Planning for growth

Planning for growth

TABLE OF CONTENTS
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Analysing key considerations for evaluating growth opportunities............................................3
Evaluating the opportunities for growth applying Ansoff’s growth vector matrix.....................5
TASK 2............................................................................................................................................6
Sources of funds for small and medium business, their benefits and drawbacks........................6
TASK 3............................................................................................................................................8
Business plan...............................................................................................................................8
TASK 4..........................................................................................................................................14
Assess the various exit or succession options for the company.................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
The SMEs are needed to formalize the strategy pertaining to the business implementing
the execution of the plan for the expansion or growth. In the context to the planning, the
organizations make good evaluation of its internal and external strength and weaknesses along
with the opportunities which is being available to it. In this report, Don’t-Look-Further Catering
Services (DLFC) is taken as an organization which is highly specialized business into catering in
Lincolnshire and is owned by Margaret Millions. The report presents the key consideration
which the organization is needed to consider while evaluating the growth opportunities. Along
with that, it evaluates the various methods through which the businesses access funds. At last, it
presents the business plan for growth and the ways through which small business exits the
business.
TASK 1
Analysing key considerations for evaluating growth opportunities
For the purpose of evaluating the growth strategies pertaining to the business, it is
important for DLFC to take into consideration various factors. A detailed evaluation of 4 generic
strategies are given below in order to beat the competition in the market.
Cost leadership: It is used where the business focusses on the reducing the cost for
delivering the product and services and also ensures more profitability which also adds to the
shareholder value (Islami, Mustafa and Latkovikj, 2020). The company needs to consider factors
like the impact cost reduction over the target customers and employees and how additional
profits will be utilized and will it be able maintain its position in the market through this strategy.
It is for long term and company needs to have substantial capital for investment.
Differentiation: Under this strategy the business focusses on the differentiating its
products and services from others or rivals. This strategy ranges from the full product diversity to
the unique features. The company needs to look at the current portfolio and its competitors, cost
of resources etc. Effective marketing is crucial in this strategy and should able to adapt to the
changing market and needs to have a creative approach.
Cost focus: This strategy has two aspects which are focus which accounts for when the
company mainly focusses on the niche market and becomes expert in delivering to that industry.
Here, cost refers to producing products and services for aggressively lower cost in order to
become cost leader (Porter’s Generic Strategies. 2020). This strategy helps in opening

partnership with other organizations as well within the industry and brings credibility to the
business and generates customer loyalty.
Differentiation Focus: This strategy is also having two aspects as one concentrates on
the differentiation while the other focusses on the fact that the business is moving towards niche
marketplace. It strategy will help the company in changing the market or customer through the
way of replacing the products.
Along with this, the company can also carry out external environmental analysis for
determining the opportunities that is being available to the business. For this, Pestle analysis is
being carried out which is explained below.
Political factors: This factor is having great influence over DLFC services in terms of tax
reform, health and safety guidelines. On determining such factors which can affect the business
will help in taking decisions in order to minimize such impact. It involves purchasing, cooking,
packaging and delivery which is the responsibility of the company.
Economic factors: Under the situation if the inflation rate rises in the economy where the
service is provided, it will affect the price of the ingredients (Christodoulou and Cullinane,
2019). This will consequently lead to increase in the price of the services which will reduce the
demand of the consumers. Also, disposable income will also have a huge impact over the
business operation of DLFC services.
Social factors: This factor is also important to be considered as nowadays people are
more health conscious which means that they are more into organic food preferences. Therefore,
DLFC services can consider it as an opportunity by focussing more on the healthy food which
will help in increasing the customer base.
Technological factors: The dynamic up-gradation in the technology can impact the
catering business for sure. The DLFC services can implement crucial technology which will help
in grabbing the customer attention like installing CCTV cameras, easy check out system,
accounting software. This will increase the flow and the profitability.
Legal factors: There are various legal regulations pertaining to the catering business
services (Shatskaya, Komaristaya and Kafian, 2017). The business DLFC services is required to
maintain hygiene along with meeting with quality and expiry and other hygiene conditions.
Environmental factors: The organization DLFC services is needed to implement
different strategies for the well-being of the surrounding environment. By making use of