Business Growth Plan: Analyzing Funding and Exit Options for Almondy

This report analyzes growth opportunities for Almondy Bakery, a UK-based enterprise known for its gluten-free desserts. It evaluates these opportunities using tools like Porter's Generic Strategies, PESTLE analysis, BCG matrix, and the Ansoff matrix, focusing on market penetration, development, product development, and diversification. The report also assesses potential funding sources, discussing their benefits and drawbacks, and designs a business plan for growth that includes financial information and strategic objectives. Finally, it examines exit and succession options for the small business, comparing different operations and making recommendations for Almondy Bakery's future.

Planning for growth

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................4
P1 Analyse the key consideration for evaluating growth opportunities and better justify this
consideration within the organisational context.................................................................................4
M1 Discuss the option of growth in analytical framework to demonstrate with understanding
competitive advantage.......................................................................................................................5
P2 Evaluate the growth opportunities and applying within better Ansoff matrix...............................6
TASK 2.................................................................................................................................................7
P3 Assess the potential sources of funding available towards business and discuss benefits and
drawback of each source....................................................................................................................7
M2. Evaluate potential sources of funding and justification for adoption of an appropriate source of
funding..............................................................................................................................................8
P4 Design of business plan for growth along with financial information as well as strategic
objectives for scaling business...........................................................................................................9
M3. Evaluation of source of funds and justification of adoption of different source of funds in
organisational context......................................................................................................................10
P5 Assessment of exit and succession option for small business along with explaining benefits and
limitation for each option.................................................................................................................11
M4. Evaluation of exit and succession option of small business comparing to different operation
and making recommendation...........................................................................................................11
CONCLUSION...................................................................................................................................12
REFERENCE......................................................................................................................................13

INTRODUCTION
Planning for growth is known as the effectiveness of the business while using various
tools and techniques in relation with the business and can also be used in making effective
plans in order to achieve high profitability and productivity level. Each business makes plans
for gaining external opportunities by using available resources to fulfil the aim and objective
effectively. This is the process of making an optimum use of available resources and used in
the process of planning. In this report Almondy bakery is selected which is located in UK and
this enterprise serves a unique patter of desserts and always focuses on its better taste and
quality. They also focus on health-conscious products using in there products as they do not
use flour and makes the cake gluten free and with an good quality and affordable range. This
report is made to analyse and evaluate the growth opportunities in the context of organisation.
Opportunities are also evaluated by the using Ansoff matrix. This report also involves various
funding sources which is available in the market in order to make the business better and it
also involves the drawbacks and importance of individual resources. This report also involves
the business plan which involves the strategic aims and financial process in order to succeed
in market.

MAIN BODY
P1 Analyse the key consideration for evaluating growth opportunities and better
justify this consideration within the organisational context.
The main purpose is to remain in the competitive market and with the superior
position and along with this with an effective dimensions and strategies it has been used to
eliminate the threat and to uplift more upcoming opportunities which will in result increase
the market share of the organisation(Sparkman, 2018). It can also be treated like barrier and
catalyst which further can be removed and for he better and effective competitive advantage
and benefit various effective strategies has been used and adopted by Almondy bakery which
is essential and required for the better growth and expansion of the organisation. It will also
help is maximising the profit and also mapping the effective market threats which can be turn
into opportunities. There are some of the strategic tools which is used by Almondy that are
porter generic ana it has analysed below.
Porter Generic model:
Cost leadership: According to this strategy te company should ready to make price changes
at lower cost or they will alright it by selling the goods and services with an discounted rate
in the industry. This is considered as the effective strategy in the business as it increases the
sales and the revenue of the company and allows them an better competitive advantage within
the market place in an effective manner(Lee, and Jung, 2020). As Almondy uses this strategy
in order to earn maximum profit and to deal with the market threats.
Differentiation: According to this strategy this helps in improving the overall profit and
sales of the organisation with an high difference with other competition in the marketplace
and due to this an competitive rivalry can be deal in an efficient manner with an appropriate
strategies. As Almondy also produces home make products like cookies and cakes which
allows them an competitive advantage and also make a special and different place for this
organisation.
Cost focus: This strategy is used in obtaining the business focus for an market segment to
build the target area in order to enhance the customer base of an organisation. Due to this
strategy Almondy can be effective expand there business and can also improve these sales
and revenue rate in an effective manner.
Differentiation focus: This strategy is considered as the mapping of strategy which is used in
making better offers in there goods and services in lower and reasonable cost and with and
effective targeted area(Lynch, Nel, and Binns, 2020). Almondy is using this strategy in order
to tackle the robust and they also opt better marketing strategies and controlled measures in
order to increase the productivity and profitability level of the business.
From the above analysation of porter generic it has been concluded that Cost differentiation
would be the perfect strategy in order to achieve high segment in the industry and it will also
help in increasing the customer base and the productivity level of the organisation.
PESTLE analysis

