Planning for Growth: Hook Norton Brewery Business Development Report

This report focuses on the growth planning of Hook Norton Brewery, a small and medium-sized enterprise (SME). It explores key considerations for evaluating growth opportunities, including market analysis and Porter's generic strategies, and applies Ansoff's growth vector matrix to assess market penetration, development, product development, and diversification strategies. The report also evaluates potential funding sources like small business loans, angel investors, bank loans, and crowdfunding, discussing their benefits and drawbacks. A business plan is included, outlining objectives and identifying potential funding sources. Finally, it assesses exit or succession options for small businesses, offering critical recommendations. The report utilizes frameworks like the Boston Consulting Group Matrix and discusses technological and digital platforms for risk mitigation and network expansion.

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1 Analysis of key considerations for evaluating growth opportunities and justify these
considerations within organisational context...............................................................................1
P 2 Evaluation of opportunities for growth applying Ansoff’s growth vector matrix.................2
M 1 Discussion of options for growth using a range of analytical frameworks to demonstrate
the understanding of competitive advantage within organisational context................................4
D 1 Critical evaluation of specific options and pathways for growth, taking into account the
risks of each option and ways in which they can be mitigated....................................................4
LO 2.................................................................................................................................................4
P 3 Assessment of potential sources of funding available to businesses and discuss benefits
and drawbacks of each source.....................................................................................................4
M 2 Evaluation of potential sources of funding and justification for the adoption of an
appropriate source of funding for a given organisational context...............................................6
D 2 critical evaluation of potential sources of funding with justified argument for the adoption
of a particular source or combination of sources, based on organisational needs.......................6
LO3..................................................................................................................................................6
P3 Business plan..........................................................................................................................6
Objective-....................................................................................................................................7
 To improve the production and sales rate approximately 6%-12% next five years..........7
M3 identifying the potential source of funding and justification for adoption..........................13
D2 Presenting a depth business plan and understanding how to formulate apply and achieve
business objective......................................................................................................................13
LO4................................................................................................................................................13
P5/M4 Assess exit or succession options for small business, explaining benefits and drawback
of each option............................................................................................................................13
D2 critically recommendations of succession option in Small business...................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Growth planning can be defined as a process that undertake various activities in order to
enhance chances of growth and development of an organization with the help of effective
planning (Gumel, 2019). Planning for growth and development of business is extremely
important for organizations as planning helps in gaining competitive advantage, enhance growth
changes of firm and increase chances of success in a proper and appropriate manner. This project
will lay emphasis upon growth planning of Hook Norton Brewery. It is a SME with 45
employees only. It is a leading brewing company that manufacture various kinds of products
like wine, beer, clothing, spirits etc. This project focuses upon elaborating considerations for
evaluating growth opportunities, opportunities for growth applying Ansoff’s growth vector
matrix, potential sources of funding, business plan for growth that includes financial information
and strategic objectives for scaling up a business and exit or succession options for a small
business.
LO 1
P 1 Analysis of key considerations for evaluating growth opportunities and justify these
considerations within organisational context
There are various kinds of key considerations that are required to be focused upon by
organizations for evaluating growth opportunities. One of the ways is by considering and
understanding the market in which they operate for gaining competitive advantage. Pricing of
products in one of the main and key considerations though which growth opportunities can be
evaluated.
Porters generic strategy
Cost leadership: using this strategy an organization can gain competitive advantage by focusing
upon providing products at lower price (Islami, Mustafa and Latkovikj, 2020)x. This strategy is
used by organization to gain more market share. Hook Norton Brewery can use this strategy
lowest cost producers.
Differentiation strategy: It is another important strategy which is used by organization for
focusing upon cost leadership and differentiating their product from other products. This can be
used for broad focus. Hook Norton Brewery can use this strategy to differentiate their products
from other organizations products.
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Focus strategy: this strategy focuses upon any one type of focus i.e. either gaining cost focus pu
gaining differentiation focus.
Boston Consultancy Group Matrix
If Hook Norton Brewery wants to grow then they need to focus upon evaluating their
current product portfolio. So that they can understand and identify what are the type of products
that are liked and preferred by their customers the most. This will help Hook Norton Brewery in
identifying ways in which they can develop innovative product for successful growth
opportunities. For this both Boston Consultancy Group Matrix and GE/Mckinsey matrix can be
used. Both the matrixes helps organizations in categorizing their products and services category
wise.
