Business Growth Strategies: An Analysis of Pret a Manger's Potential

This report provides a comprehensive analysis of business growth strategies, using Pret a Manger as a case study. It begins with an introduction to growth planning and its importance, followed by an analysis of key considerations for evaluating growth opportunities within an organizational context. The report then evaluates growth opportunities using Ansoff's growth vector matrix, assessing market penetration, product development, market development, and diversification strategies. It also explores potential sources of funding, including bank financing and venture capital, discussing the benefits and drawbacks of each. Furthermore, the report outlines the design of a business plan for growth, incorporating financial information and strategic objectives for scaling up a business. Finally, it assesses exit or succession options for a small business, explaining the advantages and disadvantages of each approach, and concludes with a summary of the key findings and recommendations. The report emphasizes the importance of strategic planning, market analysis, and financial management in achieving sustainable business growth, providing valuable insights for businesses looking to expand and succeed.

Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.........................................................................3
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................5
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................6
P4. Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business............................................................................................8
P5 Assessment of exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning of growth is a business strategy of activities that enables the business and its
executives to plan the profit segmentations of the business. With the help of proper planning
organisation of a scale can enhance their competitiveness and profitability. This will also allow
company accomplish its aims and objectives in a well define and effective manner. A business
plan also plays a main role in allocating resources in a major segment of the business. The
management consider in this report is Pret a Manger. It is an international sandwich shop
franchise chain that is based in the United Kingdom. It was founded by Jeffrey Hyman on 21
October 1983. Pret a Manger currently operates 450 shops in nine different countries. It is one of
the format that operates and work to gain the profitability as per their feasible strategies
(Blomley, 2017). Pret a Manger represents a blistering commercial area in the country where
entrepreneurs are moving to tap. It will enhance the profound perception into the way of the
business that allows the unexpected outcomes.
TASK
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context
Sustaining growth and profitability is never a assurance in the dynamic surrounding of
industry in respect of the restaurant. The models of the business that operates on traditional
norms as that are experiencing the abbreviated life cycles of the product and services. It is a
continual variability of the way that is getting an executives team priority to grow the company's
revenue in the fact that decrease the relative manner of equivalent. It concentrates on the set of
business that severely focuses on the matter of likely the initialize the segmentations that leads to
the average revenue growth and development in the fixed ratio of manner to set the
segmentations. As the five steps that evaluates the new set of market opportunities in the manner
of growth of the business that are as follows:
 Research the consumers and competition: It uses the market research to examine the
visitors and consumers and its competition on sectional level. As it will help the
organisation to increase the demand and consumer satisfaction in respect to the potential
form on the sectional level. It is also determined the segments of the consumers that

shares the key terms of the strength and weaknesses to the particular growth and
development.
 Get a high level view of the market: As the visitors and consumers that have the wider
sense of knowledge as to the market trend. The management of business could trapped
the new point of percentage that is enough to increase the actual value of the market
potentiality (Bukenberger and Palmintier, 2018),. The manner of the market research that
the experts are not involves the potentiality to the total objective of the scenario that help
the organisation of management to adjust the quora of business.
 Explore adjacent opportunities: As the researchers has been analysed the segmentations
of the growth and development in the field of area. As the companies with the
continuous profitable growth that has the controlled plan of action to expand the existing
business management.
 Understand the business surrounding: The area of business is the major issue to explore
in the manner of performance that contributes the flow of the business. In the sectional
area it will enhance the factors and challenges that faced to it in a visual manner.
PESTLE factors are macro factors that affect the activities of business from external
forces. It has direct as well as indirect impact on the operations and managerial activities of
company. In context to Pret A Manger, if they expand it the activities of cafe is affected by some
external forces which are discussed as below:
Political factor: If the brand wants to expand it, then the new policies regarding expansion can
affect it. The rule and regulations of government for expansion, country has political instability
and poor trade relation between countries it can affect its growth and market expansion.
Economic factor: Increase in the interest rates or fluctuation of prices of food and beverages can
have negative impact can decrease their profits. Thus, it becomes difficult to expand with
fluctuated profits.
Social factor: If cafe adopts some new food trends then they need to keep in consideration the
taste and target customer so that it can attract more customer (Fainstein, 2018). If customer did
not prefer it or liked it, then it affects the expansion of launching something new.
Technological Factor: For expansion they need to use advanced technology for providing better
services using digital sources. They need to analyse and learn to adopt better technologies for

