Connect Catering: Strategic Growth Plan, Funding, & Exit Strategy

This report analyzes growth planning for Connect Catering, a UK-based SME. It evaluates growth opportunities using the BCG and GE-McKinsey matrices, and explores strategies using Ansoff's matrix, recommending market development in Latvia. The report assesses internal and external funding sources, detailing benefits and drawbacks of each. Furthermore, it outlines a business plan for scaling up the business, considering financial information and strategic objectives. Finally, it examines exit and succession options for small businesses, comparing their benefits and drawbacks and providing recommendations for Connect Catering. Desklib offers similar solved assignments and past papers for students.

Planning for growth

Contents
INTRODUCTION...........................................................................................................................1
PROJECT 1......................................................................................................................................1
PART 1............................................................................................................................................1
Analysing basic considerations for evaluating the growth opportunities and justification for
these consideration within a organisational context....................................................................1
Evaluating growth opportunities by applying Ansoff's growth vector matrix.............................4
Discussing the options for growth by using a range of analytical frameworks to demonstrate
the understanding of competitive advantage within an organisational context...........................5
PART 2............................................................................................................................................5
Assessing the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................5
Evaluating potential sources of funding and justification for the adoption of an appropriate
sources of funding for a given organisational context.................................................................8
PROJECT 2......................................................................................................................................9
PART 3............................................................................................................................................9
Designing a business plan for growth that includes financial information and strategic
objectives for scaling up a business.............................................................................................9
Evaluating the potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context.................................................................11
PART 4..........................................................................................................................................11
Assessing exit or succession options for a small business explaining the benefits and
drawbacks of each option...........................................................................................................11
Evaluating exit or succession options for a small business comparing and contrasting the
options and making valid recommendations..............................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for the growth allows an individual in order to assess their company's
performance as well as identify the important areas of opportunity that assist in expanding the
business in effective manner (Addaney and Cobbinah, 2019). It helps in setting the goals and
targets of the business as well as provide clear tactics and strategies to reach them in efficient
manner. Planning assist companies to analyse markets that are growing and large that makes
company to build revenues in easiest manner. For the following report, selected company is
Connect Catering which private limited small sized company based in United Kingdom and it is
incorporated 9 November 1989 (Family is at the heart of everything we do, 2020). It is a
forward thinking contract caterer of fresh food. It provides delicious food service along with
exceptional service to their customers in effective manner. The following report identify the
basic considerations that might be considered by SMEs for evaluating its growth opportunities.
Furthermore, it includes different methods in which organisations can access funding and when
to used different kind of funding. The report evaluate business plan and communicate how a
company intend scaling up a business. It also analyse different ways a small enterprise owner can
exit the business and the implications of each options.
PROJECT 1
PART 1
Analysing basic considerations for evaluating the growth opportunities and justification for these
consideration within a organisational context
The main aim of an organisation is to develop its growth in the market for long term. In
order to make its growth effective, it is important for its owner to analyse those things that
provide growth opportunities to them (Adzmi and Hassan, 2018). Brexit affects SMEs in many
ways which affects their market growth effectively. In context with Connect Catering, for
analysing its growth opportunities two matrix is described below:
Boston Consultancy Group Matrix-
It is a framework of planning which uses graphical representation of company's product
and service that aids company for deciding what to invest, keep or sell more in. It is internally
used by the management of the company to assess the current value of product lines or firm's
units. This matrix includes four different categories that are cash cows, dogs, question marks and

stars. All these categories are too different and unique from each other. In respect of Connect
Catering, all these categories are discussed below:
Dogs or pets- It describes that the product of a company has low market share than its
growth rate is also low which makes company to sold, repositioned or liquidated. This shows
that the product does has ability in order to generate much money for the company because it
have low market share and growth (Ansoff, 2018). In regards on Connect Catering, its dogs or
pets service is shipboard catering service,this turn out in cash traps and tying their funds for long
period of time.
Cash Cows- This category shows that situation in which company's products that low
growth rate but it has high market share. This makes company to milk the cash cow for as long
as it can. These products generate higher returns than the market growth rate as well as keep up
itself from a cash flowing position. In aspect of Connect Catering, its mobile catering services
make profits to them as long as possible.
Stars- It describes those products who has high growth rate and market share that makes
company to invested more in these products effectively. It generate high amount of profit but it
also take large amount of company's cash. In point of Connect Catering, its star service is
wedding catering service that remain a market leader and it can become a cash cow when its
market growth rate declines.

