Planning for Growth: Evaluating Opportunities, Funding Sources, and Business Plan Development

This document discusses the key considerations for evaluating growth opportunities, assessment of various sources of funding, and the development of a business plan. It also explores strategies for growth using the Ansoff Growth Matrix. The subject of the document is Business Management, with a course code of BMGT101. The college/university is not mentioned.

PLANNING FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Key consideration for evaluating growth opportunities in relation to organization....................3
Evaluation of growth opportunities by making use of Ansoff Growth Matrix............................5
Task 2...............................................................................................................................................5
Assessment of various sources of funding that can be used by business.....................................5
Task 3...............................................................................................................................................7
Development of business plan.....................................................................................................7
Task 4.............................................................................................................................................11
Assessment of exit and succession strategies along with its benefits and drawbacks...............11
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth is strategies or key action that are planned by business to undertake
in order to expand business operation so that end goals can be achieved in the best possible
manner. Manager of company need to devote high time, efforts and energy to design appropriate
course of action that firm can take to enjoy maximum profitability and market share. Don’t-
Look-Further is catering services provider business that provide food, wines from high quality
suppliers. This report has highlighted crucial point related to key consideration that manager has
to think while planning and evaluating available growth opportunities. Moreover, it has also
contained detailed related to potential sources of funding that are available of small and medium
business to meet various expenses. At last, it has included business plan and various existing
strategies that could be used by business to cease its operation in external environment.
MAIN BODY
TASK 1
Key consideration for evaluating growth opportunities in relation to organization
There are numerous things which needs to be considered by manager of Don’t-Look-
Further Catering Services while evaluating and analysing several growth opportunities that are
available in external environment. The areas that needs to be considered by manager while
planning for its growth and development can be illustrated as follows:
Competitive advantages: In order to understand the way Don’t-Look-Further Catering Services
can retained its competitive advantages in external environment can be explained through use of
VRIO model such as;
Resources Value Rare Imitable Organize
Human
resources
Yes No Yes Yes
Technology Yes No Yes Yes
Products and
services
Yes No Yes Yes
Brand image Yes Yes No Yes

Valuable: It can be stated that Don’t-Look-Further Catering Services have valuable human
resources that are ready to give their best so that company can earn maximum market share and
profitability. Better quality of food and services maintained by company has helped in satisfying
needs of customers in the best possible manner, Brand image is also valuable as it contributes in
retaining and attracting new customers within organization (Friedmann, 2017).
Rare: From the above table it can be represented that human resources, technology and products
and services are not rare of company as it are also presented by several other organization.
Furthermore, it can be stated that brand image is rare as company delivered differentiate products
and services to various customers.
Imitable: Brand image is only element which cannot be copied while all other that is human
resource, technology and products and services can be easily imitable by several organizations to
enhance their profitability.
Organized: Effective arrangement and organization of various resources such as human,
technology, brand image and products and services of company has helped in retaining
competitive advantages.
New products and services: Don’t-Look-Further Catering Services manager by focusing on
development of products and services such as by adding organic products in food range can fulfil
needs of customers. Thus, manager of company by focusing on innovating its products or
making improvement is able to build strong brand image (Liu and et.al., 2020).
Identification and mitigation of risk: There are various risk associated with business which
needs to be mitigated so that company can grow and sustain for many years. Such as:
Financial risk: For effective operation of Don’t-Look-Further Catering Services, there are
various financial resources that company will require. So, high financial risk can be mitigated by
manager through effectively evaluating the outcome it can gain from particular investment.
Competition risk: Another risk associated with business is competition risk as there are various
competitors in external environment that have more qualitative products and services. So, Don’t-
Look-Further Catering Services, in order to mitigate competitive risk needs to focused on
differentiating its products and services to make customers happy and satisfied.
Collaboration: Moreover, it can be stated that manager while planning for growth needs to
considered collaboration or joint venture in order to enter into international market. Don’t-Look-