BCG matrix helps in defining product portfolio for strategic planning. It consists of four
quadrants that are:
 Dog: Hook Norton Brewery should identify their dog products that have low growth and
market share. This will help them in reducing production of those products and services
because investment of these products is high and return is low.
 Question Mark: these are the products that have high growth markets and low market share
(Islami, Mustafa and Latkovikj, 2020). Hook Norton Brewery should focus upon these
products more because in future these products can either come in category of star products
cancan fall to category of dog products.
 Star: These are the products that have high growth markets and high market share. These
products generate more return on investment can help Hook Norton Brewery in becoming
market leaders.
 Cash Cow: These are the products that have low growth markets and high market share.
These are well established products.
P 2 Evaluation of opportunities for growth applying Ansoff’s growth vector matrix
There are various kinds of ways that can be used for evaluating growth opportunities of a
small and medium sized organization. Ansoff’s growth vector matrix is one of the most common
method that can be used for evaluating growth opportunities of Hook Norton Brewery. This
matrix consists of four main types of strategies that can help in enhancement of growth and
development in marketplace.
Market penetration
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Using this strategy an organization focuses upon expanding their business in existing
market using existing products (Mohajan, 2017). This strategy is used by organization them they
intend to enhance their overall profitability and revenue while operating in existing market and
selling existing products and services.
Market development
This strategy is used by organizations when they intend to enter into new market with
their existing products. This strategy is used by organization to expand their business in new
market. This strategy can help Hook Norton Brewery in entering into new market with their
current products for expansion of business and increasing overall sales and revenue. Hook
Norton Brewery can use this strategy to launch some of their star products in the new market as
it will help in increasing overall success rate of organization and can also help in gaining
competitive advantage.
Product development
This strategy is used by organizations when they intend to introduce new product in the
existing market in which they operate (Bezrukova and et.al., 2017). This strategy is used by
companies to remain competitive in the market by introducing new products as per the changing
needs of their existing customers. It is another way of enhancing overall quality of their products
and introducing some new features within their existing products for continuous growth and
development of organization and for maintaining their current customer base, attracting new
customers by understanding current market needs. Hook Norton Brewery can use this strategy
for development of new product as per changing market needs and requirements. For this they
can focus upon investing in their research and development department so that requirement of
new product for existing customers can be identified.
Diversification
It is one of the most- riskiest type of growth opportunities that can be focused upon by
organizations like Hook Norton Brewery as using this strategy organization introduce new
products and services into new market segment (Boitan and Barbu, 2020). Failure chances
associated with this strategy are quite high but if this strategy succeeds then it can help an
organization to grow and expand exceptionally. This strategy is used by organizations when they
intend to start a new business and wants to introduce wide range of goods and products to new
targeted customers.
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M 1 Discussion of options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within organisational context
Ansoff growth vector matrix can help an organization in identifying ways in which they
can expand their business by focusing upon introducing new or existing products in existing or
new market. All the four strategies of Ansoff matrix i.e. market penetration, product/service
development, market development, unrelated diversification can directly help in understanding
competitive advantage understanding option for growth. Whereas strategies like Boston
Consultancy Group Matrix can help in understanding categories of products so that Hook Norton
Brewery can identify products they can focus upon for expanding their business in new or
existing market.
D 1 Critical evaluation of specific options and pathways for growth, taking into account the risks
of each option and ways in which they can be mitigated
Hook Norton Brewery need to focus upon exploring new technology and digital platform
so that they can identify risk associated with different strategies opted by them for growth.
Exploiting new technology and digital platform will not only help in identifying risk associated
with different strategies but will also help in expanding network and generate growth
LO 2
P 3 Assessment of potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
There are various kinds of funding sources that are available for business organizations
for operating and running business in the market in which they operate. Some of the most
common sources of funding for Hook Norton Brewery are as follows:
Small Business loan
This funding source is provided by government who help and provide funds to small
enterprise. Government helps small business organizations for business development (Loredana,
2017). This funding source helps in provision of at least 25 percent of loan to small
organizations.
This funding has its own benefits and limitations:
Benefits: chances of getting bank loan increases.
Limitations: Getting small business loan is not easy, in fact it has some struct guidelines.
