Planning for Growth: Evaluating Opportunities and Funding Sources for Margot Bakery

This document discusses the key considerations for evaluating growth opportunities and the sources of funding available to Margot Bakery. It explores the options for growth using analytical frameworks such as Porter's generic strategy and PEST analysis. The document also evaluates specific options and pathways for growth, and provides an in-depth analysis of potential funding sources. It concludes with recommendations for the best strategies for growth and the benefits and drawbacks of each option.

Planning for growth

Table of Content
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Analyse key considerations for evaluating growth opportunities...........................................4
P2 Evaluate the opportunities for growth applying Ansoff growth vector material....................6
M1 Options for growth using a range of analytical frameworks.................................................8
D1 Critically evaluate specific options & pathways for growth.................................................8
TASK 2............................................................................................................................................9
P3 Sources of funding available to businesses.............................................................................9
M2 Evaluate potential sources of funding & justification.........................................................10
D2 evaluate potential sources of funding with justified argument............................................11
TASK 3..........................................................................................................................................11
P4 Design a business plan for growth that includes financial information & strategic objectives
for scaling up a business............................................................................................................11
M3 Develop an appropriate & detailed business plan...............................................................13
D3 Present a coherent and in-depth business plan.....................................................................14
TASK 4..........................................................................................................................................14
P5 Assess exit or succession options for a small business explaining the benefits & drawbacks
of each option.............................................................................................................................14
M4 Exit or succession options for a small business..................................................................16
D4 Evaluation of the exit or succession options for a small business.......................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Every organisation which is established in the market, needs planning so that they can
effectively run their business organisation. Planning is thinking beforehand so that business can
increase their productivity and profitability. There are different types of businesses like micro
small medium and large and Every businesses need strategic planning so that they can move
towards growth and development. Margo bakery is the well-established company in the East-
Finchley, North London. The company is founded by Michelle Eshkeri and they are dealing in
breads cakes and pastries. Now the company to offer the new product in the existing market by
doing effective market research. This report will cover the Ansoff Matrix to analyse the growth
of the company and also using various models and theme so that they can launch their new
product effectively.
TASK 1
P1 Analyse key considerations for evaluating growth opportunities
It is necessary for every organsiation to make the market plan so that they can analyses
the available opportunity in order to sustain in the market in long run. Planning helps the
organisation to achieve their desired goal and Margo bakery is the small business which is based
in London and planning to offer new product in the existing market.
Porter's generic strategy
It is the model which help in in analysing the competitive advantage of an organsiation
and there are four strategies which is used by the different organisation in order to expand their
market. These are explained as follows:
 Cost leadership: - it is the strategy which is focuses on cost in which the organisation is
liable to offer their product and services at low price so that they can target the large
group of their potential customers. Margo bakery can use this is strategy so that they can
expand their customer base.

 Differentiation: - It is the strategy in which the organisation of the innovative product by
doing effective research in the market and understand the need of their potential
customers so that the organisation can attain have profitability and growth.
 Cost focus: - it is the strategy which is focuses on niche market and provide the product
and services at low price. The company can understand the needs and wants of their
customers. Margo bakery can provide their product in effective price so that they can
cover the large market.
 Differentiation focus: - It is the strategy which focuses on offering a unique product but
in the niche market the strategies mainly focus on brand loyalty so that they can attain
more competitive advantage in the market. Margo bakery can provide innovative product
in the existing market so that they can achieve higher profitability.
It is analysed that this model helps in getting more competitive advantage and Margo
bakery can use the cost focus strategy so that they can catch large group of potential customers
by offering low cost product in the market.
PEST Analysis
It is the framework of analysing the external environment which helps in in evaluating the
business operations and take the corrective action in the consideration of establishing good brand
image in the market. Various factors existing in the external environment are explained below:
 Political Factor – these are the factors which includes political stability and government
legislations and so on. Margo bakery is the small business and now they wants to expand
their business by introducing new product in the UK market. This is necessary for the
company to deal with the political stability of the company so that they can follow all the
protocols of that region.
 Economical Factor – these are the factors which includes exchange rate inflation
recession interest rate employment rate and so on. UK is having the strong economy but
due to uncertainty of Brexit, the company can face huge impact on their economic growth
rate. Margo bakery focuses on developing unique product so that they can earn more
profit.

