Planning for Growth: Strategies, Models, and Funding Sources

This document discusses the strategies, models, and funding sources for planning and achieving business growth. It covers Porters generic strategies, Ansoff’s Matrix, and various sources of funds. It also provides insights into business planning and financial projections.

PLANNING FOR
GROWTH

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Porters generic strategies........................................................................................................3
Ansoff’s Matrix......................................................................................................................4
Sources of funds.....................................................................................................................5
Task 2...............................................................................................................................................6
Business Plan..........................................................................................................................6
Task 3.............................................................................................................................................10
Exit and Succession strategies..............................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

Introduction
Planning for growth refers to various management plans and strategies which are formulated
by a business in order to expand their operations. There are a number of facts which are to be
considered by the business in order to make sure that they are making the optimum utilisation of
resources available with them while growing their business. A number of strategies can be used
by business to assess the competitive advantage as well as various ways in which they can
expand their business. In the following report all the strategies and models which can be applied
by business before looking for growth are mentioned (Park and LaFrombois, 2019). Various
sources from which businesses can generate funds are also discussed in the following report.
Along with this the report discusses about a business plan for MOMA food. Various exit and
succession strategies which can be used by business is also mentioned in the report.
Task 1
It is required by every business organisation to make sure that they are identifying all the
opportunities which are present in the market to expand and grow their business. There is a
number of internal as well as external analyses done by businesses to understand the market
forces which might provide benefits and losses to their business. It is necessary that company
focus on different models with the help of market research. Below mentioned are some of those
models which can be used by business in order to effectively set up their organisation in the
market.
Porters generic strategies
When a business is looking forward to differentiate themselves with their competitors they
need to develop a core competency for themselves. There are a number of ways in which
business can achieve this objective. It is necessary in order to gain sustainable advantage in the
business and the competitive market environment. Below mentioned are various strategies of
porters generic model:
Cost leadership: Cost leadership is a strategy which a business can adopt by providing the
products in the market with a lower price when compared to their competitors. This will achieve
various objectives of business including their revenue and profits. This strategy also provide
economy of sale to a business as they can effectively produce higher quantity and reduce the

price they are charging for their product. In this way they can make their products affordable for
the customers and provide it at a better price when compared to their competitors.
Differentiation leadership: In the following strategy a business is aiming to provide the
customers with a product or service which any of their competitors cannot. They look towards
various needs and requirements of the customers which were an identified earlier. With the help
of this strategy business can effectively set up their business and stay in the competitive
environment for a longer period of time. This strategy will help the business to differentiate
themselves with their competitors based on the value they are providing to the customers with
the help of the products and services.
Focus: Focus strategy is when a business is focusing on one of the both strategies. They can
either use on providing value to the customers or providing goods and services at lower cost
(Santos, 2020) . It is necessary for company to make sure that they are choosing the best option
for differentiation or cost leadership in order to make sure that they can stay in the competitive
environment for a longer period of time.
There are different type of growth options to the organisation which can be adopted by
the while performing within the market. Some of these are mentioned below:
Merger: effective strategy which can be adopted by the organisation to increase the
market share as well as use the technology of other organisation by a minimum investment.
Under merger organisation has to buy the other organisation on a fixed price to achieve their
technology and use it for their benefits.
Joint venture: this option allows adopted by the organisation to improve its market share
where it has to combine with the other organisation within the market where it is want to
increase its share.
Ansoff’s Matrix
This Matrix was derived by Igor Ansoff who is a Russian American. This is an effective
tool which can be used by the senior management of a company while formulating strategies for
expansion on and growth of business in various unknown territories. There are a number of
different strategies in this matrix which can be used by businesses in order to expand their
operations. Any business can use one of these strategies or more than one of the strategies to
expand their business. Below mentioned are the four strategies included in Ansoff’s Matrix:

