Planning for Growth: Key Considerations, Ansoff Matrix, Sources of Finance, Business Plan, Succession/Exit Options

This report discusses the growth opportunities for Marshfield Bakery, including key considerations for evaluation, Ansoff matrix, sources of finance, business plan, and succession/exit options. The report also covers the competitive advantage and strategic objectives for growth.

Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
PART 1............................................................................................................................................3
P1 Analyse the key considerations for the evaluation of the growth opportunities and also
justify the considerations.............................................................................................................3
P2 Evaluate opportunities for growth using Ansoff matrix........................................................4
M1 Discuss on the options for the growth in order to understand the competitive advantage.. .5
P3 Sources of finance that are available for business including pros and cons of each. ............5
M2 Evaluation and justification o adopting appropriate funding for business...........................7
PART 2............................................................................................................................................7
P4 A Business plan for the growth of firm that involves strategic objectives and the financial
information..................................................................................................................................7
M3 Develop detailed plan for securing investment and growth, setting strategic objectives and
strategies by using frameworks..................................................................................................8
P5 Provide the succession or exit options to the small business together with its advantages
and disadvantages........................................................................................................................8
M4 Evaluation of succession or exit plan for business and contrast the options and make
recommendations......................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business growth is defined as the stage in which the business reaches to such point of
expansion and also seeks for the additional options that can helps in generating more
profitability. This is the kind of function of business life-cycle, growth trends of industry and
owner's desire for equity value creation. Marshfield Bakery is the chosen organisation for this
report, it is the it is the private limited company which is currently working with 82 employees
and manufacture biscuits and rusks, cakes, pasty. This is the family owned venture that was
established in 1984. this report will cover the key consideration for evaluation of certain growth
opportunities, application of ansoff matrix and the various sources of finance. Lastly it will add
the business plan and the exit or succession options for the business.
PART 1
P1 Analyse the key considerations for the evaluation of the growth opportunities and also justify
the considerations.
In such type of venture are having ample of opportunities for innovation, growth and
employment. It is generally having separate various sectors that includes cakes, pastries, bread
and biscuits. For this, Marshfield Bakery is using certain competitive analysis which are given
below:
Porters Generic Strategies Cost leadership: The small medium enterprise can focuses on reducing the cost of
product by which they can become low cost producer. This also helps in taking the
certain competitive advantages which is also becoming the performer in the industry.
Marshfield Bakery has to take the command on the prices by which they can attract large
group of customers. They can includes economics of scale for becoming the cost leader. Differentiation: It is related to the uniqueness which is being offered by an organisation
in the market industry so that they can attract large customers. It also majorly emphasis
on innovation in order to increase its ambit by analysing the needs. Marshfield Bakery
can use this strategy by using advance technology in their products so that they can
position itself in the unique manner.
 Focus: It is the aspects which is having narrow scope within the industry as the market is
being segmented and adopted by the organisation as per the demand of the target market.

It is having two variant that includes cost and focus in which Marshfield Bakery can use
the competitive advantages by becoming cost leader and second is differentiation focus in
which the company is shifted its focus to innovation to sustain in the competitive market.
It can be said that from the above discussion that, Marshfield Bakery can use the
differentiation by which they are able to get the certain growth opportunities by getting
innovation in their goods and services. It further evaluate the cost leadership which can hinder
the success of strategic decisions.
P2 Evaluate opportunities for growth using Ansoff matrix.
It is necessary for the company to think about the growth and expansion by which they can
generate certain profits. Ansoff matrix is the framework that is use for the strategic planing
which can help the Marshfield Bakery in order to identify the business opportunities out of four
and these are explained as follows: Market penetration: It is the strategy which is aimed to increase the sale of the products
as the company already operating in. It is related to increase the sales of the existing
products in the same market so that the company is dealing in the present. Marshfield
BAKERY can use this approach in the existing market so that they can rightly earned
more profits and being offers and discount. Market development: The main aim of this strategy is to have the is to increase their
market share so that they attract the large group of customer. It also emphasis on growth
of the existing products so that it gradually leads to increase the market share. Marshfield
Bakery can use this strategy as it is preferable for them to expand their business in new
locations and their sales can be improved by entering in new market. Product development: It is the strategy in which the new products is being introduced in
the existing market. The main aim of this strategy is to have the effective market position
in the market by which they can become the strong brand. It also aims to have the new
products by which large customer base can be attracted. Marshfield Bakery can use this
strategy by getting new products in the market and also leads to analyse the needs of the
market in order to overcome its losses.
 Diversification: It is the strategy in which the company can enter in the new market with
new products and services which leads to have good brand image. It is also considered as
the risky strategy which involves high investment due to its business expansion in order