(Source: BCG Matrix, 2017)
Question marks- Products that have high amount of growth rate in the market and low market
share are considered question marks (Bobic and Akhavan, 2022). These kinds of products are
grow fast but take large amount of company's resources. In esteem of Connect Catering, its seat-
back catering services are analysed frequently and nearly to realise if they are worth holding.
GE-McKinsey matrix
It refers to strategic tool that evaluates enterprise portfolio, provides further strategic
implications as well as assist to range the investment required for each enterprise unit. This
matrix includes two dimensions that is competitive strength and industry attractiveness of a
business unit. In account of Connect Catering, these two dimensions are mentioned below:
Industry attractiveness- In this dimension, companies are able to accrue profit within its
industry. Companies are evaluated with this dimension that are considered for their long term
growth potential, industry profitability, industry size, entry and exist barriers, etc. It further
evaluate the power of buyers and suppliers along with the other environmental factors that
influence industry attractiveness. In accordance with Connect Catering, it makes them to
considered their service, how they change the requirements of price, time and labour. For
Illustration 1: BCG Matrix

focusing on their distant future all these dimensions are important, because investment require
long term commitment instead of short term.
(Source: GE Mckinsey Matrix, 2018 )
Competitive strength- While evaluating a business unit with this dimensions, it consider, how it
fares relational to its rivals within industry (Gallent and Tewdwr-Jones, 2020). In case of
Connect Catering, there are some factors that can helps them to analyse its competitive
advantage within catering service are its uniqueness of its products or services is medium,
customer loyalty and satisfaction is high, profit margins is medium, brand awareness is low,
market share growth potential and market share it commands.
Evaluating growth opportunities by applying Ansoff's growth vector matrix
Ansoff's growth vector matrix refers to an effective tool that are used by the companies
for analysing and planning the strategies related to growth. This matrix describes four strategies
that can be used to help company to improve its growth as well as analyse the risk that are
associated with each strategy. In context with Connect Catering, the four strategy related to its
growth are described below:
Market Penetration- This strategy used by the company when they wants market its
existing product in existing market. The main aim of the company is to increase its market share
Illustration 2: GE Mckinsey Matrix

through penetration strategy. In respect of Connect Catering, they will decrease the price of their
existing products in order to attract more and more new customers in effective manner.
Product development- This strategy are used by those company when they want to cater
in existing market with the help of its new products (Gualini, 2018). In this strategy company
involves in extensive research and development as well as expansion of the company's product
range. In regards of Connect Catering, their management are focus on providing in sustainable
service to their existing customers. For this they invest more is their Research and development
for catering their exist market.
Market development- This strategy makes companies to enter in a new market with
their existing products. In case of Connect Catering, using this strategy can expand their business
in foreign countries with their existing products. This makes company to attract new customers
as well as improve their growth in effective manner.
Diversification- In this type of strategy, companies enter in new market with its new
product. This strategy is most riskiest as well as required both market and product development.
Diversification is divided in two category that are related and unrelated diversification. In aspect
of Connect Catering, in related diversification they realized between their existing business with
its sustainable catering service in foreign market. In unrelated diversification, they provide
retailing service in foreign market.
From the above discussion, Market development is considered best growth opportunity
for Connect Catering in order to its existing product in new country market in order to attract
new consumers for their catering service in effective manner (Han, 2019). This will makes them
to expand their business in Latvia because their low barriers for entry as well as cost effective
that helps in improving its growth in effective manner.
Discussing the options for growth by using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context
The growth of Connect Catering company is improved with the help of different
frameworks in effective manner. According to BCG matrix they have to more focus on its
effective service in that provides effective service that helps them to improve its growth in
effective manner. GE Mckinsey helps them to evaluate those dimensions that provide sustainable
competitive advantage in order to become more competitive within its catering industry

