Growth Opportunities and Funding Sources for Marshfield Bakery: A Business Plan for Charming Sundaes

This project explores growth opportunities and funding sources for Marshfield Bakery, including an analysis of Ansoff's Matrix, sources of funding, and exit/succession options. It also includes a business plan for introducing a new product, Charming Sundaes.

Unit 42 assessment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Growth Opportunities..................................................................................................................3
Ansoff's Matrix............................................................................................................................4
Sources of funding.......................................................................................................................5
Exit/Succession Options..............................................................................................................6
Business Plan...............................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business growth is a stage in which the business is able to reach the point of expansion
which is helpful for the organization in seeking the additional options for the generation of the
profit. For this project the Marshfield Bakery has been chosen for the organization demonstration
of the highly successful sustainable transmission for the struggling small, family founded
organization. The growth of the functions of the business life-cycle industry growth trends and
the owners to improve their desire for the equity value creation. In this project the Ansoff matrix
has been done for the analysation of the growth opportunities. This project will also explain the
different sources funding for the growth of the business. In this project the exit and succession
options for the organization has been discussed. This project provides a business plan for the
introduction of a new product.
MAIN BODY
Growth Opportunities
In the Marshfield Bakery the growth of the growth opportunities can be considered
when the business would plan to expand their business. This expansion of the organization
will be resulting in the following pros and con,
Pros Cons
This is the factor which helps the organization
in the attraction of the new customers which
are present in the new market. This is
considered to be the growth that the business
needs from the large and diverse customer base
Due to the expansion the business can face a
majority shortage of the cash which is
considered to be the factor that influences the
premises that is equivalent to the expansion of
the organizational operations.

which also helps in insulation of the business
over-reliance on a single client.
Expansion of the business is helpful for the
growth of their economies to scale that
provides the benefits which are needed for
reducing the negative impacts.
This is also the factor which has been known to
increase the capital requirement for the
business that is considered to be the factor
which influences the management of the
capital growth.
Amortization of costs occurs when a business
expands which can be said as the factor that
impacts the growth of the organization with the
spread of cost of promotion over the increased
sales.
This strategy that provides the business growth
with expansion has been known to the business
for the loss of control on operations.
This is helpful for the bakery in influencing the
market which it wouldn't be able too otherwise.
Sudden increase in the organizational
operations have been known to be the factor
which influences the quality and productivity
of the resources negatively.
Ansoff's Matrix
The Ansoff Matrix is the model which is useful as the tool that is helpful for the
organization of the Marshfield Bakery. Following are the growth strategies which are explained
in this model for the Bakery to adopt,
Market Development :
In this strategy of the business it will be focusing of entering a new market with the
existing products of the organization (Loredana, 201).
Pros Cons
Helps in expansion of the base of customers. Extra cost is incurred when the business enter a
new market
Great for increasing revenue. New competition arises in the organization for
the responding to the customer.

Market penetration :
The market is the strategy of growth in which the business tries to improve its
operations with the help of improving the productivity of the organization.
Pros Cons
Fast in diffusion and adoption of product. It includes lower profit margin possible harm
to the company's image.
Discouragement of competition. Risk of increased pricing.
Diversification :
Diversification is that strategy to be adapted by the organization in which they
provide new product with new market hence the organization starts as a new organization
in this strategy (Souza and et.al., 2020).
Pros Cons
It is a start of a new business in a new market
with lots of opportunities.
The return from this market is possibly
diminished.
It provides a broader overview of the market. It can be hard for the organization to keep up
with.
Product Development :
The product development is the strategy which allows the business in the
management of the introducing new product in the existing market.
Pros Cons
This is helpful for the creation of culture in
innovation.
The failure of the products can be with
unrealistic expectations.
It is essential for driving higher value
proposition.
External factors impact the growth.
Sources of funding
The different sources of funding which can be used by the organization in development
of their growth,
Bank Loans :