Market penetration: Market penetration is a strategy in which the company focuses on selling
the same goods and services available with them in the same sector they are already set up. In
this the company focuses on providing the goods and services on a better price to their
customers. They also offer various advantages to the customers with the help of promotional
strategies. This strategy is considering no risk attached to the business. Also, the investment
which is required by the businesses to use market penetration is very low. All they need is to
invest on the marketing strategies and promotional tools in order to advertise the products and
services provided by them and communicate them to the potential customers in the market.
Market development: Market development is a strategy in which the business is selling their
already present goods and services into the new markets. In this the business is expanding their
operations in a new market in order to gain new customers. It is required by businesses to study
the new market and conduct research on the market in order to make sure that they are
effectively categorizing the potential customer and reaching out to them in order to increase their
sales and profits.
Product development: Product development is a strategy in which businesses alter their products
and services in order to provide benefits to their customer. The businesses can change the design,
packaging as well as labelling of their products in order to do so. The market in which the
business is already selling their products have a number of customers for them. It is required by
business to make sure that their customers are not moving towards their competitors and all the
requirements of the customers are fulfilled by business (Kidder and Wallace, 2019). In order to
achieve this product development strategy is used by business.
Diversification: Diversification is the strategy in which the business is expanding into new
market with new products and services. It is a risk averse strategy and a lot of investment is
required by businesses in order to adapt to diversification. They need to make sure that they are
innovating new goods and services for the new market. Proper market research is to be
conducted by businesses looking out for diversification
Sources of funds
It is necessary that business is effectively supervising all the financial sources of funds
available to them. Below mentioned are some of those sources along with their advantages and
disadvantages
Bank loan

A business can easily go to a financial institution or a bank in order to acquire funds. A legal
contract will be formed between company and the bank and the business will be financially
obligated to pay back the loan they are taking from bank along with the interest rate. The return
is to be conducted by the business in a stipulated time period.
Advantage: Bank loan can assist a company when they are investing in new products
and services for expansion of the business. It is the most popular source of business which is
effectively helping small and medium enterprises in the economy.
Disadvantage: The interest rate which is charged by the banks can be high sometimes.
Also it is required to make sure that the business is paying back to the banks on time if a business
fails to do so the assets of the company can be mortgaged by banks.
Crowdfunding
Crowdfunding is a process in which a business is asking for small amounts from the public. In
this way business can effectively collect the sources of funds required by them in order to
continue with their operations.
Advantage: Small quantity of funds can be raised by business without any interest-rate
with the help of crowdfunding.
Disadvantage: It is often seen that there are large amount of effort is required by
business along with Time in order to carry on with crowdfunding. It might be a hectic and time
taking process for a business.
With the help of the above mentioned sources it can be examined that businesses can
effectively use number of different sources to obtain funds. It is necessary that business is
evaluating all the advantages and disadvantages of all the sources in order to choose the best
option for them.
Task 2
Business Plan
Business plan refers to a record document which is written and contains all the goals and
objectives of a business. This is usually based on a stipulated time period and all the decisions
and strategies which will be used by the business in that period of time. There are also various
predictions made about the budget and financial position of a company during the time period.

Below mentioned are all the requirements of a business plan. A small and medium enterprise
MOM a food is considered for this business plan.
Executive summary
MOMA is a small and medium enterprise situated in London which provides healthy
breakfast to consumers. They have set up their market with the help of a number of supermarkets
in the country. They are also expanding their business with the help of new products in the
already existing product line of the organisation (Berglund, 2019). There are a number of new
products brought in by company and also separate stores which will be company managed in
United Kingdom.
Vision and mission
The vision of organisation is to provide healthy food and breakfast to all the customers.
Mission of company is to make sure that their products are healthy and tasty to fulfil the
requirements of customers in order to retain them for a longer period of time.
Goals
Major goals of companies to spread awareness about their products as well as
healthy lifestyle towards the customers (Donoso-Correa and Sarmiento, 2020).
Objectives
Objectives of the organisation is to increase their sales by 30% with the new launch of their
product. This objective will be gained by company in upcoming three months. They also hope to
increase their market share by 10%.
Stakeholders expectation
It is necessary that company is effectively fulfilling all the needs and requirements of their
stakeholders in order to sustain in business for a longer period of time. Below mentioned are
some of the expectations of different shit stakeholders of business.
 Employees: It is necessary that company is providing a healthy and positive working
environment to all the employs. The need to make sure that they are continuously
motivating the employs to achieve all the goals and objectives of the organisation. It is
required by human resource manager of the company to effectively make the use of
human resources and increase productivity in the organisation.

