Creams & Buns: Growth Strategies, Funding & Exit Report

This report provides a comprehensive analysis of growth strategies for Creams & Buns, a cafe and bakery business. It begins by evaluating key considerations for growth opportunities, including competitive advantages, resource assessment, and external factors using the PEST model. Porter's generic strategies are then discussed to identify the right path for the business. The report further explores growth opportunities using the Ansoff matrix, focusing on market penetration, product development, market development, and diversification. The report also examines potential sources of funding, such as bank loans and angel investors, along with their respective benefits and drawbacks. Finally, the report touches upon business plans covering financial information and strategic objectives, and discusses exit or succession options for the business. The analysis aims to provide a strategic framework for Creams & Buns to achieve sustainable growth and market competitiveness.

Planning for Growth

Table of Contents

INTRODUCTION
Planning for growth is the vital concept which is helpful to ensures business growth and
long term sustainability for firm to operate in most suitable or productive environment. Growth
of the firm will be takes review after analysing current strategies or action plan to ensures that fir
m would accomplish its defined goals or objectives (MacLeod, 2013). In current era, planning is
the ongoing task to plan's for development of strategies or suitable outlook to rise business
predictabilities. This report will be carry on Creams & Buns, which is the leading cafes plus
bakery to offer's out delicious eateries to their customer's. In other way, report puts light on
analyse key consideration for evaluating growth opportunities and its justification, discussing an
opportunities for growth applying supportive model, checking potential sources for funding
along with drawbacks and benefits. Report will also designing business plan covering financial
information & strategic objectives. Lastly, report will also discuss on exit or succession option.
MAIN BODY
P1 Key considerations for evaluating growth opportunities and justify these considerations
Growth is vital for every firm to operates in different situation and condition of business
environment. In business era, growth such as business expansion, rise in profitability, expanding
business on global platform etc. are expected to engages (Lewis, 2013). Also, business growth is
a stage where firm start from diminishing point and reaches out to expansion or business
development. During this, firm uses its resources such as human resources, material, fund,
technology etc., which help to provides situation to firm's operation in the expected platform.
Creams & Buns is necessary to check & evaluates elements of competitive advantage such as
core competencies, resources, capabilities etc. to know how long selling & business suitability
will go. Discussion is as given under:
Competitive advantage: This is a favourable position for firm which help to reach at
more profitable stage than its competitor. Effective utilisation of a resources will be vital part to
gather competitive position in the bakery market. Creams & buns is vital to be considers factor's
such as:
Resources: In creams & buns, resources such as manpower, funds, time, resources etc., is
necessary to produces bakery product's such as coffee, buns, cookies etc., in order to get strong
position into the business environment.

Capabilities: Creams & buns has right people who have skills or ability who is capable is
being to rise growth & capabilities of this new venture.
Core-competencies: This is the mixture of multiple resources such as skill, technology,
worker, material etc., which can be termed as core-competency for growth suitability of Creams
& buns. With these resources, demand of consumer is expected to be rise (Levy, J. M., 2016)
Along with this, assessment of the forces such as political, economic, technological etc.,
should be taken into consideration using pest model to do external assessment for the creams &
buns. An above analysis of an entire Pest is as given below:
PEST
Political: Changes in political state of United Kingdom may lead to shifts in buying
power of consumers or tax policies, thereby affecting the operations of creams & buns.
Economical: Recession can act as one of the most crucial economical factors that can
have a massive influence upon the operations of creams & buns and to deal with this, company
may have to reduce the pricing of its offerings (Schetke, Haase and Kötter, 2012).
Social: Social media is one of the most liked trends across the globe making use of which
creams & buns can significantly reach to maximum number of people to effectively promote its
products or services among clients (Pred, 2017).
Technological: Creams & buns can make use of latest techniques and processes to gain an
edge over rivals and also captivate the attention of customers, thereby enhancing its sales.
Porter generic strategies:
This strategy is useful to identifying right direction or path for cream & buns. Porter have
three different strategies such as cost, differentiation, focus (cost or differentiation) places vital
role to creates demand or necessities for this leading cafe's. The discussion is as given under:
Cost leadership: In this strategy, firm is sets out to become low cost producer in its own
industry. The sources of cost advantage is varied & also depends on the structure of an industry.
This will assist creams & buns to rise their economies of scale, increasing use of an advanced
technology and also led an easy access to the raw materials to protect rise in cost.
Differentiation: In this strategy, firm is seeks to be look unique in its respective industry
focusing on dimension such as colour, size, taste, features or characteristics etc. In present time,

