MOMA FOOD: Report on Growth Planning, Strategies, and Funding Analysis

This report provides a comprehensive analysis of growth planning for MOMA FOOD, a business specializing in oat-based breakfast products. It begins with an evaluation of key considerations for identifying growth opportunities, including Porter's Generic Strategies and PESTLE analysis, which assesses political, economic, social, technological, legal, and environmental factors. The report then applies the Ansoff matrix to explore growth strategies such as market penetration, product development, market development, and diversification. Additionally, it examines various sources of funding, including owner's family and friends, trade credit, and leasing, along with their respective benefits and drawbacks. The report concludes with a discussion of business planning and succession strategies for small-scale enterprises, providing valuable insights for MOMA FOOD's sustainable growth in a competitive market, particularly in the context of challenges like Brexit.

Planing for growth
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Table of Contents
INTRODUCTION ..........................................................................................................................3
Task1 ...............................................................................................................................................3
P1Evaluation of key considerations for identifying growth opportunities along with different
Frameworks............................................................................................................................3
P2 Ansoff matrix for identifying growth opportunities..........................................................5
P3 Business plan for optimum growth...................................................................................7
Task2 ...............................................................................................................................................7
P4............................................................................................................................................7
P5............................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................7
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INTRODUCTION
Planning is defined as a process in which it is a thoughts and ideas about the various
activities in order to attain the desired goals and objectives. Planning for growth is a tactical
business activity which is able to plan by the owners of a business for future growth and
opportunities in order to generate revenue. Further, this also helps to identify the market growing
based on the competitors that are available in the market. Every company adopts higher
authorities that develops strategies and plans which lead to sustain in a market for a longer
period. In context to MOMA FOOD, which is deals in breakfasts with oats shake. It was founded
by Tom's which is runs its business by own which includes all the ingredients for the roller
coaster journey with MOMA. It provides all types of oats shake with low sugar granola or dairy
free oat drinks. In addition to this, it also provides suggestions to SME's that helps to grow their
business in an effective and efficient manner. This report includes key considerations of growth
and opportunities and also Ansoff Matrix which is discussed. Along with this, the various types
of funding including benefits and drawbacks. Moreover, it involves business planning with
succession strategies for the small scale enterprises.
Task1
P1Evaluation of key considerations for identifying growth opportunities along with different
Frameworks
Every business has its main objectives to accomplish high growth and revenues within a
short period of time. The organisations increases their business functions by offering new
innovative and creative goods and services for future growth of a company. SME's business
adopts new technologies for enhancing their profitability in overall business environment
(Albert, 2017). In context to MOMA FOOD which is founded on 12 August 2005 and also
provides specific foods with all the ingredients. In addition to this, it is very essential to develop
effective strategies which aid to sustain for a longer time. New technologies changes quickly and
that lead to affect on the profitability and sales of a company. For instance, an organisation offers
creative and innovative products and services that could sustain in a market for a long time. The
manager of this company adopts PESTLE analysis in order to increase profitability and
productivity of a company. This is described as follows:
Porters Generic Strategies
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The main goals and objectives of every company is to increase competitive advancement
with their competitors. For instance, the company adopts generic strategies that helps to gain
competition within the market environment. It could develop various strategies for sustainability
that lead to directs in a particular enterprise. The four strategies of Porters which is described as
below:
Cost leadership: This strategy aid an organisation to offer new goods and services at low
price with high quality(Arku, Yeboah, and Nyantakyi-Frimpong, 2016). In context to MOMA
FOOD, this could helps a company to acquire leadership strategy in order to gain competitive
advancement.
Differentiation: This strategy emphasis on adopting innovative products which is
differentiated from competitors. In context to MOMA FOOD company it could attracts large
amount of customers to increase its sales and profitability in an effective and efficient manner.
Cost focus: MOMA FOOD could adopts this strategy to help a company to enhance
morale of a customer which lead to affect on sales and profitability. Further, companies analyse
the needs and wants of customer and offer products according to them.
Differentiation focus: With reference to MOMA FOOD, this company would develop
creative products that attracts high amount of people for the higher brand image within the
market.
After the above analysis of strategies, the MOMA FOOD adopts various strategies which
could help a company to increase competitive advancement with a market environment and
further also enhancing the profitability and sales in an efficient and effective manner.
PESTLE Analysis
It is a approach which indicates the environment scanning that utilise six elements which
affects the continuously running of external factors. This analysis involves political, economical,
social, technological and legal factors of an organisation(Birkin, Clarke, and Clarke, 2017). The
description is as follows:
Political Factors: These factors involves policies and procedures, rules and regulations
which are enforced by the government. In MOMA FOOD company it provides a company to
explore its business in any competitive market areas. Brexit leads to changes in decisions
outcomes on the various issues whether the situation changes are small and the results indicates
the clear review.
