Ella's Kitchen: Analyzing Growth Opportunities and Strategies

This report provides a comprehensive analysis of Ella's Kitchen's growth strategy. It begins with an introduction to growth planning and emphasizes the importance of effective resource management. The report then delves into the application of Porter's generic strategies and PESTLE analysis to assess growth opportunities, followed by an explanation of the Ansoff Matrix for market analysis. The report also explores potential financing sources for business expansion, including bank loans and crowd funding, along with the evaluation of investment decision-making methods such as payback period and net present value. Furthermore, the report includes a detailed business plan and concludes with an evaluation of exit or succession options for the small business. The report provides insights into market penetration, product development, market development, and diversification strategies.

Planning for growth
TABLE OF CONTENT

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Significant consideration for analysing of growth opportunity........................................3
P2 Explain Ansoff Matrix......................................................................................................6
TASK 2............................................................................................................................................7
P3 Potential source of financing.............................................................................................7
TASK 3..........................................................................................................................................10
P4 Detailed business plan.....................................................................................................10
TASK 4..........................................................................................................................................14
P5 Critical evaluation of exit or succession options for small business and making a decision
of appropriate courses of action...........................................................................................14
CONCLUSION..............................................................................................................................15
REFERNCE...................................................................................................................................16
Books & Journal...................................................................................................................16

INTRODUCTION
Planning for growth is an activity through which the supervisor of business organisation
emphasized on maintaining appropriate plan for development of company. They emphasize on
effective use of resources in given time period. The company is taken in this assignment is Ella’s
kitchen and they offer organic baby and toddler food to its customer for satisfying them. The
company was situated in the year of 2006 by Paul Lindley. Here in there is also an explanation
regarding growth and also for source of fund. In assistance of this the planning is necessary for
increasing growth of company and also they provide explanation in respect of exit options of
small organisation. It is important to assess micro as well as macro environmental factor for
boosting sales. In this assignment the Porter generic strategy as well as Ansoff matrix is used for
growth of business organisation. It also help in making appropriate plan that it helps in boosting
or gaining vision as well as mission of business organisation in given time period (Seo, 2017).
TASK 1
P1 Significant consideration for analysing of growth opportunity
It is responsibility of business organisation to focus on grip opportunity in order to
maintain effective strategy and also executed it. It is important for organisation to analyse micro
as well as macro environmental factor which enforces direct influence on organisation. The
Porter generic strategy in relation to Ella’s kitchen that is given below:
Porter generic strategy it is helpful for company to use effective strategy for gaining
favourable outcomes. They also focus on achieving advantage in relation to reducing or
eliminating price of goods and services. There are different strategy and tactics which is given
below:

Cost leadership: The strategy or tactics is used by organisation for enhancing the market
share and also they emphasize on eliminating the cost of goods for its customer. This is adopted
for boosting sales and also helps in in executing latest technology. It also helps in reducing the
price. Therefore the Ella’s kitchen use this strategy for offering product and services at less cost
for increasing or achieving competitive edge. The primal am of Ella’s kitchen is to use this
tactics for offering products and services at fewer prices.
Differentiation Leadership: It is determined as a tactics that provides specific or innovative
goods as well as services to its customers by introducing various features in relation to
uniqueness in products. It is significant for company to fulfilling the requirement of its user they
also focuses on offering discount free sample for attracting them (MOHAN and PRASAD,
2016).
Focus: Focus strategy is used by business organisation that is based on differentiation as well
as cost. The strategy which is focus on Cost the main purpose is to reducing the cost and

boosting the share of market and the strategy which focuses on differentiation the main aim is to
satisfy its customer. Therefore the primary aim is to offer unique goods as well as services to its
customers at low cost.
On the given strategy it has been assessed that Ella’s kitchen use differentiation tactics for
offering unique goods and services to its user for achieving competitive advantage. It helps in
increasing the cost and overall percentage of level of profit margin.
PESTLE Analysis:
PESTLE analysis is considered as a tool that is used by organisation for analysing various
factors in relation to external environment. It is helpful for increasing understanding in respect of
positive or negative impact of these factors and they adopt this strategy for executing the process
of new business. The PESTLE analysis in respect of Ella’s kitchen is given below:
Political factor: Due to involvement of government it enforces adverse influences on
organisation. There are various kinds of political elements like trade policy, tariff and political
stability which is determined by business organisation for their survival. It is necessary to have a
minimum involvement of government on small organisation that is helpful for overall
enhancement of organisation. The Brexit enforces negative influences on inflow of cash within
company. It enforces negative impact on present level of sales of Ella’s kitchen.
Economic factor: Economic factor is very essential for increasing level of profit and also
focuses on reducing negative situation of economy. There are different economic factor like
exchange rate, interest rate and employment and so on. The Ella’s kitchen focuses on providing
different discount in order to provide organic and toddler food to its customers that increases its
sales. Due to increase in the level of taxes it affects the sales of the company and it downwards
the turnover during the particular phase of time period.
Social factor: Social factor includes various elements such as lifestyle, tastes as well as
preferences of user. The organisation emphasize on boosting the sales by providing innovative
product to its customer. It also helps in boosting the standard of living of the person living in
society. Due to frequent change in the taste and preferences of customer the firm can't alter their
policy as well as procedure in order to cope with the altered need or wants of user (Alexahina,
2020).
Technological factor: Here in the organisation emphasized on executing advanced
technology for providing new product and services to its user which is helpful for business