PESTLE analysis is the strategic tools which is used to analysis the external environment of
the organisation which can affect the business operations positively or negatively. The
analysation of PESTLE is described below.
Political factors: These factors involve the rules and the policies with the involvement of
political stability which is allocated between the country and it is imposed by the
government. The government of UK helps in the business to expand in the new market but
with this uncertainty factors also come along with it as Brexit had affected negatively due to
which UK is not allowed to trade in European Union and due to this companies are
decreasing there share and also loosing there customer base.
Economical factor: This factor involves the economic factors which are linked with the
business and government that involves employment rates, international trades with new rules
and regulations, purchasing power, GDP rate and currency fluctuation(Australian
Government, 2019). Due to involvement of Brexit it becomes challenging to trade
internationally as Almondy is not getting the return on the investment and it is becoming
difficult to them to operate there business operations and targeted audience.
Social factors: These factors involve the dimension which involves age, value, demographic
areas and gender. This sometimes make a huge difference in preferences. As in UK there are
modern houses with modern personality person which automatic creates an immense trait of
achieving opportunities for Almondy bakery and it will be also helpful in the expansion of
the bakery which will also increase the productivity level and it will also become the
popularity influencer in UK.
Technological factor: This factor involves the latest and newest use of immense technology
to achieve a high market power in the industry. In UK there are various technology
advancement which allows a better scope of a business in an industry and due to which it also
achieves an competitive advantage in the market(Syssner, and Meijer, 2020). Almondy has
much more better choices and they can bring innovation to their bakery by using the latest
technology in order to attain sustainability in the market.
Legal factors: This factor is associated with the laws and policies which are imposed by the
government and can impact in the business operations. To avoid these law suits and high
enforceability which is involved in this factor can be reduces by flexible business operations.
Almondy can use property services as that only affects the legal factor and it can be managed
in an effective manner.
Environmental factors: This factor involves the practices which is done to balance
sustainability in the environment. This can be done by using effective environmental
measures. As Almondy uses various practices like using paper straws, using innovative paper
plates and they only uses reusable items in their bakery in order to reduce the wastage and
make the optimum use of resources in an effective way(Cobetto, Aubin, and Parent, 2018).
These measures make the organisation last for long run and also allows long term profit to
them.

M1 Discuss the option of growth in analytical framework to demonstrate with
understanding competitive advantage.
For the better growth and expansion of the organisation various strategies is been used
to make a better competitive advantage and for shaping a strategy in an effective form. Due
to this BCG matrix is been used as a tool to analyse the various opportunities in an
organisation.
Question marks: This is the strategy which is used in order to analyse the products whose
market growth is high but has the low market share. As Almondy has many products which
have high market growth as handmade cookies but it had low market share. As everyone has
not a same taste which makes a difference in market share.
Stars: In this strategy the product will have high market share with an high market growth
which indicates the product which is customer oriented. Almondy bakery’s cake is famous as
they designs it in an innovative way which makes a difference and everyone desires to eat
with the same taste and it also makes a loyal customer base.
Dogs: This strategy describes that the products which have low market share and low market
growth. These are some products which are only made to grow in the industry but
unfortunately it does not happen. But its market share and growth can be increased by
advertising so that product can be introduced by the customers and it can also take place by
collaborating the highest market share which the lowest market share product this will help In
increasing the customer base of that specific product.
Figure 1 Planning for growth,2022

