity.
SWOT ANALYSIS
Strengths
Strength is considered as the back bone of an
organisation. It protects the organisation from
the competitive market. Some of the strengths
are:-
 It will help to build the goodwill of the
company. Further the brand image
enables the high quality of its services.
 The company has built a reliable
distribution network that connects
majority of its market.
 One of the strength is its highly skilled
and qualified workers. The company
pays a great emphasis on the
recruitment of its skilled workforce.
 The main strength of the company is its
rapid response towards the demand of
the consumers. Variety of options for events available
to the customers to make a choice.
Weakness
Weakness states the negative factors of the
organisation which need to be improved with
the changing environment. Factors which
creates negative image of the company are:-
 The struggles in building the brand of
the company is considered as negative
factor (Dhange, Kumar and
Pattanshetty, 2018) .
 Sometimes not meeting the
environmental factors because of the
changing needs and wants of the
consumers.
 Disputes in contracts between the
service provider and consumer.
 The company rely on same group of
people to generate its revenue. This
unique selling creates negative impact.
 Main weakness is the limited
marketing budget for promotional
tactics and for creating consumer
awareness.
Opportunities
These are the external factors in the
environment which may or may not be in
favour of the firm. These are:-
 New trends in the customer behaviour
Threats
These are the factors beyond the control of an
organisation which may put the mission of an
organisation at risk. These are:-
 There are many other catering services

may help the company to diversify new
products and meet the new trending
demands of the customer.
 One of it may be the ability to
diversify her catering services by
creating a cooking school or engage in
partnership with colleges nearby.
 Capable of organising new events in
the colleges campus and schools.
 Expanding her 'tiffin services' to the
hostels in the college and school
campus (Nedumaran, 2020).
which can threaten market position of
the company .
 Increased cost of resources and
limited amount of availability of fund
may lower the amount of services and
will somehow affect the quality.
 Unstability in the economy may lower
the budgets for events and parties.
SEGMENTATION, TARGETING AND POSITIONING
STP marketing stands for segmentation, targeting and positioning. The aim of
this strategy is to create segments of the consumers then targeting such segments according to
the costumers demand and preferences and finally positioning such strategies in order to fulfil
their demands. Segmentation is done according to the demographics, behavioural aspects,
geographically. The service offered by the Margaret is suitable for all group of people, no
division of income criteria and status as the service provided is flexible in nature. Further
services are upgraded according to the trendy behaviour of the customer.
Targeting is important in the succession of the business as proper targeting will
eventually led to growth and success of the company. The Don’t-Look-Further Catering Services
targets youth audience more as compared to others. Discounts and offers will attract the price
sensitive consumers.
It is important to make positions of brand imprint in the minds of the consumers. The
firm is required to create awareness among the consumers regarding the services and upcoming
services of the service provider. Thus, the considered service of the Margaret will create a
positive impact on the company and sustainability in the market.
STRATEGIC OBJECTIVES FOR

SCALING UP A BUSINESS
The company with the help of strategic plans be able to know about their market position
and formulate the policies to cope up the difficulties in the changing environment. The strategic
framework enables the sustainability of the market plan in accordance with the changing
environment (Bolland, E.J., 2017).
Market Penetration
The firm can use the social media to push its existing services as to create consumer
awareness. The firm may adopt the direct sale policy and even developed 'one click service' for
customers convenience. Usage of catalogues will help to attract consumer towards services.
Product Development
During the pandemic situation may add Margaret can offer services like segmenting
tables maintaining distance which will be very helpful during social distancing norms. Further
Margaret offering services according to the trendy needs of the customer will help her to achieve
organisational goals effectively (Ben Amor, Althof and Härdle, 2021). She may include new
service like online booking of meals, availing snacks and deserts long with disposals of high
quality .
Market Development
The market segmentation to target different groups of people. Also induced the
customers by providing membership services and vouchers. Further providing diet plans for the
customer if they want to follow and offer meals accordingly.
Diversification
Further Margaret may diversify her catering services creating a cooking school or engage
in partnership with colleges nearby. Thus, the firm structure need to be strong in the new market
with its innovative ideas.
FINANCIAL GROWTH AND THE RISK ASSOCIATED WITH IT
A company is said to be a financial sound when it meet its objectives effectively. The aim
of the company is to achieve its financial objectives so that the company remains stable during
its bad phase. Further the company faces hindrances and risk in obtaining such objectives and
thus, formulates strategies in order to mitigate such risks. Financial Risk causes possibility of

lack of money in the business. Further it may cause a loss of interest of stakeholders towards the
company resulting into the dissolution of the firm (Metzger and Fehr, 2018).
If the company is unable to mitigate the financial risk, a question may raise against the
credibility of the firm. Debt highly affects the credit score of the company which result into loss
of stake holder's interest. Further the governments are forced to rethink about the monetary and
other associated policy. It may also cause abrupt fluctuation in the prices of shares. Sometimes
such risk evolve when the firm makes poor decisions and also currency risk is also involved in
case of investors holding foreign currencies. Such risk can be mitigated by the firm through:-
 Main thought which comes into mind during risk is about insurance, thus buying
insurance will allow the firm to transfer the loss on the shoulders of the insurance
companies (Dogah and Premaratne, 2018).
 If the type of company possessing is unlimited in nature, it is required to change such
nature into limited liability company so that the owner is not personally liable for the
loss.
 Diversify the products or services, it will help to earn income from various sources. Analysing and prioritising the risk involved while undergoing the business and then
formulate such plans and policies in order to mitigate and make business sustainable in
the market.
Task 4: Assess the various ways a small business owner can exit the
business and the implications of each option
Most entrepreneur initiate their business with their aim to achieve the objectives stated in
the mission and vision effectively and efficiently. To attain this the entrepreneur conducts
market research, formulates marketing plans and strategies but sometimes they fail in carrying
such activities or fulfilling the objectives which may ultimately led them two options either to
formulate new strategies i.e. opt succession strategy or exit the business (Ejakpomewhe, 2017) .
SUCCESSION PLANNING
One of the option is continue to run the business smoothly by identifying the successors
in the business and delegating them the leadership and management of the firm. It aims to
continue the business effectively and efficiently. Further it is required to formulate an effective
succession plan to make the firm run smoothly (Fowler-Washington, 2017). Generally for small
business it means training the successor, so that he/she become capable in handling the business.

