Planning for Growth

This report discusses growth planning for small and medium-sized businesses, with a focus on Marshfield Bakery. It analyzes key considerations for evaluating growth opportunities, including PESTLE analysis, Porter's Five Forces, VRIO framework, Porter's Generic framework, and Ansoff's growth vector matrix. It also explores different growth options, such as acquisition and franchising, and potential sources of funding. The report provides recommendations for better growth planning of Marshfield Bakery.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.........................................................................3
Discuss the options for growth using different frameworks.....................................................12
Critically evaluate specific options and pathways for growth..................................................13
TASK 2..........................................................................................................................................14
Potential sources of funding with benefits and drawbacks.......................................................14
Justification for the adoption of an appropriate source of funding...........................................15
TASK 3..........................................................................................................................................15
Design a business plan for growth that includes financial information and strategic objectives
...................................................................................................................................................15
A suitable plan for business......................................................................................................17
TASK 4..........................................................................................................................................18
Exit plan for a small business...................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES:.............................................................................................................................20
Books and Journals...................................................................................................................20

INTRODUCTION
Growth plan is systematic activity help in making business goals, clear strategies and
plans for achieving them (Kim, McGuire, Savoy and Wilson, 2022). Growth planning allows
business to allocate their limited resources in adoption to change technology. Strategic plan is
part of growth planning, it helps in preparing attainable vision of the organisation and maximise
business growth. This report includes the detailed research on small or medium size company
with competitive advantages, growth opportunities by applying various models and methods like
Ansoff's growth matrix, PESTLE and SWOT Analysis. It also evaluates different sources of
financing growth with their traits and drawbacks. At last some recommendations are there for
better growth planning of Marshfield bakery. Company was founded in 2005, by Paul and Lynne
White. Marshfield bakery is small company based in UK. It manufactures handmade cakes,
snack bars and biscuits. Small business are solely owned company with less than 100 employees
working and generates less revenue in comparison with large organisations(Li, Xu, 2020).
There's need of growth planning for Marshfield bakery in order to grow their business and
operations. This report is based on growth planning of Marshfield company and future
opportunities.
TASK 1
Analyse key considerations for evaluating growth opportunities and justify these considerations
within an organisational context
Growth opportunities describes the chances to grow business remarkably (Li and Yeh,
2020). Some competitive advantages, development strategies, opportunities and their impacts on
Marshfield bakery company has been analysed through different models below:
PESTLE Analysis
It studies the factors that can influence organization from outside. It provides guidelines
to professional managers for effective decision making in order to attain future growth
possibilities.

1. Political Environment – Government policies are affecting Marshfield bakery, as they
have to make quality food with safety measures for country(Park and LaFrombois, 2019).
Government rules like corruption level, employment rates affects business of Marshfield
bakery.
2. Economic Environment – This factor includes economic factors like economic growth,
inflation rate, labour cost and consumer spending. During COVID 19, many companies
whether small or medium has to face consequences. Low demand and increased interest
rates affected the business of Marshfield bakery.
3. Social Environment – This social factor contains cultural values and expectations, age,
population growth rates and career attitudes. This factor help Marshfield bakery for
making better strategic plans for marketing through customers needs and expectations.
4. Technological Environment – This factor represents the production techniques,
communication resources, production and marketing technologies. COVID 19 gives
benefit to Marshfield by adopting home deliveries and growth in digital world.
5. Legal Environment – Health and safety laws, civil right laws, employment laws are
covered in legal factors. Marshfield has to follow rules and regulation made by
government for smooth function of company without make any offense to law.