P2 Evaluate the growth opportunities and applying within better Ansoff matrix.
This is also considered as the strategic tool which makes the business expansion plan
better and in an effective form to gain an high profitability and productivity level in the
organisation. This tool is also known for making better strategies in order to grow and expand
in different regions. This matrix is divided into four segments that is described below.
Market penetration: This is a strategy which is used by an organisation in order to perform
better in an industry to earn maximum profit(Ravindra, 2020). In other words, it can be
describes as selling of an existing product or service in an existing market or industry, This is
beneficial for the business who wants to expand there business to meet the requirement of
customers. It would be turn effective for Almondy if they fulfil the requirement of customer
to satisfy them In an efficient manner,
Market development: This is a strategy which is profitable for the business who wants to
tap into a new market for expanding there customer base and also for increasing there
profitability level. As Almondy is using this strategy to grow globally and with the expansion
an company gets an higher opportunities to get a better sustainability in an competitive
industry.
Product development: This is also considered an strategy and which is used by the
organisation when they wants to introduce a new product in an industry(Kroen, 2020). As
Almondy is stepping to involve more healthy conscious products in order to achieve
maximum profit and increase customer base as now a days people are getting more health
conscious and switching into organic product so this would be the better step in order to earn
maximum profit in an industry,
Diversification: This strategy always plans for creating a new business in new market
without any offering and only attracting through there quality and customer base of the
product. As Almondy has a high risk of operation failure as it a small enterprise and
immediately switching it in a new segment will be challenging for the business.
Evaluation
Through the above analysation the perfect strategy for Almondy bakery would be Product
development as due to this they will get an huge customer base which will lead in high
productivity level and make a huge profit in an organisation.
TASK 2
P3 Assess the potential sources of funding available towards business and
discuss benefits and drawback of each source.
There are various methods which can be used for gathering the funds for an
organisation and that funds can also help in expanding the business in an effective manner.
The various funding methods which Almondy bakery can use is described below.
Internal source of finance
This source helps in gathering the amount from the internal dimensions within the
organisation such as selling of an business asset and it can also be used in utilising in the

earning(Lang, Deng, and Li, 2020). There are also some advantages and disadvantages of
using this source of fund.
Advantages: This source is using considered effective In nature and by this fund an company
can also generate liabilities. Almondy bakery can opt this funding method for its retained
earnings as it is also considered as highly flexible.
Disadvantages: As Almondy bakery is an small enterprise and attain less profit as compared
to large enterprise so it can also occur in bankruptcy and which be migrate by using a huge
amount of profit of the company.
External source of finance
This source is used for better financing with the use of external sources which are financing,
debenture, venture and bank loan. Almondy bakery has many alternatives options of external
source which can be used and can benefit in the process of expansion. The external sources
are described below.
Bank loan: In this external source of funding an loan is taken from the bank with an legal
agreement of repaying it with some amount of interest.
Advantages: This can be useful for the small enterprises which can take a loan of acquire
amount in order to expand the business and then with earning a good amount of profit started
returning it with interest amount(Marais, and de Lange, 2021). As Almondy bakery is having
a prominent position in an industry and due to maintain their image they have to repay the
amount in time.
Disadvantages: Sometimes due to this source of fund it burdens in the organisation and sue
to which it will receive less amount of profit in order to repaying it. As this source has rigid
policies and non or delay repayment can create a negative image in the market.
Bank overdraft: This is known a source of credit facility which is provided by the bank and
allowed to their potential clients as this is a process in which an company or individual can
use additional bank balance in the form of sum interest(Li, and Yeh, 2020).
Advantages: This known as the most flexible source of funding as it high in ease and also
requires less process in getting the funds, As Almondy bakery can obtain funds from this
source and by this organisation can also record and track their funds which is used in
financial trades.
Disadvantages: As this source of funds involves high rate of interest and due to this
profitability level can be reduced and can also result in a negative outcome. Sometimes bank
also ask for repaying the amount in a short span of time which make a challenge for an small
enterprise organisation.
Crowd funding: This is a method in which funds are collected through the pool of people,
this is known as crowd funding. The advantages and disadvantages are describing below.
Advantages: This will turn helpful to Almondy bakery as it creates a huge responsibility and
opportunity as it also helps in increasing the customer base. This method also allows
feedback which also helps in an expansion plan with an better relationship with customers to
fulfil the needs and requirements of customers.

