Analyzing Business Planning-Performance Relationship

The given assignment involves a comprehensive analysis of the relationship between business planning and performance in small firms. A meta-analysis is conducted to identify key contextual factors that impact this relationship. The study also examines various case studies and articles on strategic planning for growth, including its challenges and implications. The analysis provides insights into how planning can be used to drive business growth and improve performance.

PLANNING
FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Major considerations for evaluating growth opportunity......................................................3
P2 Growth opportunities by implementing Ansoff's growth matrix...........................................6
TASK 2............................................................................................................................................8
P3 Potential sources of finance available for enterprise.............................................................8
TASK 3............................................................................................................................................9
P4 Make a business plan for scaling up of enterprise.................................................................9
TASK 4.........................................................................................................................................12
P5 Succession or exit options od small business......................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is very essential part of every firms for accomplishing business functions
properly. It will aid in determining of elements and make strategies as well as policies according
to market situation (Planning for growth, 2017). Adopting these policies which are made by
company will assist in meeting targets and objectives as well. In order to use advanced
technology it will provide higher level of impact on creative or innovative ideas and enterprise
operations. Unplugged catering is giving services of food as well as catering within United
Kingdom. Its purpose is to formulate a plan and apply advanced technology within in food food
system. So, as to provide fast delivery and increases the growth opportunity of enterprise
activities. In this report it covers the companies growth opportunities by applying latest
technology within their workplace. Their are various sources of finance which are used by
enterprise along with its advantages and disadvantages.
TASK 1
P1 Major considerations for evaluating growth opportunity
Unplugged catering provide the various types of foods services like as fast food,
breakfast, dinner and lunch in UK market. It will assist in grabbing market along with this also
help in achieving competitive benefits. Through giving quality of services it will aid in attracting
huge numbers of buyers towards their firms which will enhance the sales as well as profits of the
company (Brinckmann, Grichnik and Kapsa, 2010). This will provide chances in growth
opportunity of business activities in several others locations. It will enhance by developing
unique food items according to buyers taste by adopting advanced techniques. Their are various
opportunities of growth are their for Unplugged catering in order to apply advanced digital
technology which are as follows:
Competitive advantages: Organisation management are executing plans for implementing digital
technology while performing enterprise functions effectively. Every department of the firms will
get the benefits of using advanced technology within their working environment. Manufacturing
divisions is having various opportunity to enhance the quality of food and use creative or
innovative ideas for preparing food as per customers taste. Marketing department can also adopt
latest techniques like as social media and internet will cover wide numbers of peoples.
Accordingly, others department like as operational, HR and employees also get benefits of

adopting digital technology. It will help in providing best performance as compared to its
competitors along with this aid in meeting competitive advantages.
Porters generic model: This techniques aid new company how to pursue competitive benefits in
an specific market. This model describes various tactics for a organisation to construct enterprise
structure. It involves four kinds of strategies which are given below:
(Source:Porter's Generic Model, 2017) Cost leadership: In this, it describes the way by which small companies can get over
from shortage of finance by using available resources in an effective manner. Its main
concentration of Unplugged catering is to provide their services at low cost in order to
grab attention of higher level of customers (Burton, 2010). Hence, it defines these
techniques through which company can become cost leader within catering sector. Differentiation leadership: In this strategy it describes the management of Unplugged
catering in order to make their services more different as well as unique from their rivals.
It is an duty of supervisors to design portfolio in an effective way which help in attracting
customers and aid them to take their services. Additionally, firms can provide jobs to
Illustration 1: Porter's Generic Model

experienced and skilled persons which bring out fresh and innovative ideas within food
sector. Cost focus: If Unplugged catering will use this strategy as they are concentrating on
niche market as well as understanding modified market. It will assist in fulfilling buyers
needs and wants in an proper manner. In this strategy, firm will provide low cost of
products at the niche market. This will attract higher numbers of customers from external
market because of providing quality of services at low price (Chapin, 2012).
 Differentiation focus: In this strategy, Unplugged catering aim is to prepare their food
dishes more creative and innovative in order to attract customers. In this, they will
prepare a different dishes for their buyers according to market segmentation. Their are
several small businesses are using this strategy for gaining higher profits within niche
market.
Unplugged catering is using cost and differentiation focus in order to develop low prices
of catering services in an innovative way by adopting advanced techniques within workplace.
Company is also using cost focus strategy which aid in accessing capital which help in investing
on latest technology in order to increase productivity at low prices.
External analysis
In extrinsic environment, there are certain components which gave impact on business
activities and its operations in an direct as well as indirect manner. Hence, its aim is to identify
all the problems which can hinder to create and execute imperative decision (Christofakis and
Papadaskalopoulos, 2011). It will help in future growth as well as success within market.
Therefore, it is analysed to adopt PEST analysis in Unplugged catering in order to increase the
growth of business by using latest techniques. It consists are:

