Business Growth Opportunities for Smoke and Salt Restaurant

This report focuses on growth planning for Smoke and Salt restaurant, exploring various strategies and models to enhance market share and revenue. It begins with an analysis of key considerations for evaluating growth opportunities using Porter's Generic Strategies, SWOT, and PESTLE analysis. The report then evaluates growth opportunities through Ansoff's growth vector matrix, outlining strategies like market penetration, market development, product development, and diversification. It further examines potential funding sources for the restaurant, including personal investment, venture capital, business incubators, and government grants. A detailed business plan for growth is developed, followed by a discussion of exit and succession options, evaluating and comparing the best options for the small business. The report provides a comprehensive overview of strategic planning, financial considerations, and operational aspects essential for the sustainable growth of the restaurant.

Planning for growth

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
P1/ M1 Analyzing key considerations for evaluating growth opportunities (640)......................4
P2/ D1 Evaluating opportunities for growth through Ansoff’s growth vector matrix................6
P3 Sources of funding for Smoke and Salt:.................................................................................7
P4 Business plan for small business............................................................................................9
M3 Developing the detailed business plan for growth and investment.....................................12
D3 presenting in-depth business plan........................................................................................12
P5 exit and succession options for small business.....................................................................12
M4 Evaluating, comparing and recommending best option......................................................13
D4 Critically evaluating exit and succession options................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Planning for the growth refers to the business activities where the organization is concern
over increasing the market share and revenues in systematic manner over the years. Also, the
present report is based on smoke and salt restaurant in UK that is very well-known for its
services to large number of customers. Moreover, the report will analyse the growth
opportunities through applying various models so that best platform might be chosen for the
future. Furthermore, the study will apply Ansoff’s growth vector matrix so that best strategies
might be selected that would help the business to grow systemically over various targeted
regions . Also, various potential sources of funding available to the firm will also be analyzed in
detail that will help the firm to carry out various business operations. Moreover, the best
business plan would also be designed that will help the firm to cover the large market areas in
well-defined manner. Lastly, the exit or succession options will be identified through analyzing
each benefit or drawback in detail under this report.
MAIN BODY
P1/ M1 Analyzing key considerations for evaluating growth opportunities (640)
For firm like salt and smoke that is specialized in selling variety of food dishes it is
required that proper growth opportunities are evaluated so that it is able to expand its business in
various new regions (Njiri and et.al., 2021). Moreover, one of the best ways is through applying
the porter generic strategies that consist of the following elements:
Cost Leadership Strategy: This is strategy that is adopted by the firm when it wants to
become the cost leader in various markets. Furthermore, this could be done through increasing
the profits from the products from keeping the lowest prices as possible. Also, t through lower
prices it would be able to increase the overall market share that is good for the running of the
business for prolonged period. Furthermore, the cost strategy could be successfully adopted only
when the company is having large number of resources and have well-established brand image in
the market.
Differentiation Strategy: it is type of strategy where the firm is focused on selling the
products in various markets through making it unique and different from other competitors
products and services that are available in the market. Also, all the products have some special
attribute in them that is not already existing in the available products. Thus, more people would
be influenced to buy such kind of products and increase the sales of the business.

Focus Strategy: This strategy is only concentrated in targeting to particular niche
segment where the products are soled either on the basis of the focusing on the cost or making it
different from others in particular target market. Furthermore, such adding of something extra
always helps the business to reach to greater height of success and also it is required that proper
research is conducted before selling the required goods in the various regions.
Another best strategy that might be applied by the business to identify the best growth
formula is SWOT analysis that would help the firm in identifying the strengths and weakness so
that systematic measures than might be taken for the future growth of the business in various
regions.
Pestle analysis
This is analysis that is mainly done by the business to identify all the external factors that
affects the working of the business in long run. Furthermore, through complete analysis of such
factors the firm would be able to devise the best strategies for the future working of the business.
Political
It is required that political stability is known
for target market so that brand loyalty of firm
is maintained and business is able to earn
revenues (Kim and Newman, 2020).
Social factors
Existing competitors in the market are also
specialized in providing services and hence
factors like change in values, customs and
beliefs among the customers had to be known
in true sense and it might need more expert
marketing team to conduct various activities of
the business so that there is no negative impact
in the future.
Technological
Use of the upgraded technology requires
proper training of staff so that they are able to
build greater competencies and skills to bring
continuous innovation at the workplace.
Economical
Revenues of business is ensured when there is
no import export restrictions in various regions
otherwise it would negatively impact the
image of the firm and would cause serious
threat for future running of business. Also,
high inflation rate would create lack of
differentiation that would impact the business

