Butter Bar: Business Growth Strategies, Funding, and Exit Planning

This report provides a comprehensive analysis of Butter Bar, a small food business, focusing on its growth strategies and expansion plans. The report begins by examining key considerations for analyzing growth opportunities, including Porter's generic strategies and PESTLE analysis, to assess the external environment and competitive landscape. It then evaluates growth opportunities using Ansoff's growth matrix, considering market penetration, market development, product development, and diversification strategies. The report also assesses potential sources of funding for the business, discussing the benefits and drawbacks of each source. Furthermore, it outlines a business plan for growth, including financial data and strategic goals, and explores exit and succession options for the small business, discussing their advantages and limitations. The report provides a detailed overview of the company's potential for growth, including its challenges and opportunities in the market.

Unit-42

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analysis of key considerations for analysing growth opportunities along with
justification of considerations in company terms...................................................................1
P2 Evaluation of opportunities for applying growth for Ansoff’s growth matrix..............4
M1 Discussion options for growth by implementing range of analytical frameworks for
demonstrating knowledge of competitive benefit in company terms...................................5
TASK 2............................................................................................................................................5
P3 Assessment of potential sources of funding present to businesses along with
discussion benefits as well as every source..............................................................................5
M2 Evaluation potential sources of funding as well as justification for adaption of
proper source of funding for company...................................................................................7
TASK 3............................................................................................................................................7
P4 Developing up a business plan for growth which consists of financial data as well as
strategic goal for carrying up business...................................................................................7
M3 Developing proper business plan for growth as well as preventing investment by
setting out strategic goals for accomplishing aims.................................................................9
TASK 4............................................................................................................................................9
P5 Assessment of exit as well as succession options for small business with explanation of
advantage along with limitations.............................................................................................9
M4 Evaluation of exit or succession options for small business by comparing valid
recommendations....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning is said to be a method that takes a positive impact of individual in order to achieve
their goals in an effective manner. edit basically defines to security of predicting about future
activities by performing a specific business practices as well as different operations with present
scenario. It is said to be ideas in advanced thought of individual that has been improved for
carrying out success with development in future time scale. It also helps in determining as well
as monitoring impacts of different strategies that could be implemented in companies for
achieving success in order to have growth (Difanty and Supriatna, 2021). This report is based on
planning for growth of small all company Butter Bar that provides food varieties along with
butter products to customers in United Kingdom. Added generally carries expansion of market in
different other countries such as Australia. This report includes evaluation of consideration for
analysing growth opportunity, different growth opportunity by carrying out ansoff matrix,
potential resources for carrying out funds with their advantage along with drawbacks, business
plan for having growth through financial data along with strategic goals, magnet as well as
succession option for small business company through their advantage as well as limitation along
with conclusion.
MAIN BODY
TASK 1
P1 Analysis of key considerations for analysing growth opportunities along with
justification of considerations in company terms.
As planning could be termed to be a process of mentioning along with analysing different
changes as per requirement in order to achieve required goals. And it is said to be a method that
is used by starter for having a balance division for gaining out competitive advantage within a
specific time period (ISAKSSON, LÖFSTEN and RANNIKKO, 2021). As Butter Bar is a small
business along with it wants to achieve growth along with development in order to expand their
business practices in various countries such as Australia.
Porter's generic strategy
It is said to be a strategy that could be termed to guidelines along with giving out competitive
advantage for company in order to have competitive market place for profits. As this strategy
basically involve four different strategies that could be implemented by startup in order to
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achieve advantages along with benefits in relation to competitive rivalries. It also helps in
designing out various policies which could be beneficial for start-up in order to expand their
business operations. In relation to Butter Bar porter's generic strategy could be explained as
follows:
 Cost leadership: As it is referred to a strategy that could be used by start-up when they
are offering different product in their offerings with minimum and low-cost which could
provide them contribution in terms of accomplishing market share. As Butter Bar could
implement cost leadership theory in their operations for attracting large number of
customers along with providing their butter products with various services through a
comparatively low cost as per competitors.
 Differentiation: As it defines your strategy which could be implemented by start-up for
representing their creativeness through innovative practices in order to attract more
customers by increasing their number of sales in its market share. As by limiting this
strategy start up could be capable to develop their products in completely newly market.
In relation to Butter Bar this is strategy could be implemented by start-up for
accomplishing their competitive advantage in terms of grabbing out attention of customer
base.