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Economical factors: This factor affect on the level of performance of an organisation. In
context to MOMA FOOD, the economic condition of UK positively affect on the profitability of
this food industry because of the recession in 2008 in UK country. The impact on economy after
Brexit lead to reduce per-capita income in the UK.
Social factors: This factor involves demographic factors. With reference to MOMA
FOOD, it identifies on the present demand of its customers for their services which are rendered
for them(Crow, 2015). The impact of Brexit on social factors lead to provision of health and
social responsibility and cares.
Technological factors: This factor includes beginning of decision of a company. In
context to MOMA FOOD, it could takes advancement of better opportunities which uses new
technologies for attracting customers. The impact of Brexit lead to affect on the new
technologies and innovations that mostly depends upon the relationship of EU which acquires
the UK country.
Legal factors: This factor involves laws, rules and regulations and code of conduct of a
country. In context to MOMA FOOD, it works accordant to laws and pays taxes which could
results in low profitability of a small scale business. The impact of Brexit on laws and legal
structures presents opportunities and risks of a market.
P2 Ansoff matrix for identifying growth opportunities
It is that matrix which is used by the firms to identify growth opportunities in market
where firm what to lunch its product for further growth and expanding its business. expatiation
is most important factor for a organisation for facilitating growth and achieving organisational
goals. Some factors like BRIXIT have there influence on theses strategies which have to be
analysed by MOMA foods. There are four business strategies which are stated by Ansoff matrix
these strategies are product development, market penetration, market development and
diversification(Grant, 2017). These all are stated below:
Market penetration: This is the strategy which is adopted when company has to
introduce its product in existing market. It incudes methods like discounting on price, heavy
advertisements, etc. which will help firm in attracting more customers. This can use by MOMA
food as there core strategy by providing deep discount on its products this will help in attracting
more customers for and will aid them in increasing its market share for long survival. These
market penetration strategies are also helpful in identifying new customers as well existing
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customers which can be attracted towards organisation and can use for selling products of
MOMA foods. There are different approaches which can be utilize by firm for penetrating
market.
Product development: Product development strategy are those where firm use new
product in existing market for development of there product and retaining existing customers as
well as attracting new ones(Gunder, and Hillier, 2016). MOMA foods can implement this
strategy on its organisation by introducing more new produces made up of oats and different
variety of ingredients and have to use variety of marketing strategies for promoting its products.
This will help them in achieving there targets and making new product customer friendly. It can
also use these strategies as a part of there core planing function. This can help them in dealing
with other political issues which are arise due to BREXIT. These issues are like restriction on
some products or core material of these products. This all can be managed with this strategy
where company can change its products by bringing new innovation in these products.
Market development: In this function firm use new market for there existing products
theses products are well known and have sound image in eyes of customers so for global
presence of these product company use this strategy of lunching existing product in new market.
Market development is core function and basic for planing and globalization. MOMA foods
have various kinds of products which can perform at global level or in new market. Company
can use different kinds of methods for market development(Keough, 2015). Some methods are
entering in new domestic market or entering in international market with existing products .
These all strategies can aid firm in dealing with situations like BREXIT which have effected
working of SMEs in local market.
Diversification: This strategy is used for lunching of new product in new market. This is
difficult to implement as chances of failure are more in this method because of new market and
product. Diversification is a difficult task for small scale enterprise because they have no
research and development which aid MOMA foods in finding opportunities of there new
products in global market (Lambert, and Oatley, 2017). This lack of R&D can lead in failure of
new product in new market and will lead in huge loss to firm which ultimately leads in closer of
operations. MOMA foods should not use this as there prime strategy.
Ansoff matrix is the best matrix for analysing market situation. Here in MOMA foods it
works as decider for the enterprise. This is because MOMA is a SME which is dealing in United
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Kingdom and UK is facing the political blunder of Brexit which is also effecting the working of
MOMA foods in business environment. Company have to clearly examine this the Ansoff matrix
and use all its given strategy to expand there business and use the opportunities provided by
Brexit. It will also act in minimising threats generated because Brexit. MOMA foods have to
protect itself from diversification because it is unable to perform it because of lack of
resources(Piro, 2016).
P3 Sources of funding
Sources of funding refers to that areas which can help firm in fulfilling its financial needs
which can and run its operation smoothly there are different king of sources which SMEs can use
for financing their needs same of theses sre stated below with their benefits and drawbacks .
Owner's family and friends: This is the cheapest source of funding which can be used
by small scale firm like MOMA because it is easily available at low cost and without interest.
