Byford Hotel: Strategies for Growth and Funding Options

This report offers a strategic analysis of growth opportunities for Byford Hotel, a small industry located in Holt. It begins with an introduction to growth planning and its importance in dealing with internal and external market factors. The main body covers key considerations for SMEs, including Porter's Generic Strategies, and utilizes the Ansoff Matrix to explore market penetration, market development, product development, and diversification strategies. A SWOT analysis is used to evaluate growth options, with product development, specifically the introduction of an organic menu, identified as the most promising path. The report also details various funding methods available, such as bank loans, crowdfunding, peer-to-peer lending, angel finance, and venture finance. Finally, it emphasizes the importance of a business plan and assesses succession and exit options. The report provides actionable insights into business growth and financial planning, making it a valuable resource for students and professionals alike.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key considerations SME's should consider when evaluating growth opportunities.......................3
Ansoff Vector matrix ..................................................................................................................4
Options for growth with the help of analytical framework..........................................................5
Specific option and pathways for growth....................................................................................6
Various funding methods available for the organization.................................................................6
Business plan for growth.................................................................................................................8
Assessing the succession and exit options for the business and explaining its benefits and
drawbacks of each option ..............................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth is one of the most essential part of marketing strategy and it helps the
company in dealing with external and internal factors present in the market area. This stage is
also very important part beacuse it helps in increasing the growth and overall performance of
the company. The present report is based on Byford which is a small industry and loacted at
small town of Holt. This hotel have historic building and architecular features such as walll of
stone and large beams that helps in attratcing customer. Furthermore, the stud will discuss
about growth opportunity which helps business in improving their productivity.
MAIN BODY
Key considerations SME's should consider when evaluating growth
opportunities
Planning for development is very necessary part for growth and enlargement of
businesses. It helps manage to reach at high position in market and increase its gross revenue and
profit margin. It is very primary for managers of Bayford to analyse all possibility available in
market and utilize the opportunities to achieve competitor advantages which will assist to beat its
competitors (Verbeke and Ciravegna, 2018). Bayford is looking forwards to having the best
business process in the organization which can be built on the opportunities available in the
market. As they are expecting, the profit maximization. The competitive advantages can be got
by implementing Porter's Generic strategies. This tool change organization to evaluate
competitive behaviour that helps entity to become successful in competitive market. There are
four strategies that can be enforced by organization to amend its business performance and to
stay competitive in market.
Cost leadership
Under cost leadership business undertakes various cost-cutting measures which makes the cost of
final product very low. It gives an edge in the market in the cost segment as business will be
offering the services at the lowest possible prices in the market. Goods are sold in high volumes
to maximize profitability.
Differentiation

Under this innovative and unique product and services are offered by the business which remains
the selling point in the business. Business achieves competitive edge in the market as they are
selling unique products on the market (Saeed and Ziaulhaq, 2019).
Cost focus
Here customers in the niche market are offered the goods and services at the lowest possible
prices. Specific group of customers are targetted which are served which the lowest prices.
Business gains competitive advantage in offering products to niche market.
Differentiation focus
Here unique products and services are offered to the niche market or specific group of customers.
Customers under the niche market are willing to pay good prices for the unique or customized
products and services.
Here Bayford is choosing to enhance the business on the grounds of choosing
differentiation they are developing the organic menu in the restaurant which will attract the
customers to the hotel and this will gives a competitive edge on the market.
Ansoff Vector matrix
This is known as strategic tool which help the business in attempting to grow in new
market area or developing innovtaive services and products. Basically this tool helps in
developing business strtagey that help organization growing their overall performance in better
ways.
Market penetration: It is one of the growth strategy in which company aims at selling the
existing products into same markets. It obejctive is to achieve four key points:
Maintaining or increasing the market share of existing products and it can be achieved by
Byfords through developing competitve pricing strategie, sales promotion and advertising. Also
company can do personal selling in order to attract customer in effective manner (Zanjani and
et.al., 2020). Another aim is to secure domainac in the market area by keeping the consumer
satisfied. In order to restructure the market Byfords has to conduct promotional campaign to
make the competitor look more unattractive.
Market development:
In this tactic buiness need to sell its existing products in new markets and there are various
strategy used by company.Firstly there is need to select new geogrpahical market like exporting
the products into new country or opening branch of business in that market (Clarissia, 2019).