Angel Investors
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Anger Investors are individuals who readily invest within small business. These are
individuals like friends, family members etc. Most of the anger investors are not part of anger
group but most of them are some businessowners, executives, or other success individuals who
have capability of funding a business organization in return of any kind of interest (Sobiegraj,
2017). One of the best ways of finding these angel investors is networking. Some of the main
benefits and limitations of this funding source are as follows:
Benefits: Risk associated with this source of funding is much less risky as compared to bank
loans. Organizations who are funded by anger investors can generate large number of jobs.
Anger investors also helps in bringing large amount of knowledge and experience to the
organization.
Limitations: One of the main limitations of this source of funding is that business owners loses
their control over business. It is a bit difficult to find a suitable angel investor. They provide less
structural support.
Bank Loans
It is one of the most common type of source of funding which is generally opted by small
organizations. There are various kinds of loans that are provided by different banks to
organization (Ságiand Juhász, 2019). These difference in types of loan is based upon
requirements and certain type of criteria. Bank provide loans to small and medium sized
organizations so that they can establish their business and help in enhancing overall economy of
the organization. Some of the main benefits and limitations of this funding source are as follows:
Benefits: One of the main benefits of this funding source is that interest generated on bank loan is
tax deductible especially in case of fixed rate loan. It helps in tracking and monitoring all the
main track records of business especially financial records. Bank loans are temporary i.e. once
the bank loan is paid off there are no obligations over business owners.
Limitations: High interest rate of bank loans is one of its main limitation. Many times, loan taken
by business owners is not sufficient to meet their needs and requirements. It is difficult to get
loan approved until and unless the business has a substantial track record.
Crowdfunding
It is a method in which large group of individuals raise funds. An individual can invest as
small as $1,000 (Bryant, 2020).
Some of the main benefits and limitations of this funding source are as follows:
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Benefits: Pitching a business project though crowdfunding can be valuable form of marketing.
Limitations: It consist of a risk that business idea can be copied by others. Failed project can
result in damage to overall business reputation.
M 2 Evaluation of potential sources of funding and justification for the adoption of an
appropriate source of funding for a given organisational context
Out of all of the above sources of funding there are two most important sources of
funding that Hook Norton Brewery can focus upon adopting are: Bank loans and Angel
investors. This is because Angel investors source of funding will not only help Hook Norton
Brewery in funding but will also help them in generating new jobs. Whereas, bank loan is
another potential source of funding for Hook Norton Brewery because it will help them in
deducting tax on bank interest and once interest is paid off no obligations will be remaining.
D 2 critical evaluation of potential sources of funding with justified argument for the adoption of
a particular source or combination of sources, based on organisational needs
From all the sources of funding Bank loan is the most appropriate source of funding
because it is a temporary obligation upon business till it is pad off. Angel investors is not an
appropriate source of funding because it will result in losing control over organization by their
owners.
LO3
P3 Business plan
Executive Summary-
In this business plan, it will focus on the planning of “Hook Norton Brewery” enterprise
which provide the more prior to their SMEs. As renowned COVID-19, Boston consulting group
will provide the better advice or suggestion for “Hook Norton Brewery” business owner to
identify the brief information about SMEs enterprise. This will help for identifying right
direction to develop as suitable objectives in order to maintain position in global world.
“Hook Norton Brewery” is based on the SMEs which providing beverage products and
services to customers. Nowadays, it has already increasing demand of Beer in market so that it
help for easily targeting potential consumer towards organization. Sometimes, it ensure that
current operational areas which may start with implementing innovative or flavoured Beer taste,
that always attracts more and more consumers. In this way, SME will utilize to achieve their
desirable goal and objective.
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Mission-
The primary mission of ““Hook Norton Brewery” will provide the best quality of beverage
drinks for potential consumers. This enterprise will focus on the expanding the business in global
marketplace. That’s why, it can support for achieving organizational goal and objective of SME.
“Hook Norton Brewery” will concern about the implementing innovative idea for giving best
options to their potential consumers. Therefore, many consumers will be likely to purchase
various flavoured beers through online website.
Objective-
 To enhance the overall business performance and efficiency through innovative ideas.
 To improve the production and sales rate approximately 6%-12% next five years.
 To increase the demand of “Beer” in marketplace so that can easily target potential
consumers in global world.
SMEs Summarise-
“Hook Norton Brewery” is based on the SME that provide the brewery products for
potential consumers. Usually, this organization will focus on the establishing the brewing plant
which follows all stages of brewing process in order to maintain flow logically from one floor to
another. This type of brewing process was powered by steam (Ribeiro, 202). This company will
focused on all essential financial information so that it become useful for creating brief idea in
context of investment. Thus, it help for gaining more competitive advantage in global
marketplace. “Hook Norton Brewery” will be considering all legal charges, designing structure
of entire business in proper manner.
