Hummingbird Bakery: Growth Opportunities, Funding, and Business Plan

This report analyzes the growth opportunities for the Hummingbird Bakery, a small to medium-sized enterprise (SME) in the UK. It begins with an introduction to planning for growth and the factors to consider. The main body of the report includes a PESTEL analysis and Porter's generic strategies to ass...Read More

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
P1. Analyse the growth opportunities justify in context to company.........................................4
P2. Ans off's growth matrix for measuring growth opportunities...........................................7
P3. Define various sources of raising funds and state it's benefit& drawback...........................9
P4. A business plan is made for growing the business ..........................................................10
Gantt Chart .........................................................................................................12
SWOT Analysis........................................................................................................................13
P5. Explain exit or succession options for a small business with its advantages and
disadvantages............................................................................................................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Planning for growth is a framework used in firm and companies in order to analysis the
internal and external factor for growth possibility. This also considers the several sources of
raising funds and investment which will help in upcoming years. The written report is based on a
Small to medium size business named Hummingbird bakery. SME ( small or mid-sized
enterprise) is the businesses that have revenue, asset & employees less than a threshold limit.
The Hummingbird bakery is a SME – small / medium size enterprise of UK, they offers
American style handmade and freshly baked cakes, cupcakes, pies, desserts, sweets and
cheesecakes. This bakery was founded in 2004 at London, UK. To grow the firm and lead in the
market they have to make the business strategy. This report determines the opportunity for
growing the businesses and capturing the market, the sources to acquire funds and the business
plan to survive in the market.(Olmos, Tadeo, Vlachogiannis, and et. Al, 2020).
MAIN BODY
P1. Analyse the growth opportunities justify in context to company.
There are several factors to be consider during the planning for growth and it involves the external
and internal factor, competitive advantages and physical process. With the context of The Hummingbird
Bakery, PESTEL analysis and porter's generic strategies are explained below:
PESTEL Analysis
 Political Factor – Political factor are handled or tackle by government. It includes the
government related issues- increase in tax rate, modification in policies and many more. With the
rise in taxes, the prices of the hummingbird bakery is increased which affects the bakehouse, as
they are losing their customer.
 Economical Factor – Economical factor is concern with the economic situation of country. The
depression phase, boom phase, deflation and all other business cycles are included in this. The
post COVID-19 pandemic affects the purchasing power of consumer as the prices was
increasing so the sales of bakery decrease.
 Social Factor – This factor refers to the society culture, taste and preferences of
consumer, behaviour and social trends. At present the customer's wants organic, fresh and
healthy products. Hummingbird bakery offers the bakery items and includes the healthy

product. Such as they use jaggery instead of sugar, producing the cake base made up of
whole wheat and gluten free products(Park and LaFrombois, 2019).
 Technological Factor- This factor plays an important role in business as this affects the
firm in production and innovation. By using the technology the Hummingbird bakery
serve the customer in effective way, the infrastructure attracts the customer's and it helps
to save time. With this, to enhance customer base they provide the QR Code at every
table for payment and menu so the customer can easily order from their table and make
payment also provide the Wi-Fi facility.
 Environmental Factor – This factor is concerned with all the components of
environment. It includes the natural disaster, climate change, pandemic etc.
Hummingbird bakery is engaged in 3R's of waste management – reuse, recycle and
reduce. The company does not use those product which harms the environment. They
stop using plastic bags also.
 Legal Factor – Legal factor includes laws and legal framework imposed by official
authorities. The Hummingbird bakery follows all the rules and regulations, policies
imposed by ministers and governments to perform the smooth functioning.
Porter's Generic Strategies
 Cost leadership theory – Cost leadership theories main focus is on decreasing the cost.
To lead in the market and attract the customers to earn profit, company usually decrease
their products prices. With the view of reducing cost of products the Hummingbird
bakery wants to expand their business in other countries also. With this, they can attract
the customer and make the strong customer base, and lead in the market.
 Differentiation theory – This theory tells that to improve the customer base, firm has to
be unique in style it means produce some thing unique which catches the attention of
customer. For this Hummingbird bakery uses the American style of products in Dubai
and can also use the different technologies to compete with their rivals.
 Cost Focus – In this theory the focus is on the specific small market. While considering
the small market the main focus is on prices. The Hummingbird bakery can add some
more items in their menu at reasonable prices to get the competitive advantage. They
should offer good quality product at low prices(Lahindah, and Siahaan,2018).

