Planning for Growth: Evaluating Opportunities for SMEs Report

This report provides a comprehensive analysis of growth strategies for small and medium-sized enterprises (SMEs), using the case of Marshfield Bakery. It begins by analyzing key considerations for evaluating growth opportunities, including the BCG Matrix and McKinsey 7-S Framework, and recommends market penetration and development strategies. The report then evaluates growth opportunities using the Ansoff Matrix, highlighting market development as a suitable strategy for Marshfield Bakery. It explores potential sources of funding, essential for business expansion. Furthermore, the report delves into the creation of a business plan, including financial considerations, and assesses exit or succession options for a small business, detailing their benefits and drawbacks. The report discusses various options for growth using analytical frameworks, and evaluates specific options and pathways for growth. Overall, the report offers valuable insights into strategic planning, market analysis, funding, and business development, providing a detailed overview of the key considerations for SMEs seeking expansion.

Planning for Growth

Contents
Introduction.........................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities...........................................3
P2 Evaluate the opportunities for growth applying Ansoff growth vector material..................6
P3- Potential sources of funding available.....................................................................................8
P4- Designing a business plan for growth....................................................................................10
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..............................................................................................................12
Conclusion..........................................................................................................................................14
References..........................................................................................................................................16

Introduction
For the growth of the organization, it requires the business and strategic plan which is
the foremost aspect in the economy. Growth planning is a planned activity of business that
documents business holders in planning and following development in their revenues. The
restricted resources are assigned in the direction of the centred determination for adjusting
changes in the business gripped by digital trouble and separate out from competitors. In the
growth plan strategies and policies are elaborate which is crucial component in profits
generation and customer. The growth plan includes the fundamentals of the business to
display the worth to clients (Butler, D., 2019). There are several sorts of business are running
like start-up, micro, small, medium and large scale and every business requires to emphasis
on preparing of strategic planning so that growth rate can be improved. The proposal is
established for the period of 3-5 years. The businessperson also examines on the internal and
external factors of the environment which has an effect on the company. In the study the
discussion is grounded on the key considerations for the growth evaluation with Boston
Consultancy Group Matrix, Mckinsey matrix and Ansoff matrix. The sources of funds of
SME are defined and creating business plan and succession option for the business. The study
is done on the Marshfield bakery a Small-medium enterprise established in 1984 dealing in
manufacturing of quality handmade cakes, biscuits, and seasonal goods. Located in Dyrham,
Chippenham, United Kingdom which is looking for expansion.
P1 Analyse key considerations for evaluating growth opportunities
It is necessary for each and every enterprise whether it is small or medium, required
specific planning for the growth. In order to sustain at the whole market, companies are
applying specific model and framework which will provide them appropriate opportunity for
the growth & evolvement. After the Brexit uncertainty, most of the business affected
adversely in United Kingdom and now companies are looking forward to conduct specific
planning for development & growth. Marshfield Bakery is also planning to use specific
model which can helpful in their business expansion & enhance market growth rate.
Marshfield Bakery is considering appropriate model for the growth opportunities like BCG
Matrix & McKinney framework. The explanation about both model, differences and specific
recommendations are discussed below – (Cleberg, C., 2019).
Boston Consultancy Group Matrix

BCG Matrix is considered as planning tools which utilize the graphical representation of
the firm’s goods & services & helpful to decide the firm strategies related to the selling,
investment, inventory & other resources. This model also called as “Growth Matrix" which is
helpful to provide growth opportunities to the company. There is involvement of four
elements that are dog, cash cow, star & question mark. All these elements are determined on
the basis of market share & market growth level as per the high & low performance criteria.
Marshfield Bakery uses this matrix which can helpful to analyze growth status and generalize
the growth opportunities. The explanation of this matrix in context of Marshfield Bakery are
discussed below -
 Dog - This stage is contained those goods of the company hold low market growth
rate & low market share as compared to their business in the slow growing
marketplace. There in not necessary to invest in business because they generate
already low cash returns. It is a fact that some dogs can be good for the longer time
period, they can provide some synergies for another brands. The strategic choice of
this stage is retrenchment, liquidation & divestitures (Dadashpoor and et.al., 2018).
 Question Mark - This stage also called as “problem child" in which market growth of
the product is high & market share is low. Basically, question mark needs more closer
consideration because they contain low market share in rapid growing market which
consuming the high amount of money & incurring losses. Strategic choices are
considered such as market penetration, product development & market development.
 Star - This stage is demonstrating the high market growth rate & manage high market
share. Basically, stars come in both categories like cash generators & cash users.
Starts are expected to create positive cash flow but not all stars are become cash
flows. Strategic choices of this stage are vertical & horizontal integration, market
development & product development (Deng and et.al., 2017).
 Cash cows - This is also known as “Milked" because it considered as the most
profitable brand which can helpful to give as much money as possible. It determines
the low market growth rate & high market shares. Companies received cash from the
“Cows" that invested into the "Stars” to provide their support for further growth.
Strategic choices of this stage are retrenchment, diversification & divestitures.
McKinney 7 S Framework
This framework is considered as the management model which developed by the Robert
H. Waterman & Tom Peters in the year 1980. This model is essential to enhance the

