Planning for Growth: Factors, Strategies, and Funding Sources for Mia & Ben

This document discusses the factors that evaluate growth opportunities for Mia & Ben, evaluates growth opportunities through Ansoff's growth vector matrix, and explains the important sources of funding for the organization. It also includes a strategic business plan for Mia & Ben and evaluates the options for success and drawbacks.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1: Describe the factors that evaluate growth opportunities and justify them with respect to
Mia and Ben................................................................................................................................1
P2: Evaluate opportunities for future growth of Mia & Ben through Ansoff's growth vector
matrix..........................................................................................................................................3
TASK2.............................................................................................................................................6
P3.Explain important sources of funding that are available for organisation including their
advantages and disadvantages.....................................................................................................6
TASK3.............................................................................................................................................8
P4: Develop a strategic business plan for Mia & Ben for growth opportunities of business.....8
TASK4...........................................................................................................................................11
P5: Evaluate the options for success of respective business with suitable significance and
drawbacks..................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is considered as the marketing function that helps in defining goals and
objectives, creating plans and strategies for business towards achievement of set goals, designing
schedules, delegating tasks authority and responsibilities for application of duties and jobs
(Defining Planning, 2020). It is an important element of business entities that plays important
role in deciding what to do, how to do, when to do it and who will do it.
Mia & Ben is a small scale food company that produce fresh baby foods purees with high
pressure processing (HPP) technology. It is founded in 2016 with its headquarter in London,
Great Britain and deals in organic, plant-based pouches that are made by fruits and vegetables.
In this report factors that help in identifying growth opportunities for Mia & Ben are
discussed. Further, Ansoff's growth vector matrix is used to evaluate growth opportunities for
business, identify financial sources with considering benefits and drawbacks. In addition
business plan and succession options are explained in context of Mia & Ben with suitable
benefits and advantages.
TASK1
P1: Describe the factors that evaluate growth opportunities and justify them with respect to Mia
and Ben.
Mia & Ben is small business enterprise that offer organic food products made with
traditional & cultural ways with considering of fresh fruits & vegetables in production
and making of items.
For identifying opportunities for growth of respective organisation pestle analysis is used.
It helps in providing factors that has direct impact on company's performance and provide ways
to explore opportunities and reducing threats so as to ensure future expansion of business .
Pestle Analysis:- It is associated with external factors that influence a business and helps
in exploring opportunities and threat that impacts future sustainability of firm. In terms of
respective firm these factors are considered as follows:
Political: It is related with elements such as- government rules and regulations, political
stability of nation, rates of tax etc. (Friedmann, 2020). that has an impact on position of
respective firm and future expansion of business. Government policies of allowing local
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organisations to enter in several areas of UK, tax relations for local enterprises from 28-30%
that are in favour of Mia & Ben and creates opportunities for growth of business.
Economical: This factor is consists components like economic growth rate of country,
recession and inflation rates that influence expansion of business. UK faced huge recession that
affected economic growth of nation thus, through offering effective quality of goods at
favourable prices respective organisation can gain positive impact of this factor of pestle
analysis. This helps in formulating strategies for growth and expansion of business in parent
country.
Social: It is also another important factors which includes elements such as- beliefs and
values of people, geographical & regional differences of nation, buying habits of customers, and
some other that affects a business in terms of exploring and expanding business. UK's people are
more quality & health conscious and Mia & Ben offers organic and healthy products that leads to
make healthy food habits in children. Thus, social factor of pestle analysis has positive impact on
respective business that leads to opportunities to expand its business in different areas of UK.
Technological: It consists as components such as- technological innovation and
advancements, use of robotics etc. that affects future growth of a business. Customers in UK are
more technology driven and wants reliable & convenient services (Perera, 2017). Mia & Ben
uses digital technology in its production and manufacturing and offering online services. Thus,
this creates opportunities for long-term sustainability of respective business.
Legal: It is related with legal obligations and legislation policies of a country, consumer
safety laws, labour laws, health & safety laws that has an impact on business and creates whether
opportunities or threats for future growth. Govt. of United Kingdom is very strict about
consumer interest and labour safety laws that creates barriers for respective organisation. Thus,
in terms of dealing with factor Mia & Ben should focus on considering these laws in its business
policies.
Environmental: Last and final element of pestle analysis is related to climate and nature
policies, environmental protection laws of country that impacts business in may be positive or
negative ways. UK's government is more concerned and strict about environmental laws and Mia
& Ben uses organic products thus, it has positive impact on firm's position (Shtal and et. al.,
2018). Further respective organisation should focus on use of renewable sources of energy is
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order to create growth opportunities for future of firm and reducing threats that generates
obstacles for business.
From above analysis of external factors it is observed that Mia & Ben has several
opportunities in order to expand its business by considering environmental protection laws and
labour safety laws in its policies and legislation. This will helps in supporting future growth
options for business and helps in generating profit and goodwill of firm at broader platform.
Porter’s generic model:- It is an effective approach to analyse and explore growth opportunities
for business and minimise the risk from threats. This model helps in ensure sustainability of
business as well as future growth. As per this method there are three major strategies explained
in context of respective organisation:
Cost leadership: It is related to lower costs of goods and products that has prominent
impact on rising customer base and enhancing markets share of business. In context of respective
organisation this beneficial strategy in case of introducing of new products so as to make sales
volumes.
Differentiation: Another strategy as per porter’s generic analysis in making goods and
services different from competitors in order to raise market share and profit. In terms of
respective company it helps in setting higher prices of unique products for & attaining higher
profits.
Focus: This is based on concentration whether to chose cost leadership or to chose
differentiation business strategy that helps in obtaining business objectives in effective manner
with including efficiency.
P2: Evaluate opportunities for future growth of Mia & Ben through Ansoff's growth vector
matrix.
Ansoff's growth vector matrix:- It is a strategic tool that helps in providing outline for
business in order to drive actions for sustainability and future growth of business. In terms of
identifying growth opportunities for respective organisation significant factors of this model are
considered as follows:
Market penetration:- It is used for marketing and promoting of goods and products
within existing industry at a small and niche market (Islam and Mamun, 2017). This strategy of
vector matrix is used through three ways such as- increasing promotional efforts, acquiring
competitors strategies within same industry and minimising cost and prices of products in order
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to get customer attention. In terms of respective business by adopting this strategy can have
following benefits and drawbacks:
Significance:
 It provides fast growth of firm with minimum efforts and investment.
 Another benefit of market penetration it will save the cost of business.
 It obligates competitors of respective firm to choose alternative strategies.
Disadvantages:
 It is not beneficial in case of expansion of business. Thus, it doesn't give
appropriate results for respective firm.
 Another drawback of market penetration is it reduces prices in industry that leads
to adopting lower pricing by competitors.
Product development:- One of the significant strategy to expand business and ensures
sustainability of business. It is used when an organisation wants to introduce a new, innovative
product within existing industry this leads to wider the product range of business and gain more
customers and profits (Martins, 2020). In context of respective organisation by using product
development strategy has some positive and negative impacts defined as under:
Significance:
 Through development of new products in company's portfolio helps in attracting
other business professions for collaborations. Thus, using this strategy will be
beneficial for Mia & Ben in rising professional network.
 By adopting this strategy makes enable for respective organisation to create
culture of innovation within organisation.
 It helps in attracting and influencing customers and rising profit through
satisfying needs and expectations of customers.
Disadvantages:
 The major disadvantage of product development strategy in context of respective
organisation is it maximise the cost of business includes in market research,
production of new goods, promotion & marketing activities etc.
 Another drawback of adopting this tool by respective enterprise is formulating
unrealistic expectations in minds of customers that impacts brand image of
business.
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 It needed huge money, times and efforts of business for developing fresh products
and knowing the reactions of customers towards these products this leads to risk
of product failing. It is also an disadvantage for respective organisation.
Market development:- It is suitable strategy when an organisation thinking to promote
existing products into new and broader market. It leads to make business impressive and
attracting for customers and human resources of organisation (Cleberg, 2019). This is
significant tool to attain profit and maximise the goodwill of company. In context of respective
organisation pros and cons of using market development are as follows:
Significance:
 The major advantage of this strategy is it helps in rising customer base from
different areas of nation through attracting and satisfying expectations of
customers.
 Through rising customers base it helps in maximising the sale and profits of
respective business.
 Use of market development also helps in enhancing the goodwill of Mia & Ben
and increase market shares.
Disadvantages:
 By entering into new markets creates risk for respective organisation in terms of
unsure of its acceptance by customers.
 Another disadvantage of using this strategy for respective organisation is it is not
easy to compete existing competitors that are experienced in industry.
 It also maximise the cost of business included in various aspects such as- invest
on market trends, fashion, customer preferences etc. thus, it also represent as a
demerit for respective organisation in terms of using this strategy.
Diversification:- It is also an important strategy of Ansoff's growth vector matrix used
when an organisation think to enter into new market with innovative products. It helps in winder
the business and helps in ensure long terms sustainability of business (Khajezadeh and et. al.,
2019). In context of respective organisation merits and demerits of adopting diversification
strategy are considered as follows:
Significance:
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 It is significant strategy for respective business in order to increase market shares
of business and create huge goodwill and brand reputation in industry.
 Another benefit of this strategy is to it helps in building effective position in
industry that makes it difficult for competitors to beat it.
 Making money is also a benefit for respective organisation for using this strategy
which shows increment in profits and market share of business.
