Planning for Growth: Evaluating Key Factors, Opportunities, Funding Sources, and Business Plan for Press London

This report evaluates growth opportunities for Press London using models such as Porter's Generic Strategies, PESTEL Analysis, and BCG Matrix. It also discusses potential sources of funding and their advantages and disadvantages. The report includes ANSOFF growth vector matrix and evaluates the business plan for Press London.

Planning
For Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Evaluate key factors for assess the growth opportunities and justify these considerations...3
P2 Evaluate the opportunities for growth applying ANSOFF growth vector matrix.................6
P3 Potential sources of funding and advantage & disadvantage of sources -.............................7
P4 Evaluating the Business Plan -............................................................................................10
P5 Assess Exit and succession planning with their advantages and disadvantages -.............12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning is defined as the process which enables an organization to achieve goals and
objectives. Planning involves future planning and creative thinking to make business aims and
objectives. It helps the businesses to identify the goals clearly so that the managers can find
methods and solutions to complete them. It helps businesses to identify the strengths and
weaknesses, planning also helps in overcoming the weaknesses. This report is on PRESS
London, co founded by Georgie and Ed in 2014, headquartered in London, UK. Today the
company is working with over 700 independent stockists all over the UK. The company creates
super fresh, nutrient-dense cold pressed juices and healthy drinks. Business growth planning is
important for all types of businesses (Ng, 2018). In most of the developing economies, SMEs
improve the employment rate. Because when big industries reduce jobs small industries keep
creating more jobs.
MAIN BODY
P1 Evaluate key factors for assess the growth opportunities and justify these considerations
To evaluate the growth opportunity for Press London , this report will take the help of
models and framework to analyze the business growth such as Porter's Generic strategies,
PESTEL Analysis and BCG Matrix of the company. Here are the models and framework
discussed below-
Porter's Generic Strategies
This strategy was propounded by Michael Porter in 1985. It argues that “ understanding
the competitive forces”. It is a strategy that a company could use to gain competitive
advantage(Morison, I., 2020). Its set out to uncover the ways companies maintain long term
advantages over their competitors. In context of Press London , the model are discussed below-
 Cost leadership – The first among the five is cost leadership and it allows a competitive
edge by influencing cost of production. In cost leadership, the company becomes the low

cost producer in the industry. In context of Press London , the main point is to keep the
companies cost low. And here the lowest cost does not mean the lowest price. With this
strategy the company can successfully have efficient logistics and low cost when it comes
to have materials and labor (Dodds, and et, al., 2018). By keeping the cost as low as
possible, it will help to the enhance the growth of the business.
 Differentiation – It is a strategy in which the organizations seeks to distinguish itself
from competitors through the quality of its products or services. The company can apply
this strategy to differentiate the products or services the company have to identify the
present suppliers of the company , technologies and innovations to increase the growth of
the company.
 Cost focus strategy - This strategy focus on a particular market or segment which tries
to attract customers on the basis of pricing(Bagheri, and et, al., 2018). In this the
companies strategy is to develop market and to sell a specific product to a specific group
of segments of customers. Company can maximize their penetration with the help of this
strategy.
 Differentiation focus strategy - This is first type of focus strategy that mainly
concentrate on developing a differentiated product for specific market segment. It fulfills
the demand of a narrow segment of market. Company can use this strategy by
differentiate their products from competitors in a certain market .
PESTEL Analysis
It is a ideology or tool used by marketers to analyze or monitor the external and macro
environment forces facing an organization . Is is often used as a broad fact finding activity. It
helps in strategic decision making.
 Political factors - It usually relates to laws and regulations which are driven by
government actions and policies. PRESS London is a UK based company. UK
Government is playing a major role in stopping corruption. It includes tax policy, rules