EXIT PLANNING
Another option is to exit the business if the organisation is unable to mitigate the loss or
not able to meet its objectives. The strategy led to the disposal of investment in a business or any
assets of the business (Wilson-Smith and Corr, 2019). The strategy includes:
 process of liquidation i.e. closing business and selling all assets
 transferring the business to another person or entity
 popular option is to sell business in the open market
 Through Initial Public Offering which is considered as feasible exit strategy
Thus, Margaret is suggested to continue her business of catering services as she is taking
all the measures to mitigate risks involved and the strategies applied by her is going in a good
direction leading her to achieve the desired goals effectively. She is required to make effective
utilisation of resources and capabilities in order to sustain in the competitive market. Somehow,
will also create a good image regarding the sustainability in the market.
CONCLUSION
From the above report it is concluded that Small business enterprises also contribute to
growth, creates employment opportunities and provide platform for new markets. The method of
funding to initiate business is also important as it helps small business to open in new markets.
Accordingly strategic plans are formulated to mitigate the risks involved so that business grow
and achieve success especially in the competitive market. Further plans are required to enjoy the
competitive advantage in the market. Even two options are suggested if the business is unable to
meet its objectives, either to continue it smoothly or exit the business and these strategies have
their own consequences.
REFERENCES
Books and Journals
Al Badi, K., 2019. Implementation of marketing concept and organizational culture in SMEs in
Al Buraimi–Oman. Benchmarking: An International Journal.

Álvarez-Bornstein, B. and Montesi, M., 2021. Funding acknowledgements in scientific
publications: A literature review. Research Evaluation.
Ben Amor, S., Althof, M. and Härdle, W.K., 2021. FRM Financial Risk Meter for Emerging
Markets. Available at SSRN 3785488.
Bolland, E.J., 2017. Generic Strategies and Strategy Dynamics. In Comprehensive Strategic
Management. Emerald Publishing Limited.
De Crescenzo, V., Baratta, R. and Simeoni, F., 2020. Citizens’ engagement in funding renewable
and energy efficiency projects: A fuzzy set analysis. Journal of Cleaner
Production. 277. p.124060.
Dhange, V., Kumar, S. and Pattanshetty, S., 2018. SWOT analysis of IEC implementation in
RMNCH+ A program in Udupi district. International Journal of Community Medicine
and Public Health. 5(5). pp.2109-2112.
Dogah, K.E. and Premaratne, G., 2018. Sectoral exposure of financial markets to oil risk factors
in BRICS countries. Energy Economics. 76. pp.228-256.
Ejakpomewhe, R., 2017. Influence of Succession Planning on Technical Knowledge
Transfer (Doctoral dissertation, Walden University).
Fowler-Washington, D.A., 2017. Influences of cultural norms on succession planning and
knowledge transfer practices of Protestant ministers: A qualitative study (Doctoral
dissertation, Colorado Technical University).
Hassanien, M., 2021. Concepts and Models of Strategic Planning: A selected modelling and
limitation. GRIN Verlag.
Kanaan and et.al., 2020. The effect of intellectual capital on competitive advantage in the
Jordanian Telecommunication Sector. Journal of Business & Management (COES&RJ-
JBM). 8(1). pp.1-19.
McDowell and et. al., 2018. Building small firm performance through intellectual capital
development: Exploring innovation as the “black box”. Journal of business
research. 88. pp.321-327.
Metzger, B.A. and Fehr, R.R., 2018. Measuring financial risk attitude: how to apply both
regulatory and scientific criteria to ensure suitability. Journal of Behavioral
Finance. 19(2). pp.221-234.
Nedumaran, D.G., 2020. Consumer Perception and SWOT Analysis of Organic Food Products.
Rana, G., Agarwal, S. and Sharma, R. eds., 2021. Employer Branding for Competitive
Advantage: Models and Implementation Strategies. CRC Press.
Razak, A. and Vattikoti, K., 2018. Critical Evaluation of Value Chain Analysis for Assessing
Competitive Advantage-A Study on Select Companies of E-Tailing Industry. Academy
of Strategic Management Journal. 17(6). pp.1-14.
Segura, E., Morales, R. and Somolinos, J.A., 2018. A strategic analysis of tidal current energy
conversion systems in the European Union. Applied energy. 212. pp.527-551.
Tenjo Rosero, C.A., 2020. Plan de marketing Cooperativa Coopetrol.
Wilson-Smith, K.M. and Corr, P.J., 2019. Role Exit. In Military Identity and the Transition into
Civilian Life (pp. 19-26). Palgrave Pivot, Cham.