Planning For Growth

This report examines the growth opportunities for Clif Bar & Company, an American firm specializing in organic food and drinks. It analyzes key considerations for evaluating growth opportunities, applies Ansoff's growth vector matrix, discusses potential sources of funding, and designs a business plan for the company's expansion. The report also explores exit or succession options for small businesses, highlighting the benefits and drawbacks of each option.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth opportunities.......................................................1
P2 Opportunities for growth applying Ansoff’s growth vector matrix......................................3
TASK 2............................................................................................................................................4
P3 The potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................4
TASK 3............................................................................................................................................7
P4 Designing business plan for growth of organisation..............................................................7
TASK 4............................................................................................................................................9
P5 Exit or succession options for a small business explaining the benefits and drawbacks of
each option..................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In current scenario, planning is consider as an important activity through which firm set
their entire task in an systematic way. With the help of effective planning firm easily make their
process smooth and appropriate as well. Along with this, adoption of new and innovative policies
and procedures also contribute in capturing larger market share form its rivals. It refer to
systematic ways through which company attain set goals and objectives. In this context, there are
number of benefits of planning which help in formulating business activities and it directly
impact on its growth level as well (Barbour and Deakin, 2012). Current report is based on Clif
Bar & Company, is an American firm which provide organic food and drinks to number of
customers. In this, the main aim of this company is to enhance their growth by using digital
technologies. This project discussed about growth opportunities to business organization is
mentioned. Application of Ansoff's growth matrix is also discussed in this project which may
helps in expanding business activities in market place. In addition of this, advantage and
disadvantage of sources of funding is also summarised. This will aid in accomplishing desirable
goals and objectives.
TASK 1
P1 Key considerations for evaluating growth opportunities
Clif Bar & Company is an American firm as they provide energy drinks to customers in
order to attain their satisfaction level. Along with this, the main aim of company is to enhance
their profitability level by using new and innovative products. For this, firm effectively evaluate
customers needs and wants to manufacture quality products and services. With the help of this
company capture larger market share form its rivals and also get competitive edge. Along with
this, Clif Bar & Company make quality products and services to invite large number of
customers which may rise profitability level at market place as compare to its rivals. In addition
of this, effective planning for growth will provide support to company. By this, they implement
digital technologies within their operational activities for attaining customers attention towards
its products and services (Brinckmann, Grichnik and Kapsa, 2010). This will directly contribute
in capturing larger market share from its rivals. Proper planning for growth is more important for
company which consider various activities such as source of funding, technologies, current
market trends and many more. All this helps in providing opportunities to firm in which they
make as well as develop policies and procedures. By this workers get motivated and also guide
1

them that how to implement new products development for attaining higher success at market
place (Burton, 2010). Therefore, they easily execute their business activities and cater customers
demand in an appropriate frame. In this context there are some growth opportunities in market
which help Clif Bar & Company to enhance productivity level at market place:
 Competitive edge: It is important for company to make an effective plan to implement
new and innovative technologies within their business activities with the purpose of
attaining competitive advantage at market place. By using advance technologies, Clif Bar
& Company enhance their quality of the products at market place. In this, every
department having opportunities to use new and innovative marketing tools such as
Facebook, Social media and many more to interact with their customers to influence them
to buy company products and services. On the other side another department such as
operational, human resource all these may helps in attaining set goals and objectives in an
appropriate way. This will contribute in attaining competitive advantage from its
competitors.
 Innovative products and services: In toady's time, implementation of concept of
digitalisation helps in enhancing relationship with workers and customers in order to
established positive image at market place. With the help of this company produce
quality products and services according customers taste and preferences (Chapin, 2012).
Along with this creation of innovative ideas and ways to serve their quality services to
target customers which may directly contribute in enhancing profitability level of the
company. As Clif Bar & Company use online platform to sale their quality drinks which
directly contribute in enhancing opportunities to attaining growth level at marketplace.
 Collaboration: It is one of the important element in which number of growth
opportunities are there which help company easily enhance their profitability level. It
includes acquisition strategic alliance, joint ventures, merger and many more. In this
company establish their competitive place at market place. For this, company use new
and innovative technology within their activities to establishing set goals and objectives
in an appropriate time frame.
All these are more appropriate consideration which may provide support to company to
enhance their profitability level at market (Christofakis and Papadaskalopoulos, 2011). By
2

implementing all the key consideration, Clif Bar & Company can develop their market share and
productivity as well.
P2 Opportunities for growth applying Ansoff’s growth vector matrix
Number of opportunities are there in market place of business organization as they easily
grab chances to attain better success. Along with this, they have various opportunities to develop
their products in market. In this context, Ansoff's growth matrix is also play big role in
determining various growth opportunities to company to enhance their performance level by
establishing their products in market with the purpose of attaining success (Eddleston And et. al.,
2013). In this, there are four areas which includes in matrix are as market penetration, product
development, market development and diversification. All these are directly affect the business
activities and growth level as well. With the help of this company easily attain set goals and
objectives in appropriate time frame. As, all these are as follows:
Market penetration: It is one of the important strategy in which company offer their
existing product in existing market for attaining competitive growth. Along with this, company
have to focus on enhancing their customers base and market share as well. For this, they use
effective marketing strategics for enhancing their productivity level at market place. In context of
Clif Bar & Company, they offer their energy drinks to customers according to their needs and
wants. This will enhance their market share and profitability level also. Along with this, the main
purpose of using this strategy is to offer different energy drinks in existing market as it helps in
inviting large number of customers. In addition of this, using affordable pricing strategy may
helps in capturing larger marker share and satisfy customers as well.
Product development: For developing existing products in market, it is one of the
effective strategy in which company easily expand their operations and art the same time also
capture customers base. Along with this, firm also use new and innovative technologies within
entire business activities to make quality products which may leads in making better relation
with their customers. In context of Clif Bar & Company, they should understand customers
needs and wants in order to produce as well as provide accordingly. By this company capture
larger market share form its rivals and at the same time also take competitive place in market
(Grover, Bokalo and Greenway, 2014).
Market development: This strategy refer to new market in which company get various
opportunities to develop their operational activities by establishing their positive brand image.
3

With the help of this Clif Bar & Company can capture larger market share form its rivals. Along
with this firm provide their products in new market with the aim of gaining positive response of
customers. For this, firm tries to use new and advanced technologies within their activities at the
time of entering in nee market (Hough and et. al., 2010). With the help of this, firm invite as well
as attract larger number of customers towards its products and services. It define various ways in
which companies tries to compete their competitors by delivering quality products. As there ate
some effective points which should be focus by firm to capture market share:
 Clif Bar & Company should adopt policies in which they offer discounts and affordable
price of the customers.
 Along with this, set nee channel of distribution is also helps in improving strong
customers base.
 Company should divide market as per demographic and geographic segment which may
leads in satisfy customers needs and wants effectively.
Diversification: It is also an important strategy through which company attain
competitive advantage in market place. By adopting this strategy Clif Bar & Company can
improve their product quality and also provide diversified drinks to their customers with the
purpose of attaining better satisfaction level. Along with this, they also determine the diversified
tools and techniques within their process of production. As it helps in improving profitability
level of the company at market place. For attaining the same, firm should set their product price
appropriate and affordable as customers easily consume its services.
TASK 2
P3 The potential sources of funding available to businesses and discuss benefits and drawbacks
of each source
Clif Bar and Company is a small entity that provides customers with various kind of
drinks which they can get from different stores or order online through their websites. For
manufacturing goods they have incorporated latest tools and technologies in order to increase
their production. Further, these are used for production and marketing process as this will assist
them in reaching out to maximum number of people. Along with this, financial conditions are
also considered as for manufacturing goods and implementing any kind of innovative ideas it is
essential that company have adequate amount of funds (Eddleston And et. al., 2013). This will
assist them in improving their brand image in front of customers as a result it will attract a large
4

