Planning for Growth: Analysis of Growth Opportunities and Funding Sources for Ella's Kitchen

Political- This factor refers to the political conditions of the marketplace in which
business is flourishing. Political factor shows the impacts which are imposed and result of
policies, laws and regulation issued by government for that particular industry. The
political environment of UK is unfavourable for the industry due to Brexit, the
government will be making new trade policies. It is uncertain that these policies are
helpful for Ella's Kitchen or not. This uncertain nature of polices will bring inflexibility in
companies polices.
Economical- This factor represents the economic position of the marketplace in which
business is operating. The economic environment of UK is unstable due to Brexit and
SME's play a vital role in moving the economy upwards. This factor is negative for Ella's
Kitchen but can be a growth opportunity if company provides their goods at affordable
prices. It will result in increasing their market presence and their goodwill company will
get mouth publicity.
Social- This element refers to the population, their preferences and taste, their buying
behaviour and many other factor. Social factor is affecting entity positively as people are
more aware and concerned about their health which is why they prefer organic goods for
them and their families. This is a growth opportunity for Ella's Kitchen as the core feature
of products developed by company are organic.
Technological- Its name represents its reference, UK have good access to new and
updated technology. This means new and updated technology which is more efficient is
accessible by the organisation for making their operations more effective. Ella's Kitchen
can make use of these new sustainable technologies in production for increasing their
productivity and operational efficiency also help in reducing cost.
INTRODUCTION
Growth is one of the most important factor for success of company as it is
necessary to survive and sustain in aggressively competitive market environment. In
order grow, organisations need to develop plans for exploring all available growth
opportunities. Planning is an essential stage by which every types and size or business
owner go through. These plan are made for effectively operating of company's activities
in order to attain all predetermined objectives. Numerous plans are developed when an
organisation plan to grow and tap into new market either national or international.
TASK 1
P1 Evaluation of growth opportunities by applying Porter's generic and PESTLE
framework
Every business owner of an organisation make plans for working according to
them and attain all objectives. Planning is a continuous process which takes place in
entity, therefore while growth opportunities are being explored by business plans are
made. But before planning some fundamental information about the macro environment
needs to be gathered. In this section, PESTLE analysis and Porter's Generic model is used
for knowing the external environment of Ella's Kitchen and according adopting a
specific market development strategy.
PESTLE analysis
This is a tool which has six elements covering each section of external
environment which has its impacts upon the whole industry and on businesses operating
in it. Ella's Kitchen is a manufacturer and make sales in wholesale to the supermarkets.
Therefore, in order to grow entity needs to know growth possibilities or opportunities.
For this PESTLE analysis is conducted in order to know current trends and situation of
economy.
Planning for Growth

Differentiation- This strategy states that the products which are offered by organisation to
target market is unique and do not exist in marketplace. It refer to the concept of
innovation and inventions where Ella's Kitchen can develop new product for their targeted
audience. The company can make use of their experts and technologies for developing an
entirely new product for people.
Focus- This strategy suggest that in whichever direction company is going it should be
focuses. It can be cost focused and differentiation focus, in cost focus company can target
a niche marketplace and offer them goods at lower price and of the similar quality. In
focus differentiate, company should focus on rendering a new product their their targeted
audience, who features are unique and satisfy the need of targeted group.
Out of these three strategies discussed above of Porter's Generic model, the most
suitable strategy for Ella's Kitchen is of cost leadership. This is because company is
planning to grow in a new market segment and rendering products in a lower cost can help
it to keep its steps in marketplace more firmly giving huge competition to others and
attracting huge population.
Legal- This is similar to political factor an addresses the legal environment of the UK.
This element covers all specific laws and regulation which are established by government
for better functioning of economy and controlling all businesses effectively. Ella's
Kitchen has to follows all the law such as food and health safety and other related act to
be safe from any legal charges and penalties.
Environmental- This is a new factor which came into existence due to increasing
awareness for environment and plays a very important role. For keeping up with it
government take initiatives for developing sustainable business strategy. This is growth
opportunity for Ella's Kitchen as company is in organic sector and develop organic food
products. Therefore, using sustainable business strategies and technologies will enhance
company's position in marketplace, attracting more people and changing them into
potential buyers.
Porter's Generic model
Competitive advantage is that situation or factor which separates company from other
competitors who are dealing in the same industry and product lines. While planning for
growth number of situation arises which can give entity competitive advantage factor. In
order to seek it Porter's Generic model is used. It has three strategies which can help
Ella's Kitchen to be competitive and separate itself from others. These strategies are
explained below:
Cost leadership- It is one of the most important strategy which helps a organisation to
make their position in target market by rendering goods and services at low cost with the
same quality. Ella's Kitchen is planning to grow for which this strategy can make
company more competitive because as production concept the goods which are present at
low cost with same quality attracts more and more people.