effectiveness of the company which includes seven internal factors that require be aligned &
reinforcing, as per the success of the company. All these 7 elements are divided into two parts
like hard elements & soft elements. The description of all these 7 elements is given below -
Hard elements Strategy - This element is essential which provide strategic strategies for making a
organizational plan so that company can effectively building & maintaining specific
position in the market and gain more competitive advantages over their competitors
(Friedmann, J., 2020). Structure - The main concern of this element is to determined that how company is
organized in an structured formed including departments, teams which can help full to
regulate which team report to whom. Company follows proper organizational
structure for the systematic consideration of rules and regulations and other
operations.
 System - This element define that all the regular activities are performed in a
systematic manner so that each and every staff member can do their job automatically
to follow all the consideration of discipline (Han, A.T., 2019).
Soft elements
 Shared value - This element determines the core competencies related to the
corporate culture in which all the staff members are shared specific values and respect
each other employees’ thoughts, belief system. Organization needs to maintain all the
ethical consideration at their workplace.
 Skills - As per these skills it is determined that employees need to contain actual skills
& competencies so that company can effectively improve their market growth.
 Style - This element generalizes the leadership style which mainly adopted by the
company. In all leadership style, democratic, supportive & participative leadership
style are mainly followed by the leaders.
 Staff - The main concern of this element is to consider the employees and their
capabilities so that company can effectively develop their employees and achieve the
market growth (Hoffman and et.al., 2018).
Recommendations
As per the above discussion about both matrix (BCG & McKinney) or can be
recommended that BCG Matrix is helpful in the planning of the growth for the Marshfield

Bakery and in this time, bakery is looking forward to overcome from the uncertainty of the
Brexit so company planning is to use market penetration. Market development &
retrenchment strategies which can helpful to improve the market growth rate & share of the
bakery so that bakery can become Star. In context of McKinney matrix, Marshfield Bakery
considers all these seven elements which are essential to maintain the internal competencies
of the bakery. With the help of strategy, structure & skills, bakery can effectively obtain the
most possible results & improve the productivity of their bakery (Hu and et.al., 2019).
P2 Evaluate the opportunities for growth applying Ansoff growth vector material
Ansoff Matrix is play a significant part to evaluate the specific opportunities for the
evolvement & growth. This matrix is work like a strategic planning technique which is
helpful to maintain all the operations for the future purpose. Marshfield Bakery applies this
model to expand their business operations so that hotel can effectively recover all the losses
of the Brexit. The explanation of this model on the basis of four strategies are given below -
 Market Penetration - On the basis of this growth strategy, the main focus is to sell the
existing goods into the existing market. Through this strategy, high market share &
growth rate will be determined. This strategy is aid in the development of the bakery
because it need low cost (Kinossian, N., 2018). Market development - This growth strategy is helpful to enter existing products into
the new market & improve the effectiveness of bakery into the new market. This
growth strategy need more concern on investigation which can aid to identify the
requirements of the new target audience. Marshfield Bakery uses this growth strategy
so that bakery can improve their business operations in various locations of the United
Kingdom in order to gain more profitability & market growth.
 Product development - This strategic tool is helpful to launch new products into the
existing market. The prime concern of this strategy is to improve the growth level of
the company through changes in their products. This strategy is beneficial to provide
high market share (Mazzarol and et.al., 2020).

Figure 1Ansoff Matrix: Understanding firms’ growth options,2021
 Diversification - This last growth strategy demonstrate the diversification of products.
This strategy determines the new products into the new market. It is considered that
this strategy is very risky & need more investment for the business expansion with
new products.
As per the evaluation of this strategy, it can be determined that from all four growth
strategies of the Ansoff Matrix, market development is more appropriate for the Marshfield
Bakery and it can helpful to entre new market with existing products & services (Mueller and
et.al., 2018).
M1 Options for growth using a range of analytical frameworks
There are various options available for the growth which can helpful to maintain the
position & gain more positive outcomes. As per the before discussion it is analysed that some
specific options for the growth are generalized by the Marshfield Bakery like BCG Matrix,
McKinney framework and Ansoff matrix, all these options for the development are work like
a analytical framework to boost the performance of the bakery and helpful to gain more
market growth & market share as compared to the Competitors. All these strategically
options are helpful to provide various opportunities for the growth so that bakery can
effectively evolve their business after the uncertainty of Brexit.
D1 Evaluate specific options & pathways for growth
Marshfield Bakery evaluated various options for the planning of growth & rebuilds their
market structure and improves their performance after the negative consequences of the
Brexit. Now bakery wants to expand their business in other location in UK so that bakery can
enhance their business operations. With the help of Ansoffs matrix strategy “market
development”, bakery can effectively enter into the new market with their existing products.

