Planning for Growth: Evaluating Opportunities, Funding Sources, and Business Plan for Greggs plc

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context....................................................................1
The PESTLE Analysis:-.........................................................................................................1
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..............4
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................6
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business........................................................................................7
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.......................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Planning growth is a strategic work functioning which allow firm holder to draw a framework or
path of development in their profit for the organisation. This enables a company to plan about
their future working in the organisation to stand ahead from rivalries(Sparkman, 2018). The
company which is taken to perform the study is Greggs plc. John Greggs founded this UK bakery
chain in 1939, established in united kingdom. It mainly deals in bakery products such as cakes,
sandwiches, sweet items, sausage rolls, vanilla slices, doughnuts,etc. The company also sells
some of its products such as pastries, bakes and melts. This study is going to analyse the
PESTLE Analysis, BCG Matrix, porter's generic strategies model and Ansoff Matrix to identify
growth opportunities of Greggs plc along with the benefits and drawbacks of funding sources
obtainable to the firm. This following report a strategic plan of Greggs is also discussed which
includes the strategic objectives and financial information for growing up a firm. This above
study involves the retirement and progress alternatives for Greggs, with their advantages and
disadvantages(Jayawarna and Dissanayake, 2019).
MAIN BODY
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
In order to assess growth opportunities present in the market to Greggs plc, some
strategic models applied to the organisation are discussed below:-
The PESTLE Analysis:-
It is a strategic framework that provides a different extrinsic scenarios which affect the
business of the brand. The external environmental factors of PESTLE affecting Greggs plc are:-
Political Factor:- This factor of PESTLE analysis includes factors that impacts a Griggs plc
operations politically such as change in presidency of nation, corporate taxation policies, trade
policies etc. Brexit can impact food industry workers and supplies imports. Taxation policies,
Change in government of United Kingdom(Matovic, 2020).
Economical Factor:- These are the forces that are related to economical factors such as interest
rates, employment rates and inflation that may impact the working of a Greggs plc. UK economy
is facing workforce pressure with huge vacancies.
1

Social and cultural Factor:- These are the sociological factors in a business environment that
impacts the functioning of a Greggs plc such as trends in market demographic conditions,
consumer beliefs, nowadays customers are more towards of eating meat food products most of
the youth prefers non vegan food over vegan food so bakery should include meat food items in
their menu.
Technological Factor:- These are the technical factors that relates in an organisation that affects
the working of a firm. Digital technologies are helping bakeries to offer best customer services
experience with Gregg's app and website and also with online menu and home delivery.
Developing technologies can affect negatively by increased frequency of cyber attacks on food
outlets(Lawton, 2020).
Legal Factor:- These are the factors in PESTLE analysis that impacts a Gregg's functioning in a
legal manner. These factors includes industry regulation laws, licenses and work permits ,
consumer protection laws, etc. United Kingdom has passed a compulsory rule of gender pay gap
for the firms established in 2021, new companies of food sector could attract charges of pay and
compliance of different laws, rules and regulations.
Environmental Factor:- These are the geological forces of environment that affects the Greggs
functioning directly. These factors includes natural resources, climatic change, availability of
raw material and carbon footprints etc. UK restaurants commitment for reducing food waste,
using paper bags instead of plastic polythenes for packaging, follow up reduce reuse and recycle
formula.
BCG growth matrix:-
BCG matrix is a functioning tool that provides the analysis of the strategic business unit
of the products and their potential. In references with Greggs, BCG matrix for the organisation
is discussed below:-
1. Stars:- These are the products of a bakery which holds a high market share with a high
growth rate. These are those goods that produce the highest profit amongst the portfolio
of product of Greegs. These products are- the sausage rolls, as it sells over 2million units
weekly so it is a star in the BCG matrix of Greggs Plc,
2. Cash cows:- Cash cows are the products of a business which have a declining growth
rate with high rate of market share. Coffee, cakes and pastries are those products
2