Disadvantages:
 It increases cost of business required for research and development of market and
goods.
 Through focusing on different markets it leads to losing focus over separate
market.
Thus, market development is effective strategy fore respective organisation as per above
discussion. This is less risky and time, effort savvy strategy.
TASK2
P3.Explain important sources of funding that are available for organisation including their
advantages and disadvantages
Funding is defined as act of offering resources, basically in money form or in other
values such as for a project, time or effort, business or any other public or private institutions.
Sources of funding usually include venture capital, credit, savings, donations and so on.
Allocation of funds are used for short term or long term purpose (Schawel and Billing, 2018). In
evaluation of this, many sources of funding are discussed below:
Importance of funding are:
 In business funds are required for conducting prominent and effective research to analyse
market requirement and needs for running organisation effectively and efficiently.
 Funding is useful for establishing own business and also for recruiting and hiring
candidates for attracting lot of buyers.
Sources of funding:
Internal sources of fund: In organisation when cash flow is generated from sources
which are available in firm itself. Some of internal sources are discussed below with benefits and
drawbacks:
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 Retained profit: When business makes a profit, manager of company decides to leave
some or all part of money in business with context of reinvesting money to expand
company (Financing public transport services from public funds, 2016). This approach is
perfectly sensible, because part of money which is kept can be used for future used and
distribute profit.
Benefits: Retained profits are beneficial for business because these profits does not need
to be repaid. In addition, when earnings are retained, stock value and stockholders equity
increases as it is considered in corporate balance sheet.
Drawbacks: For making profits it takes huge time so this leads a drawback to business as
it missed good opportunities for future growth. When profit are retained rather than distributed,
so this leads to less attractive to stock buyers. Sale of assets: In business when equipments which are not in use can be sold for raising
working capital. It is good idea for business entity, as regularly screening of fixed assets
are undertaken and assets are finds which becomes obsolete (Detzer and et. al., 2017).
These assets are sold as soon as possible because if any such events happen this leads to
less in value of assets.
Benefits: Biggest benefit by sale of assets in business is quick assess of money. When
everything is finalised transfer of money is quickly assess. So by this company can decide to
purchase new assets. When firm screen any type of obsolescence in equipment so by decision of
selling them is leads to increase in working capital of business.
Drawbacks: Usually selling of assets leads to disappointment in results. When machinery
become obsolescence from many years so this leads to decrease in price from expected price. If
company wants to sell equipment quickly for covering cash flow emergency so business may
loose money by accepting deal.
External sources of fund: When organisation generated fund from outside factors like
bank loan, funds from friends and relatives and so on. Some of external sources are discussed
below: Loan from friends and relatives: When funds are undertaken as important loan
agreement in which company get money from friends, relatives for being undertaken
money from business owner (Fourez and Tichelaer, Mastercard International Inc, 2018).
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Benefits: When business get money from friends and family it becomes flexible options
to pay money at low interest rates. In addition, when funds get from personal acquaintances it
leads to trust relationship between lender and owner.
Drawbacks: If business is not successful this leads to lost of money. Furthermore, there is
a situation of conflicts between family members due to misunderstanding. Bank loan: Money which are borrowed for specific time period and there is a agreement
for repayment on schedule. The repayment of amount is depends on size and duration of
loan considering interest rate.
Benefits: Company have advantage of effectively guaranteed for money for specific time
period except it leads to breach of contract. In addition, interest rates that are offered by banks
are fixed for long period so this become easily for forecasting interest payments .
Drawbacks: Loan provided by bank is represent as security which is important by bank
over assets of company. Moreover, there is lack of flexibility for interest and excess finance is
also paid by business.
From above discussion, it is analyse as bank loan is effective for Mia & Ben, as this company is
leads in providing organic food for children. So by taking loan it results in security of business
and developing of company by getting loan at low interests rates.
TASK3
P4: Develop a strategic business plan for Mia & Ben for growth opportunities of business.
Business Plan
Executive Summary:- Mia & Ben is a baby food manufacturer of great Britain with 18
number of employees and wants to develop its market for future growth of business. Business
plan of it are considered below:
Business Details
 Vision: Mia & Ben's vision is to become largest baby food provider in nation.
This helps in deciding what the business wants to do.
 Mission: The mission of respective business is to develop healthy food habits
among children. Mission represents functions and activities of business that leads
to get attention of customers.
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 Objective: Main purpose and objective of Mia & Ben is to grab 15% market share
of business with limited period of 2 year so as to enhance profit by 8-10%.
objective conveys the message of company and helps in securing stable position
of business within the industry.
Market & Industry Analysis: The food market of UK is already wide that creates huge
opportunities for expanding business in food & retail sector. In order to develop healthy habits
between children it needs food producers who using organic ingredients.