number of consumers towards their organisation. Apart form this, contacting with different kinds
of Stakeholders and investors company will be able to generate more money which they can
implement in future proceedings. Other than this, there are large number of sources from which
firm can get appropriate funds such financial institutions, crowd funding, venture finance and
many more (Grover, Bokalo and Greenway, 2014). Henceforth, to become popular and stand in
strong position it is essential that Clif Bar and Company, have ample amount of funds that can
provide them maximum benefits. Although all these sources provides some kind of advantages
but they along with benefits there are some drawbacks that hamper the entire business
operations. Therefore, it is essential that manager of organisation evaluate and identify all the
aspects that are available in the market area. Further below, limitations along with the
disadvantages are explained below so as to understand it in a better manner:
Bank Loan: This one of the financial institution that lend money to an individual and companies
or any kind of organisation. They have different interest rates according to the kind of loans for
which customers or firms are taking. A Loan incorporates subject assets which are for a certain
period of time. Further, it is stated as a principle through which they lend a set amount of money
to respective companies. In context with, Clif Bar and Company they are taking loan from these
financial institutions for expanding their business in large scale as a result it is helping them in
maximum benefits in speculated time frame. Further its advantage and disadvantages are given
below:
Advantages: Taking loan provides great advantage as it provides a free hand in
implementing any kind of activities. So, some of the advantage is mentioned below:
 This is considered as one of the basic institutions and source from where company can
take loans for their business operation in an effective manner.
 They provide loans to small firms for expanding their business but in terms of simple
interest. For taking out loan a simple procedure is carried out in which a minimum documentation
is carried out and just need a guarantee (Hough and et. al., 2010).
Disadvantage: Although it is a quite easy process but it have some limitations that
creates problem performing the activity thus, some of them are given below:
5

 Certain banks have some strict rule and that are sometimes difficult for clients to
understand because of which they have to mortgage their properties in return. If person
doesn't follow these rules than they may face penalties and legal actions (Keough, 2015).
 If interests are not paid on time by the client than they must have to pay high interest
which sometimes can create problem in doing the same.
Crowd Funding: In context with Clif Bar and Company, they are raising funds from this
source for operating their business operations. In this, they primarily take funds form different
people who are renowned personality in the country. This work as a marketing tool and focus on
individuals for generating more and more money in speculated period of time. Further,
limitations and drawbacks are explained for getting a better outcomes.
Advantages: The advantages are that are providing them maximum benefits are
explained below:
 This helps company in identifying and evaluating reaction of people or public towards a
particular firm.
 Through this process most of the company grab attention of media as it work as a source
of marketing for them.
 They don't have any kind of strict rules and regulations that are to be followed so it
provides benefit in return.
Disadvantages: Some of the limitations are given below:
 The entire process of crowd funding is time consuming as it includes a large number of
customers and public.
 If the funds are higher than it might create problem in managing entire money and
repaying can be an issue (Li, Mobin and Keyser, 2016).
 Taking permission can be sometimes take a long procedure because of which
Stakeholders can loose their interest in future.
TASK 3
P4 Designing business plan for growth of organisation
Business plan is one of the important procedures for every company to execute entire
activities to attain set goals and objectives in an appropriate way. Along with this, it also make
6

an effective aspects through which Clif Bar & Company make their process smooth and effective
as well. With the helps of this company enhance their productivity level at market place and at
the same time also capture customers attention towards its products and services (Mitchelmore
and Rowley, 2013). As there are some steps which consider by company at the time of preparing
business plan are as follows:
Overview of the company: Cliff Bar & Company manufactures organic drinks and
foods. In this, firm's CLIF Bar and Flagship goods was developed through Lisa Thomas and
Gary Erickson. This organisation is specialist in providing better quality of food as well as drink
products on the basis of needs of consumers.
Mission: The mission of the company is to cover a large share of UK market and to
identify creative ways through which requirements of target segment is fulfilled.
Objectives:
 To achieve an expansion of market share by 5% with the implementation of digital
practices within one year of time.
 To develop and launch a new product “Fruits Chocolate” to increase sales volume by
10% in coming 6 Months.
Internal analysis: It is important aspect which helps in determining actual performance
of the company (Moseley, 2013). With the help of this, company determine internal strength and
weakness in order to determine growth opportunities by implementing new and innovative
technologies. With the help of this company enhance their productivity level at market place and
at the same time also capture their customers attention:
Strength Opportunities
 One of the main strength of this
company is their number of offering in
this segment. This feature is helpful in
covering distinct customers.
 As company also a market leader in
which they make record of entire
nutrition in market place.
 Clif Bar & Company having large
distribution channel in which they serve
 Market expansion can be considered a
primary opportunity for this
organisation.
 Clif Bar and Company can launch new
products such as “Fruit Chocolate” to
capture additional market share.
 Company improve their quality
products and services through which
they can invite larger number of
7