Product and services-
“Hook Norton Brewery” will focus on produce beverage items of high quality and
impeccable taste. This SME is currently produce three main line of items such as X beer, Y beer
and Z beer. Each and every item consist of unique properties that will enable them to excel in
global marketplace.
 X beer- although similar in appearance to only of another item which available in global
marketplace. The beer has superiors flavor, smooth and texture with having no right
solids.
 Y beer- this type of product will contain a unique feature that can enjoy both as non-
alcoholic as well as alcoholic drink, depending on fermentation period after production.
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 Z beer- It is mainly contain the traditional item which already consumed as substitutes for
regular basis. it is known as energy booster whenever available in marketplace.
SWOT Analysis-
Strength
 The strength of “Hook Norton Brewery” is strategic market segmentation and
implementation.
 It applicable as diversified market segment that ensure lack of dependency in particular
market.
 Intended to join with make an effective plan to long-term growth and development.
Weakness
 There is a lack of reputation in comparison between two or more competitors.
 “Hook Norton Brewery” can develop as new practices and personnel that can easily
handle the current challenges of enterprise (Srikant and Teckchandani, 2020).
 There is a lack of clear cut channels in context of distribution.
 Advancement of technology will create as challenges for business
Opportunities
 Appreciation for refreshment and promote high quality of brew in marketplace
 Launching a new item according to individual’s generations and families.
 Increasing demand of Beverage item in other nations, especially south Africa looking at
penetration of marketplace.
Threat
 “Hook Norton Brewery” as startup enterprise is generating healthy economic growth
country.
 Establishing mass market with development of new line while vertically integration so as
totally way to control product and their supplies.
Market Analysis-
In today’s world, it has been rapidly experiencing growth of economy. It has been
identified the relaxation of foreign exchange policies and procedures. Thus, it help for attracting
more foreign investors into particular country. According to survey, it has been analysed that
government focus on diversification “Hook Norton Brewery” business to make valuable
contribution towards goal and objective. As a result, it will be implementing modern technique in
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context of production, having more knowledge about manufacturers and satisfying specific need
of client. The breweries are currently exist in the market, which have been existence for
relatively long timer intervals. It also believed that focus on the low to medium earning
individuals. Usually, it has been implementing the marketing strategies, focus on the target
markets, particularly of Breweries dominance in marketplace.
Market Segmentation-
“Hook Norton Brewery” will focus on the corporate, working class who always
appreciated good quality of traditional “Beer”. There are wide range of product available for
working class people, who are contribution a large portion of marketplace (Liu, Tong and
Sinfield, 2020). In this way, “Hook Norton Brewery” will manage their segmentation and
improve its business reputation.
Furthermore, SME will focus on the important group of consumer, who are belonging in
rural areas, want to enjoyable their time whilst drinking a good refreshing beverage. They do not
want to waste their time but always purchase best quality of brew at cheapest price. In this way,
it will be increasing as great opportunities for “Hook Norton Brewery” SME to establish their
business in marketplace. in order to improve awareness among both working class people and
rural people.
Strategy and implementation Summary-
“Hook Norton Brewery” SME will focus on the marketing strategy and emphasizes
relatively to business and their certain kind of Beverage products. Initially, this company will
focus on the local market and in remote which become inaccessible for some areas. Hence,
growth of SME would be pursued in term of organic growth due to the limited resources. The
Target consumer will include some key decision-makers in this business who often order or
recommend on behalf of entire business (Liu, Tong and Sinfield, 2020). The primary aim being
to obtain an initial order and also satisfying the need or requirement for potential consumers.
Sales Strategy-
SME will intend to focus on improving their implementation, by working on different
organizational objectives, better way to establish coordination within marketing efforts. In
context of short-term, selling the process will depend on personal interaction, advertising or
inform personal client about beverage items.
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Sale Forecast-
It has been summarised the total sales forecast on monthly basis. it should be noted that become
established as well as known market, identifying the faster rate than initial year.
Marketing Strategy-
It is one of core element of marketing strategy that will be focus on differentiation from other
competitors. “Hook Norton Brewery” SME is basically considered as promotion that help for
offering the various products within extremely reasonable price or cost. SME should be
considered the market penetration through lower price or cost shall be undertaken whereas fulfil
all essential need or requirement (Liu, Tong and Sinfield, 2020). Actual premium pricing will be
exists in case of upper end in marketplace.
