Planning For Growth: Analysis of DLFCS Business Expansion

This report examines the growth strategies for Don't-Look-Further Catering Services (DLFCS), a small-to-medium enterprise (SME) aiming to expand by supplying lunch meals to supermarkets. The report analyzes key considerations for evaluating growth opportunities, including Porter's generic strategies (cost leadership, differentiation, etc.) and PESTLE analysis (political, economic, social, technological, legal, and environmental factors). It also explains growth opportunities using Ansoff's growth vector matrix (market penetration, market development, product development, and diversification). Furthermore, the report explores various sources of funding, such as bank loans, crowdfunding, overdrafts, and angel financing, along with their respective benefits and drawbacks. It includes a business plan for DLFCS's expansion and a succession plan for the small business, outlining advantages and disadvantages of such plans. The report concludes with a summary of the findings and recommendations for DLFCS's sustainable growth.

42 – Planning For
Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key
considerations for evaluating
growth opportunities..................................................................................................................3
P2. Explain the Opportunities for growth using Ansoff's growth vector matrix........................5
TASK 2............................................................................................................................................6
P3. Sources of funding with their benefits and drawbacks.........................................................6
TASK 3............................................................................................................................................8
P4. Business plan for growth of business....................................................................................8
TASK 4..........................................................................................................................................11
P5. Succession plan for small business with its advantage and disadvantage..........................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning covers the method through which the company or the organisation a in order to
frame and strategies there business tries to make certain advance future strategies through which
the company can tend to achieve more growth and success(Dimitrakopoulos, 2018). As by
planning the companies tends to make the organisational goals through which all the future
obstacle can be removed. This report will cover the Margaret Millions who owns a SME of
Don’t-Look-Further Catering Services (DLFCS) and there is a plan from her to expand the
business with the supermarket and gain more benefit by providing lunch meals. This report will
analyse all the Porter's generic and Ansoff matrix with various growth areas and the succession
plan there by needed.
TASK 1
P1 Analyse key
considerations for evaluating
growth opportunities.
Planning means the method through which evaluation of all the actions and deciding the
methods through which the company can gain the growth and can attain the objectives as the
Don’t Look Further Catering Services wants to expand the business and maintain the new meal
in the supermarket. As that SME helps out to gain more business opportunities and there will be
made all the expansion for the business.
Porter's generic strategy:
The Porter's generic strategy helps the company in order to get and achieve all there goals
in the market place. As there has been framed that all such market place improvise and provides
the ways as to get a proper rivalry and all the strategies that accounts to business.
 Cost Leadership- Through these services all the products in the market can there by
make the certain target and making there products being sold in the lower price as that
implies all the services can attain more customers by cutting the cost(Battu and et. al.,

2019). As the DLFCS can cover there products in the company and operate there
business by lowering up the price.
 Cost focus- This method is that the company tries to sell there product at the lowest price
possible and there will be framed that all the niche market and the idea of the companies
working should be there in all the areas. The cost focus covers out for DLFCS that they
can increase there customers through lowering up there prices.
 Differentiation- In this the company tends to focus on all the new products and the
methods through which the product can there by be made. As that helps the company to
gain more customers. There has been seen that the DLFCS can make the new products
and with that all methods through which the customers can there be attracted(Lourenço
and et. al., 2020).
 Differentiation focus- The company or the organisation can there by tries and make
various new methods through which the new products can there by be launch in the new
market place. There has been made that DLFCS can introduce the new products in the
new market place.
All Therese strategies helps out to make the benefit and there can be seen that theses
meth ids will help in the growth of the company so by then the DLFCS can use the cost focus
strategy in which all the company and there working can be framed and they can lower there
price in order to gain more customers.
PESTLE Analysis:
In every company not is important that they should analyse all then threats and the areas
which are needed to be considered in the market as the macro environmental factors, thus the
various tools for that are as follows:
 Political- It involves all the government regulations and the policies that are beguine
considered in order to make the business run legally. As DLFCS implies that ball the
nature and the opportunities can be covered by them it will be easy for the company to
frame all the methods in a manner that there can be various regulations and all the
government regulations can be easily covered.
 Economical- The main element in this is that all the company will have to cover the price
and the recession, pricing policies and all the economic position in the area. There has
been made(Walker, 2017). That all the economical growth in the company can there by

