Planning for Growth: Examining Factors and Opportunities for Marshfield Bakery

This report examines the growth opportunities for Marshfield Bakery, a small to medium-sized enterprise in the UK. It includes an analysis of the main factors for measuring growth opportunities, the use of Ansoff's growth vector matrix, and sources of funding for growth. The report also includes a business plan for growth and exit or succession options for the company.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK – 1.........................................................................................................................................3
P1. Examine main factors for measuring growth opportunities in context to company.............3
P2. Use Ansoff’s growth vector matrix for evaluating opportunities for growth.......................7
M1. Explain growth option using different frameworks in context to company........................9
D1 Evaluate path for business growth, considering risk and how it will be mitigated...............9
TASK - 2..........................................................................................................................................9
P3. Identify sources of funding and state it's benefits and drawbacks........................................9
M2. Measure potential sources of funding and justification why company should adopt it.. . .11
P4. Create a business plan for growth which involves financial content and strategic
objectives for scaling up enterprise...........................................................................................11
P5. State exit or succession options for a small business along with its advantages and
disadvantages............................................................................................................................15
CONCLUSION..............................................................................................................................18
REFERENCES:.............................................................................................................................19
Books and Journals...................................................................................................................19

INTRODUCTION
Planning for growth is performed by business units in order to identify and evaluate it's
internal as well as external growth opportunities. With this, its also helps in finding out various
sources of investment which is beneficial for companies in upcoming years. This report is based
on a Small to medium sized enterprise named Marshfield bakery. SME or small or medium sized
enterprise are the business units having turnover of less than £25 million with less than 250
employees and having gross assets of less than £12.5 million (Morison, 2020). Marshfield bakery
is a SME of UK, who are involved in producing handmade cakes, biscuits, snacks and seasonal
products. They are having 45 employees with a annual turnover of £2 million. In order to take
growth in market rapidly then need to make plans. This report includes the growth opportunities
for company along with the sources from where funds can be acquired and lastly a business plan
and ways through which it can exit from market.
TASK – 1
P1. Examine main factors for measuring growth opportunities in context to company.
The numerous amount of factor should be considered at the time of measuring growth
opportunities of company, it's growth options, competitive advantages and development path. In order to
explain it PESTEL analysis and Porter's Five Forces models are performed.
PESTEL Analysis
 Political – Political factor are managed by government. Due to increase in tax rates, prices of
Marshfield bakery products are increasing this results in loosing customers base.
 Economical – Economical factor is related to economical condition of any country. After Covid –
19 pandemic inflation was high, this results in reducing purchasing power of customers and sales
of Marshfield bakery continues to decline.
 Social – Now customers are shifting towards healthy products and Marshfield bakery is
involved in producing bakery products using healthy substitutes. Sugar is replaced with
jaggery, cake base in made up of whole wheat flour even gluten free products are also
made by company.
 Technological - With the use of technology Marshfield bakery has designed a hi- tech
infrastructure which is seeking the focus of customers. With this, to enhance customer
base they are providing free Wi-Fi facility.

 Environmental – These factors are related to all aspects of environment (Li and Et. AL.,
2020). Marshfield bakery is involved in follow three R's of environment that is reduce,
reuse and recycle. With this, they do not make use of any product which is harmful for
environment.
 Legal – Legal factor includes rules and regulations imposed by legislative bodies. By
following all rules, acts and policies imposed by legislative bodies Marshfield bakery is
able to perform it's functions smoothly.
PESTEL framework : Strength and Opportunities for Marshfield Bakery -
STRENGTH
 PESTEL analysis, helps Marshfield bakery is understand the risk and opportunities
involved in external environment.
 It will help Marshfield bakery in preparing effective strategies for achieving growth in
their businesses.
OPPORTUNITIES
 With the help of latest and upgrade marketing tools and techniques such as digital or
social media marketing Marshfield bakery can avail more customer base. Producing healthy products along with serving it in eco-friendly or sustainable products
will create an new opportunities for Marshfield bakery.