 Advertising- In fact, it can review to enter SME in marketplace and dominated by
Breweries products. Which has considered as extremely approximately market share
95%, intend to undertake extensive advertising of product. Additionally, it always insists
to potential consumer regarding knowledge of product in marketplace (Liu, Tong and
Sinfield, 2020). Afterwards, it will easily convert into market share. Hence, it ensure that
all Beverage items are constantly available to target market.
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Financial Plan-
It is important aspect of “Hook Norton Brewery” SME that will focus on financial growth
through cash flow, equity. In order to easily recognize means that will have to grow business in
step by step manner. The Financial plan will be depending on the important assumptions, which
are considered interest rates, tax rates and other type of personal burden on the basis of
conservation assumptions.
Break-Even Analysis-
The break-even analysis will consider actual running price or cost and incur in keeping
business running in properly. Sometimes, it include rent, water, electricity, salaries and wages.
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Cash Flow
Budgeting-
The overall budget requires for establishing “Hook Norton Brewery” business
approximately $1, 34, 2034
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M3 identifying the potential source of funding and justification for adoption.
As per analysis, identifying the different potential source of funding such as small business
loan, Angel investors, bank loan and crowd funding. These are important role played in SME
business growth and development (Liu, Tong and Sinfield, 2020). It has been justified that
adoption of these sources that will support for business expansion in global marketplace.
Through sources, it will implementing innovation in business improvement.
D2 Presenting a depth business plan and understanding how to formulate apply and achieve
business objective.
As per depth analysis, it has been produced the effective business plan which mainly identifying
all financial information, marketing strategies, aim or objective, mission of SME. Typically, it
can easily examined the current situation of business while achieving desirable goal or objective
in future through business plan. Additionally, it will be formulating strategies on the basis of
business need or requirement.
LO4
P5/M4 Assess exit or succession options for small business, explaining benefits and drawback of
each option.
There are different types of exit or succession option by using “Hook Norton Brewery”,
identifying their benefits/ advantage and drawback within SME.
Selling and floating the business
It is a type of succession strategy that help for SME to sell their product and service in
closest people such as family member, friends and so on (Bertschi-Michel, Sieger and
Kammerlander, 2019).
Benefit
 It involves friends, family members so that they have limited chances of loss in future
direction.
Drawback
 It is completely safe in term of cash to their fund retirement.
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Liquidations
It is based on the exit strategy, so as they have no another chances gained by SME when
business owner shut down. Thus, it cannot identified intangible assets within enterprise.
Drawback
 The original price of liquidating is higher
Benefit
 It helps to predict the time frames.
Initial Public offering
This type of strategy exits in the succession which help for SME to offer best quality of
offers. In order to establish a strong relationship with potential client in marketplace (Mitchell,
2020).
Drawback
 It cannot easily collect or gather money but needs to invest on business growth and
development.
Benefit
 It can utilise the business to handle financial information or data in proper manner.
Keep business within family
This is based on the succession strategy that mainly handled business tasks by owner and
give responsibility of their children in future (Gagné, Marwick and Wrosch, 2019). So as they
can expand business in global marketplace.
Drawback
 The Drawback of enterprise is to increase financial risk but it can be reduced risk or
threat through effective business planning.
Benefit
 Increasing the growth opportunities for both personal as well as business in global world.
Family member can handle the complex business task in proper manner.
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D2 critically recommendations of succession option in Small business.
On the basis of discussion. It has been recommendation for Initial Public offering strategy
that support for providing best quality of product and services. in this way, it is directly
establishing a strong coordination with client through this strategy, providing all full detailed
about the current product as well as service in marketplace (Liu, Tong and Sinfield, 2020). It is
considered as best option to achieve desirable goal and objective business in global world.
CONCLUSION
From above discussion, it has concluded that Growth planning plays important role in
organization that can perform different activities, which supports for enhancing overall business
growth and development in global marketplace. In this report, it has described about the growth
opportunities, opportunities for growth applying Ansoff’s growth vector matrix, potential sources
of funding. It can be developed as an effective business plan for identifying all essential need or
requirement for SME. It including financial information and strategic objectives for scaling up a
business and exit or succession options for a small business.
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REFERENCES
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Mohajan, H., 2017. An analysis on BCG Growth sharing matrix.
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