 Social Factor – these are the factors which includes social value and beliefs of the
individual which reflect the buying behaviour of the consumer. Margo bakery affect the
whole market and target the various religion. Literacy rate also considered by this factor
and bakery is considering all age group members and their target customers.
 Technological Factor – these are the factors which includes the technological
advancement and changes of technology. Margo company is using various innovative
techniques so that they can satisfy the needs and wants of their customers and attend
higher profitability in the market.
P2 Evaluate the opportunities for growth applying Ansoff growth vector material
Every business & entrepreneur started their business from their innovative idea with the
desire to gain appropriate market growth of their small business. In order to achieve more
upcoming opportunities for their business growth, it is necessary for the entrepreneur to
understand the strength of their business so that with the help of their strength, entrepreneurs can
effectively get new chances and opportunities for the growth. Margot Bakery is a small bakery in
London, bakery owner want to improve their sales which can help full to manage the losses of
Covid pandemic. To obtain the various opportunities for growth, bakery owner need to apply
Ansoffs matrix , which is considered as the most prominent strategic planning model that can
help full to provide a proper strategy that is beneficial to gain more opportunities for the growth.
There are four strategies are involved in this model, bakery need to analyze that which strategy is
more appropriate for their small business to that they can attend more growth opportunities. The
explanation of all Strategies of Ansoff Matrix are given below -
 Market penetration - This strategy concerned about selling activities of existing
products & services into the existing market. Through this strategy, company can get
accomplish more market growth. This strategy is beneficial for the Margot Bakery which
only needs low cost and less time. Bakery owner need to understand the preference of the
people and also know the current status of the rivals.

Figure 1Ansoff Matrix: Understanding firms’ growth options,2021
 Market development - As per this type of growth strategy, existing products and
services entering into the new market. With the help of market development strategy,
businesses can effectively enhance their market activities with those products and
services which are already established there strong reorganization at the marketplace so it
is helpful for the company for a successful business expansion. Some specific benefits of
this strategy such as company can effectively develop their brand value in the new
location and also target more people which can help full to improve the sales and profit.
Company can take stores and shop on rent and effectively conduct production process in
new market. To attract the people, company can provide their product and services with
suitable cost.
 Product development - On the basis of this strategy, companies introduce new product
and services into the existing market. This strategy is beneficial for those businesses
which are want to maintain good position at entire marketplace and become strong brand
image. Margot Bakery want to introduce new product so that this small scale business
can effectively improve their performance and sales and establish strong brand value in
front of customer. With the help of this strategy, bakery can properly improve their
performance and profitability and target most people.

 Diversification - This growth strategy is all about introducing the new products into the
new market. This strategy is very risky and need high level of investment in term of
business expansion with new product which lead high growth rate.
On the basis of Ansoff Matrix Strategies discussion it is evaluated that these strategies are
playing prominent role for those businesses which want to prepare specific planning for growth
and also looking forward to get an appropriate opportunity so that they can effectively improve
their market growth and share. In context of Margot Bakery, product development is containing
as the most effective strategy which bakery can adopt for the growth opportunities.
M1 Options for growth using a range of analytical frameworks
There are various options for the group which company can adopt for the long-term
growth and development of their business. In case of Margot Bakery, product development
growth strategy would be the best option for the growth which company can use to analyze the
specific framework and also beneficial to take more competitive advantage as compared to their
rivals. There are various options bakery can consider such as SWOT analysis, Strategic group
techniques, growth share matrix & porter's five force model. All these options baby the best
option for growth which company can use to take high advantage.
D1 Critically evaluate specific options & pathways for growth
Some specific options & pathway for the growth are helpful to analyze the very good growth
opportunities which can useful for the businesses to attend more productivity and profitability.
Margot Bakery can conduct specific market research so that owner can effectively identify the
status of their rivals and determine the risk factors so that bakery can adopt appropriate strategies
to understand the internal and external market situation so that bakery can reduce the risk and
take more productivity.

TASK 2
P3 Sources of funding available to businesses
To run the business successfully, good capital and money considered the main concern of the
owner so that they can effectively operate their business operations without any financial
problem. There are various sources of finance which companies can contain to generate funds.
Margot Bakery is a small scale bakery which working properly to maintain good market position
in London. Bakery is about to launch new product so that company can recover all the the
financial losses which company gained because of pandemic. To introduce new product , owner
need at least £30,000 to introduce new product with a specific quality and cost which can attract
more customers so that company can make strong position at the whole market place. There are
various sources of finance which bakery can considered raising the fund. Declination of all these
financial sources which are available for the processes are discuss with their benefits and
drawbacks.
 BankLoan - on the basis of current market situation, Bank Loan is utilizing by more
entrepreneurs to running their business effectively. Entrepreneurs can take bank loan
from to type short term loan and long term loan. Bank loan is also more beneficial
because it can charge less interest as compared to other financials sources. Margot
Bakery can take bank loan to raise funds for the production of new product which will be
very convenient for the bakery.
Benefits Drawbacks
Bank Loan is beneficial and contains very
easy procedure it is very convenient for the
owner to take bank loan for their business.
Owner can effectively repay the loan money
as per their convenient.
There is also a drawback of bank loan that is
banks require any security and properties
against the loan. If owners are not capable to
reply loan on time then assets and property
can take from them.
 Overdraft - Bank overdraft is also considered as be good source of raising money.
Overdraft is worked as an agreement between customer and the financial institution that
can generally extend the credit limit for the customer to withdraw maximum money.