their products and services to its
customers.
 Effective implementation of digital
technology also helps in expanding
business activities.
customers.
 Clif Bar & Company also use online
platform in which they sale their
products and services in order to
enhance profitability level.
Target market: It is one of the important aspect which define various segmentation of
market in which they enhance their growth level at market place. Clif Bar & Company use online
platform to serve their energy drinks to customers as per affordable cost (Pallagst, 2010). The
target segment which has been chosen to distribute this latest developed product such as “Fruits
Chocolate” will be health conscious segment ranging between 25-50 years.
Financial information: It is one of the important step of entire business plan because it
define providence of financial terms towards the company. As Clif Bar & Company operate their
business at small scale and they also having good financial position at market place. The budget
forecasted which has been formed for this organisation are presented below:
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Production cost 5000 - -
Promotion cost 1000 700 500
Advertisements cost 500 550 600
Technology cost 1500 1700 1900
Catalogues 250 200 150
Total 8250 3150 315
It has been identified from the above forecasted budget that this organisation needs
higher emphasis on the promotional efforts of this organisation so that it leads to higher market
8

recognition and reach. There is a major requirement to invest more funds in the catalogue
formation and distribution so that right customers are attracted towards business.
Cash Flow Statement
Interpretation: It can be interpreted from the above presented cash flow statement that
this organisation is possessed with sufficient liquid resources. The company carries an ability to
pay off their debts with their cash. However this business have experienced a net increase in cash
by £38,149 which is exceptional considering scale of operations.
Evaluation: It is main step in which manager of the company evaluate all the activities
within the business with the purpose of attaining favourable results in effective way. The
9

evaluation of new developed product will be carried out through customer's review and sales
achieved. The influence of digital technology in operations will be helpful in determining its
worth for the enterprise.
TASK 4
P5 Exit or succession options for a small business explaining the benefits and drawbacks of each
option
Exit and succession are two options which mainly decides on the performance or growth
of the company. Thus as a result manager have to monitor the performance of company and
needs to tell to the company board of directors so that they can take crucial and relevant
decisions regarding the continuation or dissolution of the firm. There is an example that there is a
comp any which runs for five years and if there are no chances of earning of profits then manage
need to dissolve that business (Valler, Phelps and Wood, 2012). If the business can easily
recover the fixed costs and can earn more revenues the they can take decision that businesses can
be continued. Various methods are there through which manager of Clif Bar & Company can
easily dissolve and can continue that business.
Different Ways: These are various techniques used by management uses to make system
function are stated below:
Liquidation: If Clif Bar & Company finds that it has faced huge losses then it can take
decision to wind that business as there no chances that company can earn more revenues in the
future. This impacts on management as they require to manage funds in proper manner.
Advantages: After Liquidation, there is a situation for director that they need not to be
involved in any legal action as they do not have given any guarantee of paying the debts.
Disadvantages: Director of firm has to sold existing assets as they had to pay to creditors
in dividend form.
Sell the business in open market: It is important for business organization to set their
activities in order to offer their quality products and services at market place. With the help of
this company manager start their new project with the purpose of establishing their business at
market place. In addition of this, selling business define all the liabilities and assets which may
contribute in inviting large number of customers towards its products and services.
Advantage: By this overall image and goodwill of the company may helps in inviting
larger number of new customers towards its products and services.
10