Further Catering Services by forming joint venture with another companies can easily expand its
business by sharing its overall risk and profitability (Dahle, Reuther, 2019).
Evaluation of growth opportunities by making use of Ansoff Growth Matrix
There are various growth options which could be utilized by company while expanding
its business operation in international market. Ansoff growth matrix is an effective tool that is
used by firm to analysis and plan effective strategies that could be used for benefit of
organization. Market development, market penetration, product development and diversification
are four alternative strategies that can be used by organization to achieve its end goals. Such as:
Market Penetration: It is strategy in which company plan to expand its business operation in
exist market by making use of existing products and services. So, Don’t-Look-Further Catering
Services through providing various promotion offers to customers can attract existing market
with existing services (Domadenik, Koman and Redek, 2019).
Product development: This is second strategy that emphasized on introduction of new products
or services in existing market therefore Don’t-Look-Further Catering Services through making
changes in its services can fulfil its customers needs. Such as providing necessary information on
official sites so that people can be aware of services and can take right decision.
Market development: Moreover, it is another strategy that could be used by company to grow
and expand its business operation in international market. As company through making use of
digital marketing techniques or forming joint venture can easily grow its operation and attained
end objectives.
Diversification: It is last strategic growth option for Margaret Millions that involves higher
amount of associated risk as company is planning to enter into new market with new products or
services. Such as Don’t-Look-Further Catering Services manager by conducting proper market
research can minimum associated financial risk to large extend and grow its operation worldwide
(Desai, 2018).
Task 2
Assessment of various sources of funding that can be used by business
Funding is the action of providing resources to business enterprises. This is normally in
the form of money and also take in the variety of efforts or time period from a structure (Özemre,
Kabadurmus, 2017). There are different points of funding which includes credit, venture capital,

donations, savings, subsidies and taxes. Funding contributes their share towards the maturation
of business by intensify the level of start-up according to the advanced level of contest in the
corporate world. Therefore, funding activities should be utilized in order to stablish the start-up
business. The main sources of finance for growth includes:
 Bank Loans: Banking company debts are the most ordinarily used rootage of support for
small as well as medium-sized enterprise. However, all banks offer different advantages
and offers to the business enterprises in order to take advantage of this particular source.
There are various benefits of bank loans which includes:
— Low Interest Rates
— Flexibility
— Maintain control
Disadvantages include:
— Complicated process
— Collateral
— Requires profitability
 Crowdfunding: It is an accumulation or use of small amounts of capital from numerous
individual to finance a new business enterprise or venture.
The advantages of this source includes:
— Fast way to raise finance
— Valuable form of marketing
— Track the progress in detail
— Alternative finance option
Disadvantages include:
— Construction of curiosity before the task establish
— If do not reach to the funding target then finance will be returned to investors
 Peer to peer lending: This source enables single one to acquire debt straight from other
individuals, without including any financial institution as middleman.
The advantages of this particular source of finance includes:
— Entrepreneur is able to access lower interest rates
— Another option of loan for traditional lenders
— More flexible than traditional loans

Disadvantages includes:
— Still require passing credit check
— Need to pay application fees
From the various sources explained, it has been analysed that Bank loan is the suitable
option for “Don't look further catering services” because the loans offered by banks are highly
secure in nature with proper written work involved. However, the other two sources have some
negative impacts and can be used up to extend only. As crowdfunding requires initial investment
in marketing their products to attract the financiers and the peer to peer sources are also not that
much efficient if there is a dispute occur at the time of working (Pahl, 2018). Thus, while starting
up new business and when the finance required, Bank load is the efficient source to manage the
funds.
Task 3
Development of business plan
— Executive summary
The marketing plan of “Don't look further catering services” includes the improvement
of digitalization of business in order to expand the service area and to approach wide range of
customers. It has highlighted various key points related to future actions that company will take
in order to sustain its competitive advantage in catering services.
— Vision of “Don't look further catering services”
The vision of catering service company is to bring people collectively and have an
optimistic impact on customers, geographical area and society. Company wants to become a
leading provider of quality delicious food and perfect customer services by contribution various
and negotiable services with consistence along with effective display that will parting long-
lasting impact in a manner that no individual have a need to look further for any other catering
services.
— Mission of catering service company

