Planning for Growth - Desklib

This report discusses the key considerations for evaluating growth opportunities, Ansoff growth matrix, potential sources of funding, and designing a business plan for growth for Marshfield Bakery Limited. It also covers exit and succession options for small businesses. The report includes subject matter related to business planning, growth strategies, and financial management.

Planning for growth

Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1. Analyse the key consideration for evaluating growth opportunities.....................................3
P2 Ansoff growth matrix.............................................................................................................6
TASK2.............................................................................................................................................8
P3 Assess the potential sources of funding available to businesses............................................8
TASK3.............................................................................................................................................9
P4 Design a business plan............................................................................................................9
TASK 4..........................................................................................................................................13
P5 Explain exit and succession options for small business.......................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Planning is defined as the tool that include various business strategies and plans that guide
business to perform defined task in effective manner for the purpose of gaining higher
profitability and productivity objectives. Organisations formulates their own business plans to
gain various market growth and development opportunities as well as expand business in other
business areas. Business develops planning after analysing all internal as well as external factors
that impacts on business performance and functionality (Admiraal and Cornaro, 2016). In this
report the chosen organisation is Marshfield Bakery Limited, headquarter situated in Toll down
Barn, Dyrham, United Kingdom. Around 82 employees are working with organisation and the
organisation deals in bakery products like pastry, cakes, biscuits and other food products. In this
report porter generic model, pestle analyse and Ansoff matrix is discussed that facilitates
business to grow and expand business in another areas. There are various source of funding
along with their benefits and drawbacks are mentioned. Business plan is prepared that consist In
project 2 the business is quite design for better planning growth which include financial
information, business objectives and strategies as well as various exit and succession options are
mentioned in this project report.
TASK1
P1. Analyse the key consideration for evaluating growth opportunities
As in current business environment, the main purpose of business is to gain sustainable
competitive advantages through applying various strategies. These strategies facilitate the
business to overcome barriers, challenges and grab opportunities to expand business in market
place. There are various strategies are adopted by the Marshfield Bakery Limited for the purpose
of gaining all defined goals and objectives. Some strategies that provide various growth and
development opportunities to business are mentioned below:
Porter Generic Model: Porter’s generic model is defined as the framework that how
organisation gain various competitive advantages through utilising appropriate strategies (Fang,
Luan and Sun, 2016). There are three strategies are included in respective model that facilitates
organisation to expand business operations in other areas and well as ensure growth and
development of organisation. all these strategies are defined below:

Cost leadership: The cost leadership is defined aa the strategy in which business provides
product and services at lower prices or at discounted rate in the market for the purpose of gaining
higher market share and high profitability objectives as well as provides competitive advantages
then other competitors. Marshfield Bakery organisation use cost leadership strategy to expand
market share and customer base through providing organisational products and services at lower
price then other competitors with compromising quality. Organisation use various latest
technologies in operations and production to produce products at lower cost and provide them to
customer to gain competitive advantages.
Differentiation focus: Differentiation is the most effective strategy that provides competitive
advantages to organization through providing quality and new featured products in market that
are quite differentiate from other competitors. Marshfield Bakery organisation use innovation
and creativity to provide unique products to customers that attracts them towards brand.
Respective organization publishes various advertisements in market to enhance brand awareness
as well as stand out in the market then other organization (Ghosh and Chifos, 2017). As the
organization provides variety of products in market that are differentiated form other attract
customers and enhance loyalty and provides competitive advantages in market place.
Cost Focus: Cost focus is the most effective strategy that provides various sustainable
competitive advantages to the organization through focusing on niche market segment to offer
organizational products and services at minimum range of price. Marshfield Bakery organisation
focus on providing high quality products to customers at reasonable price that facilitates
organisation to achieve the objective of growth and expansion in market.
Differentiation focus: Marshfield Bakery organisation use differentiation strategy in which
organisation provides diversify and differentiated products to specific target segment. The
strategy help business to gain long term success through capturing higher market share and loyal
customers (Gilbert and Gurran, 2018). In this strategy, organization serves to particular market
segment. Marshfield Bakery organisation regularly bring various innovations in their products
quality, designing and packaging to satisfy all customer needs and demands and attaining higher
profitability objective.
As there are various strategies that help businesses to gain sustainable competitive
advantages in market. Marshfield Bakery organisation adopt cost leadership and differentiation

