Planning for Growth Assignment : Pleasure foods

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1: Analysis and justification of key considerations for evaluating growth opportunities ........3
P2: Evaluation of growth opportunities using Ansoff's growth matrix ......................................6
TASK 2............................................................................................................................................7
P3: Assessment of sources of funding along with advantages and disadvantages.....................7
TASK 3............................................................................................................................................9
P4: Business plan for growth including financial information and strategic objectives for
scaling up a business...................................................................................................................9
TASK 4..........................................................................................................................................11
P5: Succession and exit plan for small business with its advantages and disadvantages.........11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning refers to the advance thinking and making plan for the various operations which
should be performed for accomplishing the desired goals of an organisation. Whereas planning
for growth refers to the preparing plans and strategies for the future growth and success of a firm
in the given market. SME's are small businesses who employs a small number of people and also
having a small revenue but these are very supportive for the growth of UK economy. The chosen
company in this report is Pleasure foods which is a new organic food and beverages company
launching in the UK. Pleasure foods deals in a wide range of organic food products who wants to
enhance their growth by entering into a contract of catering service with Birchwood Community
School in England. This report will evaluate the growth opportunities, ways to access funding
along with advantages and disadvantages for the given company. Also a business plan including
financial stats and strategic objectives for growing the business has also been discussed. In the
end, ways of exiting and succession for the company along with the implications has been
discussed.
TASK 1
P1: Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context
Pleasure foods is a small and medium sized venture in the United Kingdom who is
offering a wide range of organic food products to the customers along with the catering services
to schools and colleges. The firm has huge opportunities of expansion and growth through their
tasty and quality based organic food products. The customers are aware of health issues and the
effect of fast food on health, so they want opt for quality based organic products. This results in
huge demand of organic food which is beneficial for the company. This huge demand helps the
company to introduce their organic products to the consumers and in return will get direct
benefits from the consumers as well as from the UK government. The key considerations for
evaluating the growth opportunities for the firm are mentioned below:
Porter's generic strategy
This strategy states the ways through which the companies can accomplish the
competitive edge over the rivals in the market. Porter states that four strategies can be used by

the firms for getting an upper edge over the competitors and to implement necessary strategies
for growth and expansion. Cost leadership: This strategy states that companies needs to provide high quality
products and services to the end users at affordable and low prices for getting the
competitive edge in the industry. For example: By using this strategy, Pleasure foods can
increase their market share and can reduce their cost of labour and operations with
comparison to their rivals. Differentiation: This strategy states that an organisation needs to provide unique and
innovative products to their customers which are currently not available in the market in
order to enhance their market share. High level of research and innovative ideas are
required for this strategy to provide the best quality products. For example: Using this
strategy Pleasure foods can accomplish their mission of increasing their market share as
well as the customer base. Cost focus: In this, the firms focus on the present industry and provides their products at
lowest possible prices for getting the competitive advantage in the market. For example:
Pleasure foods can use this strategy for attracting more customers by providing their
organic products at low prices.
 Differentiation focus: In this, firms provides the unique products to the end users for
differentiating their products from their rivals. For example: Pleasure foods can use this
strategy for gaining high market share and to get brand recognition in the eyes of their
loyal customers.
Pleasure foods is entering in a contract with Birchwood Community School for providing
catering services to the students for achieving growth in the UK market and also to get brand
recognition. Company can use differentiation focus strategy for achieving the desired growth by
providing unique and quality based organic food products for distinguishing their products from
the rivals. It will assist the Pleasure foods in attracting new and more customers for achieving the
competitive edge.
Pestle analysis
Pestle analysis can be used by Pleasure foods to determine the various external factors
which can influence the operations and growth of the organisations in the UK economy.