Planning for Growth: Analyzing Factors and Opportunities for Marshfield Bakery

This report analyzes the growth possibilities for Marshfield Bakery, including factors such as PESTEL analysis and Porter's Five Forces model. It also evaluates opportunities for growth using Ansoff's growth vector matrix and suggests growth choices using various frameworks such as mergers, franchising, and acquisition.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK – 1.........................................................................................................................................3
P1. Analyse important factors for measuring growth possibility................................................3
P2. Use Ansoff’s growth vector matrix for evaluating opportunities for growth......................11
M1. State growth choice using various frameworks in context to organisation........................13
D1. Evaluate path for organisational growth, considering risk and how it will be mitigated.. .13
TASK - 2........................................................................................................................................14
P3. Determine sources of funding and state it's advantages and disadvantage..........................14
M2. Criterion possible sources of funding and justification why company should adopt it.....15
P4. Make a business plan for growth which involves financial content and strategic aim for
scaling up enterprise..................................................................................................................15
P5. State exit or succession options for a small business along with its advantages and
disadvantages.............................................................................................................................20
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................22

INTRODUCTION
The main objective behind the establishment of organisation is to earn profit and it is not
possible without the growth of organisation (Ahmarinejad, 2021). This is why the organisations
perform planning in order to frame strategies for growth of the companies. The organisations are
able to take decisions regarding the arrangement of funds with the help of proper and effective
planning. For accomplishing this report the selected small medium sized enterprise is Marshfield
bakery. The organisations which are having a turnover of less that £25 million are considered as
small medium size enterprise or SME. With this, size of workforce the of organisation should be
less than 250 employees and the gross assets of the organisation should also be less than £12.5
million. The chosen organisation that is Marshfield bakery is UK's small and medium enterprise
who are having a workforce of 45 employees and made all the bakery products available to it's
customers. The annual turnover of the company is around £2 million. The report is bases on
opportunities of growth that can be effectively utilised by organisations. With this, the sources
form where the organisation can acquire the funds are discussed along with preparation of
effective business plan.
TASK – 1
P1. Analyse important factors for measuring growth possibility.
The organisational wants to make development this is how they will be able to retain in the market
for the longer duration of time(Angotti, 2018). The growth opportunities that can be grab by the
organisations are explained with the help of PESTEL analysis and Porter's Five Forces model.
PESTEL Analysis
 Political – The government of UK has increased the tax rates on the raw material used to produce
the bakery items, this is why the prices of products have rapidly increased, due to which the
Marshfield bakery has to face the problem of loosing it's customer base.
 Economical – At the time of Covid – 19 pandemic, the customers are not allowed to move
out with this the bakers were also closed. That is why the customers are not able to visit
Marshfield bakery and hence no sales of their products takes place.
 Social – By analysing the behaviour of customers the Marshfield bakery stated that the now
a day customers perception is moving towards the healthy products. The company is trying to
acquire more customer base by serving them products of their needs.

 Technological - The Marshfield bakery has make the effective utilisation of technology and are
planning to make products available to the customers at their door step with the help of starting
online order services.
 Environmental – The products served by Marshfield bakery is in cloth bag through which the
environment can be prevented. Along with it the cardboards used by them to serve it's customers
are recyclable.
 Legal – The Marshfield bakery take care of proper hygiene and other safety measures which
helps them in performing all it's operations smoothly.
PESTEL framework : Strength and Opportunities for Marshfield Bakery -
STRENGTH
 With the help of PESTEL analysis, Marshfield bakery came to know that technology is
the key and is adopted by them timely in order to get competitive advantages.
 Marshfield bakery has put the customers preference as their first priority and started producing
product according to it.
OPPORTUNITIES
 The Marshfield bakery can make promotion of it's products with the help of social media
marketing which is cost effective.

 Few organisations are involved in serving healthy products to it's customers, with the
initiation taken by Marshfield bakery to produce healthy product they will be able to enhance
customer engagement.
Porter's Five Forces Model
 Competitive rivalry – A number of bakery shops are available easily, this is why the
customers of bakery products are spread widely (Chowdhooree, 2020). The Marshfield
bakery has to face a huge competition in order to make a strong position in the market along with
adding some innovation in it's products.
 Buyers bargaining power – As a lot of bakery's are available in the market, but the
Marshfield bakery has keep the needs and wants of customers in mind and serving healthy
products, which keeps the bargaining power in the hand of buyers.
 Threat for new entrants – It is bit difficult in UK to take licence form the government
for establishing the business, this restricts the new comers to enter in bakery businesses.
 Suppliers bargaining power – The Marshfield bakery has a large customer base this is why
they requires lot of raw material and hence a lot of suppliers to make timely delivery. This is why
the bargaining power of Marshfield bakery is high and suppliers low, as by keeping prices high
bakery can switch to some other suppliers. Threat of substitute product – It is bit easy for the competitors to imitate the products
produced by Marshfield bakery, but not easy to provide the same taste as provided by them.
Porter Five Forces Model : Strength and Opportunities for Marshfield Bakery -
STRENGTH

 Porters five forces model helped Marshfield bakery is finding out strategies that could be made
by them in order to make a strong position in the market.
 The Marshfield bakery is able to take timely decisions regarding producing healthy products
which leads them in getting competitive advantage.
OPPORTUNITIES
 To standout in the market among the tough competition the Marshfield bakery can add on
some innovation in it's products. By making effective use of technology in it's businesses the Marshfield bakery can be able
to produce more output.
VIRO Analysis
Valuable
 The customers are being served and attended properly by Marshfield bakery which make
them feel valued (Ferm and Tomaney, 2018).
 The Marshfield bakery is able to provide healthy products to it's customers along with good taste.
Inimitable
 Providing healthy products along with good taste is not possible for all bakers.
 The Marshfield bakery has used modern architect which is not easy for competitors to inimitable
as it's requires lot of capital.
Rare
 The Marshfield bakery provides modern architect along with use of modern technology.
 A healthy and good tasting products are being produced by Marshfield bakery.
Organised
 By treating customers nicely Marshfield bakery is able to acquire more customers as their
satisfaction level keeps on improving.
 The Marshfield bakery provides a healthy and relaxing environment to customers.

VIRO Analysis : Strength and Opportunities for Marshfield Bakery -
STRENGTH
 The unwanted cost which is being incurred by Marshfield bakery would be reduced.
 The Marshfield bakery can use the strategies and creative ideas, innovation that can't be
copied by the competitors.
OPPORTUNITIES The Marshfield bakery can make expansion of it's businesses in other countries.
SWOT Analysis
Strengths Weaknesses Opportunities Threats
 The
requirements
of customers
and their
taste and
preferences
is kept as
first priority
by
Marshfield
 Due to low
coverage area
the Marshfield
bakery is able
to generate low
revenue.
 With the
increase in the
competitors of
Marshfield
 In order to
attract
customers the
Marshfield
bakery can
make use of
promotional
tool such as
social media
marketing.
 Huge
competitors
in this
industry
always tries
to copy the
products
produced by
Marshfield
bakery.

bakery.
 With the use
of modern
architect, the
Marshfield
bakery is
able
develops the
interest of
customers.
bakery the
customers are
spreading.
 By keeping the
needs and
requirements
of customers in
mind
Marshfield
bakery started
producing
healthy
products which
will leads in
customer
satisfaction.
STRENGTH
 The SWOT analysis will help Marshfield bakery in analysing it's functions (Gao and
Zhang, 2020).
 It will help Marshfield bakery in overcoming from the threat of huge competitors, by
adding some innovation.
OPPORTUNITIES

 Optimum utilisation of technological factor can lead in enhancing production. Use of social media marketing for promoting the products produced by Marshfield
bakery is most cost effective solution.
Porter Generic Frameworks
 Cost leadership theory – For attaining the goal of reducing cost, Marshfield bakery have
to achieve the economies of scale (Greenwood, 2020). This is only possible when
Marshfield bakery expands it's businesses and acquire customer engagement.
 Differentiation theory – With the use of healthy raw material, Marshfield bakery can be
involved in producing healthy bakery items and differentiate themselves.
 Focus strategy – In the product range added by Marshfield bakery they are targeting
high income group customers as they are more conscious about consumption of healthy
products.
 Differentiation Focus – By doing effective communication with the customers,
companies are able to identify requirements of customers and this is how Marshfield
bakery is involved in providing effective services to enhance their satisfaction level.
STRENGTH
 In upcoming years Marshfield bakery will soon be able to lead market with use of this
strategy.

OPPORTUNITIES
 By diversification and expansion of profit of Marshfield bakery will be enhanced.
 With the use of latest and upgraded version of technology productivity of Marshfield
bakery will improve.
P2. Use Ansoff’s growth vector matrix for evaluating opportunities for growth.
The method or strategy which can be used by Marshfield bakery in order to make growth
in it's businesses Ansoff's growth matrix is being used (Hashim, 2018). Market penetration – Marshfield bakery can make expansion of it's businesses in new
countries which will help them in growing it's business and hence more revenue will be
generated.
Advantages
 The customer base of Marshfield bakery will be increased. The profit generated by the company will eventually grow.
Disadvantages
 Due to the diversification in the culture the expansion may fail.
 The brand image of Marshfield bakery will be affected if the business fail in other
country. Market Development – The Marshfield bakery is pitching the same product to other
countries for enhancing base of customers is it's market development.
Advantages
 The rapid growth and development within the operations of Marshfield bakery will take
place. The company Marshfield bakery will be able to collect more amount of funding.
Disadvantages
 The customers belonging to different culture have different attitude towards to products.
 A high amount of cost is being indulged at the time of opening new stores in other
countries. Product Development – By keeping requirements of customer in mind the new healthy
product launched by Marshfield bakery is product development.
Advantages

