Planning for Growth: Analysis, Strategies, and Business Plan

This report by Desklib discusses the planning for growth of Candy Floss Crazy, a funfair rides, catering, and games organization. It covers the analysis for evaluating opportunities for growth, Ansoff's growth matrix analysis, finance sources, and business plan for growth. The report also includes PESTLE analysis and Boston consultancy group analysis for Candy Floss Crazy.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Analysis for evaluating opportunities for growth..................................................................3
P2 Ansoff's growth matrix analysis.............................................................................................7
P3 Finance sources with the advantages and disadvantages.......................................................8
P4 Business plan for growth.......................................................................................................9
P5 Exit and succession options for the business along with its benefits and drawbacks..........11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning is the framework which involves thinking about the activities which are
required for achieving the targets and goals of the business. It is considered as an essential
function of the management. It is very important to form a view before performing any particular
task or assignment. The process of planning is related to the innovation and creative discovery of
various strategies. This can be achieved by firstly setting out the objectives for the business. It is
one of the most essential steps that managers take for effective and efficient management. It
gives a proper direction to the management which helps in minimising the risk and eliminates
wasteful activities. It promotes creativity and innovation in the company and also helps in
making important decisions(Becker and Kaza, 2022). It is a continuous process which leads to
greater efficiency in the operations. This report is prepared on Candy Floss Crazy which is a
funfair rides, catering and games organization. The company was founded in the year 1986 by
Jason AR Moody. The headquarter of the business is situated in West Yorkshire, UK and it
operates in various countries such as Canada, UK and many more. The report will discuss about
the various factors which needs to be taken into consideration by SMEs for measuring growth
opportunities. The various ways of funding and exiting ideas for organizations are also covered
in the report. It also includes a plan for business growth which will help in increasing the
operations.
MAIN BODY
P1 Analysis for evaluating opportunities for growth
It is very essential for the organizations to make proper planning in regard to the growth
and expansion. This can be done by formulating various strategies and applying different
frameworks and models in the activities of business. The various models which are used by the
management of Candy Floss Crazy for scaling the business and increasing the opportunities of
growth are discussed below:
Competitive advantage- It is the competitiveness which plays a very crucial part in making the
business work better. This also provides benefit to the customer's since the companies will be
offering the products at a reasonable price in order to maintain its position in the market(Cirunay

and Batac, 2021). For gaining a competitive advantage in the market, the Porters generic strategy
is analysed on the Candy Floss Crazy business. The analysis is discussed below:
Porter’s generic strategy:
The generic strategies can be applied to all the products and services and to all the
organizations irrespective of the size. This helps the companies in gaining a competitive
advantage in the market.
 Cost leadership- This strategy focuses on reducing the cost of the goods and services for
getting an edge in the market(Gaffikin and Engelman, 2018). Candy Floss Crazy is
focusing on the middle class segment which is a very large market share of the business.
The organization pays attention on the processes which makes the products affordable to
the customer's. The company is receiving the benefit of brand recognition, increased sales
and expansion of customer's base.
 Differentiation- The organization Candy Floss Crazy uses this strategy for achieving the
sustainable growth with the aggregation of expenditure. The company focuses more on
introducing new goods and services which helps in growing the base of the customer's.
The brand logo of the business is used for developing the image of the brand in the
market. The various types of services is used for making innovation in the products.
 Focus- It is related to paying attention on the available resources by focusing on any
particular segment of market. The Candy Floss Crazy provides products at reasonable
cost and enhance quality bu using this strategy. The company mainly pays attention on
the products characteristics by making alteration in the items for providing customer's a
satisfied experience.
PESTLE Analysis:
It is a framework which is used by the businesses for formulating strategies regarding the
operations. This helps in analyzing the external environment factors which provides
opportunities for developing capabilities and competencies.
 Political factor- It is related to the political factors which can make an impact on the
operations of business(Heinen, 2022). The political factors are tax policies, trade tariffs,

