Planning for growth

This report discusses the key considerations for evaluating growth opportunities, applying Ansoff matrix, funding sources, and business plan for Home bake in UK. It includes the analysis of the Vrio framework, the evaluation of funding sources, and the operational plan for the growth of the business.

Planning for growth

TABLE OF CONTENT
INTRODUCTION .........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysing the key considerations for evaluating the growth opportunities with justifying the
considerations with the home bake in UK. .................................................................................3
Evaluating the opportunities for the growth applying Ansoff matrix .........................................5
Assessing the funding sources which are available to the business with discussing its
drawbacks and benefits................................................................................................................6
Business Plan...............................................................................................................................8
Assessing the exit and the succession option for the business and explaining the benefits and
drawbacks of each option ..........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning for attaining growth in the business mainly aims in diversifying the business
and its opportunities for attaining growth in the business. As for building the performance and
attaining growth in the business, it mainly requires the plan for the business as to expand and
adapt the opportunities for attaining growth. Home bake is mainly recognized for serving the
home products for making and baking cakes. This project report provide details with explaining
the key considerations. Also evaluating the growth opportunities and applying the Ansoff matrix.
Further, assessing the funding options available with the business. Lastly, assessing the exit and
succession option for the business with discussing its benefits and drawbacks.
MAIN BODY
Analysing the key considerations for evaluating the growth opportunities with justifying the
considerations with the home bake in UK.
Small scale business in the environment are mainly classified for operating at the small
level consisting of less than 250 employees and earning around less than 50 million turnover n
the year. As for the small scale business enterprises the government of the country mainly offers
the incentives to the business and providing favourable taxing rates (Jeje, 2020). Planning for
attaining growth in the business mainly helps in accessing and adopting different stares in the
business for attaining the potential growth. With this the home bake is mainly expanding its
outlet in the Southwell UK. Also, expanding the range of organic products mainly helps in attain
growth in the business by serving the low calorie food products to the consumers.
With applying the porter generic model
In this model it mainly specifies about three growth strategies which is being adopted by
the business to attain growth with expanding the business:
 Cost leadership: This strategy mainly aims in specifying the business by lowering its
cost to attain growth in the business by attain low profits. In this offering quality product
at low prices to attain growth.

 Differentiation strategy: With this strategy it aims in providing the unique product to
the consumers for distinguishing from its competitors, which mainly helps in increasing
the competitive advantage.
 Focus strategy: In this selecting the particular market by narrowing the scope to serve
with focusing on the particular market.
Thus, for the home bake the most suitable strategy to attain growth is to adapt the
differentiation strategy in the company. As in this the company may tends to offer new and
differentiated products to retain the loyal consumer market. As by serving the organic cakes,
bakery products (Porter's Generic Strategies, 2022). This tends to attract health conscious
consumers which promotes the green based bakery products. As with using this strategy is handy
to attempt and apply for the consumer. Further more, this strategy helps in attaining growth by
attracting the consumers to serve with the heath and organic bakery products in nature.
viro analysis
Resources valuable rare imitable organised
Equipments and
tools
✓ ✓ x ✓
finances
✓ ✓ x ✓
Brand image x ✓ ✓ x
Speciality in
menu
x ✓ ✓ x
Human
resources
✓ ✓ x ✓
Thus, from the above table of the Vrio framework it mainly helps in attaining
competitiveness for serving in the market. As the equipments, finances and the human resources
working in the home bake are valuable rare and being organised for serving the company
consumers. But the company does not have the global presence which lacks its image in the eyes
of the consumers (Explaining The VRIO Framework (With A Real-Life Example), 2022). Also,
not serving the social menu range to the consumer lacks in attracting to visit the place more than

