Planning for Growth in Marshfield Bakery Limited

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1..............................................................................................................................................3
P1. Analyse growth evaluation, opportunities along with justifying consideration...............3
P2. Evaluation for the growth opportunities and applying Ansoff Growth Vector Matrix....5
M1. Options of Growth range within analytical framework to understanding competitive
advantages..............................................................................................................................7
D1. Critically evaluating specific option for growth pathway...............................................9
Task 2............................................................................................................................................10
P3. Assessing potential sources for funding for business along with benefit & drawback..10
M2 Potential funding source with justification for adoption................................................12
D2 Potential funding sources with better argument.............................................................13
Task 3............................................................................................................................................13
P4 Business plan for better growth including financial information to scaling business.....13
Business plan through knowledge & understanding business objectives formulation.........19
Task 4............................................................................................................................................19
P5 Assessment for exit & succession option for the small business with benefits & limitation
..............................................................................................................................................19
M4 Exit/succession option for small business......................................................................21
D4 Exit/succession options within small business including justifycation that support
implementation.....................................................................................................................21
CONCLUSION.............................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
Planning for growth is a strategic business activity and systematic record of ambitions for
enhancing future business. It is an organisation’s plan for better opportunities and for
overcoming current and future challenges to realize its objectives for expansion. It states about
the various effective business tools used to formulate effective plans for increasing high
productivity (Cornuel, Thomas, and Wood, eds., 2022). Every business has their own plans and
they procreate different types of strategies and ideas from different sources to enhance the
outcomes positively. It is highly essential for business because it sets targets and business goals
and clear strategies for reaching them. As per above report the selected organisation is
Marshfield Bakery Limited which is a private limited company. The main work of this company
is to manufacture bakery products like biscuits, cakes, pastry and their turnover has estimated
around 7 million pounds. The Ansoff Matrix growth vector is known as product/ market
expansion grid is used to evaluate growth initiatives as it work on 4 strategies like market
development, market penetration, diversification and product development (Maher and et. al.,
2021). The project describe about the business design which includes for better growth by
knowing strategic activity and financial information and also has focused on different succession
planning.
MAIN BODY
Task 1
P1. Analyse growth evaluation, opportunities along with justifying consideration
Competitive Advantage
For identifying the main opportunities for growth it is necessary to identify the main
strengths, capabilities and capacities of the organisation. The strategies that can be applied by
Marshfield bakery limited for improving profits along with mapping market threats.
 By implementing the invention and innovation of new products and services in the
market, companies can become more competitive.
 Improvement in functions, organisational processes and operations can help to improve
productivity within the organisation.
 Use of advancements like technology, digitalisation and online media can provide better
chances of growth in the market.

Porter’s generic Strategy
The strategies which is applied by porter are important for firm or business organisation to
achieve organisational goals. The strategies of Porter Generic Model are as follows:
 Cost leadership: According to this strategies the main focus of company is to target on
broad market but offer product or service at low price for maintaining the cost the
company follow two strategies the first is to reduce all other business cost and second
one is to reduce the selling price to minimize cost leadership(van der Wouden, 2020). In
the context of cost leadership Company maintain similar price as that of other bakery
company but reduce the other business cost to increase its profit margin without spending
anything extra.
 Differentiation: This strategy follows the idea to attract more customers through the
unique features of products and improve the overall sales. For proper implementation of
this strategy the firm must work on effective marketing, creating specialised products,
adding more features and re- branding of products. As for example the Marshfield
bakeries focus on uniqueness of their product by producing home-made bakery products
which attain competitive and differentiates within market place.
 Cost focus: according to this strategy the business or firm or company offers product and
services at lowest price (Volcker, 2020). It focus on specific market in order to increase
specify target in prominent manner. According to this strategy the place Birmingham is
targeted due to their market size which improves the sale in better manner. Cost
leadership could be developed by a company which could help it to improve performance
and establish its place in the market.
 Differentiation focus: in this strategy firm or business focus on niche market and offers
product and service that is unique. It focuses on features of products rather than focusing
cost. In relation to the Marshfield Bakery Company, it has proper strategy due to which
the company is able to deal with various issues in order to deal with the problems (Yaghi,
2019). That can be resolved by making use of preventive measures for better
performance.
After evaluating the porter’s generic strategy it can be obtained that differentiation can be
used by Marshfield Bakery for establishing cost focus or differentiation to attract large number

of customers. This can be done by producing highly differentiated products and serving it to the
customers at competitive rates, it is analysed that Marshfield Bakery Company should have
suitable strategy of differentiation from which high revenue can be earned & larger market area
can be captured. Marshfield bakery is SME and it could focus on providing products to all the
income groups with differentiation and cost focus which will help it to capture more prospects.
Differentiation strategy may be riskier for the business as it may lead to decline in profits, hence
a suitable cost must be calculated. Differentiation of products from competitive brands must be
attractive for customers and prospects so that larger market area can be covered.
P2. Evaluation for the growth opportunities and applying Ansoff Growth Vector Matrix
Ansoff Matrix
Igor Ansoff developed a growth vector so that an organization can attain higher
competitiveness by using strategies for growth. This is a strategy tool used by business to choose
better expansion plan for business by which they attain the high productivity and efficiency. It
also called as product expansion grid. It helps to identify the risk level with different strategies
(Vrtaňa, 2019). This matrix has 4 different growth strategies which are explained below:
(Source: What is Ansoff matrix? 2020)
 Market Penetration: In current marketplace with current offering, this strategy is used in
performing market expansion. It is a degree of measure of product or services which are
used by the targeted market as compared to estimated market value for product and
services. In another word this can be used to explain about selling of existing product in

the existing marketplace. With reference to Marshfield Bakery Company, they are also
using these strategies in existing customer for their satisfaction.
 Market Development: This strategy supports Business in their Initial phase to identify
and improve sales and increase the opportunities for current ongoing product range. It is
a process in which the organization and businesses can use to enhance their customers by
maintaining the loyalty and satisfaction towards their customers. Marshfield Bakery
Company uses these strategies to expand in global boundaries. This expansion is helping
them in achieving opportunities towards the company in order to get better sustainability
in challenging market place (Zinchenko, and et.al., 2021)
 Product Development: When new product or new innovation is planned to sell in current
market place, then this strategy is used. This strategy also works on upgrading the
existing products as it not so expensive process for product development as lot of time
and resources are saved. In context of Marshfield Bakery, they can use this strategy in
market expansion by providing new services so that they will attract new customers and
higher market portion.
 Diversification: it is growth and expansion arrangement of a business by acknowledging
new possibilities in different market and product areas. It helps the company expand
sales and profitability. This can be done by including new feature and new product and
new services. Marshfield Company will be at high risk because if this strategy leads to
failure then it will ruin the overall image (Sohl, Vroom, and McCann, 2020).
From above discussion, it can be concluded that Marshfield Company can approach towards
Market development. Through using this strategy they can generate high revenue and earn a
lot. It improves sales and increases the business opportunities in current ongoing market
conditions.
M1. Options of Growth range within analytical framework to understanding competitive
advantages
For understanding the external and internal business environment factors that can affect the
competitiveness of the industry/segments SWOT analysis, Porter five forces and PESTLE
analysis of Marshfield Bakery is provided.