Businesses obtain the debt financing privately through bank loans which is helpful for
them to also sources new funds for issuing debt for the public. It is also known as a debt
financing which is helpful for issuing the debt securities for the corporate bonds or promissory
notes.
Debentures :
Debentures are ways in which the business is able to raise the funds which is helpful for
the organization in issuing the debentures which has a fixed rate of interest on it (Halt and et.al.,
2017). This is also considered to be the factor which is helpful for the business in the borrowing
the amount of money from the public which it promises to develop ion the future.
Angel Investors :
Angle investors are usually the high new worth of individuals which are considered to be
the ones which involves the early stages of the own money. It can be said that they are able to
influence the primary sources of funding for many start-ups which is helpful for appealing more
predatory forms of funding.
Equity capital :
Equity capital is the form of funding in which the capital is raised from the crowdfunding
platforms. This is effective for the company's securities to a number of exchange for financing
and venture capital firms.
Exit/Succession Options
Following are the options which are considered to be the exit and succession options that
impacts the business opportunities,
Liquidation :
Liquidation as an exit and succession strategy can be considered to be the factor which is
helpful for the organization in the management of the strategy which is often used by the
business in the selling the other methods which help the organization in the dependence of a
specific employee/owners of the company of an overall poor strategy.
Pros Cons
This will allow the business in the distributing
its ownership amongst the employees.
Business is not able to trade and can be
restricted from using similar name for

company.
It provides the option of buying back the
business.
Loss of jobs for employees and also directors.
Acquisition :
Acquisition is exit and succession strategy used by the business owners to help the
company in selling the business to the potential buyers. This is the strategy in which the
company takes another organization in their operations and management with the growth of the
learning opportunities.
Pros Cons
It is a very quick way of exiting the business. Cultural conflicts between the two companies
which have combined.
Best for adapting to the ways in which higher
prices can be paid for valuing the business
through an actual competitor.
Wrong company for acquiring can damage the
productivity.
Merger :
Merger has been considered to be the strong exit and succession strategy plan or
option that helps the business in getting merged with an organization which is generally
larger comparatively. In a merger the focus of the business is always on the factors which
are helpful for influencing their experience of the company and develop the strategies
required for the success.
Pros Cons
The resources and efforts of the organization
so far is able to be conserved.
Increases the prices of the products.
Enhances the market share of the organization. Creates a lot of gaps in the communication.

Business Plan
Business plan is the written document which describes in detail the ways in which the
business in able to define the objectives and also achieve the goals for the business objectives.
This is considered to be the factor which is helpful for the layout of business for the firm to
market the financial and operational standpoints.
The smart goal analysis is considered to be the factor which is helpful for the business for
Specific, Measurable, Attainable, Relevant and Time based effective process for the
establishment of the setting that is effective for achieving the goals of the business. With the help
of such analysis the business is able to understand the ways in which the organization is able to
bring growth in the organization.
Executive Summary
Business growth is the function of the business life-cycle, industry growth trends and the
owners desire for the equity value creation. Development of new business products and services
is considered to be the factor which influences the growth of the organization. This is the factor
which is helpful for the organization in understanding experiences of the learning practices.
Company Summary
Marshfield Bakery is a small medium enterprise which is manufacturer of a quality
handmade cakes, snack bars, biscuits and seasonal goods which are distributed throughout the
UK and Europe. Being a SME it has been very hard-working and effective in its performance.
Products
The products of this organization are the high quality handmade cakes that it
manufactures, snack bars, biscuits and seasonal goods which are distributed throughout the UK
and Europe. This organization will be introducing a drink known as Charming Sundaes in its
menu for the customers to enjoy.
Market Analysis Summary ;
In the UK Bakery market the growth has been predicted to a total worth of £3.9 billion.
This shows the total volume of the present approximately just under a 4 billion units which is
equivalent of almost 11 million loaves and packs solve every single day. The soft drink market
which the company is entering is in comparison to the Bakery market is much more competitive
and has been forecasted to grow even higher in the future.
Strategy and Implementation :