This planning is considered as the most appropriate planning for the growth & suitable option
which provide specific pathways in order to expand business activities into other location
(Müller and et.al., 2018).
P3- Potential sources of funding available
The business requires specific funding to run the business operations effectively. The
funding is the arrangement of the money which helps in funding to have long term success in
the business operation that is required at the time of expansion or diversification of the
business. It brings the profitability and productivity through funding. There are plentiful
sources of finance which is categorised into equity and debt funding in the context of the
Marshfield bakery. The sources are-
 Bank loan- It is the utmost crucial way to increase the fund in the terms of loan provided
to the small-medium company. The company gets the loan by fulfilling some minimum
criteria of the bank and also repayable with the interest rate set by the bank. The loan can
be provided for the purpose of short term and long term. The kinds of credit providing are
working capital, term loan and loan for property. In the context to the Marshfield bakery,
it is beneficial sources to raise the funds in fixed rate of interest (Newing and et.al., 2020).
Benefits- It is easy to obtain loan at the fixed rate of interest and it does not take profit
share or company share while paying interest. The loan can be taken according to the
requirement which is repaid in future.
Drawback- In obtaining large loans it requires to fulfill some terms and conditions which
does not provide flexibility. The loan is granted against security which can be taken away
from the borrower if fails to repay the payments.
 Crowd funding- It is a new deliberated method for financing source. The borrowing of
the money is collected from large people to raise the amount of funding. The funding is
raised by the small amount for the project which is beneficial source for the Marshfield
bakery. It is done through the social media or crowdfunding website where the
entrepreneur and investor come together for funds increasing (O'Connell and et.al., 2018).
Benefits- It offers the rapid sources of the finance to increase where progress is tracked
by the investor to promote the brand. For project the targeted amount is set to raise the
funds.
Drawback- the funding of the money is not available for all the kinds of projects and the
reputation of the firm is affected due to project failure. The money can be taken back by

the investor it the targeted amount is not reached up to a certain level and business is left
over with nothing.
 Own capital or savings- For small business it is easy source of finance to raise the funds
as the business person can acquire funds when there is requirement of the capital. The
funds are raised from the individual saving in terms of cash or from private assets such as
stock, mutual fund, jewelry and real estate. The entrepreneur furthermore obtains credit or
sale the assets for cash raising.
Benefit- In context to the Marshfield bakery to raise the funds no interest is occurred and
repayment of the schedule is not required. It is quick and simple way to secure and access
the funds (Pinnegar and et.al., 2020).
Drawback- The drawback is it generates the risk in forthcoming to meet the individual
requirement. It necessitates the primary investment by tapping personal finance at risk
which can loss complete savings.
 Angel financing- It is also observed as utmost significant source of finance as investor
invest to gain equal position in the organization. This financing also helps in providing
specific guidance & suggestions in the context of the Marshfield bakery.
Benefits- The foremost benefit of this source is that organization can admittance the
precise knowledge & also agreement with the stockholders regarding the funds. It also
helps in quick decision making regarding the investment.
Drawback- The disadvantages is shares are given to the investors by the organization and
it takes long period to find the suitable angel investor (Ribeiro and et.al., 2019).
In accordance with the above discussion, it can be said that all the sources are
beneficial and important to raise the funds in the context of the Marshfield bakery. The most
effective are bank loan, own capital saving through which required amounts of sources can be
acquired.
M2 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context
As per the previously discussed there are numerous sources of funds which are
important for the growth of the business. In framework of Marshfield bakery, it is restrained
that bank loan and own capital saving is the key source of fund and the key motive to opt this
source of funding was as it deliver flexibility to take bank loan with low interest rate for the

