Growth Strategies and Planning for Hummingbird Bakery Business

This report provides a comprehensive analysis of growth strategies for Hummingbird Bakery, a small to medium-sized enterprise (SME) specializing in American-style baked goods. The report begins with an introduction outlining the need for strategic planning in the context of the competitive market. The main body of the report includes a PESTEL analysis and Porter's generic strategies to identify growth opportunities, an application of Ansoff's growth matrix to evaluate market penetration, development, and diversification, and a discussion of various funding sources including their advantages and disadvantages. The report also addresses the creation of a business plan for expansion and concludes with an overview of exit or succession options for a small business. Overall, the report aims to provide a strategic framework for Hummingbird Bakery's sustainable growth and market competitiveness.

Planning for
growth

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
P1. Analyse the growth opportunities justify in context to company...................................................1
P2. Ansoff's growth matrix for measuring growth opportunities................................................4
P3. Define various sources of raising funds and state it's benefit& drawback.....................................6
P4. Design a business plan for growing the business..................................................................8
P5. Explain exit or succession options for a small business with its advantages and disadvantages. 9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning for growth is generally a platform that is used within the organization and across
country to effectively analyse both intrinsic and extrinsic elements for the possibility of growth.
It can also consider various sources of growing funds as well as the investments that can aid in
the coming years. In the report, it will include a small to medium size organization generally
named as Hummingbird bakery. A SME include revenue, asset as well as the workers less than a
threshold limit (Ali, Gongbing and Mehreen, 2018). The chosen organization is mainly a SME of
the United and offers an American Style freshly baked and handmade cakes, pies, cupcakes,
sweets, desserts and cheesecakes as well. In this, the organization is mainly established in 2004
at London, United Kingdom. In order to grow the organization as well as lead within the market,
they generally have to make the effective strategies for business. In the report, it determines the
possible opportunities for enhancing the business and can capturing the market, the sources to
acquire the specific funds as well as the business plan to effectively survive within the market.
MAIN BODY
P1. Analyse the growth opportunities justify in context to company.
There are various elements to be consider during the planning for growth as well as it can
include both extrinsic and intrinsic components, the competitive benefits and the physical
procedures. In context with Hummingbird bakery, the PESTEL analysis and Porter’s generic
strategies are detailed below:
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PESTEL analysis:
Political component: Within this, the political element is generally handled by the higher
authorities. it can involve the authorities associated with the problems, elevation in the tax rate,
alteration within policies and so on. In context with enhancement in taxes, the rates of the chosen
organization have enhanced that can impact the bakehouse as they are losing their clients.
Economical component: The economical element is mainly concern with the economic
conditions of the country. In this, the depression phase, deflation, boom phase as well as various
other business cycles are involved within this (Bell, 2019). In addition to this, the post COVID
outbreak can influence the purchasing power of the clients as the price was enhancing so the sale
of the bakery reduces.
Social component: In this, the element can refer to the society culture, taste and
preferences of the behaviour, client and the social trends. Currently, the needs of the clients
involve fresh, organic as well as the healthy products. The chosen organization can offer the
bakery items as well as can involve the healthy products. For example, they can use jaggery
rather than sugar, creating the base of cakes which is made up of whole wheat and free from
products that include gluten as a substrate.
Technological component: In the technological element, it can play an essential part within
the business as it can make impact over the organisation within the production and innovation as
well. By using the effective technologies, the chosen organization can able to serve their clients
in an efficient manner. In addition to this, infrastructure of the chosen organization can
specifically attract its clients and can aid to save the time. Furthermore, in order to improve the
base of clients, organization can give the QR code at every table for the payment as well as menu
so the clients can easily able to order their table as well as can make the payment as well as can
give the Wi-Fi facilities also (Bettinelli and et. al., 2022).
Environmental component: In this, the environmental components are mainly concerned
with all the elements of the environment. it can involve the natural disaster, change in climate
and outbreak of infections as well. In context with Hummingbird bakery, the organization is
effectively engaged within the three major R’s of the waste management which is reuse, recycle
and reduce as well. The organization does not use such product that can harm the surrounding
environment. The organization generally avoid using the plastic bags as well.
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Legal component: In this, the legal element can involve specific legislations and
framework that is imposed by the government. In contrast with Hummingbird bakery can follow
all the effective rules and regulations, the specific policies mainly imposed by the government
and ministers in order to perform smooth operations.
Porter’s Generic Strategies.
 Cost leadership theory: In context with theory, the main concentration is on reducing the
cost. To lead within the market as well as can attract the clients to earn benefits, the
organization generally reduces its product rates. while talking about decreasing the rates
of products, the chosen organization generally wants to expand their business within
various other countries as well. Moreover, they can effectively able to attract the clients
as well as can make a strong client base and lead within the market progressively
(Fishwick, 2021).
 Differentiation theory: In this, the theory can specifically inform to enhance the client
base, an organization has to be different in the style as it specifically means to create
something unique that can grab attention of their clients. While talking about
Hummingbird bakery, the organization can use the products which are of American style
in Dubai as well as can also use variety of technologies in order to compete with the
existing rivals.
 Cost focus: Within this, the theory can concentrate over the small market. In contrast with
the small business, the main concentration is over the prices. The chosen organization can
add some additional items within the menu at their reasonable rates in order to get the
competitive benefits. The organization must offer some additional good quality at a very
lowest rates.
 Differentiation focus: It is mainly linked with the requirements of the client and their
wants. As per the social trends, the organization must concentrate over the requirements
of the client. it is also known as a niche market as well as can concentrate over the
differentiation. In order to cater the requirements of the consumer and to satisfy them, the
Hummingbird bakery must be listen to their customer’s feedback (Frank, Suess-Reyes,
Fuetsch and Kessler, 2019).
It is generally recommended that the organization should use a differentiation theory in order
to attract its client as well as for the enhancement of the business.
3