serving good. Lack of advanced technological adoption can create hindrance in market
expansion.
Internal considerations
Resources and capabilities: Prêt products are fresh and additives, which guarantees their quality
and ensures their regular maintenance. He invests and prepares his relatives and has his own set
of principles for this. At the expense of quality, while this is a reasonable sign, at least setting too
high expectations for company that can affect them in a downturn or shortage of items. If the
items are not sold, there could be a lot of waste, due to their strategy of throwing things away
before the end of the day.
Core Competence: Prêt has one of the basic skills of creating themed food, offering its customers
the best in regards to a new personalized standalone arrangement, setting itself apart from its
competitors in the comparative line of organizations. Prêt has a strong opinion on its features that
commercial advantages don't. Likewise it is unmatched in terms of vital ecological resources and
appearance.
Competitive advantage: Prêt has an incomparably high hand alongside his administration over
opponents. Some of its enemies like Costa, Starbucks, EAT, KFC and McDonalds are not in
normal position or normal objects. They may still have comparable or quality selective items,
they usually have a margin.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
Growth options :
 Ansoff’s growth vector matrix: It is also termed as the product and market enlargement
that is used by the management field to analyse the plan and their strategies for the
growth and development. It is a marginal risk strategy that the management of business
has to ensure it to increase the marketing efforts to make it better the market share. It will
enhance to maintain the efforts and improve it on share of market.
As there are new market orientation with the existing products and market development
that allows the variety of product that covers the strategies that are as follows:
 Market penetration: As it concentrates on the sales that are increasing in the present
manner of the present product to an existing market place. The management of business

that has to ensure the advantage in the current quality, resources and it gears towards the
manner of growth and development oriented strategical policies(Ghosh, and
Chifos,2017)... As in the manner of maintaining the present attribute in the active section
of market to ensuring the segmentations to grow because of the development and growth
in the size of the market as to it because they have provided a measure of quantitative
proposition that is better than their contenders in the market.
 Product Development: As the management of business launches new product in the
present market that ensures the strategies that can successfully meet the expectations of
the consumers and visitors in the existing market place. It might be too risky to handle
the plan of action as it will be not sure to the transfer of visitors and consumers from the
present commodity of product to the fresh products and services that would be promote it
smoothly as the management of business processes to plan of action. The development of
product also ensures the term of values that encompasses the brand value that initialise it
to meet the consumer and visitor satisfaction in the quora of the business.
 Market Development: As the organisation that ensure the market orientation in the
expanded form into the segmentations of new market quora with the present product with
the term of market development. Market development is more on high risk than market
penetration as the management of business is entering in the unknown form of field that
illustrate it in the course of the section of various field to owed the purpose before
entering into new sort of markets. The management of business are centred competence
that must be straight with the commodity that are rather than the markets and in the
management of business it senses an session of opportunity in the field of new markets
for its present products.
 Diversification: As the organisation of business launches new products in the present
market to deal with the four manners of strategies in the Ansoff Matrix. As it is essential
for the management of business that are not only analysing the plan of action but also
manage the launching of new products in the adequate termed of manner that may or may
not be well received by the consumers or visitors (Guzman.,2020). Managerial experts
suggest the variety of task as per the diversification strategies that allow the firms as on
adequate form of cash and other points as the management will need to have profound
funds to act as according to the frame work that relates until the profits are realized.

P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
Funds and resources are very important for the every organisation to conduct various
organisational activities. These funds are provided by the various sources. Pret a manger is
taking funds from banks, venture capital funding and by bank financing. Furthermore there are
various options are available to take loan by both private equity and debt financing. The
organisation evaluates all factors such as their benefits and drawbacks, then take effective
decision. All these sources are discussed below:
Bank financing: Bank loans are very popular source of finance for the business. It can
be taken from the nearest branch. Banks provides funds for the various business functions. Pret a
manger prefer to take loan from the banking sector. Bank financing is a tricky source of finance
as it includes various rules, regulations, different type of funding options and interest rates that
are according the type of loans. Banks provide the short, medium and long term finance and
working capital facilities to business. Before taking the loan from the bank, respective
organisation evaluates all factors such as interest rates, procedure of loan, documentation and
other legal perspectives. Pret a manger take financing decision after knowing all benefits and
drawbacks that are discussed below:
Benefits: Banks provides range of finance and payback options, Pret a manger can take
the loan according its requirements. It offers quick process to take loan. Bank loans do not affect
the equity of Prêt a manger.
Drawbacks: Usually it is very difficult to take loan from banks as it includes various
formalities and lengthy documentation process that consumes too much time. There are
continuous changes are happened in the procedure and criteria of loan.
Venture capital funding: Venture capital funding is used by the Pret a manger for taking
finance. It is basically a form of private equity and financing organisation that provides fund for
the new start-up companies and small scale enterprises (Hayes, 2021). Pret a manger take
required finance from the venture capital in the exchange of equity shares of its company. The
amount is received only in the condition when the organisation is acquired by the company or it
goes public.
Benefits: venture capital funding provides instant finance to the Pret a manger. It
provides the finance to the individual as well as partnership firm and for the future entrepreneurs.

