Planning for Growth

This document discusses key considerations for evaluating growth opportunities, methods of funding for business, designing a business plan, and exit options for SMEs. It covers topics such as competitive advantage, Ansoff's Growth matrix, funding methods, and strategic alliances.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK1.............................................................................................................................................3
Key consideration for evaluating growth opportunities ..............................................................3
Applying Ansoff's Growth matrix- It includes four strategies names as, ...................................6
TASK2.............................................................................................................................................7
Methods of funding for business..................................................................................................7
TASK 3............................................................................................................................................8
Design business Plan....................................................................................................................8
TASK 4..........................................................................................................................................11
Exit or succession option for SMEs...........................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Small and medium enterprise/ Social enterprise are business that has specific objectives
which turn out to serve its primary objective. These are the enterprises that seeks to maximise
profits of company which in turn maximise benefits to environment and society as whole. These
are the organisations that apply strategies to maximise improvement in relevant areas such as
social, financial and environmental well being. The Konditor is made to order bakery specilaises
in personalised cookies and cakes in UK where it spreads mission of spreading joy and happiness
by providing quality cakes and cookies. The company is founded in year 1993 which has now
expanded its business operation in London.. Present report will address to considerations which
SME's takes into account while evaluating growth aspects, various methods through which
company access funding and its different types. It will also brief on development of business
plan and on the ways on how small business owner can exits from business and its implication.
MAIN BODY
TASK1
Key consideration for evaluating growth opportunities
Growth opportunities refers to areas where companies can invest which determines its
development of company to helps Konditor to grow and earn profits and to gain competitive
advantage . It can be understood better by taking into consideration
Competitive advantage-
It refers to factor that allows Konditor to produce goods and services cheaper and better
in terms of its competitors. It allows generating more productivity which helps company in
generating more sales and margins that are superior as compared to its market rivals.It is an
attribute that enables company to outperform its competitors. This helps company in generating
value for itself and for its key stakeholders (Anwar,2018). To create competitive advantage it is
required that Konditor understand what benefit its products can give to its customers, secondly it

needs to understand target market which relates to customers who are willing to purchase its
products such as Rooms and how it can be catered and lastly to understand competitors
thoroughly by doing detail market research to understand trends in market which serves as
growth for company and helps in building core competencies and utilisation of resources more
effectively.
Company when lacks to get competitive advantage over its competitors invite its position
to be threatened where competitors can take full advantage where it will become hard for
company to regain the throne which can be in terms of large customer base, market share, sales,
revenue and others.
Opportunities of growth of company can also be understood through Porter's Generic strategy
Cost leadership – Company wins in market by appealing its product to customers who are price
sensitive and cost conscious. It is being achieved by Konditor targeting its customers with low
prices as compared to its rivals. This is viable for company as it provides company to enjoy
economies of scale with large production volumes and capturing big market share.
It can turn out to be disadvantage on side of loyal customer loyalty, as customers who are
price conscious can switch to lower price substitute of rivalries if available. It can also generate
reputation of business to produce low quality products in minds of target customers as it is
directly related with low prices charge
Differentiation - It can be appropriate in cases where target market of Konditor is not cost or
price sensitive as market is competitive where needs of customers which are specific are
underserved, and company uses resources in manner that satisfy these needs and are difficult to
copy (Porter’s Generic Strategies,2018).
Company lacking on differentiation strategy may suffer business operations in way where
innovation and creativity hinders which may result company finding it harder to attract future
customers and satisfy there needs,
Focus- This strategy suggest to focus on particular segment which is suitable when Konditor
especially try to avoid and compete in market place. The choice of offering low price and
differentiated products depends in needs of segmented customers and capabilities and resources
of firm which needs to be focused around (Firoz Suleman, Rashidirad,Firoz Suleman,2019.).
When Focus of company is not determined it results in company not understanding what
is being desired by customers and fails to deliver products that satisfy needs/ wants if customers.

