Planning for Growth: Evaluating Opportunities and Strategies for MOMA Foods

This report discusses the major considerations for evaluating growth opportunities within the context of MOMA Foods, including an analysis of internal and external factors. It also explores the use of Ansoff's Matrix to evaluate growth opportunities and provides insights into different sources of funding available to businesses. Additionally, it includes a business plan with financial information and strategic objectives for the growth of MOMA Foods.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Major considerations for evaluating growth opportunities within context of an organisation
................................................................................................................................................3
P2 Evaluating growth opportunities with the help of Ansoff's Matrix..................................6
TASK 2............................................................................................................................................7
P3 sources of funding which are available to business with benefits and drawbacks of each7
TASK 3............................................................................................................................................9
P4 Business plan that includes financial information and strategic objectives for growth of
business...................................................................................................................................9
TASK 4..........................................................................................................................................12
P5 Critical evaluation of exit or succession options for small business and making a decision
of appropriate courses of action...........................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth refers to formulation of management plans in which the executives
of a firm decide for growth of business. Major fact to be considered while performing this task is
that there should be optimum utilisation of resources (Dahl, Gorn and Weinberg,2018). It is
important for a firm to keep growing. Working at a same pace lead to fall in market share. This
makes growth such important part for an organisation. In this report Moma foods a London
based food joint is discussed. It was founded by Tom Mercer. It is a restaurant which specializes
in oats and healthy food. This report discusses about growth opportunities, key elements for
growth opportunities and ansoff's matrix of Moma foods. In this a growth plan is also derived
for company. This plan consists of growth opportunities, sources of funds which would be
required for growth. This report also discusses about sources of funds available for business with
their benefits and drawbacks. At the end discussion about its exit options are also discussed.
TASK 1
P1 Major considerations for evaluating growth opportunities within context of an organisation
Every organisation requires identify all the available opportunities with it in order to
expand or grow its business. In order to do this task organisation needs to make an internal
analysis of resources which are already present with it. Company also needs to know about their
core competencies, capabilities etc. Other than this in order to make a plan it is also required by a
company to analyse its external environment. Company must keep a check on all factors which
may directly or indirectly have an effect on growth opportunities of firm. In order to grow Moma
foods company needs to analyse various factors. Analysis on basis of Porter's Generic model is
discussed below:
Porter's Generic Strategies: When a company needs to differentiate itself from its
competitors in market an need to understand its core competency is required. In order to get
sustainable advantage a specific strategy need to be discussed (Qazi, 2018) . Below mention are
those strategies and its application on Moma Foods.
 Cost Leadership: In this strategy an organisation lowers its cost in comparison with its
competitors. This makes it easy for firm to generate profits in huge amounts by achieving
economies of scale. Economies of scale helps in reduction of per unit cost (Dobbins and
Mapp Jr, 2019). By use of cost leadership companies end up arising a price war in

industry. This is best strategy if a firm wishes to have market leadership. This also
spreads brand awareness of product. In context to Moma foods company does not have
huge amount of production. They could not afford reducing the prices. This is the reason
Moma foods is not adopting this policy. Although prices charged by Moma food are not
to high either. It gives a challenge to its competitors, but reducing its price will lead to
price war which could lead Moma food to bear losses.
 Differentiation Leadership: In this strategy company aims at providing its customers
with different and unique products or services which their competitors cannot offer. It is
necessary to fulfil specific customer requirement in order to differentiate. In this strategy
providing customer with unique product feature which will increase value and
satisfaction a consumer receive after consuming the product (Dobbins and Mapp 2019)
. Moma foods follow this strategy. It provides oats with whichever flavour customer
requires. Customers ca customize their meal and this gives it a differentiated advantage.
 Focus: In focus strategy company adopts only one strategy at the end. Rather than using
both cost as well as differentiation strategy company either provides distinguished
products or lowers down the costs. When talking in terms of Moma foods , company
focuses on differentiated strategy. Management of Moma food are aware of the fact that
reducing prices is not an option for them so they are trying to provide customers with
good experience.
P2 Evaluating growth opportunities with the help of Ansoff's Matrix
Ansoff Matrix was a matrix derived by Russian American Igor Ansoff. It is a planning
tool which helps senior managers in formulating strategies for growth of a business organisation.
This consists of four different strategies out of which a company can choose from one to work
on. A company can also use more than one strategies from the following. The four strategies of
growth and how Moma foods use it are mentioned below:
 Market Penetration- In this a company focuses on the selling of service as well as goods
within a particular market. This is focused on offering an existence product to the new
market. By this, the company is able to earn profits and money. In reference to the Moma
foods, it is concluded that this strategy is helpful in providing the new cereal oats to the
existing customers of the company(Qazi, 2018). It is important for any organisation that
it has used this staretgy effectively within the market.