 Differentiation Focus – This is related with the consumers needs and wants. According
to the social trends, the company should focus on customers needs. This also includes the
niche market and focuses on differentiation. To cater the needs of customer and satisfy
them, Humming bird bakery should listen to the clients feedbacks.
It is recommended that company should use differentiation theory to attract the customers
and for growing the business.
Boston Consultancy Group Matrix:
This matrix is a tool for planning the graphical representation about companies offering
goods and services. It helps in deciding whether the firm should continue with the strategy or not
in the reference of commodities. Basically, it shows the current vie of production line of
company. This includes four categories: cash cows, question mark, dogs and stars. The
Humming bird follows BCG matrix, explained below.
 Dogs- If the company's product has low market share or low growth. It will tell whether
the product should be sold, liquidate or repositioned and it is considered to be dogs.
Therefore, it is necessary for the firm to stop producing the product which comes in this
category as it does not provide any profit to the firm.
 Question marks- If the product's demand is high but posses low market share then it is
an questionable opportunity. It means the company is consuming the amount of firms
resources. So, the firm wants to look upon this, company should look on the thing which
helps to increase the market share(Zos-Kior, Ilin, Kyryliuk and et. Al, 2020).
 Cash cows- If the product and services has high market share but low growth then it is
considered as cow. The company should take it as advantage for long term. A firm should
acquire the activity which helps to increase the demand of product.
 Stars- This shows that the product's and services market share are high and also posses
the high growth rate. It means the company should consistently produce the product
because the product is in demand and has high market share. This product also earns
high profit margin and improve the goodwill of company. If the product is under this
category then the company is leading in the market.

P2. Ans off's growth matrix for measuring growth opportunities.
Ans-off's matrix is used in businesses and it also helps to gain the profit in firm. This
matrix guide you to generate revenue and provide the opportunity to grow the company. It is
presented in grid format. To compete in market firm uses this matrix . With the reference of
hummingbird bakery, ans-off's matrix is explained below: Market penetration – If a firm wants to raise their market share in present market by
offering the existing product, can adopt this strategy. Hummingbird Bakery should add
some more products and services in their menu list to attract the customers and make
strong consumer base.
Advantages
 The engagement of consumer will increase.
 Rise in company's revenue.
Disadvantages
 If the consumer is not satisfied with the product, it will decrease the customer base.
 If a company is not able to attract the consumer then they have to face a challenging loss
situation. Market Development – If a firm wants to create a new segment and expand their
company in other regions also then it is known as market development. Company either
enter into new market segment or open outlets at different areas. The Humming bird
bakery expanded their business in Dubai and south Kensington also (Lam, 2022).
Advantages
 It helps to grow the company. Rise in direct investment of Foreign's.
Disadvantages
 The people belongs to different countries and states so it's difficult to know their wants
and desires.
 In this the immense level of cost and risk are involved.
 Product Development – This area includes risk because the firm introduces a new
commodity in the existing market. Hummingbird bakery has introduced new items – red
velvet and white chocolate cookies, popcorn brownies, cornflakes and coconut flapjacks
& many more, his all are added in existing menu of the baker's shop

Advantages:
 Launching the new products to capture the attention of consumers. It will help in the competitive advantage as Consumer's get the variety of products and
have a choice to select.
Disadvantages
 In this main focus is on strategies instead of paying attention on competitors.
 It causes the failures and involves risk as the firm is not focusing on competitors
strategies.
 Diversification – This include high risk as the firm is delivering a new product in new
market. Therefore, the company does not know about the responses whether it will help
company to grow or not. It helps in increasing market capitalisation and offers a new
product which is the diversification for the market and firm(Zhang, Fan, Ma and et. Al,
2021)
Advantages:
 by producing the new product the humminmg bird bakery can capture the market.
 It helps in earning the profit from various regions.
Disadvantages:
 The product in the market is new and the market is also new, it may occur lossess also. This will have negtaive impact on the image of the firm.
It is recommended that company should produce a new product in order to grow a
business. The ansoff's matrix "product development" is should be opt by company as this will
attract teh customer and helps to grow the business.
P3. Define various sources of raising funds and state it's benefit& drawback.
It is necessary for an individual to know about the different ways to arrangfe the funds for
starting the bsuiness. There are various sources from which the funds can be raised for business
or startup's-
 Bank loan and overdrafts – The government has provides us the facility of financial
institution from which we can borrow the loans for business. The easiset sources of
arranging the fund is bank loan, it is easy to avil and to use. If in business the less amount
of loan is required then rhere is no need to keep the security with bank but if the firm
wants huge amount of loan then it is required to deposit the security with bank.