buyers has become advanced & focus on choices further. Using this strategy, creams & buns can
differentiate their bakery product to increase product's values.
Focus: The generic strategy of focus mainly depend on choice of the narrow scope for a
competitive scope within the business (Gerhart, 2018). Using this strategy, focuser selects a
segment or group of segments in an industry and tailor's its own strategy to serve them to the
exclusive offers. In this strategy, two different variants exists such as cost focus which is helpful
to seek advantage of the cost to target specific segments. On other hand, differentiation focus
seeks out differentiation in its specific segment.
Brief analysis: Creams & buns uses differentiation strategy to initiates innovation in its
own product's to gather competitive position into the market. Using this strategy, growth is fixed
plus ability to get revenue is also expected and decides in advance. Therefore, creams & buns is
need to be focus such as differentiation with help of which differences can also be brought to
business goals into the radar and also accomplishes in given point of time.
P2 Evaluate the opportunities for growth applying Ans-off's growth vector matrix
Ans-off matrix is one of the vital tool to employ growth opportunities into business firm
that is helpful to business expansion & also assist in an achieving competitive advantage over its
own rivalries (Hollenbeck, 2017). Using Ansoff model, creams & buns is expected to gather
scope for development of bakery or cafes product, pushing an existing product into market etc.
For this, application of this model is need to be taken care to takes long term support for this
firm. An above analysis is as given above:
Market penetration: In this strategy, firm is looking to push an existing product into the
similar market with two option such as lower prices and started focusing quality. With
penetration, focus has to be on rising profit and brand image in overall industry and consumer
mind. The smart objective of the Creams & buns is to grow long term profit & revenues by 10
percent. Therefore, penetration strategy is a best option to gain market & customer trust. In this,
risk of business threat is moderate, as product has long lasting image in customer's mind.
Product development: This strategy deals with introducing new product in existing
prices. In this, detailed or concise market research on defined idea is essential and also checks
longer term scope for the business of creams & buns. In this context, creams can comes with
adding new complimentary such as buns with support of the coffee. This will assist creams &

buns to gather new product by replacing existing product would be high risk for creams & bun to
gather more & new customer's. Risk is moderately high, due to replacing existing
Market development: In this strategy, firm is generally looking to launch new product in
an existing market to gain new market strengths (Grover and et. al., 2017). In context with
creams or bun, firm can comes with hot Ghana coffee in market, where cold coffee and ice
coffee has given major priority. This can be termed growth plus risk stage, as it would changes
customer's perception about coffee and that segment of coffee will be breakdown. This strategy
will be suitable only when firm is in only one focus product's and looking for market expansion
in same segment.
Diversification: This is a last stage of an Ansoff matrix, in which firm is looking to sell
new product's to new market and this is high risky strategy, because getting new product in place
where existing is already renowned in that condition, launching new product will tarnish image
of existing product in response would loose its brand image. Hence, business if in case want to
apply this strategy have to understand its business strengths.
Brief analysis: From above discussion, it is justified that Ansoff matrix is growth oriented
strategy, which focus is on firm's competencies such as products or services or its own valuable
customer or people. Simultaneous focus on market penetration and product development will be
option with help of product will be develops in an effective manner.
TASK 2
P3 Potential sources of funding available to businesses & benefits and drawbacks of each source
Fund is an essential resource which help of which business like creams or buns expands
their operation and do launching new product or services (Galland, 2012). As, fund is a need,
consideration here is its arrangement or acquiring in legal or defined manner. In context of
creams & buns, angel investor such as DAX financials are its investor's and fund raiser, with
help of which they have started their business operation till now. While funds can be gather
different types of an investor such as internal such as retained earning, capital reserve etc. On
other side, external sources such as angel investor, bank loan, financial institution etc., will be
discussed to gather right access to the fund either purpose to start new branch or business
expansion. For purpose of this assessment , external sources of funding (bank loan, angel
investor, financial institution etc.) An application of different types of funding are as follows:

Bank loan: This is one of the convenient source of raising fund in which bank demands
collateral security and release fund after full proof check. In this, protect to release of money till
reach to the customer's will be in knowledge. Hence, protection to the fund has greater surety.
This source of funding is helpful for creams or buns to launch new product and led promotion,
advertisement to enhances reach to its customer's.
Benefits: Bank provides security and surety to people in receiving fund to conduct firm
activities and a safe support to collateral security.
Drawback: Bank loan have some time period, during which entire amount of loan should
be settle and, if not paid, collateral security will be seized by the bank.
Angel investor: Those entity who have their own policies or regulation while giving fund
to an individual or business entities (Eddleston, 2013). Angel investor's are those entities who are
freedom to give and also which have less restriction. This is because, expectation for future
return is concern for angel investor, if they are giving funds to business entities. DAX limited is
an angel investor of the creams & buns to gives out funds for doing business expansion as well
as launching new cafes products. Role of the angel investor is to understand situation of a
business and raised fund accordingly (Denton and et. al., 2017). Creams and bun have future
suitability to do attracting funds for DAX limited to carry out business activity in an effective
manner.
Benefits: Creams and buns would get fund easily in an expectation of future valuation of
money and rise in brand image with this purpose. These investor never demand for any kind of
collateral securities.
Drawback: Due to the third party, chances of frauds & money theft is also severe. Cream
or buns might faces issues regarding loss of the brand image or might be stuck into legal cases.
Financial institution: These includes financial bodies such as banking sector who must be
registered under legal act or bodies to maintain its legal identity and also image for longer time
period. In these institution, funds are just raised after getting clarification and confirmation from
higher authority so as to protect legal image of it. Financial institution are some times demand
repayment, if in case, valuation of business reaches to million dollar.
Benefits: Creams & buns can creates long term relationship for future purpose and, if in
case, cream would demand for more funds in case of an urgency.