Also distribution channels need to be selecte like moving from selling through e- commerce or
new retail. This strategy helps the company in improving their performance and productivity in
better ways. Making use of different pricing policies to attratc different customer will also help
in creating new market segments.
Product development:
Product development strategy helps in introducing new products into existing markets and it
require introducing new product into existing markets. Along with this, this strategy helps in
developing new strategy and it requires the business to develop modified products in existing
markte. This strategy can be successful when emphasis need to be given on reserach and
development so that taste and peferences of customer can be met appropriatley. In addition to
this, detailed insight of customer is also required so that there needs can be met and their loyalty
can be increased.
Diversification:
Diverisification where buisness is etsablish in new market and new product in order to increase
the growth of the company. Along with this, it is one of the most risky strategy as business is
moving into new market in which it has less or no experience (Kurniawan, Iswahyudin and
Suciati, 2020). For the business which adopt this strategy need to have clear idea about the
strategues and have to done risk analysis befor entering into new market. However, right
balance between risk and reward will make the marketing strategy more rewarding.
From the above analysis it can be concluded that Byford should make of market development in
which it can make use of existing products in the new market area so to increase their growth
rate. It can target other regionalarea of UK ot collaborate with big hotel so that it can cover
large area of international and local market. In addition to this, market development strategy will
be benficial as it will help in enhancing the profitablity and overall growth.
Options for growth with the help of analytical framework
The analytical framework which is used to assess growth option of Bayford is SWOT
analysis. This tool helps company to value strength, weakness, opportunities and threats of
business which may affect its expansion, growth (Yu and Moskal, 2019).
Strengths
 High quality customer services.
 Efficient and Effective staff
Weaknesses
 Cost disadvantage in terms of low
profit margin

 Positive attitude of the business  Low entry barriers
Opportunities
 Building great customer relationships.
 Maximizing the profitability by
increasing customer base.
Threats
 High competition in the market
 Price sensitive customers.
Specific option and pathways for growth
There are various options which are available for the business to look forward to its growth
option yet product development remains the best option for the business. As under product
development bay ford can introduce organic menu under its restaurant which will remain a
selling point for the business. Developing products and unveiling it into the market at right time,
right place and to right customers will alter business to mitigate risks concerned in these
strategies. Other options will lack the potential that this option has as organic menu will be a
lucrative point of sales for the menu.
Various funding methods available for the organization
It is important for a business to have various funding options ready which can be utilized
in case of need. Any expansion plan needs support of funding sources which can financial back
the expansion project. As monetary resources are very important for the business to exercise its
expansion options. Let's discuss various options which are available for the Byfords hotel.
BANK LOANS: under this method business takes money from the bank which is called a loan
and in return business pays interest on the loan taken which needs to be paid on prefixed
intervals. It is also called a traditional method of funding the business. It is considered very safe.
Benefits: it is a safe mode of taking money. Banks does not have control over the business
activities. Banks do not interfere with the business operations. Also, business gets various tax
benefits and subsidies for the loans (Allwood, 2021).
Drawbacks: high rates of interest which needs to paid is a drawback. Another such shortcoming
of this method is long and complex paper work which is needed. Also, it adds up in the liability
of the business.
CROWDFUNDING: it is a method which where money is collected from numerous people in
some random amounts for an underlying purpose and cause which is supported by those people.