PESTLE analysis
Political- It refers to authoritative powers that are possessed by government in industry. It
extends to political stability, foreign trade policy, trade tariffs and others which are being
fulfilled by Konditor for achieving growth and laying down opportunities for same.
Economical- This factors play an important role in performance of economy which can be in
terms of per capita income, GDP, inflation etc. as a result purchasing power of customers
increases which helps in growing business of Konditor
Social- As more and company build relationship with its customers more it attracts and help to
grow business by generating goodwill in minds of customers
Technological- By having high end technology makes the operation of Konditor more effective
which provides opportunities to grow at constant face.
Legal- By compiling to laws and regulation prevailing in certain areas Konditor ensure that its
operations are successfully managed which guide to various growth opportunities of company
(Shtal,2018).
Environmental-By following environmental friendly measures in operations of Konditor it
ensures to generate good reputation in minds of its customers where more customers are attracted
and lays down company to grow in various segments.
Opportunity for growth of Konditor also lies in new product launch which can be
understood better by applying Boston consultancy matrix which has four quadrants
Dogs- It has low market share with low growth rate for company when compared to competitors.
In simple they are not worth investing as they generate low returns for company.
Cash cows – Products have high market share with low growth rate which generates as much
cash as possible (Advantages And Disadvantages Of Mergers And Acquisitions,2018). This
relates in innovations of new products which supports operations heavily.
Stars- This are products with high market share and high growth rate where company needs to
invest heavily to generate positive cash flow.
Question mark- It relates to product with low market share and high growth rate which needs to
be considered the most as it generates consuming large amount of cash and incurs loss and not
succeed even after large amount of investment (Mohajan,2017).
Company needs to closely monitor all above, non compliance to above may result in
facing issues which may turn out to be uncertain and hard to match up with.

Applying Ansoff's Growth matrix- It includes four strategies names as,
Market penetration-It focuses of increasing sales of existing product of Konditor in existing
market which can be executed by decreasing prices to attract new customers, acquiring
competitor in same marketplace and can also be by increasing promotional & distribution efforts.
Product development- Konditor focuses in introducing new products in existing market where
company invest highly in R&D to develop new products, acquire competitors product & merge
resources to meet needs of existing market by delivering new product (Dawes, 2018). It includes
forming strategic partnership with other firms to gain distrinbution channels and attracts large
audience.
Market development- It refers to strategy of Konditor where it acquires new market by use of
existing products where it involves approaches such as catering to new and different customer
segments by entering into new domestic market or can be by entering into foreign market. It is
most suitable in cases where technology of firm can be leveraged into new markets and target
customers are profitable on the end of company (Loredana, 2017).
Diversification- It relates to focus of Konditor in entering into new market with introduction of
new products. This is full of risks where it can turn out to provide the greatest potential for
increased revenues as it opens entirely new streams for generating profits
Advantage of Ansoff's Matrix is it helps company with observing all possible alternatives
which helps company in making right decision as it helps in increasing sales and profits of
company. Disadvantage of this analysis it is difficult to predict as it seems to very simple but in
real life it is hard to predict impact of implementing strategies on sales and profit of company as
market reaction can never be interpreted (Ansoff Matrix,2019).
CONCLUSION
Konditor need to closelymonitor and account to its various macro environmental factors
which can affect its business operations as a result will lead to affecting its competitive
advantage. Company needs to closelymonitor various factors such as cost leadership, focus and
how it can differentiate its products with that of its bakery competitors to survive in marketplace
and nneeds to identify various business opportunities which can helps in expanding in market
share and helps in knowing various areas where it is lacking which will inturn helps them to gain

competitive edge over its competitor and help in surviving in marketplace where company will
be in position to dominate the market share in terms of acquiring large customer base.
Collaborations refers to working practice where individual and companies working
together to achieve common purpose and goals of company.
Mergers & acquisitions – It helps in providing synergy which relates to magic power that
allows increased value efficiencies of new entity formed and takes into consideration high
returns and lot of cost saving (Advantages And Disadvantages Of Mergers And
Acquisitions,2018). Disadvantage of this is employees of small merging firms require exhaustive
reskilling when they go into new firms
Joint Ventures- It helps in providing opportunities for new insights and expertise to Konditor as
now market is way easier to understand as company has better resources for same. Disadvantage
of this could be flexibility could be restricted as when it happens individual business suffers from
loss as focus shifts to joint ventures
Strategic alliances- It allows all parties to reach goals faster, as resources of two companies are
working more effectively and efficiently which helps in expanding customer base. Disadvantage
of this can be it can create conflicts in ownership claims with who has majority of rights over
products, sit yes and many others
Horizontal and vertical integration- By this integration it helps Konditor to capture large
market share as more products less than one brand name results in huge assess to customer base.
Limitation of this is it faces regular scrutiny from government to ensure that laws are being
followed in proper order or not.
TASK2
Methods of funding for business
Running a business need finance and for it company can approach to various kind of
funders such as loans, investors etc. Expanding market, set up new store etc. for SMEs required
money and hence they approach for different kind of fund providers. Konditor is one of rising
small medium enterprise in England and for expanding market, company have various kind of
sources of funders.
Small Business loan
This loan category still remain favourite for opening new business. Low interest with
EMI is one of major profit of this type of fund (Błach, Wieczorek-Kosmala and Trzęsiok, 2020).

