Planning for Growth: Evaluating Opportunities, Funding Sources, and Growth Strategies

Planning for Growth

INTRODUCTION
Growth planning is a strategic business actions which enables a business entity, owners
and marketers to plan, track and organise resources for growth in their revenue units and
ultimately in profit numbers. Planning and allocating available and limited resources in towards a
centred efforts brings changes in company according to the changing external business
environment. Ella's Kitchen is a small business organisation in Unities Kingdoms, which was
founded in 2006 by Paul Lindley. The entity is dealing in manufacturing industry producing
organic food products for babies and toddlers. Ella's Kitchen is chosen for the report,
acknowledging several aspects of business developing plans for growth and success (Hu, 2016) .
The report contains a thorough analysis of growth opportunity available and key
considerations for evaluating such chances available. Funds is an important resource for
expansion and growth therefore, different funding sources available for business are explained
along with their benefits and drawbacks. Moving forward a business plan is developed for Ella's
Kitchen which is innovative and measures against all the opportunities available in the
marketplace. At the end, of the report exit and successions options are suggested to entity with
highlighting their benefits and weaknesses.
TASK 1
P1. Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
Macro environment is basically a combination of all the external elements which are
present in business surroundings. There are numerous factors and key considerations that affects
the operations of an entity in either positive or negative manner. The PESTEL framework is a
tool which is useful in understanding and evaluating the macro factors that are affects the whole
manufacturing industry and ultimately Ella's Kitchen. Along with it Porter's Generic model is
used for adopting one efficient strategy for flourishing the growth plans of Ella's Kitchen in the
most efficient and effective manner that is aligned and integrated with the impacts of the external
surroundings (Cobetto, Aubin and Parent, 2018).
PESTEL Analysis:
 Political factor is refers and highlights about those impacts which are implemented on
the entity due to changes taking place in governmental policies and actions. The political

environment of UK is evaluated in order to seek knowledge about its impact on Ella's
Kitchen. Currently the political parties and governmental influence is negative on
businesses that are flourishing in UK because of the instability and uncertainties of the
government.
 Economic environment is focused towards factors such as inflation rate, exchange rates,
GDF of the particular region etc. these Current economic environment of United
Kingdom is very dynamic and unfavourable for business as recently the BREXIT deal is
closed. The economy of UK is very uncertain for Ella's Kitchen to make long term plans
of growth and implement them (Kumar, 2016).
 Social surroundings talks about the population and ultimate customers of the entity. The
people to whom business entity is serving their offerings have great impact on success
and growth of an organisation. The people is UK are identified as loyal customers and
supports to their preferred brands. Although, the social environment is also very dynamic
and unpredictable as regular changes are taking place in social trends still it is favourable
for Ella's Kitchen as its goodwill is high in the market.
 Technological factor is concerned about the changes taking place in technologies and
regular advancement is happening in all digital devices. UK has proper and potential
access to these updated technologies and tools (Pugalis and et. al., 2016). Ella's Kitchen
as well make use of all updated technologies in manufacturing and marketing their
offerings. The company is recently being engaged in making recyclable packages of their
food products.

(Source: Pestel Analysis Showing Economic Growth And Legal Forces, 2020)
 Environmental focus is recently came into existence in past years due to increasing
negative impacts of businesses of nature, overutilisation of natural resources and
increasing global warming. Ella's Kitchen as identified recently engaged in making
recyclable packing of their products contributing a huge portion to the society and
fulfilling their CSR.
 Legal factor is interrelated and linked with political element, it talks about more specific
laws and regulations developed by the political parties while running the country for safe
and smooth functioning of businesses in the UK. Legal environment is also not in favour
of Ella's Kitchen as many fluctuations took place due to BREXIT in the laws which are
uncertain as their results are unknown (Colantoni and et. al., 2016).
Porter's Generic Model:
Illustration 1: Pestel Analysis Showing Economic Growth And Legal Forces, 2020

The Porter's Generic Model defines that once two basic competitive advantages of an
entity are combined and mixed with its scope then it results in three generic strategies out of
which one is most potential and efficient for the business. These strategies are Cost leadership,
Differentiation and Focus, elaborated below in context of Ella's Kitchen.