Planning for Growth: Opportunities, Financing and Strategies for Gail's Bakery

UNIT – 42: PLANNING
FOR GROWTH

CONTENTS
INTRODUCTION......................................................................................................................1
PART – 1 (INVESTING IN THE FUTURE)............................................................................1
Illuminating the basis of competitive advantage for the business..........................................1
Critically assessing the opportunities available for the business by applying theories and
models.....................................................................................................................................2
Options for growth though application of Ansoff’s growth vector matrix............................4
Options for financing growth and sources of funding............................................................5
PART– 2 (DEVELOPING AN EXIT PLAN)...........................................................................7
Designing of the Business plan for growth............................................................................7
Appraisal of exit or succession options for the business......................................................10
Justified recommendations for supporting implementation.................................................11
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
Planning in relation with the growth is being regarded as a crucial element for each
and every business because it is defined as the process which enables the owners of the firms
to make adequate plans and check the growth in revenue of the firm. The main aim of the
current research work is to offer comprehensive data in regards with the basis of competitive
advantage for the business and analyse the opportunities for growth through utilization of
suitable models and theories. The chosen company for the current work is Gail’s bakery
which is one of the famous bakeries of London, UK serving freshly baked cakes, pastries and
house blend speciality coffee. The report will be going to evaluate different approaches by
which the firm can access funding and offer details in regards with the timing of using varied
types of funding. Additionally, it will also include a business plan for growth for the bakery
and finally, focus on the exit option or succession planning.
PART – 1 (INVESTING IN THE FUTURE)
Illuminating the basis of competitive advantage for the business
In the current world of business where the competition level is at the peak, it is quite
crucial for the companies to do planning in regards with the growth regularly with a view to
attain a leadership position in the market. seeking support of planning for growth, the
company can accomplish their long-term success and at the same time upholds the business
reputation. With the effective use of resources, capabilities along with core competencies,
competitive advantage is being achieved (Burton, 2021). Further, competitive advantage is
very essential for the business as through this an edge over the firms operating in the same
market can be attained. Through making use of novel and creative technologies, managers of
the firm can gain higher advantage in the market.
 Core competencies – For becoming successful in the market, the owners of the
business are required to offer creative and innovative value to their valuable clients. It
is also essential for the managers of the bakery to understand the ways of integrating
multiple technologies though utilizing different kinds of abilities like manufacturing
skills. Further, it is obligatory that the firm should make use of high-end technology in
their business processes for providing high quality products and services.
 Capabilities – It is being referred as the capability that the firm is required to have for
the implementation of methods, strategies and systems. For executing business plans
as well as methods, it is very crucial for the firm to have skilled employees as well as
people who are having good amount of understanding (Burns, 2014). Further, it is
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significant for the people to have effective management of capabilities in the firm
which will support the manager in establishing performance related objectives that are
grounded on values. Seeking assistance from the qualified employees, the bakery will
perform their operations effectively and smoothly.
 Resources – For starting a new business, one of the most crucial requirements that
needs to be considered is the resources. With the support of suitable resources, the
firm is in a position to attain success in the inexpensive world. The resources
encompass human resources, financial, physical and technological assets. Moreover,
it is also important that the owner of the bakery must have suitable capital for starting
up the business for easy functioning of the operations. other than this, support of
other resources is also necessary like technological resources which significantly
involves artificial intelligence that might support the managers in gaining great place
in the market (Ali and Anwar, 2021).
Critically assessing the opportunities available for the business by applying theories and
models
VRIO framework
VRIO framework is being referred as an important tool that supports the firm in
determining different benefits and resources which provides enhanced competitive advantage
to the company in the market. through utilizing this tool, the firm is been in a position to
comprehend the type of resources which will support them in achieving competitive
advantage and success. Even, crucial decisions and priorities can be set with this model.
Explanation of being done below:
Figure 1: VRIO Framework
(de Bruin, 2016).
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