Strategic Growth Planning and Funding Analysis for Hook Norton Brewery

This report provides a comprehensive analysis of growth strategies and funding options for Hook Norton Brewery. It begins by examining key considerations for evaluating growth opportunities, including market analysis, turnover, and profitability, along with a PESTEL analysis. The report then evaluates growth opportunities using the Ansoff Matrix, exploring market penetration, market development, product development, and diversification strategies. Furthermore, it delves into various sources of funding available to companies, discussing their advantages and disadvantages. The report also includes a business plan for growth, incorporating financial information and strategic objectives, and concludes with a discussion of exit and succession options for small businesses. The analysis provides a detailed strategic framework for Hook Norton Brewery's future expansion and financial planning.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key consideration for evaluating growth opportunities...........................................3
P2 Evaluate the opportunities for growth by applying Ansoff's growth vector matrix..............5
M1....................................................................................................................................................7
D1.....................................................................................................................................................7
TASK 2............................................................................................................................................7
P3 Sources of funding available for companies with its advantages and disadvantages............7
M2..................................................................................................................................................10
D2...................................................................................................................................................10
TASK 3..........................................................................................................................................10
P4 Business plan for growth that include financial information and strategic objectives........10
M3..................................................................................................................................................11
D3...................................................................................................................................................12
TASK 4..........................................................................................................................................12
P5 Exit and succession option for small business.....................................................................12
M4..................................................................................................................................................13
D4...................................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning is crucial for every organisation as they this facilitate proper growth and
achievement of company's objective. Superiors of enterprise plan their present as well as future
activities and ensure that every employee is performing according to the plan. Organisation
develop numerous plans which they find will be suitable for their company and after formulating
those plans, they scrutinise best out of those and implement within enterprise. Their main aim
while planning is to gain maximum profits and achieve desired success. By considering this, they
plan out their business operations (Burns, 2010). Planning also help in reducing possible threats
and challenges which can occur. Hook Norton Brewery is a brewery store situated in Hook
Norton, United Kingdom. It is a family owned business and was founded in 1849. this
assignment will focus on key considerations for evaluating growth opportunities and their
justification with relation to organisational context. Different sources of funding available to
business with their benefits and weakness of each source is given in this project. In addition to
that, a business plan for growth by including financial information and strategic objectives and
different exit or succession options for small business is also given.
TASK 1
P1 Analyse key consideration for evaluating growth opportunities
The term growth can be described as that process which help to increase in desired
context such as improving profitability of company is facilitating to attaining growth as well. It is
necessary to observe and analyse thoroughly about several factors that impacts on operational
activities of an organisation properly (Burton, 2010). This will facilitate to carrying out required
tasks or procedures in an accurate way to gain better outcomes. It is also observed that trends of
market are changed in certain period of time which facilitate several opportunities as well as
risks. Hook Norton Brewery have to focus on these beneficial chances to grab them at correct
time to attain better profits and take an accurate actions for reducing negative impacts of threats
as well. In context of Hook Norton Brewery, they have to focus on some factors which are given
below:
Target market: - This can be described as that part of market which includes potential
customers who are responsible for major profit of particular company. It basically involves
regular consumer which purchase goods of same brand continuously. It is mandatory to focus on