Porter's Five Forces Model
 Competitive rivalry – Bakery industry is a growing industry which results in Marshfield
bakery is having a lot of competitors that is why they are not able to collect large
customer base which is affecting there turnover.
 Bargaining power of buyers – By keeping the needs and wants of customers in mind
Marshfield bakery is involved in producing heathy bakery products (Wey, 2019). This
helps them in attainting focus of customers and enhancing customer base.
 Threat of new entrants – With the implement of lot of restrictions by UK government in
issuing licensing it is bit difficult in made, otherwise a lot of people are reedy in take
entry in this industry.
 Bargaining power of suppliers – Marshfield bakery is one of the leading manufacturers
in UK, this is why they are having a lot of suppliers and nominal rates are charges by
them. Threat of substitute product – A lot of substitute products are available in the market,
so in order to get competitive advantages Marshfield bakery has kept it's price low with
this a high quality produced are produced by them.
Porter Five Forces Model : Strength and Opportunities for Marshfield Bakery -
STRENGTH
 With the help of this model, it is easy to identify what kind of strategies could be framed
by Marshfield bakery in order take growth in market.

 Marshfield bakery can evaluate it's operations through which they can get competitive
advantage.
OPPORTUNITIES
 By adding some uniqueness in it's existing products, Marshfield bakery will be able to
acquire focus of customers. To beat the competition, Marshfield bakery can frame new planes and strategies.
VIRO Analysis
Valuable
 Customer services or after sale services is the important factor for customer retention.
 Good taste with high quality at reasonable prices makes Marshfield bakery valuable.
Inimitable
 Producing healthy product is easy to inimitable, but provide a good taste is not.
 Preparing Hi- tech interior requires a lot of cost.
Rare
 Along with good taste Marshfield bakery is using healthy material to produce bakery
items.
 An hi- tech interior is being provided by Marshfield bakery.
Organised
 The customers of Marshfield bakery are loyal and company also tries to improve
customer satisfaction.
 The environment of bakery is very relaxing.

VIRO Analysis : Strength and Opportunities for Marshfield Bakery -
STRENGTH
 Evaluating and eliminating unnecessary cost and resources of Marshfield bakery is
possible with the help of this model.
 Marshfield bakery can find out innovative ideas that can't be easily imitated.
OPPORTUNITIES It is possible for Marshfield bakery to be a market leader.
SWOT Analysis
Strengths Weaknesses Opportunities Threats
 Marshfield
bakery,
keeps needs
and wants of
customers in
mind before
producing
products.
 A unique
infrastructur
e is being
framed by
Marshfield
bakery that
attracts the
customers.
 Marshfield
bakery is
serving it's
products at
limited places,
this results in
having limited
customer base.
 High rate of
competition is
found in this
industry, which
will affect
performance of
Marshfield
bakery.
 Marshfield
bakery can
make use of
social media
marketing in
order to create
awareness
among the
customers.
 Using healthy
ingredients by
Marshfield
bakery helps in
increasing sale
of company.
 Many
competitors
of
Marshfield
bakery are
trying to
imitate there
products.

STRENGTH
 This will help Marshfield bakery in analysing it's internal operations.
 Marshfield bakery can take timely measures against it's threats.
OPPORTUNITIES
 Marshfield bakery can make use of technology in order to increase customer base. Marshfield bakery will be able to make strategies and decide it's long term goals.
Porter Generic Frameworks
 Cost leadership theory – Cost headship theory focuses on reducing cost of the company.
In order to reduce cost of products Marshfield bakery has to expand in other countries too
(Hu and Et. AL., 2019). With this, their customer base will be increased and they have to
produce large products and this is how they will be able to attain economics of scale.
 Differentiation theory – This theory states that in order to increase customer
engagement it is important to add some uniqueness in product. For this Marshfield bakery
can make use of latest and upgraded technology and can stand out among it's competitors.
 Focus strategy – A specific segment is being targeted under this strategy. Marshfield
bakery can get competitive advantages by adding some more items in it's portfolio at
reasonable prices.

 Differentiation Focus – This forces of identifying needs and wants of customers.
Marshfield bakery should listen to the feedbacks provided by it's customers to enhance
customer satisfaction.
If Marshfield bakery, focus of cost leadership theory, then they will be able to capture
large market share along with achieving economics of scale.
STRENGTH
 With the help of this strategy Marshfield bakery will be able to lead market.
 Effective cost reducing techniques could be used by Marshfield bakery by formulating
strategies.
OPPORTUNITIES
 In order to increase revenue of Marshfield bakery they need to diversify.
 Use of technology will make Marshfield bakery in taking a rapid growth.
P2. Use Ansoff’s growth vector matrix for evaluating opportunities for growth.
Ansoff's growth matrix helps businesses to understand which path they should select in
order to grow. Market penetration – When companies wants to increase it's market share in existing
market they use this strategy (Wang and Et. AL., 2019). Marshfield bakery can add some

