Planning for growth.

Planning for growth

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Main determination for assessment of opportunity for growth.........................................3
P2 Explain Ansoff matrix.......................................................................................................5
TASK2.............................................................................................................................................6
P3 Potential source of finance................................................................................................6
TASK3.............................................................................................................................................8
P4 Describe business plans.....................................................................................................8
TASK 4..........................................................................................................................................12
P5 Critical evaluation of exit or succession options for small business and making a decision
of appropriate courses of action...........................................................................................12
CONCLUSION..............................................................................................................................12
REFERNCE...................................................................................................................................14
Books & Journal...................................................................................................................14

INTRODUCTION
Planning for growth is considered as a major activity in which it is necessary to make
appropriate plan for growth of organisation. It is necessary to maintain appropriate utilisation of
resources at workplace. In this assignment the small organisation is taken which is named as
Ella’s kitchen they provide toddler as well as organic baby food to its user. In this assignment it
is necessary to determine the opportunity for growth as well as source of finance. In addition to
this it is necessary to prepare effective business plan for increasing growth and development of
business organisation and also they provide discussion regarding exit option in relation to small
organisation (Gounaridis, Chorianopoulos and Koukoulas, 2018).
TASK 1
P1 Main determination for assessment of opportunity for growth
It is necessary for organisation to identify the opportunity that helps the organisation in
taking effective action. It is necessary for business organisation to maintain micro analysis of
conditions in which there is a determination of core competency, capability as well as resources
it is also necessary to determine the Macro environmental factor of business organisation and
also emphasized on various factor in relation to external environment. The Porter generic model
that is given in relation to Ella’s kitchen that is going to be given below:
Porter generic strategy it is very useful for business organisation in considering the most
appropriate tactics for achieving sustainable benefits. It help the business organisation can take
the advantages in relation to cost by reducing the price as well as providing the goods and
services. There are various strategies in relation to an Ella’s kitchen that is given below:
Cost leadership this tactics is adopted by organisation for increasing in market share by
providing less price goods to its user. This practice is used for increasing the economy and also
implementing advanced technology. It assists in reducing the price during the particular phase of
time period. Here in the Ella’s kitchen used these tactics for providing product at fewer prices so
that it helped them in increasing share of markets.
Differentiation is used for offering unique specific good to its customer by launching
different or unique characteristic of goods. It is important for fulfilling the particular need of
customer so that the Ella’s kitchen provides unique as well as specific product to its user that
assist them in in boosting cost of goods.

Focus: Focus strategy is adopted by business organisation in which they focuses on tactics
that is focus on differentiation as well as cost. The strategy in relation to cost is emphasized only
lowering price by taking the benefits in relation to cost. And the differentiation strategy helps in
satisfy the need for want of customer.
From the above mentioned strategy it has been analysed that Ella’s kitchen emphasized
on adoption of differentiation strategy as well as taste and preferences of candies that is provided
by this brand is wholly unique as well as a specific from other rivalries at market place. This
tactic assists them in boosting the cost and also helps in enhancing the profit margin (Rigas and
Nawar, 2016).
PESTEL Analysis
PESTEL analysis this is a technique that is adopted by business organisation is explained
and assessment of different factor that is available in macro environmental. This assessment is
useful in improving the understanding level of favourable as well as negative impact of these
elements that is further adopted in planning of tactics for use of procedure of new organisation.
The PESTEL analysis of Ella’s kitchen is mentioned below:
Political factor is connected to the level of government involvement that is available in
the country in which the specific business organisation operates their business. It involves
stability in political condition, Labour Law as well as trade restriction and many more these
elements enforces direct influences on organisation and their response is related to the alteration
in legislation at market place. Due to minimum involvement of government on business
organisation then it helps the organisation in increasing their enhancement of economic
condition. It is used in appropriate operation of Ella’s kitchen without any kind of involvement
of government. On the other hand due to Brexit, it imposes adverse influence is on the inflow of
monetary it downwards sales of Ella’s kitchen.
Economic factor Economic factor is very important that effects on how business
organisation is operating and how much profit margin they are capable to maintain in the
available condition of economy. There are various strategies such as interest rate, inflation as
well as legislation and many more. The taxation structure of UK where the presence of the Ella’s
kitchen is liberal than it boost to the income level of individual person and easily target their
customer. It helps in increasing or boosting sales for different organisation. On the other hand
due to stability of economic condition it influences the rate of interest and reduces the income or

