PLANNING FOR GROWTH.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key considerations for evaluating growth of Ella's Kitchen..................................................1
P2 Opportunities for growth for Ella's Kitchen...........................................................................2
TASK 2............................................................................................................................................4
P3 Potential sources of funds available for Ella's Kitchen and its benefits and limitation..........4
TASK 3............................................................................................................................................7
P4 Business plan of Ella’s Kitchen..............................................................................................7
TASK 4............................................................................................................................................9
P5 Succession Options for Ella's Kitchen and its benefits and drawbacks..................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning for growth plays a vital role in enhancing business operations. It is important for
the organisation to plan functions according to determined goals and objectives (Miller, Hauer
and Werner, 2015). The report will outline new products and services of Ella's kitchen, the small
enterprise of UK offering organic and nutritional baby food products in order to attain
competitive advantage. Further, it will evaluate growth options by using Ansoff matrix which
will assist the firm in expanding networks. Moreover, it will analyze the business plan used by
entity to identify its financial information, objectives and strategies. Besides, the report will
outline succession option and its advantages and disadvantages for the baby food product
organisation. Thus, it will discuss the potential sources of funds which will the assist the
enterprise in its growth and development.
TASK 1
P1 Key considerations for evaluating growth of Ella's Kitchen
Growth opportunities act as tonic for the small enterprises as it assist the firm in attaining
competitive advantage (Leigh and Blakely, 2016). The products and services for Ella's kitchen
are innovative and have the advantage to become market leader as it provides organic and
nutritional baby food products over which it has various profitable opportunities. It is important
for the business to grab all the possible opportunity which can help in its growth and
development. Moreover, the competitive advantage and growth opportunities for small enterprise
is analyzed by implementing the use of PORTER five forces. This model is the beast strategy
used by the organisation to analyses the increasing competitive and powers of key stake holders
such as, Suppliers and consumers. The Porter's Five forces model of Ella's kitchen is as follows:
Bargaining Power of Suppliers: The power of supplies for the company is moderate, This
comprises domestic, national and international suppliers are wholesalers due to which the
company has various options of switching (Ward, 2016). Besides, the organic food market chain
is spreaded all over the country due to which suppliers also have various options to switch their
choices according to their profitability and power.
Threats of Substitutes: In food market there are various substitutes available but the
kitchen holds the advantage over this as there are limited Number of companies selling organic
baby food products (Cummings and Worley, 2014). Further, switching cost has a strong force as
there are limited firm offering organic food products to the buyers. However, in contrary the
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availability of low cost substitute’s impacts the growth of Ella's Kitchen as buyers are price
sensitive and the discrimination allows them to switch for substitutes.
Threat of New Entrant: It has moderate impacts on growth opportunities as there is no
boundation on entry and exit but on the other hand the existence in food industry is difficult
because the consumers are very particular about their buying habits (Smither, Houston and
McIntire, 2016). Moreover, the baby food products hold advantage as the customers prefer
healthy and nutritional diet for infants and children's.
Bargaining Power of Buyers: The buyers are price sensitive, therefore low switching cost
over products has a strong force which can limit the growth opportunities of organisation
(Mowday, Porter and Steers, 2013). In this the company focuses on providing high quality of
information and food products in order to decrease the bargaining power of buyers. Further, the
consumers are, main disadvantage for the firm is that the customers buys products in limited
quantity which increase the production cost of the business.
Industry Rivalry: Threat from competitors is very high in food industry. The already
existing and leading companies have strong consumer base and loyal buyers which sometimes
restrict the growth of Ella's Kitchen but making innovation in services is the best strategy used
by the enterprise to attain competitive advantage.
P2 Opportunities for growth for Ella's Kitchen
Grabbing a strong control over growth opportunities is the best strategy which assist the
business in growth and development (Coale and Hoover, 2015). Small enterprises has various
opportunities to grab like implementing the use of different technological advancement which
assist in increasing cost effectiveness and timely production of goods. Further, the company uses
Ans-off matrix to determine its growth opportunities which assist the management in analyzing
the need of innovation in existing products or is the firm need to launch new commodity in order
to expand its consumer base and market share. Ans-off Matrix for Ella's Kitchen is as follows:
Market Penetration: This is growth strategy step of the firm in which baby food product
organisation is focused on selling its already existing products to potential buyers (Greenhill,
Prizzon and Rogerson, 2016). In this, the management focused on selling existing products
without innovation to maximum number of consumers in order to increase market share. For this,
Ella's Kitchen makes use of every possible promotional techniques like, advertising, sales
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