 Shareholders: Shareholders of the organisation are interested in earning profits from the
business. It is the duty of business to provide higher returns to all the shareholders in
order to keep them motivated and gain investments from them.
 Customers: customers play an important role in every business. It is required by business
to make sure that they are providing healthy food and breakfast to their customers in
order to satisfy them. It is also necessary to effectively plan strategies to stay in the
competitive environment.
STP analysis
STP stands for segmentation, targeting and positioning. It is required to be adopted by the
management of marketing in the company to cater all the requirement of business. Below
mentioned is the STP for MOMA food.
 Segmentation: In the part of segmentation the overall market of the company is divided
into various groups based on demographic, psychographic as well as behavioral
segments. MOMA food is considering various sectors which is based upon age and
gender of people for their products. The behavioral segmentation is based upon
inclination of customers towards healthy food these days. This will help them to
effectively fulfil all the requirements of their potential customers.
 Targeting: This particular segment of STP focuses on how the company will target their
potential customers. MOMA food is focusing on various groups of customers who are
conscious towards health. They are providing healthy breakfast to the customers with
different oats products in order to bring the profits for the organisation.
 Positioning: Positioning refers to the position through which the company is launching
their new product in the market. It is necessary that a positive image of company is
produced by the marketing department in the minds of consumers. This will help the
organisation to effectively expand their business and attract all the potential customers
towards them.
Marketing mix
Marketing mix is referred to the decisions which businesses required to take about their
product, place, price and promotion. In order to launch the new product of cereal oats for
attracting new customers MOM a food is using innovative products (Gould, 2019). They are
using value pricing so that they can provide consumers with satisfaction along with their

products and prices which they are charging for their product. The promotional strategies used
by the business will include advertising, sales promotion as well as publicity with the help of
social media. The place which is used by business in order to sell their products will be the
outlets of company which are already set up in various areas of United Kingdom.
Financial projection
It is necessary for the business to consider the requirement of finances which will be
required for the launching of the new product. There are a number of different plans and policies
along with strategies which will be prepared by MOMA food to meet the required production by
the company and all the financial resources required for that objective. Below mentioned is the
projected cash flow requirement of company
With the help of the above-mentioned project of cash flow it can be examine that the
company is in requirement of funds in order to launch the new product. They will require
€10,000 which will consider all the raw materials, machineries and human resources required by

the organisation. The company have identified the sales to be approximately 2500 units in the
first month. However, the company is planning to introduce more products and increase the
revenues to 10,000 units in the coming time.
Monitoring and controlling
It is necessary for every organisation that they are effectively imposing various methods to
control the performance and activities according to the business plan. It is necessary for a
company so that they can move towards a part of improvement in the organisation. When taking
MOM a food into consideration it is required by the supervisor to make sure that while carrying
on the activities of the organisation and launching the new product according to the objective of
the organisation they are effectively managing all the requirements as well. It is necessary to
check the development according to the business plan from time to time and take various actions
required in case of any deviation from the business plan.
Task 3
Exit and Succession strategies
There is huge amount of finance required by a business in order to make sure that they are
running all their business activities and functions suitably. It is necessary that a business have
enough amounts to run their day to day task affectively. If a business is not having the cost
required to run their operating expenses it becomes difficult for a business to stay in competitive
market (Borger, 2019). When a business faces difficulty in order to survive in the competitive
market they look for a number of different exit options with the help of which they can
effectively exit or succeed their business. Below mentioned are some of the sitting and
succession options present with business along with various benefits as well as drawbacks of
these options.
Merger and acquisition
Merger and acquisition refer to a plan which can be adopted by companies when they are
merging their business with another company or person. It refers to combining two companies
together in order to form a single company. On the other hand, acquisition can be taking over
any other company in order to succeed the business of both the companies. This provide
companies with beneficial conditions in order to operate all the activities related to business

effectively. Below mentioned are various benefits and drawbacks companies must understand
before choosing this option:
Benefits:
 This helps the businesses to increase their value as gaining a new business will help them
to gain more market share.
 Companies can also gain various tax benefits as they can reduce the cost of capital and
also increase the returns they are learning (Su and Qian, 2020). This shared resources of
both the companies help to effectively run the business and attend economies of scale for
business.
 A number of innovative techniques and tools can be used by two businesses coming
together with the help of finances available with them.
Disadvantages:
 It is often seen that a company might face conflicts and grievances between the employs
and a number of skilled employees of company have to be terminated due to merger and
acquisition.
 The communication and coordination in the new organisation become difficult due to
different culture of the organisation.
Liquidation
Liquidation is an exit option for the companies in which they can sell all their assets and
properties available to them and the business functions along with all the liabilities of an
company comes to an end. This is a process which is forced upon a business is not voluntary.
This usually happens when a business is not effective enough to pay off all its debts. During the
time of liquidation, a liquidator is allotted to a business which is responsible for selling all the
assets and the inventory is of the business and paying of the liabilities.
Benefits:
 The strategy of liquidation is a flexible strategy where all the goods and inventory along
with assets available with the company can be sold and the money can be recovered from
market.
 All the assets in the business can be easily converted into cash which can bring profit for
the owner as they do not need to wait much after liquidation.

