Planning for Growth

This report evaluates the growth opportunities for The Fat Duck restaurant and provides strategies for growth. It discusses considerations for evaluating growth opportunities, Ansoff growth matrix, sources of finance, and business plan.

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 considerations for evaluating growth opportunities..........................................................3
P2 Ansoff growth matrix........................................................................................................7
LO 2.................................................................................................................................................9
P3 Sources of finance.............................................................................................................9
LO 3...............................................................................................................................................12
P4 Business plan...................................................................................................................12
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
Growth planning is basically the strategic activity which enables the organizations to
track their growth in terms of their revenue and thus allows them to devise various strategies for
growing as well as developing in the future. The Fat duck restaurant is primarily the restaurant
being established in 1995 and headquartered in Berkshire, England. This restaurant provides
wide range of meals as well as dishes to customers ranging from breakfast to dinner. The main
aim of this report is to evaluate the current position of The Fat Duck restaurant in market and
hence recommend various strategies for growth.
This report gives a brief overview of selected business, competitive advantage for
business, opportunities for business, Ansoff growth matrix, sources of the finance and
recommendation.
LO 1
P1 considerations for evaluating growth opportunities
In order to analyses growth opportunities of business, Pestle analyses model is being used
by new firms.
Political factor: As restaurant industry is growing well and there is high opportunity to get
success in market. Government is supporting this sector and continuously providing support to
business. Free trade agreements and visa policies are helpful in attracting ne buyers that help
business to gain success in market.
Economic factor: Fat duck restaurant can get opportunity because there is high employment rate
in the county hence capacity of people is also high hence people spend money to get restaurant
services hence enterprise has opportunity to gain success in market.
Technological factor: This is another major element that shows opportunity to business. In the
recent time fat duck restaurant will use advance technologies such as POS machines that will
help in keeping records properly and providing immediate services to wide range of consumers
of restaurant hence it will enhance opportunity to grow well in market.
Social factor: This is the factor that has high influence over business performance, people of
country like to go restaurant hence enterprise will offer food to the consumers as per the taste of
consumers that will enhance opportunity for Fat duck restaurant to grow well in market.
The fat duck restaurant is basically the renowned and well-known restaurant being
established in the year 1995 and have its headquarter in Berkshire, England. It is run by the

popular chef Heston Blumentahl. This is considered as one of the most liked restaurant in
England and thus having a small business, this restaurant houses more than 32 staff which has
increased from past few years. This restaurant initially gained first Michelin star in the year 1999
but with its high degree of consistency, it gained three Michelin stars in the year 2004 which
made it one of the fastest growing restaurant in UK. This restaurant is basically known for
fourteen-course menu which features a wide range of dishes like nitro-scrambled egg, bacon ice-
cream, Alice in Wonderland etc. The most renowned and remarkable thing which has made this
restaurant popular among people of UK is mock turtle soup which is made up in such a way that
it gives the look of fob watch (Dierwechter, 2017). This dish has ultimately become one of the
major contributor in revenue as well as profit of this restaurant. The Fat Duck restaurant is
considered as one of the highly growing business which despite its small business have grown to
a high extent from past few years. Talking of the capacity, restaurant has seating capacity of
around 40 and have fourteen tables.
Coming on the quality as well as services of the restaurant, it provides a high quality
services to its customers by having a great treasure of trained staff and chef. The Fat duck
restaurant have a large proportion of the chefs which are highly skilled as well as trained and
thus complies to the ethics and food standards by providing healthier and fresh meals to the
customers. This main aspect which has helped this restaurant to become widely known restaurant
in UK is their ability of experimentation. Most of the items in menu of this restaurant is mainly
developed through experimentation like egg as well as bacon ice-cream which came after the
investigation of the flavour encapsulation. Not only its dishes have won hearts of most people in
UK, but the beverages which are being served by this restaurant has become one of the major
catalyst in growth of restaurant. The various kinds of beverages being served by the restaurant
help people to become nostalgic and make a deep connection with their childhood memories.
This restaurant besides this has a separate lab where various equipment like centrifuge are being
placed for making the chocolate wine (Frenchman, 2017). Apart from the beverages and dishes,
this restaurant is also known for its great sweet dishes and desserts like Sardine, Black forest etc.
Alongside, the dishes are served are highly innovative like Sounds of Sea which is the widely
known dish of this restaurant. This is basically the plate of the seafood with seafood foam.
Talking of the events, this restaurant is considered as the ideal place for hosting a large number
of business and social events like conferences, marriage, birthday parties, social gatherings etc.

Competitive advantage for business
The Fat duck is one of the well known restaurant in UK which is widely known for its
great quality as well as service. This restaurant even though having little diversification has
gained a competitive advantage to its best. Although, it is a small business but the restaurant has
gained popularity in UK from past few years which has helped them to gain competitive
advantage.
Quality
Quality is one of the main aspect which has helped restaurant to attain competitive
advantage and thus have helped them in establishing the position in market. The organizations
like many restaurants are known for their great quality in terms of the food being served to
customers, services offered to customers, staff etc. (Albert, 2017). This has become one the most
important basis for restaurant which can help the restaurant in achieving competitive advantage.
Thus, restaurant can achieve a great aspect of quality by improving its services as well as
technology and this will help to improve performance in market. By providing the top class
quality to the customers as well as suppliers, The Fat Duck restaurant will be able to capture a
high market share and this will allow them to enter the new market.
Staff
Staff is one of the most important aspect of each and every organization whether big or
small which directly contributes towards the success of organization. When the staff as well as
employees of even a small organization are highly skilled then their skills as well as ability help
the organization to achieve competitive advantage (Angotti, 2018). The Fat duck restaurant can
provide effective training to staff which will help them to achieve competitive advantage and
thus will help them in future to diversify their business in wider geographies. This trained staff
will eventually help the restaurant in entering new market and achieve competitive advantage.
The competent as well as highly trained staff will help the organization to achieve competitive
advantage and will help to take the brand message to wider audience. This will eventually help
the organization to enter the new market.
Service
A customer always looks for the organization who have the potential to fulfil all their
needs and demands and thus rely on the organization which provides a great service to them.
Thus, service forms an integral part of any organization which helps them to achieve the

competitive advantage. When the business offers a great and high quality services to customers
then it leaves a positive impression on minds and hearts of customers. Thus, providing a high
quality service will help this restaurant to achieve competitive advantage. By offering great
quality services in terms of technological advancement, reduction of queue time etc. will help
this restaurant to eventually establish position in market (Bagheri, and et.al., 2018). By providing
the high class services to the customers, restaurant can establish its position in market and
increase is brand recognition. This will also help the restaurant to enter new markets like
Denmark, Netherlands etc.
Opportunities for business
There are wide range of opportunities which are being available to The Fat duck which
will help them in future to diversify their business and thus develop in wider geographies. In
order to exploit these opportunities, restaurant needs to continuously look for the market trends
along with the customer’s trends which will help them to capture a great market share.
Technological advancement
Since the advent of advanced technology, people have now become technology-oriented
and thus looks for technology and innovation in each and every aspect (Daniels, 2017). This will
be a great opportunity for restaurant which will help them to become a market leader. For
example- restaurant can incorporate technology like Kitchen display screen which will help
customers to know the time of their order processing. Besides this, the restaurant can install
guest kiosk where customers can order their food by sitting at their seat and thus this will reduce
queue time. This is one of the biggest opportunity which is available to restaurant which they
should seize.
Innovation
This is the another opportunity which is available to restaurant and thus will help this
restaurant to achieve competitive advantage as well as enlarge customer base. Each and every
customer looks for innovation in every product as well as service and thus like to depend on
those organizations which brings continuously brings innovation. This is one of the biggest
opportunity that can be availed by restaurant and will help them to capture a great market share.
Even though being a small business, restaurant can increase its investment in innovation and thus
this will help them to eventually gain an edge over their competitors (Dierwechter, 2017).
Health is wealth

Nowadays, a large number of people have become health conscious and thus looks for
food which is healthier and organic as it will protect them from various diseases. This increasing
awareness of people for their health and greater demand for healthier food has been a widespread
opportunity for this restaurant. The Fat duck restaurant should shift its focus from fatty processed
food to healthier options. This opportunity will eventually help them to attain competitive
advantage. Thus, this restaurant has the chance to define health in more defied terms
(Frenchman, 2017).
P2 Ansoff growth matrix
Ansoff matrix is basically the framework which helps the organizations to analyse their
capabilities as well as strategies which will help them in their growth as well as development.
Market penetration
In this strategy, organization mainly uses already existing products as well as services
within the existing market. In short, this strategy of the Ansoff matrix mainly addresses that
organization endeavours to increase their overall market share by taking their products as well as
services within existing markets where it has already made its presence. This can be achieved by
The Fat Duck restaurant by selling high number of products as well as services to the established
customers or through looking for new customers in existing market. Besides this, restaurant can
achieve market penetration by decreasing overall price as well as increasing promotion as well as
distribution support (Heydari and Sullivan, 2018). The fat duck restaurant can face moderate risk
here as if restaurant will advertise the existing products without making innovation in it and will
serve to existing customers then customers might switch to other competitors in search of
innovation. In order to mitigate this risk, restaurant can bring innovation within their products
and services like increasing menu options, bringing innovation in dishes etc. and can serve to the
customers.
Market development
This is the another strategy of Ansoff matrix in which organization mainly expand within
new geographies as well as segments by making use of the already established as well as existing
offerings. Basically, in this strategy organization mainly enters the new market by seeking help
of their existing products and thus expand within wider geographies. This strategy is mostly
effective as well as successful when the firm owns the proprietary technology which can
leverage within new markets. The Fat duck can make use of market development and expand

within new markets like for example Denmark, South Africa, Netherlands etc by taking their
products in new segments of customers and thus fulfilling their needs as well as demands.
Besides this, restaurant can enter the foreign markets like South Africa, Netherlands etc. by
collaborating with large organizations (Huang and van Weesep, 2019). The Fat duck restaurant
might face high risk here as most of the people due to its low brand awareness are unaware of its
presence thus when restaurant will enter new market with existing product then there might be
chances that it faces difficulty in establishing its position due to low brand recognition. For
reducing the degree of this risk, restaurant can first conduct a thorough market research in order
to know what are the market trends, customer needs and then enter the market.
Product development
In this strategy, organization mainly generally develops the new product as well as
services and then serve the needs as well as demands of the existing market. In this, firms mainly
create new products or bring some innovation within their existing market and thus advertises
within the market in which it has its business and have gained competitive advantage. The Fat
Duck restaurant can develop their products its menu and services for example it can rebuild its
menu with innovative dishes and hence apply this strategy by investing heavily within R&D
department for developing new products. Besides this, restaurant can acquire the rights of the
products of their competitors for innovating the products. (Kamoji, Koshti and Peter, 2019). In
this, The Fat Duck restaurant may face low risk as when restaurant will provide different
products to existing market then the product might become successful due to the awareness of
the loyal customers towards its products.
Diversification
This is one of the most remarkable as well as significant strategy which is used by the
organizations in which firms mainly enters the new market along with new product. Unlike other
strategies, in this organization develops new products and take these products to the new and
different market. This is considered as the riskiest strategy of Ansoff matrix as in this product as
well as market both are new and different. The major advantage of this strategy is that it helps
the organization to establish their business in new market and diversify their overall brand
message. The Fat duck restaurant can diversify their business as well as firm by seeking the help
of related diversification. In this, restaurant can establish the new products and services like
Kitchen Kiosk within the same product line and can advertise in new markets (Kinossian, 2018).

The restaurant might face high risk by using this strategy. When restaurant will enter the new
market with new products then due to low brand recognition and awareness it might not survive
the cut-throat competition. For mitigating the risk, restaurant can conduct a well-through
research on the market in which the restaurant is planning to enter for recognizing the
competitors. Besides this, restaurant can analyze that what are needs of customers and what
innovation they want.
The most appropriate as well as advantageous strategy which will help The Fat Duck
restaurant to establish their position in market and gain competitive advantage is product
development. As in this strategy, organization mainly establishes the new products and take
them to the existing markets thus this will help restaurant to gain competitive advantage in the
market. The Fat Duck restaurant can bring new products as well as services like technological
advancements, innovation in menu etc. through the use of advanced technology and innovation
and can serve them to the established market (Lê and et.al., 2016). The main reason behind using
product development as their organizational strategy is that when restaurant will bring new
products then it will be able to attract more and more customers of existing market and this will
eventually increase their profit ratio. Besides this, the amount of risk which prevails in this
strategy is moderate as firm is already aware of market as well as customer needs thus there are
chances that new product might become successful. Fat Duck restaurant needs to use
diversification strategy that would be better for the firm in entering into new market with new
products. By this way it will be able to attrct new consumers that would raise its profitability to
great extent.
LO 2
P3 Sources of finance
Bank loans
This is one of the most widely known as well as used source of finance which is being
used by the small as well as large organizations for ensuring smooth operations of their business.
The Fat Duck restaurant can use this as their source of finance for their long as well as short-term
objectives and goals.
Advantage
The main advantage of bank loan which will be beneficial for Fat Duck restaurant is that
they generally have low rates of interests and thus is cheaper. Besides this, another advantage of

this source of finance is that it is highly flexible (Levesque, Bell and Calhoun, 2017). For
example- when The Fat Duck restaurant will receive the loan from banks then they will not be
bounded by any law addressing how they have to spend their money and how much. This is the
greatest advantage of bank loans which will help Fat Duck to achieve competitive advantage.
Disadvantage
On the other hand, major disadvantage of bank loans is that it is generally becomes
complicated for the organizations especially small businesses to qualify for the loans. Banks
generally analyses the financial information of organization before providing fund or loans
therefore when the organizations does not have sound financial position then the loan is rejected.
Being, a small business, this source of finance will be difficult for fat duck to avail.
Business angels
Business angles are basically the independent individuals as well as entity who mainly
provides the capital for development of the business. The Fat Duck restaurant can seek the help
of business angels for the growth as well as development of their business.
Advantage
The major advantage of this source of the finance is that it has a great funding range
(Levy, 2016). The angel investors mainly invest a great amount of capital in small and start-up
business around £2 million which can help these businesses to conduct most of their operations.
Disadvantage
The major disadvantage of business angel is that it’s generally requires high time as well
as expense to search for the most suitable as well as potent business angels. The restaurant will
have to invest a great time for searching the angles who are highly transparent and who can
invest a great amount. Business angel will help Fat Duck restaurant by providing high capital and
fund for their various purposes like diversification, innovation etc.
Bank overdraft
Bank overdraft is predominately the extension of the credit from lending institution
which is being granted when the account ultimately reaches zero. This is considered as the most
reliable as well as effective source of the funding for small business which helps them to conduct
their operations even when account has no balance.
Advantage

The major advantage of bank overdraft is that it requires no paperwork as well as
formality which are requited in ace of the personal loans. For the small needs of financing, firms
can directly withdraw the required amount directly from account. Another advantage is that it
helps to keep the good track record of small businesses. When the amount is not repaid within
given period then cheque does not bounce and this helps to keep a good record of small
organizations.
Disadvantage
Major disadvantage of Bank overdraft is that it generally as high rates of interest. In
comparison to other sources, bank overdraft cost high interest which might pose problem for The
Fat Duck restaurant (Liang and et.al.,2018). Bank overdraft will allow the restaurant to have a
great track record and will help them to maintain sound financial position. Besides this, it will
help restaurant to conduct their operations smoothly by continuously withdrawing the money for
a period of time even when account reaches zero.
The most effective source of finance which The Fat Duck restaurant can seek for the
growth of their business as well as development is bank loans. The main rationale behind
choosing bank loan is that it will help The Fat Duck to take loans as well as borrow funds at
much lower interest rate. This is one of the biggest advantage of bank loan which will help
restaurant to carry out various operations like diversification, product development etc. Due to
low interest rates, restaurant can easily take the loans and borrow huge fund for its activities.
Besides this, there will be no boundation on The Fat duck restaurant as how to spend their
money. They can easily invest their money as much as they want and where they find suitable
(MacLachlan and et.al., 2017).
Recommendation
Being a small business, The Fat Duck restaurant should analyze various options as well
as opportunities which will help them to develop and grow their business in future and will also
help to achieve the competitive advantage.
Defining brand
Brand plays and important role with each and every organization where big or small and
thus defining it in the most imperative way is highly essential for growth as well as development.
Without defining the brand as well as taking brand message to wider audience, a business cannot
strive to achieve success. The Fat Duck restaurant before making changes in any aspect of its

business should define its brand to the wider audience in most effective way. The restaurant
should align their brand to their core values and should take recreate its brand in the most
influential way which will attract the customers and will help to understand that what the brand
is saying (Albert, 2017).
Increasing quality
Quality is what makes a business. The organizations no matter big or small should
initially analyze the quality of services as well as products which it is offering to the customers
because quality is the prime thing which helps business to survive in cut-throat competition.
Thus, The Fat duck restaurant should continuously strive for improving its quality in term of
products, services, staff, technology etc. This will eventually help them to go beyond the
expectations of customers (Angotti, 2018).
Motivating staff
The use of the best practice for employees as well as worker is generally considered as
one of the most effective strategy which helps small as well as large businesses to gain an edge
over their competitors. The best practices like rewards, appreciation ultimately help to motivate
the staff and their commitment towards work increases. Therefore, the fat duck restaurant should
continuously find ways and practices for motivating and encouraging its staff like through
recognition, rewards etc. This will help them to deliver best services to the customers and
develop great relation with them (Bagheri, and et.al., 2018).
Innovation and creativity is what they need
Having a great congruence with the level of technology as well as monitoring the
innovation is what a business needs for making its organization successful in market. Innovation
has a crucial role to play in overall performance of business and thus enhances it. The Fat duck
restaurant should turn back to their products and should bring required innovation and
technological advancement within them in order to diversify its business in wider geographies
(Daniels, 2017).
LO 3
P4 Business plan
Introduction
The Fat Duck is situated in Bray which is approximately 25 miles away from London.
The restaurant began their operations in 1995. the success ratio of restaurant is more than good

as it comes under one of the five restaurants in UK who has been awarded with 3 stars of
Michelin. The restaurant has the capacity to serve around 100 people with 42 diners and for that
they have one chef per diner. The restaurant developed their menu by experimenting with many
things such as the egg and bacon ice cream. Apart from this to get a meal in this restaurant one
has to make a reservation 2 months prior to the date. The restaurant is operated and owned by the
head chef Heston Blumenthal. At the time of commencement, there were only two people who
managed the operations of the restaurant. At that time, the food served was similar to the style of
French Bistro which included steak and chips etc. Then after some time he tried out new styles of
cooking and using new methods while preparing the food which made the restaurant a successful
venture (Parker, 2017).
Industry Overview
This industry is concerned with the production and sale of food. This industry works as a
network between farmers and businesses who supply the food and provide the materials
according to the demand in the market. Food industry serves people with supplies of food which
is available in multi cuisine and according to the consumption pattern of people. This industry
covers and serves everyone. It deals in variety of sectors such as fruits and vegetables, meats,
seafood, beverages, cereals, dairy and confectionery. Nature of the products and its
characteristics depends on the area in which the restaurant is serving the food. All the factors
such as climate, culture and religion of an area is evaluated. These factors help the restaurant to
evaluate that which type of cuisine will be preferred by the people and what dishes will be
accepted by them. In order to prepare different cuisines different types of ingredients are
required which are manufactured by different countries and through the channel of distribution it
is available at any place. This industry includes many aspects such as agriculture, marketing,
wholesale and distribution, retail, education, research and development, financial services and
processing of food. The size of this industry is approximately over £1 trillion on annual basis
which employs around 16 million people. The worldwide sales of this industry is more than £ 3.
(Angotti, 2018).

