Planning for Growth: Key Considerations, Funding Methods, and Business Plan

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION A.....................................................................................................................................3
TASK 1: Key Considerations for Growth Opportunities............................................................3
Different Methods for Funding- Benefits and Drawbacks.........................................................6
TASK 2: Business plan ...............................................................................................................9
SECTION B ..................................................................................................................................13
TASK 1: Business Exit Strategies.............................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Every business whether small or big have many strategic plans for planning for growth.
Creating a strategic plan plays a major role which helps in preparing a realistic vision for future
of any business and in maximizing the potential for successful business growth. 'My Baker' is a
small, passionate micro bakery newly opened bakery in London which deals with many bakery
products like cakes, cupcakes, cookies etc. and wants to expand its business in all aspects
(McLean, 2018).
This report will lay emphasis on the considerable factors of its growth opportunities and the
various funding methods and its sources along with the drawbacks of each. The research will be
followed by presenting a business plan and the scaling for its growth. The report will also discuss
the benefits and drawbacks of all the options of exit or succession. It will be finalized by
explaining the options to support the implementation of various strategies for the growth of a
small bakery.
SECTION A
TASK 1: Key Considerations for Growth Opportunities
Bakery Products is becoming the most demanding food in all parts of UK. There is a high
potential for business growth in dealing with bakery products (Derkanosova and et.al., 2020). In
UK, the Small-Medium enterprises are striving hard for the growth in the business of bakery
products (Plant, 2018). There are many recommendations to be kept in mind while evaluating the
growth opportunities. Porters Generic Model will be used by My Baker to understand the factors
competitive environment it will be facing which are as follows:
Cost Leadership
This means the bakery is maximizing the sales by reducing the prices of the products and
services. The firm can achieve high productivity, increase the use of technology and utilize the
advantage of greater bargaining power (Pavlogeorgatos and Kokkinou, 2017) . It offers little
differentiation which is accepted by more number of customers.
Cost Focus

This also aims at lower cost products but within a particular market area. The product
will remain basic but the prices will be high which will attract fewer customers (Sheereen, 2018).
This aims at making a profit.
Differentiation Focus
My bakers can take the advantage of this by introducing a new product which will be
different from the competitors who are attracting large number of people.
Differentiation leadership
The target of the company becomes larger. It takes the competitive advantages across the
whole industry.
My Bakers must use the Cost Focus as it is new in the industry and aims at earning more profit.
Pestle Analysis
There is a need for My Baker to gain the competitive advantage with growth
opportunities but along with that it must be aware of where the particular opportunity can be
used in the environment for business expansion as well. To analyse this, My baker uses Pestle
analysis to evaluate the effects of the environment on the bakery which is as follows :
 Political: The country's political views alter the products, or even the overall brand perception
because the social market in one country cannot be same as the other operating countries. For
example if the bakery is promoting via Facebook but it is banned suddenly in other country then
it will be of no use. So, political factors must be kept in mind while dealing with bakery
products.
 Economic: These factors effect the financial stability of the bakery. If the country is not
financially stable, then the people will not prefer high price products (Viegas and et.al., 2020).
So, the bakers must provide products of lower prices than the competitors which will attract
more number of customers.
 Social: The bakery must analyse that which strategy is socially acceptable which will create new
opportunities. For example if the person demand for more cakes, the bakery must provide wide
range of varieties of cakes.