(Source: PEST Analysis, 2017)
Political factors
Their are certain components such as health
regulation, tariff rates, tax reforms and many
more which gave impact on enterprise
activities. For example: if having some
changes in health grading system in nation.
Then Unplugged catering require to adopt
these modifications in order to get higher level
of rating (Eddleston and et. al., 2013).
Economical factors
These components also gave effect on
enterprise operations such as employment and
unemployment rates, poverty, economy health,
and so on. These factors are uncontrollable but
it is important to assess and react them
effectively. If Unplugged catering is adopting
digital technology within their workplace then
it will help in providing employment
opportunity to local peoples.
Social factors
These elements increase the awareness in local
areas. Unplugged catering should provide the
food according to their buyers demand. Such
as company have to give quality of food, clean
environment, healthy food dishes etc. gave
effect on enterprise activities.
Technological factors
This factor is very important as it keep on
modifying technology which gave effect on
enterprise operations. Therefore, Unplugged
catering is adopting advanced technology and
innovative ideas for manufacturing food dishes
as per customers taste and preferences.
P2 Growth opportunities by implementing Ansoff's growth matrix
For identifying future opportunities it requires management to analysis business
strategies, strength, capabilities, knowledge and direction of effective resources of companies. In
Illustration 2: PEST Analysis

small business, they always tend to enter in new markets with their catering services for grabbing
upcoming opportunities. Therefore, this matrix provide best growth opportunities techniques
which focus on providing innovative dishes to their customers. Some of various strategies of this
matrix are as follows: Market penetration: In this strategy, if organisation desire to increase their growth in
existing products in their previews market segment with the objective of raising market
share. Hence, this technique is having low level of risk as its leverage firm available its
resources and capabilities (Grover, Bokalo and Greenway, 2014). Market development: In this, company want to enhance their business by providing their
services in a new market by using digital technology for getting more orders from the
customers. This help in expanding their business within new geographical locations. If
firms has better competencies then it will help in providing their catering services within
new areas of market in an proper manner. It will assist in dealing within the target
market in an appropriate manner.
(Source: The Ansoff Model, 2013) Product development: This strategy will help firm in developing new as well as innovate
dishes of food by using advanced technology in order to sell them in previews market.
Illustration 3: The Ansoff Model

This is very effective technique as its strength are linked to customers wants. These
tactics and tools will provide new growth opportunities by providing innovative services
as per buyers needs and wants. In this Unplugged catering, managers decreases its time
in market and it help in improving quality of food and its services as well.
 Diversification: In this techniques, firms can grow through diversification its business in
new markets by providing new and innovative foods and services by using advance
technology. Thus, this techniques is quite risky as it require both market as well as
product development (Hough and et. al., 2010). In addition, Unplugged catering can able
to enter within new geographical location by giving quality of food to their customers.
As per above model, Unplugged catering is enhancing their business within new
locations of UK. Therefore, company will adopt the product and market development strategy as
it will help in preparing innovative and quality of food for buyers which will also grab the
attention towards the organisation.
TASK 2
P3 Potential sources of finance available for enterprise
Unplugged catering is an small enterprise which give several types of services within
different costs. At present, firms get the contract from government which is St Michael's Church
School catering contract. In this, there is an requirement of suppliers who provide them catering
services at their lunch time to their students. Real bid of this contract is £120K but the budget of
Unplugged catering is £20K. Therefore, remaining cost for accomplishing this contract
effectively by choosing beast source of increasing finance are:
Bank loan: This is very common sources of increasing funds for accomplishing this contract
effectively. In this, Unplugged catering can use this source as it gives fixed rate of interest. It is
very easy and simple way of increasing funds for doing contract activities properly (Keough,
2015). Organisation will get various benefits through governments to small enterprises like as
interest free loan, subsidy etc. Therefore, by using this source it will help in increasing funds for
adopting process of digitalization in its food system. Advantages: Bank loan is an very simple and easy source of finance for operating
enterprise activities. It provides low rate of interest as compared to other sources. It is
very safe as it provide loan guarantee. In this, there is no discrepancy in providence.