Benefits Drawbacks
The prime benefit of the overdraft is that it is
very flexible and convenient for the
company's which is cheaper than loan. It can
available on a specific time period when
company requires the funds.
The main drawback of overdraft is that the
amount that businesses can race with the help
of overdraft is less than personal loan & and it
charge very high interest rate. If owners can
exceed the overdraft limit then it charges the
extra amount.
 Angel financing - Most of the company are also using angel financing take money for
their businesses. On the basis of this financial Source, investors are investing for the
intention of to take equal position in the businesses.
Benefits Drawbacks
Bases can appropriately access the specific
knowledge and also contact with the investors and
take quick decision for the business.
In context of angel financing, businesses mainly
give up the share to their investors.
It is evaluated from the before discussion that bank loan as contain as the more useful
source of fund that is available for the bakery. With the help of bankloan , bakery can effectively
take loan for long period with lower interest rate so that company can smoothly run their
business operation.
M2 Evaluate potential sources of funding & justification
It is analyze that the financial sources that are bank loan, overdraft and Angel financing
are play a prominent role but bank loan is more suitable for the Margot Bakery. Overdraft is
more expensive and charge high interest rate, Angel financing is appropriate but it's totally
depend upon the investors and their decision. Bank loan is more appropriate for the Bakery
because owner can take loan for the long-term purpose and it also very flexible and charge low
rate of interest.

D2 evaluate potential sources of funding with justified argument
There are few specific sources of fund which require financial stability so that all the
operation of the company can operate in a smooth way. Margot Bakery consider bank loan
which is a most potential source of funding. There is some specific benefit and also drawbacks
of bank loan which Bakery also consider before taking bank loan.
TASK 3
P4 Design a business plan for growth that includes financial information & strategic objectives
for scaling up a business
Business Plan
Executive Summary – on the basis of current scenario of the whole market place , it is
analyze that there is a need to prepare specific business plan which can help full to make
strategic planning for the company so that company can effectively improve their performance
at the full marketplace. The main purpose of this plan is to identify the specific opportunities
for growth so that Margot Bakery can effectively improve their market position and enhance
their sale. Margot Bakery want to introduce a new product to that company can gain more
attention to their customer and also recover all the losses which bakery gained due to
lockdown.
Mission - To produce & deliver high quality of bakery food to their customer so that they can
weekend there potential customers.
Vision - To improve their marketing through convenient costing so that bakery can effectively
expand their own market all around the UK.
Objectives - The prime objective of the bakery is that to provide best quality of food to their customers
which can help you to gain more satisfaction level of the customers.
Goal - The main goal of the bakery is to launch new product so that can improve their marketing and

gain more profit maximization.
Company Summary - Margot Bakery is the small bakery in North London which founded in
2016 on valentine's day. This bakery providing pastries cakes and breads and also provides
high quality value to their customers. After the lockdown, bakery wants to come up with new
product so that bakery will gain more positive responses of their customers.
Products - Margot Bakery offering various kind of food items like fresh bread, flavored
cakes and pastries.
Market Segmentation – market condition is considered as a continuous process which are
adopted widely bakery to target the potential customer and also divide into sub group which
can help full for the company today is it them. Margot Bakery can consider demographic
segmentation and also psychological segmentation. This type of segmentation are helpful to
identify the specific preference as per the age groups and also attitude towards their products
which can helpful for the Bakery to target their customers effectively. The main concern of the
bakery to target kids, adults, younger and middle age people who can enjoy their bakery food.
Sales Strategy & Sales Forecast, Projected Profit & Loss
To introduce a new product and also improve its sales it is necessary for the bakery to prepare
a specific sales strategy via forecasting the sales which can help full to improve the selling of
the company in term of future also. Margot Bakery can consider the strategic selling strategy
and also need satisfaction selling strategy to improve the sales and delivery system of the
bakery. Bakery is planning to improve their production capability so that company can
effectively launch new product and generate more profit and overcome all the losses which
company experience due to uncertainty of the pandemic.
Competitive Edge – Margot Bakery is small bakery and providing their products and services
since 2016 in London. There is lot of competition in food and beverage industry it is essential
for the bakery to analyze the competitive status of their rivals so that bakery can effectively
make strategy on the basis of them which can helpful to take more Competitive advantages.