one time. For this home bake lack competitiveness while serving in the existing market, with this
it must expand the business into the new market and attract the consumers by launching the new
innovate products as the organic range to attain the competitive position in the dynamic market.
Evaluating the opportunities for the growth applying Ansoff matrix
Opportunities in the business mainly helps in defining about the competitiveness to be
attained in the business for sustaining and growing the business. For the home bakery it helps in
defining about the objectives by serving and establishing the growth opportunities in the business
as with serving the new organic products in the bakery and establishing the new outlets in the
current market. The Ansoff growth matrix is being used for evaluating the planning strategies for
attaining the growth in the future.
Market penetration: This growth strategy mainly aims in defining about attaining the growth in
the business by serving the products in the exiting market as for attaining the growth with ever-
increasing the sales. For this the home bake serving various goodies, rainbow of colours, glitters
in the exiting market of the Southwell in UK. With providing the personal touch in the country to
its bakers with serving glitters, piping the cup cakes and other things (Linniks and et.al., 2020).
With growing the consumer market for satisfying the needs and wants of the consumers to start
baking at home with providing various utensils and the platters. With adopting this strategy it
helps in retaining the loyal consumers market as to attain and serve the quality of dishes to the
consumers with maintaining the safe and quality environment.
Advantages: This strategy boost the brand image and create awareness among the
consumers for increasing the sales of the products.
Disadvantages: it lowers the margins of the firm and it is expensive in nature. As it
require high level of investment in the company to attain growth in the market.
Diversification: this growth strategy mainly aims in defining about the diversifying the products
ranges by introducing the new products and services to enter into the new market (Johnson and
et.al ., 2018). As for the home bake is launching and establishing its new outlet in the UK. Also
adding the new range of the menu n the cards mainly helps in growing the business into the
target market.
Advantages: it helps in boosting the image of the company while operating in the
competitive market.

Disadvantage: this strategy is less flexible in nature which reduce the quality or serving
the products.
Market development: With adopting the market development strategy mainly aims in defining
and specifying about the entering into the new market as to expand the business and its
operations to enter into the market as for serving the consumers. This is complex in nature and
aids in entering into the new market for being competitive in nature (Globocnik, Faullant and
Parastuty, 2020). As for expanding the home bake in the new market, this strategy is most
suitable for the business to establish its new outlet in the new market and serve the large target
consumers.
Advantages: This strategy helps in increasing the revenues and profit in the company by
increasing the consumer base.
Disadvantages: High capital investment is needed for expanding the business into new
market.
Product development: With adopting this strategy it helps in developing and introducing the
new product range for attaining growth in the existing market (McLean and et.al., 2018). As by
adding the new menu range, with introducing the organic cakes and the bakery products to serve
the consumers market mainly helps in attaining competitiveness while serving the large
consumers market.
Advantages: With introducing the new product range in the company helps in attracting
large consumers base as by serving with the new trends and preferences.
Disadvantages: It increases the cost by offering new products to the consumers in the
market.
Thus, the home bake adopts the product development strategy in order to attain growth in
the company by serving with introducing the new organic products ranges including the bakery
products to attract the consumer.
Assessing the funding sources which are available to the business with discussing its drawbacks
and benefits
Different sources of funding assists in attaining the business with the growth and
different potential advantages to the business. The different funding sources are as follows:

Private investors: The sources of funding from the private investors mainly aims in defining
about funding the business and taking some portion of profits, in this the individuals mainly
show keen interest for being the part ad acquiring the amount of profits from them.
advantages disadvantage
 Taking loans from the private investors
does not require the set date to repay
the money back.
 Secures the business with providing
creditability.
 Creates pressure on the business as the
investors acquire the amount of portion
from the part of profits.
Venture capitalists: This is the funding options for the business in which the private investors
mainly provide funding to the business as to operate and attain growth by expanding the business
to increase the sales and profits.
advantages disadvantages
 Helps in taking large amount of capital
for funding the business.
 No assets are being required to obtain
funds.
 It is expensive in nature.
 Length process as it is difficult to find
the venture capitals for obtaining the
fund.
Financial institutions: these institutions mainly aims in defining about providing the services
including the banking, insurance, granting the loans. Thus, the business must have to agree on
certain terms and conditions to take the loans from these institutions.
advantages disadvantages
 Easy instalments to repay the money
back.
 It is easy accessible to obtain the
money for longer time period.
 Need to follow rigid rules.
 Controls the business with the strict
power.

Loans from the banks: Taking loans from the SBA banks for operating the business as of the
home bake in the long as it mainly helps in expanding the business operations as to take the loans

at low rate of interest and it is flexible to pay.
advantages disadvantage
 Loan from the SBA banks is accessible
with the easy instalments and the low
interest rates.
 These supports the growth of small
business.
 Long process is being required.
 Additional paper work is to be
maintained.
Thus, the most suitable option for home bake is to obtain the fund from the SBA banks as
it is easily accessible and helps the business to attain growth by supporting the funding options at
the low rates of interest. Also with this options, the longer repayment options is being available
with the home bake which helps in attain long term growth for the future uncertain options.
Business Plan
Overview
Home bake is a small bakery shop which is located in Southwell, England and
established in 2016. The entity is engaged in providing various delicious home made cakes and
other bakery items. The shop is planning to add some organic and healthy cakes and bakery
items in its menu to attract health conscious and diabetic people of UK. It is also planning to
expand its business by opening one more branch in Southwell. The cake and bakery items that
are to be introduced will be of low calorie and sugar free.
Purpose
The purpose of adding new healthy and organic items in menu is to attract health
conscious and diabetic people of UK. People of UK are moving towards healthy living and this
is a great opportunity for bakery to increase its revenue and also an expansion opportunity to
open a branch in Southwell itself.
Vision
The vision of Home baker is to provide customers home made products which are
superior in quality and to become first choice for customers in bakery products (Djordjevic).
Mission
The mission of company is to provide delicious, high quality and nutritious bakery
products at reasonable price.

Objective
The objectives of Home bake are:
 To expand its business and open branches all over UK
 To increase its sales by 10% in next three years
 To enhance its market share by 1% in upcoming years
 To improve and maintain higher quality of bakery products
Stakeholders
Home bake is a small shop i.e. it is a small business which has few stakeholders. The
stakeholders of company are owner, employees, customers, suppliers and government
(Choudhury and Pattnaik, 2020). The employees of the bakery are bakers and counter staffs.
Bakers are specialized in making delicious cakes and other bakery items as per customers' taste
and demand.
Capital funding
Home bake is planning to expand its business by adding new product line and by opening
a new branch. The organic bakery products will require organic ingredients and to open a new
branch entity requires funds. This growth plan will enable entity to increase its market share and
attract more customers which will lead to growth and development of business and organization
will be able to achieve its goals and objectives (Siziba and Hall, 2021). The budget has been
prepared by organization for opening a new branch. For raising funds there are various sources
of funds: bank loan, crowdfunding, angel investors and venture capital. Entity is planning to
raise funds through crowdfunding as it is a fast way of raising funds with no processing fees.
Organization will also be able to get publicity through this way of raising funds and one more
advantage is that company will get feedback and expert guidance.
Operational plan
The operational plan is required to be made to identify and evaluate the areas of operation
which are required in accomplishing business goals. This plan will enable company in
developing effective strategies in accordance to goal and objective and after identifying risk
involved in the growth plan. The effective and efficient business strategy will help in smooth
functioning of business operations and expansion.
Technology plan

The technology plan is developed to evaluate what are the technologies required in
expansion plan. The entity is planning to introduce new product line which will require some
machines for preparing bakery products. Organization is also planning to install a software which
can take orders online so that entity will be able to increase its revenue through online business
and home delivery services. It is also planning to install self-service counter where customers
will be able to pay cash which can reduce waiting time of customers.
Risk factor
There are various risk involved in business plan as company is launching new organic
product line which is not familiar to entity there is a risk involved in failure of this expansion
plan (Oehmen and et.al., 2020). The organization is planning to open new branch in same town
which is an advantage because entity is familiar of market and customers with whom it is
planning to deal with. The other risks are operational risk, market risk, financial risk, competitor
risk, etc. For ensuring success organization is required to identify all risk involved in growth plan
and take corrective measures for mitigating loss due to risk.
Marketing plan
Marketing plan is developed to evaluate market and current trends according to which
organization can plan its expansion and get success. Marketing mix is used as tool to evaluate
market and customers and to make effective marketing plan to attract customers.
Product: Home bake is providing delicious home made cakes and bakery items. Company is
planning to launch a new product line of organic products which are low calories and sugar free
cakes and other bakery items for health conscious customers (Chukwuma, Ezenyilimba and
Agbara, 2018). The ingredients that are to be used are organic products and there will be no use
of sugar.
Price: The entity is selling its products at reasonable price which can be affordable for customers
of all levels. The low calorie and sugar free cakes and bakery items will have higher price than
that of other bakery products. Company will ensure to keep competitive price which are
affordable to customers at all level.
Place: The entity is operating in two different modes i.e. offline business and online business. It
has a well-established shop in Southwell and is planning to open another branch in same town
for convenience of customers (Zhang and Zhang, 2021). It is also providing online order and