 Differentiation focus: As it is generally defined to a strategy that could be used by start
up in order to provide diversified product to their customers. It is basically deals in
bringing out Company image in mind-sets of customers for having a long-term success in
corporate markets (Kroessler, 2021). In relation to Butter Bar company to implement this
strategy in their offerings of butter related products so that their services could be
provided in business environment in order to gain market share by maximizing their
revenues in sales.
 Cost focus: As it is considered to be a strategy that could be implemented as a change by
starter for covering a niche market in order to provide them with the minimum as well as
lower cost. It is considered to be a strategy which could be launched by startup for having
an understanding of their identification of market for satisfying needs of customers. In
relation to Butter Bar start up could gather large number of customers by providing their
services in low cost.
PESTLE analysis
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It is said to be e an evaluation that determines micro environmental factors that could be able
to affect performance of start up for increasing their competitive advantage along with creates a
barrier in having growth and development in their expansion practices. Factors are as follows:
 Political factors: These factors basically involve intervention which are carried through
government that create the ability for having a large number of opportunity that could be
present in businesses for determining development so that Butter Bar could be able to
take a benefit in terms of performing at their business operations on different countries
and countries such as Australia.
 Economic factors: It generally involves various factors like inflation, deflation along
with different foreign exchange rates of countries. Economic value of United Kingdom is
considered to be more stable as compared to different countries. So it is considered to be
an effective opportunity for Butter Bar to perform their business expansion operations in
different countries like Australia.
 Social factors: As it is basically deals with the factor that could contribute about beliefs,
values as well as living standards of society factor that could create an impact on start-up
(Li and Yang, 2021). as United Kingdom has a large acceptance of food and beverage
sector long with it creates a positive response in terms of performing out business
operations so that it could be helpful for company in order to perform their business
operations.
 Technological factors: As these factors deals in implementing different advancement in
technologies in relation to carrying out business operations with having a focus for
satisfying needs and demands of customers with higher level of technology. It is helpful
for Butter Bar for performing out their business operation so that they could be able to get
a contribution with different technologies for having growth.
 Legal factors: As these factors basically deals in having rules and regulations which
could help in enhancing disputes that are related to diversity and other factors. As United
Kingdom has carrying a large description for following up rules and regulations.
 Environmental factors: As these factors consist of climatic conservation along with
environmental prevention for different countries of United Kingdom along with
Australian market with the strict laws and regulations (Elsenhans, 2021).
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To accomplish growth in business industry it is essential that new innovations are being
conducted as well as wide manners to attract large amount of customer base. On base of this
franchising is an effective option for start-up because through this an effective brand image
would be generated. In terms of Butter Bar also as they desire to expand their business activities
franchising is a good option for business. The business enterprise could accomplish growth as
well as also creates up extra operational potentials. In relation with new products chosen
business is now adding up special product ideas in differentiation through other competitors.
P2 Evaluation of opportunities for applying growth for Ansoff’s growth matrix.
Ansoff matrix is basically used by start-ups in order to develop as well as formulae different
strategies so that their framework could be able to help in analysing their business plan by which
company could be able to accomplish their growth opportunities within a particular time period.
In relation to Butter Bar this model has been explained as follows:
 Market penetration: As this is strategy deals in presenting products which could be sell
out in present market in order to have wide market share. As it basically helps in
providing valuable elements for Butter Bar as they are basically aware about different
advancement in their technology with a wide number of brands which could be able to
benefit them in performing out business operations. The most essential as well as
effective benefit of market penetration is that it majorly focuses on value of cost
reduction. Through this it becomes easier for Butter Bar also to attract large amount of
customers but at same point of time scale company could lose their product quality
because of decrease in their prices that generate an impact on their brand image.
 Market development: This strategy is used when company wants to sell out their
products in new markets for developing different target marketplaces. In relation to
Butter Bar start-up could use promotional operations in order to expand their market in
new segments for delivering their butter products. Through help of market development
company creates an opportunity to design their customer base. Besides it becomes
beneficial for business to attract customers to other geographical area but at same point of
time a risk is also considered as they will implement their products in complete new
marketplace.
 Product development: This strategy good deals in having assistance in introduction for
launching new product in present method that could be developed in relation to
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accomplish competence for customers (Zhang and Peng, 2021). As this method could be
used in business practices of Butter Bar in order to develop their sales.
 Diversification: This strategy deals in in having launch of new innovative product with
creativeness in new markets with having and expansion of their sales revenue. This
strategy could be used in in covering up risk in business operations with having a
resistance that could be able to carry out performance. As Butter Bar could implement
this strategy in their business operation for entering into new markets.