How are you securing investment?
Some specific way to securing investment that can aid to enhance the effectiveness of the
businesses. Margot Bakery can consider the appropriate source of funding which is require to
securing the investment of the bakery. Bakery can pay more attention on their team members
so that owner can make effective team to produce new product.
What will be your Growth strategy? Either Ansoff’s Matrix or any other growth strategy
you think is fit for the business.
There are many growth strategies which can helpful to improve the growth opportunities for
the business. Margot Bakery can Ansoffs matrix model, there are four strategies are included
in this model and it is analysed that product development is considered as the very useful
strategy which is suitable for the bakery. Product development helpful to launch new product
into the existing market.
Conclusion
On the basis of business plan discussion it is analysed that it is necessary for the bakery to
evaluate the opportunities for the growth so that bakery can effectively improve their brand
image. Company vision, mission, objective and appropriate goals which can provide their best
contribution in the development of the business. With the help of sales strategy and sales
forecasting , company can effectively maintain their sales for the future purpose and helpful to
take more competitive advantage.
M3 Develop an appropriate & detailed business plan
Business plan is work like a strategically framework which can help to maintain the
growth of the business. Business plan is mainly prepared by the company to create effective
value so that company can gain more profit advantage. Margot Bakery prepare a specific
business plan to prepare a new product which can helpful to accomplish objective of the
business.

D3 Present a coherent and in-depth business plan
Business plan is play a prominent role to rebuild the market position of the company.
There are various steps are involved in business plan like mission , vision , goals, objective,
marketing strategies, market segmentation, maintain the specific products line and also address
the specific problem and also help to evaluate the growth strategy to obtain more productivity
and profit maximization.
TASK 4
P5 Assess exit or succession options for a small business explaining the benefits & drawbacks of
each option
To analyze the current market situation, it is necessary for the company to consider the
specific options like exit plan or succession plan options for the business. These options are
playing an appropriate role in the term of small businesses which can helpful to take effective
decision about the growth of the company and also useful to take decision that company need to
think about exit plan of succession plan. The description of exit plan and succession plan options
in context of Margot Bakery are given below -
Exit plan
Exit plan is considered as the most comprehensive strategic framework which generally
determine different factor that influence the operations of the business. With the help of exit
plan, company can identify specific issues and also areas that create problem to attend the
success. Margot Bakery also consider this plan which can help full to determine specific issues
which effect there profitability. It is necessary for the company to work on reflection and also
overcome the impact of disturbing issues. Specific factors are involved which are given below -
 Winding Up - This is specific factors of this plan which also adopt an influential process in
term of sales assets on the basis of pay off the whole liabilities & debts. After the properly
spelling of the liabilities and also debts, remaining amount will be distribute to the
stakeholders of the company.

Benefits Drawbacks
The main benefit of this factor is that the
boards of directors & also higher authority
easily free from their liabilities & debts.
There is also a drawback of this factor ,it can
lead the turnover rate of the talented
employees.
Succession plan
Basically succession plan work for the growth and new applicability of the business that can
help to recognize & determine the new leaders who can be replace from the existing employees
of the company when they leave the company. Succession planning is beneficial to transfer the
power from one person to other. Margot Bakery can prepare a plan for that bakery can
effectively making all the future considerations and also overcome the uncertainty of any adverse
situation. Some factors are involved in this planning which are discussed below -
 Merger & acquisition - This factor is very useful to maintain the succession planning of
department. Merger is the useful method to combine one company to the other so that both
complete and work collectively to fulfill the objective of the firm which is beneficial for the
company to take more competitive advantage. Acquisition is also contain the specific
procedure that small businesses can follow to sell itself to the large firm.
Benefits Drawbacks
The main benefit of this method to improve
the specific skills & capabilities and also
eliminate the future risk and uncertainty.
It increases the chances of the duplication in
context of business operations that is
contained as the huge drawback of this.
As for the discussion of the exit plan and succession planning , it is analysed that
succession planning would be the most appropriate option for the Margot Bakery it can also
provide various benefits to that company can effectively maintained their requirement in term of
future purpose.

M4 Exit or succession options for a small business
On the basis of above discussion it is evaluated that from all these options, succession
planning is considered the most appropriate option for the bakery because Bakery is looking
forward to the new fortune for the business growth and also wants to launch new product so
succession planning would be the best option.
D4 Evaluation of the exit or succession options for a small business
Exit plan and succession planning is crucial and also appropriate for the business which
can help to identify the specific tissues so that company can effectively eliminate them.
Succession planning considered as the best option in which company can use merger and
acquisition for their business growth.
CONCLUSION
According to this project, it can be said that it is necessary for the company to conduct
specific planning for growth so that companies can analyze the upcoming opportunities for the
proper growth of the company. With the help of Ansoffs matrix, company can effectively off
most convenient strategy for their businesses and also implement it for the better outcome.

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