 Disadvantages: It is compulsory for bank loan to follow every rules with its mortgages
properties. If they get failed to follow them then they will face penalties and legal
charges. It provides burden and tension at the time of loan payment. With this, if
company will not make payment of loan then banker can disposed off their property.
Crowdfunding: If this is used by Unplugged catering for increasing finance for carry out
enterprise functions effectively. As it included different peoples for raising finance from the
country. This method will help in meeting the focus of specific person on enterprise operations.
It will aid in working as a marketing tool for the particular company. Along with this also help in
increasing finance for using digital technologies within their workplace. Advantages: This is the better sources of increasing finance to meet the public reaction
in the term of enhancing business operations. It will aid in meeting valuable media
attention and marketing form. It is very beneficial for firms as well as it do not have lots
of strictness (Li, Mobin and Keyser, 2016).
 Disadvantages: Crowdfunding consume lots of time in getting funds from different
peoples. It is difficult for firms to take the permission of stakeholders. It is typical for
company to manage the funds effectively.
In this, Unplugged catering is using bank loan for their company in order to raise finance
from bankers. It will provide low rate of interest along with this they also secure as they provide
loan guarantee. It will able to adopt latest technology within their work place for accomplishing
business activities effectively.
TASK 3
P4 Make a business plan for scaling up of enterprise
In this, business plan include the process of preparing a effective plan in which firm
mentioned its vision, mission, objectives and so on. It require to achieve business targets and
objectives (MacLeod, 2013).
Unplugged catering will make a business plan for enhancing its catering services by
using innovative as well as latest technology which are as follows:
Executive summary
Unplugged catering is an company which is giving catering services in UK. It is an small
organisation which start up their business through investing £20,000. this provide job

opportunities to approx 60 employees for accomplishing enterprise
functions. At present, they get the contract of government of giving catering
services at lunchtime to their students. With this, company is using
innovative and latest technology within their business activities.
Mission
“To give quality and healthy food services to their customers for
achieving buyers satisfaction”
Vision
“To enhance their business in different location by concentrating on
its quality and customer base”
Strategy objectives
 To identify creative and innovative ideas for preparing food.
 To enhance their business online by using social sites and internet. To implement advanced technology for the growth of enterprise.
Products and services
Unplugged catering are giving innovative and creative food dishes to their customers.
They also provide various services to customers like as dinner, lunch, breakfast and fast food
catering services. Unplugged catering are giving catering services. Their motive is to provide
organic as well as healthy products to their buyers for attracting all kinds of customers.
Internal analysis
Unplugged catering is analysing its opportunities and strength. It will help in grabbing
growth opportunity by using advanced as well as innovative technology. These are as follows:
Strength Opportunity
Company is having its strong brand image
within the customers. Along with this it is well
established in market. Unplugged catering are
giving their catering services in geographical
areas (Pallagst, 2010). Effective competency to
implement advanced and creative technology.
In this, firms are having opportunity of
capturing their competitors markets. They can
also establish online enterprise website for
expanding their business and its sales. Its
purpose is to develop their services in an
healthier and effective manner.
External analysis

Unplugged catering analyse external environment for identifying its overall condition at
market place in order to overcome threats and grab various opportunities accordingly. In external
analysis includes PEST which are mentioned as below:-
 Political Factor:- In this factor contains governmental rules and regulations which says
about the production activity of an organisation. In context to expanding of Unplugged
catering business it is necessary for them to learn about different regions of government
regulation for long term survival at market place. In political factors include tax policy,
employment laws, political stability and many more.
 Economic Factor:- This factor affects purchasing power of existing customers or
potential customers as it says about the overall growth and success of the company. In
reference to Unplugged catering, economic factor divided into two part i.e., micro
economic and macro economic factor. Micro economic says about the people that how
they spend their income at market simultaneously, Macro environment consist how
demand is increasing at economy. In this factor include interest rate, inflation, exchange
rate, economic growth and so on.
 Social Factor:- This factor says about the belief, attitudes and interest of population as it
is all about society. In context to Unplugged catering as they have to provide good quality
of food for building good image in the society. In social factor includes culture,
education, attitudes and so on. Technological Factor:- Now a days technology plays very important role for enhancing
growth and standard of living of society. This is because it develop both economy and
organisation which helps business to deal with the competition and make effective
position at market place. In context to Unplugged catering they bring advance technology
for expanding their business at world wide. Technological factors includes research and
development activity, consumer buying mechanism, automation and so on.
Target market
It consists several kinds of market segments for increasing their business. Unplugged
catering is decided to focus on local market to identify their needs and to provide them services
as per their taste. Firms mainly concentrate on developing their online enterprise as it is cost
effective. It will help in attracting large numbers of buyers.
Financial information

