Don't Look Further Catering Services: Growth, Funding, and Strategy

This report provides a comprehensive analysis of growth strategies and funding options for 'Don't Look Further Catering Services'. It begins by examining key considerations for analyzing growth opportunities using models like Porter's Five Forces and BCG matrix, followed by an analysis of market growth options using the Ansoff matrix. The report then explores potential funding sources, including internal and external options such as retained earnings, crowdfunding, and bank loans, along with their respective advantages and disadvantages. A detailed business plan is presented, encompassing strategic objectives and financial information. The report concludes with a discussion of exit or succession options for small businesses, outlining their pros and cons. The report provides a detailed framework for business planning, market analysis, and financial strategy within the catering industry.

42 – Planning For Growth
1

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 key considerations for analysing growth opportunities.........................................................3
P2 Analysis the growth opportunities.........................................................................................4
LO 2.................................................................................................................................................5
P3 Potential sources of funding available and examine advantage or disadvantage ..................5
LO 3.................................................................................................................................................6
P4 Business plan that includes strategic objectives and Financial information........................6
LO 4...............................................................................................................................................10
P5 For a small business exit or succession options describing its advantageous and
disadvantage...............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
2

INTRODUCTION
Growth is also considered as essential for any entity in order to survive within highly
competitive business It leads to optimal utilization, effective allocation of resources that leads to
enhance within sales revenue and profitability margin (Wynn, 2017). Present Report focuses on
Don’t Look Further Catering Services where it focuses on key considerations for analysing
growth opportunities, Analysis the growth opportunities, Potential sources of funding available and
examine advantage or disadvantage, Business plan that includes strategic objectives and Financial
information. Also, it will be explained about small business exit or succession options with its
advantageous and disadvantage.
LO 1
P1 key considerations for analysing growth opportunities
There is need for business to analyse growth opportunities. So, it can be done with help of
model that is as follows :
Porter five force
Bargaining power of buyers- the power of buyer is high as customer base is low. It is because
there are many customers to whom lunch meals will be provided. So, they will be having option
to switch from one firm to another.
Bargaining power of suppliers- Within the lunch meal offering there are many suppliers are
with whom Don’t Look Further Catering Services can collaborate. Thus, they can easily switch
from one supplier to another. So, power of supplier is high in this.
Competitive rivalry- The competitive rivalries is low as there are no companies which have
adopted idea of providing lunch meals by collaborating with suppliers. Hence, competition level
is low.
Threat of substitute products- The threat of substitute is low because there are no such
substitute available for lunch time meals.
Threats of new entrants- It is high as many other catering companies can also enter in this
market with same concept of providing lunch time meals with suppliers.
BCG matrix- this is a model by which long term strategic planning is done. Hence, Don’t Look
Further Catering Services can review its growth opportunities by which they can launch lunch
3

meals. This will give insight that what type of market they can enter. For example- cows, dogs,
stars or question mark
Product life cycle- It refers to length until which product is introduced in market and removed.
So, here, Don’t Look Further Catering Services can analyze launch of lunch deal PLC and then
collaborate with suppliers. This will enable in evaluating growth of this venture.
There are several key considerations for analysis the growth of opportunity such as Pestle
analysis
Political- It focuses on the factors that are political within nature as it focuses on political
regulation, rules, laws that are predominant within several regions of business operations (Freire
Trigo, 2020). If there is change in political factors, then in UK new laws will be formed
regarding offering of lunch meals to people and doing business.
Economical- in this there are those factors that is related to GDP, economic growth, inflation,
rate, interest rate, etc. any change in these factors highly impact on business operations. Due to
covid 19, UK GDP has declined. Thus, offering lunch meals can result in generating low revenue
and profit. Hence, this concept may get failed and growth of Don’t Look Further Catering
Services is affected.
Social – If there occur change in social factor then people needs changes. In recent times due to
covid 19 people needs has changed (Lehtinen, 2018). Now, people are not preferring to take
lunch meals. Thus, it will effect on operations of this concept in negative way.
Technological – With advancement in technology this factor has highly impacted on growth and
development of companies. So, advance technology is installed and used by businesses.
Similarly, company can also use software and AI to collaborate with supplier and offer lunch
time meals to people. For that they can develop App as well.
Legal – These are the factors that have considered as both internal and external sides. There are
considered as certain laws that impact the business environment within a certain nation. The
supplier may need to follow health and safety laws so it may impact on their operations in
negative way as they need to ensure quality of food and provide lunch meals (Tong. and Feng,
2019)
Environmental – These are considered as factors that impacts or examined through surrounding
environment is vital such as farming, tourism, agriculture and many more. It may affect on
4