actual needs and demands of target customers and put efforts in correct direction to manufacture
an appropriate goods to fulfil desired of people. Hook Norton Brewery have to consider this
aspect and then conduct an effective strategies which helps to fulfil desires of people along with
achieving their satisfaction.
Turnover: - The term turnover refers to an important factors that ensure about growth of
an organisation as well as efficiency to bear loss (Brinckmann, Grichnik and Kapsa, 2010). It is
necessary to calculate overall turnover in proper way to carrying out required tasks or procedures
in proper way to gain desired outcomes.
Profitability: - This can be described that efficiency of company to earn maximum profit
approximately. It is an important aspect on which every firm is conducting several activities or
processes in more effective as well as efficient manner to generate better profits properly.
Porter's generic strategies
Cost leadership: - This can be explained about to make an appropriate strategy for tasks
or production to manufacture desired products at low cots and provide required quality as well. It
is necessary to render better featured goods to people at reasonable price so that it will be easy
affordable for them. Hook Norton Brewery have to focus of cost of manufacturing and try to
provide services at low price.
Differentiation: - The term differentiation means to to make products of own brand than
other companies through maintaining uniqueness of them. It will help to prepare an image of
specific product separated in minds of customers that attracts people.
Focus: - This factors includes two sections like cost- focus that seeks for cost advantage
in company's target segment and differentiation- focus which means to make brand image
different from other firms.
PESTEL Analysis
Political: - This can be described as political parties that has several policies which are
necessary to be considered by different firms which running in particular place properly. Hook
Norton Brewery can earn better growth of business due to stable political conditions.
Economical: - The economic factors such as tax rates, growth, currency, inflation are all
responsible for reducing profitability of company when these elements get fluctuates then they
directly impacts on business negative manner (Bryson, 2011). Hook Norton Brewery have to
carefully focus on economic condition before expanding business in another area.

Social: - This can be explained about different cultures, values, religions and rituals that
are followed by people living in a country also impacts on sales of product. These cultural
factors impacts on taste, preferences and style of people according to which goods should be
manufactured in Hook Norton Brewery to attain satisfaction of them.
Technological: - The technological trends includes innovative techniques or software that
helps to conduct different procedures in correct manner to generate better outcomes. Advanced
technology help to attain growth in business through boosting up regular productivity as well as
profitability of Hook Norton Brewery.
Legal: - There are various kinds of legal rules or norms that are made by government
authorities and they are really essential to be followed by every organisation. This will facilitate
to companies to conduct their business by avoiding wrong pathways to earn desired profits
(Duany and et. al., 2011). Hook Norton Brewery have to follow legislation to carrying out
business successfully and attain growth in an appropriate manner.
Environmental: - This can be defined as to focus on environmental issues which are
generated by operational activities of organisations. It is necessary to put required steps to save
natural environment. It will help to complete corporate social responsibility and improve image
of Hook Norton Brewery in front of customer as well as government.
P2 Evaluate the opportunities for growth by applying Ansoff's growth vector matrix
Hook Norton Brewery is an organization which is located at oxfordshire, England by
having minimum employees. But at same time, business is having great oppurtunity of
expanding their business by maximization of consumer demand. business is owned by a family
which use handicrafted brewing heritage technique with modern approach for providing best
drink to drinkers. Main objective of this organization is to offer qualiattive beer with oustanding
services to their desired consumers in order to gain sociteal trust or loyalty. In this modern world
number of Beer manufacturer are emerging at marketplace for grabbing maximum opportunities.
As a result, small business can eaisly enhance their position by follwing modern things. At
present they have 36 pubs where they offer best drink and food to communities. Thus, an
organization need to implement some major models and approaches for developing overall
entertprise in a defined time frame (Durand and et. al., 2011). For example; Ansoff Matrix,
PESTLE, SWOT, Porter five force model and so on. Therfore, proper description of model
which is used by company for acquring various success opportunities are discussed as follows-

Ansoff matrix
Ansoff matrix was primarily developed by Russian American Igor Ansoff. It provides
help to top level managers to attain growth of business in future. It can be considered as
product/market expansion grid, which display about four strategies which are required to grow.
Every time when enterprise or company move from one quadrant to another then risk increases
whether movement is upward or downward.
Market penetration – This can be described as lower left quadrant which is more safe
among rest of all. It is helpful to expand sales with existing product and services within existing
market. Hence, it includes four ways to achieve objectives such as by increasing market share of
current goods with help of advertising, sales promotion, competitive pricing strategies and
personal selling; through increase usage of existing product; by restructure a mature market
along with making tough competition for rival and dominating existing product market
(Moseley, 2013). In this part, it requires more investment on research to gain better information
to make correct decision. Hook Norton Brewery have to put efforts to expand sale through
promotional techniques in existing market with same product. Thus, they can fulfill actual needs
of consumers properly along with achieving satisfaction.
Market Development – The term market development can be considered as an upper left
quadrant, in which existing product and services introduced in entirely new market. Company
can done this activity through applying any techniques such as change packaging or adding new
product dimensions, by new country or new geographical area, new distribution channel (like-e
commerce, mail), different pricing policies to attract new customers in existing market. It is more
risky than market penetration, due to making an entry in new market. Hook Norton Brewery can
enter in fresh area with their own product by adding some additional features to attract people of
different marketplace. At time of entering, they should be very careful to choose an appropriate
geographical- area as it include certain risks.
Product Development – This can be explained as lower right quadrant which is slightly
risky in case of new goods and services which are going to be launch in existing market. It
includes those businesses who tries to develop fresh product in present market trends. Hook
Norton Brewery needed to modify goods and then launch to existing situation of fashion in
current marketplace. This strategy is useful for companies that need differentiation to compete
and survival (Schetke, Haase and Kötter, 2012). Prepared techniques or policies should be build

