Competitive Position Analysis for Planning and Growth

This assignment involves analyzing the most profitable source of growth among several options, including books and journals, online resources, and industry reports. A detailed business plan is also provided. The purpose is to evaluate and choose the best approach for planning and growth based on available sources.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1 ..........................................................................................................................................4
P1. Key considerations for evaluating the growth opportunities................................................4
P2. Identification of growth opportunities by the use of Ansoff's growth matrix.......................9
TASK 2..........................................................................................................................................10
P3 Potential sources of funding and their advantages and disadvantages................................10
TASK 3..........................................................................................................................................11
P4 Designing business plan for growth of organisation............................................................11
TASK 4..........................................................................................................................................13
P5. Exit and succession option for small business....................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
In today's competitive business scenario those ventures attain success that are proficient
in planning out their next business move effectively. It could be described as a procedure that
initiates with analysing current competencies of a firm and to identify what are the areas or
operations that need to be improved as response to changes in market dynamics. It assist
entrepreneur to formulate effective strategies and to forecast about future demands of its
products by thoroughly studying various micro an d macro environmental factors (Barbour and
Deakin, 2012). The assignment is based on Belvoir Fruit Farm is a UK based beverage firm that
deals in products fruit drunks and beverages made from infusing fresh flowers and fruits in
spring water. The project will discuss about various growth opportunities for firm by undertaking
a contract in Country Durham. It will also explain various sources of funds along with their
advantages and disadvantage that could be considered by company to raise its funds.
TASK 1
P1. Key considerations for evaluating the growth opportunities
Belvoir Fruit Farm is a small family owned business firm in UK. The company has a
extensive range of fruit beverages that are prepared from fresh fruits and vegetables that are
mixed with spices, flower extracts and various flavours that uses ingredients that are organic and
healthy. In recent years people have become extremely health conscious and also aware about
the harmful chemicals that are been present in various aerated drinks. This has emerged as a
major opportunities for Belvoir Fruit Farm to diversify its market share by catering needs of its
target audience who are looking for a healthy beverage options (Chapin, 2012).
Firm is now thinking to launch its organic herbal tea available in different flavours that
comprises flower extracts and other spices like ginger, lemon etc. from which company is
likeable to attain high sales and growth. It is because as 85% of UK Population drinks tea,
Belvoir Fruit Farm new flavoured herbal tea is most likely to provide a very healthy option to
the tea consumers. With the main objective to diversify its business operations firm undertake a
contract in Country Durham that is to support firm to grow and enable them to take benefit of
new and existing market opportunities in beverage sector. Thus, to gain success in this new
project it is essential for company to have understanding and knowledge about its various

external and internal factors that are probable to pose threats and also to provide opportunities.
Mentioned below are the analysis of firms internal and external factors:
Competitive advantage
Resources: To develop a new product a firm is required to make use of several materials.
In case of drink and beverages one of the key factor that it requisite to be considered is the
quality of ingredients that are been used in a particular product. Thus Belvoir Fruit Farm is to
carefully select all ingredients such as flower extracts and other spices that are been mixed in tea.
Capabilities: It forms potential of firms and its workforce. With increased awareness in
people to prefer healthy drinks and Tea been one of the most consumed beverage in UK firm has
immense chance and wide scope of growth in this project. Thus, it is important for Belvoir Fruit
Farm to continuously keep on introducing new beverages that fulfils requirements of its
customers (Christofakis and Papadaskalopoulos, 2014).
Core Competencies: It is the USP (Unique Selling Proportion) of a company's product
that assist firms in differentiating its products and services from the other substitutes that are
present in market. It involves those factors that are of utmost significance for firm in order to
gain the attention of its consumer and induce them to make purchase. Thus for Belvoir Fruit
Farm diversify its business in other nations and to gain edge over its rivals it is essential to offer
something new, innovative and healthy product to its target audience.
Porters Generic Strategy Model
In order to find out and analyse various factors that could serve purpose of Belvoir Fruit
Farm to enhance its core competencies firm can adopt Porters generic strategy model that is
based on mentioned below three competencies:
Cost Leadership: This strategy emphasises upon gaining competing edge over rivals by
offering quality products and services at affordable prices to the customers. Therefore, Belvoir
Fruit Farm can attain this objective every efficiently (Porter’s Five Forces of Competitive
Position Analysis, 2018). It is because since they are having their own farms they can give them
advantage of cultivating tea themselves. This will help owners to reduce their expense to but tea
leaves from other farmers and to improve efficiency of its distribution channels by adopting new
technology and by maintaining smaller supply chains and logistics.