purchasing power of an individual person so that whole price of borrowing money is high and it
is not possible for individual person to make appropriate purchase.
Social factor involves different elements like taste, Lifestyle of customer market Trends
and many more. It imposes direct impact on sales of business organisation. In context of Ella’s
kitchen there are some adverse or favourable effects on organisation. It is necessary for
organisation to increase the living standard of individual person of UK that help in attracting
them towards unique as well as a specific goods that are provided that is tasty it is the duty of
manager of Ella’s kitchen to maintain appropriate utilisation of opportunity that help in boosting
sales by giving differentiate product. Due to change or alteration in the need of customer it is
difficult for business organisation to satisfy their demand.
Technological factor technology is very important for success and growth of the
organisation. Therefore the organisation focuses on executing latest technology for satisfying the
need of customer. On the other hand due to increase in the cost of implementing technology it is
difficult for company to earn more and more profit during the particular phase of time period.
Legal factor it involves laws, regulation, as well as legislations which must be considered
by organisation for success of during the particular phase of time period. They focus on follow
all rules as well as regulation for increasing reputation of the organisation. And due to alteration
or change in regulation it is difficult for organisation to cope with the changes (Long, Geng and
Shakeel, 2016).
P2 Explain Ansoff matrix
Ansoff matrix is adopted by organisation to assess the strategy of market of business
organisation. The growth and development of organisation is completely based upon the selling
of available goods or innovative goods in present or in new market place. This strategy help in
providing technique that assists supervisor for the growth of organisation. The tactics that must
be obeyed by an Ella’s kitchen is given below:
Market penetration means the selling of product as well as services in particular market.
They focus on selling of available product in comparison to target market goods of business
organisation. It helps the organisation in boosting sales and also minimise the price of goods for
attracting large number of customer. In reference of Ella’s kitchen the manager focuses on giving
the superior baby food to its user at relatively less price for boosting share of market with
minimal risk.

Product development product development signifies the changes or modification in the
available product for bringing new design, packaging as well is labelling of product by the use of
branding. The research is important for assessing the need of requirement of user. In context of
Ella’s kitchen the manager adopt these tactics by providing innovative baby food to its customer
for satisfying their needs. In assistance of this in this strategy the risk is considered as too high
and it is not easy for customer to accept the innovative product.
Market development: In this strategy the main purpose of business organisation is to
provide the available goods in innovative market. It is described as a procedure in which
organisation can explore their market in different reason. In discourse to Ella’s kitchen the
manager focuses on adopting innovative technology at Marketplace in order to attract user for
buying goods. Here in it is necessary to have requirement of investment that is too high and it
need extended research for assessing need of user.
Diversification the main purpose of business organisation is to boost its profit margin and
explore share of market by selling innovative product in new market place. Therefore it need a
large amount of investment and also determined as a risky stage for company. There are two
kind of diversification one is connected to related diversification their same type of products
offered by Organisation on the other hand in case of unrelated diversification there is a
difference among available as well as innovative product that is offered or provided by business
organisation. In context of Ella’s kitchen the management team of the related diversification
strategy because they have a good idea in relation to available product of the company.
From the above given strategies the product development is considered as a most
appropriate strategy for Ella’s kitchen. It assists in increasing the satisfaction level of user by
providing them innovative product as per their needs. In assistance of this, the supervisor focuses
on boosting sales by giving innovative goods to its user (Crow, 2017).
TASK2
P3 Potential source of finance
Investment decision making: in this process the higher authority focuses on investing the
money within business organisation for grip the opportunity in order to gain competitive
advantage therefore the manager of Ella’s kitchen focuses on taking appropriate decisions for the

