Planning for Growth in Miel Bakery: Opportunities, Ansoff Matrix, Financing, and Exit Options

This report discusses the planning for growth in Miel Bakery, analyzing its competitive advantage and opportunities available in the market. It includes the Ansoff growth matrix, options for financing growth, and exit or succession options for the bakery. The report also provides recommendations for the bakery's future growth. The subject is business management, and the course code and college/university are not mentioned.

PLANNING FOR GROWTH

Table of Contents.
INTRODUCTION -.........................................................................................................................3
MAIN BODY-.................................................................................................................................3
Explaining the basis of competitive advantage for the Miel Bakery business...........................3
Critically assessment of the opportunities available to the business-..........................................4
Ansoff growth matrix of Miel bakery..........................................................................................6
Options for financing growth and sources of funding.................................................................7
Exit or succession options for a mile bakery...............................................................................8
Recommendations for the bakery..............................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION -
Today, growth has become very important phenomena in order to gain profitability.
Without growth no business can survive in market for the longer period. The small businesses
are can be any type of business be in manufacturing or in the service sector. This business run
with small members and plan their growth according to the requirements and the needs of the
society. The Miel bakery is one such small business operating in London. (Gumel, 2019) This
the business that provide cake, pastries, cupcakes etc to its consumer in the market. This reports
will contain the planning and growth for Miel bakery by analysing its competitive advantage of
the growth and the opportunities available to it in the market today. Further, this report will also
contain the Ans off matrix, options for the financing growth, success options and
recommendations for the Miel bakery business that the business is likely to follow in the coming
future.
MAIN BODY-
Explaining the basis of competitive advantage for the Miel Bakery business.
The small medium enterprises are the enterprises that runs on the small scale and plans to
grow their business on the larger scale in few years (Ali and Anwar, 2021). The Miel bakery is
also a small business factory that is selling its unique pastries and cakes in the London. Planning
and growth for Miel bakery is that it want to attract large consumer in the market by opening
large retail outlets all over the U.K. Bakery has certain competitive advantage over the other
bakeries today that are as follows-
 Unique identity of the Bakery- The bakery has unique taste and flavours from the other
industries that are operating in the market. The quality in every product matters lot when
it comes to the food industry (Distanont and Khongmalai, 2020). The Miel bakery has
been able to attract consumer because of the consistency in the quality that it has been
offering for the long time now. The uniqueness of the products are attracting consumers.
 Variety in the products- There are varieties of the product that the business is offering to
its consumer and this is another strength of the Miel bakery as Miel bakery offers variety
of products such as breads, cupcakes, wedding cakes and other cakes that every segment
of consumer can afford in London.

 Big orders and the less price- Offering big orders in less price than other bakeries at such
a small scale is the key strength that the Miel bakery has. The business has been able to
do because of its effective supply chain management, without management no company
can grow on large scale. The supply chain management resources that the Bakery
business has will lead to its growth in the market.
 The Latest equipments- The another thing that the business has is the latest equipments
like the cups, spoons, metal tuner, pastry brush etc. to offer the best cake products in the
market. The consumer are always attached to the unique products and the unique
products are the results of different equipments.
These were certain advantages that the company has over the other businesses existing in the
market today. The small business can grow in market only by way of gaining the competitive
advantage that is result of the strength that the companies possess in the market.
Critically assessment of the opportunities available to the business-
There are various opportunities for the bakery industry in the market of U.K. And that are as
follows-
The business opportunity the Bakery firm has in the Porter's Generic framework-
The porter's generic approach is identified as the approach that help the company in building four
type of strategy generally (Bruijl and Gerard, 2018).
Cost Leadership- The Bakery has already adopted this strategy by achieving two main things:
 Increase profits by the reducing cost this is done as Bakery is charging the average prices
of the industry from its consumers.
 Increasing market share by charging lower price. The Bakery is also trying to grab
consumers from this way as well (Hamilton, 2020).
Differentiation strategy- this is the best strategy to gain consumers in the market by making
different products from all the other products that are available today. The Miel bakery is already
developing and innovating its bakery products by according to the needs and requirements of the
consumers (Leyva Carreras, and et.al., 2018).