 Also all the liabilities of the business towards the market are settled down effectively
after the process of liquidation.
Disadvantages:
 The business has to shut down after the process of liquidation. It is often seen that the
cost of inventory and assets which is attained from the market is less than the market
cost.
 This happens because in the urge to sell all the inventory and assets the business cannot
expect the original price or the market price. Due to this the business has to settle for less.
All the employees who were earlier on the organisation become unemployed and it might
affect their living (Gatt, Mom, and Jansen, 2020) .
 There are also the chances after liquidation that all the liabilities of businesses are not
paid well. It is the duty of liquidator to pay off the liabilities on the basis of their
importance which are ranked according to the accounting standards.
Winding up
Winding up is another exit strategy which is used by a number of businesses in which
they usually dissolve all the assets and the inventory is which is present in the business. During
the process of winding up all the liabilities are paid off by the amount which is gained after
selling the assets and inventory in the market. This is a voluntary decision of a business which
the business owners take themselves. In this profit all the assets are sold and if any as it is left or
with the business they are equally distributed among all the shareholders and the partners in the
business.
Benefits:
 While going through a winding up all the duties and responsibilities of the owners of a
business as well as director of a business comes to an end.
 The business do not have to face any pressure from the debtors of the business to which
they have to pay back.
 The available funds of business are also used by owners in order to look forward for a
new business opportunity in this process.
Disadvantages:
 There are a number of legal procedures and proceedings involved if a business wants to
wind up.

 Therefore, the process of winding up can be tiring for a business owner (Sierra and
Calabrese, 2019).
 It is a long process which requires a lot of time and efforts from directors and owners of
the business. It is also seen that a business which is going under wind up me lose their
talented and experienced employs.
 There is a lot of investment done on human resource of the company in order to train
them all of which is of no use if a business is winding up.
Above mentioned are various exit strategies for small and medium enterprises which can
be effectively used by businesses if they are trying to wind up their business. The description
contains the justified recommendations and advantages along with disadvantages which a
business might have to face when they are looking for an exit or succession option.
Conclusion
The following report concludes how a business can effectively grow using a number of
different strategies available. The report helps in understanding what are the various strategies
which can be used by business and what are the advantages and disadvantages of all the
strategies required to be evaluated by business before expanding. Following all the strategies
mentioned in the above report a business can effectively fulfil its objectives towards the
customers and all the stakeholders generating profits and revenues for themselves.

References
Books and Journals
Park, Y. and LaFrombois, M.E.H., 2019. Planning for growth in depopulating cities: An analysis
of population projections and population change in depopulating and populating US
cities. Cities, 90, pp.237-248.
Santos, R.A., 2020. Tourism, Emigration, and Cooperation: A Strategy for Growth and
Sustainable Development in a Community of Portuguese-Speaking Member States.
In Cross-Border Cooperation (CBC) Strategies for Sustainable Development (pp. 192-
215). IGI Global.
Kidder, D. and Wallace, C., 2019. New to Big: How Companies Can Create Like Entrepreneurs,
Invest Like VCs, and Install a Permanent Operating System for Growth. Currency.
Berglund, L., 2019. Hollander: An Ordinary City: Planning for Growth and Decline in New
Bedford, Massachusetts. Journal of the American Planning Association, 85(3),
pp.384-385.
Donoso-Correa, M.E. and Sarmiento, F.O., 2020. Sustainable urbanism or amenity migration
fad: critical analysis of urban planning of Cuenca cityscapes, Ecuador. In The Elgar
Companion to Geography, Transdisciplinarity and Sustainability. Edward Elgar
Publishing.
Gould, K.A., 2019. Summer: A Time for Growth and Restoring Joy.
Borger, A.L., 2019. Changes in Journal Leadership: Opportunities for Growth and Improvement.
Su, X. and Qian, Z., 2020. Neoliberal planning, master plan adjustment and overbuilding in
China: The case of Ordos City. Cities, 105, p.102748.
Gatt, C., Mom, T. and Jansen, J., 2020. SecureLink: When Growth Happens Faster Than a Wink.
Sierra, C.M. and Calabrese, S.V., 2019. Succession planning for new practitioners. American
Journal of Health-System Pharmacy, 76(24), pp.2006-2008.