organisation. The price of implementing latest technology is relatively high that and it enforces
adverse influences on business organisation.
Environmental factor: The Ella’s kitchen emphasized on offering good environment to its
user for fulfilling their needs. It boosting the profit and sales for production of the goods there is
a boost in level of pollution it reduces the Goodwill of company in front of user that enforces
adverse influence on the company.
Legal factor: Legal factor includes regulation, laws as a legislation that must be obeyed by
organisation for boosting profit. Due to change in rules and regulation it is difficult for
organisation to cope up with the alteration that enforces adverse influences on organisation.
P2 Explain Ansoff Matrix
Ansoff matrix is used by business organisation for analysing the tactics for marketing of
business organisation. The growth and development of company is depending on selling of
innovative and unique good to its customer in new Market (Gater-Smith, 2018). Therefore the
higher authority of Ella’s kitchen and adopt this strategy that is given below:

Market Penetration: Market penetration emphasized on selling of goods and services in
given market. Their main purpose is to attract large number of user by offering them goods and
services at fewer prices. In context of Ella’s kitchen they offer discount, free sample as well as
other benefits to its customer in relation to organic food and toddler food for increasing or
boosting the share of market and eliminating risk. The Primal aim of this organisation is to sell
the present product as well services to its user at relatively low cost for attracting them during the
particular phase of time period (Hamel and Leipold, 2017).
Product development it clarify the changes in the current product as well as services for
fulfilling the requirement of customer. Due to change in the requirement of user in frequent
manner it is very significance for organisation to use innovative Strategies for launching
innovating Product at market place. Here the supervisor of the company emphasized on
improving new product as well as services by providing innovative product to its user for
attracting them.
Market development the primary aim of organisation is to sell the current product in
new market place. Thus, the Ella’s kitchen focuses on offering innovative products and services
for attracting ample of user at marketplace. Here in the organisation focuses on providing
organic or toddler food to its customer in New Market. It helps in increasing higher level of
profit during the particular time period.
Diversification The organisation emphasized on boosting the sales and expanding market
by providing new goods in innovative market. Here in the risk rate is very high but increases
profit margin in future period of time. In context of Ella’s kitchen they focuses on bring
innovative ideas in order to introduce innovative product at new market place. For instance, the
Ella’s kitchen emphasised on offering new product as well as services to its customer. They
introduce cereals oats for children that is attracting ample of user at innovative market.
On the basis of above given tactics is it has been assessed that Ella’s kitchen emphasized
on using this strategy for offering new goods and services at new market place to its user for
fulfilling their requirement of its user.
TASK 2
P3 Potential source of financing
Investment decision-making

The manager or supervisor emphasized on building appropriate budget for investment in
company in order to keep opportunity and achieve advantage against rivalries therefore the
higher authority focuses on building appropriate strategy for growth of business organisation that
is completely based on providing goods as well as services as per the needs of the customer.
Methods of financial appraisal
This is adopted by company for providing value to money as well as various method or
ways which is used by Ella’s kitchen for taking good decision in respect of investment which is
mentioned below:
Payback period it is considered as a process through which organisation emphasizes on
recover their cost of investment. In context of Ella’s kitchen the payback period is adopted by
company in respect of particular project for recover the cost of investing money that is
considered in years and months
Net present value it is the subtraction among present value of cash outflow from present
value of cash inflow by determining the time interval. In context of Ella’s kitchen the higher
authority emphasized on analysing the required data or information, business values as well as
bringing new ideas that must be connected to the outflow and inflow of cash.
Source of finance for growth and development of business organisation they need finance
for executing transaction of organisation for increasing profit margin (Hanley, Shogren and
White, 2019). In context of Ella’s kitchen the organisation focuses on tackling various activities
in appropriate manner for fulfil the needs and wants of customer in the company. There are
different kinds of source of fund which is going to be given below:
Bank loan is a basic source of finance in which the company take loan from bank on the
basis of security. It is considered as a contract between the banks and Company here in they give
the entire amount taken from bank with rate of interest. Thus, the organisation taking amount of
loan from where is financial institution or Bank that help in boosting its sales and also repaid the
amount to bank with interest rate within targeted time period.
ADVANTAGES DISADVANTAGES
Bank loan helps the business organisation for
fulfilling the need of finance for further growth
The main purpose of using this method is it
imposes higher rate of interest that must be

