Marshfield Bakery: Evaluating Growth Opportunities and Funding Options

This report analyzes the growth plan of Marshfield Bakery Limited, a private limited company specializing in bakery products. It explores various strategic aspects essential for business expansion, including competitive advantages, Porter's generic strategies (cost leadership, differentiation, cost focus, and differentiation focus), and the application of the Ansoff Matrix (market penetration, market development, product development, and diversification) to evaluate growth opportunities. The report also assesses potential funding sources, emphasizing their benefits and drawbacks, and develops a comprehensive business plan incorporating financial information for scaling the business. Furthermore, it evaluates exit and succession options for the small business, considering their advantages and limitations, to ensure sustainable growth and strategic planning for the future. The report uses SWOT, PESTLE and Porter's Five Forces analysis to evaluate the internal and external factors impacting Marshfield Bakery.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task 1..............................................................................................................................................3
P1. Analyse growth evaluation, opportunities along with justifying consideration...............3
P2. Evaluation for the growth opportunities and applying Ansoff Growth Vector Matrix....5
M1. Options of Growth range within analytical framework to understanding competitive
advantages..............................................................................................................................7
D1. Critically evaluating specific option for growth pathway...............................................9
Task 2............................................................................................................................................10
P3. Assessing potential sources for funding for business along with benefit & drawback..10
M2 Potential funding source with justification for adoption................................................12
D2 Potential funding sources with better argument.............................................................13
Task 3............................................................................................................................................13
P4 Business plan for better growth including financial information to scaling business.....13
Business plan through knowledge & understanding business objectives formulation.........19
Task 4............................................................................................................................................19
P5 Assessment for exit & succession option for the small business with benefits & limitation
..............................................................................................................................................19
M4 Exit/succession option for small business......................................................................21
D4 Exit/succession options within small business including justifycation that support
implementation.....................................................................................................................21
CONCLUSION.............................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
Planning for growth is a strategic business activity and systematic record of ambitions for
enhancing future business. It is an organisation’s plan for better opportunities and for
overcoming current and future challenges to realize its objectives for expansion. It states about
the various effective business tools used to formulate effective plans for increasing high
productivity (Cornuel, Thomas, and Wood, eds., 2022). Every business has their own plans and
they procreate different types of strategies and ideas from different sources to enhance the
outcomes positively. It is highly essential for business because it sets targets and business goals
and clear strategies for reaching them. As per above report the selected organisation is
Marshfield Bakery Limited which is a private limited company. The main work of this company
is to manufacture bakery products like biscuits, cakes, pastry and their turnover has estimated
around 7 million pounds. The Ansoff Matrix growth vector is known as product/ market
expansion grid is used to evaluate growth initiatives as it work on 4 strategies like market
development, market penetration, diversification and product development (Maher and et. al.,
2021). The project describe about the business design which includes for better growth by
knowing strategic activity and financial information and also has focused on different succession
planning.
MAIN BODY
Task 1
P1. Analyse growth evaluation, opportunities along with justifying consideration
Competitive Advantage
For identifying the main opportunities for growth it is necessary to identify the main
strengths, capabilities and capacities of the organisation. The strategies that can be applied by
Marshfield bakery limited for improving profits along with mapping market threats.
 By implementing the invention and innovation of new products and services in the
market, companies can become more competitive.
 Improvement in functions, organisational processes and operations can help to improve
productivity within the organisation.
 Use of advancements like technology, digitalisation and online media can provide better
chances of growth in the market.

