Marshfield Bakery: Growth Plan, Strategic Objectives, and Finance

This report examines growth opportunities for Marshfield Bakery, a UK-based SME, using frameworks like PESTEL, Porter's Five Forces, VRIO, SWOT, and Porter's Generic Strategies. It evaluates growth options via the Ansoff Matrix, considering market penetration and development. The report explores funding sources with their pros and cons, justifying appropriate choices for the business. A business plan is presented, outlining strategic objectives and financial information for growth, along with a detailed investment plan. Finally, it discusses succession and exit options for the bakery, evaluating their advantages and disadvantages to provide recommendations. This analysis aims to provide a comprehensive strategic roadmap for Marshfield Bakery's sustainable growth and future planning.

Planning for Growth

Table of Content
INTRODUCTION...........................................................................................................................1
P1. Examine main factors for measuring growth opportunities in context to company..............1
P2 Evaluate opportunities for growth using Ansoff matrix.........................................................6
P3 Sources of finance that are available for business including pros and cons of each. ............8
M2 Evaluation and justification adopting appropriate funding for business...............................9
PART 2............................................................................................................................................9
P4 A Business plan for the growth of firm that involves strategic objectives and the financial
information...................................................................................................................................9
M3 Develop detailed plan for securing investment and growth, setting strategic objectives and
strategies by using frameworks.................................................................................................11
P5 Provide the succession or exit options to the small business together with its advantages
and disadvantages......................................................................................................................11
M4 Evaluation of succession or exit plan for business and contrast the options and make
recommendations.......................................................................................................................13
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth refers to the strategic activity of the business that allows the business
owners to plan and track growth so that revenue can be earned. It is done by the business
enterprise with the purpose to determine and measure internal and external opportunities for
growth (Stephen, 2018). Through this, various sources of finding which helps business to invest
so that it is beneficial for the organisation in future. The particular report is based on small to
medium-sized enterprise that is named as Marshfield bakery. Small or medium sized business
enterprise have turnover less than £25 million with less than 250 employees. Marshfield bakery
is one of the small medium enterprise based in UK, that are engaged in producing home-made
dish, meal, cookie and seasonal products. The respective bakery have 45 employees and have the
annual turnover of £2 million. With respect to grow in the market, they need proper strategies
and plans. This report includes opportunities for growth to the company as well the various
sources from where the finance can be raised. In addition to it, a business plan and ways through
which they can exit from the market are discussed below.
MAIN BODY
P1. Examine main factors for measuring growth opportunities in context to company.
To measure the growth opportunities, competitive advantage, option for growth and path
development , there are various factor which should be taken in to the consideration. There are various
models and theory to explain those factors which are discussed below:
PESTEL Analysis
This framework helps the organisation to make the strategy by evaluating and identifying the
factors from the macro environment. This helps the organisation to know more about external fac6tors and
gain competitive advantage. The PESTEL analysis of Marshfield bakery are as follow:
 Political – This factor includes government policies, foreign trade policies, tax policy etc. These
factor are basically managed by the government. If the tax rate increases then simultaneously the
price of the bakery products will get increased which can result in loosing the customer base.
 Economical – Inflation rate, interest rate, growth of job and unemployment are included in this
factor. These factor is related to economic condition of the country. There was high inflation rate
after the COVID-19 pandemic which resulted in declining of purchasing power of consumer. This
affected the sale of the Marshfield bakery continuously.
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 Social – These factor include customers attitude, opinions as well as buying patterns.
The customers nowadays wants innovative and dynamic products (Slavova, 2020). In
context to Marshfield bakery, the customers are demanding more healthy products and
they want bakery products which are healthy and good for them. For example sugar can
be substituted with jaggery, cookies and cakes that are made up wheat rather than the
flour can be made by the company.
 Technological – This factor includes the new ways of producing, distributing goods and
services etc. By the use of technology, respective company has planned a hi tech structure
that gives more focus on the customers. Organisation can also enhance customers base by
providing free Wi-Fi facility.
 Environmental – Pollution targets, carbon foot prints etc are involved in these factor.
These aspects of framework are related with the environment. Marshfield bakery uses
three R's which are reduce, recycle, reuse. Through this, they do not make those products
which affect the environment.