by innovative concepts and as per taste or preferences of customers to attain desired productivity
as well as profitability in successful manner. If Hook Norton Brewery want to remain strong
competitor for long time in market then they have to make different product from existing one by
adding attractive features.
Diversification – This factors is an uppermost right quadrant which is more risky then
rest of other four elements while entering with new product in entirely fresh market. Having less
experience in this field and launching new geographical area is major reason to face several risks
and uncertainties. It is necessary for any firm to thoroughly analyze about certain risks and
opportunities while they diversify their business. Maintaining desired balance between risk and
reward may render benefit for a long run. Hook Norton brewery can enhance business with new
product and service in new market by understanding actual situation of market.
M1
Planning is crucial in order to achieve growth for the company. Managers can plan out
their activities in order to achieve success in future. In small business, planning can be done by
implementing different tools like Porter Generic strategy, BCG Matrix, etc. With these
frameworks, company can easily achieve growth and gain competitive advantage over others.
D1
According to (Chapin, 2012), it is not easy to plan future activities as it may change due
according to situations. For this, managers have to prepare themselves before any circumstances
which can pose negative impact and hinder the growth of company. In order to maintain this,
company can plan different strategies for growth, if one fails, others are available as options.
TASK 2
P3 Sources of funding available for companies with its advantages and disadvantages
Every small company requires funds to carry out activities and achieve growth, for that
they can use different sources. There are different types of sources of fund like equity, debt,
working capitle loan, term loan, letter of credit, retained earnings, venture capital etc.
On the Basis of Time and Period :- There are diffrent type of sources of fund like long,
mideum and short term fund which help byusiness to implement their business activities.

Long term:- This type of sources assist business for long duration or more than 5 years.
There are various types of long term sources like equity share, debenture, long term borrowing
etc. Company take these funds in order to purchase equipments, machinery, etc.
Medium term: These funds are required for a duration of more than one year but is less
than five year (Chen and et. al., 2014). These loans can be taken from commercial banks, lease
financing and loans from financial institutions, etc.
Short term: These funds are required for less than one year. Examples of these sources
are trade credits, loans from commercial banks, etc.
Hook Norton Brewery Company uses above mentioned sources on different times
according to their needs and requirements. Following are advantages and disadvantages of
sources of funds:
Equity share :- These shares are owned by owner or holder of the company. They can
invest their cash in different business activities and can also expand their business.
Advantage: It create no obligation on the owner to pay fixed rate of dividend. These share can be
used by company without any charge on business assets.
Disadvantage: If company uses equity share only, then they can not take advantage of trading
on equity. Some equity shareholders can also put obstacles for management by manipulation.
Loan from financial institution :- Company can take long tern as well as short and
medium term loans from financial institution for implementing different projects. These
financials institutions mainly consists of different banks.
Advantage: Company can take any type of financial assistance from banks according to their
needs and requirements.
Disadvantage: Major disadvantage is that, bank may charge high interest rates on short, medium
and long term goals. It become difficult for small business to pay the interest of loans.
Crowdfunding: If Hook Norton Brewery have strong networks, then they can take
financial help form them. In this, small amounts are raised by different large number of
customers by using internet, typically (Eddleston and et. al., 2013). As this does not involve any
debt, repayment, company can opt to finance their project and business activities.