For development of the different strategy that the business will use for the growth can be
made with the help of porters generic strategies.
Cost effective :
The cost effective strategy is the strategy in which the bakery will be focusing on
producing this product with the least expected costs. This is considered to be the key towards the
factors for achieving profit in the organization. For this organization the development of the cost
effective strategy will include increasing its product in order to generate high profit with less
fixed expenses. For the preparation of Charming Sundaes being cost effective would be through
preparing this drink effectively in comparison to the other competitors. Being cost effective for
an organization can be considered to be the factor which helps the business to increase their
profits.
Differentiation :
Differentiation is also the concept which is considered to be the strategy which is known
to be responsible for the growth. It is also the factor that influences the ways in which the
organization will bring growth of sales in the business through differentiation in the products.
Having a different product in comparison to the competitive market is a factor which is
considered helpful for the business growth. Therefore, the company will be trying to make this
Charming Sundaes different from the already existing drinks of the market. This is going to be
the strategy which is going to provide the organization the growth which is essential and
effective.
Mixed :
It is the mixture of two or more strategies which provides the organization with the
success that is helpful for the business growth and opportunities which is required for the
development of success. Hence, the focus of the business in this strategy is to bring the growth in
the organization with being both cost effective and differentiation. Although, having little of
every thing can be the reason due to which the business cannot be good in any of this
organization.
This organization will be focusing on the Mixed strategy in which both the cost and the
differentiation is going to be used due to benefits that the learning practices. The growth of the
business can also influence the profit it is able to make. This bakery with the adaptation of the
mixed strategy will be able to increase its market share.

MANAGEMENT SUMMARY :
In this organization the people which are going to be responsible for company's
management are,
Head chef-
This is the individual who is responsible for controlling and directing the food
preparation process and any other relative activities.
Commi level chef :
This is the chef who is responsible for working under the chef de parties in the
commercial kitchen for expanding the duties which is relevant to the assisting the parties for
meal preparation, receiving the deliveries and rotating stock.
Helpers :
Helpers are considered to be the ones which allows the operations to run smoothly to
provide the growth that is required for the bakery and its growth.
Service Boys :
They are the ones responsible for providing the services related the customers and other
communication between the customers and the service managers.
FINANCIAL PLAN :
Sales Revenue 800000
COGS
Cost of Sales 540000
Wages 25000 565000
Gross profitability 235000
Indirect expenses
Rent 28000
Cooking expense 11000
Energy costs 15000

waste management
expense
13000
Customers service
expenses
50000
General Expense 25000
marketing and
promotional
expenses
40000 182000
Net profitability 53000
CONCLUSION
With the help of this project it can be said that the growth of Marshfield Bakery can be
considered to be the factor that is considered to be the key determinant for the growth of the
organization. In this project the factors which are able to influence the business decision-making
has been discussed. This project has been able to analyse the growth matrix for the business in
the management of the organizational operations. In this project the exit and succession options
of the business has been analysed for this bakery. The business plan for the Charming Sundaes as
an innovative product for the expansion of the business has been also made for better analysation
of performance.

REFERENCES
Books and Journals
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Challenges. Journal of Case Research. 11(1).
Halt, G. B. and et.al., 2017. Sources of company funding. In Intellectual Property and Financing
Strategies for Technology Startups (pp. 11-33). Springer, Cham.
Karjalainen, A., and et.al., 2018. Concentrations and number size distribution of fine and
nanoparticles in a traditional Finnish bakery. Journal of Occupational and
Environmental Hygiene 15(3). pp.194-203.
Loredana, E. M., 2017. The use of Ansoff matrix in the field of business. Annals-Economy
Series. 2. pp.141-149.
Mitreva, E., Gjurevska, S. and Gjorshevski, H., 2018. Optimization of the business processes in
a company for manufacture of bread and bakery products in Macedonia. Tem Journal.
7(2). pp.439-445.
Souza, A. and et.al., 2020. Business plan analysis using multi-index methodology: Expectations
of return and perceived risks. SAGE Open. 10(1). p.2158244019900171.
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