Planning for Growth

Planning for Growth

Contents
Introduction.........................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities...........................................3
P2 Evaluate the opportunities for growth applying Ansoff growth vector material..................6
P3- Potential sources of funding available.....................................................................................8
P4- Designing a business plan for growth....................................................................................10
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..............................................................................................................12
Conclusion..........................................................................................................................................14
References..........................................................................................................................................16

Introduction
For the growth of the organization, it requires the business and strategic plan which is
the foremost aspect in the economy. Growth planning is a planned activity of business that
documents business holders in planning and following development in their revenues. The
restricted resources are assigned in the direction of the centred determination for adjusting
changes in the business gripped by digital trouble and separate out from competitors. In the
growth plan strategies and policies are elaborate which is crucial component in profits
generation and customer. The growth plan includes the fundamentals of the business to
display the worth to clients (Butler, D., 2019). There are several sorts of business are running
like start-up, micro, small, medium and large scale and every business requires to emphasis
on preparing of strategic planning so that growth rate can be improved. The proposal is
established for the period of 3-5 years. The businessperson also examines on the internal and
external factors of the environment which has an effect on the company. In the study the
discussion is grounded on the key considerations for the growth evaluation with Boston
Consultancy Group Matrix, Mckinsey matrix and Ansoff matrix. The sources of funds of
SME are defined and creating business plan and succession option for the business. The study
is done on the Marshfield bakery a Small-medium enterprise established in 1984 dealing in
manufacturing of quality handmade cakes, biscuits, and seasonal goods. Located in Dyrham,
Chippenham, United Kingdom which is looking for expansion.
P1 Analyse key considerations for evaluating growth opportunities
It is necessary for each and every enterprise whether it is small or medium, required
specific planning for the growth. In order to sustain at the whole market, companies are
applying specific model and framework which will provide them appropriate opportunity for
the growth & evolvement. After the Brexit uncertainty, most of the business affected
adversely in United Kingdom and now companies are looking forward to conduct specific
planning for development & growth. Marshfield Bakery is also planning to use specific
model which can helpful in their business expansion & enhance market growth rate.
Marshfield Bakery is considering appropriate model for the growth opportunities like BCG
Matrix & McKinney framework. The explanation about both model, differences and specific
recommendations are discussed below – (Cleberg, C., 2019).
Boston Consultancy Group Matrix

BCG Matrix is considered as planning tools which utilize the graphical representation of
the firm’s goods & services & helpful to decide the firm strategies related to the selling,
investment, inventory & other resources. This model also called as “Growth Matrix" which is
helpful to provide growth opportunities to the company. There is involvement of four
elements that are dog, cash cow, star & question mark. All these elements are determined on
the basis of market share & market growth level as per the high & low performance criteria.
Marshfield Bakery uses this matrix which can helpful to analyze growth status and generalize
the growth opportunities. The explanation of this matrix in context of Marshfield Bakery are
discussed below -
 Dog - This stage is contained those goods of the company hold low market growth
rate & low market share as compared to their business in the slow growing
marketplace. There in not necessary to invest in business because they generate
already low cash returns. It is a fact that some dogs can be good for the longer time
period, they can provide some synergies for another brands. The strategic choice of
this stage is retrenchment, liquidation & divestitures (Dadashpoor and et.al., 2018).
 Question Mark - This stage also called as “problem child" in which market growth of
the product is high & market share is low. Basically, question mark needs more closer
consideration because they contain low market share in rapid growing market which
consuming the high amount of money & incurring losses. Strategic choices are
considered such as market penetration, product development & market development.
 Star - This stage is demonstrating the high market growth rate & manage high market
share. Basically, stars come in both categories like cash generators & cash users.
Starts are expected to create positive cash flow but not all stars are become cash
flows. Strategic choices of this stage are vertical & horizontal integration, market
development & product development (Deng and et.al., 2017).
 Cash cows - This is also known as “Milked" because it considered as the most
profitable brand which can helpful to give as much money as possible. It determines
the low market growth rate & high market shares. Companies received cash from the
“Cows" that invested into the "Stars” to provide their support for further growth.
Strategic choices of this stage are retrenchment, diversification & divestitures.
McKinney 7 S Framework
This framework is considered as the management model which developed by the Robert
H. Waterman & Tom Peters in the year 1980. This model is essential to enhance the