Advantage:
 This is an effective and fastest way to collect cash from different people.
 By sharing idea of project, they can even get feedback and suggestions from experts and
professionals.
 It is the best way to know about the reaction of public towards their project or business. Investors can track your progress and this will help in promotion of the brand through
their networks.
Disadvantage:
 If company don't meets their funding targets, any finance that has been collected will be
returned to investors and company will receive nothing in return.
 If company does not protect their business idea with trademark, patents, etc. somebody
can see their idea at the time of crowdfunding and can steal their idea.
Peer to peer lending: In this, one person lends or borrow money without the use of any
financial institutions as an intermediary. It basically removes the middlemen from between.
Advantage:
 Individual can get high returns.
 Initial investment is low.
 In this lenders can diversify their investments in different areas like business loans, home
loans, personal loans, SME loans, etc.
 Lenders can set their limit of lending money through P2P. They can withdraw their
money whenever they want.
Disadvantage:
 There is no law related to peer to peer lending. If any default occurs, then they cannot
claim.
 There is no guarantee that the fund will be transferred into the account of borrower.
Above are some sources of fund that can be opted by company. These sources can help
them to collect money and they can easily implement their business activities and other
operations. They can also execute their innovations and can cope up with the competition.

M2
There are different sources of funding that can be used by company in order to take
financial assistance from banks and investors. This will catalyse their growth planning and
company will achieve desired growth fast.
D2
According to (MacLeod, 2013), managers should identify potential sources which will be
beneficial for company as well as for the institution which is providing funds. They can analyse
best sources according to company's need and requirements and take necessary assistance.
TASK 3
P4 Business plan for growth that include financial information and strategic objectives
The different kinds of organisations have their own concept or idea of business and
according to that they prepare more effective as well as efficient strategies. It is necessary to
make an appropriate policies or techniques that provide support to carrying out various types of
required tasks or procedures to generate better outcomes on regular basis. It is essential to collect
important information to make an accurate strategies that helps to achieve desired aims and
objectives of an enterprise properly. Hook Norton Brewery have top build an effective plan of
action to run their business along with more appropriate methods or tools which support to attain
goals or targets of company in proper manner by creating better profits as well.
Business plan refers to an appropriate formal statement of goals or objectives of any
company including certain purposes that are achievable and effective planning which render help
to gain desired targets properly (Fainstein and DeFilippis, 2015). It is mandatory for every
business concern to put efforts in sufficient amount in correct direction to complete daily target
of productivity in an accurate way. Preparation of business plan also includes some of
background information and other records which helps to build an effective as well as efficient
plan of action to conduct business successfully. Hook Norton Brewery have to make an
appropriate planning to carrying out several activities or processes to gain desired outputs
properly.
Vision: - The vision statement of Hook Norton Brewery is provide an appropriate
products or services to desired customers as per their actual needs and demands to achieve their
satisfaction to ensure more profitability for long term.

Mission: - The mission of Hook Norton Brewery is to implement innovative or creative
techniques or features to product for completing desires of people in correct way as per changing
trends of market and fulfil their expectations.
Now, business plan should be created in an accurate manner for any organisation to
conduct different businesses so that required goals or objectives can be complete properly
(Deakin, 2013). It will also facilitate to attain better growth of business along with success of
company as well. A business plan for Hook Norton Brewery is necessary to be prepare which is
as follows:
 The purpose to conduct more effective marketing activities should be clear to fulfil
desired goals properly.
 It is necessary to thoroughly analyse plan of action for marketing by making an
appropriate policies.
 It includes to make effective techniques to conduct several operational procedures to gain
better profits.
 Actual information about funds is necessary and make budget for carrying out business
properly.
The current business plan to investor
 Firstly, it is necessary to present whole plan of business amongst investors.
 Secondly, it includes to build presentation that helps to develop several techniques which
are suitable for companies.
 Thirdly, it involves the criteria of calculate funds that is required to run an enterprise
properly.
 Finally, managers prepare better proposal to convince top levelled management in formal
meetings.
M3
By preparing a well structured business plan by including each and every necessary
details such as financial requirements, objectives and goals of activity, assignment of job
responsibilities, etc. will help company to achieve its objectives in effective manner. Every
employees should strictly operate according to the business plan.

