Global Growth Opportunities and Implications for Marshfield Bakery

This report examines the global growth opportunities for Marshfield Bakery, a UK-based bakery company. It begins with an introduction to globalization's impact on business and provides background information on Marshfield Bakery's operations and challenges within the UK market. The report then delves into a detailed analysis of the challenges the company faces, including a PESTLE analysis of political, economic, social, technological, environmental, and legal factors, as well as a Porter's Five Forces analysis to assess competitive dynamics. Following the analysis of challenges, the report explores global growth opportunities, employing the Ansoff matrix to identify potential expansion strategies. The report concludes with a discussion of the implications of these growth strategies and offers recommendations for Marshfield Bakery's international expansion. The report aims to provide the Operations Director with a comprehensive understanding of the global market, challenges, and opportunities available for Marshfield Bakery.

Running head: GLOBAL GROWTH OPPORTUNITIES
GLOBAL GROWTH OPPORTUNITIES
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1GLOBAL GROWTH OPPORTUNITIES
Table of Contents
1. Introduction..................................................................................................................................2
2. Background of the organization...................................................................................................2
3. Challenges faced by the organization..........................................................................................3
3.1 PESTLE Analysis..................................................................................................................3
3.2 Porter’s five force analysis....................................................................................................8
4. Global growth opportunities and its implications......................................................................12
4.1 Ansoff matrix.......................................................................................................................12
5. Implications...............................................................................................................................14
6. Conclusion.................................................................................................................................15
References......................................................................................................................................16

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1. Introduction
Globalization has brought about significant changes in the business environment while
inducing different strategic modifications in the organizations. The key alterations that are
planned by the organizations are reliant on the needs of the venture in gaining a competitive
vantage point over the existing market players. In this relation, the report will take the initiative
of identifying the major challenges that are being faced by Marshfield Bakery, a UK based
bakery firm, while conducting their operations in the existing markets. On the other hand, the
report will also enlist the global growth opportunities that are being faced by the organization
and the implications of the growth procedure that is being planned by the venture in the context
of globalization.
2. Background of the organization
Marshfield Bakery Limited is an UK based bakery company that was established in the
year 2005 and is located in Wiltshire Dyrham (Beta.companieshouse.gov.uk 2020). The major
propositions that is made by the organization aims at providing the customers with a variety of
cakes and pastry items along with rusks and biscuits (Beta.companieshouse.gov.uk 2020). The
different range of propositions that are made by the venture enabled the same in improving their
performance while operating the UK markets. The organization developed an e- commerce
presence over the years with the purpose of influencing the rate of sales volume while operating
in the local and regional levels (Beta.companieshouse.gov.uk 2020). The continuous
modifications in the line of propositions that are made by the organization allowed the same in
improving the accessibility of the propositions to the customers. However, the concerned
organization has been facing specific issues while operating in the UK markets which has
incapacitated the same in improving their performance. Therefore, the upcoming sections would

3GLOBAL GROWTH OPPORTUNITIES
analyze the specific issues that are being faced by the organization while operating in the UK
markets and the different growth opportunities that might be considered by the same for
empowering their sustenance in the markets.
3. Challenges faced by the organization
3.1 PESTLE Analysis
Political  The stability of the political scenario in UK would allow the
growth of the business while operating in the different regional
markets (Wright et al. 2017). The stable political relation and
absence of adequate Government intervention in the
organizational operations would allow the concerned
organization in maintaining the effectiveness of the business
operations in accordance with the needs of the organizational
growth.
 The stable relation between the US and UK governments and
trade agreements between the same would empower the
growth of the organization with increased scope of expansion
(Umfreville et al. 2018). It has been noted that the trade
agreements that are being planned between the two nations,
post the effect of Brexit would be beneficial for the growth and
expansion of the UK based organizations.
 The minimization of trade barriers and taxation policies by the
government would allow the UK based businesses in making
expansions. The business expansions in UK would allow the

4GLOBAL GROWTH OPPORTUNITIES
organization in improving their scope of operations as per the
sustainability measures.
 However, Brexit and its uncertainty posed a significant amount
of risk towards the operations that are being planned by the
UK based organizations (Umfreville et al. 2018). The risk of
unfavorable outcome from the Brexit and loss of the European
market for expansion would affect the capability of the UK
based organizations in empowering the growth and expansion
of the business.
Economic  The increasing trend of GDP in UK has reflected an increase
in the productivity of the organizations in the nation. It has
been noted that the UK’s GDP would experience a hike from
1.24% in 2019 to 1.45% in 2020 (Bean 2016). The increasing
trend of GDP indicates the growth of the economic stability in
the markets. However, it has been noted that the UK markets
have been experiencing an economic slowdown by the final
quarters of fiscal year 2019, which might create a challenge for
the organizations in confidently investing on their
organizations (Bean 2016). The growth trend of GDP and
lower inflation rates in the economy would encourage the
organizations in increasing the rate of investments.
 According to the World Economic Forum report in 2019 the
UK economy ranked 7th in financial system development

5GLOBAL GROWTH OPPORTUNITIES
(Weforum.org 2019). The improvements in the financial
system would allow the organizations in improving their rate
of transaction in the economy while providing the same with a
sustainable edge while operating in the UK markets. However,
Crafts (2017) reflected in a research that the uncertainty of the
Brexit imposition in the economy might discourage the rate of
investments that might be made by the organizations in the UK
markets.
 The UK government has taken the initiative of encouraging the
foreign firms in making direct investments in the economy
which would act as a crucial element of growth of the
organizations in the markets (Asgharian et al. 2016).
Social  The customer spending factor is an important measure that is
being considered by the businesses while developing strategies
in accordance with the demand of the clients (Mavor, Platow
and Bizumic 2017). It has been observed that the employment
rate in the economy is growing and was 76.30% in the year
2019 (Cheshire, Hall and Adger 2017). The increased rate of
employment would allow the organizations in sourcing
prospective customers. The increased rate of employability
among the people in UK also influenced the maximized rate of
disposable income. The elevation of the disposable income
would allow the organizations in widening their scope of