6. Environmental Factors – This factor includes climate change impacts, natural vegetation
and green house gas emissions. Marshfield bakery has policy of recycling their waste of
plastic bags and minimizing their wastage of food.
Strengths
 PESTLE helps in analysing competitors in market, helps in keeping regular checks on
government policies and rules.
 Hygienic process of making bakery items can be considered as their strengths in legal
environment.
Opportunities
 Marshfield has growth opportunities in social and environmental factors. Social presence
of company can improve their brand value in competitive business environment.
 Elements of PESTLE help Marshfield in making strategies beneficial for growth through
digital development of their employees and can adopt new methods in production.
Porter's Five forces

1. Competition in Industry – Marshfield is small business company with many competitors
serving in bakery products. John Monaghan Ltd, William Joseph Ltd are competitors of
Marshfield. (Wann-Ming, 2019)
2. New Entrants in market – Marshfield company is dealing in only bakery products. Any
on can easily enter in companies market. This kind of food industry has many
competitors with easy approach.
3. Power of suppliers – This factor explain the power of supply chain, as it affects the cost
of input. Marshfield has many suppliers that are responsible for smooth supply of bread
items to restaurants or hotels.
4. Power of customers – It shows the power related to customers. Consumers are not
restricted to one same price as they can easily shift to another product with low price.
Marshfield should keep focus on their quality of product for retention of their customers.
5. Threats of Substitute - Marshfield serving a basic bakery products, their substitutes are
easily available in market. For surviving in market they should work on reward
customers, build trust among them, getting suggestion for improvements can help them in
surveying the threat of substitute.
Strengths
 Marshfield bakery works on improving their product quality and serve customers
according to their need and requirements.
 Number of suppliers can be strength for Marshfield company as they have better
visibility to them in terms of other competitive company.
Opportunities
 By adopting new methods of operations, Marshfield can survive in competition of new
entries.
 Marshfield can opt for new marketing strategies and plans that can be beneficial for
attracting new and retainment of existing customers.
VRIO frame work

VIRO frame work is an analysis of internal factors that help businesses to identify their
advantages and resources that gives comparative advantage(Wey, 2019). It includes different
dimensions these are
Resources Valuable Rare Inimitable Organized
Taste ✓ ✓ ✓ ✓
Variety of products ✓ ✓
Customer service. ✓
1. Value – It describes the resources that are valuable for company. Marshfield has its
bakery items like breads with different favours, different types of coffee, cakes and
customers as valuable resources.
2. Rarity – These are the resources that are rare and uncommon and not easily available for
other organisations. Marshfield flavourful tastes are rare, variety of products are also rare.
But Marshfield as base for customer rarity is not resource for it.
3. Imitability – This factor shows that if available resources are easy to copy by other
organisations or not. Taste and flavours of Marshfield are imitable, but products offer by
them and customers services are not covered in this.

4. Organised – It shows whether the resources are organised or not. Flavours of Marshfield
are well organised as they are the main resources of them. Customer service are not well
maintained by company.
Strengths
 VRIO helps Marshfield in anaylsing their internal strengths with their advantages.
 It also helps in identifying new methods of improvement in Marshfield company.
Opportunities
 It creates the opportunity for Marshfield by adopting new innovative ideas and
technologies for overcome the issues like customer services and providing services that
would be beneficial for Marshfield company.
Porter's Generic frame work
1. Cost Leadership – This strategy focus on reducing cost of production and offers the low
price products to gain competitive advantage in market.
2. Cost Focus – This strategy is based on when company is more focused on attracting
customers based on price.

3. Differentiation Leadership – This strategy is based on providing benefits that could help
in adding value to customers.
4. Differentiation Focus – In this strategy company focuses on offering new product to its
customers even though its price is high.
It has been evaluated that, Marshfield company should adopt and focus on Cost
leadership strategy, as it is beneficial for surviving competitive market(Zafar and Akhtar, 2020).
This cost leadership strategy of Marshfield cut down the production cost and serve products with
low cost generates more profit.
Strengths
 Marshfield can analyses their competitive advantage over competitors.
 Reducing cost of production can be a strength to Marshfield as it lead in generating more
customers and beneficial by leaving competitors behind them.
Opportunities
 Marshfield can opt for differentiation focus strategy by manufacturing new range of
product in market. This can be opportunity for them, as it enlarges the area of customers
with different tastes and requirements.
SWOT Analyses
SWOT Analyses help origination in finding out their strengths, weaknesses, opportunities
and threats. It show strategic plans and techniques used to identify strengths and weaknesses

related to business. This strategy can be used as tool for growth of company and achieve its
objectives.
Strengths
 Employees – Marshfield company has
loyal base of employees working
towards organisation goals of achieving
maximum profit.
 Operations – It has hygienic process of
manufacturing their quality product like
breads, cakes.
Weaknesses
 Limited customers – Marshfield
company only deals in bakery products
has limited customers, this would be
disadvantage to it.
 Leadership skills – Shortage of skill
person in management can lead
organisation in huge loss.
Opportunities
 Technological environment –
Adopting new methods for production
can be beneficial for Marshfield
company.
 Product differentiation – Marshfield
can also opt for offering new product in
market before analysing market
situation.
Threats
 Competitors – It is major threat to
company as they have competitors in
market offering same product.
 COVID 19 – Lockdown would be an
threat to many companies not to
Marshfield leads them in huge capital
damage.
Strength
 Employees can be a strength to Marshfield as they are very loyal and motivated and
working hard for attain goal of maximizing profit.
 Good cooperation between production and management also reflects strength of
Marshfield company.
Opportunities
 Technical advancement can be good opportunity for Marshfield company as it can help in
reducing time of production.

Ansoff's growth vector matrix
Ansoff's matrix also called Product/Market expansion grid, it is framework used by
management to analyse plan and growth strategies of organisation(Ikrama, 2019). It also helps in
actualize the level of risk connected with different growth strategies.
1. Market Penetration – It reflects the growth and sale of ongoing product in market. This
matrix shows the direct sale of product in competitive market. Marshfield company
should plan strategies to attract new market for sales growth.
Advantages
 Marshfield can apply this factors focus for more customer attraction through various
offers and discount.
 It also help Marshfield in acquiring competitors in market.
Disadvantages
 Different market penetration strategies used by Marshfield might affect existing
customers.
 Some time growth strategies does not go as plan and lead to massive loss for company.

2. Market Development – This factor represents the entering in new market with existent
products. It does not require huge capital investment and researches for expending
market.
Advantages
 It can help Marshfield company entering into new domestic or international market.
 It offers Marshfield company to serve different customers according to their market
expansions.
Disadvantages
 It has risk of failure by market expansion, Customers might like product or not.
Marshfield should analyse customers need and requirement before selling products in
different market.
3. Product Development – This factor used by organisations to improve their products and
services in current market. Marshfield can focus on changing their favours and taste of
bakery products can bring growth in sales (Spiller, 2022).
Advantages
 This strategy brings new opportunities for Marshfield company by developing new
features and changes in bakery products.
Disadvantages
 Marshfield can not predicts the results of this strategy and involves risk.
4. Diversification – This stargate includes growth opportunities through the development of
new product in whole new market. Marshfield can diversify there business by opening a
restaurant or by running new poultry farms or ready to eat food etc.
Advantages
 Diversification can bring new heights to Marshfield in terms of business growth in
competitive market.
Disadvantages
 It involves huge risk factor with huge capital investment for Marshfield to expand their
business in different sectors.
It has been evaluated that from all the above strategies, Product Development strategy
would work effectively for Marshfield company in growth opportunities. Marshfield can develop
their bakery items with more flavours and can present in unique style.

Discuss the options for growth using different frameworks
Some alternative structures Marshfield can adopt for business growth are
1. Acquisition of Business – It occurs when company purchases most or all shares to get
power and control of that company. Acquisition help in increasing the share value of
company in quite time.
 Acquisition is good opportunity for Marshfield to achieve rapid growth over short span
of time.
 Marshfield would be more stronger through acquisition, as it leads to expending their
customers base, reduced competition in market and making value by adding each
companies value separately.
2. Franchising – It is simply defined as structure of its ownership. Franchising refers to the
process when business owner grants license to one or more parties for doing business
while using same trademarks, brand value and goodwill of company.
 It can provide the opportunity like high rate of success to Marshfield company, as it
requires less cost in Franchising.
 Marshfield company finds its more easy to discover their financial resources through
Franchising.
3. Mergers – It combines two separate entity in new single business organisation. Mergers
can be beneficial for Marshfield company can get strengths through mutual benefit from
resources collaboration, increasing in staff, including skilled professional also. IT also
provides opportunities like expending business new geographical areas, it also reduced
the cost of operations.
Critically evaluate specific options and pathways for growth
It has been analysed that for small organisation like Marshfield company has many
models and theories for expansion of their business(Belletsky, Anstett and Teitelbaum, 2020).
All these factors has some positives and negatives related to growth of business. It is important
for Marshfield to analyse the effectiveness of options well before applying them in business, as it
might be beneficial for company. Product development, cost leadership strategy can be used by
Marshfield for their business expansion. Franchising, Acquisitions and mergers can be used by
Marshfield for expansion of business. Mergers would work better for Marshfield company as it
does not require huge investments, cost and reach new customers in no time.

TASK 2
Potential sources of funding with benefits and drawbacks
1. Start Up Loans – Business loans are available for providing funds to business through
banks, credit unions, online lenders(Mitchell, 2019)(Arslan, 2021). Small loan amount
doesn't require any security, but large loan amount requires. It involves formation of debt
and refund with interest amount.
Advantages
 It is convenient and easy to take loan from bank for businesses.
 Banks has multiple loan options from which business man can choose reasonable loan
lender.
Disadvantages
 Loans from bank could be a time taking procedure through extensive application process.
 On default of payback to loans will cause lose to your security assets.
2. Family and savings – Loans from friends and family in order to help finances in
business. This source can be most reliable among other sources.
Advantages
 This form of funding does not require interest to be paid later with principle amount.
Disadvantages
 Misunderstanding between families and friends can lead to massive damage to their
relationships. The more they invest more they want to be involved in business, which is
not suitable.
3. Partnership – This is business managed and operates by two or more party with split in
its profitability.
Advantages
 Through partnership source, business can started easily with few legal obligations. More
partners gives more capital to business.
Disadvantages
 More partners in company leads to more liabilities also. Each partner is liable for their
share in partnership.

Justification for the adoption of an appropriate source of funding
From the evaluation of above sources of funding, it has been analysed that there are many
options available for companies capital arrangements(Chen, Yu and Jin, 2019). Marshfield can
use different methods for locating their capital sources through Bank loans, Borrowing from
family, savings and partnership funding. Marshfield can use their saving and funding from
family for capital generate. This will lead to smooth operations and control the process of
Marshfield company.
TASK 3
Design a business plan for growth that includes financial information and strategic objectives
Organisation Name – Marshfield bakery
Executive Summary – It is small business organisation dealing in bakery products like,
breads, cakes, snacks, bars, biscuits, pastries and also in furniture, agriculture.
History of Organisation – Marshfield bakery was founded in 2005 by Paul and Lynne
White.
Vision – Marshfield has vision to serve best quality food products while satisfying
customers need and requirements.
Mission – Marshfield has mission to make innovative products that tastes great with
making every eating experience more satisfying to customers.
Objectives – Company has objective of more growth in competitive market. Marshfield
bakery should achieve its objective and maintain their goodwill through customers services. It
has objective to serve customers pure organic food with various tastes and flavorful dishes.
Stakeholders – These stakeholders of Marshfield company can contribute to the their
success. Engagement of stakeholders in Marshfield company can provide good decision making
strategies that can be helpful for future growth. They invest their money, knowledge, expertise
efforts and time in company for better growth opportunities.
Capital Funding – The best option available for capital source is bank loans and
savings. Marshfield bakery should go for bank loans as source of capital generation for their
expansion of business. There are different ways to source the capital, these are business loans,
family savings, personal investment, government schemes, fund raising campaign and many
more ways.

Operational Plans – Marshfield company has goal of achieving more sales from last
year. Marshfield company should work upon hiring skill professional which can determines the
best suitable strategy for achieving these objective of growth(Caguiat and Raguin, 2018). These
professional analyse the different strategies for growth of business and follows the most
appropriate method with less challenges.
Resources Plan – It involves detailed information about the resources that would be used
in production. It identifies, organises the list of required resources. Marshfield bakery company
will needed the raw materials like organic food, wheat flour, sugar, eggs and some flavorful
essence to add in cakes, pastries, biscuits.
Technological Plans – Marshfield bakery company can use technological plans to
improve their actions and communications. Technological plans coordinate with objectives by
improving method of productions and customer services of Marshfield bakery company.
Risk Factor – Impacts of Brexit in UK has reduced the trade markets and affects foreign
direct investments and economy growth. Brexit reduce the competitiveness and productivity of
workers. Marshfield bakery can face the challenges like labour market impacts and barriers to
trade.
Marketing Plans – This includes the strategies used for advertising their products and
services for sales. Marshfield can adopt the strategies like understanding customers, promotional
activities like offer, discounts and cashback.
Time Frame
 Gantt Chart -

SWOT Analyses of Marshfield bakery
Strength
 Employees of Marshfield bakery are
strength of company as they are well
professional and highly skilled.
 Marshfield bakery are more product
development oriented, as they invent
different flavourful cakes and breads.
Weaknesses
 Customer services of Marshfield
bakery are major concerns, as they need
to focus on customer needs and their
preferences.
 Technology used by Marshfield
company for data management is not
secured and lead to privacy concerns of
bakery.
Opportunities
 Marshfield Bakery can adopt diet
trends as opportunities in competitive
market. They should produce less oily
and cakes, bars with low sugar
involved.
Threats
 Marshfield bakery has more competitor
in market serving same product could
threat to company for surviving in
competitive market.
A suitable plan for business
It is analysed that Marshfield bakery should adopt different strategies and suitable
business plan for more growth(Paul and Et. AL., 2021). Marshfield should analyses factors like
capital financing, allocation of resources, operations, their marketing strategies, set time line and
evaluating risk factor involved in business growth.

TASK 4
Exit plan for a small business
1. Liquidation – It is the process of taking business down to its end and selling its assets
and inventory at high discount.
 Advantage and Disadvantage - Liquidation will benefit company to complete end of
their debts. This can lead to end of legal action. Through liquidation employees will lost
their job and Marshfield would no longer able to trade in market.
2. Third party sale – Business can be sold to any third person or unknown with proper
agreement between company and third party.
 Advantage and Disadvantage - Benefit of Third party sale could be better
understanding of business and their process to buyer. In some cases, buyer may need
proper guidance.
3. Management Buyout - In this plan companies existing managers buy large part or
whole company. It includes the purchase of whole assets and operation of business.
 Advantage and Disadvantage – Management buyout drives less cost and usually more
easy to adopt and buyers already have knowledge of business(Capelleras and Et. AL.,
2019). This MBO can result in difficulty of raising funds or capital, as they owner may
not have personal wealth to support capital requirement of business.
4. Acquisition – It includes one company to purchases all shares and control of other
company. It includes the mergers and takeovers of companies.
 Advantage and Disadvantage – This will be beneficial in creating new markets, product
lines, bring growth in revenues and increase in market shares of company. Acquisition
can increase price and affects the quality of products.
5. Initial Public Offering – It refers to the process of offering shares of private company to
public for the first time as a sources of capital formation. It transfers the ownership from
private company to public ownership.
 Advantage and Disadvantage – Initial public offering can be fundraising activity for
company. It also provides publicity and credibility to company. Going public will cost
more to company.

CONCLUSION
From the above report, it has been concluded that growth planning of small business
company in UK's Marshfield bakery. It should analyse the key factors for growth opportunities
through different models and frameworks like PESTLE analyses, SWOT analyses, acquisition,
franchising and mergers with their impacts on business as well. This reports also evaluates
different sources of funding to small business organisation like business loans and savings with
their advantages and disadvantages. Afterwards, it describes the business plan in details included
their visions, missions, objectives, operational plan, planning of resources, capital fundraising,
companies marketing strategies with risk factor involved. In last, it briefly explains various types
of exit plan for small business organisation like Liquidating and management buyout with their
effects.

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