Organisation can take the large amount of funds at a time for the growing and existing
companies.
Drawbacks: Venture capital inverters have power to look all business activities and right
to provide direction to the company.
Small Business Administration loans: Small business administration is the directed by
the government for the providing fund to small business. Pret a manger prefer SBA to take loan,
as it is regulated by the government so various security factors are included in this. It helps the
small business as it act like a guarantor of their loans. Provide fun for develop entrepreneurial
skills, for their education by providing training to them. It ensures that large amount of loan is
given to the small scale business. Pret a manger analyse all factors of SBM and then take the
decision of granting loan.
Benefits: When the organisation treat these loan effectively than it will increase the
chances to take loan from banks (Im, and Kwon, 2019). It is quite beneficial for the maintaining
the relationship between the local lenders and local borrowers.
Drawbacks: Before granting the loan, small business administration looks all the data of
previous 2-3 years. It fallows strict guideline and documentation procedure. It is quite difficult
for the new companies to obtain loan from this organisation.
P4. Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
Overview of the company: Pret A Manger is cafe situated in London, UK is an
international sandwich shop franchise chain serving fresh sandwiches and in addition to it
serving different variety of bakery items, best organic coffee and soups, in different parts of the
country.
Vision: Their vision is towards serving better food quality and focus on the customer
health and safety.
Mission: the mission of Pret A Manger, is to serve high quality fresh and organic food
product to the customer, without using any chemical or preservative.
Strategies of the company: The Company have developed SMART objectives. By
which they can earn more revenue by attracting more customer towards them. They have
planned so many strategies, to increase growth and profitability of business. Some of them are:
 They need to bring something innovative which attracts more customers towards them.

 They want to increase the sales by 5%
 Want to expand their business more in the London market to earn more market share and
lead towards growth and success.
Identification of opportunities for the growth and expansion of business: it is necessary for every
business to do SWOT analysis so as to identify the opportunities which can help to expand and
growth of business and take the first mover advantage.(Khan, 2017).. In this report, Ansof
Matrix is used for identifying and analysing the opportunities to grab them for the betterment and
advantageous for business. This matrix is a tool used by business so as to plan strategies and
examine their growth. From this matrix, diversification strategy is used to plan for growth and
expansion. This strategy focuses on introducing new product to gain market share while entering
into new market. Hence helps in attracting more customer which enhances the sales and can help
in generating higher revenue so that it can achieve the SMART objectives.
STP
It is necessary to analyse the market trends, needs before expansion so that the company
can familiar with the needs of potential customer and also analyse that by using what techniques
they can promote their products, and target the customers to increase sales and their profitability.
Segmentation: Pret A Manger needs to divide the population of city in different groups
by dividing them on the different basis like age, demographics, taste and preferences, interest so
that they can get a clear picture for the expansion which can help them to gain a better
knowledge about the needs and demands of customers. This can help the company to bring
something which can fulfil their needs and wants.
Targeting: It is necessary to target customer which can increase sales and profitability. In
context to the company,Pret A Manger generally focus no age group of 18 50 years, specially on
youngsters as they are conscious in respect to their health. The company serves organic food of
high quality, so it can be beneficial for them to focus and target people to attract more and
increase their revenue and grow their business.
Positioning: Positioning means creating awareness of the brand or the new product which
is about to launch in the new market. For this, a company need to set or think something unique
so that it can promote and create awareness in the market (Li, 2020).. Pret A Manger, can give
samples of their product in the new market when someone purchases food from them. They can
use different promotion tools like pamphlets, billboards to advertise in the city. The company can