fiscal policy, etc. Candy Floss Crazy operates mainly in UK which has a political stable
economy. This provides advantage to the company in form of preparation of strategies
and policies. The organization also receives support from the government of UK in
regard to changing regulations and rules.
 Economic factor- It is related to economic factors such as tax rates, interest rates and
inflation rate. The Candy Floss Crazy company must consider these factors since these
makes an impact on the sales and profits of the business. Increase in the inflation rate
affects the cost of material which can decrease the revenues of the organization(HolzRau
and Scheiner, 2019).
 Social factor : These are related to the cultural trends, demographics, population
analytics, etc. Candy Floss Crazy can examine these factors in formulating the strategies
and policies for the customer's in the market. The company can innovate new products so
that it can cater the needs of every section of society. The organization also can perform
various promotional events to advertise the products.
 Technological factor: It is related to the technology which is used by the businesses in
the operations. Candy Floss Crazy must adopt new and modern technology so that it can
improve the quality of products and reduce the overall cost of products. The company can
receive the benefit of gaining competitive advantage in the market. The organization can
directly communicate with the customer's by using advanced technology.
 Legal factor: There are various rules and regulations which are to be complied by the
businesses in the operations. Candy Floss Crazy must follow all the laws which are
applicable on the company so that it can function smoothly and effectively. This will help
the company in building good reputation in the market.
 Environmental factor: It is related to the laws which are related to environment. Candy
Floss Crazy fulfill all the laws which are related to environment to perform the operations
sustainably. This will give the company benefit of enhanced image in the industry.
Boston consultancy group analysis
It is a framework which is used for the growth and development of the business. It is
analyzed on the basis of market share and level of growth(Lang, Deng and Li, 2020). The
analysis on Candy Floss Crazy is discussed below:

 Dog- It is the products or business operations which have low share in market and have
low growth prospect. Candy Floss Crazy should identify the products which are not doing
well in the market and should liquidate the activities and business operations accordingly.
 Question mark- It is the products or activities which are considered questions marks in
the business. These have high growth and low share in the market are very close of
incurring loss. Candy Floss Crazy needs to quickly focus on these questions marks so that
it can formulate policies on enhancing the share in the market due to the high growth.
 Star- It is the considered as stars due to the high market share and potential of high
growth in the market. These create a positive flow of currency for Candy Floss Crazy
needs to invest more in these products and operations. This will help in increasing the
sales of the company and generates high profits margins for the business. The business
can also take the benefit and set off loss of other products or operations(Lee and Jung,
2020).
 Cash Cows- These are considered for the business since it gives timely returns to the
business. The Candy Floss Crazy can get cash from cows that are invested within star to
have the aid for the development in future day. with level of advanced or low and
marketplace share. This array is used by the Candy Floss Crazy to make investigation of
growing position and possibility.

P2 Ansoff's growth matrix analysis
This analysis is used as a strategy for examining the development of the business. It is a
method which helps in making decisions regarding the operations of the organisation. The Candy
Floss Crazy uses this tool in the enlargement of the functions of the company. The analysis on
business is discussed below:
 Market penetration- This is a strategy which is used by the organisations for making
their presence in the market strong. The companies makes development in the existing
product line for entering new market in the industry. This leads to increase in the range of
customers along with enhanced skill and effectiveness. This also helps in laying down a
platform for the products in the market(Li, Xu and Li, 2020).
 Market development- This is related to the leverage of existing goods and services and
take them to different market. This strategy is the least risky since it does not need any
significant investment in development of product or on R&D. Candy Floss Crazy can
enter into new domestic market, foreign market or cater to a different segment of
customers. The company can use its current product line to make expansion in the market
area. It can also use the online medium for reaching to a large number of consumers in
the market.
 Product development- It is related to the growing of business in the current market on
the basis of innovations in the existing products. The organizations makes little changes
in the products it offers in the market for attracting new customers towards the business.
Candy Floss Crazy can invest in its R&D department to develop unique goods and
services. The company can also acquire the rights to sell or produce products of another
company. The business can make an evolution in its product lines by focusing on
development of the products.
 Diversification- It is the riskiest strategy but it can give huge benefits to the business. In
this the organizations sells new products in the new markets(Marais and deLange, 2021).
Candy Floss Crazy should first examine whether the new products will be accepted by
the customers in the market. The company must be prepared about the risk which is
associated with this strategy since the consumers does not have any previous experience
of using these goods and services.