The mission of the business includes providing excellent services, quality delicious food
and a passionate team to their clients. Their mission is to deliver friendly and professional
experience that brings the customers vision to life and creates powerful memories for lifetime.
— SWOT Analysis
Strengths
 Personalization of quality services,
food and environment to provide
ultimate customer satisfaction.
 Ability to concentrate on the clients'
goal of the event.
 Wide range of event designs available
to serve various options to customers.
 Flexibility to customers desire to
implement changes according to them.
Weaknesses
 Availability requirement throughout the
year creates huge demand of staff and
kitchen reduces quality output.
 Difficulty in finding highly skilled and
experienced staff.
 Edits of contracts will be implemented
until the day of the event.
 Limited marketing budget to develop
brand awareness.
Opportunities
 Growing market with significant
percentage.
 Growing demand.
 Freedom to develop services.
 Implement changes.
Threats
 Existence of competitors.
 Cost of training.
 Change in rules and regulations.
 Increase in price inputs.
— SMART Objectives
 Achieve 500 customers 'contact us' interpretation via organic food hunting traffic by the
end of the fiscal year.
 Cut down bounce rate from pay-per-click traffic beneath 50% across all advertisements
by December.
 Addition of average order value of internet site gross sales to £50 per consumer by the
last of the quarter.
 Increase active customers at least once a quarter to 200,000 in a market space.

— Segmentation, Targeting and Positioning of “Don't look further catering services”
 Segmentation
Segmentation of “Don't look further catering services” includes middle class clients which does
not have huge amount of income and recognizes the services offered by the catering service are
expensive so for that kind of customers, catering service company tries to minimize expenses
incurred in the event and made it appropriate according to the budget of middle class section
customers. Another segmentation includes upper class clients who will willing to spend whatever
it takes to throw a high end function (Lu, Zhou, 2018). Basically, this group of people are
characterized by a wealthy income families and typically only enjoys the planning of these
events.
 Targeting
The target market strategy of catering business will not be importantly contrasting to address the
two different groups. Both groups, irrespective of income feature typically belongs to the same
group of religious assemblage. Therefore, to limit the various groups of people do not necessitate
extra efforts and strategies. However, it will only require different services menu offerings
needed to satisfy different groups of society in which the “Don't look further catering services”
offer their work (Pereira, Aires-de-Sousa, 2018). Moreover, this catering service company
targets middle class customers to expand their business.
 Positioning
Don't look further catering services will place itself as a progressive, advanced quality supplier
as well as acknowledge for specific and superior service offerings. By making client satisfaction
a presidency, over time, local consumers will come to appreciate the attention that their needs are
fulfilled and thus form a long-lasting relationship. The company other competitive border is their
organic cuisine approach to their clients (Feter, 2019). The catering service provider taking an
advantage of their knowledge of organic food and innovative decoration ideas in event planning
for customers. Thus, to target suitable clients, the caterer wants to adopt various digital
marketing techniques in order to attract more clients towards their services.

— Tactics of catering services offered by Margaret
 Product: As it is the highly specialized catering business in Lincolnshire, Margaret who
is the service provider of this catering firm offered good quality of organic food products,
wines and spirits from very high quality suppliers and uses a very high quality plates,
cutlery, glassware and table linen in the events managed by the company (Dyllick, Rost,
2017).
 Price: In order to attract more customers towards their business, Margaret chooses to
offer moderate prices of their products and services offered. Price has the power to which
greatly influence customers and has a capability of attracting or repelling them. If the
prices are high, only upper class customers are likely to attract towards the business while
if the prices are low customers may able to question the ability of the service company.
Therefore, service provider adopts moderate pricing strategy in their business.
 Place: Place refers to the distribution of services platform and in this catering service, the
Margaret adopts various online and offline platforms through which the customers are
easily able to attract more business. Clients are easily able to search various options of
event planning, themes and variety of food and beverages items online as well.
 Promotion: With the help of effective social media marketing techniques, effective and
impressive content, images of events, different themes of functions attract more
consumers towards their business of catering. With the help of different promotional
channels, the caterer is able to enhance awareness on its targeted audience about the
availability of their services and products in the market place (Ortiz-Álvarez, 2018).
 Physical evidence: It can be stated that company by focusing on providing better
customer services has created strong brand image in mind and heart of maximum number
of customers.
 People: The catering service company includes highly skilled employees who are able to
attract more clients towards their business operations and contribute their maximum
towards the efficient running of the business in profitable manner.
 Process: Margaret distributes their work in efficient way so that each and every
employee know their task in appropriate manner which contributes their maximum in
completion of events in an effective and proper manner which helps to satisfy the needs
and wants of consumers.