 Market Development- according to this strategy, it is analysed that marketing of present
product within the company in marketed in the new market. This is a process for
entering a new market and achieving success among the customers. The main motive of
any organisation is to earn profits and money (Murshid and et. al. 2016). In context of
Moma Foods, it is seen that it is using new technology for providing products and
services to the customers.
 Product Development-Product development is defined as the alteration of the products
and services for making any new change within product. This can be product design,
packaging and labelling as well developing the new product through branding and
advertisement. A research is required for analysing the actual needs and demands of the
customers. In context of Moma food, it is seen that thei company is ofefring good quality
food products to individuals. The risk for this company is high in this strategy because
new product can not accepted easily by the customer.
 Diversification- According to this strategy, it is analysed that profitability is increased by
the expansion of company in new markets. It is important for companies to enhance their
markets share and achieve the organisational goals (Manning, 2016). There are two type
of diversification is taken by company one is related diversification in which there are
same type of products and goods are offered by the company .(Simón-Moya and
Revuelto-Taboada, 2016). In context of Moma Foods, the manager used the related
diversification strategy because they have an idea of existing goods of the company.
Boston matrix of Moma Foods-
Boston matrix helps an organisation to analyse portfolios of their brands as well as
businesses (REZAEI, KHAVARIAN and GHAFURZADEH, 2016). Its has four categories as
mentioned below-
 Stars- These includes products which have high market share in high growth market.
They need heavy amount to be invested in them. For Moma foods its star product is
Moma Oats (Achtenhagen, Brunninge and Melin, 2017).
 Cash Cow- These includes product which have high market share in a market whose
growth is low. Cash Cow for Moma foods is Moma Plain Porridge whose sales never
stops. Also it never requires any investment.

 Question Marks- These are products which have low market share but operate in
markets with high- growth. Muesli provided by Moma foods are contained as question
marks because even after investment the sales of it does not increases.
 Dog- These includes product which have a low market share in markets of low- growth.
Porridge sachets provided by Moma Foods are Dogs according to its Boston Matrix
(Chan, and Li, 2016).
This is how Moma foods is using competitive strategies and Boston Matrix in order to improve
its performance in market and gain maximum market share. The products which are actually
benefiting moma foods on which it should focus most are cleared from Boston Matrix.
TASK 2
P3 sources of funding which are available to business with benefits and drawbacks of each
Every business organisation need finance for implementing day to day operations and
functions for earning more and more revenue. In context of MOMA food, the manager
emphasised on performing their day to day business functions and transactions in an appropriate
manner. The supervisor focuses on fulfilling the financial responsibility in the business
organisation. There are various source of fund which is going to be discussed below:
Bank Loan: It is the quantity of money that is taken by the business organisation from
financial institution or bank on security base. It is a legal contract between bank and company in
which company have a financial obligation to repay the amount with interest rate. In context of
MOMA food, the supervisor get quantity of money from bank for investing in their business for
boosting profitability level (Solimun and Fernandes, 2018). In return company repay the amount
with interest rate within a stipulated time period. Bank loan is considered as one of the most
suitable source of fund for financing the new business venture.
Advantage Disadvantage
 Bank loan assists when a company
want money for investing in shares as
well as assets for future success and
growth of the company.
Bank charge high interest rate from company
to repay it in stipulated period of time that
increases the cost for SME company.
Bank loan is one of the popular source for Herein, one of the main disadvantage of bank

financing new business venture and SME
company.
loan is increasing compliances as well as
additional burden on price of goods.
Crowd funding: It is described as a process in which small amount of money is taken
from large institution for financing their business(THOMAS and SORIANO , 2018). The SME
company take finance from huge number of people to run the business activities and function in
an effective as well as efficient manner.
Advantage Disadvantage
The benefit of using crowd funding by MOMA
food for raising small quantity of fund from
large number of people or institution for
financing small and medium business.
Hereby, the main drawback for MOMA food
is it take a large amount of money or efforts for
operating a business successfully.
Evaluate potential sources of funding:
From the above mentioned source of fund it has been examined that bank loan is
considered as a most appropriate source for financing the SME company as well as new business
venture. The bank provide loan to such companies for financing its business activities and
operations that helps in boosting profit of the business organisation.
TASK 3
P4 Business plan that includes financial information and strategic objectives for growth of
business
Business plan is a written document adopted for achieving goal and objective of business
organisation within a targeted period of time(Sánchez‐Hernández and Cobo, 2019). Different
financial prediction can be made in order to arrange funds. Various strategies and plan of action
can also be analysed through the use of business plan.
Executive Summary: MOMA food is a SME company situated in London providing
healthy breakfast to its customer. They are marketing their goods in various supermarkets.
Furthermore, this company is planning for expanding their business for adding new products to
their existing product line. In order to achieve this, it is essential for company to understand the
need and preferences of its user (Cobetto and et. al., 2018). Along with this, the company has