development of organisation that is completely depend upon buying of that share as well as
assets.
Method of financial appraisal
It is used by business organisation for the resolution of value of worth given over a time
period and the different method that is adopted by Ella’s kitchen for taking appropriate decisions
in relation to investment that is going to be given below:
Payback period it is determined as a procedure in which the duration of time is taken for
recover the investment amount. In discourse to Ella’s kitchen, the payback period is used by
business organisation for completing a specific project and also focuses on refunding the price of
investment that is measured in context of month as well as years.
Net present value it is considered as a subtraction among the present value of outflow of
cash from present value of inflow of cash over the interval time. The Ella’s kitchen focuses on
assessing the necessary information, value of business, innovative ideas as well as price that is
connected to flow of cash.
Sources of finance for growth
All business organisation need finance for implementing business transaction for gaining
revenue. In reference of Ella’s kitchen the management team emphasized on handling various
activity in relation to operations of organisation in appropriate manner and also it aids assistance
in satisfying the obligation in relation to finance of company. There are various kinds of source
of fund that is given below:
Bank loan it is considered as the value of money that must be taken by the organisation
from bank as well as any other institution which provide finance on the basis of security. It is
considered as a legal agreement among organisation as well as Bank in which the company must
paid the principal amount along with interest rate. In context of Ella’s kitchen the manager
focuses on taking money from bank for investing them in assets in order to gain profit margin
and also it is the responsibility or duty of organisation to repay principal amount along with the
rate of interest (Anjun, 2018).
Advantages Disadvantages
Bank loan assists the organisation in taking The main drawback of adopting this bank loan

money when they require for further
investment in assets for growth and
development of organisation (Fursov, 2017).
is that it imposes high rate of interest that is
needed by organisation that must be repaid by
Organisation in particular period of time.
Crowd funding it is considered as a procedure of Finance in small amount of money that
is taken from the financial institution to funding their new business.
Advantages Disadvantages
The main benefit of adopting crowd funding by
Ella’s kitchen is to increase the small quantity
of money that is taken from a financial
institution for funding the small business.
The main drawback for Ella’s kitchen is that it
takes too much time as well as contribution for
operating a business in successful way.
Evaluate potential source of funding from the above-mentioned source of finance the
bank loan is considered as the most appropriate source that help organisation in further
investment in assets for gaining profit margin and also the responsibility of company to principal
amount along with interest rate on targeted time period.
TASK3
P4 Describe business plans
Businessman is considered as the written document that is adopted for achieving
objective of organisation. It is adopted in pre-decided time period so that goal must be achieved.
There are various different financial functions that are used for arrangement of Finance. There
are various Strategies and tactics that also be assessed by taking use of business plan
Executive summary Ella’s kitchen is considered as a small organisation that offer
different kind of toddler as well as baby food product to its user. They are selling their goods in
various markets or regions. The business organisation focuses on expanding their business by
giving innovative product to its user. To accomplish this there is a need of understanding the
requirement of user depend upon this company focuses on launching new Candy that is different
shapes. It also helps in attracting more and more customers during the particular phase of time
period. (Channon and Jalland, 2016).The main reason of business organisation is providing their

user with best taste for baby food. It is considered as a healthy option for its user and delicious
taste.
Mission and vision: The mission of business organisation is to offer goods which must
be healthy and superior in taste for small babies which are the primary target of this company.
This helps in providing innovative as well as attractive goods.
Objective: The Primal objective or goal of Ella’s kitchen is to provide the awareness for
its user in order to launch or introduce innovative product and boost sales of available goods.
The Primal am is to increase the whole brand image as well as reputation of organisation.
Goal: The main or primary objective of organisation is to boost sell by 30% in order to
launch innovative product in upcoming 3 months. It also assists in increasing the available
market share by 15% and also the necessary steps which is taken for increasing promotional
strategy for business organisation.
Shareholder expectation it is important or vital for business organisation to determine
the interest in relation to stakeholder in order to achieve sustainable growth of Ella’s kitchen. For
this purpose it is necessary to take consideration of shareholder expectation is given below:
Employees their focus is on encouraging the level of motivation to put whole business
organisation in more efficient way and also various opportunities taken by Ella’s kitchen.
Therefore it is necessary to add the innovative product and also provide effective training to
subordinate in order to boost efficiency level.
Shareholder it is necessary to take into consideration the shareholder interest as they are
the persons who focuses on investing the amount of money within organisation for staff for
boosting the level of satisfaction it is necessary to give high rate of return to its shareholder.
Customer is considered as an essential for shareholder of business organisation. In
context of Ella’s kitchen they provide range of goods that must be provided to its user so that it
helps in increasing competitive edge therefore the organisation focuses on implementing strategy
in relation to development of product for increasing or boosting the satisfaction of its user
(Sedghi, Ahmadian and Aliakbar-Golkar, 2016).
STP analysis is adopted by organisation for assessing the target market that is handled by
organisation. Depend upon the Marketplace it is necessary to position the product in market. And
in context of a Ella’s kitchen the use Different techniques after assessing the target market