Illustration 1: Food industry
(Source: Food & Beverage, 2019)
Executive summary
The mission and vision of the Fat Duck restaurant is to become the reputed market leader
by providing new and innovative products to the customers and working towards the interest of
stakeholders. The major strength of The Fat duck restaurant is their high retention rate while
their main weakness is low investment in R&D and innovation. Thus, the restaurant has the
opportunity to increase their investment in R&D and shift their focus on innovation. The Fat
Duck restaurant mainly segments their customers on the basis of demography and uses price
positioning where the prices are generally kept high because of quality services. This company is
planning for growth for which they are developing their products and planning to serve healthier
food options to their restaurant guests. (Perveen and et.al., 2017).
Mission
Mission of Fat duck restaurant is to become one of the highly reputed as well as suitable
restaurant across the world through providing the new and innovative products as well as
services and thus giving back to the community (Piro, 2016).
Vision
Vision of Fat duck restaurant is to make their presence memorable as well as
comprehensive by continuously making innovation in the products and services and bringing
technology in each and every aspect. To become the market leader and acquire the large market
share by providing high quality services and making contribution towards the environment.
Objectives

 To increase the overall profitability of organization in the upcoming year of 2020.
 To increase the market share by 20% in the forthcoming year 2021.
 To diversify the business by serving healthier food dishes to their restaurant guests.
 To increase the level of quality of products and services in next 2 months.
 To gain an edge over the competitors in next 6 months.
SWOT analysis
SWOT analysis is basically the framework which allows the organizations to analyses
their current position within market and thus design new strategies for gaining competitive
advantage.
Strength
The major strength of Fat Duck restaurant is that they have a great retention ratio of their
employees. Currently the restaurant has more than 42 staff and thus have a great retention rate.
Besides this, another strength is their highly skilled as well as trained staff which provide quality
services to customers (Stein, 2018).
Weaknesses
The major weakness which has dominated the fat duck restaurant is their low investment
in R&D and less scope for innovation. Being a small business, the restaurant lacks behind in
terms of innovation and has not innovated its products to great extent. Another weakness is Fat
duck restaurant is their low revenue and profit ratio. Due to less number of outlets, restaurant
faces the problem of revenue and cash flow.
Opportunities
The major opportunity which is being available to the fat duck restaurant is the increasing
use of social media by people. Fat Duck restaurant can seek the help of various social media sites
for taking their brand message to wider audience. Besides this, the growing awareness of people
for healthy food products is another opportunity available to restaurant. Fat Duck can shift their
focus to healthier meals and drinks in their restaurant for customers (Swan and et.al.,2018).
Threat
The most important threat which might hinder the operations as well as position of Fat
Duck restaurant in market is the growing competition. Its major competitors like Ptarmigan
restaurant, hotel Marriott, hotel Hilton, Oblix have a great presence in market and captures great
market share thus this will give a tough and fierce competition to Fat duck (Tian, 2016).

Segmentation, targeting and positioning
Segmentation
Segmentation is basically the process of dividing larger market into smaller ones to fulfil
need of every segment. Fat duck restaurant mainly segments its customers on the basis of
demography. Fat Duck restaurant mainly focuses on the age group of the people and thus mostly
attracts the youth and people between age of 25 to 40 who are highly technology oriented.
Targeting
Targeting is predominately the process of selecting the major target market where all the
marketing activities will be concentrated. The Fat duck restaurant uses concentrated marketing
where they generally target the niche market. Restaurant basically advertises its products to
specific segment of market.
Positioning
Positioning is primarily the perception of consumers towards the brand or the products.
Fat duck restaurant mainly uses price positioning where the price of the products are generally
kept high due to world-class services.
KPI
KPI stands for key performance indicator which helps the restaurant to measure their
performance. KPI helps the Fat Duck to know that how they can meet the objectives of their
business. It helps the restaurant to meet their expected results by evaluating the ways which can
make progress. By enabling KPI restaurant takes decisions which are smart which helps them to
increase their sales. Each and every department of restaurant will take the help of different
indicator which is suitable to them and measure their targets on the basis of that. Before
implementing KPI they first take research to find out which method will be suitable for them.
KPI helps the restaurant and gives them insight according to the current performance of the
company. There are many types of KPI such as sales metrics, marketing metrics, digital
marketing and social media metrics these are the KPI's which can help the restaurant to achieve
growth in the market by measuring the performance through all the available mediums.
Restaurants need to categorize the indicators on the basis of quantitative and qualitative
indicator. Quantitative indicator is not concerned with interpretations, personal feelings as it is
measured on numerical basis (Wu, 2018). On the other hand, qualitative indicator is affected by

opinion, taste and preferences and personal feelings as it is measured on the value of the product
or service offered. There are many points of measurement such as input, output, mechanism,
activity, control and time. Apart from this there are other measures to monitor the performance
of the business such as dashboards there are many types of dashboards which the restaurant uses
in order to depict the performance of an enterprise. Dashboards helps the restaurant to convert
the analysis of data into insight which helps them to connect with the external services in a faster
and in accurate manner. These factors help the restaurant to gain competitive advantage over
others in the market. It is important that the Fat Duck knows that they are using the right
measures for monitoring their performance because if they are not then this method will incur a
lot of cost for the restaurant without giving them the expected outcome. In order to use the right
method of KPI they first need to align their objectives with their goals and objectives then they
must measure that if or not they are attainable. Restaurant needs to make sure that their team is
working in the same direction and on which they can rely on. If these measures are taken before
implementing KPI then the business will achieve growth in the market (Albert, 2017).
Financial Information
Financial Planning -
Jan Feb March April May June
Cash inflow
Sales 15000 16000 17000 18000 19000 20000
Total cash inflow 15000 16000 17000 18000 19000 20000
cash outflow
rent 2000 2000 2000 2000 2000 2000
marketing expenses 3000 2000 4000 3000 3000 3000
raw material purchase
(Birkin, Clarke and
Clarke, 2017) 4000 4000 4000 4000 4000 4000
utility bills 500 600 500 600 500 600

wages 2500 2500 2500 2500 2500 2500
Total cash outflow 12000 11100 13000 12100 12000 12100
Net cash flow 3000 4900 4000 5900 7000 7900
For the various growth opportunities as well as expansion, nearly 3.2$ will be required by
the restaurant. The fat duck restaurant will follow the product development strategy for its
growth as well as development. As it can be seen from the financial information that sales of the
restaurant has shown a great consistencies in the following months and the trajectory has shown
a great increase in the sales. Besides this, where on one hand net cash flow has increased in the
first two months, the n decreased and finally the cash flow was highly consistent and showed a
great increase. Thus, Sainsbury should use product development in order to grow where they
should develop new products as well as services and should promote in the existing market
which has shown a high increase in sales.
The fat duck restaurant will collect the fund from the short term overdraft. This is
basically the facility which is being provided by the financial institutions for short period of time.
The fat duck restaurant will utilize this facility in order to obtain the short-term credit for short
period of time.
HR requirements
As the restaurant is mainly planning for expanding into new geographies thus there will
be high HR requirements. Firstly, there will be need of more human resources within the
restaurant in order to manage the operations of restaurant. Secondly, the human resources will
require advanced technology in order to accomplish various functions like workforce planning,
recruitment, training etc.
CONCLUSION
It has been summarized that there are various factors as well as basis of the competitive
advantage which helps the organization to achieve an edge over their competitors. Organizations
can achieve the competitive advantage by increasing its quality, incorporating technology in
products etc. Besides this, there are various opportunities which are available to small business
for growth as well as development like technological advancement, providing effective training
to staff and employees etc. In order to evaluate various growth option which will enable them to

grow their business, small businesses mainly use Ansoff matrix which provide various strategies
to them among which they can select the best one which will help to enlarge customer base.
Besides this, there are various sources of the finance which is available to small businesses like
bank loans, overdraft etc. which helps them to conduct their operations smoothly and effectively.
For the effective decision-making as well as for devising strategies for future growth,
organizations seek the help of business plan which helps them to evaluate their current position
in market.

REFERENCES
Books & Journals
Albert, V., 2017. From child abuse to permanency planning: Child welfare services pathways
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