 The product is being produced by Marshfield bakery as per the requirements of
customers. Due to few involvement of producers towards production of healthy products, customers
will get new variation of product.
Disadvantages
 The competitors will try to imitate the product.
 By successful imitate of product by competitors they will charge low prices for same
products. Diversification – The new healthy product produced by Marshfield bakery is when
introduced in other countries, this is diversification in product as well as in market.
Advantages
 The Marshfield bakery will be able to serve more customers. The company will able to grab more profit from various countries.
Disadvantages
 A large sum of capital as well as fixed cost is required. In case of fail of business then a huge loss will be incurred.
Growth opportunities for Marshfield Bakery
 Mergers – For mutual benefits the Marshfield bakery can merge with other profit making
bakery and this is how their customers will also be targeted (Kreitler, Thompson, Vaillant
and Hawbaker, 2019).

 Acquisition – As the Marshfield bakery is supplying it's products in limited area, so they
can be acquired by other multinational bakeries and earn profit.
 Franchising – In order to make a quick expansion the Marshfield bakery can make use
of franchise system and can provide permission to some other person to run operations in
the name of Marshfield bakery.
M1. State growth choice using various frameworks in context to organisation.
For the purpose of growth and expansion in the businesses merger, franchising and acquisition
can be used by Marshfield bakery. If the organisation wants to make quick expansion without the
use of huge funding then franchising is the best option. A profit in a form of royalty fees will
also be got by the organisations of timely basis.
D1. Evaluate path for organisational growth, considering risk and how it will be mitigated.
The risk factor is being indulged at the time of making any kind of expansion in
businesses. By proper research and analysis the risk factor could be reduced. With this, the
growth in the businesses is also possible it analysing the market condition. The companies
should start producing products by evaluating behaviour of customers.
TASK - 2
P3. Determine sources of funding and state it's advantages and disadvantage.
There are numerous sources of funds that can be adopted by businesses for collecting
money (Meck, 2020). Some of them are stated below - Bank loan and overdrafts – The Marshfield bakery can kept some mortgage as a
security deposit and will be able to avail loans from the banks.
Advantages
 The process of taking loans is easy and secure. The interest rate charged by banks on taking loan for businesses is less.
Disadvantage
 Delay in payment for overdraft results in indulging high rate of interest.
 The small and medium business units does not have huge assets which can be kept by them in a
form of mortgage. Crowd funding – A large number of people is being involved in the process of collecting funds
for businesses is crowd funding.

Advantages
 A good collections and interaction with certain set of people is made. The collection of money will become easy as large group is able to easily contribute
some money.
Disadvantage
 Due to the failure of businesses or liquidation of businesses, a great loss of large people
will takes place.
 The views shared by the funders for collecting money will be imitate by them. Peer to peer lending – It is a kind of block chain which helps the organisations in raising funds
for it's businesses.
Advantages
 To make use of this type of platform is easy for everyone, no specialised knowledge is
required. As per the requirements organisations are able to choice the investor from who they want
to avail fund.
Disadvantage
 The platform use in this type of funding is not authorised.
 The organisations get a lot of investors over this platform who are ready to make
investment in this business which leads in creating confusion. Angle & venture finance – When the investor make full analysis on the business idea, feels
satisfied with the idea and find it potential then they make investment.
Advantages
 An expert advice form the investor is get to business which is beneficial for them. It is a safe option for raising funds.
Disadvantage
 The investors are not ready for making investment in small business units.
M2. Criterion possible sources of funding and justification why company should adopt it.
The organisation get number of sources for raising fund for it's businesses but if the
business is small medium sized then it's better to opt the option of bank loans. The reason behind
opting it is that it is the safest form of availing money. With this, the fear of imitation of idea by
others is also not their. The interest rate charged by them is also very low.

P4. Make a business plan for growth which involves financial content and strategic aim for
scaling up enterprise.
Company name
Marshfield Bakery is selected for preparing this report.
Executive Summary
The small to medium sized enterprise selected for preparation of this report is Marshfield
Bakery. In this report a business plan for the company is being developed who is planning to
introduce a new product line of health products (Muller and Tarr, 2019).
Background of company
Marshfield Bakery servers hand made bakery products all over UK and was established
in 1984. The quality of products serve by them is high as their whole workforce is skilled and
specialised in producing bakery items.
 Vision – To make premium quality bakery items along with great taste.
 Mission – To enhance customer base by providing healthy products for healthy conscious
customers.
 Objective – To increase it's market capitalisation by 10% by end of this year.
Nature product services
Their are certain products made by Marshfield bakery that is chocolates, bread, pastry,
candies, pizza, snacks and many more.
Stakeholders
The most important stakeholders of Marshfield bakery are it's customers, suppliers and
employees (Robynn Rixse, 2019). The employees who are involved in producing such bakery
items having good taste. The suppliers who makes delivery of all the raw material as well as of
finished goods on time. The last one is customers who helps in make the business run along with
producing revenue for the company, so fulfilling their needs and wants is the first priority of
company.
Capital funding
The Marshfield bakery is planning to avail the fund of £30K for opening it's new business
unit in Spain. The collection of fund will be done by the company through bank loans as raising
funds form them is safe. With this, the interest rate charged by banks for expansion of business is
low.