Focus strategy- The focus strategy covers the particular segment in the market. This is done by
understanding the dynamics and unique needs of the consumers. The Miel bakery is targeting
Kids segment mainly as there are more excited about cakes, pastries and varieties of product that
are available in the industry.
SWOT analysis of the Miel Bakery-
Strengths of the Miel Bakery are as follows-
 The variety in the bakery products
that it offers like the cupcakes,
breads, cakes, biscuits and many
more. (Benzaghta and et.al., 2021)
 The Art design on the cake attracts
kids and the unique art design of the
Miel bakery has been its strength
from the start.
 There are many Equipments
available with the Bakery that is its
strength.
Weakness of the Miel bakery are as follows-
 The industry do not have many retail
stores to supply its products all over the
London.
 The competition with big Bakery stores is
another problem that company is facing.
 The less resources to promote products in
the market.
Opportunities for Miel Bakery are as
follows-
 The expansion in the untapped
market is big opportunity that the
Bakery can use.
 The Diet is new trend in the market.
Making food stuff with less oil and
low sugar can attract diet conscious
people.
 The another opportunity that the
Miel Bakery has to open Bakery
Threats to Miel Bakery are as follows-
 The competition with already existing
brands is the threat to Miel Bakery.
 The safety regulations after covid-19 has
been the big concern for the people. Many
are avoiding outside food.
 The economic recession is the worldwide
problems. Surviving in that is big concern
for the Miel Bakery.

school in order to do large and big
orders on time.
Ansoff growth matrix of Miel bakery-
Ansoff matrix also known as the product/market expansion grid is a tool which is used by
the management to analysis the market demand for the product which help to increase their
business. Its main aim is to analyse the business growth strategies for the products.
Market penetration
This strategy aims at increasing the market share of Miel bakery and poses no immediate
threats as the existing products will enter further in the existing market. This displays a stable
linearity in the distribution of confectionery products to the preferred customer segment. Its main
objective is to increase the sales of the current product from the current market. The chosen
bakery has to apply some new techniques for their business growth. For instance, it can try
selling its current product to their existing customers. Changing in the price of product will help
to increase sales. Customer loyalty is also important for increase in sales. Providing discount on
the product help to dominate competitors business.
Market development
Market development leads to new market with the existing product. Online market is the
best market to enter for selling their existing product by providing discount on the existing
product. For attracting the new customer towards the bakes Miel goods require a good marketing
so that it fetches new consumers along with generating new channels for sales expansion in
prominent markets. Expanding of business to foreign market help to expand sales of existing
product to new customer globally changing in packing of existing product attract the customers
towards the product.
Product Development-
The product development is a great way to penetrate into the target market or to expand
the consumer base in the new market. The Miel Bakery in order to plan its growth in the new
market it has to invest in R&D to look into what consumers are demanding in the market and that
can lead in building new products. Miel Bakery can also try more products by branding a white-
label products produced by any third party. Creating new products will attract large segment of

the audience from the market. Like the Bakery can expand its varieties of the Cupcakes, wedding
cakes, biscuits and cookies etc.
Diversification-
It is referred to the strategy that involves the highest risk as it deals with the new market
and the new products. The risk high strategy always gives the highest amount of the reward. If
any company has high financial resources it can adopt this strategy in the market. The Miel
Bakery can also adopt this strategy in order to grow its consumer base and achieve higher level
of the revenue opportunities. The Bakery can open its other Bakery stores in various areas of the
London. Diversification always brings new consumer in the organization.
Summary of Ansoff matrix is as follows-
Market penetration Less risky
Market development Less risky
Product Development Moderate risk
Diversification The Highest risk
This always depends on the company that what strategy that particular company follow in order
to plan growth in the market. The Miel company can also focus on any one of the strategy that
are been discussed above.
Options for financing growth and sources of funding
Government incentives
When the business have the flexibility with the location then it can find various
community incentives prior to reaching the final decision. The incentives of the government can
assist in the decreasing of the operating costs along with the long term overhead. If the business
have not executed this option then mile bakery must go to the town or the city offices and also
ask them what kind of the services they offer for the economic development. They should also
make the enquiry about the utilities assistance, tax reductions along with the building options.
Bank loans
Most of the banks provide the loans for the small businesses so the mile bakery can
contact the bank in order to see that if the business loan is the correct option for it. Most of the