(Joelsson and Scholten, 2019). Ansoff's matrix makes them to focus on their market development
in order to improve its growth in effective manner. In which they expand their business in new
country that is Latvia that helps them to attract new customers as well as improve their
organisational growth effectively that would affected due to Brexit.
PART 2
Assessing the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
Many kinds of methods are available that provide effective fund to businesses which
makes them to operate its different functions in effective manner. Funds helps SMEs to improve
its growth and overcome from the negative impact of Brexit in effective manner. In aspect of
Connect Catering, different sources of funding that helps them to improve its growth in effective
manner are mentioned below:
Internal source of finance- In this type of method, fund is generated within internal region of
the organisation which includes utilisation of retained earnings and selling of assets. In case of
Connect Catering, its benefits and drawbacks are mentioned below:
Benefits Drawbacks
 It is a most effective funding methods
that avoids the dilution of control and
ownership. This will make owner of
Connect Catering to generate its fund
effectively without diluting their
control and ownership.
 It is fastest and easiest method for them
in order to generate profit as well as
does not need to focus on repayments.
 In this funding method company
generate lesser amount of fund that
might create difficulties to the owner of
Connect Catering service is to improve
its growth in effective manner.
 This method decreases the assets of the
company and create problems to
improve their business growth.
External source of funding- In this type of funding, company gathered funds from external
factors which includes venture financing, bank loan, debenture, etc. (Marshall, 2020). In respect
of Connect Catering, there are many methods of external sources of funding are available that

provides them to improve its growth and expand their business in foreign market in effective
manner. These funds and their benefits and drawbacks are described below:
Bank loan- In this type of source funding, company takes loan from a bank in order to
operate their business (Mckeown, 2019). This makes them to repay that amount in the form of
instalments including interest amount. In terms of Connect Catering, the benefits and drawbacks
for using bank loans are described below:
Benefits Drawbacks
 In terms with this source of funding, it
provides flexibility to the company in
order to repay as per their convenience
as long as they can. This makes its
owners to pay their long in different
regular and timely instalments.
 This method is cost effective that makes
company to get funds in low amount of
cost. This makes Connect Catering to
pay low interest rates in comparison
with overdraft and credit card.
 In bank loan big finance is based on
collateral that makes the difficulty for
the small company to generate the
funds through loan. This creates
difficulty for Connect Catering in order
to operate their business in effective
manner.
 If the company does not pay proper
instalments then the penalty charges are
also included with the their repayment
amounts.
Bank Overdraft- This refers to an facility that is provided by bank to its customers in
order to use higher amount additional to their account balance (Meares, 2021). This makes easier
to the company assess funds in effective manner. The bank charge certain amount of interest for
the use of excess amount. In point of Connect Catering, its benefits and drawbacks are discussed
below:
Benefits Drawbacks
 It provides flexibility of the company
that makes them to change the amount
borrowed within the limits. The owner
 Bank Overdraft method can not be used
for large type of borrowings that make
difficulties for the company in order to

of Connect Catering that makes to
easily raise its funds according to their
requirements.
 The interest amount is only paid on the
borrowed amounts that makes company
to repay their loan in easiest manner.
improve its growth in effective manner.
 Its rates of interest is higher than the
bank loan which makes company to
pay more amount in order to decrease
their overdrafts as well as improve their
productivity.
Crowd Funding- In this type of source of funding, funds are collected from a large
group of people by using online platforms (Miessner, 2020). In esteem of Connect Catering, its
benefits and drawbacks are mentioned below:
Benefits Drawbacks
 This is most convenience method that
makes Connect Catering to easily set
crowdfunding platform in internet.
 It refers to great alternative of bank
lending that provide easy access to
various forms of donations and interest
free loans.
 It provides false negative results
because they idea or products of
Connect Catering may not like by the
people. This creates difficulties to them
in order to operate their business in
effective manner.
 This method is time consuming that
takes company's significant time in
order to prepare the crowdfunding
campaign in order to raise fund in
effective manner.
Peer funding- It is a method of equity financing that help companies to raise funds
through venture capital start-ups and render fundsc(Mirzaei and Kazemi, 2020). In case with
Connect Catering its advantages and disadvantages are discussed below:
Benefits Drawbacks
 It provides higher accessibility to the
company that makes owner of Connect
 It cause high risk that makes company