— Budget
Expenses Cost in £
Digital marketing 2500
Operations investments 2000
Campaigns 1000
Raw material 300
Miscellaneous 200
Total £6000
— Action Plan
Activeness are the execution of schemes and plan of action. Actions convey existence to
a company's plan making it down-to-earth and functional. In the business of event management,
strong leadership and planning skills are highly required. For this the manager of the company
allocate period, resources and personnel in strategical manner to meet desired goals (Schepker,
2017). Task has been properly assigned to concerned authorities after taking into intellection the
skilfulness and ability of the manpower available.
— Control
Without power mechanism, digital marketing is worthless. The control process includes
or validates the success of all the pre-defined steps. It includes activities after taking into
consideration the activities of competitors as well (Garayoa, Abundancia, 2017). With the
effective measures of strategies managers will take corrective actions if required and necessary
to mold according to achieve ultimate goals of the company.
Task 4
Assessment of exit and succession strategies along with its benefits and drawbacks
The owners of the organization spend their entire life in creating and construction of the
visual modality, processing the business, adjusting to market evolution and riding out of the
company's disturbances. Exit and succession strategies is a time to settle down, retire or just

move away from the day to day operational activities. There are number of departure and
sequence of strategies that can be considered as follows:
 Direct succession: This strategy includes careful planning of exit and succession from
the business. This typically, involves passing on the company to a family member,
partner, an employee, a group of partners while building a bridge for other person to
successfully assume over the key roles in the business. For doing such kind of practice,
the first and foremost action is to make sure that the company can continue to run
effectively without the previous owner of the company.
Advantages Disadvantages
1. The continuity of business
2. Transformation and building of trust
factor.
3. Great way to provide for the children's
future.
4. Simple to complete the transition.
5. No need to search of external buyers.
1. Not all transitions to the next generation go
smoothly.
2. May arise conflicts among family members.
3. Tax implications.
4. Strict rules occurred.
 Selling the business: A business can be sold-out to family members, partners or to
employees and third parties as well. Third party income includes even competitors.
Development of turn-key business activity schemes will allow for an easy turnover of
operations.
Advantages Disadvantages
1. Pay well in context of business.
2. Employees are people who know the
company very well.
3. Avoidance of long term tensions about
the business.
1. If employee take over the firm, high amount
of capital required.
2. The company who buys the organization
might not take care about the goals and values.
3. Sometimes have to sign non-compete
agreements.

 Just shut it down: Sometimes it is the best option to wind up the business, cash out,
neutralize assets and move on. This scheme starts taking the money out of the institution
primal in bigger amount over time through ever-increasing strategies.
Advantages Disadvantages
1. It is a simple and clean solution
2. No need to worry about negotiation.
3. Quick way to exit a business.
1. Not able to receive full value of the
company.
2. Reputation, employees, relationships, etc.
are hard to liquidate.
3. Buyers are aware about the situation that the
owner needs to sell it urgently and thus take
advantage of it.
From the various exit and succession strategies explained in detail above, it has been
interpreted that Direct Succession of business is the best option for an owner to exit from the
organization as it includes various good things such as business continuation, transformation of
responsibility, building trust image and factor among employees, easy to adopt this action and no
need to search for external buyers while other two strategies have some negative issues such as it
highly affects the trust factor among the employees as well as affect the brand image of the
company in market space (Ali, 2019).
CONCLUSION
From the above report it can be concluded that there are alternative growth opportunities
which can be used by companies to retain their market share for many years. In this study the
marketing plan of “Don’t-Look-Further Catering Services” has been made in order to achieve
efficient goals of the company with the help of effective digital marketing. Moreover, it can be
summarized that there are alternative sources through which company can arrange financial
resources to meet its expenses and maintain its market share.

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