& regulations , free trade disputes. Political uncertainty in the run up to Britain's 2015
election poses a risk to vital business investment.
 Economic factors – It affects the economy, including interest rates, wages, tax rates,
income, bills etc. these factors affect the ability to make healthy choices. Press London is
a cold press juices and health food company in a UK. It create impact on GDP,
employment,tax representing the tax receipts paid to the UK treasury. Any kind of
changes in tax rates would directly affect the economy of the company.
 Social Factors - It includes cultural norms and expectations, population growth rates,
career attitudes etc, demo-graphical considerations. Consumers needs and expectations
changes with time rapidly so company have to change the products according to their
needs of the customers(Pinnegar, and et, al., 2020). Press London can use social media to
promote .
 Technological factors - It includes the production techniques, e- commerce technology,
marketing , information and communication techniques . This factor can be both an
opportunity and a threat also. By using latest technology, machines in the production and
manufacturing system will help in producing more product and will also reduce the cost.
 Legal factors- It describes how the law affect the business operations and customer
behavior. There are certain laws for the food companies which need to b followed by
every company it's a legal restriction on them. Company need to follow the rules &
regulation to run the business.
 Environmental factor - It refers to the environmental behavioral of the society. It
includes air pollution, climatic changes, natural calamities. Since the Press London
produces food related items , then they should be beware of climatic changes because it
will affect the raw material of the company.
BCG Matrix-

BCG matrix is also referred as Growth share matrix . It is a model used to analyze a
business products to aid with long term strategic planning. It is propounded by Boston
Consulting Group in the year 1970. It is a tool used internally by management to assess the
value of a firm's unit(Wey, W.M., 2019). By this matrix the company can decide that which
product to sell and invest. Here are the points-
 Stars - It represent business unit which having a large market share in a rapidly
increasing growth industry. Stars are both cash generators and cash users. It operates in
the market that shows potential in the future. Press London should undergo a product
development strategy , where they develops innovative features on the product that
attracts more consumers and increase the sales. It is a attractive market.
 Cash Cows - These are the products with low growth markets and high market share.
The product should be innovative and it require a minimal investment to thrive. Cash cow
is an asset for a company like Press London. A business can become a cash cow
depending on its performance in the growth stage.
 Dogs – These are the product with low growth markets and low market share. The dog
represent a losing situation(Di Tommaso, and et, al., 2019). This would be if a particular
type of product is not making a profit to the company then its preferable to liquidate or
cash out the company.
 Question Mark - These are the products with low growth markets and low growth
market share. This is a situation where a company is having a lot of growth but there isn't
a high return.
P2 Evaluate the opportunities for growth applying ANSOFF growth vector matrix
ANSOFF Matrix : ANSOFF Matrix was founded by H. Igor ANSOFF and get published
in the Harvard business Review in 1957 in an article names as “ Strategies for Diversification”.
It helps marketers to identify opportunities to maximize revenue of the business. It is used to

evaluate opportunities for companies to increase their sales by showing alternative options for
new markets(Yu, and et, al., 2019). Strategic questions that can be answers using the matrix
include-
 Market penetration - It usually focus on increasing the sales of an existing product to
an already existing market. Company can use marketing budgets to penetrate markets.
With the help of marketing strategy the company can attract more consumers by making
attractive deals . The company gets profit by advertising the product in the market.
 Product development - This is a strategy in which a company introduces a new product
into an existing market , this area is slightly risky. A firm apply this strategy when it has a
strong understanding of its current market. The company Press London can introduce
different type of new product. There is a potential in the market.
 Market development – It is a market development strategy that enter new markets with
existing products. It may also mean expanding into new customer segments, regions.
Company can enter foreign market by selling the existing products. Company can also
implement this strategy by entering into a new domestic market.
 Diversification- In this strategy a firm enters a new market with a new product. This
strategy is riskiest among the all. It involves both market development and product
development. Company introduces new product in the new market .
According to ANSOFF Matrix, market penetration is the best strategy for the growth of the
operations that includes build market share, withdrawal.
P3 Potential sources of funding and advantage & disadvantage of sources -
Source of funding- Companies often need to raise funds when it comes to financing the new
businesses. Funding is the act of providing resources to finance a need, program, or project.