 Legal – These factor includes health and safety, equal opportunities, consumer laws and
rights etc. These factor deals in rules and regulation that are imposed by the legislative
bodies (van, Ramos and Sousa, 2021). So, Marshfield bakery follows all the rules and
policies that are imposed by the legislative bodies in order to conduct the business in an
appropriate manner.
PESTEL framework : Strength and Opportunities for Marshfield Bakery -
STRENGTH
 Through PESTEL analysis framework Marshfield bakery help to understand the external
factor through which risk and opportunities can be identified.
 This framework also helps respective organisation to develop and implement the
strategies so that they can achieve the targeted goals.
OPPORTUNITIES
 By adopting latest and updated version of marketing means and method such as social
media, Marshfield bakery can increase their customer base.
 As customers are shifting towards healthy products. If the respective company produce
healthy as well as eco-friendly products then it will create opportunities for them to gain
more profits.
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Porter's Five Forces Model
This model helps the company to understand and gain competitive advantage within the
market. In respect to the Marshfield bakery Porter's five forces model are as follow:
 Competitive rivalry – Marshfield bakery have lot of competitors in the market as
bakery industry is one the growing industry. Being a small and medium-sized enterprise
it has lot of competitors due to which they are unable to maintain large customer base
that is affecting their profitability also.
 Bargaining power of buyers – Marshfield bakery is concerned more in producing
heathy bakery products by keeping in mind the needs and wants of customers. So this
assists them to give more focus on customers as well as enhancing base of customers.
 Threat of new entrants – UK government has implemented lots of restrictions while
issuing license for the business (Gao and Li, 2020). So, its difficult for other's to make
entry in this field.
 Bargaining power of suppliers – In UK, Marshfield bakery is one of the leading
manufacturers,so by taking advantage of it they have lots of suppliers and rates are also
charged nominal by them.
 Threat of substitute product – Due to the lot of substitute products available in the
market, Marshfield bakery has kept it's price low with the purpose to gain competitive
advantage.
Porter Five Forces Model : Strength and Opportunities for Marshfield Bakery -
STRENGTH
 Marshfield Bakery can take help of this model in order to identify the strategies which
cab be used by them with the purpose to grow in market.
 To gain competitive advantage Marshfield bakery can evaluate it's operations through
this model.
OPPORTUNITIES
 If Marshfield bakery will be able to add some uniqueness in it's products, they can be
able to acquire large number of customers.
 Marshfield bakery can frame new plans and strategies in order to achieve competitive
advantage.
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VRIO Analysis
Valuable
 The essential element for client retention is customer services or after sale services.
 Marshfield bakery can become valuable by providing good taste products with high
quality at lower prices.
Inimitable
 Making healthy commodity is easy to inimitable, but to give a good taste is not.
 Lot of expenditure is required develop Hi- tech indoor.
Rare
 Marshfield bakery is using healthy material to produce bakery items so that it tastes good
(Arshba, Galter and Nikonova, 2021).
 Respective company is providing hi- tech interior to attract large number of customers.
Organised
 The bakery keeps on trying to improve customer satisfaction so that they can gain loyalty
as well as strong customers base.
The surroundings of bakery is very relaxing.
VIRO Analysis : Strength and Opportunities for Marshfield Bakery -
STRENGTH
 With the help of this model, measuring and eliminating extra cost and resources is
possible for the respective company.
 Marshfield bakery can discovery out advance content which can't be easily imitated.
OPPORTUNITIES
It is manageable for Marshfield bakery to be a market leader.
SWOT Analysis
Strengths Weaknesses Opportunities Threats
 Before
producing
any product,
respective
company
 Marshfield
bakery have
limited
consumer base
because it
 By using
different
marketing tools
and techniques
Marshfield
 In this
industry
there are
many
competitors
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keeps in
mind the
needs and
wants of the
customers.
 Marshfield
bakery has
adopted
unique
structure
which
assists
them to
attracts large
number of
customer.
provide its
services to
limited places
(Bonfante and
et. al., 2021).
 Due to high
competition in
this industry
respective
company's
performance
might get
affected.
bakery can
create
awareness
among the
customers.