Boston Consultancy Group Matrix:
It is generally a tool for planning the graphical representation for the organization offering
services and goods. It can specifically aid in deciding whether the company wants to
continue with the effective strategy or not in context with commodities. The chosen
organization generally follows the BCG matrix and is illustrated below:
Dogs: In this, if the product of Hummingbird bakery include low marker share or the low
growth. it will tell whether the product must be sold, liquidate or can repositioned such that it
is considered as dogs.
Question marks: If the demand of specific products is high but can possess the low
market share then it is considered under questionable opportunities. It generally means that
the organization is consuming the amount of organizational resources.
Cash cows: In this, if the products and services has elevated market share but can involve
low growth the it is effectively considered as cow. the organization must take it as benefit for
the longer terms. An organization must attain the effective activity that can aid to enhance the
product demand (Gatti, Ulrich and Seele, 2019).
Stars: It can depict that the services and products market share are advanced as well as
can possess the elevated growth rate also. It generally means that the organization must
consistently create the effective products it is because their products are in heavy demand as
well as can involve a high market share as well.
P2. Ansoff's growth matrix for measuring growth opportunities.
Ansoff growth matrix is mainly used within the business as well as it can also aid to grow
the benefits within the company. the matrix can guide to produce the revenue as well as give an
effective opportunity to grow the organization.
Factors Advantages Disadvantages
Market penetration: If the
organization want to increase
its market share in the present
market by simply offering the
existing products, the
company can adopt such
Participation of clients will
improves.
If clients are not satisfied with
products, it will reduce the
client base.
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strategy.
Development of market: If
organization want to produce a
new segment as well as can
expand their organization
among other areas then it can
be considered under market
progression.
It can aid to enhance the
organization.
The customer who belong to
other state or countries cam
found it quite challenging to
know about their wants and
desires as well.
Development of products: The
region can involve risk it is
because the organization can
introduce a new commodity
within the existing market.
The chosen organization
introduces new things such as
chocolate cookies and red
velvet, cornflakes and many
more (Harding, 2018).
It can aid within the
competitive benefits as the
clients can get various
products and mainly include a
choice to select.
 It can cause a failure as
well as include the
possible risk as the
organisation that is not
concentrating over the
effective strategies of
the competitors.
 Within this, the main
concentration is on the
effective strategies of
paying attention on the
competitors.
Diversification: It can involve
great risk as the organization
is delivering a new product
within the market. However,
the organization does not
know about their responses
whether it will aid the
organization to rise or not.
 It can aid in earning
the benefits from
several areas.
 By creating the fresh
product, the
Hummingbird bakery
can capture the market.
 It will impart a
negative influence over
the organizational
image.
 The product within the
market is fresh as well
as the market is also
new, hence it may
occur a loss for the
firm.
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It is highly recommended that the organization must encourage the fresh products to
advance a business. In this, Ansoff matrix such as development of product must be opting by the
organization as this will attract the clients as well as can aid the organization to grow more.
P3. Define various sources of raising funds and state it's benefit& drawback.
It is important for a person to know about the various pathways to arrange the funds for
beginning of the business. In this, there are several sources from which the funds that can be
grown for the start-ups or the business (Martins and Perez, 2020).
Funds Advantages Disadvantages
Overdrafts and bank loan: The
authorities generally have
given the facility of the
financial institution from
which the people can
effectively able to borrow the
loans for their businesses. The
common path of arranging the
funds is taking bank loan, it is
quite easy to avail or to use.
Within business, if the less
amount of loan is needed then
there is no requirement to
maintain the security with the
bank. if the organization needs
a high amount of loan, then it
need to deposit the security
within the bank.
 It is generally an
easiest source to take
the loan or can arrange
the funds.
 It can give the long
term finance as well.
 A strict criterion has
followed; various
restrictions are
imposed for granting
the loans.
 It can charge huge
amount of interest if
the payment of the
overdraft is due.
Crowd funding: By its name it
is being determined that the
funds are being gathered from
 It is mainly the fastest
direction to grow the
 Make impact over
image of an
organization, if the
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various members but the less
amount is gathered. In this, it
is a pool of investors where
the investors as well as the
entrepreneur can bring
collaboratively to finance the
fresh or an existing
organization.
funds.
 for gathering the funds,
a person will share
their ideas with the
investors and in return
the investors can also
provide some effective
ideas as well (Roche,
Conti and Rothaermel,
2020).
owner of the company
generally fails to repay
the amount.
 Thoughts or ideas
provided by the
entrepreneur can be
effectively copied by
the investors.
Peer to peer lending: It is
generally an alternative source
of funding. People can directly
take loan from various other
people rather than going to the
financial institution.
Furthermore, the lending of
the money from person to
person.
 It is generally easy to
use with the
comparison of the
other funds.
 Within a single
platform, there are
various investors, so
that the organization
can get a chance to
select any of their own
investors.
 There is absence of
security at this
platform.
 It can produce the
confusion, also within
the findings who is the
investor as well as a
liable investor.
Angel Finance: It can describe
the group of the investors or a
person who involve money,
and include a high income as
well as the desires to invest
within the business
organization (Weimann,
Gerken and Hülsbeck, 2020).
 People mainly invest
in the start-ups
organizations and are
generally considered as
the best source for
arranging the funds.
 The investors can also
provide advice to the
start-ups organization.
 For the small
companies, it is quite
difficult to find the
investors.
 There is a loss of
control.
7