This type of finance is to low to operate organisation but it can be helpfully in starting of new
business there are different benefits and drawback of this system which are stated below:
Benefits: The major benefit of this source is that it is available widely.
Drawback : The drawback of this source is that it does not fulfil long term requirement
of MOMA foods(Plotnikov, and et. al., 2015).
Trade credit: It is that source of financing which firm use to get short term benefits
from its suppliers. Trade credit is that money which come when firm gets credit for its purchase
from suppliers. This is the cheapest source for fulfilling working capital requirements of firm.
For short period of time.
Benefits: Trade credit have benefited organisation in facilitating hustle free working
because of easy availability of credit for supplies.
Drawback : Trade credit will effect organisation as it will restrict organisation to buy
from other suppler. It will also restrict firm's bargaining power.
Leasing : It is that source of funding of operation which firm can use by leasing the
assets rather than purchasing them. This is the best method which firm can use in for effective
utilization of its resources and can get maximum benefits out of its limited resources.
Benefits: There are several benefits of leasing but the main benefit is that it facikl=tate
firm in getting there resoDrawback :urces in best way.
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Drawback : Leasing also have a problem that it will never help firm in growing and
capital assets of firm will not increase(Rodwin, 2017).
Bank finance : Commercial banks provides loans in short term or long term periods to
there customers in form of overdraft, commercial loans and cash credit limit. These all are
covered in bank finance. Bank provides these facilities on minimum interest which is easy for
business to return.
Benefits: Bank finance is great benefit to MOMA foods that it can use this finance in
growth as it is big in number(Sarin, 2019).
Drawback: The major problem with this source of funding is it have huge paper cost and
other charges which make it costly finance source.
Government assistance: many government of different nation provide some assistance
to SME of their nation. This assistance is provided in terms of their capital and tax rebate or loan.
This is cheapest source of funding and it is provided for promoting SMEs in economy.
Benefits: Government assistance provide firm the credit at cheap rates.
Drawback : The only drawback of this source is that it does not provide surety to firm
about credit amount and availability (Siedentop, Fina, and Krehl, 2016). This have also no fixed
time period which will effect on firm plans and process.
Task2
P4 Business plan for optimum growth
Business plan is combination of strategies, polices, plan and procedures which have main
aim of achieving organisation goals and objectives. Business plan can also be stated as rode map
for achieving goals of organisation in long run . There plans are always provide guideline to
organisation where it get help in identifying its function and performing according to that.
Here, the business plan of MOMA foods will be disused which is a SME and operating in
UK. It provides delicious foods to its customer which is healthy and full of nutrition. MOMA
have various growth opportunities for their business but these can only be achieved with the help
of effective business plan. Company's mission and vision are discussed below:
Mission: MOMA foods have mission of “ providing quality products to there customers
which can help firm in getting fit an healthier life and changing the living standards of people by
food and beverages use”
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Vision: MOMA foods has clear vision of influence people behaviour with the help of
there food items and to attract them towards healthy lifestyle with elimination of unhealthy food.
Situational analysis: It is that process which a firm use to evaluate its external and
internal factors which have there direct impact on firm profitably as well as working in business.
SWOT analysis is used by MOMA foods for analysing the external environment impact on there
business plans. This is evaluation of strengths, weakness, opportunities and threats of
organisation in business(Siedentop, Fina, and Krehl, 2016).
SWOT analysis
It is that analysis which deals with identification of strengths,weakness, opportunities and
threats of organization which it suffers while doing its business operations, there are various
factors which have there direct impact on these four thinks . Organisation have to clearly
examine this factors while making business plan because they can have there impact on growth
and success of business. The SWOT analysis of MOMA foods is stated below:
Strengths Weakness
 MOMA food is well known for its
innovative products with superior
quality. So it works as strength of
organisation(Suomalainen, and Xu,
2016).
 Company have solid recruitment plan
for hiring new employees in there
organisation which help firm in getting
qualified persons and specialization in
work.
 MOMA foods is dealing in high quality
product which is costly in nature and
have its direct impact on firms profits,
because of high cost firm has facing
low profits.
 MOMA foods have low resources
which act as there weakness because
they act as barrier in firm's growth.
Opportunities Threats
 Company have great opportunities to
have lunch there new products in
existing market this will aid firm in
bringing innovation to market and
attracting customers toward there
 MOMA foods have of uncertain
political conditions of there business
area. This is because Brexit brings an
uncertain business conditions for every
SME of Britain and MOMA food is one
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organisation. of them.