Competitors: Due to broad market of food in UK increases the competition day by day.
Direct competitors of respective organisation are Ella's kitchen, Sprout, Miyoko's etc. Mia & Ben
offers organic food this shows opportunity for long term sustainability while it has very less no.
of employees which reflects weakness of business ( McKeever, 2016).
Customer values: According to the objective of business the target customers of Mia &
Ben are children from the age of 6 moths to 12 years. It is very important for respective
organisation to consider good quality for its goods and products.
Marketing Strategies
 Product: Mia & Ben's product strategy is to focus on different flavours to
increase the taste including apple & berry, banana, mango, pineapple etc.
 Price: In its pricing strategy respective business should focus on competitive &
lower pricing for attracting customers.
 Place: As per physical distribution respective business should focus on display of
its food at offline and online stores so as to assess people.
 Promotion: In terms of respective business should focus on social media
platforms and personal selling so as to make effective promotion of its products.
Operation plan
Production: For manufacturing of goods respective firm needs minimum 1 hour to
produce 45 units. Fore effective and efficiently manufacturing of goods requires raw materials,
human resources, equipments etc.
Suppliers: The suppliers of respective organisation are baby food ingredients provides
that are huge in UK it is important for respective organisation to maintain better relationship with
its suppliers. It is an important part for effective implementation of plan.
Resources
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Staffing: For exploring business in different areas of UK it is important for respective
organisation to focus on hiring and giving training top new employees (Watson, McGowan and
Cunningham, 2018). In order to make effective organisation of employees it needs to provides
suitable training and development for personnel of organisation.
Equipments: For accomplishment of above objective of Mia & Ben requires backing,
melting, blender, girder, mixture for manufacturing of goods and products.
Finance
Sources of finance: In order to fulfil business plan Mia & Ben needed 40% of company's
own resources like retain earnings, sale of assets and 60% finance from external sources such as-
bank loan, public finance.
Financial projection:
Monitoring & controlling: In order to make effective implementation of plan it is important for
respective organisation to monitor the plan and address necessary changes. At last comparing the
outcomes with estimated plan is essential for successful application of project. This leads to
effectiveness and efficiency in implementation of business plan (Galai, Hillel and Wiener,
2016).
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TASK4
P5: Evaluate the options for success of respective business with suitable significance and
drawbacks.
Following are the ways and succession options for Mia & Ben with their suitability of
business:
Management buy-in: It is an significant option for success of business. It is the
corporate action within which manager & its teams are undertakes ownership for stake of
external side of business. This can be replaced by current management of business. Under firm
experiences several issues that undervalued prominent areas of business (Mochella and Smith,
2020). Benefits and disadvantage of it in context of respective business are considered as
follows:
Significance: The major benefit of this option is purchasers get undervalued and
effectual value should be unlocked in order to sale them later at higher prices.
Drawback: New management team fails to develop growth opportunities for business
and creates chances to change overall management of organisation. This leads to chances for
unsuccessful of business.
Management by-out: Another important succession option for respective organisation is
associated with investment transactions in which parties exercise effective control over business
and it helps in develop outright purchase through considering effective and important control
over equity of firm. This is significant approach in which transactions takes place and develop a
situation where customers are undervalued, underperforming with potential of rising the
operation and finance (Jayantilal, Jorge and Palacios, 2016).
Significance: It is more effective and efficient method in respect of several areas that
provides effective goods and services regarding duplication of organisation. It also helps in
reducing and eliminating operational expenses that leads to achievement of profit.
Drawback: This action contributes towards rising of debt of business by borrowing
money for purchase of new company. It also affects over all debt structure of business towards
increasing payments of loans.
Floating the shares: This considered as the process that is helpful for bushiness
regarding private and participially developed by public sector. It helps in issuing shares of
business within market that helps in obtaining external finance fro accomplishment of projects or
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expansion of business. It is an important succession option for respective organisation (Atwood,
2020).
Significance: it is significant for business in terms of venture capitalists and permits
them to evaluate their investment in effective and prominent ways.
Drawback: Market fluctuations are high in terms of market status that creates barriers
towards business exposure.
Thus, from above discussion, it is observed that all above succession options are helpful
for Mia & Ben in terms of effective measures according to the situations.
CONCLUSION
From above report it is analysed that external factors has prominent impact on business in
terms of exploring growth opportunities and vector growth matrix plays important role in
identifying options for future expansion per the matrix market development is effective strategy
for enhancing business and expand it in several markets with minimum risk and investment.
Difference internal and external sources for business are considered so as to implement strategies
effectively. Effective business plan is also important to make before application of any strategy
so as to gain objectives of business in suitable ways. At last succession options are prominent
aspect of business that helps in accomplishment of business goals.
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