Planning for Growth of a Candy Shop

Running Head: PLANNING FOR GROWTH
PLANNING FOR GROWTH
Name of the Student
Name of the University
Author Note

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Executive Summary
The main purpose of the paper is to find the various considerations for growth opportunities
and potential growth of a business. The paper is supported by understanding a business plan
of a candy shop. It is found that the different external forces and risks of business failure must
be clearly identified before planning for a business growth.
Table of Content

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s
Introduction................................................................................................................................3
Discussions.................................................................................................................................3
Section-A................................................................................................................................3
Task 1.................................................................................................................................3
Task 2.................................................................................................................................6
Task 3.................................................................................................................................9
Section- B.............................................................................................................................14
Conclusion................................................................................................................................17
References................................................................................................................................18

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Option 2
Introduction
Growth planning is a strategic business activity that helps a business owners to plan
easily identify their business growth. The first part of the paper is to understand the various
plan required to do before the business plan. The paper has discussed on the various
considerations for growth opportunities and potential growth of a business
Discussions
Section-A
Cornish Candy Shoppe is a small business in United Kingdom. The shop is famous
for making fudge and tasty candies. The shop is committed to customer experience. The
business is run by a family in St Lves Cornwall of United Kingdom. The shop is famous for
using the finest ingredients in the cook (Ekanem 2017).
Task 1
Key Considerations for SMEs while evaluating the growth opportunities
Analyse competitive advantage:
Opportunities under Porters Generic Strategy
 The small and medium business enterprises must look for three basic strategic options
to gain competitive advantages: They must look after cost focus, differentiation and
cost leadership. The owners of Cornish Candy Shoppe must increase their business
opportunity according to the rising demands of dark chocolates and innovations in
product tastes and styles (Hopp and Greene 2018). The innovations should be free
from obesity and diabetes. The owners must understand the demand perspective of the
target market. The owners must figure out whether there is any market for the

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opportunity. The owner of Cornish Candy Shoppe can find their market opportunity
in providing the products through online selling. They can start for online business to
easily access the other customers.
Figure 1: (Porter’s Generic Strategy Model)
Risk: If the company is making low cost strategy, then other firms will also
lower their cost and the business will be unable to improve the technology and
product in the competitive market. Hence, this will eliminate the competitive market
of the business.
Risk Mitigation- The above risk can be mitigated by analysing the industry structure
and then deciding the competitive strategy.
Strength: This option will enable the firms to gain a competitive advantage in the
market. It helps in increasing the market share at lower price and make a reasonable profit.
Weakness: It is very rare that, the business will be able to offer a unique product
feature with low price to the customers.
Opportunities under PESTLE analysis

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 The competitive advantage can be achieved by analysing the external environment of
the business and identifying the opportunities to explore. PESTLE analysis of the new
market is done by properly understanding the economic, social, political and legal
factors of the business in the new market. PESTLE analysis will help the business to
understand the market attractiveness component available in the new market before
the business succession. The candy store will be established in United Kingdom. The
country has largest economy in terms of GDP. Political stability is the greater strength
of this country.
Risk- The factors of political, social, technological, legal and environmental can
change quickly. These factors are uncertain in a business environment. Also, there is a
risk in mishandling the information, the researcher may get confuse.
Risk Mitigation- The above risk can be mitigated by extracting more detailed
information related to uncertainties in environment change.
Strength- This growth option helps to understand the business environment in a
larger scale. It helps in encouraging the strategic thinking and anticipates the future
threats of the business.
Weakness- The internal factors of a business environment is impossible to understand
using PESTLE analysis.
 Understanding this competitive advantage in the business
The Cornish Candy Shoppe has wider opportunity to reach towards the young
generations. Young generations are always looking towards a more diverse type of products.
The store has a wider growth options because, the population in the Brisbane city is famous
for doing food business and the company will easily access the targeted population of the