Advanatges
 This is the easiest source to take the loan or arrange the fund. This can also provide the Long term finance.
Disadvantage
 A rigid criteria is followed, certain restrictions are imposed for granting the loans.
 It charges a high rate of interest if the payment of overdraft is due. Crowd funding – By the name it is understood that the fund is collected from lots of member
(crowd) but the less amount is collected. It is a pool of investors where the investor and
enterpreneur bring together to fiannce the new or existing firm.
Advanatges
 This is the fastest direction to raise a fund. For collecting the fund the individuals will share their thoughts and ideas with the
investors so the investors can also give the new ideas.
Disadvantage
 The company's image will affect if the owner of the business fails to repay the amount.
 The thought or idea given by the entrepreneur can be copied by the investors. Peer to peer lending – This is an alternative source of funding. In this the individual directly
take a loan from the other person instead of going to finincial institution. It means lending of
money from person to person.
Advanatges
 It is easy to use with the comparison of other funds. At a single platform there are lot of investors so, company get a chance to choose any of
the investor.
Disadvantage
 There is a lack of security at this platform.
 This creates confusion also in finding who is the investor and liable investor.. Angel finance – This describes the group of investor or individual eho has money, has high
income and desiore to invest in the busines firm. An individual who does not have knowledge
about the business working but invest in the firm.
Advanatges
 They specially invest in startup companies and are a best source for arranging the funds..

 The investors can give advice to startup firms.
Disadvantage
 For small company's it is difficult to find investors.
 There is a loss of control.
It is recommended that the firm should raisde their funds from financial institution that is
bank loans. This is the easiest way to avail the loan and a secure path to opt. This also helps the
firm to increase their image in the market.
P4. A business plan is made for growing the business
Chosen organization name
The Hummingbird bakery is the chosen business organization for this business plan.
Executive Summary
The Hummingbird Bakery is a SME (small-mid sized enterprise), headquarters is in
London, UK. It offers a wide range of hand made bakery products.
Background of company
The Hummingbird Bakery was established in 2004, they have shared all their recipes in
four best selling cookbook: The Hummingbird Bakery Cookbook (2009), Cake Days (2011),
Home Sweet Home (2013), Life is Sweet (2015).
 Vision – They make handmade healthy and fresh products and supply them at moderate
rates.
 Mission – The bakery wants to deliver in the world, the authentic taste of cakes and
dessert in American style.
 Objective – Company's focus is to be at the first number in the world for tempting
American baking.
Nature product services
The Hummingbird bakery produces items- cakes, cookies, cupcakes, deserts, pies,
cheesecakes, layer cakes, brownies and all American style baking products. They supply the
fresh baked items at the same day. A company is adding a new product in their menu - layered
doughnuts and also offering a waffles at their baker's shop.
Stakeholders
The persons who are involved in running the business, directly or indirectly are called as
stakeholder's. This considers the wholesaler, investor's, consumer, and government. It is

impossible for the effective function of business without the efficient employees and workers.
The products are produced in the bakery is for the consumers to consume it. Therefore, the first
priority of Hummingbird bakery is the customers. The bakery fulfill the needs and demands of
consumer's. In the organization to achieve goal each and every stakeholders perform their duty.
Capital funding
The Hummingbird is going to raise a fund of pound 30K to open a new outlet. There are
various sources of raising the fund in order to grow the business. The Hummingbird bakery
decided to take the loan from bank. Because it is easy to take the loan from banks and get access
as well as there is security also. The firm wants to get small loan so there is no need to keep the
security deposit with the banks. This will increase the image of the organization in the market
also.
Sales Target
Hummingbird bakery's target for a year is to achieve 30 per cent sales.
Operational plans
These are the plans a company made to perform the operation they have made. They have
measured that they need new employees for finance and sales department for their new
mercantile. They will shift employees from other stores for operational department. The
company will use marketing through social media for the recognition of customer and creating
more customers(Firoz Suleman, Rashidirad and Firoz Suleman, 2019).
Resources plan
Hummingbird will firstly invest at its fixed assets such as: microwaves, furniture's and
others. Then it will direct towards uncertain expenses such as delivering and packaging cost.
They will also focus at buying raw material at lower prices.
Technology plan
Hummingbird bakery can improve it's productivity and efficiency with the use of latest
technology . The company can more focus at customers with the use of digital marketing tools
and social media marketing. Through this, Search Engine Optimization ranking of the company
could be developed and it could get chances to appear on top most pages.
Risk Factors
The companies can not use any item which is injurious for health along with this they
can not use products which are harmful for environment as per the rules and regulation of the