Porter’s generic Strategy
The strategies which is applied by porter are important for firm or business organisation to
achieve organisational goals. The strategies of Porter Generic Model are as follows:
 Cost leadership: According to this strategies the main focus of company is to target on
broad market but offer product or service at low price for maintaining the cost the
company follow two strategies the first is to reduce all other business cost and second
one is to reduce the selling price to minimize cost leadership(van der Wouden, 2020). In
the context of cost leadership Company maintain similar price as that of other bakery
company but reduce the other business cost to increase its profit margin without spending
anything extra.
 Differentiation: This strategy follows the idea to attract more customers through the
unique features of products and improve the overall sales. For proper implementation of
this strategy the firm must work on effective marketing, creating specialised products,
adding more features and re- branding of products. As for example the Marshfield
bakeries focus on uniqueness of their product by producing home-made bakery products
which attain competitive and differentiates within market place.
 Cost focus: according to this strategy the business or firm or company offers product and
services at lowest price (Volcker, 2020). It focus on specific market in order to increase
specify target in prominent manner. According to this strategy the place Birmingham is
targeted due to their market size which improves the sale in better manner. Cost
leadership could be developed by a company which could help it to improve performance
and establish its place in the market.
 Differentiation focus: in this strategy firm or business focus on niche market and offers
product and service that is unique. It focuses on features of products rather than focusing
cost. In relation to the Marshfield Bakery Company, it has proper strategy due to which
the company is able to deal with various issues in order to deal with the problems (Yaghi,
2019). That can be resolved by making use of preventive measures for better
performance.
After evaluating the porter’s generic strategy it can be obtained that differentiation can be
used by Marshfield Bakery for establishing cost focus or differentiation to attract large number

of customers. This can be done by producing highly differentiated products and serving it to the
customers at competitive rates, it is analysed that Marshfield Bakery Company should have
suitable strategy of differentiation from which high revenue can be earned & larger market area
can be captured. Marshfield bakery is SME and it could focus on providing products to all the
income groups with differentiation and cost focus which will help it to capture more prospects.
Differentiation strategy may be riskier for the business as it may lead to decline in profits, hence
a suitable cost must be calculated. Differentiation of products from competitive brands must be
attractive for customers and prospects so that larger market area can be covered.
P2. Evaluation for the growth opportunities and applying Ansoff Growth Vector Matrix
Ansoff Matrix
Igor Ansoff developed a growth vector so that an organization can attain higher
competitiveness by using strategies for growth. This is a strategy tool used by business to choose
better expansion plan for business by which they attain the high productivity and efficiency. It
also called as product expansion grid. It helps to identify the risk level with different strategies
(Vrtaňa, 2019). This matrix has 4 different growth strategies which are explained below:
(Source: What is Ansoff matrix? 2020)
 Market Penetration: In current marketplace with current offering, this strategy is used in
performing market expansion. It is a degree of measure of product or services which are
used by the targeted market as compared to estimated market value for product and
services. In another word this can be used to explain about selling of existing product in

the existing marketplace. With reference to Marshfield Bakery Company, they are also
using these strategies in existing customer for their satisfaction.
 Market Development: This strategy supports Business in their Initial phase to identify
and improve sales and increase the opportunities for current ongoing product range. It is
a process in which the organization and businesses can use to enhance their customers by
maintaining the loyalty and satisfaction towards their customers. Marshfield Bakery
Company uses these strategies to expand in global boundaries. This expansion is helping
them in achieving opportunities towards the company in order to get better sustainability
in challenging market place (Zinchenko, and et.al., 2021)
 Product Development: When new product or new innovation is planned to sell in current
market place, then this strategy is used. This strategy also works on upgrading the
existing products as it not so expensive process for product development as lot of time
and resources are saved. In context of Marshfield Bakery, they can use this strategy in
market expansion by providing new services so that they will attract new customers and
higher market portion.
 Diversification: it is growth and expansion arrangement of a business by acknowledging
new possibilities in different market and product areas. It helps the company expand
sales and profitability. This can be done by including new feature and new product and
new services. Marshfield Company will be at high risk because if this strategy leads to
failure then it will ruin the overall image (Sohl, Vroom, and McCann, 2020).
From above discussion, it can be concluded that Marshfield Company can approach towards
Market development. Through using this strategy they can generate high revenue and earn a
lot. It improves sales and increases the business opportunities in current ongoing market
conditions.
M1. Options of Growth range within analytical framework to understanding competitive
advantages
For understanding the external and internal business environment factors that can affect the
competitiveness of the industry/segments SWOT analysis, Porter five forces and PESTLE
analysis of Marshfield Bakery is provided.

