Planning for Growth: Opportunities and Options for E5 Bakehouse

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION -.........................................................................................................................3
MAIN BODY-.............................................................................................................................3
1. Explaining the competitive advantage that are available with the E5 bakery-........................3
2. Critically assessing all the business opportunities that the E5 bakery has in the market
today-...........................................................................................................................................4
3. Ansoff growth matrix of E5 bakehouse-..................................................................................6
4. Options available with the E5 bakehouse for the growth and success of the funding-...........7
5. Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.............................................................................................................9
6. Justified recommendations for the business..........................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION -
The growth today has become the important phenomena for surviving and for getting
profitability in the market. Without planning for growth it is impossible to run any kind of
business. Small medium enterprise are the enterprises that runs on small scale with minimum
capital and minimum no. of employees (Julien, 2018). The small medium enterprise plans their
growth according to the requirements and the needs of the consumer. The E5 bakehouse is one
such small sector enterprise that runs their business on small scale. E5 bakehouse started
producing goods in 2010 and it operates in London today. This report will be addressing and
planning growth for E5 bakehouse. It will also analyse the competitive advantage available to E5
bakehouse. Further, this report will also contain Ansoff matrix and SWOT analysis for the
bakehouse and the option for the finances. Moreover, this report will also provide the
recommendation that E5 bakehouse can take in consideration while planning growth.
MAIN BODY-
1. Explaining the competitive advantage that are available with the E5 bakery-
The E5 bakery has grown since 2010 at very high speed this is because of the competitive
advantage that is available with the bakery today. Planning has been done in such a way that it
attracts large section of consumer at once. Today, bakery has been able to open retail outlets at
many places in London and can grow further because of the competitive advantage that they
have today over the other competitive bakeries and that are as follows-
 Unique identity- The bakery has been known for its unique taste. The flavours that it
offers to consumer are not easily available in the market. Moreover, the quality of
products matters lot when it comes to the food industry and the E5 bakehouse has been
consistent with the quality that it offers in the market since it open. The unique product
and the quality are the biggest advantage that company has.
 Different products- The different products that the E5 bakery provides in the market is its
another strength. The varieties of the products that the bakery provides are the breads,
cupcakes, the wedding cakes and the various types of bakery products that are able to
attract consumer from different segment of population in London. The affordability of the
products that baker provides is the major competitive advantage that company has.
 Big orders- Today, bakery does not operate on huge scale but still it has managed to grab
the opportunities of big orders. The supply chain management, logistics have been

properly managed by the bakery which has enabled bakery to fulfil all the demands of big
orders. E5 bakery can grow on big scale by proper supply chain logistics.
 The Latest equipments- Different and latest equipments with the bakery are their another
strengths that in turn has given competitive advantage to the company. Equipments like
the cups, spoons, pastry etc. helps company in making varieties of the product with
unique texture and design. Different designs of the product will attract children's that are
major share of the consumers.
The small business like the E5 bakehouse can only grow because of the advantages that bakery
has. The bakery already has been able to attract large share of consumer in the market. Further,
the market share of bakery is going to increase the near future.
2. Critically assessing all the business opportunities that the E5 bakery has in the market today-
The various opportunities that the business has today over the other small sector
businesses are as follows-
The porter's generic approach-
Opportunities available with the E5 bakehouse by analysing porter's generic approach are
as follows (Bruijl and Gerard, 2018)-
The cost leadership approach-
cost leadership approach has given opportunities to the bakery by attracting large section of
audience. The cost leadership approach has been focused mainly on two things-
 Increasing profits of the bakery by charging the average price of the bakery industry from
its consumers.
 Increasing market share by charging the lower prices from the consumer.
The bakery is attracting consumer towards its product by lowering prices in the market. The
success of the company is the result of the lower prices as lower prices and the best quality both
increase consumers in the market.
Differentiation strategy-
The differentiation strategy of the E5 bakehouse simply focuses on providing the best
quality of unique products to the consumers. The unique products are produced according to the
requirements and the needs of the consumer.
Focus strategy-