In the recent times this method has got very much popularity due to its success and factors of non
liability.
Benefits: it does not create any liability for the business is the biggest benefit. Further, funding
via this method gives a sense of validation for the business from the people. There is no
repayment or interest payment needed.
Drawbacks: the biggest drawback of this method is that there can be false flag of validation and
it creates an indirect pressure on the business to be successful. It incurs cost to create the
awareness about the cause and event of raising money.
PEER TO PEER LENDING: it is a type of novel funding via debt financing. Here an online
platform avails a connection between the investors and business in need for money. This act as a
mediator between the two which gives funds to the business. Trustworthy SME's gets funds
through this (Wang, Upadhyay and Kumar, 2022).
Benefits: an effective platform which provides access to the investors and business. Fast mode to
generate the funds. Gets support of intelligent people in business. Multiple investors can be on
boarded for the funds.
Drawbacks: here investors ask for high rates of interest which is liability for the business. Also,
investors tend to have control over the business activity which leads to interference in the
business.
ANGEL FINANCE: it is a group of investors which are called angle as they invest in projects
and business which According to them has the potential to generate the profits in the future. This
method of financing requires a strong business plan which seems lucrative to the investors for on
boarding them for the investments.
Benefits: there is interest obligation which needs to repaid in intervals. It enables guidance of
intelligent people which can act as supporters.
Drawbacks: there is high control and interference in the business which sometimes deviates from
the goals. It creates along term liability on the business to access such funding. Also, strong
business plan is required.
VENTURE FINANCE: investors in this type if funding method are called venture capitalist,
these are the investors who fuel business by providing funds in its initial years to kick start the
business. They share part in profits of the business which means they are part of the equity of the

business. Hence, it is considered to be a method which dilutes the equity of the business
(Ferreira, Teixeira and Rammal, eds., 2021).
Benefits: strong support and guidance from the investors which constantly works to make the
business, more profitable. No interest obligation is created.
Drawbacks: high control is a negative factors. Investors take a part of the equity which makes
them part of the ownership. It creates an indirect long term, liability for the business. Overall this
method can bring funds from trust worthy people but equity is compromised.
For Bayford raising funds is very crucial as they are devising a plan for the expansion of
the business. Among the various available options for the funding, angel finance seems to be the
most suitable one for bay fords as they have already a very lucrative business plan which will be
able to attract the investors. Further they will be getting the guidance and support from the
intellectual people who can contribute towards the success of the business. Bayford is ion its
growing years and looking for the expansion options hence angel finance will be the best suitable
option for it.
Business plan for growth
Overview
Byfords hotel is UK hotel which is located in small town of Holt providing various
products and services. The historic building and interior designs makes it an attractive hotel for
customers along with this its location near beach. The restaurant of this organization is also very
good which serves healthy and good quality food and beverages. Company is planning to expand
its business by introducing new organic division in restaurant which includes organic food and
beverages.
Purpose
The changing lifestyle of people who are moving towards healthy life and preferring
organic food and beverages has motivated Byfords to launch organic division within restaurant
(Ferreras-Garcia, Hernández-Lara and Serradell-López, 2019). This will attract health conscious
customers and ensure increase in customer base and market share. Nowadays people prefer more
ready-made food which has given growth opportunity to hotel for earning higher revenue and
profit.
Vision

The vision of hotel is to provide excellent staying and eating experience to its customers
and by providing clean, hygiene and luxuries rooms and services and serving healthy, hygienic
and good quality food and beverages. Company is also engaged in providing greater good for
employees and environment.
Mission
The mission statement of company is to maintain higher level of customer satisfaction
and being first choice for customers in hospitality industry.
Objective
Objectives of Byfords hotel are:
 To ensure compliance of core values
 To improve and maintain higher quality of products and services
 To increase profit by 10% in next two years
 To increase market share by 2% in upcoming two years
Stakeholders
Byfords hotel is a small hotel which is located in small town and is engaged in providing
hospitality services to its customers (Xu, 2020). Therefore, the stakeholders of the company
includes owners, employees, investors, government, customers and suppliers. For ensuring
success company is required to develop and maintain a strong and long term relationship with its
stakeholders.
Capital funding
Byfords hotel is planning to expand its business to gain long term success by introducing
new organic section in menu of restaurant. For implementing growth plan it is essential for
company to have funds for mitigating expenses related to expansion. The budget for the
expansion of new product line has been estimated and company requires raising funds
accordingly (Capital funding, 2022). There are different sources of funds and the selection of
potential source depends on the requirement of company and the project it is planning to launch.
Hotel is planning to raise funds through venture capital as it will give advantage of assistant from
experts which will help in success of business plan. This source of funding will also help in
promoting business and product line.
Operational plan