Government of United Kingdom started start-up loan for it and in which firm gives various kind
of money to different kind of small sector business unit. It is one of the best scheme that can be
use for starting or expanding market of the firm. It also gives 12 months free mentoring which
again help firm in generating revenue in changing market and expanding business. Amount of
the loan id vary between £10,000 to £25,000 and hence it is sufficient for the organization.
Crowdfunding:
In this fund of the firm is raised with the help of small investors or purchaser of
company's product. Company can start equity for investment and also they can provide reward
who are helping firm in expanding business. There are various kinds of platform that are
available in united kingdom for crowdfunding such as kickstarter, Seedrs, Crowdcube and
IndieGoGo. It is one of effective way of marketing and in this pre-sales of product can raise the
fund for expanding business. However, this cannot be suitable when company have no fame in
front of various kind of investor or in the public.
Business angels
Company can raise fund for business with the help of private investor or wealthy people
who are highly interest in company's business (Vasilescu, 2019). This is one of the best way for
raising amount for expanding market and there will be no interest that company's has to pay
back. However, firm has to pay some amount from the profit. Large number of investor and fund
can be raised with the help of it. Estimated funding for the business can be from £5,000 to
£150,000 and hence large amount of investment will contribute in growth of the firm. This types
of people are available for taking risk by investing in project of other or can supporting
businesses.
Recommendations
Crowd funding is the best for Konditor so that they can have the right funds in the
company which is going to make the company be able to invest in further expansions in the
market. This is important for the organization so that the organization will be able to gain
competitive advantage in the market.
TASK 3
Design business Plan
Executive Summary

Konditor is one of rising SME's in Britain. For started business with the aim to target
customer of London and expanding business. Plan describe a business process for the firm such
as the way in which it targets, raise fund and attract large number of customer’s in United
Kingdom.
Objective:
Company objective is to target large number of customer by providing range of product
with different flavour and also increase customer satisfaction level.
Product:
Konditor provide large number of mouth bakery product such as milk chocolate chunk,
Dark chocolate and in non chocolate it offers coconut, lemon, pea nut butter etc. Company
include various kind of ingredient in cookies such as chunks, unsalted butter, wheat flour, cane
sugar and fresh eggs etc. Product of the firm baked on the same day and hence fresh cookies are
available for large number of British customers. Also it tries to improve in taste of cookies so
that new experiment make change in customer's taste.
4P's of Marketing
Marketing mix again help firm in targetting customers and increase market share in UK.
It helps firm insetting strategy for launching new product or expanding business in different part
of the country ((Bogáth, 2017)).
Product:
Company offer different kind of product such as in chocolate cookies flavours are milk,
triple, double, dark, white chunk and many more. Without chocolate company provide taste of
lemon, coconut, peanut butter, Ginger, caramelized and Oatmeal & Raisin. Product of the firm
are delicious and mouthwatering with large number of exotic ingredients which increase taste of
product. All cookies are prepared on the same day with full hygienic considerations which attract
large number of customer in United Kingdom.
Price:
Prices of the product varies from £1 to £20 and hence can easily purchase by anyone.
Company follow premium price strategy to attract customer (Blanchard, 2020). However, in
festival and on certain occasion it provides various kinds of offer to loyal customers and hence
able to increase market share and expand business. Firm highly focused on attracting customer
by best taste with fixed price and maintain brand image of various kind of product. In expansion

of business at different places firm has fixed premium amount for all product. It hikes profit
share of the firm and also increase loyalty of customer's which help in raining revenue.
Promotion:
Organisation emphasizes on promoting product for attracting large number of customers
in UK. Digital channels such as Facebook, Instagram, YouTube etc. contribute in growth of the
firm and expanding its business ((Baporikar, 2019)). As large number of youth are available on
social media and hence attracting them through digital marketing can be highly profitable for
Konditor. Time to time event and in which various celebrity involve also influencing large
number of British citizens for its product. It also uses media channels such as Newspaper, radio,
magazines etc. To advertise its product as it attract all class and age group people in the country.
Place:
Konditor is located at different places in United Kingdom such as Bath, Brighton, Bristol,
Cambridge, Edinburgh, London etc. Location of the firm are at such places where large number
of customer's can attracted for example near to university, or main shopping area of the city.
Ambience of company's shops highly attractive and creative which support increase number of
buyers for the product. First impression is very import for the firm and hence music, colour etc.
are designed in such a way that enter customer become loyal and hence company can increase its
profit.
Strategy for expanding business:
Konditor use different kind of strategy to attract customers and increase market share in
Britain.
Customer Satisfaction level
Company can increase its market share by focusing on customer satisfaction level. It can
start providing range of product with different flavours and hence able to full fill demand of
changing taste and trend O British customers. Feedback, Survey, review again help in
understanding customer's need and according to that can make changes in product specification.
Promotion
Promotion of product at different places can again help in attracting customer. Konditor
can use digital as well as media channels for attracting customer and expanding business. Large
number of people are available on social media and advertisement on it can highly profitable for