There are different strategies that could be used in ansoff matrix along with Butter Bar
implements diversification along with product enhancement strategies in order to expand their
business practices. As food sector it is said to be very much efficient industry in relation to
attract customers in large amount. It also helps start-up in order to achieve their brand image in
markets.
M1 Discussion options for growth by implementing range of analytical frameworks for
demonstrating knowledge of competitive benefit in company terms.
It has been analysing that there are different strategies that could be carried with various
models for having higher competitive edge (Ptak, 2021). As Butter Bar is basically focusing on
having cost focus strategy along with product development so that their diversification strategies
could be able to achieve their higher productivity in relation to profits for having expansion in
their business practices. Ash by taking with it benefits start-ups in terms of providing out various
strategies in order to minimise their cost by attracting more customers for launching their product
into new markets with a sense of innovativeness.
TASK 2
P3 Assessment of potential sources of funding present to businesses along with discussion
benefits as well as every source.
Different sources of funds help in benefiting company for raising up their capital as well as
helps in making support in order to achieve objectives. In relation to Butter Bar start up requires
approximately $55000 in order to expand their business operations along with they should carry
a security of funds for approximately $20000. Hence start up could carry a limited number of
sources as they require different sources in order to raise their capital along with they are divided
into various sections which are as follows:
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 Internal sources: It basically defines to acquiring of funds which could be increased by
company start up that could be able to prove them self in order to gather them by selling
out their assets along with capital for determining of their earnings that are carried and
performed from markets.
 External sources: As it defines to source of funds that is gathered by company in terms
of different types of funds that could consist of various factors like bank loans, equity
shares, debentures and so on (Rees, Peralta Quispe and Scotter, 2021). There are different
sources that could be implemented by Butter Bar in order to acquire funds that are as
follows:
Crowdfunding:
It is said to be number of amount that is gathered from vast amount of collected customer
along with they are generally carries through digital platforms.
 Advantage: As Butter Bar get the benefit in order to implement this source of finance as
they could implement different online platforms in order to promote their butter products
along with services.
 Disadvantage: As Butter Bar good face limitation of carrying out impact on their low
Company image in relation to corporate markets for sustaining where place.
Bank loans:
It is considered to be number of amount that is borrowed by company from different banks
along with it could be repaid them back with a particular time scale for having a specific amount
of rate of interest. It is said to be most effective type of fund which could be implemented by
companies for availing their funds (Pillay, 2021). As it is available in both short run as well as
long run so that Butter Bar could be able to acquire loan through a specific amount of rate of
interest.
 Advantage: As butter basket carrier advantage from acquiring of loans from different
banks that could be able to acquire them with divide amount of number that are being
paid off in a particular time period through a specific rate.
 Drawback: As Butter Bar could also be able to face a limitation which is carried because
of loan is given in relation to some assets along with bank provides some of securities in
order to give loans along with their being captured when company will not be able to
provide them amount back.
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Overdraft:
As it could be considered to be a fund which is Axis in facilities that are gathered by bank in
order to serve special customers along with this strategy could be used by bank in order to extend
their credit limit by which particular amount of money could be withdrawn.
 Advantage: As this source of funding is more beneficial as well as it carries a flexibility
by which Butter Bar could be able to implement them for having freedom in order to
withdraw a specific number of amount in relation to their balance.
 Drawback: As Butter Bar could carry a limitation as they could have to pay a wide
amount of return in relation to acquiring of overdraft sources.
Angel financing:
As it is said to be a source of funds that is needed by start-up where their sum of investment
it is done by investors in their start up as per their interest along with achieving of sales in order
to make profit for condition of business (Aimilia, 2021).
 Advantage: As Butter Bar could available benefits from Angel financing as they are
capable to connect with their beliefs of investors in order to have knowledge.
 Drawback: As Butter Bar has a limitation in relation to acquiring of Angel financing in
relation to carrying out context of dividing their shares for having serious as well as
profits of business.
M2 Evaluation potential sources of funding as well as justification for adaption of proper
source of funding for company.
It has been analysed that there are different sources of energy that could be acquired by
Butter Bar for having expansion of the business operations in terms of using different sources of
finance such as bank loans along with crowd funding for developing their profits along with
sales revenues with their expanded business operations (Guiot and Allen, 2021). This process
could be efficient as well as effective for position along with acceptability in order to attract
customers for keeping a manager in their business operations of different countries such as
Australia. Implementing different sources of funding it could be advantageous for better bus in
order to avail different funds of money for expanding their business at international level.