taken a decision for introducing cereal oats which is healthy breakfast in order to attract more
and more customer.
Vision & Mission: The main vision of the business organisation is to provide the healthy
breakfast to its customer in order to satisfy them.
The mission of the company is to provide surety that products are both healthy as well as
tasty for children which is the main purpose of this brand. This company offer healthy products
to its customer in order to retain them for a longer period of time.
Goals: The main purpose of MOMA food is to build awareness for user towards their
new launches such as cereal oats (Van Oort, 2017). Also this company want to boost sales of
their existing products. Moreover, the main motive is to improve the brand image and
reputation of company.
Objectives: The objective of this organisation is to boost sales by 30% by launching
innovative products in upcoming period of three months. It will helps in increasing the current
market share by 10% as steps are taken for increasing promotional strategies of the company.
Shareholder expectations: It is important for business organisation to determine
stakeholder interest so that sustainable development prevailing in MOMA food(Burgwald,
2019). Moreover the stakeholder expectations is also taken into account which is going to be
discussed below:
 Employees:Employees are those individuals who work in a organisation full-time or part
time under a contract (employment contract). In return of their work they receive
compensation in form of wages, salaries, perquisites, benefits etc. In order to analyse the
various opportunities of MOMA food , it is very important to keep all employees
motivated towards achieving goals in an effective manner (Yan and et.al., 2016). Also the
manager provide training to all staff members in respect of new product launch in the
company. This helps them in increasing efficiency as well as productivity of the
company.
 Shareholders: Shareholder interest has taken into account because they are the persons
who have invest in the business organisation. The company should provide high returns
to shareholder in order to enhance their motivation as well as satisfaction level.
Shareholders are owners of company. They have provided company with financial

backup so that they get dividends in return for lifetimeb (Schuch, Morgan and Choy,
2017).
 Customers: Customer plays a very important role in every company. Customers are
those who generate revenue for a firm. All functions in a business start from a need or
want of customer. Customers use product and services provided by business and pay for
satisfaction or value provided by that product or service (Schulz and Hubbell, 2018). In
context of MOMA food, they offer healthy breakfast to its customer in order to gain
competitive advantage over rival firms. The manager of company build effective
strategies, plan and procedure in order to satisfy customer.
 Society: Society is the values and beliefs of people in area where business is growing. It
is important for a business to work according to trends, lifestyle and perception of
society. In context of Moma Foods company is adapting recent changes in taste and shift
of population towards healthy eating. This makes it easy for society to accept Moma
Food.
SWOT ANALYSIS-
Swot analysis is internal analysis of a firm which helps it to its strengths, weaknesses,
opportunities and threats.
Strengths Weaknesses
No other competitors have such variety of
flavour available for oats as Moma Food.
It has a loyal customer base who are asset to
company (Thornley, 2018).
Company needs to work on its services and
train its employees.
Opportunities Threats
Other than oats they can specialize in other
healthy food such as whole wheat etc.
They can start chain of restaurants in different
part of UK.
There are a number of competitors present who
also serve healthy and dietary food.
STP ANALYSIS- STP stands for segmentation, targeting and positioning. This analysis
provides organisation with a broad framework in order to simplify the process of market

segmentation. In this strategy the consumers in market are distributed and profiled as per
variables, market characteristics and tendencies . (Lin and et. Al,2017). The steps of
segmentation, targeting and positioning are performed in the same order. STP strategy can be
adopted by management team of marketing for analysing target market which has to be catered
by the business organisation. MOMA food has adopted this plan of action after analysing target
market for positioning the product in the mindset of consumer.
Segmentation: In this strategy, the overall market is divided into different groups such
as demographic, psycho-graphic, geographic and behavioural segment. In segmentation there are
four characteristics on which a business will divide market. These are measurability,
accessibility, sustainability and action ability(Bueso, 2018). The MOMA food segment their
market after considering different factors in the market such as age, gender, occupation,
education and income of the individual. This helps them in increasing motivational as well as
satisfaction level of customer.
Targeting: In the target market the company focuses on targeting their customer in order
to satisfy them. Focus in this step is paid on promotion or advertising planning. In today's
scenario companies have overcome traditional ways of promotion like print media,radio
televisions etc. People are more dependent on internet now. All the social media platforms are
used efficiently in order to target customers .In context of MOMA food, the manager focuses on
targeting a particular group of customer who is highly conscious towards their health. They
provide healthy breakfast to its target customer such as oats as well as newly introduced product
like cereal oats to its customer. It helps company to boost productivity and profitability level of
business organisation.
Positioning: In positioning strategy, the manager of company emphasised on positioning
their product in the mind of consumer. They create positive brand image and reputation of
company in the mindset of its user. It is the final stage in this process. Main focus is paid on how
customer actually see your product in front of consumers. This is the reason why consumers
perception have an impact on how a company positions its brand in market place (Pugalis and et.
al.2019). In reference of MOMA food, efforts are made for expanding their business online that
helps them to attract customers.
Marketing Mix: Marketing mix is a structure adopted for taking a decision related to
product, place, price and promotion. The MOMA food launch new product such as cereal oats