of business organisation. repaid by Organisation in a specified period of
time.
Crowd Funding: Here in the main target of company to take the finance or fund from
larger Institution for transactions of company.
ADVANTAGES DISADVANTAGES
The main benefit of using this crowd funding
by Ella’s kitchen is to increase the success and
growth of Organisation in upcoming time
period.
The drawbacks for Ella’s kitchen is that they
require large amount of money and efforts for
running their Organisation in good way.
Evaluate potential sources of funding:
On the basis of above given source of financing the bank loan is determined as a good
source of finance in which the company focuses on taking loan from bank and also they return
the principal amount along with the rate of interest in stipulated period of time (Bengtsson,
Barakat and Muttarak, 2018).

TASK 3
P4 Detailed business plan
Business plan is determined as a manuscript that is used by organisation for
accomplishing the objective in stipulated time period. It is used for accomplishing goal in order
to finish the different project of fund that is important for managing the finance or fund of
different strategy that is analysed by using business plan of organisation.
Executive summary: Ella’s Kitchen emphasized on offering different type of product
and services to its user for fulfilling their requirement and also they emphasized on boosting the
company by launching new product named as Cereal oats that is good for customer. For fulfilling
the altering need of customer it is important for organisation to offer new or innovative goods to
its users such as cereal oats which is produced by the company for attracting the customer at
market place. It is necessary for organisation to provide innovative product to is customer for
satisfy them it help in increasing sales as well as profit margin during the particular phase of time
period. In addition to this it is necessary for critical or organisation to introduce innovative
product for its user. The Ella’s kitchen introduce cereal oats for its customer it is useful for
babies that attract customers during the period of time.
Vision & mission: The vision of company is to implement its business across the world.
The mission of the company is to offer quality product as well as services to its user in order to
fulfilling their needs (Straus, 2018).
Goals: The primary aim of business organisation is to increase its turnover by 40% in
upcoming 6 months. It also assists in boosting its market share by 20% in order to promote the
strategy and tactics for promotion or enhancement of customer at marketplace.
Objective: The primary aim of business organisation is to increase its turnover by 40% in
upcoming 6 months. It also assists in boosting its market share by 20% in order to promote the
strategy and tactics for promotion or enhancement of customer at marketplace.
Employees: The organisation emphasized on boosting knowledge as well as skill of
subordinate and also focuses on grip opportunity. It is necessary for organisation to provide
appropriate training to it subordinate for boosting level of productivity.

Shareholders: The shareholder is considered as a person who invests large part of fund
within organisation for increasing satisfaction level and also it help in a completion of higher
profit margin.
Customers: Customer is very essential for company in reference of Ella’s kitchen they also
offer innovative product named as Cereal Oats or organic food or toddler food for small babies
for achieving competitive advantage over rivalries. It also helps them in boosting the satisfaction
of its customer in pre- decided time period.
STP analysis:
Segmentation: In this strategy the whole market is divided in various segments with
similar features. Therefore the Ella’s kitchen focuses on segmenting the market as per the
income, age, population and perception of society that must be determined for segmenting the
market in two different regions it help in increasing or boosting sales or profit margin during the
particular phase of time period.
Targeting: After segmenting the market it is necessary for business organisation to targets is
user for boosting sales. The main or primary aim of company is to target user or increasing
reputation of Organisation in mind set of user at Marketplace. It assists in increasing sales as
well as profit margin in future time period.
Positioning: In reference of Ella’s kitchen it is necessary to make necessary efforts for
boosting brand image as well as reputation of company and also it help in attracting ample of
user in market. It is necessary to position the brand of product and services in mind set of user.
Marketing Mix: marketing mix is determined as a Framework which is used for taking good
decision in respect of product, price, place and promotion in reference of Ella’s kitchen the
company focuses on providing unique goods and services to its customer for fulfilling their
needs. Price it is important to offer the product as well as services that is unique for innovative
and easily available in outlets that are convenient for its user. Price they focus on providing
unique as well as specific product and services for achieving competitive advantage.
Promotional strategy is used by Ella’s kitchen such as publicity, personal selling in order to
increase the Awareness of customer regarding the baby food (Race, 2019).
Financial Projection: For every company it is necessary to assess the requirement of
finance for providing innovative product as well as services. It is important to maintain effective
budget for executing new services for its user and also it help in carry out different functions or

element in company. The strategy which is used for enhancement of product as well as services
require large Finance by a Ella’s kitchen for executing the function in improved way therefore
the cash flow requirement that is going to be mentioned below: