Planning for Growth Assignment - Foodholic restaurant

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................4
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.............9
TASK 2 .........................................................................................................................................11
P3. Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.....................................................................................................11
TASK 3..........................................................................................................................................13
P4. Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business......................................................................................13
Cash flow statement:......................................................................................................................15
TASK 4..........................................................................................................................................17
P5. Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.....................................................................................................17
CONCLUSION..............................................................................................................................20

INTRODUCTION
Planning for business growth forms core endeavour for any business irrespective of its
size, nature or industry. Proper planning encourages optimum resource management, exploring
opportunities, coordinating efforts, strategic positioning and continual improvement that
ultimately helps a company to gain customers satisfaction by minimizing its cost of production.
The report is bases on a new venture that is Foodholic that is multi cuisine restaurant belonging
to food and beverage industry (Albert, 2017). The entrepreneurs with aim to attain growth in its
new venture has entered into contract with Corby Borough Council, Midlands. The report will
discuss about key considerations for evaluating growth opportunities. Further, project will also
explain various sources of funding available for business along with preparation of business plan.
Moreover, different exit options that organisation could considered in its near future is also been
explained in detail.
TASK 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
Growth is a significant performance element and measure for success for a company. In
today's competitive business environment where every entrepreneur is competing for same
market space, attaining business growth becomes quiet important to continue to exist for a longer
time period. In context to UK, there are about 5.7 million private business recorded in 2017 and
SME's contributes to 60% of total employment for nation. Thus in this stiff and intense
competitive environment it becomes critical to be proactive to explore upcoming opportunities
for attaining success and growth (Allmendinger and Haughton, 2012). Thus, planning is integral
for achieving growth as it helps an entrepreneur to develop a blue print for growing business by
envisioning actions that are critical to be undertaken, expenses that are to be incurred, keeps
team focuses on track, saves unnecessary efforts, prevents decision fatigue etc.
Foodholic, is a sophisticated restaurant that is to serve global cuisines and beverages. It is
a partnership venture that is started with vision to become one of the leading restaurant chain
providing a wide variety of low caloric and organic Chinese, Spanish, Continental, Mexican and
other fast food and beverages. For attaining this vision and to be successful with its new venture
the owners has entered into a contract with Corby Borough Council that are interested in on site

catering facility for its Lodge Park Sports Centre and Midlands International Pools. This contract
will help Foodholic to attain growth and expansion as it will get opportunity of getting counter
services for offering their multi cuisines dishes at these centres. However, as this food and
beverage industry in UK is subject to intense competition it is essential for owners to ascertain
and consider some most prominent factors that could critically impact their business and its
profitability (Arasa and K'Obonyo, 2012. Mentioned below are the analysis of external
environment of the business along with generic strategies that could be helpful in determining
direction of Foodholic business.
Porter's Generic Strategies:
Cost Leadership: This generic strategy requires firm to become lowest cost producer in
its existing market for a given level of quality. The company sells its products either at average
prices to gain higher profitable edge over rivals or lower than market prices so as to attain large
market share. Through this strategy, Foodholic can target broader markets, control the cost and
overhead cost, reduction on areas like sales force, advertising, R&D etc.
Differentiation: Applying differentiation strategy a venture seeks out to be unique by
introducing new innovative product in its existing target market. Under this strategies firm offers
products and services that are customized as per consumers untapped demands and requirements.
The value addition and uniqueness offered by firm is awarded with a premium price. It allows
business to select best segment for whom those products/services perceived higher value at a
differentiation cost (Barbour and Deakin, 2012). It could be based on providing innovative
products, distinctive features, premium quality, after sales services etc. Through this strategy,
Foodholic can increase their market share and profitability by introducing new product in the
existing market.