Planning for Growth: Critical Evaluation of Growth Options and Pathways for Sweet Tooth Bakers

This report discusses the growth options and pathways for Sweet Tooth Bakers, including a critical evaluation of each option and potential sources of funding. It also covers exit and succession planning, along with the pros and cons of each option. The report uses analytical frameworks such as Porter Generic Strategies and Ansoff's Growth Vector Matrix to demonstrate the understanding of competitive advantage in an organizational context.

Planning for Growth

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
A critical evaluation of specific options and pathways of growth taking into account the risks of each option and how they can be
mitigated......................................................................................................................................3
Discussing the options for growth by using a range of analytical frameworks to demonstrate the understanding of competitive
advantage in an organizational context........................................................................................4
An analysis of the key considerations for evaluating growth opportunities with justification in an organizational context 5
An evaluation of the opportunities for growth applying Ansoff’s growth vector Matrix...........6
A critical evaluation of potential sources of funding based on organizational needs discussing the benefits and drawbacks of each
source...........................................................................................................................................7
A critical evaluation of the exit or succession options for the business and deciding an appropriate course by comparing and
contrasting options and explaining the pros and cons of each option..........................................8
TASK 2............................................................................................................................................9
Business plan...............................................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
A proper planning is significant for the company or a business to perform well and can be able to obtain the key opportunities which
will help the company to expand their business in future times. A growth planning is the essential game plan process where it helps the
organizations and business fields to grow and develop their business by achieving their set goals and targets efficiently (Xue, 2022).
The small business enterprise named Sweet Tooth Bakers has to expand and increase their growth in the market field where they have
to understand and determine some business areas and functions to grow and develop the business at definite level. The current report
will illustrate the steps which should be covered in the functioning of the small business field which includes pathways to mitigate the
risk, different options for growth by using analytical frameworks by mentioning the benefits to the business. Also, an evaluation of the
opportunity for better growth and even a succession points will be highlighted including the pros and cons of the Sweet Tooth Bakers.
MAIN BODY

TASK 1
A critical evaluation of specific options and pathways of growth taking into account the risks of each option and how they can
be mitigated
A business is launched and established to obtain a definite amount of growth and success from which the individual organization can
acquire the profitable outcome and result. The business Sweet Tooth Bakery is required to evaluate and determine the different
pathways and options of growth and development but where they face the different kinds of risks and issues which is essentially
required to be mitigated in the fixed interval (Lamker and Dieckhoff, 2022). Thus, it has been generally known that business growth is
important for a company where the company considers the employee turnover rate, market share, profits and sales and number of staff
people and employee from where the business performance and growth can be particularly measured and determined respectively.
Here, mentioning few growth pathways and options the company should consider and how they can mitigate the risk of each option.
Increasing the market share: To increase the market share, the mentioned business is required to attract and approach the new
customers and people so that they can increase their sales and market demand. The business faces the risk in attract in the maximum
number of the consumers at their organization where they can mitigate the risk by adopting and implementing the new techniques and
strategies like using the information technology or a social media platform where the bakery business can easily approach the new
consumers and finely increases the market share value.
Diversification: In today world, there are many companies and business areas who face the risk and issues due to limited resources
where they acquire the difficulties in maintaining the proper growth (Khan, Hrelja and Pettersson-Löfstedt, 2021). A diversification is
the one of the best process, an individual and a mentioned bakery organization can use by diversifying their products and services to
existing customers where a clear strategy of marketing should be adopted and implemented by the bakery business to mitigate the risk
of limited resources of the marketing sources.
Staffing and training: A proper consideration to the staff and training areas should be covered by the business from where the staff
members and employee can provide the effective results. The Sweet Tooth Bakery can meet with the risk of not giving the proper