SWOT Analysis
It is a strategic tool used by businesses to identify their internal competencies and weaknesses of
a business and external opportunities and threats that hinders growth.
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
Porter’s five forces
It refers to a framework that focuses in an effective industry or market by examining the
competitive market. It only examines the detailed competitive structure for shaping the strategies
(Csaszar, 2018). It has five elements:
 Competitive rivalry: It focuses on number of competitors and their strengths within
market. Marshfield Bakery Company has high level of competitive rivalry within market
place.
 Threat of substitution: When the customer switch to other company for products and
services from current company then it is called threat of substitution. Marshfield Bakery
has high threat of substitution due the existing competitors like Starbucks that are dealing
with bakery products and services (Miller, 2019).
 Threats of new entrants: It is the risk created by a new competitor for current companies
within an industry. This generally occurs when a new company started selling similar
products as previously existing companies.
 Power of Buyers: the buyers power is always been high due the reason that there are
other rivalry companies which are selling similar products, so customer can easily switch
from it.

 Power of suppliers: It is the amount of control a supplier can exert on its buyer. It can
link to suppliers’ ability to increase price, or decrease the quality or limit the product
number.
PESTLE Analysis
It is a strategic frame work used to evaluate business environment in which a firm operates.
It is a popular tool which helps in the development of innovative products and their market
initiatives. The factor of pestle analysis is very important in financing decision and model
assumptions. The pestle analysis is used for evaluation of Marshfield Bakery which is entailed
below:
 Political factor: This factor is based on government policies and actions and consists of
tax policies, antitrust and other anti-competition issues that enhance the political stability
in country. As per this factor United Kingdom has a political environment based on the
government intervention for the business of real estates as it linked with human benefits.
The government of United Kingdom provides full support in business expansion. There
is one uncertainty factor also known as Brexit Market based in United Kingdom does not
allow to trade within European Union.
 Economical factor: this factor allow the company to grow within economical aspects by
generating GDP , purchasing power, currency fluctuation, employment rates(Yaghi, and
et. al., 2021). Due to implementation of Brexit there is a negative impact generating over
Marshfield Company.
 Social factor: This factor consists of demographic consideration, consumer belief, and
attitude towards working condition. The UK people creates immense traits of
opportunities for Marshfield Bakery to enhance better business expansion.
 Technology factor: This factor contains of technological advancements automation,
cyber security, technology infrastructure to enhance the market power of company. The
company Marshfield Bakery uses these advance technology to make better bakery
products. They are providing expertise within their business which is helping them to
acquire for high market share.

 Legal factor: this factor may affect the border economy consist of industry regulation,
employment and consumer protection laws. Marshfield Company follows the strict food
safety legislation and follows consumer protection which maintains hygiene.
 Environmental factor: this factor uses that business technique which is not harmful for
environment. It contains carbon footprint, climate change impact and keep track on
greenhouse gas emission. Considering this factor Marshfield Bakery Company work on
waste management within production system for limiting their wastages & use their
procured resources in optimal manner. This factor enables the company to get high
market edge for long term survival.
D1. Critically evaluating specific option for growth pathway
By maintaining specific company performance and effectively attaining high competitive
advantages, company have better growth. In context to Marshfield, there are several risk factors
like manpower, policy, investments & other factors, those can build high barrier within
optimizing growth. There are some specific option that can be counted for growth and provide
positive outcomes to get competitive advantages.
 Market penetration strategy could be great choice for the business because with this
Marshfield bakery could utilise existing products and services to offer into existing
market end expand its coverage.
 Market development is also very suitable and most appropriate for Marshfield bakery to
enter new market with existing products and services to increase market share.
 Product development is a good strategy but it may not provide extensive growth to the
organisation because the availability of many competitors in the market with variety of
products may restrict the growth of company in the existing market.
 Diversification is the riskiest strategy that must be avoided by Marshfield Bakery to
avoid unnecessary wastage of resources, time and finances. In this strategy entering into
new market with completely new products could giver chances for growth but this
strategy needs time and financial investment which makes its riskier.
From above discussion, it can be concluded that Marshfield Company can approach towards
Market development. Through using this strategy they can generate high revenue and earn a lot.
It improves sales and increases the business opportunities in current ongoing market conditions.