supplier operations in negative way as they need to maintain sustainability in offering lunch
meals.
P2 Analysis the growth opportunities
There are different options to grow in market which can be applied by Don’t Look Further
Catering Services. The strategy will enable to expand their operations. So, here Ansoff matrix
can be applied by firm which is as below:
Development of market- Here within such strategy firm can adapt to enter in new market
through mid-day meal services such as equipment for mid-day. It is also known as the product
and market expansion grid. It is considered as a tool that is being used through the firm in order
to plan as well as analyses with strategies of growth within different marketplace of firm. For
example they can enter in London and provide mid-day meal service by the help of the
equipment.
Development of product- This strategy may require the development of new competencies and
requires the business to develop modified products which can appeal to existing markets. A
strategy of product development is particularly suitable for a business where the product needs to
be differentiated in order to remain competitive.
Market penetration
Such strategy of firm is highlighting on enhancing sale revenue of firm through offering present
product within existing market. Here with the help of the mid-day equipment meal Don’t Look
Further Catering Service increases their sale. Within such strategy the firm targets to enhance its
share of market with the strategy of market penetration. This strategy can be applied by firm
within ways such as enhancing with distribution, marketing as well as promotional efforts of
firm, reducing prices as well as offering with high quality in order to generate consumer
attraction. Thus it means of acquiring rivalries to have huge marketplace as well as consumer
base for firm. For example- Don’t Look Further Catering Services can attract more customers by
providing varieties of food services by the equipment of mid-day meal as it save manpower and
reduce time also.
Collaboration- Within the context of business Collaboration enables people in order to work
together so that achieved common business purpose. Collaboration can also be occurs by the
tools such as online meeting as well as instant messaging. As Don’t Look Further Catering
Services follow limited partnership with its two partner.
5

Pros and cons
Pros
Partners of Don’t Look Further Catering Services can bring skills as well as knowledge
regarding their catering business so that they get know more about several food items and they
are well experience that can surely direct business on a successful path.
Less financial burden- Instead of paying for everything of their own partners will split the cost
and this will be benefit for Don’t Look Further Catering Services
Cons
Don’t Look Further Catering Services cant makes their own decision as they consult with their
partner for implementing anything and sometime it leads to conflict.
Don’t Look Further Catering Services can have the opportunity to gain all profits from the
business they have to share the profit also.
Merger – Don’t Look Further Catering Services can combine with firms into one surviving firm
as they merge with bakery caters so that they can also provide bakery items within their meals
especially they will add on new bakery items with their mid day meal.
Joint venture- Don’t Look Further Catering Services follows Limited co- operation as Don’t
Look Further Catering Services agrees to collaborate alongside other business within limited as
well as in specific way. Such as Don’t Look Further Catering Services collaborate with event
firm also in order to organize a party. As event business also gets involved within that such as
decoration and other music facilities are also came under such joint venture.
Benefit and drawback of vertical so horizontal integration
Benefits of horizontal integration
Decrease Competition- Through expansion the firm reduces its competition within marketplace,
by decreasing the competition the firm will capable to create monopoly.
Enhance the organization income- Here the overall income of firm's increases as if the
integration goes well as firm develops.
Drawbacks
Hard to manage- It becomes inflexible and too wide in order to manage as it faces more
difficulty within introducing new products within new marketplace.
Always not provide Positive synergy- Horizontal integration not gives positive synergies as well
as gives negative synergy as well as decrease the business.
6