The operational plan of company will enable it to evaluate different activities that are to
be conducted for achieving success. This will help company in developing strategies according
to goals and objectives and identify risk in relation to new business plan. The effective strategies
will ensure smooth and effective functioning and success.
Technology plan
For developing, implementing and executive business plan it is essential to identify
technologies that are required. Company is required to build technology plan for reducing cost of
production. The installation of different machines can reduce need of human resource and it will
also save time which is required for preparation of food and beverage. The software for receiving
online orders can ensure higher sales and company will also be able to provide online food
delivery services.
Risk factor
Production of organic food and beverages are new for company as it has never dealt in
this product line (Oehmen and et.al., 2020). Therefore, this development plan involves huge risk
such as operational risk, technology risk, financial risk, market risk, competitor risk, etc. For
mitigating losses related to risk, Byfords is required to have close analyse of such risks.
Marketing plan
The marketing plan is developed to make strategies for development of products,
selection of appropriate delivery channel and for choosing appropriate promotion method.
Marketing mix is a tool that is used for developing marketing plan.
Product: The product in which hotel is planning to deal in is organic food and beverages for
health conscious customers. The ingredients that will be used for preparation of these organic
food and beverages will be cultivated in organic farms which are rich in nutrients.
Price: The organic ingredients are supplied at higher price in comparison to other ingredients.
Therefore, the price will be set according to the price prevailing in market i.e. competitive
pricing strategy will be used.
Place: Currently company is providing dine-in and home delivery services to its customers. The
same will be used for organic food and beverages (Yaneva, 2020). This will enable customers
with options of eat at restaurant, taking food home or can be able to place order online.

Promotion: There are different ways for promoting business and products. Company is using
both traditional i.e. through newspapers, pamphlets, holdings, etc. The another way is through
social media and online method.
Time frame
Activities Week
1 2 3 4 5 6 7 8 9 10
Market research
Development of vision &
mission statement
Setting of goals and
objectives
Identifying stakeholder
Preparation of budget and
evaluating appropriate
source of funding
Preparation of operational
plan
Developing technology
plan
Analysing the risk
involved
Preparation of marketing
plan
Budget
Particulars Amount (in £)
Market research expense 650

Operating cost 2150
Administration expense 300
Wages/ salary 2000
Sales and marketing expenses 1500
Miscellaneous expenses 600
Total 7200
Recommendation
Byfords is required to set food items that are preferred by people of UK as well as tourist.
This can be ensured by good research of current market trends and customers' preferences and
tastes. Company is required to take effective feedback from its customers to know the areas
where there is need for improvement. All this will help in identifying risk and to mitigate impact
of risk on revenue and market share of company. The customers must be made aware of new
product line through effective promotion and advertisements. At the initial period hotel must
serve organic food products to its regular customers at free of cost to have idea of customers'
taste and preferences.
Assessing the succession and exit options for the business and explaining its
benefits and drawbacks of each option
Planning for succession and the exit mainly helps in defining about the executing and
adopting the most suitable way. With adopting the different ways for attaining success with
merging, or taking over by the business. There are different ways of exit and succession options
being available with the business which are as follows:
Passing succession
Passing succession in the business mainly aims in defining, passing the business to other family
member when the owner dies (Tichaawa and Kimbu, 2019). This strategy mainly helps in
attaining profits in the company and results in expanding the business in the dynamic market.
Benefits: It helps in protecting the business from the dynamic environment. also results in
reducing the expenses with securing the business by passing to the other owner.