to have high growth opportunities. Marshfield Bakery can use this strategy in the new
market so that they can get the potential buyers in the large market which is leading to
increase the market share.
It is analysed from the above discussion that business strategy plays an important role
which also helps in the growth and expansion by getting most of the available opportunities that
are available in the market. Marshfield Bakery can use this market development strategy so that
they can grab the large customer and meeting their needs and wants as well.
M1 Discuss on the options for the growth in order to understand the competitive advantage.
The product development is the less risky approach which also leads to have the better
products in the large market by which they can rightly enter in the new market and leads to have
the better options in such industry. Marshfield Bakery can use this strategy by understanding the
needs and wants of the customer in order to have long term sustainability in the large market.
P3 Sources of finance that are available for business including pros and cons of each.
Finance is the essential aspects as the overall functionality is depends upon funds of the
company which are available to utilise them. It leads to have the smooth functioning of the
business as they are having the sufficient amount of funds in the large market and come out as
the main concern is the financial scarcity. Marshfield Bakery can implement the certain funds
which are explained below:
Bank loans: It is analysed as the one of the best options for raising the funds from the
bank and giving short and long term interest rate. User is the one who entitled to repay the whole
amount through monthly instalment instant of paying them whole sum amount.
Benefits
 These are the aspects which are not
entitled to repaid on the demand instead
of offering fixed terms. Only certain interest is necessary to pad
by the loan taker and the product is
bring being shared with the bank.
Drawbacks
 There are the loans which are against
the assets of the company an integrated
with huge risk.
 In case of shortage of financial aspects,
the individual is unable to pay the
amount by which they become
ineligible for future loans.

Overdraft: It is the type of money raising as the credit from the bank when the bank loan
is given in the bank account which dropout out to be zero. It is the short term loan that is being
offered by the bank to the business account individual.
Benefits
 It is the type of access to funds by
availing the facility of overdraft. No such charges is being taken on the
monthly basis taken from the bank.
Drawbacks
 The bank takes the extra amount if the
amount of overdraft is exceeds the
authorization amount.
 In can of extension of overdraft the
person is entitled to pay the
arrangement fees.
Crowd funding: It is the type of funding which involve money is being taken from the
small proportion from the different people with the help of internet. It is the kind of alternative
which is having vast networking by the website of crowed funding. It includes the individual is
taking the consideration from the owner so that they can have the better approach in the market.
Benefits
 There is not upfront is being involved
as the funds is being raised in faster
manner. It is the way in which business ideas is
being given with the reaction of the
people as if they invest in different
business.
Drawbacks
 It is evaluated as the difficult process of
initiating finds in comparison to the
tradition methods of fund raising.
 It tales lot of hard work and research
before launching the final project.
AS per the above discussion, Marshfield Bakery can use the bank loan as it is the easiest
method of accessing the funds with less formalities. By using this Marshfield Bakery can have
the long term investment is that they can right invest in their various operations which is being
carried out in a smooth manner.

M2 Evaluation and justification o adopting appropriate funding for business.
Finance is related to the essential aspects of the business as without this the business can
be difficult to run their business operations in an appropriate manner. Marshfield Bakery can use
the bank loan as it is indulged with less interest rate is being taken and ensures the long term
sustainability. It also includes the small proportion from different people that can be complex and
lengthy process.
PART 2
P4 A Business plan for the growth of firm that involves strategic objectives and the financial
information.
Business pan is related to the roadmap or the outline which also helps the business
strategy and planning so that they can have further improvement in productivity and
performance of the venture. The main consideration of this plan is to make the identification foe
the growth opportunities by which Marshfield Bakery can resolve its losses and grab the large
customer base. This business plan is being created in order to have innovation in which healthy
smoothies with oats and different fruit flavours which can be packed in zinc packaging in order
to have long term sustainability.
Executive summary Marshfield Bakery is the small business which is planning to expand
their business in order to met their certain expenses and looses and
ensure smooth functioning. For this, they are planning to introduce the
new products that are healthy smoothies with fruits and oats which can
be customised at customer demand. This is also leading to have the
better profitability so that bakery can overcome its looses due to
pandemic where al the food industry have shut down and faces huge
looses.
Mission The mission of the company is to provide the quality bakery products to
their prospective customers with the huge variety of flavours by which
they can attract and retained their potential customers.
Vision It is the vision statement in which aimed to become the market leader
across the UK and to be the second baker who is meeting the customer