Unplugged catering is an small enterprise they make the investment of £20,000 in its
enterprise. In order to increase their funds firms are using several sources
of finance like as bank loan fore accomplishing enterprise activities
properly. Here, company cannot exceed their finance by £300,000.
therefore, firms has decided to start up their online business which is cost
effective. Unplugged catering cash flow statement is given below:
[Unplugged catering]
Cash Flow Statement
For the Year Ending 31/12/2017
Cash at Beginning of Year 22,500
Operations
Cash receipts from customers 4,25,875
Cash paid for
Stosk purchases (1,58,252)
General operating and administrative expenses (10,658)
Wages expenses (1,05,852)
Interest 8,502
Income taxes 18,780
Net Cash Flow from Operations 1,78,395
Investing Activities
Cash receipts from
Sale of property and equipment 35,564
Collection of principal on loans

Sale of investment securities
Cash paid for
Purchase of property and equipment (45,821)
Making loans to other entities
Purchase of investment securities
Net Cash Flow from Investing Activities (10,257)
[42]
Financing Activities
Cash receipts from
Issuance of stock
Borrowing
Cash paid for
Repurchase of stock (treasury stock)
Repayment of loans (42,585)
Dividends (45,850)
Net Cash Flow from Financing Activities (88,435)
Net Increase in Cash 79,703
Cash at End of Year 1,02,203
TASK 4
P5 Succession or exit options od small business
Business organisations mainly concentrate over gaining higher benefits and more
revenues along with creating better recognition for which they adopt numerous approaches and
techniques to survive in market (Todes, 2012). In the developing field of business, exit and
succession of business require proper planning and strategic management that can help in

accomplishing new prospective of business among the market. The option of exit and succession
consist of two essential aspects that relay on the performance and growth of an enterprise.
According to the undertaken decision, the termination or survival of business is determined. Here
are discussion some of the strategies of business succession and exit along with their strengths
and weaknesses mentioned as below:
EXIT TECHNIQUES
Liquidation: If the Unplugged Catering is facing constant loss in their business within 5
past year, organisation's supervisor can forecast that there is less probability of gaining benefits
in business. In such consequence, this is the most appropriate technique that sited organisation
can employ this for taking exit to the market. Merits: After the process of liquidation, director of organisation become more liberal
from legislative work or affairs. This is most easiest from to wind up company quickly
and overcome from the disputes related to finance. Demerits: This render lowest entrepreneurs return while trading entire assets. Also,
creditor of organisation are liable to give a claim on the asset sales as they have equal
wage contribution in the enterprise (Valler, Phelps and Wood, 2012).
METHODS OF BUSINESS SUCCESSION
Avoid Micromanaging and Delegating work to professional employee: Company's
director need to delegate their key work to members of staff in the skills and knowledge
conveyance term to meet beneficial outcome. Opting incentives session and development that
can assist worker to engage much in attaining the goals and objectives of business. This can help
in meeting competitive edge and stable condition of market.
Using Web: Buyer are considered as the main lifeline of an enterprise that help in
achieving success and growth to survive within the competitive environment. Therefore,
Unplugged Catering need to pt numerous social media and internet techniques to attract more
and more service user. Unplugged Catering can evolve through opting most suitable technique
to promote, trade and communicate with buyer through the assistance of internet. Merits: Firm's employee can reach high business edge through opting this method as this
is more interactive, entertaining and motivating technique (Wu, 2015).

 Demerits: If organisation is facing constant loss, service manager will hope for further
advantage which can lead them toward huge liabilities and expenses as well as can
demolish their recognition as well.
CONCLUSION
From the above report, it can be comprehended that organisation prime goal is to enhance
business activities for making growth in future time. For this, management make development
and implement innovative ideas in firm to provide new dishes and items to customers in respect
to their preferences and choices. This help company to enhance market position and share in
respect to competitors. Online website is efficient technique which benefits organisation to have
adequate market reach and customer base. Along this, administration frame plan which specifies
different activities that are production, operation and marketing to accomplish timely objectives
and targets. Ansoff's growth matrix helps top personnel to find growth opportunity and apply
strategies for development of firms departments. It is necessary that management have adequate
funds to utilise growth opportunities and make changes in system and expand business to
generate good amount of profit from business.

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Online:
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