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market share through attracting the attention of the prospective
and potential customers.
 The increased rate of education among the communities in UK
holds a major prospect for the growth of the organization in
the markets (Hobbs 2016). It has been observed from a report
of the World Economic Forum that UK ranks 11th in terms of
education among the nations in the world (Weforum.org
2019). The increased rate of education would allow the
organization in sourcing skilled and experienced employees
for supporting their entire work process.
Technological  The technological innovations that are made by the nation
supports in the growth of the organizations within and without
the borders of the economy. It has been observed that the
average number of internet users in UK was 54.2 million on a
monthly basis in the year 2016 which is forecasted to grow to
56.7 million monthly users by the year 2021 (Gagliardi 2019).
The rate of internet penetration is forecasted to grow from
90.64% to 94.85% within 2021 (Taylor Buck and While
2017). The growth in the internet penetration and the higher
affordability of the users to use broadband services would
support the organizations in widening their scope of
promotions.
 UK ranked 11th in terms of infrastructural developments and 7th

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in terms of financial systems development, as per the reports
of the World Economic Forum in 2019 (Weforum.org 2019).
The infrastructural growth along with transportation
efficiencies would allow the organizations in increasing their
effectiveness of the manufacturing as well as the supply chain
operations. However, it has been noted that ICT is still in its
developmental stage and ranks 31st globally, much below the
OECD standards (Weforum.org 2019). It might affect the
capability of the businesses in making enormous growth
strategies in accordance with the strategic needs of the venture.
Environmental  The imposition of Environment Protection Act and other
environment friendly legislations in UK have contributed
significantly to the different changes in the organizational
operations (Tudor et al. 2017). The clarity of expression and
requirements that the organizations are expected to follow acts
as guidelines while improving the design of the operations in
adherence to the environmental concerns (Reid 2016).
Legal  The UK government imposed different corporate legislation
and consumer protection related regulations with the
requirements of controlling the different activities and
reducing the criminal activities in UK (du Plessis and Low
2017). The imposition of different legislative requirements on
the organizational operations would allow the concerned

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organization in increasing the feasibility of the operations in
the UK markets (Coetzee and Erasmus 2019).
3.2 Porter’s five force analysis
Competitive rivalry
(Strong force)
 The concerned organization encounters an
intense competition in the UK due to the
technological developments that are made by
the existing market players. It has been
observed that there are various competing firms
like Bakers Oven, Beigel Bake, Brace's Bakery,
British Bakeries, Chelsea Bun House and
Connoisseur's Bakery that have significant
market share in the UK’s bakery markets (Witt
2019).
 The increased rate of technological reforms that
are made by the organizations might affect the
capability of the concerned organization in
gaining a competitive edge while maximizing
the scope of customer base (Coulibaly, Erbao
and Mekongcho 2018). Most of the competing
firms have taken the initiative of integrating
with different social media platforms and e-
commerce platforms for driving online sales of

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their bakery propositions. Therefore, the
competitive rivalry acts as a strong force for
incapacitating the concerned organization while
operating in the UK markets.
Bargaining power of the buyers
(Strong force)
 The bargaining power of the buyers in UK are
influenced by the quality of the propositions
that are proposed by the organizations. The
wider availability of alternatives through
intense market competition among the existing
organizations have influenced the bargaining
power of the customers in UK (Berglöf and
Cable 2018). The lower switching costs
between the organizations have again
contributed to the growth of the bargaining
power of the buyers which affected the
capability of the businesses in retaining the
commitment of the clients.
 The increased differentiation of the offerings
that are made by the existing competitors in the
UK market would also empower the growth of
the bargaining power of the UK based
customers. Therefore, the bargaining power of
the UK customers are high and is a strong force

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affecting the business decisions and design of
the propositions.
Bargaining power of the suppliers
(Weak force)
 The availability of huge quantity of suppliers,
supplying similar propositions to the
businesses, has reduced the bargaining power of
the same while enabling the business in holding
negotiations (Kopnina and Blewitt 2018).
Increased scope of holding negotiation with the
suppliers would allow the organization in
minimizing the costs of buying raw materials
from the suppliers. On the other hand, the
availability of huge number of suppliers and the
wider availability of the similar propositions
empowered the businesses in switching
between the suppliers with lower costs involved
in the switching activities. Therefore, the
bargaining power of the suppliers are lower in
the UK markets.
Threat of new entrants
(Strong force)
 The lower investments that are undertaken in
the bakery business might attract the attention
of the new entrants in the UK markets. The
lower rate of investments and the favorable
direct investment policies of the UK

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government might result to increased threat of
new entrants in the bakery sector of the UK
markets. The increased threat of new entrants in
the UK markets would increase the intensity of
competition in the markets (Martynova et al.
2019). Therefore, the new entrants act as a
strong force while imposing a greater threat to
the operations undertaken by the existing
business in the bakery sector of UK.
Threat of substitutes
(Moderate force)
 The increasing threat of the substitutes in the
UK markets are reflected through the increased
effectiveness of the business processes while
operating in the different markets. It has been
noted that the customers have taken the
initiative of producing fresh breads and cakes in
their homes which might restrict the capability
of the organizations in making expansion of
their target market. On the other hand, it has
been found that large number of firms have
taken the initiative of developing substitute
propositions in much lower cost which might
affect the rate of operations of the venture while
operating in the UK markets. However, it has