Vertical – In this company can own supplier, distributors by which they are able to control costs.
Pros
It helps in expansion of business geographically.
The quality is maintained and controlled
Cons
The distribution channel is highly impacted in it
The focus on continuing of business is lost in it.
Thus, Don’t Look Further Catering Services can use market development strategy to
enter in new market and expand their business.
LO 2
P3 Potential sources of funding available and examine advantage or disadvantage
Every business requires to analyse the growth opportunities funds to operate and run for
long term. Also, funds are necessary for firm as without them it is not possible to run. Alongside,
the requirement of fund depends on needs, size, operations, etc. of it. Thus, on basis of it
resources are allocated (Heydari. and Sullivan, 2018). However, there are different sources of
funding available for business. Each one is having its own benefit and drawback. Therefore, it is
important to select source properly.
Internal sources are
Retained earnings- They are those sources which can be used by business. The amount of
net income left over for the business after it has paid out dividends to its shareholders.
Pros
The use of retained earnings does not involve any acquisition cost.
Cons
If the purpose for utilization of retained earnings is not clearly stated, it may lead to careless
spending of funds.
External sources are
Crowdfunding- It is use of small amounts of capital from a large number of individuals to
finance a new business venture. This makes easy to collect funds through use of social media.
Pros – there is not much financial risk involved in it as campaign can go viral.
Cons – The campaign might not be successful.
7

Bank loan- It focuses with raising funds as well as capital through means of taking loan from
banks against which the firm require to pay interest depends upon terms as well as conditions
mentioned in agreement. It can be also borrowed funds of firm that requires to repay through
firm after a period. It can be also considering as long term that relied on the firm's needs.
Pros- the amount is easily available from bank.
Cons
This source of funds is business needs to have good rating within credit in order to receives
finances as it leads with putting something as collateral as an outcome implies with risk in order
to asset within firm
For fund-raising Don't Look Further Catering Services company, Bank Loan option will be
profitable as it focuses on raising capital along with funds. As the amount is also easily available
from bank therefore raising funds proves to be better option for the company..
LO 3
P4 Business plan that includes strategic objectives and Financial information.
It focusses on the written document that contains with objective of entity, firms on how to
accomplish goals as well as time frame in order to accomplish goals as well as objectives of the
firm.
Background – Don’t Look Further Catering Services is a catering services which is located in
Lincolnshire. It provides various types of services to its clients such as event planning, dinner
parties to sports and golf clubs. The business is operating by Margaret Millions (Heydari. and
Sullivan, 2018). The service quality is distinct as she uses high quality plate, cutlery, linen, etc.
in parties. Now, she wants to collaborate with supplier to supply lunch meals to its customers.
Executive summary: The company Don't Look Further Catering Services have been focusing on
expanding the business with the supermarket by launching lunchtime meal offer to them.
Mission- Providing high quality catering services
Vision – Become number 1 catering services
Business plan- To start the Lunch time meal deal within 1 year
SMART objective
 To start the Lunch time meal deal within 1 year
SWOT-
8

Strength-
Don’t Look Further Catering Services is having an effective relationship building along its
consumers as per where she is giving with services that are especially customized as per
consumer needs.
The services are delivered in a unique manner and way according to the requirement and wants
in order to derive as consumers are highly satisfied with it.
The catering services are highly specialized as entire event is organized in it.
Weakness –
Don’t Look Further Catering Services is not having business operations online platform to
provide services to customers. Also, consumers being not aware of services that can be offered
as an outcome not enough leads are generated and consumer base in small.
The company is not having a proper structure and highly skilled employees due to which they are
not able to operate in wide area.
Opportunity –
Don’t Look Further Catering Services can expand in other market and can organize parties for
various events as well such as college farewell, corporate parties, etc.
They can collaborate with super market to supply lunch meals to people and generate more
revenue through it.
The company can invest in technology and create a website by which services are offered to
customers. It will enable in attracting more clients.
Threat –
Due to covid 19 there may be decline in organizing parties which can result in loss of business.
There may be rise in competition as new companies can enter in market with same idea. So, it
will enable in competing with them.
Entrepreneurship strategy
There are several strategies which can be followed by Don’t Look Further Catering Services. It is
as follows :
Addressing niche market- here, company can focus on niche market by which they can attract
more people and provide lunch time meals. They can launch a campaign on social media sites
such as Facebook, etc. to reach niche market.
9