attention to the employee which will provide the higher turnover rates where this risk can be reduced by providing the appropriate
training session to the employee which will increase their knowledge and skills respectively and enable them to perform well.
Discussing the options for growth by using a range of analytical frameworks to demonstrate the understanding of competitive
advantage in an organizational context
In the above mentioned part of the report, the different options and ways of the growth has been described in detailed manner where
the next step the business is required to consider demonstrating their understanding of the competitive advantage so that the bakery
business can be successfully developed respectively (Poels, Roelens, de Man and van Donge, 2018). Here, using an analytical
framework named as Porter Generic Strategies which helps the business to achieve a competitive advantage and drives the company's
behaviour positively. This strategy includes the four factor which has been detailed below in definite manner.
Cost Leadership Strategy: The cost leadership strategy focuses on the reduction of the cost of the products and services from where
the customer can understand and believe that they are more profitable than the shareholders of the company. However, the bakery
business is required to adopt this strategy their workplace which will help and support them to attract the customer and ensure
themselves to move forward towards the definite growth.
Differentiation Strategy: This second strategy refers to launch the products and services which can easily differentiate from their
competitors. This focused strategy is required to adopt by the bakery business where they can deliver the unique products and services
to the customers and can obtained the profitable advantage and outcome respectively. It is important for a business to differentiate
from their competitors from where only they can approach the customers and boost up their sales efficiently.
Cost Focus Strategy: The cost focus strategy related to the two aspects where it covers the term focus when a company focuses on
the niche market area either by the industry of geographically and becomes specialized in delivering for that particular business
industry, However, the cost refers when the company produces the products for an aggressive cost which is much similar to the cost
leadership strategy (De Bruyckere and Everaert, 2021).

Differentiation Focus Strategy: The differentiation focus strategy generally focuses on the particular sales channels from where the
selling over the internet can be done in appropriate manner. The bakery business is also required to understand and adopt this strategy
which will allow and ensure the to acquire the definite amount of growth and development.
An analysis of the key considerations for evaluating growth opportunities with justification in an organizational context
According to the above mentioned framework, the company should adopt and increase their knowledge in regard with porter generic
strategy where the company should adopt the differentiation strategy at their workplace in definite manner from where the consumers
can be able to get attracted towards the new bakery business efficiently. The Sweet Tooth Bakery is a new venture launched at the
United Kingdom where the business has been looking for the better and excellent growth which they can acquire by performing the
relevant and appropriate strategies. The differentiation strategy refers the bakery business to implement and launch a new product or
taste in their food dishes from where they can easily approach the consumers and can develop their business and deal with the
competitors efficiently at the market place (Ansoff, 2018). However, using and applying the differentiation strategy by the bakery it
will provide the benefits such as providing of unique products, taste and service, better profit margins, consumer brand loyalty,
reduces the price competition which allows the company to compete in the market and can obtain the better an excellent profitability
outcome. To run any kind of business or an organization they are required to collect the information of the market and demands in the
society from where it can be easily clarified by the company to apply and adopt the relevant and appropriate strategies and techniques
accurately. Thus, the Sweet Tooth Bakery business can also able to create a great or huge demand in the market by their differentiation
product which has to be launched by the bakery to attract the consumer in highly and maximum manner (Kalogiannidis and
Mavratzas, 2020). Accordingly, it has been justified in definite manner that using the differentiation strategy will help and allow the
bakery business to adopt the profitable outcome and can easily increase their market share along with the sales which overall delivers
the result in advantageous manner.

An evaluation of the opportunities for growth applying Ansoff’s growth vector Matrix
The Sweet Tooth Bakery organization has required essentially to evaluate their growth opportunities from where they can easily
expand their market and products in definite manner. The baker can expand their market by applying the relevant theories and
framework where the model named Ansoff growth matrix will help and support the business to expand their market by a proper
planning and management areas. An Ansoff Matrix is a kind of model where it helps in marketing leaders and identify the business
growth opportunities in such challenging market. This model is consisted of four factors which has been described below:
Market Penetration: The factor or strategy of market penetration is utilized by the business when they have a potential to grow their
market share in the present industry area. This factor includes the sales driven approaches in the existing environment where the
market penetration can be achieved by the Sweet tooth bakers through sales, reaching directly to consumers and such more.
Market Development: The term market development simply refers to build the market area for the bakery business where this
strategy involves the efforts of the Bakery to create a new market and channels for the current products of the bakery (Curuksu, 2018).
This factor includes the business to enter in new international or domestic market from where the sales can be driven up of the existing
products.
Product Development: For the better product development, the bakery business is required to develop and add new features into
their services also can add up some unique ingredients for the taste of the food and dishes. The bakery also can keep their focus
on applying the new strategies for the product development areas where it will result the bakery in definite manner.
Diversification: This diversification strategy has been utilized by the bakery business when the product and market both are new for
the bakery where organization sees an opportunity in an adjacent industry area. However, this is known as the highest risk strategy
where achieving the revenue opportunities should be in appropriate terms.

A critical evaluation of potential sources of funding based on organizational needs discussing the benefits and drawbacks of
each source
The organization or a business can be launched and run only by evaluating and identifying the appropriate sources of funding from
where the bakery business can be able to fulfil their own needs and requirements which can be fulfilled by the funding only. However,
here mentioning some appropriate funding sources, the bakery business can used where they can finely launch and develop their
business accordingly.
Personal Savings: The bakery business can take the funding from their own or a personal saving which will help them to not give any
kind of interest to another of third party by taking the funding from anyone else (Thompson, 2019).
Business loans: Business loans includes a debt financing loan where bank offers the funding where an individual has to pay back the
amount with the interest and within particular time. The bakery business can take the business loans from the banks where they can
perform the business of the bakery definitely.
Angel Investors: These investors are the private investors who provide the capital for the business like start-ups usually in exchange
for equity or debt (Onditi, 2018). This type of investors usually focus on financing the small enterprise from where the business can be
run efficiently, and they also can get the profitable outcome.
Friends and Family: The business can be fund by taking a loan from the family and friends on the basis of low interest sometimes
and even some of them do not take any interest from which the new start-ups can easily be able to grow. However, the Sweet tooth
bakers also can use this method for the funding of their business.
Venture Capital: The venture capital helps the business people who want to expand their market share where they can easily involve
the business management as it plays an important role is setting the milestones, targets and ensure the greater success.
Benefits and drawbacks
Benefits Drawbacks

Bank loans can be got easily and quick to
access and also can get a significant amount of
money at one time.
The individual has to pay the interest and it is
also difficult for a new business to access.
Following the angle investor and capital
venture helps to gain money quickly and
potential to raise huge amount of money.
An owner has required to pay the particular
part of the business, and they may have a
different vision for the business than owner.
A critical evaluation of the exit or succession options for the business and deciding an appropriate course by comparing and
contrasting options and explaining the pros and cons of each option
A succession planning refers to a business strategy where a business uses to pass the appropriate leadership roles down to another
employee (Kabeyi, 2018). In other terms, the process of identifying the critical positions within the bakery and developing the action
plan whereas at contradictory side, the exit planning is also a kind of strategy company use privately to maximize the enterprise value
of the company in a merger and acquisition areas. Here, mentioning the succession and exit planning factors, the bakery can consider.
SUCCESSION PLANNING
Transition to Family: In this factor, the individual organization can add and allow their family members to joint their business and
can control and manage the business respectively (Albalaki, Abdullah and Kamardin, 2018).
Third-party Management: There are many companies who allocate their business to their party management where this process is
mostly done and adopted by the construction business areas.
EXIT PLANNING

Merger & Acquisition: This factor simply refers and defines where merging with similar company or being ought by the larger
company. The bakery business can be in a win-win situation when the bordering companies have the complementary skills and can
easily save and secure the resources by combining (Bel, 2018).
Liquidation and close: This strategy is very simply and general when the business can be simply shut down by selling and closing the
business doors and then liquidate accordingly.
Pros and Cons
Pros Cons
Transition to family assured the business to be
in hands of trustworthy people and reduces the
risk.
Only 30% of the family business survives as
today pinning this type of business exit
strategies as higher risk.
In merger and acquisition, the business is
profitable and has the ability to scale, and then
they should have no problem attracting a
buyer.
One thing to be aware of is the time frame.
Only 25% of business for sale are actually
bought so if business is worth the acquisition,
be prepared to wait.