It is generally recommended that the organization must increase their funds from the financial
institution which is bank loan. It is generally considered as the easiest pathway to avail the loan
as well as to secure the path in order to opt. It can generally aid the organization to enhance their
image within the market.
P4. Design a business plan for growing the business
Chosen name of the organization: The Hummingbird bakery.
Executive summary: The Hummingbird bakery is generally a Small Medium Enterprise. It’s
headquarter is in London, United Kingdom. It can offer a broad variety of hand-made baked
products.
Background of the Organization: The chosen organization was founded in the year 2004, they
have shared all the specific recipes in the four bestselling cookbook such as Cake Days (2011),
The Hummingbird Bakery Cookbook (2009), Life is Sweet (2015) and Home Sweet Home
(2013).
Vision:
The organization can make a handmade fresh and healthy product as well as can supply them at a
reasonable price.
Mission:
The bakery organization wants to deliver their services across world with their authentic taste of
cakes as well as the deserts in an American style.
Objectives:
The concentration of the organization is to be at the first number across the world for attract the
American baking.
Nature Product Services
The chosen organization can create the items such as cookies, cakes, deserts, cupcakes,
cheesecakes, pies, brownies as well as all the American style baking products. The Hummingbird
bakery can supply the freshly baked items over the same day. In addition to this, the organization
is adding some of the new products in their menu card such as layered doughnuts as well as can
also offer a waffle at their bakery shop.
Stakeholder:
A person who is involved in the ongoing business, both directly or indirectly are known
as stakeholder’s. The involved stakeholders can involve investors, wholesaler, government and
8

consumer as well. It is generally impossible to have an effective functioning of the business
without the effective workers. In this, the products are generally created within the bakery is for
the clients to consume it. Furthermore, the top priority of the chosen organization is clients. The
organization generally fulfil the requirements as well as demands of every client.
Capital funding:
The chosen organization is generally going to enhance the funds about 40 K in order to
open a new outlet within the market. There are several other sources to raise the fund to raise a
business. The chosen organization decided to take loan from bank. It is because, it is quite easy
to take the loan from banks as well as can get access with security as well.
Sales target: Target for the chosen organization such as Hummingbird bakery for a year is to
attain about 40% sales.
Operational Plans:
It refers to a plan which an organization made to execute the functions which they have
made. It is being measured that they require new staff for the sales and finance department for
their new mercantile.
Resources Plan:
The Hummingbird bakery will first invest at its fixed assets like furniture, microwaves
and many more. After that, it will direct to an uncertain expense like packaging and delivering
costs.
Technology plan:
The chosen organization can effectively enhance the efficacy and productivity with help
of latest technology. Hummingbird Bakery can more concentrate over the clients with use of
digital marketing tools as well as the social media marketing.
Risk Factors:
The chosen organization generally does not use any item that is injurious for well-being
and along with this, they cannot able to use the products that are dangerous for their environment
as per the regulations and rules of the higher authorities across UK. The organization will be
sealed as well as their license will be cancelled if they are found with any kind of the activities.
Hence, Hummingbird Bakery is generally measured all the component prior planning to open the
new retail shops.
SWOT Analysis:
9