more healthy products in it's existing portfolio through will customer base will be
enhanced.
Advantages
 Increase in customer engagement. Company will be able to generate more revenue.
Disadvantages
 Company will loose customers, if they are not satisfied with new innovation.
 Company have to face a big loss if they are not capable in seeking customer attention. Market Development – When companies wants to expend in new market or country it is
termed as market development. As Marshfield bakery is panning to expand in Spain and
Canada they are using this strategy.
Advantages
 Helps in growth of business. Foreign direct investment will be increased.
Disadvantages
 It's difficult to understand needs and wants of people belonging to different nation.
 Huge cost and risk is involved in it.
 Product Development – Introduction of new product in existing market is product
development. Marshfield bakery have launched new products in it's existing product
portfolio.
Advantages:
 By launching new products, customer attention can be attained. Customers will get wide range of choices, which helps in getting competitive advantage.
Disadvantages
 It gives priorities to strategies over the competitors.
 High risk of failour is involved by not paying attention towards competitors strategies.
 Diversification – Growth in market capitalisation by offering new product in new market
is diversification.
Advantages:
 With this Marshfield bakery is able to capture wide range of market.
 Profit will be availed form different nations.

Disadvantages:
 A greatest loss may occur because maket and product both are new. Image of company will be negatively impacted.
Growth opportunities for Marshfield Bakery
 Mergers – When two companies comes together in order to achieve a common goal is
merger. With collaboration of other business units, Marshfield bakery will be able to
avail more resources. Along with this, customer base will also be enhanced.
 Acquisition – When huge companies take over all small companies it is considered as
acquisition. Decision making power and rights over all roles & responsibilities are also
transferred.
 Franchising – The company get right to franchisee to use name of company. The
franchiser do not have to bear any cost, all expenses or cost is incurred by franchisee
(Olesen, 2022). With this, franchisee paid amount to franchiser in the name of royalty
changes. It is the best way that Marshfield bakery can use in order to expand.
M1. Explain growth option using different frameworks in context to company.
In order to take growth in businesses it is necessary for businesses to evaluate all the risk
involved in it on prior basis. Merger, acquisition and franchising Marshfield bakery can take growth in
it's business. This can be useful strategies to reach out among new customers.

D1 Evaluate path for business growth, considering risk and how it will be
mitigated.
With the help of different models Marshfield bakery can easy evaluate where they can
grow and where risk is involved. By taking timely actions against them and framing a proper strategies
the company will be able to find out solutions for each problem.
TASK - 2
P3. Identify sources of funding and state it's benefits and drawbacks.
The sources through which funds can be availbed for businesses are stated below-
 Bank loan and overdrafts – Bank loans are the quick souce of funds that is easy and
quick to access (Bridge and Dodds, 2018). In case business wants loan of less amount
then it is not required to keep security with bank, but in case they want to avail loan for
huge amont then it is mandotory to keep securites with bank.
Advanatges
 It is easy to avail loan with this source. Huge funds can be taken easily by having good cebil score.
Disadvantage
 A high amount of intrest is charged when the due of overdraft are not paid on time.
 SME do not have huge things to keep it as a securtiy. Crowd funding – Funds are collected from large number of people, small sum in being
contributed by them.
Advanatges
 It is fast way to collect fund. By sharing ideas to different people for collecting fund may provide their view and ideas
too.
Disadvantage
 If company is not able to return money then it will affect it's image among lot of people.
 Idea given by owner can be copied by them. Peer to peer lending – It's a technology connectivity through which the companies can directly
avail funds from invstors.
Advanatges

 This is the easiest platform to use. Companies get lot to investors at single platform, from their they can make choices.
Disadvantage
 This platform is not much secure.
 Due to lot of investors it's difficult to decide who is liable investor. Angle & venture finance – They are investors having good income and make investment in
businesses of differnt people.
Advanatges
 For start up companies it's a they are good source for raising funds. Startup business will get advice from expert investors.
Disadvantage
 It's harder to find investors for small companies.
M2. Measure potential sources of funding and justification why company should adopt it.
It has evaluated that, Marshfield bakery can adopt loans from banks as it is easy to avail
facilities from bank (Horn, 2019). If the company want small funds then they don't even need an
security to keep with bank. Also it is a secure source of taking funds. This will also increase brand
image of company and for next time they can raise fund easily.
P4. Create a business plan for growth which involves financial content and strategic
objectives for scaling up enterprise.
Chosen organization name
For this particular business plan Marshfield Bakery is the chosen business unit.
Executive Summary
Marshfield Bakery is a UK based small to medium-sized enterprise which is a leading
manufacturer of bakery items (Kearney, 2019). They are involved in producing high quality hand
made bakery products.
Background of company
Marshfield Bakery has started it's operations from 1984, currently having 45 employees,
who are skilled and well trained.
 Vision – Produce high quality and taste of products at reasonable prices.
 Mission – Along with good taste company aims to produce healthy products by keeping
needs and wants of customers in mind.