TASK 2
Business plan
It is the document which describe the organisational objectives and proper strategies to accomplish the desired goals (Rose,
2021). It is considering as the roadmap where the firm gets the information regarding their marketing, financial standpoints. Business
plan for the sweet tooth bakers are as follows:
Executive summary: Sweet tooth bakers is the new business venture is wishing to start their small size business in the market.
Company’s offering involves the cakes that can be made according to the consumer demand and available at the affordable prices.
Mission of the sweet tooth bakers is to provide better services at affordable prices. Their objectives is to increase their shares by
increasing their offering 50 percent by the end of this year.
Product description: Company offers the confectionary items where the cakes, muffins are the main product which the company sells
to their customers (Yusuf and et.al 2020). This business venture is made because of its long term viability, as company offers the
gluten free products and low sugar cake where the bread replacement is common and it is increasing the chances for gaining the
attention of the customers. Reason for selecting this business as cakes and pastries or other baked items are common and people buys
it for enjoying occasion and it can be used for celebration. For this Company have rented the place to run the business.
Market analysis: Market analysis is the assessment and searching for the market where its study involves the identification of the
market as its volume, value and potential consumer segments.
Porter five analysis: This tool helps in reviewing the strategies and to set according to the market environment as for the sweet tooth
bakers they are new to the market and it is found that in London bakery market is cutthroat, for that it is important for them to set their
strategies-
Competition rivalry: Sweet tooth baker is small size and new company as they are exposure to high competitive risk. It is important
for them to come up with the better approach which will help them to deal with the competition (Teixeira and Pereira, 2019).

Supplier power: For the company as they have pressure to deliver the product which consist of low sugar and free of gluten. Also,
they are new means supplier power is usually high for them. Company can proceed to connect with the local vendors and farmers for
the supply of raw products it will be convenient for them.
Buyers power: Buyers power is almost high for the new business, as they have other alternatives are also present. Therefore, sweet
tooth baker also needs to provide the product at affordable price so that they can be able to develop the potential customer base.
New entry threats: Generally, if the industry is too easy to enter then it means existing companies are not able to create the potential
customer base. For the sweet tooth baker, they are new to the market as such no new entry threat is found but after some time if they
failed to create their brand awareness then it will be hard for them to sustain in the market.
Threats of substitutes: It is like two rivalry company also sells the same product at affordable range so that consumer can be attracted
towards their product. For the sweet tooth baker this threat is somehow low because they produce the unique product and offers the
fresh brads, confectionery items so this threat is low for them.
Marketing strategies: It is the most important aspect, marketing strategies enables the firm to uses the strategies to make their
products available for the end users and to use the different communication channel to interact with. Sweet tooth bakers provides the
unique product within the limited time span, for that it is important to connect with the consumers to turn them into their potential
customer (Wangsa, 2022). For that company can proceed to use the digital marketing as well as traditional marketing to promote their
food items. Through traditional marketing they can proceed to use magazines, radio and television for the advertisement for their
products. But their business is new so it is suggested to prefer the social media platform as it is time and cost convenient and able to
provide the greater outreach to business. By using the social media platform, they will be able to connect with larger audience to
whom they can easily convey their business message. It will be beneficial for the company to also get the feedbacks over the social
platform and to provide them on solution, it helps in making the consumer as fixed potential consumer.
Financial plan: This section generally includes the company's or a business financial planning and areas where it includes the
financial statements, balance sheets and other kind of financial information which should be covered in definite manner. Launching a