Differentiation: This strategy emphasis on producing products and services that are
exclusive, innovative and have not yet been offered by any present contender in industry. As
food and beverage industry are subject to emergence of changes on regular basis as needs and
aspirations if people keep on shifting. With present trend in people around the globe to consumer
healthy drinks and UK population been keen fond of tea Belvoir Fruit Farm has a great
opportunities to cater the needs of its target audience by providing them a healthy, more
rejuvenating beverage option with different flavours to choose from according to their taste and
reference (Eddleston and et. al., 2013).
(SOURCE: MICHAEL PORTER'S FIVE GENERIC STRATEGIES, 2018)
Focus Strategy: The main focus on narrowing competitive scope within industry
through market segmentation and to find out the niche market audience. It has two variants Cost Focus - This variant aims at attaining cost advantage by identifying differences in
cost behaviours in its niche market. This stretgy could help Belvoir Fruit Farm to meet
Illustration 1: MICHAEL PORTER'S FIVE GENERIC STRATEGIES

the requirements of health conscious people who are specific about having an organic ,
herbal drink and are also fond of tea.
 Differentiation Focus: The main focus of this variant is to seek differentiation in its target
niche market. Applying this strategy Belvoir Fruit Farm can easily enhance its market
share and expand its growth by providing its niche target consumers with unique and
exotic organic herbal tea in various flavours as per their taste and choice (Grover, Bokalo
and Greenway, 2014).
Thus, as company has undertaken a contract in country Durham and its aims at expanding its
business market the most suitable strategy in this case would be Differentiation. It is because
this strategy aims towards introducing unique and distinctive product that will help company to
successfully launch itself in new market and gain advantage by capturing attention of its
potential customers there.
PESTLE of Belvoir Fruit Farm
PESTEL Analysis consist of identifying and evaluating various macro business
environment that could provide opportunities to grow or can posses certain threats for which
company needs to plan out strategies beforehand. Mentioned below is the PESTEL Analysis for
Belvoir Fruit Farm : Political Factor: Political factor involve aspects like tax rate, political stability,
government rules and regulations etc. Thus various rules and regulation incorporated by
UK government on nutritional information on its drinks, standards provided by EU foods
safety and labelling etc. are important factors that are to be considered (Hough and et. al.,
2010). Also other political factors like Brexit may have direct or indirect affect on
Belvoir Fruit Farm in areas like trade agreements,potential opportunities such as
potentilla market, threats like trade tariffs. One of the biggest opportunists that firm is to
get is its Contract in country Durham that is reap benefit of diversification for it. Economical Factor: UK being a stable and growing economy have positive impact on
Belvoir Fruit Farm business. Due to premium prices and availability of cost effective raw
materials company is to get benefited. Europe been one of the leading consumers of tea is
to give advantage for firm to successfully launch its new product. Social Factor: Enhancement in people concern about their health and fitness and in
assorted educational set ups people are gaining cognizant of nutrients and drinks.

Besides Belvoir Fruit Farm ethos of making use of natural ingredients at premium price
combine is to reap advantage for the firm in success of its new product as well as in its
expansion. Technological Factor : It involves latest technologies or mew methods of manufacturing
like includes recycling . Belvoir Fruit Farm uses bottles that are 100 recyclable plastic
and is further finding out ways to for more eco friendly business approach. Also with
immense popularity of social and digital media firm is making use of various social sites
and apps like Facebook, Instagram etc. to reach out to a large number of its target
audience in cost effective and less time consuming way. Environmental Factors: Belvoir Fruit Farm being associated with natural and organic
products make use of natural tangerines in its products. This helps firm to reduce its
carbon foot prints as it will help firm to address issue related to climate change which
affects harvest of fruits and vegetables and in this case tea (Keough, 2015).
 Legal Factors: it involves a number of legal obligations including acts related to health
and safety, food manufacture laws, various taxation etc. that Belvoir Fruit Farm is
requisite to be adhered by.
P2. Identification of growth opportunities by the use of Ansoff's growth matrix
Ansoff growth matrix can assist Belvoir Fruit Farm to identify its various potential
market opportunities and to form strategies that could be most appropriate for capturing the
potential target market. Also it will provide an insight about the probable strategy that is best
suitable for firm to adopt as firm is to undertake a contract in Country Durham which project is
top provide immense opportunists of existing as well as new market. Mentioned below is the
analysis of Ansoff Growth Matrix for the company:
 Market Penetration: It is one of the most safest of all the strategies that could be
adopted by Belvoir Fruit Farm . It concentrates on selling a present product in existing
target market for diversifying its market share. Belvoir Fruit Farm being a small scale
venture that adopt this strategy to sell its various beverages to its existing consumers.
Company for its promotion can make use of electronic media like TV commercials,
radio, print media like magazine, newspapers and online media like facebook, internet,
and other social sites. This will benefit company to expand its business operations by
reaching out large target audience. Also, as firm is already associated with natural