It is generally used to measure the position of chosen organization. It can influence both
external and internal component of Hummingbird Bakery.
STRENGTH
 The chosen organization mainly
prioritise the clients, fulfil the wants
and desires of the client.
 Organization creates an American style
baked items that can attract the clients
across Dubai.
 The organization has a strong portfolio
of its brand.
WEAKNESS
 The organization faces difficulties to
move across various product segment
with the recent culture.
 The net contribution profitability and
percentage ratio is generally below of
average within the industry.
 They generally involve restricted
expansion within the adjoining
commodity market.
OPPORTUNITIES
 To produce awareness within the social
media marketing of the client is mainly
used by the Hummingbird Bakery.
 Furnishing freshly made baked items as
well as use of organic products in the
process can aid to grow the sale of an
organization.
 higher authority has given free trade
agreement so that the new market can
be open as well as the adoption of new
technologies.
THREAT
 Alteration in the client’s behaviour in
context with preference, taste that can
influence the supply chain of
Hummingbird Bakery.
 Possible threats within the global
market involve the shortage of skilled
workforce that can highly influence the
benefit of Hummingbird store.
P5. Explain exit or succession options for a small business with its advantages and disadvantages.
Exit strategy:
In this, if the owner wants to shut down the business and generally does not want to
further continue working of the organization due to various reasons such as dissolution of an
organization, owner’s retirement, liquidation, bankruptcy of a company and so on. In addition,
the owner must follow various points earlier closing the organization.
10

 Prior closing the organization should settled all the liabilities
 At establishment time, the owners can have some expectation, at the time of closing the
business, owners must fulfil their objectives.
Strategy Advantages Disadvantages
Liquidation: It is a
framework which is used to
terminate the business as well
as can pay off their assets
along with the liabilities
towards the claimants.
 There will be no
specific legal actions
are taken against the
organization.
 After visualising all
the liabilities, the
organization is
generally free from all
the liabilities.
 The asset can be sold
by the chosen
organization to set off
the debts and
liabilities.
Closure and sale of assets: It
involves to settle down the
payment of liabilities and
creditors, the organization has
to sold their assets
immediately.
 By selling out assets,
the owners can easily
able to pay off their
debts.
 To sale the assets as
well as consider the
fair price which it
consumes more time to
find the buyers who
can pay a fair price.
Sell business to known: In
this, the business is sell by an
owner towards a known
person which is relative,
friend or family member.
 An individual already
know all the operations
as well as the
functional policies of
the business so as it
can be easy to sale
them as well as the
transparency is there.
 The possibility of
being failure within a
business can occur as it
is a new established
business so the owner
did not know that how
to handle the hurdles
and risks of a business.
Succession strategy:
Strategy Advantages Disadvantages
Mergers: To attain a shared  It can aid in improving  It consist an
11

objective the two
organizations can collaborate
together are known as merger.
in context with Hummingbird
Bakery, they will improve the
client base as well as also
there will a availability of the
resources.
the dispersion capacity
as well as enhanced the
shares within market.
opportunity of losing
job chances (Zhang,
Xu, Zhang and Yang,
2021).
Acquisition: The big
organization generally
acquires the small
organizations is called as
acquisition.
 It consists an
advancement in
capitals and revenue as
well.
 There will involve
some clashes in the
aims among the
organization.
Franchising: For using the
name of organization, the
company must get the
franchisee. Every cost and
expenses is a bear by the
franchisee, the franchiser does
not have to bear any cost.
 It can aid while
assisting the business
as well as brand
recognition.
 It can include elevated
initial costing as well
as having absence of
financial privacy.
CONCLUSION
From the above discussion, it is being concluded that to grow an organization, it is need to
make a proper and effective business plan. The project is specifically based over Small Medium
Enterprises named Hummingbird Bakery that is generally a leading organization across United
Kingdom. Furthermore, the sources of funds and exit strategy is also being discussed along with
its benefits and disadvantages.
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