banks also provide the credits, business lines along with other resources in order to find out the
right alternative for the bakery (Semieniuk and Mazzucato, 2019).
Investors
The mile bakery can also find a group of investors or the investor to assist them to
finance the business. Prior to contacting the investor, the bakery must do the proper research and
also have the information along with the number to getting back the business. The investors will
desire to see the progress and also do the investigation along with the research into the business
plan. The investors also would want something in return that also consist of the owing section of
the business.
Crowd funding
Some of the websites exists that have gained the popularity and have proven out to be the
most effective method of raising the money. The website works in the best manner and also on
the lesser cost developed projects and also have the category of the food. Once the business
develop and begin the project then the friends, family and the internet users can do the donation
of money. The crowd funding is a very creative method to get the funding but it is also necessary
to know that if it is a long term funding or not as the website has the limitation of the project up
to 60 days (Brown and Rocha, 2020).
Equipment financing
This is an alternative solution of the financing which assists the mile bakery in buying the
new equipment required in the running of the business without the need of paying for those
equipment. It can also be used for numerous purposes like the purchasing as well as leasing of
the vehicles, heavy equipment, furniture and fixtures and much more. The heavy appliances as
well as the duty ovens can be very costly mainly if the business is being strapped for the cash,
With the help of the equipment financing the business will be able to expand the payments and
also have a positive cash flow. But in case the loan payment of the business is default then the
lender has the complete right to take or seize that equipment. The equipment which is being
purchased by the business also acts as the collateral in the taking out of the loan (Sobiech, 2019).
Invoice financing
In order to run a bakery it is not an easy task. It can become very hard to make the profit
between the long hours along with the demanding customers. So for this purpose the bakery can
solve these challenges with the help of invoice financing which is a kind of lending which

permits the business to borrow the money against that money which the customer owes from the
business. In this manner there exists numerous ways in which the invoice financing can assist
the business of the bakery to grow in an efficient and effective manner.
Exit or succession options for a mile bakery
Merger
In this two businesses combine to become one business. The mergers enhances the value
of the business that is why the investors desire this option. To go with the merger, the business
still require to be the aspect of the business. With the merger the business or the bakery will be
the owner or the manager of the new bakery and the employees can be employed by the latest
merged bakery. There exists five important types of the mergers namely the horizontal, vertical,,
conglomerate, market extension and the product extension. Prior to marge the bakery, it should
also make sure that the latest business is a perfect fit with the existing one. Otherwise it will tend
to lose the profit or revenue (Anton and Nucu, 2020).
Acquisition
It is a method in which a company purchases the another business. With this kind of the
strategy the bakery gives up the ownership of the bakery to the company which purchases it from
the bakery. One of the best benefit of choosing this method is that the bakery get the name of
their choice. A business mat go for the higher price rather than the actual price of the bakery
mainly if they are the competitor. There exists mainly two types of the acquisition which are the
hostile and the friendly. If the bakery have a friendly acquisition then it means it agree to be
taken by a big business while if it is a hostile acquisition which means that the bakery do not
agree.
Selling to someone it knows
The bakery wants to see it live on the others ownership. In most of the cases the bakery
can sell to anyone that it already knows which is known as an exit strategy. The bakery can sell it
to anyone such as the family member, friend, employee, business colleague, customer, etc. Prior
to selling the business to anyone else firstly it needs to take in account the drawbacks also
(Medvedeva, 2018).
Initial public offering