Drawback: Fraud & loss of strong brand image is the critical concern with the financial
institution and previous research says many financial institution has occurred into legal cases.
Briefs summary: Creams & buns has option to go with angel investor for raising to go for
business expansion. Hence, this is necessary for Cream & buns to do planning for funds and
demand from an investor in an effective manner.
TASK 3
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business
Business plan is the written description of business future's what is the future of business
and where it will be reach, if strategies would develop correctly. This contain vision, mission and
strategic objectives with help of which business firm can estimates future business suitability and
rise in the productivity (Chapin, 2012). The major purpose of the business plan is to ensure
elements for growth of a business firm. Creams or buns is necessary to structure complete plan
with help of which an effective strategies will be suggest:
Overview of the firm: Cream & buns is one of the leading cafes and bakery business
which was started months back and leading market right now (Beatley, 2014). This new business
is specialised in selling coffee, cookies and bun to its customer's at the price as per the industry
standard. Firm is looking for business expansion and launching new product's such as
complimentary snacks, cookies to give support to coffee user's.
Vision or mission: Creams or buns has vision “Being customer favourite taste” along
with mission is to rise sales of a business by 10 percent as their strategic objective or SMART
goals.
Competitor analysis: Liverpool taste and Brecon are two major competitors for the
Creams & Buns and can be treated as major hurdles in between accomplishing strategic success
into the sector of bakery and eateries.
Risk strategy: Here, risks are associated with failure to grab resources such as man,
material and technology etc., which is important to manufactures the bakery product in effective
manner.
Strategic objectives: Cream or buns which is a new cafes or bakery firm has set Smart
objectives of increasing sales by 10 percent and launching any new cafes products. This has been

decides that cream will go for launching complimentary pastries to attract more and more people
to drink coffees. They have decided to raise their business sales or revenues by 10 percent which
is time specific, measurable & relevant in nature. In addition to this, effective target market such
as
Financial information: This will include budget allocation and cash flow statement to
get an actual requirement of the funds such as initial investment and cash required to bear
expenses to develop new products or services in an effective manner (Barbour and Deakin,
2012). Defined budget are as given under:
Expenses estimation:
Particular 31/12/18 (pound) 31/12/19 (pound) 31/12/20 (pound)
Implementing
technology cost
28000 - -
Promotional expense 5000 10000 12000
Advertisement
expense
7000 8000 8000
Catalogues 4000 6000 4000
Training charges 7000 10000 9000
Total Cost 51000 34000 33000

Cash flow statement: This is the numerically detailed tool with help of which cash inflow
or outflow would be measured in an effective manner. This statement is comprises of three stage:
cash flow from operating, investing and financial activities.
Above cash flow statement has shown that business is in strong financial position with
help of which creams & buns are in need of cash of 88, 435 pounds to fund business to achieves
higher profits and expand business profitability at major context.

TASK 4
P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option
In the modern era, each business has the sole motive of earning huge profits and
sustaining in market place for a long duration of time. The long term objective of an entity is
usually to attain growth and carry out expansion in as many territories as possible. However, at
times, the financial position of company is not so strong to facilitate growth and/or expansion,
thus there is only one option left with such businesses, namely, the exit approach (Todes, 2012).
In this regard, creams & buns is also considering the options of exit and succession in order to
arrive at a fruitful decision for the betterment of organisation, as follows:-
EXIT STRATEGY
Liquidation: This is one of the necessary technique that is intent to sale all assets of the
business owner with the purpose to settle previous debts before going to an exit option. This
strategy is the good option to be applicable by the creams & buns to maintain its goodwill after
winding up.
Advantage: It is the unique strategy for rising out of financial debts and at the same time
hold over the repute of the firm in the market place so that business can be started again at the
intention of owner if needed (Ziari and et. al., 2012).
Disadvantage: In this exit strategy, assets are impotent to be sell at the higher price due
to the fact that shareholders and creditors title the property and think to empower as per
accordance with sharing ratio and credit amount.
SUCCESSION STRATEGY
Merger and acquisition: This is the strategy in which two entities unite collectively with
vision to carry out enlargement of business. This is the best option for creams & buns to led
usage of a resource of other entity and feasibly carry out operations of regular basis (Business
Exit and Succession Planning, 2018).
Advantage: This tends to increase in working capital of the business resulting in increase
of its profitability.
Disadvantage: It is the tangled strategy which sometimes led to outgrowth of the struggle
among new as well as existing employees, thereby connote decrease in organisational
productivity.

CONCLUSION
From the above report, it is concluded that, planning for growth is the necessary concept
with help of which business such as cafes or bakery can ensures about their growth and also
increasing strategies to gather long term growth for the business. Ansoff matrix has been resulted
into ensuring business growth or launching any new products. Pest analytics has resulted into
determining external environment impact on business operation or regulation in an effective or
productive manner. Business plan has been resulted into developing right and defined strategy
with help of which business firm can accomplishes its own desired goals or targets.