 Marshfield
bakery can
increase
increase the
sales by using
healthy
ingredients in
its products.
available in
the market
who can
imitate there
products.
 As the
products
available in
these
industry are
perishable,
so its very
difficult to
maintain
products for
a long period
of time.
STRENGTH
 This framework helps the respective company to identify and evaluate internal
operations.
 By evaluating internal operation Marshfield bakery can take timely action against the risk
and take proper advantage of opportunities available.
OPPORTUNITIES
 By adopting proper machinery, Marshfield bakery can increase its customer base. Through this framework, respective company can make long term strategies and can
achieve the goals.
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Porters Generic Frameworks
These framework helps the organisation to pursue competition among the market. The
porter Generic framework of Marshfield bakery are as follow:
 Cost leadership theory – This factor gives focus on reducing the cost of the
organisation. By expanding the business in other countries Marshfield bakery can reduce
the cost of the products. Through this the company can increase its customer base along
with this they have to produce large number of products so that they can attain scale of
economics.
 Differentiation theory – This factor helps the organisation to increase its customers by
producing or adding some uniqueness in the product (Peixotode, Alcantara and Ferreira
da Silva, 2021). Here the Marshfield bakery can do this by adopting latest and updated
version of the machinery so that it can gain competitive advantage in the market.
 Focus strategy – In this factor company gives focus to some specific area. By adding
some more new items to its menu card can help the chosen company to get valuable
position in the market. segment is being targeted under this strategy.
 Differentiation Focus – This factor assist in identifying and evaluating the needs and
wants of the customers. By listening to the customers feedback, Marshfield bakery can
enhance its customer base.
STRENGTH
 The chosen company can lead the market with the help of this framework.
 In order to formulate the strategies Marshfield bakery can use effective cost method
techniques.
OPPORTUNITIES
 Respective company needs to diversify on order to increase the revenue.
 With the purpose to grow rapidly, Marshfield bakery can make use of technology.
P2 Evaluate opportunities for growth using Ansoff matrix.
Ansoff matrix is the framework that helps business organisation to make strategic planning in
order to identify the opportunities. In context to Marshfield Bakery these framework are
explained as follows:
 Market penetration: This strategy give more focus on increasing the sale of existing
products in the same market where it is operating already (Barrett, 2022). Marshfield
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bakery can use this strategy to gain more profits and can provide offers and discounts to
its customers. Through this strategy the company will be able to generate more profits as
well as can increase its customer base. But, here company might face loss, if they are not
satisfied with the new innovative products.
 Market development: This strategy help the company to give more emphasise on
growth of existing products so that they can gradually increase their market share. The
chosen company can use this strategy by expanding business in fresh location so that sale
can be increased by entering into new market. This strategy helps the business to grow as
well as they can do foreign investment. But this can involve lot of risk and cost along
with this it can be difficult for the organisation to understand the need of customers in
new market.
 Product development: in this strategy company can introduce new products in the
existing market. This assists the organisation to gain market position in order to build
strong brand image. Marshfield bakery can bring new products in the market in order to
reduce the losses. Through this, customer attention can be increased as well as
competitive position can be achieved in the market. But if company don't give focus on
competitors strategy it might lead to failure of business.
 Diversification: through this strategy the company enter into the new market with new
products or services (Sudharshan, 2019). In order to increase the market share
Marshfield bakery needs to get potential buyers in the large market. This strategy helps
the company to capture wide range of products. But in this, the company need to make lot
of investment which is considered as riskier option for the organisation.
From the above discussion it can be analysed that business plan of action plays an
essential role which also assist in the development and enlargement by acquiring most of the
available opportunities that are acquirable in the market. Marshfield Bakery can make use
market development strategy so that they can grab the large consumer and meet their needs and
wants.
Discuss on the options for the growth in order to understand the competitive advantage.
In order to lead the market and provide better products to the customers in wide market, product
development is considered as less risky option. By understanding the needs and wants of the
customer customer Marshfield bakery can increase its long term sustainability in the market.
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P3 Sources of finance that are available for business including pros and cons of each.