P3 Finance sources with the advantages and disadvantages
For operating the start up and business various finance origin of the source. They are
raised in form of the personal finances, bank loans ,relatives and many more. Arranging the
finances is done for accomplishing long term plan of business organization. Finance origin aids
in the rising efficiency and productiveness of business. Executive of firm Candy Floss Crazy
may chose the finance sources for finding out the appropriate funding source.
 Retained earnings- Organizations keeps some amount of the earnings which is not given
to the shareholders in form of dividends and used for the future is called as retained
earnings. It is called as the internal financing in which profits of firm depends on the
different factors such as the net profit, policy of the dividends. The business organization
Candy Floss Crazy can use the funding source for completing the needs in the future.
Advantages- It is last origin of the commercial business organization which does not consists of
the declared cost in interest , dividend and many others. It provides flexibleness and freedom of
business operations as finance is generated internally in the firm. Business capacity is enhanced
for the losses cover(Morison, 2020).
Disadvantages- Extensive use of the profits results to the shareholders dissatisfaction as they get
the low dividends. It is the uncertain source of finance as the profits of the business organization
are fluctuating. If undistributed profits have improper allotment of the reserves of the efficiency
and viability of business organization is decreased.
 Trade credit- Facility of the trade credit is used for making acquisition of products and
services from the merchants where immediate payment is not done. It appears in bargain
account as the sundry creditors. It is the short term funding used by the Candy Floss
Crazy to have the goodwill and good positions of the finance.
Advantages- It is most approving and unbroken funding origin which is accessed to the
customers if the credit entry history is known by vendor. Sales of organization is promoted by
aid of the trade credit. Sales is promoted with the this tool. For having the funds they do not
change asset of business organization.
Disadvantages- There is the risk of over trading if they have the easy availability and flexibility.
It provides the constricted sum of the finances and compare with the different economics
sources.

P4 Business plan for growth
It can be defined as a formal written document which contains the targets and objectives of the
organisations which are to be achieved in a particular time frame. The business plan also covers
the various aspects which are related to the business and shows a blue print or path for growth.
The elements which are covered in the business plan of Candy Floss Crazy is discussed below:
 Executive summary- This institution is a British catering, funfair hire experience and
photography organization. It focuses mainly on the providing customers with best
experience in terms of party, food and music. The discussion is made on the basis of
different theories and models. The vision, marketing strategy, objectives, mission, etc. of
the company are stated in this. It also provides the institution mission, vision, verifiable
merchandising scheme etc.
 Business description- The mission of this Candy Floss Crazy is to provide the
employees best place for working and become the best events service provider in the
world. The vision of this organization is to take good care of the workers which will help
in strengthen the community and generates rewards for the hard working employees. The
objective of the business is to grow the market share when the revenue increases. The
purpose is to bring enhancement in strength and create a loyal base of customers in the
market. It also wants to take the benefit of economies of scale in reducing its cost and
bringing effectiveness and efficiency in its operations(Park and LaFrombois, 2019). This
will assist in achieving higher profit margins which will ultimately lead to achievement
of goals and objectives of the business.
The products and services offered by Candy Floss Crazy are mainly related to the
catering, fun and games. The company provides various experiences of events to the customers
which are good in nature. It offers services from a private party to a complete festival of any
nature or size. It also launches various entertainment packages which helps in catering to a large
section of the society.
The SWOT analysis of the Candy Floss Crazy is a strategical management framework
which helps in identifying the internal environment of the business(Wann-Ming, 2019). It assists
in determining the strengths and weaknesses of the organization. The areas of opportunity and
the potential threats are also identified by this analysis. The strengths of the company is to offer