strategies to get higher market share and customer base in order to generate revenue through
satisfying customers needs and demands.
Pestle Analysis:
PESTLE analysis is defined as the strategic tool that is used by the organisations to
evaluate all external business factors and their impacts on business functions as well. The
analysis is utilised by Marshfield Bakery organisation to formulates business strategies and
planning to gain various competitive advantages and expand business operations at international
level. The factors of Pestle analysis are mentioned below:
Political factor: In external business environment various political factors are included such
as political stability or instability, foreign trade policies, environmental laws, trade restrictions,
and taxation policies that affect overall functioning and performance of organisation. UK
political environment is stable that contains various interventions of government towards
business that limits exploration of business on the other hand there are various policies are
formulated by government that supports to run efficiently and expand in other areas as well
(Guyadeen, 2018). Brexit is the aspect that affect UK businesses because of trade restrictions
with European Union.
Economical factor: Economic factors consist various factors that affect business in positive
as well as negative manner like fluctuations in currency, economy growth, inflation rate,
disposable income of customers and international business norms. Marshfield Bakery
organisation faces various problems and challenges due to implication of Brexit. So respective
organisation analyses the factors and develop effective strategies to overcome negative impacts
and ensure smooth running of business.
Social factor: Social factors are related to attitudes of population, health consciousness and
preferences of customers that depends upon various factors like demographic areas, gender and
age of customers (Harrison, J., 2020). The people of UK are very conscious about their health
that creates opportunity for Marshfield Bakery organisation to expand business and enhance
market share through providing better quality products and services to customers according to
their taste and preferences.
Technology Factor: As there are various technological changes, advances, innovations and
automations are happened in the business environment that directly impacts on business
performance and profitability. In the economy of UK various latest technologies are used by

organisational that provides various competitive advantages to business than others. Marshfield
Bakery organisation uses latest technologies in business operations and producing innovative
products to gain competitive advantages and attain sustainability objective. Organisation conduct
research and development to understand all current market trends than develop products
accordingly to enhance market share.
Legal Factor: There are various laws and regulation are involved in legal factors that affect
the operations of business such as health and safety laws, employment laws, consumer right
legislations that are passed by the government. Marshfield Bakery organisation analyse all these
regulations and implement them in business operations to run all functions efficiently otherwise
business if penalties by government agencies that impacts on organisation image in market.
Environment Factor: Environment factor become more important due to lack of raw
material, carbon footprints and pollution that impacts on environment as well as business
activities. Marshfield Bakery company evaluate all factors and use waste management process.
Recycling and adopt corporate social responsibility for the purpose of reducing carbon foot
prints. Organisation dispose waste through organic procedure that reduce pollution (Koutra,
Becue and Ioakimidis, 2018). All these efforts make effective brand image of organisation in
market and provides competitive advantages as well.
P2 Ansoff growth matrix
Ansoff Matrix: Ansoff matrix is defined as the strategy tool that is provides a specific
framework which facilitates the business executives, managers as well as marketers to
formulates effective strategies for future growth and development. It helps organisation to
identify market opportunities to enhance revenue and facilitates to develop new products or
tapping in new market. The matrix consists four strategies that is utilised by the organisation to
grow and attain higher market share objectives. Marshfield Bakery analyse all these strategies
and involve risk as well than adopt appropriate strategies that help in business development.

Market penetration: Market penetration is defined as the strategy in which organization
focuses on increasing sales through providing organizational existing products in existing market
place or enhancing market share. Marshfield Bakery company adopt various strategies to expand
market share like reducing prices of product to attract new customers and publish various
advertisement, promotions and distributions efforts to reach wider market segments to enhance
business sales and profitability.
Market development: Market development strategy is related to providing organizational
existing products in new market place. In this strategy business expand business operations in
new geographical areas, segment and customers (Mallon, 2019). Before entering in new market
segment, Marshfield Bakery company analyse all current market trends, potential customers and
their needs and preferences then take decision to enter in specific market segment is it is
profitable for organisation. Marshfield Bakery organisation use diverse form of advertisement
task to spread awareness about products and enhance market demand.
Products development: Product development strategy is related to launching new,
innovation and unique products in existing market place to gain various competitive advantages.
Marshfield Bakery organisation continuously innovate organisational products to attract
customers and enhance market share. Before taking decision, organisation conduct proper market
research and development to identify market trends and customer requirements then develop
products accordingly. As product is differentiated form other competitors so, customers are get
more attracted towards it and enhance the sales of organization (Melodi, Momoh and Adeyanju,
2016). Respective organization analyses products of competitors than take decision to produce
new product that meet all needs and demands of existing market. It facilitates the Marshfield
Bakery to expand business operations, enhance sales and help to generate higher revenue.