Sales Target
The sales target set by Marshfield Bakery for this financial year is £90K.
Operational plans
For performing smooth function of Marshfield bakery have analysed that for the new
business unit opened by them in Spain they required more staff who can perform work
effectively and generate the desired revenue for the company. With this, they can use social
media marketing for promoting it's products.
Resources plan
The Marshfield Bakery is planning to make bulk purchase of required raw material so
that it's prices reduces. With this, they are planning to purchase fixed assets such as furniture and
tools required to produce items (Sclar, Baird-Zars, Fischer and Stahl, 2019).
Technology plan
The Marshfield bakery is planning to make promotion of it's products with the help of
social media marketing as this the most cost effective method of promotion.
Risk Factors
The Marshfield bakery is planning to open it's new outlet in Spain so they have to follow
all the rules and regulations followed in that country. Each and every country have different rules
and regulations so a single mistake made by the company can rein image of company.
Marketing plans
 Marshfield bakery have launched new healthy products which will help them in seeking
the attention of new customers.
 With the use of social media marketing company wants to make promotion.
 By keeping the prices of products low at it's new outlet they wants to enhance customers
engagement (Zidek, 2022).
Timeline
6 months time period have been set.
Gantt Chart
Gantt charts indicates the time duration taken by the organisation in order to perform
each task.

SWOT
Strength Weakness
 Marshfield bakery have a team of
skilled workforce.
 Launched a new product for healthy
conscious people, which will help in
attracting new customers.
 Marshfield bakery does not have
team for research.
 Products produced by the company
can be easily copied by it's
competitors.
Opportunity Threat
 Use of social media marketing will
help in gathering customer base.
 Customer engagement will enhance
by production of healthy and organic
products.
 This industry comprises of lot of
competitors.
 Low coverage area can be a major
advantages for big competitors and
threat for Marshfield bakery.
Recommendation
An effective business plan made by the organisations helps them in performing smooth
functions. In order to avoid business risk proper research of market as well as of competitors
should be followed. Along with the use of technology productivity of Marshfield bakery will be
enhanced.
P5. State exit or succession options for a small business along with its advantages and
disadvantages.
When the owner is no more liable to operate functions of it's business due to any reason,
they have to adopt exit strategies (Zeb, 2022). The thing which are to be considered by owner at
the time of closure of businesses are as followed -

 Lability of businesses should be paid off by the owner.
 The purpose for which the business was introduced should be attained.
Some of the exit strategies which can be adopted by the organisations are stated below - Liquidation – Selling of business and assets and liability are settled off is liquidation.
Advantages
 This is the easiest way for paying debts. The owner is not liable for any misshapen.
Disadvantages
 The value of fixed assets such as land have more value with the time, which is being sold.
 The owner have to pay off debts from their own personal assets if any amount is left out. Closure and sale of assets – Whatever assets the businesses have being set off in order
pay off liabilities.
Advantages
 Selling of assets is easy and immediate settlement of liabilities can be done by it. The profit attained by sales of goods can be invested in other businesses.
Disadvantages
 Selling of assets to the person who can give fair value for it is difficult.
 Selling of assets is time consuming process and requires some legal formalities at the
time of it's transfer. Sell the business to a known – When the owner made sale of business to their own
family, relatives or friends is considered as sell of businesses to known.
Advantages The known person can handle business more smoothly as they are aware of it's
operations.
Disadvantages
 The known person may not be specialised in handling risk of businesses. Sell to another business – The whole business is being sold to some other person and
receive money for it.
Advantages Among received by other business can be used at other profitable place.
Disadvantages

 The owner of business will lost all it's ownership over the business set by them.
The Marshfield Bakery can make sales of his whole business to some other business unit
as it takes less time. With this, they can make effective utilisation of money acquired by them
through selling it's business.

CONCLUSION
From the above report it can be concluded that, effective planning is essential at the time
of establishment of businesses. The company Marshfield bakery have used PESTAL analysis,
Ansoff growth matrix and porter's five force model in order to know it's current status. Each
source of fund have benefits and cons along with it organisations need existing strategies at the
time of closing it's operation.

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