Catering to raise funds without facing
any difficulties.
 The funds is obtained easily with low
rate of interest that helps them to
increase their profitability in effective
manner.
to bear high credit risk.
 The government not provides insurance
for this that company to beer high
amount of risk in effective manner.
Evaluating potential sources of funding and justification for the adoption of an appropriate
sources of funding for a given organisational context
From the above discussion, it is analysed there are various methods available in the
market that help company to raise fund in effective manner. This also helps them to improve
their business productivity and growth that get affected due to the Brexit (Nel and Lewis, 2019).
In case of Connect Catering, it is analysed that, its owner should raise funds from bank loans
because it is considered most easiest and effective method that helps them to increase funds for
their business growth. This makes company to pay less amount of interest rate and can improve
their business growth in effective manner. It helps company to easily expand their business in
Latvia with its effective service.
PROJECT 2
PART 3
Designing a business plan for growth that includes financial information and strategic objectives
for scaling up a business
The business plan includes the summary of business that describes what their business
does, how it has developed and where it want to go. The plan covers the strategy for improving
their existing sales and process that helps in achieving the desire growth in effective manner. It is
essential for the owner of Connect Catering to make a plan for their growth that related with its
strategic process and task orientations in effective manner. This make company to follow
strategic process along with the proper utilisation resources in effective manner (Ponzini and
Ruoppila, 2018). They use organic products and sustainable services in order to make their
products more unique and environment friendly that helps them to attract more and more

customers for their products in effective manner. This main purpose of this strategy to help them
to get overcome from the impact of Brexit in effective manner. It also assist them to decrease the
competition within catering industry in effective manner. Its business plan are described below:
Basis Strategies
SWOT analysis It helps company to analyse their current strengths and weaknesses
as well as the forthcoming opportunities and threats in order
improve their productivity in effective manner. In context with
Connect Catering, following are its strengths, weaknesses,
opportunities and threats:
Strength
 It provides most
delicious products to
their customers
 The price of their service
are reasonable
 Their menu are more
unique and effective
 Effective staff and chefs
Weaknesses
 Not proper funds to
operate more effectively
 Longer waiting times for
food or seating
 High level of noise
 Lack of popularity in the
company
Opportunities
 Increase in customers
due to its new strategy
 Long term engagement
with their customers
 Effective expansion in
another country
 Enhancement in business
productivity and
profitability
Threats
 Lack of knowledge about
another country culture
and customs
 Huge competitions due to
increase in globalisation
 Different language
spoken in another
country
 Different taste of people
Mission and Vision Vision describes that goals of the company what they want to
become for the future where as mission makes company to focus on

today what they want to achieve it in effective manner. In respect of
Connect Catering, its vision is to improve overall organisational
growth that was affected due to Brexit situation (Puyana, 2019). Its
mission is to expand their business in foreign country that is Latvia
with its existing products in order to improve their organisational
growth in effective manner. This will also help them to improve
their productivity and customer service in effective manner.
Ethical value Ethical values guides company in order to operate their business in
ethical manner. In regards of Connect Catering, its ethical value are
described below:
 This makes them to provide safety food to their potential
customers in order to prevent them from food poisoning,
allergic reactions and cross contamination.
 They provides better quality catering service to their
customers in order to maintain their loyalty and
trustworthiness in effective manner.
Source of finance There are many source of finance are present in the market that
helps SMEs in order to raise funds for the operations of their
business in appropriate manner. In case of connect catering, their
owners can take loans from an effective bank that helps them to
expand their business in Latvia with their existing products in
effective manner (Saliminezhad and Bahramian, 2020). This method
is cost effective and easier that helps company to repay that amount
as long as they can in many and regular instalment with interest
amount in effective manner.
Evaluating the potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context
It is essential for the owners of Connect Catering to evaluate the possible sources of
funding in order to choose the effective methods that helps them to improve its organisational