needs and wants.
Strategic objectives  To increase its customer base.
 To increase the sales by 30% in next 3 months.
Strategic option of
growth
The company is working expand their business by offering new
products to their customers in the market. Marshfield Bakery can use
the product development strategy by which they ca get their ample of
buyers and set their high brand value in the market. This is also leading
to increase the customer loyalty and have the customer segment of
market as the health is conscious.
Marketing strategy In order to have the strategy or conducting the marketing of the new
products, Marshfield Bakery can use pamphlets for promoting their
brand and aware its new customers. Furthermore, they can use the
emails and social media by which they can reach to their customers and
offers new products by Marshfield Bakery
Source of funds There are various options that are available for Marshfield Bakery in
order to raise its funds for getting new products. Out of all Marshfield
Bakery can use the bank loan which can help in getting funds with less
interest rate in comparison to the other sources.
M3 Develop detailed plan for securing investment and growth, setting strategic objectives and
strategies by using frameworks.
The business plan is the strategic frame work in which the company can have their higher
growth that is also leading to have the high value in order to increase the profitability.
Marshfield Bakery can get the plans by which they can grow their business by launching new
products.

P5 Provide the succession or exit options to the small business together with its advantages and
disadvantages.
For this purpose of analysing the market conditions, It is vital for the small business to
take different succession or exit options by which all the decisions can be taken regarding to the
growth. In context to Marshfield Bakery, there are certain ways which are given below:
Succession options
The options which majorly work for the growth of the business is the one that helps in
making the recognition of the business and make new leaders which can easily replaces the
existing employees. There is huge planning which is necessary in order to transfer the power one
person to other in case succession option which is overcome from the adverse condition. There
are various options which are available are given below:
Merger and Acquisition
It is the aspects which involves the company is merged with other in order to work
effectively in order to reach to their business objectives in an appropriate manner. This options
will help the SME to have the competitive advantage by having new product altogether. On other
hand, acquisition is majorly concerned with the certain procedure which involves the existing
business to the large ventures.
Merits with this method, capabilities and skills
of the employees can be enhanced with
new talent that can be accessed easily.
Demerits
 The merger can also increase the gap
with the communication because of
cultural differences with in the
organisation.
Franchising
It includes the selling of the business in which the certain model, logo, name of the
company are being sold to the private groups which is majorly having certain forms of
distribution and the marketing in which the owner of the business is having rights to operates
their business by using business system of franchisor.
Merits It is the aspects which is giving the
training to the venture in order to run
Demerits
 There is huge investment in these type
of business as the franchisor is taking

their business with high rate of success
as compared to the start up business.
huge amount of money before selling
its rights.
Exit option
This is the one of the comprehensive strategy which involves the determination of certain
aspects that influence the overall functionality of the business. By sing this, the company is
involved in analysing the factors which can influence the functionality of the business and leads
to have the issues that affects that sales and profitability of the company. Marshfield Bakery can
use any of these options while exiting from the market.
Selling business
It is not the similar aspects which us having two companies that are not combined but it is
the method which is easily considered as the way of cash out to invest and sell their business to
the employees or the competitors.
Merits In this, the owner have the chance to
minimise the stake or liquidate the
stake in can of successful, the profits is
gained by the business.
Demerits
 There is a loss of ownership in which
the profitable organisation is not
entitled to get anything.
Winding up
It is the method which involves the assets of the company is being utilised in order to
have the other methods to pay off the liabilities of the company and after the repayment,
remaining amount is being distributed among the stakeholders. There is lot of formalities and
lengthy process to wind up the certain business.
Merits By using this methods, the top level
management can get free debts ad
liabilities easily as the assets are sold.
Demerits
 there is high restricution foe the
business as the same nature of the
company in its future.

M4 Evaluation of succession or exit plan for business and contrast the options and make
recommendations.
There are many options for small medium business which is being used for succession
and exit in future. Marshfield Bakery can use for succession by which they can grow its
company. This can take merger and acquisition as the god options with big company in order to
built their customer reach.
CONCLUSION
From the above discussion, It is analysed that growth for any business is vital by which
they can be successful in near future. There are various growth opportunities which can be
accesses s that they can get the competitive advantage in the large market. There are four
strategies as per the Ansoff which also helps the business to expand and grow by using certain
sources of funding such as bank loans, overdraft. Lastly, business plan helps in making strategies
to grow the venture and there are various exit succession options which are available to the
business that includes merger and acquisition, franchising etc.

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