use social media platforms like Instagram, Facebook, and YouTube channels to promote their
brand and gain market share. These platforms increase the reach of the company in the new
market and people could get aware of the brand.
All these are can help Pret A Manger, to serve he people of new market as per their need and can
gain more market share, which makes the growth and expansion successful.
Financial plan
Finance is the major source for the expansion of company in new market. For growth it is
necessary to invest in the business to achieve higher return. The company needs to bear a high
degree of risk while making decision for expansion as the return is not predicted. So for this,
Pret A Manger needs to analyse the amount of capital thy need to have to invest in their market.
For this they need to prepare a financial budget so that they can get a estimation of fund they
require for the expansion (McCann, and Van Oort, 2019) And according they need to raise funds
different sources liker from their savings, borrow fund from banks and other financial
institutions.
P5 Assessment of exit or succession options for a small business explaining the benefits and
drawbacks of each option
Exit option: Exit option is being evaluated by every organisation either it is sole
proprietorship or one person company. All needs exists strategies. There are various options are
available for the Pret a manger to exit the business, these are liquidation, sell the business to
managers and employees and in the open market. All options include their own benefits and
drawbacks. Pret a manger analyse all these and adopt which suits the organisation.
Liquidation: Liquidation is the process of selling the company's assets and wind up of
the. It is basically the process of bringing the respective business to the end and distributes its all
assets in order to clear all liabilities. It is P5 Assessment of exit or succession options for a small
business explaining the benefits and drawbacks of each option
Exit option: Exit option is being evaluated by every organisation either it is sole
proprietorship or one person company. All needs exists strategies. There are various options are
available for the Pret a manger to exit the business, these are liquidation, sell the business to
managers and employees and in the open market.(Pastor, , 2018).. All options include their own
benefits and drawbacks. Pret a manger analyse all these and adopt which suits the organisation.

Liquidation: Liquidation is the process of selling the company's assets and wind up of
the . It is basically the process of bringing the respective business to the end and distribute its all
assets in order to clear all liabilities. It is occur in situation, when the organisation is not able to
pay its dues, in other words the organisation is declared insolvent. Pret a manger close all its
operational activities, so all assets are sale out and creditors, shareholder and other parties are
paid on their priority level, if it is not able to regulate their business properly. Usually liquidation
is termed as the company is close their operations due to its poor performance.
Benefits: The benefits of liquidation are that it is easy as well as quick process to wound
up the organisation and it depends upon the sales of assets.
Drawbacks: liquidation provides very low return on investment and assets are sold out on
less amount. In this process, creditor claims first on the amount on which assets are sold. In the
liquidation the goodwill value of company is being lost.
Sell business in the open market: Open market business sale is the most famous exit
strategy for the small scale businesses. If the managers and executive of Pret a manger is ready
to get retirement, so they have option to sale the business in open market at some specific price.
In this process the ownership is being transferred to the other one who bought the business. Here,
some benefits and drawbacks are discussed:
Benefits: If the business in its profitable condition, It attracts the buyers and the company
is being sold quickly. The process is able increase the return of owners, as they sell the business
at desired price.
Drawbacks: If the business is not earning the marginal profit, so it becomes difficult to
sale. For such company's it becomes long process to find the buyer in the open market.
Succession strategy: Succession strategy is referred as the passing on the role and
ownership of the respective company to an employee and the group of employees. It is also
known as the replacement planning of the organisation. The process of succession is ensures the
smooth running after effective and experienced employees are passed away from the
organisation. Pret a manger used the merger and acquisition and integration. Both attach benefits
and drawbacks, so organisation take decision accordingly.
Merger and acquisition: The term of merger and acquisition of related to the transaction
between two organisations that are combining in some specific manner. Basically is the process
of combining similar size companies in a single identity(Roopavathi, and Naidu, 2017). If Pret a

manger in their succession period, the organisation can Marge other companies under the its own
name. The organisation can expand their business by merging other company.
Benefits: It this process the bigger firm is more efficient then the other and economic in
scale process. By this company is able to earn more profit and spend it in the research and
development. It is quite beneficial for the struggling firms by getting more effective
management.
Drawbacks: It increases the monopoly of some companies and expands their market
share that affect other companies. It is quite difficult for the two companies to merge and there
are some issues are raised such as communication.
Integration: Integration is the process of changing in business activities by involving
digital aspects in the functions, so they can be performed in the most effective manner. Pret a
manger use various digital platforms to conduct their functions in defined manner. To enhance
the connection with customers, suppliers and partners better communication is required at all
level of organisation. The respective company conduct various research and development
programmes to enhance the organisational digital aspects.
Benefits: Integration is able to enhance the productivity of organisation. It facilitates Pret
a manger by providing better management system (Sorbe, and Johansson, 2017). All functions
are being accomplished at lower cost and it is able to improve overall customer’s satisfaction.
Drawbacks: It enhances the security issue for the organisation. It is very complex process
to integrate with other organisation; there is need of IT specialist to update the system
effectively. It includes the high cost in order to maintain the system that is not afforded by the
small businesses.
CONCLUSION
By above explanation, it can be concluded that growth in very important for each and
every organisation in order to survive in the competitive environment of respective market. The
organisation should develop various innovations in their activities and functions to remain
competitive. Growth provides various opportunities to enhance productivity as well profitability
of organisation. Various technological aspects are included to make strategies more effective
and efficient. Small scale business has to evaluate all market opportunities and grab then in order
to success of it. There are various sources are available that provide funds to these businesses,