helps in the growth of the company. The DLFCS as being the UK based company is well
aware about the economical changes that use to take part and helps out to make high
revenue.
 Social- It involves the nature, taste, norms and the culture of that areas as in order to
promote any product there has been seen that all the companies can tend to check the
nature and the cultural norms of that company. The DLFCS can there by focus on the
residential areas and the market so as to gain the revenue generation.
 Technological- The companies implies that all the innovation and the areas through
which the company can gain more customers as on order to frame all the areas there has
been seen that the new technologies and the updated afresh and production can tend to
make the benefit in the company. As DLFCS can innovate and can come up with some
new ideas that helps them out to gain more customers.
 Legal- This factors covers that all the legal areas and the nature can there by being
framed as in order to make and implement all the laws and the regulations that is to be
followed of that country. There has been seen that DLFCS has made all the essential
areas and the nature through which the companies can increase the working and make the
legal and law being framed in it(Klaassen, 2019).
 Environmental- This covers that all the company should try to follow all the protection
norms for the environment. As DLFCS can attain and make the functioning of there
company without harming the environment.
P2. Explain the Opportunities for growth using Ansoff's growth vector matrix
Ansoff growth matrix implies all the growth bin the company and there growth of all the
areas. Through this models the companies tends to identifies all the areas and the strategies
which helps top make the company to gain more revenue in the market. This method helps to
identifies all the areas through which they can generate the goals and can make the working and
evaluating skills and opportunities in the market. There are mainly various strategies that can be
applies by the company:
 Market Penetration- In this method the company can there by sell the existing product in
the existing market as this helps to generate the production an gain customers. As DLFCS
can there by helps out to make all the meals in and the catering services in the market

they can there by enter in the supermarket with there existing ideas in order to attract
customers.
 Market Development- It covers the strategy in which all the existing products are there
by being sold in the new market this helps the company to enter in the new market. And
can attain the advantages to gain the new market areas. As DLFCS can sell there lunch
meals in all the new market areas which will help them to gain the customers.
 Product development- this strategy used in all the areas where the new product is being
introduced in the existing market the main aim behind this is to change the variety and
catch the attention of the employees and the customers to gain production.
 Diversification- this strategy is the riskiest areas as in this the new product is being
launched in the new market this covers that all the company which wants to experiment
can enter with this idea as there has been seen that DLFCS can attain the new gain by
getting the new products in the new market(Ferm, and Tomaney, 2018).
Through all these strategies the companies can there by take the help of varies strategies
like product development as that will help out DLFCS in order to gain the customers and attract
them by there new ideas and the innovation which is being framed by them. The companies can
attain the growth and can increase the revenue through such methods and make sure that the
production can there by be increased.
TASK 2
P3. Sources of funding with their benefits and drawbacks.
Funding involves all the segregation of the money or the funds that are being used by the
company or the organisation in order to make the success and also the growth in various regions
that are being considered in certain areas. The money that is being arranged in order ton raise the
capital and make a smooth business is merely most important they are mainly of two types:
Internal Sources- It covers all the funds that are being present internally as thus that
means that all the areas and the organisation when maintains the working capital and all the retail
earning as in order to get the funding.
External Sources- These involves all the funds that has been raised by the organisation
from the market or the shareholders that can also be obtained by the crowd funding, leasing,
share capital etc.(Buxton, and Butt, 2018).

The DLFCS in order to enter in the super market for the new lunch meal supply can raise
there funds from various areas they are as follows:
Bank Loan- The funds or the capital can be attained by the company from the bank as
they can there by take the loans from the banks. This is the basic way of taking the funds and are
being given to everyone for the long term and also for the short terms. As DLFCS can get the
funds to start there business on a fixed interest.
 Advantages- all the repayment of the amount is fixed and the duration is also being
termed as according to the requirement of the company. That implies the loans which are
being framed should be fixed and can be easily taken by the banks.(Meck, 2020).
 Disadvantage- These loans are being fixed with according to the security and also the
asset can be ceased on the time of repayment of the debts.
Crowdfunding- It is a method in which all the funds are being raised by the people or
the company as in order by raising funds through social media platforms and also through the
people by getting the funds raised from larger group of people.
 Advantages- This method even helps out to generate the brand awareness through all the
different social media platforms.
 Disadvantage- The company will tend to improvise and generate the interest if the people
through all the pool of money.
Overdraft- This is a method in which the client will thereby get an authority so as in
order to raise money and can take the amount or excess fund in need, this is mainly being done
by exceeding the credit limit.
 Advantages- this is the flexible manner as the person can take the amount that is being
required by them as the withdrawal there by helps out them to gain and utter money in
need.
 Disadvantage- the pay arrangement fee will have to be given to the banks in no order to
make such methods.
Angel Financing- This is a method in which the business operations and other framed
companies there by invest in the company as in order to raise the equity and get certain investors.
All the equity position is being made for the investor in all these methods.
 Advantages- The company can frame knowledge as they will there by contact there
investors and can raise the funds.