Task 2
P3. Assessing potential sources for funding for business along with benefit & drawback
Marshfield Bakery can gather funds through market by various methods for gathering
funds for business to get expansion more effectively are mentioned below:
Internal sources of finance:
This includes money that belongs from business itself. Several internal method a business
can use like owners capitals as in money invested in business, retained profit and selling assets.
This can sometime come from their personal savings (Cesarone, Scozzari and Tardella, 2020).
Some of the advantages and disadvantages are elucidated below:
Advantages Disadvantages
It allows the company to maintain full control
and improve the planning process. It also
reduces the overall cost of most projects and
improves overall revenue of company. It limits
external interference on the company.
It may cause negative impact on operating
budgets and require accurate estimation for
effectiveness. These strategies allow fewer tax
benefits to company. It limit the available
number of outside insight
External source of Finance
It includes money which comes from outside the business. Various external methods, for
example, venture capitalists, family, bank loans & overdrafts and friends, new partners, leasing,
government grants and so on. Also, it can be further divided into two parts that is equity and debt
as working capital is must for any company therefore, the decisions must be taken carefully in
relation to external financing(Lee, Hallak, and Sardeshmukh, 2019).
Advantages Disadvantages
It is more flexible method with least paper
work and fewer processes. It preserves the
resources and allows the company to grow and
due to which Marshfield can easily collect its
funds.
It involves high rates of interest, due to which
the profit for the company can be hampered if
the outcome goes in negative direction.
Bank can ask repaying anytime which can
cause problem to company like Marshfield.

Crowd funding:
Funding collected by the peoples typically via internet is termed as crowd funding. This
method has numerous advantages and disadvantages, some of them are mentioned below:
Advantages Disadvantage
It is more flexible with minimum strict
conditions.
It is very easy, fast and cheap way of raising
funds.
It is helpful in Marshfield company as it
develop a high rate of opportunities for
increasing targeted market place. It directly
provides the feedback which help in
modification and can be introduced in
expansion plan.
If the financial target is not attained, projects
will be removed.
Due to minimum strict rules, very few financial
grantees are offered; this will create a negative
impact in market place if the expansion plan
get failed.
This is highly dependent on ICT structure,
thus problem in ICT can leads to several
disadvantage for both platform and investors.
Peer Funding:
It is a type of funding which permits to take up or borrow the investment from each other
without the involvement of bank. Some of the advantages and disadvantage are:
Advantages Disadvantage
Their rates are opportunistic with fast
application approval process.
They have different approval criteria between
platforms so that one could move to another for
approval if declined by another.
Good credit and security id needed for best rate
proposal,
loan are vary minimum than bank and large
penalty if fined if the payment is missed.
There is no protection for borrower as there is
no facilitation by government.
Venture finance:

It is a funding Process in which Venture Funding organization provide investment to the
investor who want develop a new business and have high growth future (Vaznyte, and Andries,
2019).
Advantages Disadvantages
It provides very high opportunity for
Marshfield Bakery Company in Expansion of
Business in order to progress in long term.
This source of financing comprise of high
expertise member, whose suggestion is
optimised through Marshfield Bakery
Company.
In addition to this, the owner are not required
to repay the invested sum also on the case in
which the company has failed still it will not be
liable to pay the amount (Gornall, and
Strebulaev, 2022).
Venture Funding is very hard to find thus it is
very time taking process.\
Under this, the extensive due diligence is
required
This can be a time consuming process during
receiving the proposal which will delay the
process of the funding.
Moreover, it can be challenging for those one
who has no network
M2 Potential funding source with justification for adoption
In relation to Marshfield Bakery company, there are various sources of funding and the
company make use of Crowd funding as the crowdfunding is utilised to create better options. It
will help to generate more options for the investors to invest and it can be seen that all the
companies are required to monitor their performance (Wald, Holmesland and Efrat, 2019).
Crowd funding is more flexible with minimum strict conditions, fast and cheap way of raising
funds and is helpful in Marshfield company as it develop a high rate of opportunities for
increasing targeted market place. In Peer funding, rates are opportunistic with fast application
approval process. Venture financing provides very high opportunity for Marshfield Bakery
Company in Expansion of Business in order to progress in long term. Also, this source of
financing comprise of high expertise member, whose suggestion is optimised through Marshfield
Bakery Company. In addition to this, the owner are not required to repay the invested sum also
on the case in which the company has failed still it will not be liable to pay the amount