Press London has received a funding package to ramp up its growth. Here are the some funds
given below-
 Retained Earnings - It is an internal source of the company to finance it. Company does
not disseminate its profits or earnings to the shareholders. It is an long term investment
source for the company. It is the left over portion of the company after the give out of
dividend to its shareholders.
Advantages of retained earnings-
Invest in expansion - Companies who focus on their growth may pay the low dividends or may
be not any because its having a sense to expand the financial activities(Clifton, and et, al., 2020).
The thing is that more money can be made for all in the long term including shareholders.
Boost investor confidence - Companies better position in the market offers makes the business
look more attractive in accordance to potential investors. The better position of the company
attracts more investors towards company which raises the share price of the company in the
market which would create a cycle of growth.
Disadvantages of retained earnings-
Shareholder dissatisfaction – There is a some sort of dissatisfaction among shareholders
because higher in the retained earnings as it decreases their dividend. Shareholders gets
dissatisfied because of large retention of earnings over a long period of time as they don't receive
the sufficient or expected rate of dividend.
Chance of hoarding cash – This is one of the disadvantage of the retained earnings.
Companies directors may bound the value of dividends and can hoard too a huge amount of cash
in the business.
 Debt Capital - Debt capital refers to the borrowing funds from individuals or
institutions that can be repay on a later date , with interest. It includes bank loans,
personal loans . It is the capital that a business made by removing the loan.
Advantages of debt capital -

Ownership - In debt capital ,this is the major advantage for the company that the ownership
retain with the owner itself it will not get transfer to anyone (Ravindra, A., 2020). Company
borrows money from any financial institution have to pay back the borrowed amount to the
principal along with interest , it does not have to say that how the business is running. Thus the
ownership retain with the company itself.
Tax deductions - Tax deductible plays a major role in deducting the interest wherever in the
entire world, while doing the business. This is applicable to all forms of interest and can be a best
advantage because of deducting the interest rates while paying the borrowed funds to the
institution.
Disadvantage of debt capital -
Expensive - Debt financing can be cost expensive to the company because of the higher interest
rate. Offering higher interest rate to the investor can cost costlier to the company but it is
important to do, so that the investor can attract towards the company and can invest in it.
Companies credit history will determine this point that this a advantage or disadvantage.
Collateral – In the initial days of the company, lenders provides a collateral to a company to
secure the finances. It will risk the companies asset of the company and may be cash also .
Lenders might ask to guarantee the loan then have to risk the assets to get the funds(Wann-Ming,
W., 2019).
 Equity Capital - It is a fund paid by investors into an business in return of common
stock, limited partnership interests. It is an investment made by the shareholders, who
purchases shares . It is also known as residual capital.
Advantages of equity capital -

No Repayment - In equity capital , there is no such obligations to repay the equity investors or
to make any interest payments . This is the main advantage of equity financing that there is no
responsibility to repay the acquired money. Unlike debt financing, it does not require to repay.
Lower Risk - In equity financing there is not any stable monthly loan payments to make. This
helps in initial days of company or in starting the company that don't have any kind of positive
cash flows during the initial months.
Disadvantages of equity capital
Loss of Control - This is one of the biggest disadvantage of equity capital as the owner of the
company loses control when the additional investor comes into force. This can also result into
the loss of control over a business because of equity capital(Catlin, R.A., 2020). Equity investors
have right to vote on decisions of the company so that might cost loss of control of ownership
on business.
Higher Cost - Company who have a high degree of risk will cost higher in equity. If the
financial risk of the company increases then it will increases the risk of debt. Investors are
expecting a return on their money.
Press London can take use of retained earning to finance their company by making sure that
investors invest in their company. Retained earnings will help company to use this fund very
easily because of its flexibility and they do not dilute ownership.
P4 Evaluating the Business Plan -
 Vision - The vision of the Press London is to serve the best of healthy foods and drinks
to the peoples out their and to springboard a healthier life.
 Mission - The mission of the company is “ Making it easy to live a healthier, happier
life ”.