products by providing quality products at competitive prices firm can enhance its brand
image (Li, Mobin and Keyser, 2016).
 Product Development: This strategy focuses on introducing new product in its present
market. For Belvoir Fruit Farm it is of high significance to gain knowledge about its
consumers base, their needs and desires, preferable ingredients or flavours etc. that are
likely to stimuli them to try and buy a particular drink at least once. This information
will help firm to make important decisions about which flavours are to be introduced and
ingredient to be used n its new product- herbal organic tea.
 Market Development: The focus of this strategy is to sell existing product or service in
an exclusively new market where there is more chance for firm to grow and develop.
Belvoir Fruit Farm with its efficient marketing and sales team cam launch its products in
emerging economies like Africa, China etc. where there is immense opportunities for
growth and development of its business (MacLeod, 2013).
 Diversification: This strategy is one of the most risky as it involves launching new
product in an entire new market. For attaining success in this regard it is of utmost
importance for firm to have efficiency in both its operational and marketing functions
which is subject to heavy investment. Belvoir Fruit Farm could adopt thus policy for
diversifying its operations. In this context firm could launch its new herbal organic tea
with different flavours in emerging economies like India where there is large percentage
if people who prefer tea over coffee. Thus, out of all the most suitable strategy that
diversification is the most suitable strategy that completely align with firms aims of
expanding its business in a new market by launching a new, innovative and most
distinctive product.
TASK 2
P3 Potential sources of funding and their advantages and disadvantages
Belvoir Fruit Farm is a family owned business that primary deals in soft drinks, fruit
juices, lemonade and other beverages. For acquiring higher growth and to diversify its business
company wishes to launch a new product herbal organic tea by realizing the need of health
conscious people who are fond of tea specially in UK. The contract that company is about to
undertake has £300,000 as its last limit to bid out of which company is already having £20,000
with it as a overdraft facility from bank. For the rest of the amount company i.e. £280,000 is to

raise funds through below mentioned sources by critically analysing their advantages and
disadvantage:
Bank Loan: It is one of the most common and easiest method to source out funds. Bank
loan could be described as the amount that is been borrowed by a firm from bank for a specific
time period and on which company is subject to pay fixed rate of interest. For Belvoir Fruit
Farm this forms one of the most profitable source as interest on bank loan is tax deductible. Thus
to fulfil the remaining contract requirement firm will raise funds through bank loan.
Advantages
 With bank loan the biggest advantage is that client is to just take care of making timely
payments. This comes as a major advantage over overdraft factuality where in borrower
is liable to make full payment wherever bank demands irrespective their efficiency to pay
or not (Mitchelmore and Rowley, 2013).
 Another benefit of bank loan is that it forms a cost effective way to fulfil fund
requirement as rate of interest is lowest in bank loan. This assist the borrower to save
some proportion their money. Also, with digitalization now a days it is easy to take loan from bank as there is
minimum paper work involved and also with competition in this sector too bank provides
various attractive schemes to encourage people to apply for loan.
Disadvantage
 Borrower is required to lend out some collateral security as mortgage against the loan that
is to be taken. Without this security bank does not sanction loan. Borrowers are subject to make regular interest payment on time. Any delay in interest or
non payment of borrowed amount legally authorizes bank to seize client's assets. It also
negatively impacts consumer's credit score.
Crowd Funding: In this method small amount are raised from large group of people via
internet. It is one of the alternative form of finance. This is generally opted by firm to raises
capital fr financing its new business ventures. It utilizes the vast network of people through
social media , websites or other crowd funding portals that brings entrepreneur and potential
investors together at same platform. It provides a large opportunities for a person to raise funds
from anyone who is having money and is interested in investing it (.Moseley, 2013). Thus, being

one of the easiest option in this era of digitation firm can chooses this option for raising its
remaining funds for its contact in Country Durham .
Advantage
With digitalization it has become one of the quickest way for raising capital without any upfront
fees to be paid. Also it give chance of pitching most appropriate client among the number of
investor who shares same interest and vision (Pallagst, 2010).
Disadvantage
It is a complex procedure involving a lot of work and legal formalities. Also there is high
possibility of stealing of a innovative business idea or concept in case it is not been patent or
copyright.
TASK 3
P4 Designing business plan for growth of organisation
Business Plan can be described as a written document that explains the nature of
business, different strategies related to firm's marketing, finance , profit and loss statements etc.
It give a brief about organisation's objectives and specific deadlines under which they have to be
attained. It also involves firm's SWOT analysis, information related to sources its finance and
other related information (Todes, 2012).
Vision & Mission:
Vision: Belvoir Fruit Farm works with vision to provide best quality and most exotic drinks at
reasonable prices.
Mission: Belvoir Fruit Farm is continuously working towards its mission that comprises to be
the leading brand in fruit beverages across globe.
Objectives strategies costs:
Strategic objectives: Objective of Belvoir Fruit Farm is diversify its business by launching
herbal organic tea in different exotic flavours within December, 2019. For attaining this
company will be following SMART objectives. This means that the goals and objectives that
are been set by firm needs to be specific, measurable, achievable, realistic and time bound.