An initial public offering or IPO is the initial sale of the stocks of the business to the
public which is also known as going public. Not like the private business, a specific public
business sacrifices a part of their ownership to the stakeholders taken from the general public.
The larger ones are the public businesses. They too go from the increased growth period. By
making the business public, the bakery can also secure an increased amount of the funds to assist
pay the off debt. Although being public can be hard for the small business as it needs a crucial
amount of money as well time so if the bakery wants the quick exit strategy then the IPO is not
the correct option (Radwan, 2022).
Liquidation
In order for the bakery to execute the exit strategy then the liquidation is another option.
With the help of liquidation the business operations tends to get ended and the assets are also
sold. The value of liquidation of the assets of the bakery go to the investors and the creditors.
Although the creditors of the bakery will get the initial dibs and not the investors of the bakery.
Liquidation is very clear cut strategy as the bakery will not need to merge the business. The
business of the bakery stops and the assets move to the people that the business owe the money
too. If the bakery liquidate the business although it will lose the concept of the business along
with its reputation as well as the customers the business will not be able to live on same as in
other option of the exit strategy.
Recommendations for the bakery
Making a clear finance sheet
This will assist in maintaining the order and organization in the bakery. The business that
prepare as well as plan for the emergencies are those which are always prepared and also move
forward in the expansion of the business. That is why to make the budget of the bakery and its
operational activities is the most important. The bakery must maintain a specific detailed sheet
which includes all the expenses about the ways in which it records all the maintenance,
purchasing of ;the raw materials, giving the payment to the staff every month and much more
(Fischer, 2021).
Opting for diversity
The bakery must go for bringing the creative as well as the innovative items of the bakery
and the it will automatically attract more number of the customers. The bakery can also innovate

the format of the shop along with the items. It can also be seen that the business contact more
with the bakers to offer the services of catering. To attract the people on the social media the
bakery must keep in account extending the storefront and then selling of the baked goodies and
gifts with the help of the internet.
Having a website
In order to get a perfect online presence it becomes important for the bakery business to
have its own website. The website must be optimized as well as properly designed according to
the norms of the SEO which will assist the people in searching for the products of the bakery for
the store in an easy way. At the time when the bakery business becomes easy to get the access to
all its customers then it will automatically assist in increasing the sales. By optimizing the
website in order to make it SEO friendly which is not an easy work and that is why it is being
recommended for the bakery to get some professional assistance for this purpose (Kisaky, 2022).
Create social media following
Social media is the best method to attract and draw the customers which are scrolling on
numerous platforms of social media. That is why, the bakery business needs to ensure that it
have developed the business pages on the social media and also to update and optimize them on
regular intervals. The bakery should post the videos as well as the photos on a regular basis
which will let the customers know the happenings of the bakery. It can also get the reviews along
with the feedbacks from these kinds of the pages which will assist the bakery to expand the
operational activities of the bakery further (Demirkesen and Mert, 2020).
Integrate with platforms of online delivery
Taking in account that most of the customers like to order the food online rather than
going out so it becomes important for the bakery business to permit the customers to order online
from the store. For this purpose the bakery can integrate with Swiggy, Zomato, ubereat and
foodpanda like platforms which will assist the products of the bakery to reach the doorsteps of
the customers.
Network with the local business
The bakery business must collaborate with most of the local businesses in the area which
will help in boosting the sales in the future. For this purpose the bakery must collaborate with the
local businesses and assist the people in ordering the flowers as well as the cakes and then
deliver them in the form of package at the specified place. This will make the bakery business

like a one stop point for all the customers who desire to surprise someone with some extra
involvement (Sinaga, 2019).
CONCLUSION
From the above report it has been concluded about the growth of the mile bakery which
further includes about its basis of the competitive advantage for the bakery, the opportunities for
the business along with the options for growth with the help of applying the Ansoff’s growth
vector matrix, analysis of the options for the sources of funding and the financing growth such as
crowd funding, investors and bank loans. It also discussed about the exit or the succession
alternatives for the bakery while also examining various options to evaluate the drawbacks and
benefits. At last the report also discussed about the recommendations for the bakery in order to
enhance its sales and to reach a wider prospect of the audience in the market.

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