wide range of services and products and also an established brand name in the market. The areas
of weakness are pricing strategies and very limited customer base. The business has the
opportunity of expansion and increase the profit margins along with long return of investment.
The threats will rise when there is fluctuation in the trends of the market.
 Market analysis- The market in which the Candy Floss Crazy operates involves the
increasing number of organizations providing similar services. The segmentation of
market is done by the company on the basis of different categories of services such as
catering, fun and music. The target market is where all kinds of customers are catered by
the products and services of the business(Wey, 2019).
 Marketing and sales strategy- The organization raises finances from various sources
such as taking loan from bank, national deposits, crowd funding’s etc. Candy Floss Crazy
uses a variety of tools and methods for promoting and advertising its products and
services in the market such as offline sales promotion and use of social media platforms.
This helps in properly communicating the message or information from the business to
the customers in the market.
 Financial factors- The company maintains a continuous currency flow rate and prepares
an income statement which helps in determining the balances of money in the year end.
The organization pays special attention on recording every transaction for maintaining
transparency and clarity in the operations.
 Controlling of plan- This plan measures the gross revenues to find out the increase or
decrease in profitability of the business. It is formulated with an option of modification in
case of requirement of any change.

P5 Exit and succession options for the business along with its benefits and drawbacks
The market has evolved which has introduces various options for market in terms of exit plan
and idea of succession. This has assisted the businesses in making strong and effective decisions
regarding the growth and development. Candy Floss Crazy believe in exit plan for succession
development.
Exit plan- It is the plan which is prepared for taking exit from the market after identification of
all possible issues. The company can used various exit options which are discussed below:
 Firm sold in open market- The business is sold to any other person instead of stopping
the operations. Candy Floss Crazy can transfer the business to new owner by keeping the
workforce and all available resources same. There is one drawback of this exit plan
which is right valuation of the business.
 Liquidation- It is the plan which involves liquidating the assets and liabilities of the
business and distributing and surplus which is left among the shareholders. The
management of the company can become free after discharging all the rights and
responsibilities towards the business(Yu, Yanxu and Bojie, 2019).
Succession plan- It is the plan which is applicable on the growth of business and which involves
change of leaders and workers after the end of business operations. In this, the power gets
transferred to any other person.
 Merger and acquisition- It is very helpful in formulating a succession plan. One
company merges or acquires another company and prepares a succession plan. In merger,
both the businesses work together for achieving a common purpose. In acquisition, the
larger organization acquires the smaller company. This is very beneficial for
improvement and assistance in managing the risks of business. It also has a drawback
which is the imitation of the trading operations which can affect the overall performance.
From this reasoning, the succession plan is advantageous for the Business Candy Floss
Crazy since it will help in achieving the objectives of the organization.

RECOMMENDATIONS
Exit strategy – Candy Floss Crazy can choose to sell the business to someone they know if they
are facing problems in running the business as the other person who will buy the business may
have the necessary resources and expertise to run the business. In this way, company will remain
working.
Succession strategy – Owners can choose to give leadership to their family member in this way
they can retain the control of the company and give guidance to the new leader, who may face
problems in running the business.

CONCLUSION
It can be concluded from the above report that business plan is very essential for
achieving growth of the organisation in future. The PESTLE analysis will help the company in
considering the essential factors of the business. The BCG growth matrix will assist in
identifying the products and services which are to be kept in the company. The Porters generic
analysis is performed for knowing competitive edge on the competitors. The plan of growth in
formulating various strategies comes from Ansoff's growth analysis. Potential sources for
funding this a business con use for its growth. Exit and succession strategies are studied for
identifying the options which can be used by Candy Floss Crazy in the business.

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