Segmentation here in the organisation focuses on dividing the overall market into
different region depend upon the same features they are shared. This factor must be determined
by an Ella’s kitchen. There are different features in relation to behaviour of market as well as
demographic factor. It includes children age group, perception of individual person that must be
considered.
Targeting in current time it is necessary to target the market for Ella’s kitchen that is
based on the age group among 2 to 3 years children. This is considered as the age where small
babies’ increases are their knowledge in regards of animal shape candies as well as experience
the taste of innovative product launch by an Ella’s kitchen named as candies.
Positioning: Here in the strategy which is made by the organisation that is differentiate or
unique in order to gain competitive edge. Therefore in current scenario the contribution which
must be made by the company for generating the online presence for reaching wide ranges of
customer.
Marketing mix it is considered as a technique which is adopted for taking effective
decision in relation to product, promotion, price as well as place. In context of an Ella’s kitchen
the product that is introduced named as candy and also the animal shaped candies. Place are
considered as those where the product is easily available to its customer and also their online
presence is necessary (Konvitz, 2020). Price it is necessary to have average price for the newly
introduced candies in order to gain competitive edge. Promotional strategy adopted by
company introduction of application in relation to digital media, videos for attracting more and
more user.
Financial projection for business organisation it is important to determine the need of
finance for innovative launchers to be done. The strategy and tactics in relation to product
development also need large money that is needed by Ella’s kitchen for performing all the
function related to finance. The cash flow is given below:

On the basis of above given cash flow it has been said that there is a need of 10,000 for
whole improvement of goods. There is also need of acquiring the raw material for production
procedure of candies. It has also been analysed that it is necessary to increase sale of 2500 unit
for boosting sales
Monitoring and controlling it is important for business organisation that they control the
different activities that must be helpful in future period of time. It is significant for putting a path
for performance. Monitoring is important for putting a right track in order to key performance
indicator of a specific business plan in context of Ella’s kitchen it is necessary to follow the track
or paths on various functions or element that must be undertaken by launching innovative
product named as Candy. There are various different areas such as optimum use of resources
finance and many more (O'Flaherty, 2018).

TASK 4
P5 Critical evaluation of exit or succession options for small business and making a decision of
appropriate courses of action
Organisations need adequate finance for operating the business in an appropriate way.
Therefore it is necessary for organisation to have a necessary finance otherwise they exit from
the market for their various tactics that is used by an Ella’s kitchen are given below:
Merger and acquisition this is considered as a tactics it is adopted by organisation for
buying of another organisation. It is considered as the advantages condition for both organisation
and also increase the profit margin.
Advantages: There are various advantageous of merger like boosting the available market
share and also provide the tax advantage for the organisation.
Disadvantages: The main drawback for organisation is occurrence of conflict and
grievances for performing whole functioning of organisation.
Liquidation is considered as the tactics that the business organisation focuses on selling its
Assets and exiting their business. This tactic is appropriate for small organisation and based upon
individual person. When the owner of the business feels that there are no more profit margins
than they end the organisation.
Advantages: This is the tactics which is more flexible and the products can be sold by
Organisation in easy manner and also recovered from Marketplace.
Disadvantages: As a decision which is taken in quick manner so that sometime it reduces
a brand image or reputation of organisation that imposes direct impact on liquidation
Ella’s kitchen uses the strategy of merger for exiting from the market (Rao and summers, 2016).
CONCLUSION
On the given port it has been analysed that it is necessary to plan the business activities
for assessment of micro and macro environment it enforces is directly influences on functions of
organisation. For expansion of growth and development the organisation is Porter generic
strategy. Ansoff matrix is also adopted for future growth and development of company. It has
been also analysed that there is a need of business plan for completing objective in given time
period.

REFERNCE
Books & Journal
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