from growing successfully in other regions.
Thus, from the above two analysis salt and smoke restaurants would able to get the idea
to adopt the best growth strategy so that there is no wastage of organization resources and
capabilities that is necessary for achieving certain goals of the business. Furthermore, these
growth considerations have to be taken so that the firm is able to plan better activities and
identify various growth opportunities in the best manner (Brunetta and Caldarice, 2020). Also,
firm had to ensure that international markets are regularly checked and also proper market
research is conducted on timely basis so that maximum revenues are derived in end. Moreover,
the social media is also best tools that might be used by the firm to expand the business into
various new regions.
P2/ D1 Evaluating opportunities for growth through Ansoff’s growth vector matrix.
Ansoff’s growth vector matrix is one that helps the business to grow in various region
through developing plans and taking initiatives to evaluate the growth initiatives that are
currently available. Furthermore, major benefit of using the Ansoff matrix is that it helps in
marketers to move in right direction and provide possible strategies for growth in the future.
Also, this matrix helps in providing all the possible alternatives and opportunity cost. Moreover,
this analyzes is easy to conduct and construct as all the alternatives specified have the own merits
and demerits (Dodds, Dimanche and Sadowski, 2018). However, this matrix is not good for
reason that it fails to give the accurate predictions and thus marketers might find difficulties in
conducting the business operations. Furthermore, it consists of different elements that might be
used by cited firm based on products and services it offers. Some of them are described as
follows:
Market Penetration: It is technique where the firm aims in increasing the sales of the
existing product in the existing market. Also, here this technique is done either through
decreasing the prices of the goods or through increasing the current marketing efforts so that
more people are able to have knowledge about the existence of brand and its services.
Furthermore, this technique is good if firm has more funds and resources and decreasing the
prices might increase the overall operations cost over the period
Market Development: It is method where company existing products are sold into
completely new markets. Also, such technique are used when the new customer segments is

identified or targeted by the firm to increase the revenues. Moreover, another way is through
entering into the domestic market through identification of the new business regions so that more
revenues might be earned in systematic manner.
Product Development: It is technique where new products are introduced into existing
market. Moreover, it is very essential because it helps in maintaining the competitive advantage
and ensures long term survival of firm in market (Harrison, 2021). Furthermore, this option
could be opted by firm when extensive market research is conduced to introduce new product
with unique features. Also, acquiring the right of another firm is also way where additional
services might be provided by salt and smoke to its targeted customers in most effective way.
Diversification: It is technique where company enters a new market with altogether new
products. Also, this would be most the riskiest strategy to firm as it would require lot of the
information and data for entering into newer segments. Furthermore, the firm could go either for
related or unrelated diversification depending upon the goal it wishes to achieve. Moreover,
such type of diversification strategy would only help the firm in planning for future risk and
avoiding challenges so that best approach could be chosen for the future operations of the
business.
Thus, it can be said to gain competitive advantage and to successfully move into newer
regions the smoke and salt could opt for diversification strategy so that it is able to reach to
newer market segments and also able to provide efficient business services to large number of
people (Sørensen, 2018). Furthermore, through opting this strategy the cited firm would be able
to align its current growth opportunity and assure that there is proper risk management. Also, it
would assure the highest revenues for cited firm in short span of time. However, this strategy
could be not been successful when the firm is providing low quality services that are not able to
stand with other competitors that are operating in different markets.
P3 Sources of funding for Smoke and Salt:
Planning for growth is a term implying any business strategy that can be adopted for the
preparation and tracking of growth structures for the purpose of goal achievement for an
organization and estimates how to reach out to the factors and elements that can help in
determining growth performance (Bukvić, Šain, and Maršić, 2018).
1. Personal investing:

In this funding, the investor of the business brings in his own money or the owned assets.
It is advised to go through this type because it has fewer risks of investment since the owner is
liable to pay for his own capital.
The benefit Smoke & Salt will acquire is that it can get recognition from banks and other
financial institutions at the time of crisis and urgency (SOURCES OF FUNDING 2018).
ADVANTAGES DISADVANTAGES
1. The biggest advantage is to gain
identification of the business's existence
1. There are no bases for proper advice from
any financial institution.
2. The ups and downs of the economy do not
affect the firm's operations.
2. There is no access to the latest trends and
tactics of investment.
2. Venture capital:
Venture capital method should be adopted by those who are more focused towards the
tech world and are looking for opportunities of growth potential in the innovation industry. The
firms should be ready for returns on investment, whether healthy or not.
ADVANTAGES DISADVANTAGES
1. The money or the assets are always in the
possession of the firm's hand.
1. The more investors, more will be the risk of
stake in the company.
2. Opportunities for growth potential. 2. In case the company grows less, the
opportunities might delay.
3. Business Incubators:
This source gives an opportunity to the firm to invite more investors and businesses to
connect with them by sharing one roof and other valuable resources. It is a system where the
relation ends with the end of the deal.
ADVANTAGES DISADVANTAGES
1. The ongoing deal can benefit the firm in an
advisory manner.
1. It is a non flexible method.

2. The development and training programmes
also take place for business grooming.
2. It does not allow any personal space.
4. Government Grants:
The basic type is the financial help from the legal bodies. There is a strong competition in
the industry and funds provided to the firm should match with the grants given by the
government.
1. Money is granted from a reliable source. 1. The step by step process is time consuming
in the granting terms.
2. Every information of the process is provided
from the starting to the end point.
2. The exact amount is difficult to receive as
there is a tough competition.
The various sources of funding are both advantageous and disadvantageous for the small
scale enterprises. Therefore, it is necessary for them to choose on reliable method in order to gain
financial gain from the sources which can be beneficial for the overall organizational
opportunities.
It is often advisable and recommended that the small business operators should always
adopt own capital savings and capital requirements, since it is the easiest way to seize the
opportunity for financial gain and raise money for achieving overall business organizational
objectives.
P4 Business plan for small business
Overview of the business: The small business of UK is Salt and smoke that used to give
different types of food items to the customers. This small business has to scale up its business by
innovating something new in the firm. As it is very important for the company to have scale up
of the business to have better profits in the market. The company is bringing chocolate
sandwiches in their menu that helps them to have more customers in the market.
1. Vision: This is considered as the long-term goal of the company which must be
achieved by them. The vision of the cited company is to have better goodwill by serving best to
the customers.

Mission: This is short term goal and the mission of the company is provide best and
quality of service and food items in the UK market. This makes the company to have better
presence in the market by serving on continuous basis.
Objectives: The objectives of the company is as described below:
a. The company has to increase its profits by 20% in 2023.
b. It has to increase its market share by 18% in 2022.
Goal: The goal of the company is to have goodwill in the market that makes them to
have target customers in the market.
2. Stakeholders: The stakeholders of the small business in the UK market is suppliers,
owners, creditors, investors and employees. This helps the cited company to have better
flow of the work by having the proper management. By doing this it ensures that the
company must operate in profits in the competitive market.
3. Capital funding: the sources of capital funding is as described below:
a. Retained earnings: This is basically the undistributed profits of the company that helps
to not to take fund from outside (Islam, Fremeth and Marcus, 2018.). The company sued to earn
profits but all profits are not distributed among the shareholders and members. Salt and Smoke
can use this capital in order to raise the capital in order to have proper management of the work.
b. Loans: This is another best source of capital funding, as in this the company used to
take from the banks (Haralayya, 2021). By taking loans from the bank helps the company to have
better expansion and development in the existing market.
4. Operational plans: The operational plans of the company is to have the better
production of the food items which attracts the customers in the market. The cited
company must have the plan in order to cut the cost of production in the next year.
5. Resources plan: The resources required to the company is physical resources that helps
them to have better development in the market. In order to launch the new product,
company is required to have large amount of chocolates and good quality of breads.
6. Technology plans: As the company is launching the new product the company is
required to have the good machines in order to make the sandwiches. If there are large
customers at the same time so, the company must buy the big machine in order to make
the chocolate sandwich for all the customers at the same time.

7. Risk factor: The company has the high risk as it is adding the new product in the
existing menu card. This will somehow affect the profitability of the company while
having development in the same market.
8. Time frame:
Activities Weeks
Generation of new idea 2 weeks
Collecting of resources 2.5 weeks
Producing the goods (Breads) 2 weeks
Supplying of the products Depends on daily basis
9. Marketing plans: The marketing plans of the company is that they will do
advertisements of the new product through social media. As social media is one of the
most convenient source in order to have marketing of the product and services rendered
by small cited business. The company can also have the online selling of the food items
that helps them to have better profits in the market.
SWOT analysis:
Strengths
The company has good location in UK market.
The products innovated by company is
profitable (How to Perform a SWOT Analysis
for Your Small Business, 2022).
The marketing technique is good of the
company.
Weaknesses
there is an unpredictable flow of the customers
in market.
The online delivery has not started by
company.
Opportunities
The big opportunity the company has that it
can start taking online orders. This makes them
to have better profits in the market.
Threats
There will be increase in the cost of production
material.
It has high competition in the market.
Recommendations:

a. It is recommended to the company that they must adopt the new and innovative
machines that helps them to have better production. This helps them to lower down the cost of
production per unit.
b. Further it is suggested to the company that they must do something new on the
continuous basis that helps them to compete in the market. This reduces the threat of the
company in order to have better work in the market.
c. It is also recommended to the company that they must start online delivery of the food
items. This makes the company to have better growth in the market and have more selling of the
products. As online services are most taken by the customers in the recent time after the
happening of pandemic.
M3 Developing the detailed business plan for growth and investment
The business plan of the small business helps the company to know about the different
aspects that helps them to have better profits. There are different investment option available to
the company but the company has opted for retained earnings as it is good for the small coffee
shop in UK (Mohamed, Rye and Fonzone, 2019). This helps the company to do launch and bring
the new product in the market and have better competition with competitors.
D3 presenting in-depth business plan
Salt and smoke must follow the business plan that helps them to have better launch of the
products in the market. By having good mission, vision and objectives makes them to have full
focus on the working. Getting the investment and funding from the market supports the small
business to grow in the competitive market.
P5 exit and succession options for small business
There are different exit and succession options available for the company and it is
described as below:
1. Merger and acquisition: This is one of the best and easy option that is available to the
company in order to grow in the market. In this the company used to merge or acquire with the
other company (Brada and Iwasaki, 2022). The benefits and drawbacks is below:
Benefits Drawbacks
No wind up of the business
Increases the market share.
Time consuming and expensive option.

2. Liquidate the business: In this exit strategy that company used to wind up their
business. This basically done when it has less profit in the market. In order to liquidate the
business the company has to pay the debts and take the amount from the creditors.
Benefits Drawbacks
Best and easy way to take exit from the
market.
This makes the organization to out from the
market and have no growth.
3. Sell to partner: If the company is not sole proprietor and working with the partners, so
they can sell their business to the existing partners. This helps the company to have continuous
flow of work in the market.
Benefits Drawbacks
Business will remain in continuation in the
market and earn the profits.
Lots of disputes and confusion by selling
business to the partners.
From the above options, Salt and Smoke can opt for Merger and acquisition as this helps
the company to have the continuation of the business. This also increases the market share and
profitability by merging with the another firm (Haji Zeynolabedini, Rahmani and Ansari, 2018.).
By this it will broaden the selling of products and services and reduces the risk of company in
order to work alone in the market.
M4 Evaluating, comparing and recommending best option
The company has opted for the Merger and acquisition as it helps them to have good
market share. This makes them to have more capital by merging or acquiring with the another
business in the market.
D4 Critically evaluating exit and succession options
As there are many options that the company have but the company has chosen the merger
and acquisition option that helps them to have better profits in the market. This option supports
the company and increases the market share as well.
CONCLUSION
From the above report it is concluded about the planning that helps the company to grow
in the competitive market. The report has evaluated about the different growth opportunities and
its justification that helps the company to grow. Further the report has evaluated about the
opportunities by describing the Ansoff Growth Matrix. The report further has indicated on the