growth in effective manner. In order to improvement of the company they can take loans from
the bank that help in expanding their business in Latvia with their existing products in effective
manner. Bank loans is the most effective method for SMEs in order to raise funds in effective
manner that help in raising the funds without losing the control of the company in effective
manner. Its rates of interest in low in comparison to other method of funding that assist company
to earn more profit in effective manner (Scott, 2019). All these qualities of bank loan makes
Connect Catering owner to raise the funds in most effective manner. This will become for them
in order to get overcome from Brexit impact in effective manner.
PART 4
Assessing exit or succession options for a small business explaining the benefits and drawbacks
of each option
Small business's business plan for growth includes succession and exit plan that are
important for their managers in order to analyse for improving its growth in effective manner.
There are many options available for the company for succession or exit. This help companies to
get overcome from the Brexit situation in effective manner. These options also consist some
benefits and drawbacks that make Connect Catering to focus in order to choose a effective plan
for its growth. These options are described below:
Merger- In this type of strategy most of the small companies are like to combine with
another companies in order to gain competitive advantage in effective manner. It describes the
agreement in which two companies are merge in order to create a new company in effective
manner (Sierra and Calabrese, 2019). Both the companies share their resources in order to
operate a particular business in effective manner. In context with Connect Catering, its advantage
and disadvantages are described below:
Advantages Disadvantages
 Companies increase its market share by
using merger in effective manner.
 Their cost of operations are also
decreases.
 The price of company's product and
service are increases in this method.
 Communication gap is generated within
an organisation.

Employee buyout- In this type of strategy company offers effective package to their
productive employees. These packages consist various benefits for the employees that makes
them effective for the company (Wang and Gu, 2019). Its advantages and disadvantage that
makes owner of Connect Catering to choose or not this option are mentioned below:
Advantages Disadvantage
 It is most helpful for the company in
order to improve its efficiency by
improving their employees efficiency
in effective manner.
 Competition within a organisation are
also reduced.
 Debt burden are imposed in the
business.
 It affects in loss of key personnel in
effective manner.
Evaluating exit or succession options for a small business comparing and contrasting the options
and making valid recommendations
Succession plan describes a plan that company's focus on the identification of potential
leaders as well as high performers and helps them to develop so they become effective within its
organisation in effective manner. In aspect of Connect Catering, it is a cost effective method that
make them to develop their existing employees for key position rather than hiring new candidate
that helps them to improve its growth in effective manner. This will aims to reduce their turnover
rate in effective manner. More experienced employees are mainly not like to leave their
organisation, if they are more recognizes with their leadership potential as well as allows them to
move forward for their career in effective manner. This will make company to improve its
growth and productivity in effective manner. This will helps them to enjoy the control over the
organisation in effective manner.
CONCLUSION
From the above mentioned report , it is concluded that planning for growth is an effective
strategy that help company to analyse all those resources that helps them to improve its growth in
effective manner. Boston Consultancy Group Matrix and GE-McKinsey matrix help SMEs to
improve their business growth by analysing various growth opportunities in effective manner.
BCG matrix distinguish company products in 4 category according to the level market share and
market growth that help company to analyse effective growth opportunities in effective manner.

Market Penetration, Product development, Market development and Diversification are different
growth strategy of Ansoff matrix that help company to analyse effective strategy for growth.
Internal source of finance and External source of finance are two source of funding that help
companies to raise funds in efficient manner. Bank loan,Bank Overdraft, Crowd Funding and
peer funding are different form of external source of funding for companies. Business plan helps
companies to analyse various strategy that helps them to achieve their objectives in effective
manner. Merger and employees buyout are effective methods for the Small companies that helps
in exist or succession in effective manner.

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Online:
Family is at the heart of everything we do, 2020 [Online]. Available through:
<https://connectcatering.co.uk/>
BCG Matrix, 2017 [Online]. Available through: <https://www.business-to-you.com/bcg-
matrix/>
GE Mckinsey Matrix, 2018 [Online]. Available through
<https://expertprogrammanagement.com/2018/03/ge-mckinsey-matrix/>