Planning for Growth: Analyzing Key Considerations and Opportunities

42 – Planning for
Growth

Table of Contents
INTRODUCTION...........................................................................................................................................3
Investing in the Future (Part 1)....................................................................................................................3
TASK 1..........................................................................................................................................................3
Analyse key considerations for evaluating growth opportunities............................................................3
Evaluate the opportunities for growth applying Ansoff growth vector material.....................................5
Options for growth using a range of analytical frameworks....................................................................7
Critically evaluate specific options & pathways for growth....................................................................8
TASK 2..........................................................................................................................................................8
Sources of funding available to businesses.............................................................................................8
Evaluate potential sources of funding & justification..............................................................................9
Critically eevaluate potential sources of funding with justified argument..............................................9
TASK 3........................................................................................................................................................10
Design a business plan for growth that includes financial information & strategic objectives for scaling
up a business.........................................................................................................................................10
Develop an appropriate & detailed business plan.................................................................................16
Present a coherent and in-depth business plan....................................................................................17
Developing an Exit Plan (Part 2)................................................................................................................17
TASK 4........................................................................................................................................................17
Assess exit or succession options for a small business explaining the benefits & drawbacks of each
option....................................................................................................................................................17
Exit or succession options for a small business......................................................................................18
Evaluation of the exit or succession options for a small business.........................................................19
CONCLUSION.............................................................................................................................................19
REFERENCES..............................................................................................................................................20

INTRODUCTION
Every organization required to prepare effective plan so that they can maintain the
effective performance by which they can enhance the overall growth of the company. Planning is
analysed as the most influencer process by which they can increase the productivity and
profitability of the business. There is different type of business such as startup micro small
medium and large scale business and every organization emphasize on preparing strategic
planning by which they can enhance the overall success of the company. Strategic planning is
important by which taken recognize their brand in the large market. Better health bakery which is
the social enterprise bakery that is based in Haggerston, London. Now the company is planning
to do new product development in which they introduce the bakery cup cake with the addition of
sweet potato so that the immunity system of the individual can be boosted. This report will
analyze growth opportunities and using and Ansoff growth vector matrix in order to analyze the
growth opportunity in the new market.
Investing in the Future (Part 1)
TASK 1
Analyse key considerations for evaluating growth opportunities
It is important for the all firms whether it can be small or medium format require effective
planning for their growth. In order to sustain at the whole market, organization are using specific
model by which they can have the appropriate opportunity for the development and growth.
After the impact of Brexit uncertainty, there are various business which get affected in the
United Kingdom and the companies looking forward in order to effective planning for their
development and better health bakery planning to use the specific model so that they can expand
their business and enhance the growth rate. The bakery is using different model such as BCG
Matrix and McKinney model. These models are explained as follows:
Boston Consultancy Group Matrix
BCG matrix is considered as an effective planning tool that helps in graphical representation
of product and services by which the company can also analyze the investment inventory and
other resources within the organization. This is also known as growth matrix that is helpful in
providing growth opportunity to the firm. This Matrix includes the four elements which are dog

cash cow, star and question mark. All these elements are evaluated on the basis of market growth
and market share as per their low and high criteria. Veterinary cream is using this Matrix in order
to analyze the growth opportunity and growth status which is being explained as follows:
 Dog - . It is the stage which contains that product of the company watch low market
growth rate and having low market share in comparison to their business in the
marketplace. It is not necessary to invest in the business because they are generating low
cash returns and it is the fact that some dogs can be good for longer period of time as they
can provide some synergies for another brand. The strategic choice of this stage is
retrenchment, liquidation and divestitures (Cleberg, 2019).
 Question Mark - this stage is also known as problem child who is related to the growth
rate of the product is high and the having low market share. Basic? Require consideration
as they contain low market share for the growth which is consuming high amount of
money and include losses. Strategic choices are considered as a market penetration,
market development and product development.
 Star - it is the stage which is related to the aspect in which high market growth rate and
high market share is there and star comes in both the categories like cash user and
generator. Strategic choice of these days is vertical and horizontal, market and product
development (Deng, Ma and Zhang, 2017).
 Cash cows - it is also called as Milked because it is considered as the most profitable
brand it determines the low market growth rate and high market share. Organization
received cash from the cows that invested into stars in order to provide support for their
future.
McKinney 7 S Framework
It is the framework that is management model h s bean introduced by the Robert H.
Waterman & Tom peters in 1980. It is the important model which helps in enhancing the overall
effectiveness of the organization that includes the seven factors which needs to be aligned and
reinforcing according to the success of the company. These elements are divided into two parts
like soft element and hard element which are explained as follows:

Hard elements
 Strategy - It is the important element which help in providing strategies for making the
organizational plan by which the company can maintain their specific position in the
market and also achieve competitive advantage. Structure - The main concern of this element is to determine how the companies organize
their structure which includes team department that can helpful in attaining the
organizational goal. Companies follow the organization structure so that all the
applications can be effectively of treated with proper consideration of rules and
regulation (DODDS, DIMANCHE and SADOWSKI, 2018). System - the element which define that all the time are performed in a systematic manner
so that employees can do their job with the consideration of discipline and establish
effectiveness in their working.
Soft elements
 Shared value - these are the elements which are related to the culture in which all the
employees are share their specific values and respect each other believes and thoughts.
Organization needs to maintain all the ethical consideration within the workplace.
 Skills - as per this skill, it is evaluated that there must be proper skills and competencies
associated with the employees so that they can contribute in improving the market growth
of the company. Style - It is the element which is concerned with the leadership style which is been
adopted by the business. All leadership style, participated democratic supportive leader
style are usually followed by the leader.
 Staff - the main focus of this element it's to consider their employees and their skills so
that the company can effectively established good brand image in the market which
contribute in the growth and development of the company (Friedmann, 2020).
Evaluate the opportunities for growth applying Ansoff growth vector material
As per to achieve more success, there is a requirement of specific opportunities so that
businesses can effectively consider the growth of their organization. Entrepreneur need to pay
more focus on their internal & external operations which can help full to generate more

opportunities for the development of the company. Better health Bakery is small social enterprise
which operates their business in London and also providing high quality of services to their
potential customers. Due to the uncertainty of the corona pandemic, bakery performance
fluctuate so now the main target of Bakery is to rebuild their market position so that Bakery can
effectively maintain all the losses of the pandemic. To analyze specific growth unfortunately
bakery need to follow Ansoff Matrix model there are four strategies are includes in this model
which are discussed below -
 Market Penetration - The main concern of this growth strategy is use existing goods &
services into existing marketplace. With the help of this growth strategy, businesses can
effectively obtain high level of market growth rate. This strategy is more beneficial for
the small enterprises because it requires low cost rate & less rime (Gu alini, 2018).
 Market Development - The prime motive of this growth strategy is to utilize existing
goods & services to enter into new market. This strategy is helpful for the business
because company use existing goods & services which are already considered strong
positioning at the whole marketplace so it is easy for the company to accomplish more
market growth rate. This strategy is beneficial for the business expansion so that
company can effectively gain more profitability & reorganization into the new market
place.
 Product Development - This strategy determine the launch new goods & services into to
existing marketplace. This strategy is useful to create influence brand value of the
enterprise. Better Health Bakery can consider this growth strategy which can help full to
improve the level of market share & also market growth rate. Better health Bakery
conduct specific market research and generalized that there is a requirement of innovative
product which can help you to provide various health advantages to the people of the
London. Bakery conduct market research and analyze that new product and development
is a great growth opportunity for the bakery so now company decided to produce specific
innovative product that is cupcakes prepare with the organic & healthy ingredients & also
use sweet potato which can help full to boost the immune system of customers. This
product development strategy considered as the big development opportunity for the
bakery to evolve their productivity & profitability.