home delivery services to its customers which enables it to reach every customer and build a
strong loyal customer base.
Promotion: To attract customer and to remain competitive, Home bake is required to adapt
effective and efficient promotional strategies. Entity uses traditional way of promoting its
business through television advertisements, pamphlets and holdings. The other mode of
promotions is social media and other online platforms. Company also provides discounts to its
customers on various occasions.
Time frame
Activities Week
1 2 3 4 5 6 7 8 9 10 11 12
Market research
Development of vision
& mission statement
Setting of goals and
objectives
Identifying stakeholder
Preparation of budget
and evaluating
appropriate source of
funding
Preparation of
operational plan
Developing technology
plan
Analysing the risk
involved
Preparation of

marketing plan
Budget
Particulars Amount (in £)
Market research expense 600
Operating cost 2250
Administration expense 250
Wages/ salary 1500
Sales and marketing expenses 1600
Lease rent 2360
Miscellaneous expenses 750
Furniture and fixtures 3650
Kitchen equipments 1250
Total 14210
Recommendation
It is recommended to Home bake to have a good research of organic products and find
appropriate suppliers who can provide high quality ingredients at reasonable price so that the
overall cost of preparing cakes and bakery items can be low. As it is new to this field it must take
feedback from customers and make necessary changes if required. Entity is also required to
adapt effective promotion strategies to attract more customers.
Assessing the exit and the succession option for the business and explaining the benefits and
drawbacks of each options
Planning for attaining success in the business mainly aims in specifying about attaining
growth by adopting the most suitable options. With adopting the ways which mainly helps in
succeeding the business by planning for growing in the future.
Merging and acquisitions

This approach mainly in merging the business, in this the business mainly merge as to
work together for operating in the existing market of the business (Sources of Funding, 2022). In
the acquisitions the one company mainly purchases another for serving the consumers and
merging aims in combing the to company and the firm to serve the exiting and current market.
Advantages: While adopting this strategy it mainly helps in enhancing the distribution capacity
of the business as to attain the long term profits and goals in the business.
disadvantage: It mainly increases the legal costings, as it also allows the companies to attain the
loss as by paying for the assets to operate the business with merging with the other companies.
Passing succession
Passing succession to the other family member mainly aims in defining about passing the
ownership of the business as in terms of retirement of the individuals or when the owner dies.
This strategy mainly assists for attaining profits by expanding the business into the dynamic
business market.
Advantages: It mainly helps in protecting the business from the dynamic environment, as it
results in reducing the expenses with securing the business by passing to the other individual and
the family member.
disadvantage: It losing the workings and the productivity in the business as when it is been
passed to the other owner of the business.
Liquidating the business
The liquidating the business is mainly the strategy which aims in permanently losing the
business by making exit from the current market operations. In this the firms mainly aims to pay
off all its debts and liabilities by permanently closing and exiting the business from the market.
In this the firm mainly sells the business and the assets for paying its all debt and taking exit
from the market.
Advantages: The main benefits of their business as it helps in paying off all the debts and the
legal compliances of the business, also it dissolves the insolvent business. Also it reduces the
pressure on the business from its creditors.
Disadvantages: It losses the current market share of the business as by removing and paying of
all the debts of the business and permanently removing from the market with limiting its share.
Thus, from all the above options the most suitable for the home bake is merging and
acquisition. This option mainly helps in succeed the business by expanding its range of the

business with merging to the other resources and giving access to the equipments of the other
business into the market. This options mainly helps in being more competitive as for serving into
the global market with increasing its market share (Olesen and Hansen, 2020). As the home bake
will expand its business in the menu range by adding the new range of organic bakery products.
With the merging and acquisition it helps in easily negotiating as to work with the other business
for increasing its sales and the market share by serving to the new consumer market.
CONCLUSION
From the above report it can be concluded that, planning for attaining the growth in the
business mainly helps in adopting different strategies to be more competitive in the environment.
With using the porter generic strategies and the Vrio analysis mainly helps in evaluating the
growth opportunities available with the home bake in the market. With adopting the best source
of dung for the business by taking loan mainly helps in attaining growth while serving in the
highly competitive market. Thus, adopting the merger and acquisition as an exit option in the
business helps in attaining success for long term growth in future.

REFERENCES
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