purpose of short term or long term. In the own capital savings, the funds are raised up to the
needed amount by taking own savings or through sale of any assets.
D2Critically evaluate potential sources of funding with justified argument for the adoption of
a particular source or combination of sources, based on organisational needs
The sources of the funding help in providing the financial stability to perform well to
the business. There are numerous sources of funding such as Bank loan, Angel financing,
crowd funding, and own capital savings etc. All sources are advantageous for the business
and offers their finest facilities with this the sources also contains some benefits and
drawbacks which would be beneficial for the Marshfield bakery.
P4- Designing a business plan for growth
Every organisation desires an active business plan that is the base and support for the
organisation. The business plan describes the inscribed statement of business for future with
the purpose of defining present market position and approaches, aims and the strategies
castoff by the organization. In a document it outlines what and how to plan for attaining
somewhat. The business plan benefits in execution number of tasks and activities for
individual who write and read them. The companies use the business plan to appeal
substantial employees, conveying their vision to prospective investors. The business plan is a
road nap providing the guidance to perform day to day operations effectively and for the
organization welfare. Marshfield bakery also formulate a Strategic business plan that
comprises numerous information linked to the company vision, Mission, objective and most
importantly financial information. The business plan consists of several components- (Rijal,
B., et. al., 2018)
Executive summary- The Marshfield is the bakery located in the UK providing hand-made
products such as cakes, biscuits, chocolates and many more. In the business plan for the
company growth comprises of the vision and mission, objectives. Effective growth strategy is
formulated in business plan to maintain the efficiency of the performance in the marketplace.
The company using numerous strategies and tactics are also demarcated with competitive
advantage. The business plan is prepared in the motive to expand their business or developing
new product.
Business description- It explains the business vision, mission statement with the objective.
The mission of the Marshfield bakery was to provide best quality of baked goods on site from

scratch and fresh daily. It also created the atmosphere to attract and retain the most talented
people in the company and for clients so that they can be able to purchase baked products.
The vision of the bakery to make innovative products continuously from scratch on site and
educating the staff, public regarding the importance of chemical free baking products. It
considers the core values of the staff by giving them priority so that clients, customers and
guests can be given better care (Rude, C., 2020).
The objective of the Marshfield bakery was to improve the brand positioning by producing
ideas to gain more market share and productivity. Its long-term objective was to keep the
customers happy by providing high quality items and increment in the revenue by 20%. It
also used the medium of social media to improve the efficiency of the bakery.
Marketing strategies- To achieve the objective it covers the segmentation, targeting and
positioning strategy of the marketing. In the segmentation of the Marshfield bakery was to
use digital media to attraction customers. The customers are divided on the basis of age
groups and target them through digital marketing communication channels. In the targeting
undifferentiated approach is considered that means the manager will direct the same message
by digital communication platform to the bakeries. The Marshfield bakery efforts helped in
accomplishing the short-term objectives. The targeting is done to every class and age of
customers according to their linking’s. The positioning is defined as the practice of
introducing the distinct image in the customer minds. The Marshfield bakery emphasis on the
quality and hand-made feature to place its products. In order to keep the consumers satisfied
it also delivers the organic food products to keep its positioning (Rudolf and et.al., 2018).
Competitive analysis- The Marshfield bakery faces the competition from various hand-made
baker as they produce innovative hand made cakes, and other products for the consumers. It
describes the SWOT analysis of the Marshfield bakery.
 Strength- The Marshfield bakery was known for the high-quality baked products that are
made from the hands. It was having the good image and created the brand awareness to
have large customer base. It possesses the team of highly skilled workforces.
 Weakness- The fan following for the bakery was very low on the social media. It is also
affected by the external factors of the government policies and price fluctuations. The
operations were done in the limited area.

 Opportunities- The Marshfield bakery was having the opportunity of launching new
product and extension of the operations in new market. The bakery has the opportunity to
brand its products towards the kids to attract families.
 Threats- The Marshfield bakery face the threat from the rivals of introducing fresh policy
and strategy. The change in the customers tastes and preferences was also the threat for
the bakery (Samander and et.al., 2017).
Financial factors- It includes several sources of funds to preserve the development of the
company. The Marshfield bakery upholds the balance sheet, income statement and cash flow
statement to know the growth and various ratios are calculated to recognize the liquidity,
effectiveness and proficiency in the business. Financial security is provided by securing funds
and capitals. To sustain financial investment and outflow, organization required to manage
and record all the financial information to gain the financial position.
Monitoring of the plan- The proposal is evaluated with the previous sales so that action can
be engaged to adjust the dissimilarities in the plan to upsurge the market share and
productivity. The market share analysis is employed to identify the participants share in
relation with the Marshfield bakery (Sparkman, R., 2018).
D3 Present a coherent and in-depth business plan that demonstrates knowledge and
understanding of how to formulate, apply and achieve business objectives successfully
The organization adopts some few steps as to maintain the in-depth understanding of
the business plan by formulating them to attain the business objectives. These steps are
crucial to practice helps in identifying the business description, market analysis, marketing
and sales, funding request and financial projections. To implement the business plan
successfully Marshfield bakery practices these steps by analyzing various micro and macro
factors and growth strategy.
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option
In directive to estimate the current market condition, it is important for the firm to
reflect specific options, such as business exit plans or succession ideas. This option helps in
making effective decisions about business growth and also helps in considering decision in
the exit plan of succession planning. Marshfield bakery enlarges their business in the new
market so it is prominent to formulate exit plan & succession options so that organization can