the firm to attracting people ((Uyar, 2019)). Facebook, Instagram, YouTube professional
blogger can help in increasing number of buyers for its product.
Budget
Resource Amount
Raw Material £5000
Salaries £2000
Rent £900
Promotion £1500
Miscellaneous £100
Total £9500
Fund option
Business angel can help firm in increasing financing for expanding business and increase
market share of the firm. Konditor is one of famous organization in United Kingdom and
attracting investor can highly profitable for increasing market share and revenue in changing
business scenario after COVID & BREXIT. In this company only have to share dividend and it
will less risky strategy for expanding business.
Exit Strategy
Keeping business in the family is the best option for Konditor owner for existing from
business. It is one of the oldest organization and hence owner has personal sentiments associated
with it and hence other option cannot be suitable for leaving business. Also, after existing from
firm owner can become mentor and can guide next generation for running the business. New
generation can introduce creativity and innovation in the business which can profitable according
to changing taste and trend of the consumer's.
TASK 4
Exit or succession option for SMEs
It is hard to close the business which was build by long devotion of owner and hence
exiting business need a proper strategy. There are various kinds of strategy available for existing
from business such as liquidation. Keep business in the family, Acquisition etc.

Business succession in the family:
Many owners of the firm do not like to sell out the property that are created from long
dedication but running the business after them will become important. In this strategy owner
hand over the firm to next generation such as nephew, niece etc. It helps in continue the legacy
and also mentor the business indirectly ((Lea, 2020)). This is one of the best way for owner, and
he can remain part of the firm and also guide next generation the way in which it run or
strategies that can be followed.
Positive:
Personal attachment with the property of owner can only opt for this option as it give
chances for mentoring business. Legacy of the firm remain continue which was build by long
dedication and devotion of the owner.
Negative:
New generation might be not good at running the business and on the contrary their will
be higher risk because firm will completely close down if goes into wrong hand. Innovation and
creativity by the new owner not liked by owner and hence difference can be created which
become barrier for running and operating it.
Sell Stake to a Partner or Investor
It is one of the best option for exiting from company, in this owner sells his rights to
partners or investor which already aware about the way in which business run (Sandberg, Sui and
Baum, 2019). Employees and customer are not affected because property purchase by the person
who already part of it. Legacy of the business continue follow by the people and hence owner's
can also become indirectly part of the business by mentoring partner or investor.
Positive:
Legacy of the company remain in good hand and hence there will be no difficulty in hand
over the business. New owner can offer existing one to become mentor and hence indirectly
remain part of the firm. Customers and employees of the firm cannot effect it and hence relation
with them remain strong.
Negative:

Investor and partner are aware about image and business of the firm and in-case losses
they will refuse to purchase. Money negotiation cannot be possible and less amount can be
generated with this process and hence for new business amount cannot be generated.
Business with an IPO
Large amount of money can be generated with the initial public offering in stock market.
However, this method is not suitable for small scale enterprise, and they cannot sale with this
method (Foley, 2019). In this company must have long fame in front of public so that they can
purchase share of the firm. There are large number of documentation required for the firm to
listing in IPO and hence become complicated and time-consuming for small firms.
Positive:
Large amount of money can be generated with this method which can be helpful in
opening new business.
Negative:
This is not suitable for small and medium enterprises and hence not suitable strategy for
them. Company need long fame for Selling by Initial Public offering and increase revenue by
this method. Large number of documents require for listing in IPO and hence time-consuming
and less suitable strategy for the people who want quick money for opening new business.
Declare Bankruptcy
Company can use this method from exit from business or closing down the firm.
However, very less firm go for this method (Wu and Deng, 2020). In this company provide
documents and details that it is unable to run the business because of various reason such as
customer are not available, financial poor etc.
Positive:
In this firm owner can easily close the business without much responsibility.
Negative:
It is very difficult method as firm has to show bank statement, documents that they are
bankrupt and unable to run the operation of company. Relationship from different stakeholder is
suffered by this method if the owner want to open new business for example: investor will not
invest next time for new project.

Business succession in the family is the best option for Konditor for closing the business
as in it owner remain attached to property and legacy of the firm continue by new owner who can
make few changes instead of all. Owner can also mentor process of the firm.
CONCLUSION
From the above report it is being understood that company needs to remain updated and
closely monitor areas and invest in them which generate opportunities for growth and
development of same. Konditor needs to undertake competitive advantage in way which serves
as strength on its part to gain huge market share and able to recognise weaknesses of its rivalry to
understand better what are trends prevailing in market. It is also understood that companies need
to undertake better funding process which defines self sufficiency on part of company to
undertake business operation more effectively and how business plan act as guide in undertaking
activities or steps in near future which serves out to be beneficial. It is also understood from
above report that what are various exit and succession option that can be considered on part of
various SME's.
REFERENCES
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