Planning for Growth: Evaluating Opportunities and Funding Sources

PLANING FOR
GROWTH

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
P1 key considerations for evaluating growth opportunities .......................................................3
P2 The opportunities for growth applying Ansoff’s growth vector matrix................................5
TASK2.............................................................................................................................................7
P3 The potential sources of funding available to businesses.....................................................7
Task3................................................................................................................................................9
P4 Developing Business plan (including financials) .................................................................9
Task 4.............................................................................................................................................11
P5: Assess exit or succession options for a small business.......................................................11
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................14

Introduction
It is must for every corporation to plan for their growth irrespective of their size and
nature of Business. As the topic is limited to small and medium enterprise(S.M.E), it is
important for these corporation to plan and prepare powerful strategies before moving forward
to execute and implement them for growing themselves and become successful in a long run
(Agyemang and Silva, 2019).
Marshfield Bakery is involved in manufacturing of products of high quality that mainly
includes handmade cakes, snacks, biscuit and also distribution of seasonal goods all over Europe
and UK. For doing this project I have selected 'Marshfield Bakery' and will be analysing their
pathway for growth by identifying their growth opportunity through different growth model.
Then I will identify and discuss it's potential sources of finance that will aid further me to
prepare a detailed Business plan, prepare strategies and Create and execute it's Objectives. . At
last, I will also evaluate various exit options to employ the most appropriate strategy. These
steps are crucial for successfully realizing their desired objectives.
Task 1
P1 key considerations for evaluating growth opportunities
It is important for every business to plan and evaluate various opportunities as per their
budget in order to stay ahead in competition in the industry and it is vital for their growth.
There a various model that is useful for evaluating by carefully analysing the level of difficulty
in implementing each one of the available opportunities (Arku and et. al. , 2016). This aids in
identifying and selecting the most suitable opportunity that will prove to be make valuable
investment decision for expanding their business in the future. BCG matrix and GE matrix can
be applied by 'Marshfield Bakery' for selecting the most favourable opportunity for growing their
organization. These can be explained below in detail:
Boston matrix (B.C.G)

B.C.G matrix is model that is helpful in planning powerful strategies that is crucial the
growth and expansion of their Business. This is helpful in evaluating all the available
opportunity by continually reviewing their offering and making important decisions that
includes investment decisions in their existing product, developing new product or discontinuing
an unprofitable product. This further aids them to analyse their growth in context of their market
and relative market share. It is broadly divided into four divisions that can be explained below:
 Star: Product that comes under this category can be a market leader but requires
potential investment in order to sustain it. Their products hand made cakes is classified
as stars and can become market leader by investing large amount that is required for
doing research and development.
 Cash cows; Product under this category are well established . It doesn't require much
investment as they already acquire high market share and isn't much affected by
competition in the market (De Sousa, 2017). Their product Biscuit comes under Cash
cows, in order to maintain and grow and convert themselves into Star. Question Mark: The product that have high growth but doesn't have the market share
as the product is new to the market. The snack that they provide have recently been
included and need to make their offering customizable as per their target market in order
to gain the required market share in order to survive and sustain themselves in the market.
 Dogs: Those product fall under this category who are low in both market share as well
growth. Their seasonal offering belongs to this category (Hess and Sorensen, 2015.). It is
an important for them to decide on the immediate basic whether it is worthy to invest in it
and can still be made profitable or it is better to shut down for minimize the loss incurred
by the Company.
As per this segment, it is fruitful to them to increase their investment in hand
made cake as their product lardy cake is gained higher market share and such offering has
increase their customer base and help the company grow.
G.E Mckincy Matrix:
This model is much similar to B.C.G matrix as G.E matrix even helps to take investment
and disinvestment decision for growing their business. But, unlike B.C.G which is divided into
four stages only this is more complex as it is divided into nine stages. These stages for better
understanding can be explained in more detail below: