Planning for Growth

This report discusses the importance of planning for growth in business and explores different growth opportunities and strategies. It covers the concept of PESTEL analysis and ANSOFF matrix. It also assesses succession and exit alternatives for small businesses. The case study focuses on Ella's Kitchen, a UK-based nutrition baby food company.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Examining different growth opportunities........................................................................3
PESTEL Analysis:...........................................................................................................................4
P2 Determining growth opportunity by applying ANSOFF matrix.......................................5
TASK 2............................................................................................................................................7
Covered in ppt........................................................................................................................7
TASK 3............................................................................................................................................7
Covered in ppt........................................................................................................................7
TASK 4............................................................................................................................................7
P5 Assessing succession and exit alternative for small businesses with their advantages &
drawbacks...............................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth refers to where firm carry out certain activities and goals with
motive expanding business by using plans and strategies. Every organisation need growth in
business to continue the management activities and operations. Planning for growth is necessary
to achieve the desired objectives and goals. Ella's kitchen headquartered in UK which deals in
nutrition baby foods and products (Biddle and Taylor, 2018). This report includes growth
opportunities and various source of funds and a business plan which depicts overall development
of business. Small business is dynamic in nature which can start and shut down any time so,
growth is important to plan.
TASK 1
P1 Examining different growth opportunities
Market is wide and is expanding at rapid level. So, it is crucial for business to analyse the
opportunities and alternatives available in market. Analysing of market situation assist in
identifying competitors and rivals in market. Also, growth opportunities are dynamic in nature
which they can be used by anyone who has eye on target market. So, to determine the growth
opportunities porter’s generic strategies is mentioned below-
Cost leadership- Cost leadership is strategy which states that operation and products
should be at lower cost to gain the market share. This strategy is effective and non-effective too.
Because Lowering the cost from competitors might lead to losing of market share. In context to
Ella's kitchen as their business is small and it is at developing stage they can use this strategy as
tool to acquire more customers (Colantoni and et. al., 2016).
Differentiation Focus- This is the another strategy which is used in business to gain
profit. In differentiation focus, firm try to become unique and different from its competitors. This
strategy assists in developing more opportunities for business as company adopt different
specifications and qualities in their services as well as products. Ella's kitchen uses this strategy
so that its customers will be attracted towards offers and new market can be acquired.
Focus- After the above mentioned strategy, later comes the focus strategy in which either
firm use differentiation or cost leadership strategy. It depends on market activities and firm
decision making process to adopt which types of strategy. In relation with Ella's kitchen entity
can use differentiation focus strategy because they have to be unique from their rivals then only

growth planning can be done in effective and appropriate manner. Cost leadership strategy
should be avoided because lowering the cost of product in small business might cause a huge
problem in growth and development of business (Park and LaFrombois, 2019.
PESTEL Analysis:
PESTEL is tool used by marketers as well as firm to examine and determine the factors
affecting business such as internal and external factors. PESTEL assist business in order to
protect them from these factors so that business activities carried on. PESTEL has elaborated
below-
Political factors-
These are those factors in which government involvement affects the nation’s economy.
Political factors such as labour law, tax policy etc. It is important for every business to analyse
these factors and to maintain positive relationship between organisation as well as government.
Positive impact- In context to Ellas kitchen they should maintain a line between these
factors and operation and business should be operating under the laws, rules and regulations
(Daniels and Lapping, 2017).
Negative impact- Conflicts and uncertain situation may affect the business productivity.
Economic factors-
Economic factors are those which includes inflation and deflation rate, wages, policies
etc. These factors affect the business and its activities at a broad level. Economic factors affect
the country's economy and growth.
Positive impact-In relation with Ella's kitchen, if they want to access their business at
global level than these policies and law should be considered.
Negative Impact- Nutrition and food products ingredients may increase which leads to
high cost of production.
Social factors-
Social factors comprise of cost of living, climate, surroundings, perception taste of and
individual. These factors are important as they affect the sales and profit of business. Product
demand mostly depends on these variables because it is crucial to for every business to focus
socially as well.
Positive impact- Ella's kitchen can use these factors which can increase their sales and
market area.

Negative impact- Market, preferences and perception of people are dynamic and can be
changed at any moment. So, Ellas's kitchen might lose their target market.
Technological Factor-
Technology has become necessity in today's world due to its uses, advanced functions
and performing multitasking operations. Technology factors comprises of advancement of
technology, use of AI etc. So, entities should focus on these factors to analyse needs and
requirements by customers.
Positive impact- Use of technology in firm can boost the growth of business. So, Ella's
can use advanced machines to make proper and healthy nutrition food. Adoption of this
procedure will increase firm productivity and output reliability (DODDS, DIMANCHE and
SADOWSKI, 2018).
Negative Impact- No matter technology simplify the work of manpower but it is not
beneficial all the time. Use of advanced machines by Ella's can cost them at huge level.
Legal Factor-
These are those which external and affect the business legally. Legal factors are
uncontrollable by firm. They include immigration, contract, commercial etc. These affects the
goodwill of enterprises.
Positive impact- In context to Ella's kitchen, they can follow legal factors to create a
brand awareness in market.
Negative Impact- Some legal factors in business can slow down the firm growth because
these elements are time consuming and distract the entity from market situations. So, Ella's
kitchen should be aware about these legal factors (Leick and Lang, 2018).
P2 Determining growth opportunity by applying ANSOFF matrix
ANSOFF matrix is a tool used by marketers to analyse market/product growth of
business by examining the various situation of market. This matrix work as back support for the
firm to select the most appropriate strategies which can give boost in the business.
Ansoff's growth vector matrix: This strategic planning tool is used in order to achieve
growth and success in the future era. This concept came into existence by the knowledge of Igor
Ansoff which implies plans and policies that firm had to Implies in order to achieve growth and
success for firm. The strategies which are being used by Ella’s kitchen are evaluated below as:

Market penetration:As the name suggest it signifies the successful selling of goods and
service to the specific market. This also focus on selling the existing product as compare to the
target market product along with the different service. In the context of Ella kitchen the
management has to focus on providing with the high quality increase of sales of the company by
developing the best food for the customer. Apart from this , it is vital for the company is to keep
there price low as this capture large market share effectively (Deng, Fu and Sun, 2018).
Product Development: This is consider as the second stage which is refers to the
invention or the modification of the goods and service to as increase the customer base in the
well define manner (Olesen .and Carter, 2018). These create the new market as this is essential
for the firm to keep on developing new products as to survive for the longer time duration. The
prolonged research is essential for characteristic wants or needs of the consumer .In discourse to
Ella's Kitchen, the supervisor used this strategy by offering the new trade good to client through
identifying the needs of customer. Further,the risk is high is the product development as this tend
to fail and may bring huge loss and increase the niche market for the product.
Market Development: In this stage the prime focus of the company is to identify the
market and existing product in the market. In other words, organisation tend to increase the
market share and region with the objective to increase the customer base effectively. In the
context of Ella Kitchen this is essential for the management to focus on market and conduct
proper research and development programmes in order to avoid any kind of risk and uncertainty
which is associated market development. In such kind of strategies the firm requires high end
resources to accomplish the desire aims and objectives effectively (Gounaridis, Chorianopoulos
and Koukoulas, 2018).
Diversification: As there is tuff competition present in the market which make immense
pressure on the firm to manage and control sales and revenue as to survive for the longer time
period. The customer have become more demanding as organisation have to take care of there
needs and wants to capture large market share effectively. In this the amount of investment is
quite high which can be considered as a risky strategy for business organisation. For the
organisation like Ella kitchen the management can diversify there product range as this will help
offering large variety of product under one roof. Hence this require planning and effective
strategies which tent to improve the experience of customer.

TASK 2
Covered in ppt
TASK 3
Covered in ppt
TASK 4
P5 Assessing succession and exit alternative for small businesses with their advantages &
drawbacks
Merger and Acquisition: This activity is used by managers of an organisation in order to
understand overall concept of another firm by which they can cope up together and able to fulfil
their business goals in an effective manner. On the other side, it refers to the mixture of those
organisations who lead financial transactions of particular assets, so that they can wind up entire
ways of achieving goals. Furthermore, acquisition is known as strategy in which firm is
associated with other businesses in order to maximisation into their fiscal abilities. Thus, it does
not bring any change within the existing firm which enables to dissolving small firm into the
larger organisation (Sarin, 2019). Therefore, it can be said that one firm buys other firm within
its entire activities. So that firms are mainly based on understanding along with they agreed on
both aspects. Relationship between two firms always develop best image of their business in
order to give better services to their customers by achievement of targeted goals and objectives.
It also allow them to growing effectively through reducing negative factors as per the changing
in business environment. This type of strategy always help firm to gain competitive advantages.
Benefits of Merger and Acquisition
 There are different types of benefits of these strategies, that are:
 It is helpful for maximisation of small and capital scale sue to the combination of two
organisations.
 It involves offering goods at marketplace by having several abilities. It ignore the risk factor by enlarging a portfolio.
Drawbacks of merger and acquisition:
 There are different types of issues due to merging of 2 organisations.
 It also maximise economise scale along with competition.

Liquidation: It is the process of selling goods and services in order to operate overall
profitable goals while technical dissolution of liquidation.
Benefits of liquidation:
 While liquidation strategy executes then government directly disclosed entire legal
actions.
 In this process, no more debts are comes (Birkin, Clarke and Clarke, 2017). A firm can easily sell its goods within its process.
Drawbacks:
 Sometimes payment can constantly pending.
 Along with manager of firm is needed to pay the liability from their earning.
 On the other side, valuable goods can be lost while liquidation process.
In reference with Ella’s kitchen, acquisition and merger strategy used by their managers
in order to overcome problems from the firm. Along with it is very helpful aspect in order to
increase business productivity or growth so that they can give better performance at high level
(Lê and et. al., 2016).

CONCLUSION
From the above business report, it has been concluded that plans and policies had to be
formulate in business in order to carry out analysis of both the external and internal factor. This
have direct impact on both productivity and profitability of the commerce. Thereafter Ansoff
Matrix is utilised in order to achieve market shares for long term period. PESTEL Analysis is
carried out in order to evaluate the factors of external environment and accordingly make
changes in the business plans and policies. Further it is recommended that small business should
go for either acquisition as this is the one of the safest method in order to capture the untapped
market area.

REFERENCES
Books and Journals
Biddle, N. and Taylor, J., 2018. Indigenous population projections, 2006-31: Planning for
growth. Canberra, ACT: Centre for Aboriginal Economic Policy Research (CAEPR), The
Australian National University.
Colantoni, A and et. al., 2016. Cities as selective land predators? A lesson on urban growth,
deregulated planning and sprawl containment. Science of the Total Environment, 545,
pp.329-339.
Park, Y. and LaFrombois, M.E.H., 2019. Planning for growth in depopulating cities: An analysis
of population projections and population change in depopulating and populating US
cities. Cities, 90, pp.237-248.
DODDS, R., DIMANCHE, F. and SADOWSKI, M., 2018. Planning for growth in islands: the
case of Cuba. Tourism management in warm-water island destinations: systems and
strategies, pp.95-107.
Daniels, T. and Lapping, M., 2016. Land preservation: An essential ingredient in smart growth.
In Growth Management and Public Land Acquisition (pp. 23-48). Routledge.
Leick, B. and Lang, T., 2018. Re-thinking non-core regions: planning strategies and practices
beyond growth.
Deng, Y., Fu, B. and Sun, C., 2018. Effects of urban planning in guiding urban growth: Evidence
from Shenzhen, China. Cities, 83, pp.118-128.
Birkin, M., Clarke, G. and Clarke, M., 2017. Retail location planning in an era of multi-channel
growth. Routledge.
Sarin, M., 2019. Urban planning in the third world: The Chandigarh experience. Routledge.
Lê, M and et. al., 2016. Personalized radiotherapy planning based on a computational tumor
growth model. IEEE transactions on medical imaging, 36(3), pp.815-825.
Gounaridis, D., Chorianopoulos, I. and Koukoulas, S., 2018. Exploring prospective urban growth
trends under different economic outlooks and land-use planning scenarios: The case of
Athens. Applied Geography, 90, pp.134-144.
Olesen, K. and Carter, H., 2018. Planning as a barrier for growth: Analysing storylines on the
reform of the Danish Planning Act. Environment and Planning C: Politics and
Space, 36(4), pp.689-707.
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