D3
Company should pay attention while formulating their business plan and include every
detail that will be required in the future. It should cover all aspects which can help employees to
reach to set targets and achieve in effective manner. So, they should be careful and include
relevant steps in order to accomplish goals.
TASK 4
P5 Exit and succession option for small business
Exit provide company with options to dissolve or liquidate their company. This is done
when company is not able to perform their business operations properly and is loosing market
share and bearing heavy loss. Superiors and owners of company can find analyse their situation
and sell business assets within right time. If they found out that they are facing loss and won't be
able to survive in the market, then they can liquidate or exit the company. They can choose
following options:
Liquidation: In this, company comes to end and owners winds up all their business
activities and operations. This occurs when, company is not able to pay its obligations and dues.
Business assets are used to pay all debts and remaining amount in distributed among
shareholders.
Sell business in open market: This is the most famous exit strategy for company who
wants to dissolve their company (Sheppard, 2013). Managers can adopt this strategy when they
thinks that there business is not earning enough revenue and when they think that business is not
of worth any more. Then, they can sell their business on sale with a certain price.
Sell to another business: Company can go for acquisition, in this one company sell its
business to other firm. This can result in more profits and stability of the company. With this
helps and support of other company. They can expand their business and combine synergies
from complementary business activities.
Above are some options which can be used by company's managers and owners to
dissolve their business and start a new venture. Following are reasons of business failures:
 Leadership failure: If leaders fail to guide and direct their employees, then employees
won't be able to work properly. This will lead to poor production and efficiency and thus
will lead to loss to company. Leaders should be able to make right decision which can

benefit their company (Ziari and et. al., 2012). Inefficient leaders can ruin the market
reputation of company.
 Ignoring customer needs: It is important for every organisation to know about needs
and demand of customers. If company fails to meet needs of customer, then they wont
prefer their products and thus company losses their customers leading to business failure.
 Poor management: If business fails to perform their operations properly and also unable
to manage their employees and staff. Then this can be a reason for business failure. It is
necessary to have proper management and managers should ensure proper management
of activities and tasks.
 Lack of capital: This is also one of the greatest reason for business failures. If company
is not having proper funds for their operations and activities, then they cannot achieve
their set goals and objectives. If they are unable to meet those targets, then ultimately the
company fill fail (Underwood, Francis and Gerber, 2011). In order to improve the
situations, they can take financial assistance with different sources of funds and financial
institutions like banks. They provide appropriate help to companies who are in immediate
need of money.
If Hook Norton Brewery is not able to run its business and is bearing losses, then at that
time, company can sell their business in open market. If company is not running and is at the
edge, then they can put their company on sale and set their price. Interested buyers can purchase
their firm. With that money they can open up their new venture or business.
M4
When company is not able to achieve success in their operations and is bearing huge
losses, then at that time, they can exit or liquidate their company and sell their assets to clients. It
is necessary to dissolve company when it is not progressing.
D4
According to (Mitchelmore and Rowley,2013), from the above mentioned, it is clear that,
dissolving or liquidating company is right thing when it is not progressing. They can sell their
assets and can start something new with the money. For dissolving, company can use different
techniques and steps.

CONCLUSION
As per above report it has been concluded that, in order to achieve desired success and
growth in future, it is necessary for company to plan their activities properly. Planning require
great dedication and concentration because this will decide their success. Small business plan
their activities in order to grow in the market and for that they require necessary financial
assistance and funds. They can take those help from different sources as mentioned in the
assignment. Their are various sources of funds which can be used by company like as angel,
venture capital, crowdfunding etc. Company should run appropriate research and investigations
and know about the market and customers and formulate strategies according to that. This will
help in operating their activities in effective manner and will slowly rise in the market.

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Online

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