Use the Internet: This sort of element carries ample number of opportunities for business
organisation when it comes to deliver products and services or information to customers. With
the help of this, Clif Bar and Company can grab good and positive advantages at marketplace
with taking help of different tools like internet. This factor is filled with many advancements like
this aid in promoting products and services. On the other hand, it also aid in different areas like
delivering products and services to customers. Apart from this, promotion of products with the
help of internet like on Facebook, YouTube, official website of Clif Bar and Company and
company may aid in pulling attention of consumers high in numbers. It is vital for business
organisation like Clif Bar and Company to take under in use of internet and through this, benefits
can be gained in an effective manner. In today's world, mostly youngsters and other people
mostly uses mobile phones and carries dynamic nature like in demand, requirements and many
more. It is required for business people like CEO of Clif Bar and Company to take under in use
of internet in an appropriate way so that benefits can be gained right on time.
Advantages of Succession of business:
It is being analysed that employees of Clif Bar and Company gets the greatest preferred
standpoint as they feel protected and secure about their employability which specifically helps in
expanding inspiration and resolve of workers (Wu, 2015). This will likewise help in diminishing
representatives turnover rates of company.
Disadvantages of succession of business:
Apart from this, Clif Bar and Company confronting misfortunes choose to proceed with
the business with an expectation of gaining benefits in up and coming years, at that point it might
expands the liabilities or cost of organizations which diminish the altruism or notoriety of
organization also.
CONCLUSION
From the above mentioned study it can be concluded that, planning is one of the
important activity for every business organization to attain growth at market place. Without
planning no one can execute their activities in effective manner. As various advantages of
planning is also there which contribute in developing overall brand image of the company. For
capturing larger market share and customers attention, firm use various promotional tools
through which they easily make their strong customers base. This will directly contribute in
enhancing overall profitability level.
11

REFERENCES
Books and journals
Barbour, E. and Deakin, E.A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Brinckmann, J., Grichnik, D. and Kapsa, D., 2010. Should entrepreneurs plan or just storm the
castle? A meta-analysis on contextual factors impacting the business planning–
performance relationship in small firms. Journal of Business Venturing. 25(1). pp.24-
40.
Burton, P., 2010. Growing pains: The challenges of planning for growth in South East
Queensland. Australian Planner. 47(3). pp.118-125.
Chapin, T.S., 2012. Introduction: from growth controls, to comprehensive planning, to smart
growth: planning's emerging fourth wave. Journal of the American Planning
Association. 78(1). pp.5-15.
Christofakis, M. and Papadaskalopoulos, A., 2011. The Growth Poles Strategy in regional
planning: The recent experience of Greece. Theoretical and Empirical Researches in
Urban Management. 6(2). pp.5-20.
Eddleston, K.A. And et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Grover, B.E., Bokalo, M. and Greenway, K.J., 2014. White spruce understory protection: From
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Hough, P. and et. al., 2010. The worker co-op sector in Canada: Success factors, and planning
for growth. Canadian Worker Cooperative Federation.
Eddleston, K.A. And et. al., 2013. Planning for growth: Life stage differences in family firms.
Entrepreneurship Theory and Practice. 37(5). pp.1177-1202.
Grover, B.E., Bokalo, M. and Greenway, K.J., 2014. White spruce understory protection: From
planning to growth and yield. The Forestry Chronicle. 90(1). pp.35-43.
Hough, P. and et. al., 2010. The worker co-op sector in Canada: Success factors, and planning
for growth. Canadian Worker Cooperative Federation.
Keough, S.B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
Li, Z., Mobin, M. and Keyser, T., 2016. Multi-objective and multi-stage reliability growth
planning in early product-development stage. IEEE Transactions on Reliability. 65(2).
pp.769-781.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Moseley, M.J., 2013. Growth Centres in Spatial Planning: Pergamon Urban and Regional
Planning. Elsevier.
Pallagst, K., 2010. The planning research agenda: shrinking cities–a challenge for planning
cultures. Town Planning Review. 81(5). pp.i-vi.
Todes, A., 2012. Urban growth and strategic spatial planning in Johannesburg, South Africa.
Cities. 29(3). pp.158-165.
Valler, D., Phelps, N. and Wood, A., 2012. Planning for growth? The implications of localism
for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Wu, F., 2015. Planning for growth: Urban and regional planning in China. Routledge.
12

13