for attracting large number of customers. The marketer provide the right product distribute at
convenient place for its user as well as online presence is planned by company(McLain and
Lewis, 2018). Price of newly launch product should kept low in order to achieve competitive
advantage over rival firms. Promotional strategies used by MOMOA food such as advertising,
sales promotion and publicity in order to attract more and more customers.
Financial Projection: For every organisation it is very important to consider overall
requirement of finance for launching new products (Zhong, J.and et. al. ., 2019). Financial
projection refers to forecast of a firms futures revenues and expenses. In a projection internally
available historic data is used. For external factors in projection predictions are based on
experiences and existing market trends. The strategies, plan and policies made by MOMA food
related to products also require large quantity of financial resources. Therefore, finance is
essential requirement for operation of business activities and functions. Projected cash flow
requirement which is going to be discussed below:

From the above mentioned projected cash flow it has been examined that there is a needs of
fund of 10,000 for introducing new product. There is also the need of purchasing raw material
for production process of new cereal oats for its user. It has been identified that the sales will be
approx 2500 units that depend on first month credit. It helps in increasing 10,000 units in
upcoming period of time.
Monitoring and Controlling: It is very important for every company that they must
impose effective control on operation and activities of business organisation. It is essential to
follow a path for improving the performance level \(KARP, 2018). Monitoring is important to
follow a path for key performance indicator of a specific business plan. In context of MOMA
food, the supervisor follow the path related to various activities that have to be carried out for
launching new product in market. Also they focuses on different area such as optimum utilisation
of resources and finance etc.
TASK 4
P5 Critical evaluation of exit or succession options for small business and making a decision of
appropriate courses of action
Business require huge amount of finance for operating its business activities and function
in suitable manner. It is important for business organisation to have adequate amount of fund to
run its business operations (Zhang and et. al., 2019). Otherwise it is impossible for company to
survive in the competitive market place. Different strategies, plan and policies which is used by
MOMA food which is going to be discussed below:
Merger & Acquisition: Merger and Acquisition plan is adopted by the company in order
to merge its business with other one as well as buying the business of other person. It is most
beneficial condition for company to operate its business activities and functions in an effective
manner. In a merger approvals from board of directors of both the companies is taken along with
approval from shareholders. After a merger is completed, acquired company becomes a part of
the company which acquired it and no sole identity of acquired company remains. While in case
of acquisition, majority of shares are taken by acquiring firm. Their is no change in name or
structure of firm in acquisition. There are various advantage and drawbacks which is mentioned
below:
Benefits:

 One of the main advantage of Merger is to enhance the current market share of
the business organisation.
 Merger helps the company in achieving tax benefits as well as reducing the
whole cost of capital that increases the overall return.
Demerits:
 There is a possibility of conflicts and grievances arises in the company if both companies
will not adjust with each other that imposes direct impact on productivity as well as
profitability of company in adverse manner.
 Sometime, it is very difficult for companies to communicate and coordinate with each
other that imposes negative impact on performance of subordinate of business
organisation.
Liquidation: It is the plan of action in which assets and properties are sold as well as
business function comes to an end. It is the condition where manager of business realise that the
company is no more profitable thus it results in closing the business (Colantoni and et. al.,2016).
This is a situation where business owner understand there is a need of winding up of the
company.
Benefits:
 Liquidation strategy is flexible because it helps business owner to easily sell their goods
in order to recover money from the marketplace.
 It is very beneficial because at the time of winding up the company can easily covert their
products into cash.
MOMA food can use the strategy of merger as a exit option when they understand it is
unable to survive in the competitive marketplace. This is good choice for business organisation
as it does not affect the whole performance of company in adverse manner. It helps company to
retain customer base for a longer period of time by merging their company with other business
organisation.
CONCLUSION
From the above mentioned topic, it has been examined that business planing for operating
its activities and functions is very important for increasing profitability of company. The
business organisation must consider the micro and macro environment before taking a decision
related to future sales ad growth of company. Porter generic strategy is essential for detailed

analyses of future growth of business organisation. In addition to this, Ansoff matrix is adopted
for increasing future sales of the company. The suitable business plan is important for achieving
business goal and objectives within a stipulated time period. Along with this, the main objective
of company is to provide healthy breakfast to its customer for boosting profitability of the
business organisation. This helps in increasing future growth and development of the company.

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