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TASK 3
P4 Developing up a business plan for growth which consists of financial data as well as
strategic goal for carrying up business.
As business plan needs a vast knowledge in relation to document which could be able to help
start up for achieving their objectives along with targets with a particular time scale. It is said to
be in written document that could consist of various knowledge that are associated with
requirement of business in order to evaluate their growth opportunities (Nuryawani, 2021). In
relation to Butter Bar start up needs business plan that could be able to benefit them in terms of
assisting for achieving their growth along with high market share in an effective manner. As it
could be generally present requirements of Butter Bar which could be able to carry out various
factors like mission, vision along with objectives with different factors. Business plans benefits
in performing out different functions by which effectiveness could be supported by start-up in
order to have decisions for wellbeing of start-up. It also involves different policies that could be
related with finance along with investment that are developed in order to accomplish their large
number of sales along with profit in order to expand their business operations. As main goal in
order to perform out business plan is to formulate positivism business practices in business
environment so that effective results could be achieved in a specified Time scale. As Butter Bar
could come under food and beverages that could be able to selling out butter product with their
own ingredients. As they gave business practices in order to carry out different direction that are
related to launch with selling out product in butter products in market (Basu and Ferreira, 2021).
There are different strategies that could be followed by start-ups in order to increase their
effectiveness in international markets for having expansion of different countries such as
Australia for attracting customers in a large scale. As this plan could involve different factors
that are as follows:
 Vision: As Butter Bar is carrying a vision of providing quality content food products with
their quality for having different services.
 Mission: As Butter Bar good carrier mission for giving out quality butter product to their
customers in order to raise their level of satisfaction.
 Financial data: As it is related with inflows along with outflows of company which
could be considered to be a main component of company that could benefit in
accomplishing objectives in an effective way. As Butter Bar good implement different
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sources like internal as well as external source of funds in order to accomplish their target
of business in a particular time.
Total forecasted budget
Particular 31/12/18 ($) 31/12/19 ($) 31/12/20 ($)
Using
technology cost
17000 - -
Promotional
event
9000 8000 6000
Advertisement
expenses
6000 4500 5000
Catalogues 2500 4500 4000
Training
expenditure
7000 7800 7000
Total Cost 41500 24800 22000
As by performing out expansion practices of Butter Bar in different countries such as
Australia performs different operations that could be able to perform out budget for carrying out
their financial potential (Bawa and Ismaila, 2021). It also involves different operations like
advertisement, advancement in technologies and so on.
M3 Developing proper business plan for growth as well as preventing investment by setting
out strategic goals for accomplishing aims.
It has been critically evaluated that business plan needs a detailed data as well as
information in relation to cash flows along with other financial data that could be able to
represent various liabilities as well as assets of start-ups. So that Butter Bar could pay different
taxes in various years so that they could be able to have efficiency which could be kept in
markets along with different sources of funding as well as vision for carrying out effectiveness in
their working practices.
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TASK 4
P5 Assessment of exit as well as succession options for small business with explanation of
advantage along with limitations.
It is necessary for company for development in order to design succession along with exit
plan for carrying out business practices in order to have attractive outcomes with creating out
business practices by using impact on performance of company which provide support to
company by carrying out dealing with various uncertainty situation that could develop in market
on constant basis (Gerhold and Joseph, 2021). There is different session plan along with the exit
plan which could be used by Butter Bar that are as follows:
Succession plan
It generally involves different opportunities that are collected as well as generated by
companies in order to develop their sales along with building profit level. As in leadership it
could be carried out with the transferred to various individuals. Station tu Butter Bar company
could use this plan in order to make business practices effective along with dealing with
challenges that are present in corporate markets which could be implemented by carrying out
merger and acquisition.
Merger and acquisition:
It is said to be a method by that two or more than two businesses could come together in
order to develop their sales revenue along with building their business operations in order to
have growth opportunities in corporate markets (Rauscher, 2021). Whereas acquisition is said to
be method that could be implemented by company in order to have other for enhancing their
profitability level.
 Advantage: As it helps in developing different skills along with helps in connecting
effective knowledgeable individuals in order to have competition in markets.
 Drawback: As there are different limitations for carrying out complexities along with
crucial practices that are created in marketplace that could affect customers in terms of
having different and others mind-set for buying their butter products.
Exit plan
It generally refers to an inclusive evaluation specific factors that could affect company’s
performance (Wnęk, Kudas and Stych, 2021). As Butter Bar common software business could be
affected by is marketing issues along with that it could help in determining different issues along
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