Diversification: Diversification strategy consist introducing new product is new market segment.
In this strategy, high risk is involved because both market as well as product is new organization.
On the other hand, it enhances the potentiality of business to generate higher revenue through
enhancing market share and customers. Organization can diversify products through adopting
related diversification and unrelated diversification (Mrazovic, Larriba-Pey and Matskin, 2017).
Both strategy facilitates the organization to expand business in potential market place and attain
all defined goals and objectives effectively.
From all above strategies, Marshfield Bakery organisation can adopt market development
as well as diversification strategies that facilitates the business to enhance market share and sales
objectives as well. Respective organization research market trends and publishes various
promotions that ensures reach in potential market and help to attain defined objectives properly.
TASK2
P3 Assess the potential sources of funding available to businesses
As there are various sources of funds are available for the business to get required amount of
finance for running business functions efficiently and expanding business operations other aera.
Each and every source involve various benefits and drawbacks. So Marshfield Bakery
organisation analyse all these sources than take decision to get fund form suitable source. Some
of sources of fund are described below:
Angle investor: Angle investors are defined as the people who have high wealth and want to
invest fund in new business ideas without having any personal relation for the purpose of gaining
stock and profitability share in that business. Angle investor plays important role in the growth
and development of small business through providing finance.
 Benefits: Angle investors can provide the same amount of finance that is provided by the
other formal funding financial specialist and large finance institutions.
 Drawbacks: It takes time to find suitable angle investor. Investor can ask for the share of
business and monitors business operations as well.
Leasing: Leasing is defined as assets-based financing that provides short-tern and medium-
term finance to SMEs. It is the source of finance for gaining capital in which two parties such as
lessor and lessee are agreed to sign a contract (Muhoza, Rutayisire and Umubyeyi, 2016). In this
source lessor provide assets to lessee to use against specified regular payment. It is an important

tool of financing for SMEs. It is optimal for small business in case they face difficulties to take
finance form banks due to lake of collateral and credit track.
 Benefits: Leasing balances cash outflow and it is convenient source of financing. It save
business cost, flexible as well as having no risk of obsolescence.
 Drawbacks: Lease amount is paid by lessee on regular bases that enhance burden and
lessee get only right to use assets.
Venture capital: Venture capital is defined as the source of non-banking finance and finance
intermediaries. It is the investor that supports SMEs through providing finance for expansion. It
is the form of private equity and finance that is provided to business for start-up and long-term
growth. Wealthy investors invest their funds in business for the perspective of long-term growth,
the capital is known as venture capital as well as investors are known as venture capitalist.
 Benefits: There is no obligations for repaying amount and venture capitalist are
trustworthy. Provides opportunities for expansion and help in building connections.
 Drawbacks: It dilutions of business ownership and control. It can lead to under-valuation
and business can take too much time to decide.
Crowd funding: Crowdfunding is defined as the source of funding in which business raise
small amount of money from various people through internet. Basically, it is the use of small
amount of funds from number of individuals to finance in new venture (Rahim, 2017). Social
media as well as various crowdfunding websites plays important role to bring entrepreneur and
investor together.
Benefits: It is the fast way to raise funds and a good way to test reactions of public as well as
facilitates investors to track the progress of project.
Drawbacks: Large finance needs are not fulfilled by this source of finance, if project failed
than it affects the reputation of business in finance. If business ideas are not protected then
anyone can steal them from crowdfunding sites.
Marshfield Bakery organisation evaluate all these options and adopt the most appropriate
one according to business requirements.

TASK3
P4 Design a business plan
Business plan is defined as the set of various strategies that guide organisation to achieve
all determined goals and objectives efficiently. Marshfield Bakery organisation identifies various
business process and resources than develop suitable strategies and planning for future course of
action to attain growth and development objectives. Business plan of Marshfield Bakery
organisation are discussed below:
Executive Summary: There are various steps are included in the business plan that
consist various strategies to expand business in market. As Marshfield Bakery organisation UK
based bakery that offers range of food products to customers and now looking for expanding
business at larger level.
Overview of company: Marshfield Bakery is small bakery that offers cakes, bread,
biscuits and other food products initially to their customers (Sakieh, Salmanmahiny and
Mirkarimi, 2017). Main objective of organisation is to provide better quality products and
services to customers at reasonable prices to enhance market share. Currently the organisation
operates in London and willing to explore in another locations.
Mission and vision of company: Vision and mission of Marshfield Bakery organisation
is to get loyal and trust customer to gain sustainable competitive advantages for long run. Along
with that organisation want to enhance sales for the purpose of strengthen positioning of business
in market place.
Objective:
 To enhance business sales by 30 % up to 2022.
 To enhance the current customer base and market share.
 To expand business operations in other countries.
Market Analysis:
STP approach:
Marshfield Bakery organisation analyses all current marketing trends and identify the
potential market segments to expand business operations effectively (Sun and Chan, 2017). The
model helps business to maintain effective positioning of organisational products among targeted
group. Strategies of STP approach are mentioned below:

Segmentation: Marshfield Bakery organisation divided whole market in various smaller
segments on the bases of their similar characteristics, attributes and personality, income, age that
help respective organisation to provide identify the potential customers and their requirements.
Targeting: After segmenting process, Marshfield Bakery organization targets potential
market segment and provide products and services according to their taste and preferences. As
the organization offers its products to every age group according to their taste.
Positioning: Through providing quality products and services Marshfield Bakery
organization developed effective and differentiated brand image in the minds of customers
(Tomaney, Krawchenko and McDonald, 2019). Organization utilize various methods like
promotion and offering free sample to develop positive brand image.
Situational analysis:
SWOT analysis is defined as the strategic framework that help business to formulate policies
and planning on the bases on effectiveness and area of improvement. Swot analysis of
Marshfield Bakery organisation are mentioned below:
Strengths Weaknesses
 Organization use new technologies and
includes skilled employees. Loyal
customer base and quality product are
the strength of Marshfield Bakery
organization that provides competitive
advantages to it then others.
 The organization has lack of resources
and skilled employees as well as
ineffective management that impacts on
business.
Opportunities Threats
 There are various expansion
opportunities are exist in market that
facilitates the organization to enhance
sales and profitability objective.
 Competition is the biggest threat of
organization that affect functionality
and profitability.
Financial activities:

There are higher requirement of finance in business, so organisation gather funds from
various sources to run business operations and expand in wider market. Financial projections of
Marshfield Bakery organisation are defined below:

Risk plan: Respective organisation maintain a specific amount as contingency fund to
handle all uncertainties properly. Appropriate training is provided to employees to handle critical
situations in best possible manner.
TASK 4
P5 Explain exit and succession options for small business
Exit options: Exist strategies are defined as the contingency plans that are formulated by the
business traders, owner and investor to liquidate all business financial assets and pay off all
liabilities. Exit options are mentioned in business plan that allows the organisation to discontinue
the plan with limited resources (Toulan, 2017). It is happened in the situation when business
faces extreme losses and difficulties to continue business than it is the best option to wind up
business. Some exit options are defined below:

Winding up: In winding up option of exit option, owner of business sale all organisational
assets and pay all business liabilities form that amount and the remaining funds distributed
among all business partners. Marshfield Bakery organisation adopt this exit option if it is not
able to run business functions efficiently and get success in expansion. Some benefits and
drawbacks are defined below:
 Advantages: Winding up is the better option because in it organisation can easily close
business functions without raising any legal disputes. In this option all liabilities are pay
off from business assets and rest amount is allocates among all partners in the proportion
of their share.
 Disadvantages: The process of winding up is done by the professional who is appointed
by the company so, owner of business has no control over the process. All business assets
can be evaluated improperly that enhance burden on business as well as it loose skilled
employees.
Selling in open market: In this exit option business sale business assets in open market
through auction. In the auction various wealthy people take part so, it is possible that business
get adequate amount of funds (Wang, Derudder and Liu, 2019). It is effective option through that
business can get appropriate value.
 Benefits: Even after the sale business operations are performed in same manner that do
not affect the existing goodwill of organisation
 Drawbacks: In this exist option business losses power as the business handed over to
another owner and that affect current business operations and reputation.
 Succession options:
Merger and acquisition:
Merger is defined is defined as the agreement between two business or parties that unites
two existing companies into one new company whereas acquisition is taking over the ownership
of other business. Merger is done to expand business operations in new market segments and
gain higher market share as well as enhance shareholder value. Merger and acquisition described
as the consolidation of different business financial transactions through merger, acquisition and
trade offers.

 Benefits: Merger and acquisition brings new innovative ideas for business and enhance
resources. It allocates risk among all partners and there are various tax benefits also
involved. Drawback: The process takes too much time and legal procedure. It enhances cost and
affect the business by losing experiences employees.
Initial Public Offering (IPO): Initial public offering is described aa the process that
facilitates the organisation to sell their shares to public directly to enhance business capital for
long period of time (Wang, Huang and Huang, 2018). Organisation must meet all the
requirements of stock exchange to hold initial public offerings that enables to provide shares in
primary market. Benefits: It is profitable for the public company as well as boost enhance organizational
brand image, goodwill and publicity in market.
 Drawbacks: There is long legal procedure is fulfilled by the organization that consist
high cost. Various regulatory requirements are done and all financial statements are
disclosed that affect business.
Form the all above options of merger and succession, respective organization adopts the
merger option that help business to grow and develop in market. As it is the small organization
that can expand business functions and gain opportunities with support of other firms.
CONCLUSION
As per above report, it can be concluded that organisations formulate business planning to
attain all defined objective of growth and expansion in market place. Business develops pans
after analyse all internal and external factors that help to run all business functions effectively
and efficiently. Porter’s generic model and Ansoff matrix strategies are implemented in business
to gain various sustainable competitive advantages. Business plan directs organisation to perform
all activities and functions effectively to achieve organisational goals and objectives. There are
various source of finance that provides funds to business for starting up and expanding in various
areas as well as certain exit and succession options are used by business.

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