 Objectives - The main objective of the company is to produce healthy foods and
leverages for the company with making sufficient profits.
 Goal - Press London has a goal to reach the company at an international level with a
big brand name .
 Stakeholders - High power, high interest – This include owners, directors , managers of
the company.
High Power , low interest - This stage include employees etc.
Low power, high interest - These stakeholders include customers, consumers, suppliers etc.
Low power, low interest - These include workers, helpers and others of the company.
 Capital Funding - Company prefers to use retained earnings for any kind of source of
funds.
 Operational plans - Market penetration is the best strategy for the growth of the
business because it attracts more consumers and increases the sales.
 Resource Plan – Resources plays an important role in the growth of the business.
Company needs various resources such as human beings, machines etc. to work with full
efficiency. Basically it is a process of completing task with the help of team leaders,
managers
 Technology Plan - Press London uses various technologies to provide better services to
the consumers by taking use of advanced machines, servers for the betterment of the
business.
 Risk Factors - Company faces various types of major risk which are facing by the
company Press London is behavioural changes in customer taste and preferences.
 Marketing Plans - Company can use various marketing strategy to increase the sales
like the company can use social media to promote the products because it is a best way to
influence people. Press London can take advantage of it.

 Time Frame - Press London is a healthy food and beverages company which is founded
in 2014 by Ed Foy, Georgie Reames and situated in London, UK .
SWOT Analysis : SWOT analysis is a framework of identifying internal and external
environment for doing strategic planning.
 Strengths - This is the major strength of the Press London that its consumers are very
loyal towards the company. Youngsters are very health conscious in today's time so this
can be a strength of the company.
 Weaknesses - The companies weakness is that the consumers tastes & pre fences gets
changed time to time so the company have to invents new products accordingly.
 Opportunities - In a food industry there are many opportunities for the company like
increasing number of suppliers so that the production can be maximize.
 Threats - This is the biggest threat for the company that government may have
controlling prices over the certain product of the company.
P5 Assess Exit and succession planning with their advantages and disadvantages -
Succession planning and exit planning will help the company in business growth.
Succession Planning - It refers to the strategy which businesses uses to transfer the
monitoring or leadership roles to another employee or the bunch of employees(Linnik, and et, al.,
2020). It plays an important role in the enhancement of the operations.
Here are some succession strategies -
 Merger & Acquisition - This is the emerging succession strategy. Ir reflects that when
one or more companies comes together to work on the same business project then it
helps the organisation to achieve the organisational goals and it will also increases its
financial stability of the company . It helps firm in diversifying the range of business.

 Employee Engagement – Employees plays a major role in the completion of any task in
the company. Their presence and engagement plays a critical role so the employees
should be very enthusiastic towards their work it will help in the enhancement of the
growth of the business.
Exit Planning – It comes into the force when the company have to shut the business this is
done by owners, angel investors etc (Globocnik, and et, al., 2020). It is the preparation to exit a
privately held company. It takes all the business stakeholders, finances to implement this
strategy.
Here are the some exit strategies that can be use -
 Liquidation and close - Liquidation is a strong exit business strategy. Liquidating the
business for always , also known as “ lifestyle business”. This strategy will upset the
investors of the company and the other option is to close the business and sell the assets
as rapidly as possible.
 Sell to a new owner - This is a process of transferring the ownership to the trustable
person like employees, or a family member as this is a very easy possible way to do day
to day operations of business. But there is a some challenge also that is mixing the family
dynamics with the business environment but with the full strategy this can be done.
According to the above mentioned two strategies the succession planning is best for the Press
London that is merger and acquisitions strategy . When one or more companies comes
altogether to focus on the same project than it helps company in best possible way to enhance
the growth .
CONCLUSION
From this report it is concluded that planning is a important part for every business as it helps
in determining goals and objectives. Planning allows organizations to identify the ways to
influence customers to buy their products, as planning involves building of strategies. Through

planning leaders can prepare for the future growth of the business and give the tools to achieve
them. In this report it is stated that PRESS London deals with the healthy cold press juices. The
company is following differentiation focus strategy through which it can influence more
customers. Through this strategy the company can focus on its products and try to innovate them.
Businesses require funds for growth and expansion which it can source from angel investors,
debt capital and equity capital. PRESS London can source its funds from retained earnings as it
is a medium enterprise and business owner have to give their ownership to other individuals.
There need to be a clear understanding of business goals and objectives so that a proper path can
be defined for accomplishing tasks. So for expansion a proper business plan needs to be made
which focuses on providing quality goods to its customers.

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