Disadvantages: Sometimes this creates an negative image in the industry as if the plan fails
and it also had high risk as they can also faces huge loss.
M2. Evaluate potential sources of funding and justification for adoption of an
appropriate source of funding.
There are various options of funding in an organisation and they can use it in an
effective way as for Almondy bakery Crowd funding will perform well as this fund had vital
options in creating funds from the stakeholders(Hu, Huang, and Li, 2019). This is an effective
funding method as this also attracts the customers and help in managing business operation.
By using this source company will have an enough amount of funds in order to expand the
business.
P4 Design of business plan for growth along with financial information as well
as strategic objectives for scaling business.
Executive summary
Planning for the expansion and growth is important for an organisation as each business is
linked various task and strategic process. In an organisation a systematic strategy should be
followed with an appropriate use of resources in an effective manner. Almondy bakery is
using an digital technology to differentiate there goods and services.
Strategic purpose: Almondy bakery main purpose is to expand their business and earn
enough amount of profit. As their main aim is to increase the productivity and profitability
level of an organisation and achieve objective goal in an effective manner that can reduce the
overall cost os an organisation and which also lead in increasing the customer base.
Vision: Vision of Almondy bakery is to serve customers better quality and fulfil there needs
and requirements effectively.
Mission: Mission of Almondy bakery is to enhance the marketing share and expand it at
global level.
Goals of business:
An organisation focuses on two goals short term and long term. The short terms goals of
Almondy bakery is to serve the better quality of products and make better relation with the
customers(Holz-Rau, and Scheiner, 2019). This company’s long-term goal is to increase the
loyal customers and expand the business globally which various effective strategies.
Business objectives:
1. Increase Customer base with 5%
2. Expand the business globally
Marketing Information
Product: Almondy bakery serves various kind of products which involves flavoured cakes,
biscuits, handmade health cakes and energy bars to the customers(Wey, 2019).

Price: Almondy bakery allows the products at reasonable and affordable price as this bakery
is considered as a budget friendly bakery.
Place: This bakery is in a prime location so that customers can easily reach to the location.
Promotion: This bakery adopts various advertising and marketing techniques which
promotes there products and services effectively.
M3. Evaluation of source of funds and justification of adoption of different
source of funds in organisational context.
For the better and efficient working of an organisation as an enough amount of fund is
required and to utilise it in an effective way, it is important to arrange and use the fund
efficiently in order to prepare an trial balance and budget which involve all the expenses like
income and loss which an company is going to improve and balance the monetary
capabilities(Pinnegar, Randolph, and Troy, 2020).
Source of funds:
Bank loans: Bank loan is the method by which funds can be raised of an organisational it has
ease terms and conditions but it creates an burden of interest rate in an company.
Angel investor: These are the investors which servers funds to the company and gives
suggestions. This also can exchange the shares of company.

Figure 2 Planning for growth ,2022
P5 Assessment of exit and succession option for small business along with
explaining benefits and limitation for each option.
As in an organisation business plan both plans are included which involves both exit
and succession plan. There are various options which have its own benefits and limitations.
Merger: This strategy is mainly opted by the small businesses which get the opportunity to
combine with other business. In this it is an agreement which merges two business to form a
new one(Dodds, Dimanche, and Sadowski, 2018). As this helps in expanding the business
easily while sharing their resources by each other and this also take physical and human
resources.
Advantages: This strategy helps in increasing the market share of individual business and
also helps in reducing the operational cost of an organisation.
Disadvantages: Due to this the pricing of individual product and services increases and it
also creates an communication gap in between the departments of the organisation and also in
two companies.

Employee Buyout: This is a strategy in which top management if offering the packages to
the different employees in order to receive various benefits and productivity level by the
employees in return of the prior activities.
Advantages: This gives motivation to the employees and also increase their efficiency level
and improves the performance in an effective way(Park, and LaFrombois, 2019). This
strategy also reduces the competition level in an company.
Disadvantages: This strategy usually increases the burden of debt over the businesses and it
also results in the loss of their key personnel.
M4. Evaluation of exit and succession option of small business comparing to
different operation and making recommendation
Succession is the plan which identifies and also develops the team leaders to replace
an existing leader of an organisation or the employees who is leaving the company(Morison,
2020). This is mainly a process which increases the revenue and the average sales of an
organisation and also improves business financial position. This increases the customer base
of a company and maintains a position in the industry.
Initial public offerings: In this an company is capable to sell the shares of company into
public which helps in increasing the capital but this process is known as the complex process
as this takes a lot of effort, time, planning and strategies.