Applying this company is planning to attain these target within the time duration of 1 year and
4 months. For this firm is launching herbal organic tea in various exotic flavours. Although
company is targeting all customers that are fond of tea however niche market for this product
remains those tea lovers who are conscious about their health. Belvoir Fruit Farm's herbal
organic tea is a mixture of various natural ingredients like ginger, lemon, ginseng etc that
revitalize the body and are natural antioxidants that provides various benefits like weight loss,
improving digestive system etc. Thus, through this company is expected to enhance its market
share and to gain edge over its rivals.
Financial information
To introduce its new herbal organic tea that is launched wioth the main objective of
diversifying its market share . Belvoir Fruit Farm is required to raise funds for introducing new
technology in its business process. For fulfilling its financial requirements company make use
of various sources for funds generation such as bank loan, crowd funding etc. that gives
maximum returns. Also, firm is required to cortically design its promotional stargates and make
use of various electronic and online media for advertising and communicating about its new
product. Mentioned below is the forecast for launching herbal organic tea :
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Manufacturing cost 2000 - -
Promotional expense 900 800 600
Advertisement
expense
600 560 580
Machine Maintenance
cost
700 800 850
Miscellaneous 200 400 300
Total Cost 4400 2560 2330

From the above discusses budget , it could be analysed that managers of Belvoir Fruit Farm is
need to consider company's cost of manufacturing. Also firm is required to do critical expense
on advertisement, maintenance and promotion of its herbal organic tea. For capturing attention
of its potential consumers firm is to sign some famous model for doing the ad campaign. Also
there are certain miscellaneous expenses that are to be incurred by firm to print out new menu
cards for providing information of various tea flavours
TASK 4
P5. Exit and succession option for small business
There are several option available with the directors of Belvoir Fruit Farm that could be
considered by them for making decision regarding dissolving or continuing business in coming
years.
Various ways to exit business
Liquidation: This option could be considered by Belvoir Fruit Farm in case coming is
facing losses for consecutive years for a long time and when it is evident for demand of its
products that there is no fshubham_qualityurther scope of firm to get stable. In this situation
Board of Directors of Belvoir Fruit Farm to take decisions related to winding up (Valler, Phelps
and Wood, 2012).
Advantages
Once company is liquidated firm's directors become free from any legal proceedings charged
against h them, until company guarantees to make the payment all the liabilities and debts. This
provide opportunities for company freedom to get enter into new ventures without any credit
bearings.
Disadvantage
The Directors are requisite to sell out firm's existing resources and assets for making
payment for all the debts in form of dividends.
Sell the business in open market: When the directors of a company decides to further
continue the operations of business it have an option to sell it to some other entrepreneur or firm

in open market against certain price. This provide benefit for directors to at least earn actual
value or investment of business that could further be invested else where in some new start up.
Advantage
Goodwill of company remains the same which help owners to retain its current
customers and to capture attention of new potential target audience.
Disadvantage
The new owner who have purchased the business introduce changes in the existing
structure, process and way of doing things. This brings the employability of existing staff into
danger.
Ways of succession:
Mergers and acquisition: It is one of the best and most profitable method through
which a firm could built its brand image in market. It involves, two or more companies combine
their business operations to expand their reach or gain large market share (Wu, 2015).
Advantages
It give firms advantage to improve their products and services as the result of pool of
innovative ideas and opinions that come from the proficient employees of both the firms.
Also it enhances sustainability and profitability of companies as they become
competitive by getting support of each other core areas of competencies.
Disadvantage
It make it difficult for companies to maintain confidentiality in maters related to profit
sharing, financial details etc.
Also, difference in working style, perception and objectives of managers of these firms are
likable to create chances of conflicts (Ziari and et. al., 2012).
CONCLUSION
The project undertaken concludes that planning forms an integral part in the success and
growth of an organization. Also there are several micro and macro environmental factors that are
to be take into consideration by a firm while planning out for its business expansion. Further, in
order to fulfill its finance requirement there are various sources of funds that are available in the
market. It is the duty of managers to critically evaluate advantage and disadvantages of these

sources for choosing the most profitable source. Moreover a detailed business plan of firm is also
provided.