 Disadvantage- the share that is been raised by the company will have to be given to the
investors too(Mehrjerdi, 2020).
All these sources can there by helps the company in order to make the new business and
raise funds and that funds can there by be framed by the bank loans as DLFCS can take the bank
loans in order to gain money and raise there business properly.
TASK 3
P4. Business plan for growth of business.
It is the written document which helps to know about the actions and the plans of the
company as in order to know the mission and the vision of the company. The goals and the
objectives of the company can there by be attained as this implies that all the nature and the
recourse in important. The DLFCS covers all the information by analysing and making there
business plan as with the mission, vision its strategical approach and the objectives which are
important. The business plans that are being made helps out to frame all the work and the nature
of the company. All business plans helps out to give an idea to all the members and the
customers about the company and through that the companies tends to frame the financial
decision in the part of the fund raising and all other areas(Achtenhagen and et. al., 2017). The
main reason to make the business plan is to execute it in better way and with that implement and
attract the customers thereby to attain more customers and revenues. The DLFCS which is
planning to frame there business by expanding it in all the supermarket by providing lunch meals
and as than being the catering industry can there by company with all and has certain business
plan for expanding business:
 Vision- The vision of DLFCS is to provide the best catering services and the meals to the
customers, by maintaining the quality of there products.
 Mission- They aim towards there mission is as to provide the extreme rich quality of food
supplies to the customers with all the better growth so as to satisfy the clients
requirement.
 Strategical objectives- the main objective of the business that is being started by DLFCS
is to increase the growth of the company by 20% to 30% in next four years. And make
them to give the all proper quality and enrichment as by maintaining the work and the

services. The DLFCS covers all the requirements by making the SMART objectives like
specific, achievable, measurable, realistic and time bound.
 Financial information- All the business that are being covered as in order to maintain the
funds there has been needed all the activities which helps to raise the funds so as to make
the proper financial activities (Rode, 2018). The organisation implies all the methods in
which they make new roles in setting the funds and allocating them in proper manner.
DLFCS can get the funds from the external and the internal areas.
As for expanding the business all the company need various methods in order to promote,
train advertisement, technological installation and transportation. There has to frame a budget
that will help out to make the company to perform in smoother manner.
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Implementing
technology cost
15000 - -
Promotional expense 9000 8000 6000
Advertisement
expense
6000 5600 5800
Catalogues 2000 4000 3000
Training charges 6500 8000 8500
Total Cost 38500 25600 23300
From this budget the DLFCS can settle there budget as in order to maintain there growth in the
company.
Cash flow statement

The cash flow covers all the company capital that is being required to maintain all the
debt and the liability which is incurred. As the DLFCS will imply all the tax flow as in order to
pay th taxes and that has been mentioned below :
The cash in hand for year 2015, 2016 and 2017 are $102203, $200354, $238503
respectively and average income estimated is $72001 for three years and this will emerge out to
frame all the taxes.
TASK 4
P5. Succession plan for small business with its advantage and disadvantage
The succession plan in all the company covers out the transferring of the main authority
or the power of the company to any other person. As DLFCS covers out the areas in which if

there is uncertainty in the business and there has been made that all the functioning of the
business there by being affected then the company can intend to take the succession or the
merger plan(Edgington, 2019).
 Merger & Acquisition- In merger the companies tries to combine with the other company
of that same size and sector as in order to maintain the competitive advantages in various
market areas. Whereas the acquisition implies when the company tries to sell themselves
to the other company that use to be a larger organisation.
Advantages- It removes the competition in the market place and also provide
development in all the complimentary skills(Penouil, 2019).
Disadvantage- the duplication of work can there by take place as when has been analysed
all the working there by depends on the clarity and there is a stress of duplication.
From all this the merger and succession is there by most helpful for the DLFCS as that
erase the competition in the market and helps in the delivery of the products with its varies
services.
CONCLUSION
It has been summarised from the report that planning plays an important role in all the
company and organisation as it helps them to execute there plan and the growth of the company.
In order to know the growth of the company in the market it is important to check the macro
environmental forces which helps in the growth of the business for that the Ansoff matrix and
that porter generic models help the DLFCS to maintain and formulate there working.
Furthermore, it has been analysed that all such methods and models helps in framing the
effective business strategy and attaining more growth and revenue in the market and among
customers.

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