STP approach:. This approach deals in three stages which are segmentation, targeting and
positioning. This models is used by management of MOMA foods to expand its products to
global market and take competitive advantage(Wey, 2015)
Segmentation : Segmentation is the first stage of this framework where firm works in
dividing the market according to there product it helps firm in identifying new customer whom it
what to attract for there benefits . There are four types of segmentation which a firm can use for
dividing and identifying its market where it want to work but MOMA use Psycho graphic
segmentation in which it will target lifestyle of its customer. Company will find that type of
customer which want healthy lifestyle and clear motive for fit life(Whelpton, Campbell, and
Patterson, 2015).
Targeting: Than after identification of market company have to move on second step
which is to target customers of segmented market there is clear need of identifying their
customers and behaviour which will help in deciding marketing strategy. The success of these
strategies is strictly depends upon firms ability to segmentation. MOMA is dealing in innovative
foods where its main target is lifestyle of its customers(Wilson, 2019).
Positioning: This is the last step in this function this is because company have to allocate
its product to target market where it have to lunch its product there is lots of method which firm
can use for positioning its products in target market . Some common methods are using good
advertisement, mouth publicity and increasing brand value of firms product . MOMA foods is
an small-scale company which have impacted resources in so firm has to use its product in
proper market where it can easy position them .
Monitoring & control
It is that function of management which is important for smooth functioning in
organisation. When manger needs to establish control in its organisation they starts working as a
monitor of firm , it includes functions like tracking, reviewing, and regulating the performance of
employees of organisation which is must for success of organisation.
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P5Assessing exit and succession options for small businesses with their advantages &
drawbacks.
Merger and Acquisition: Merger and acquisition is the best way to expand busine3ss of
firm this facilitate firm in getting to global reach and also help firm to getting access to
new ,market by sharing its resources with other firm . It worlds as golden opportunities for
MOMA foods that it can use the resources of other form an get knowledge of new market. There
are various type of merger and acquisition which a firm can use but it depends upon the capacity
and structure of organisation. Merger also facilitate firm various benefits which it can use in
getting access to different market but it have various demerits also . All the benefit and
drawbacks are stated below:
. Benefits of merger and acquisition policy: Following are the benefits of adopting
these strategies:
 Company like MOMA get benefit of merger and acquisition as it will help firm in
gaining advantage of long term benefit in increasing there market capital as well market
share because merger increase financial ability of both the firms in financial market(Wu,
2015).
 Merger and acquisition also facilitate firm in getting competitive advantage of other firms
from which it is going to merge there organisation.
 It helps in creating economic scale as it will increasing the scale of production of
company which will facilitate firm in getting cost reduction techniques and getting
benefit of low cost.
 Acquisition is also benefit in globalisation of firm as it provide opportunities to globalize
firm.
 Merger and acquisition also help firm in getting long term benefits like market analysis
and building brand image(Wynn 2017). .
Drawbacks of merger and acquisition:
 This will facilitate monopoly in market place as company get bigger in its operations
which help it in getting marke6t according to it .
 because of acquisition and merger firm also get disadvantage of losing communication
network and lack of public approach.
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Liquidation: It is that process which take place when company get insolvent and have no
future investment or plan for revival . In this firm have to work to distribution the assets of firm
to claimant of those assets. These are general creditors are share holders of firm which facilitate
firm in getting liquidity within given period of time some tine this is to be done because of
fulfilled of objectives of firm and some tine because of insolvency if firm .
Benefits of choosing liquidation strategy are as follows:
 There is no liability of manger after liquidation of firm as all the creditors of firm are get
there payment and no one is left.
 The most useful benefit of choosing this strategy is that governments legal actions are
closed. There will be no boundation and extra charges pay by company.
 If organisation take lease then their lease period is end and entity is no longer libel to pay
lease amount.
Drawbacks:
 Directors of organisation pays creditors liability from their personal savings.
 Goodwill of the company will get low after this process.
MOMA foods use merger and acquisition policy for the purpose of winding up their
business because the organisation is suffering from financial problem .By adopting this strategy
they can easily cover up of financial problems.
CONCLUSION
From the above study, it has been analysed that effective planning is required in order to
gain success in market and to achieve higher growth opportunities. Development of effective
strategies and plans enables an organisation to build brand image and increase market share of
the company. PESTLE analysis assist an entity to determine the affect of external factors on
performance and productivity of an organisation. Ansoff matrix is adopted by companies in order
to grab growth opportunities. In addition to this, Business plan is developed by company in order
to enhance operations that leads to raise in sales and profitability level of an organisation. There
are various types of matrix which can help firm in getting access to various types of business and
get growth in there perspective. This will also analysed that firm can get what it is needed to
perform by using these strategies.
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