The overall functionality of the business depends upon the finance, which plays an
important role. If the company have sufficient amount of funds then it leads to the smooth
functioning of the operation as well as business (Chen, Liu and Li, 2019). The main concern of
every business is financial security. Certain funds which Marshfield bakery can implement are
explained below:
Bank loans: This method is considered as one of the best method to raise the funds from
the bank and needs give short term as well as long term interest rate. The one who takes the loan
is responsible for repaying the entire amount. The payment of whole amount is doen through
monthly instalments.
Benefits
 In these aspects the loan are repaid on
the demand rather than fixed term.
 Through this method, interest are paid
by the one who takes the loan and
commodity is being shared with the
bank.
Drawbacks
 This method involves huge risk as loan
are granted against assets of the
company.
 If the company faces financial shortage
then they would be unable to repay the
loan and further become ineligible for
the future loans.
Overdraft: In this type of sources money is raised in the form of credit from the bank
and when the loan is given by the bank and bank account dropout to zero (Corallo, Lazoi and
Lezzi, 2020). This type of loan is for short term which is offered by the bank to individual as
well to business.
Benefits
 The access of funds is availed through
the facility of overdraft.
 In this method no charges are taken on
the monthly basis by the bank.
Drawbacks
 If the amount of overdraft exceeds the
authorized amount then the bank takes
extra amount.
 Individual is entitled to pay the
agreements fees in case of extension of
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overdraft
Crowd funding: It is the type of funding which involve money is being taken from the
small dimension from the various people with the help of computer network. It is the kind of
alternative which is having vast networking by the website of crowed funding.
Benefits
 As the funds is being raised in faster
manner so no upfront is involved.
 The business ideas is being given with
the reaction of the people as if they
invest in different business.
Drawbacks
 It is considered as difficult method of
initiating funds with respect to the
tradition method of fund raising.
 It requires lot of hard work and research
before introducing the final task.
From the above discussion, Marshfield Bakery can adopt the bank loan as it is one of the
easiest method of acquiring the funds with little formalities. By using this method respective
company can have the long term investment so that they can spend in their different operations
which is being carried out in an effective manner.
M2 Evaluation and justification adopting appropriate funding for business.
In order to run the business in effective manner, finance is one of the most important
aspects of the business. Marshfield Bakery can use the bank loan as it is includes less interest
rate and ensures the long term sustainability.
PART 2
P4 A Business plan for the growth of firm that involves strategic objectives and the
financial information.
Business plan is outline which assist the business to make strategy and plan so that they can
have advance shift in productivity as well as performance of the operation. Through this,
business can find growth opportunities and Marshfield bakery can make lots of profit as well as
in crease their customer base. This business plan is made with the purpose to have innovation
which leads long term sustainability.
Executive summary Marshfield Bakery is one of the small business in bakery industry
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which is planning to expand their business with the purpose to met their
cost as well as future loses so that they can assure smooth functioning.
So, they are making strategy to develop new products which are healthy
and can be customised according to the demand of the customer. This
can lead the have better profitability also and develop good brand
image among the market.
Mission To provide the quality bakery products to their customers with the vast
variety of flavours through which they can attract and retained their
customers is the mission of the company.
Vision To become the market leader across different countries as well as to be
the second baker who is meeting the customer needs and demands is the
vision statement of the company.
Strategic objectives  To increase its customer base as well retaining them.
 To increase the gross revenue by 30% in next 4 months.
Strategic option of
growth
In order to expand the market base, the company is working on
offering new products to their customers. Marshfield Bakery can use
product development strategy by which they can get huge number of
buyers and set their high goodwill in the market. This is also leads to
increase in loyalty of customers.
Marketing strategy The plan of action or conducting the marketing of the new products,
Marshfield Bakery can use different marketing tools and techniques
such as pamphlets for promoting their brand name and aware its
consumers. Moreover, they can use the electronic mail and social media
platforms through which they can reach to their buyers and offers new
products by Marshfield Bakery
Source of funds There are different choices that are accessible for Marshfield Bakery
with the purpose to increase finances for acquiring new products. Out
of all Marshfield Bakery can use the bank loan also that can help them
in raising funds with less interest rate which can help in getting funds.
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