 Objective – The companies main aim is increase 25% revenue by increasing customer
base along with adding new items in it's portfolio.
Nature product services
The items produce by them includes pizza, bread, cake, sweets, chocolates, toffees,
doughnuts, biscuits and seasonal food items.
Stakeholders
Stakeholders are the one who directly or indirectly involve in operations of business.
Stakeholders includes suppliers, employees, investors, government and customers. It is not
possible to perform business operations without a team of effective employees (Jafari, 2022).
Customers are the one for whom products are produced so Marshfield Bakery gives almost
priority to needs and wants of customers. This is how each and every stakeholder contribute
towards success of organization.
Capital funding
For opening a new outlet Marshfield Bakery is going to raise a amount of £20K. Various
sources of funds will be adopted by company in order to raise capital for expansion. As per the
decision of Marshfield Bakery they are going to adopt bank loans and angle ventures. The reason
behind selecting these sources is that it is easy to avail loan through banks and the company
have further good business plan, which will increase engagement of investors towards their
business.
Sales Target
The set target of Marshfield Bakery is to generate a revenue of £50K in upcoming
financial year.
Operational plans
Operational plans implies the plan made by company in regard to operations they are
going to perform. For their new outlet they have evaluated that they need new hiring for finance
and sale department. For operational department they will transfer employees from other outlets.
For customer awareness and generating traffic, company will make use of social media
marketing.
Resources plan

Initially, Marshfield Bakery will make investment on it's fixed assets such as refrigerator,
furniture's and ovens. Then they will focus on variable expenses such as packaging and
delivering cost. They will also focuses towards purchasing raw material at low prices.
Technology plan
With the use of latest technology Marshfield bakery can improve it's productivity and
efficiency. Use of digital marketing tools and social media marketing the company can avail
focus of more customers. Along with this, use Search Engine Optimization ranking of the
company could be improved and chances to appear on top most pages will be high.
Risk Factors
As per the rules and regulation imposed by UK government, the companies can use any
item which is injurious of health along with this the companies can't use products which are
harmful for environment. If any company found practice all these activities then they will be
sealed and there license will be canceled. So, Marshfield bakery evaluated all the factors before
planning to open new outlets.
Marketing plans
 Spain and Canada is set target market, where Marshfield bakery is planning to open a
new business unit. They aims to keeps prices low at initial stage to acquire customer
base.
 Marshfield bakery plans to create customer awareness using social media tools.
 The company aims to increase it's revenue by increasing customer base, they will also
provide sample items to initial customers.
Timeline
The targeted duration for achieving all targets is at least 1 year.
Gantt Chart
It symbolize to a chart which shows horizontal line series, this series indicates time taken
to perform a particular activity. It is made in an waterfall structure.

SWOT
Strength Weakness
 Employees that Marshfield bakery is
planning to recruit are skilled.
 Which introduction of new products
in it's portfolio, Marshfield bakery
will get competitive advantage.
 Marshfield bakery didn't set a proper
budget for research department.
 Marshfield bakery products are easy
to imitate.
Opportunity Threat
 With the use of technology and
marketing tools, Marshfield bakery
will be able to seek attention of
customers.
 The chances to capture market
capitalization will be increased when
new products introduced by company
is able to acquire customers attention.
 Huge competition is their in this
industry, so Marshfield bakery
should make continuous innovation.
 Marshfield bakery is operating in
few countries which results in having
low customers base.
Recommendation
With the help of business planning a organizations can achieve a high growth. Along
with it high risk is involved at the time of establishment of new businesses, so Marshfield Bakery
should take necessary actions timely to overcome this risk. It has evaluated that by adding
innovation is it's products and with the use to new and latest technology the company will be
able to enhance customer base.

