Planning for Growth: Analyzing Growth Opportunities and Fundraising Sources for Hummingbird Bakery

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
P1. Analyse the growth opportunities justify in context to company.........................................4
P2. Ans off's growth matrix for measuring growth opportunities...........................................7
P3. Define various sources of raising funds and state it's benefit& drawback...........................9
P4. A business plan is made for growing the business ..........................................................10
Gantt Chart .........................................................................................................12
SWOT Analysis........................................................................................................................13
P5. Explain exit or succession options for a small business with its advantages and
disadvantages............................................................................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Planning for growth is a framework used in firm and companies in order to analysis the
internal and external factor for growth possibility. This also considers the several sources of
raising funds and investment which will help in upcoming years. The written report is based on a
Small to medium size business named Hummingbird bakery. SME ( small or mid-sized
enterprise) is the businesses that have revenue, asset & employees less than a threshold limit.
The Hummingbird bakery is a SME – small / medium size enterprise of UK, they offers
American style handmade and freshly baked cakes, cupcakes, pies, desserts, sweets and
cheesecakes. This bakery was founded in 2004 at London, UK. To grow the firm and lead in the
market they have to make the business strategy. This report determines the opportunity for
growing the businesses and capturing the market, the sources to acquire funds and the business
plan to survive in the market.(Olmos, Tadeo, Vlachogiannis, and et. Al, 2020).
MAIN BODY
P1. Analyse the growth opportunities justify in context to company.
There are several factors to be consider during the planning for growth and it involves the external
and internal factor, competitive advantages and physical process. With the context of The Hummingbird
Bakery, PESTEL analysis and porter's generic strategies are explained below:
PESTEL Analysis
 Political Factor – Political factor are handled or tackle by government. It includes the
government related issues- increase in tax rate, modification in policies and many more. With the
rise in taxes, the prices of the hummingbird bakery is increased which affects the bakehouse, as
they are losing their customer.
 Economical Factor – Economical factor is concern with the economic situation of country. The
depression phase, boom phase, deflation and all other business cycles are included in this. The
post COVID-19 pandemic affects the purchasing power of consumer as the prices was
increasing so the sales of bakery decrease.
 Social Factor – This factor refers to the society culture, taste and preferences of
consumer, behaviour and social trends. At present the customer's wants organic, fresh and
healthy products. Hummingbird bakery offers the bakery items and includes the healthy

product. Such as they use jaggery instead of sugar, producing the cake base made up of
whole wheat and gluten free products(Park and LaFrombois, 2019).
 Technological Factor- This factor plays an important role in business as this affects the
firm in production and innovation. By using the technology the Hummingbird bakery
serve the customer in effective way, the infrastructure attracts the customer's and it helps
to save time. With this, to enhance customer base they provide the QR Code at every
table for payment and menu so the customer can easily order from their table and make
payment also provide the Wi-Fi facility.
 Environmental Factor – This factor is concerned with all the components of
environment. It includes the natural disaster, climate change, pandemic etc.
Hummingbird bakery is engaged in 3R's of waste management – reuse, recycle and
reduce. The company does not use those product which harms the environment. They
stop using plastic bags also.
 Legal Factor – Legal factor includes laws and legal framework imposed by official
authorities. The Hummingbird bakery follows all the rules and regulations, policies
imposed by ministers and governments to perform the smooth functioning.
Porter's Generic Strategies
 Cost leadership theory – Cost leadership theories main focus is on decreasing the cost.
To lead in the market and attract the customers to earn profit, company usually decrease
their products prices. With the view of reducing cost of products the Hummingbird
bakery wants to expand their business in other countries also. With this, they can attract
the customer and make the strong customer base, and lead in the market.
 Differentiation theory – This theory tells that to improve the customer base, firm has to
be unique in style it means produce some thing unique which catches the attention of
customer. For this Hummingbird bakery uses the American style of products in Dubai
and can also use the different technologies to compete with their rivals.
 Cost Focus – In this theory the focus is on the specific small market. While considering
the small market the main focus is on prices. The Hummingbird bakery can add some
more items in their menu at reasonable prices to get the competitive advantage. They
should offer good quality product at low prices(Lahindah, and Siahaan,2018).