Finding new market- this is also a strategy in which Don’t Look Further Catering Services can
enter in new city or town for example- London, Liverpool, etc. they can do it through effective
marketing.
Price skimming strategy- Price skimming is a product pricing strategy by which a firm charges
the highest initial price that customers will pay and then lowers it over time. Thus, it will enable
company to attract people for lunch time meal.
STP analysis
Segmentation –
It is associated to the firm segmentation relied on demographics that determines gender,
age, education, income level. This can identify with distinctive and common traits between
consumers within marketplace that leads engagement of consumer within marketplace that leads
to the engagement of consumer with favorable (Kazmi. and Shin, 2017). It also focuses with
several geographic segmentation regarding England. Thus Don’t Look Further Catering Services
will segment on basis of occupation.
Targeting - The firm target with people who are linked with several sports clubs for football and
others. It also targets corporate those are planning in order to organize events regarding its
individuals such as lunch meals so it will target students.
Positioning –It can be done through firm through delivering high quality standard of services
with fair grounds and no means of cheating that leads alongside building loyalty and trust of
consumers.
Marketing mix
It considered as 4 P’s that can be known as place, product, price and promotion such as
Products - The firm's services are being concerned with services regarding catering that have
high standards regarding quality (Bridge. and Dodds, 2018). It specialises within food products,
spirits as well as wines from high quality of services as well as uses alongside collection of high
quality plates, cutlery, high quality plates. The product here is launching of Lunch time meal
services.
Price- It is generally compared to the rivalries. The firm also follows competitive pricing that
leads no loss within market share. The price is will be low pricing strategy.
Place- The firm also operates with means of having where it has easily convenience regarding
availing services. It also leads that have places of operations of business near the city, places as
10

well as town that increases alongside the firm’s growth. The meal will be available through
suppliers.
Promotion –
The firm regularly works with effective promotional techniques on social media platform such as
Facebook, YouTube, Instagram and several others to target consumer base as well as cost
savings and time effective to the firm as well. Here, digital marketing will be used to attract
people.
Financial budget
Profit statement
Particulars Year 1 Year 2 Year 3
Sales 438000 481800 529980
Less: COGS (35%) 153300 168630 185493
GP 284700 313170 344487
Less: indirect expenses
Salaries 40000 44000 48400
Rent 30000 33000 36300
Promotional expenses 15000 12000 10000
Lights and heating 12000 13800 15870
Other sundry expenses 6000 6600 7260
Selling & distribution expenses 15000 17250 19837.5
Packaging expenses 19000 21850 25127.5
Total indirect expenses 118000 126650 137667.5
Earnings before interest and tax 166700 186520 206820
Less: interest expenses 20000 20000 20000
Earnings before tax (EBT) 146700 166520 186819.5
less: taxation 27873 31638.8 35495.71
Earnings after tax 118827 134881.2 151323.8
Monitoring and evaluation
It is important to do monitoring of business plan to find out if outcomes are attained or
not. So, here evaluation will be done by comparing results with set goals. Along with it, KPI
will be used in evaluating plan (Sparkman, 2018). For monitoring progress report will be
prepared so ensure that plan is implemented properly.
11

LO 4
P5 For a small business exit or succession options describing its advantageous and disadvantage
Reasons for business failure- It is evaluated that there can be certain reason due to which launch
of lunch meal can get failed. This can be due to ineffective network of supply chain by services
may not be delivered in time. Moreover, there may be lack of funds due to which business can
get failed.
How business failure can be prevented- the failure can be improved by preparing a proper budget
and allocating resources accordingly. Also, there can be back up of budget kept that can be used
in case of emergency. Alongside, by developing proper strategy business failure can be
prevented. In that a strong connection of supplier can be developed.
There are several exit as well as succession option for considering small business are
Selling the business - It focuses on that workers or managers will be interested within
purchasing of the firm. It is considered as one of benefit as business can thrive as well as survive
as workers and employees will get business that can be established and also they are also
enthusiastic and family regarding it (Heydari. and Sullivan, 2018). Through arranging the long
term buying from workers and employees can enhance with boosting as well as loyalty in order
to work hard so that making business more successful. It is also called as one of the disadvantage
where workers cannot be suitably qualified in order to take over business as well as clients can
also not approve alongside management that is new and changes within direction of an entity.
Pros- it may enable in getting high price for business when economic condition is stable.
cons – the process is time consuming so this may incur huge legal cost as well.
Growth and succession in family business
The dream of several small business owners keep business within the family assures that legacy
lives on as well as gives a living for heirs.
Benefits
It can allow one top keep a hand within business within capacity of advisory. It also makes for a
smooth transition through grooming a successor of family.
Disadvantage
Members of a family do not have the skill to take over the business.
Areas of potential conflict-
Favoritism or Nepotism
12