P5. State exit or succession options for a small business along with its advantages and
disadvantages.
Exit strategies are used when owner can't continues business operations due o certain
factors such as bankrupt of organisation, owner get retired and there is no one to handle that
ongoing business (Stoker and Et. AL., 2021). Before closure of business owner should keep
these following points in mind.
 All the liabilities should be settled before exit of business.
 Objectives of business should be meet in order to fulfil expectations assumed by owner at
the time of business establishment.
Exit strategies for Small and Mid sized Enterprise are stated below- Liquidation – It refers to dissolution of business and in order to pay off it's liabilities
they sell it's assets.
Advantages
 Company do not have to bother that any legal action will be taken against them. Management of company is free from all liabilities.
Disadvantages
 All assets of company will be sold in order to pay debets, which can have a good value in
upcoming years.
 In case full debts are not paid off then owner had to pay it through it's personal source. Closure and sale of assets – The assets of businesses are sold off immediately in order
make settlement of creditors.
Advantages
 It's easy to pay of debts by selling assets. The amont gained from selling of asssets can be used in other porjects.
Disadvantages
 It's takes lot of time to find buyer who can provide fair pay for assets that company wants
to sell.
 Lot of formalities are involved at the time of sell or transferable of assets. Sell the business to a known – Owner of business sell it's business to the person who is
there known, such as friends, family member, business partner or relatives.
Advantages

 While selling business to known person they already knows functions and policies of
business.
Disadvantages
 By entering in well eeastablised business, new owner might not be aware how to handel
risk and hudles of busienss, which may occur chances of business faliure. Sell to another business – Small business can be sold or acquired by huge companies
which will result in expansion of buyers.
Advantages The owner can invest the money acquired from selling business to other some other
project.
Disadvantages
 All efforts put by owner, at the time of establishment to end will be loosed.
When Marshfield Bakery is unable to meet expectations of customers, it is recommended
to sell it's business to another business unit (Lennon, 2020). This will help them in acquiring
fund which can be invested to other projects. It is evaluated that, sell it's businesses to other
individual will be time saving and a good sum of amount will also be collected with owner,
which can to invested to some other place.

CONCLUSION
From the above file it can be concluded that, in order to make growth in businesses it is
required to perform a proper planning. This report is based on a SME named Marshfield Bakery
which is a leading company of UK. There are certain measures taken by company to evaluate it's
growth opportunities. Along with this, PESTAL analysis, Porter's five forces model and Ansoff's
growth vector matrix were covered. Sources of funds are also discussed along with it's
advantages and disadvantage. Then a business plan is prepared. Lastly, various methods from
existing a business were discussed.

REFERENCES:
Books and Journals
Bridge, J. and Dodds, J.C., 2018. Planning and the Growth of the Firm. Routledge.
Horn, A., 2019. The history of urban growth management in South Africa: tracking the origin
and current status of urban edge policies in three metropolitan municipalities. Planning
Perspectives, 34(6). pp.959-977.
Hu and Et. AL., 2019. Reliability growth planning based on information gap decision theory.
Mechanical Systems and Signal Processing, 133. p.106274.
jafari, E., 2022. The Making of the Modern Iranian Capital: On the Role of Iranian Planners in
Tehran Master Planning at a Time of Urban Growth and Transnational Exchange
(1930-2010).
Kearney, C., 2019. Strategic Planning for Financing and Growing Biotechnology Companies:
Strategic Planning for Financing and Growing Biotechnology Companies. Journal of
Commercial Biotechnology, 24(4).
Lennon, M., 2020. The revival of metropolitan planning. In The Australian Metropolis. (pp. 149-
167). Routledge.
Li, and Et. AL., 2020. A joint modeling approach for reliability growth planning considering
product life cycle cost performance. Computers & Industrial Engineering, 145.
p.106541.
Morison, I., 2020. The corridor city: planning for growth in the 1960s. In The Australian
Metropolis (pp. 113-130). Routledge.
Olesen, K., 2022. Unsettling the Copenhagen Finger Plan: towards neoliberalization of a
planning doctrine?. International Planning Studies, 27(1). pp.77-90.
Stoker, and Et. AL., 2021. Planning and development challenges in western gateway
communities. Journal of the American Planning Association, 87(1). pp.21-33.
Wang and Et. AL., 2019. Multi-phase reliability growth test planning for repairable products
sold with a two-dimensional warranty. Reliability Engineering & System Safety, 189.
pp.315-326.

Wey, W.M., 2019. Constructing urban dynamic transportation planning strategies for improving
quality of life and urban sustainability under emerging growth management principles.
Sustainable Cities and Society, 44. pp.275-290.