new business, the management is required to keep their focus on the particular finance information from where the operations of the
business can be in proper and relevant manner (Subrahmanyam and Azad, 2019). Using the cash flow management, where it is the
critical information tool of the business which shows the amount of cash a new venture bakery business needs to meet with their goals
and objectives and can easily determine and evaluate the profit and loss of each month and a year. Also, the balance sheets are used
and created by the companies to calculate the new worth of a business by measuring the assets against the liabilities. The bakery
business is a new venture where they have to try to project the assets and liabilities over the course of the plan to evaluate the equity
which may accumulate in business areas. For example:
Equipment $46,000
Raw Materials $4,500
Rent (6 Months) $5,100
Site Modification $5,000
Signage, Stationary, etc. $2,000
Consultation $1,000
Supplies $600
Cash Reserves $9,800
Total Costs $69,000
Cash flow forecast for the 12
months
Particulars Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total
Cash Receipts

Cash sales 5000 5500 6000 6200 6300 6400 6500 6600 6700 6800 6900 7000 75900
Bank Loan 2000
0
1000
0
30000
Total receipts 2500
0
5500 6000 6200 6300 1640
0
6500 6600 6700 6800 6900 7000 10590
0
Cash Payments
Food Purchases 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 3600 36600
Beverage Purchases 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 15000
Rental charges 100 100 100 100 100 100 100 100 100 100 100 100 1200
Web hosting 50 50 50 50 50 50 50 50 50 50 50 50 600
Salaries 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 12000
Utilities 40 40 40 40 40 40 40 40 40 40 40 40 480
Insurance 60 60 60 60 60 60 60 60 60 60 60 60 720
Maintenance 100 100 100 100 100 100 100 100 100 100 100 100 1200
Hood cleaning 100 100 100 100 100 100 100 100 100 100 100 100 1200
Trash disposal 70 70 70 70 70 70 70 70 70 70 70 70 840
Office supplies 100 100 100 100 100 100 100 100 100 100 100 100 1200
Accounting 250 250 250 250 250 250 250 250 250 250 250 250 3000
Capital purchases 5000 7000 12000
Loan Repayments 0 200 200 200 200 200 200 200 200 200 200 200 2200
Total Payments 1007
0
5470 5670 5870 6070 1327
0
6470 6670 6870 7070 7270 7470 88240
Net Cash flow at the end of the
month
1493
0
30 330 330 230 3130 30 -70 -170 -270 -370 -470 17660
Opening cash balance 0 1493
0
1496
0
1529
0
1562
0
1585
0
1898
0
1901
0
1894
0
1877
0
1850
0
1813
0
0
Closing balance 1493
0
1496
0
1529
0
1562
0
1585
0
1898
0
1901
0
1894
0
1877
0
1850
0
1813
0
1766
0
17660

Budget: A budgetary planning is the process of forming a budget to control the business operations in definite manner. It has been
made by the business and companies to create a financial stability by tracking the expenditures and following an accurate plan which
can make the budget in easier manner (Brege and Kindström, 2020). The Sweet tooth baker business has essentially required to create
financial plan for the better outcome and results, whereas different expanses will be occur for example, equipments, signage, supply
managmemnet costs, raw materials for baking the items, rent of the bakery and such more. It is important to create a proper budegtory
because it will help the organization to understand the overall business expenditures and can plan accordingly. For making a budgetary
plan, the bakery business is required to fore case the income and expenditures so that the profitability can be analysed and also
required to use a tool for appropriate decision-making areas. Thus, a proper monitoring of the business performance is also required
and should be followed in definite manner which will benefit the bakery business to obtain the appropriate result and outcome.
CONCLUSION
The above mentioned report has concluded the brief area of the business functions which a new ventured organization is
required to understand and adopt the business functionality in definite manner. The report has included the different options and
pathways for the growth opportunities and range of analytical frameworks to illustrate the understanding of the competitive
advantages. Also, different types of models and frameworks are performed to justify the statements accordingly. In addition, it has
also performed a business plan to demonstrate the knowledge and understanding in brief manner and can achieve the business goals
respectively.

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