government of UK. The companies will be sealed and their license will be cancelled if they are
found with any kind of these activities. So, Hummingbird measured all the factors before
planning to open new retail store(Gholami and Seyyed-Esfahani, 2019).
Marketing plans
 Dubai is the set target market of Hummingbird company, where it is planning to open a
new business organizational unit. Their aim is to keep the prices at comparatively lower
than the competitors to maintain a customer base.
 The company is aiming at social media tools to increase customer base.
 It aims to increasing its revenue by the increment in customer base. They will provide
sample items to the new initial customers.
Timeline
The company consider that it will take at least one year to achieve all the set targets.
Gantt Chart
This is used in project management to show the activities with the context of time. This
involves the timeline of work, breakdown of work structure and many more things. The
hummingbird bakery tells about the time taken to perform an activity.
SWOT Analysis
It is an acronym of strength , weaknesses , opportunity & threat (SWOT) . This analysis
is used to evaluate the company's position . It affect the external as well as internal factor of the
company. Through swot analysis we can analysis the company's performance , risk ,
competition(Benzaghta, Elwalda, Mousa and et. Al, 2021).
 STRENGTH WEAKNESSES
 The hummingbird bakery prioritise the
customers, fulfil the desire and wants of
clients.
 A hummingbird bakery produces an
American style baked items which
attracts the customer in Dubai.
 The company has strong portfolio of its
brand.
 The hummingbird facing challenges to
move in different product segment with
following the current culture.
 The net contribution percentage &
profitability ratio is below of average in
the industry.
 They have limited or restricted
expansion in the adjoining commodity

market.
OPPORTUNITIES THREATS
 To create awareness in the consumer's,
social media marketing is used by the
humming bird bakery.
 Supplying the freshly hand made baked
items and using of organic product in
process helps to raise the sale of
company.
 The government has provided free
trade agreement so the new market can
be open and adoption of new
technologies.
 Change in behaviour of consumer in
taste, preferences affects the supply
chain of hummingbird bakery.
 Entrants of new competitor in the
market affect the profit and revenue of
the bakery.
 The threat in global market is shortage
of skilled work force which affects the
profit of hummingbird baker's shop.
P5. Explain exit or succession options for a small business with its advantages and
disadvantages.
Exit strategy:
If owner wants to shut down the business and does not want to continue the working of
firm due to certain reasons: like retirement of owner, dissolution of firm, owner wants to0 witch
on other production line, bankruptcy of an organisation, liquidation and many more. But owner
should follow certain points before closing the firm:
 Before closing the firm owner should settled all the liabilities.
 At the time of establishment the owner may have some expectation, at the time of closing
the business the owner should fulfil their objectives.
The strategies used of small and medium sized enterprises are explained below:- Liquidation – It is a framework used to end the business and pay off their assets and
liabilities to the claimants(Chiu and Lin 2019).
Advantages
 There will be no legal action taken against the comapny. After setting off all the liabilities, company is free from all the liabilities..

Disadvantages
 The assests will be sold by the company in order to set off the liabilities and debts.
 The owner has to use their personal source if oiwner fails to pay off all the debts.
 Closure and sale of assets – To settle down the payment of creditors and liabilities,
company has to sold their assets immediately.
Advantages
 by selling out the assets owner can easily pay off their debts. An amount can be used in other projects which is gained from selling out the assets.
Disadvantages
 To sale the assets and consider the fair amount it consumes more time to find the buyer
who can pay a fair price..
 many formalities are to be done during the selling or transferring the assets. Sell the business to a known – The business is sell by the owner to the known person it
can be a friend, relative or family member(Ferreras-Garcia, Hernández-Lara and
Serradell-López, 2019).
Advantages The known person alredy knows the functioning and policies of business so it is easy to
sale them and the transparency is there.
Disadvantages
 The chances of being failure in business occurs as it is new established business so owner
doesn't know how to handle the risk and hurdles of bussines. Sell to another business –The business can be acquired by vast firm or sold to other
reputed company and as a result it is the expansion of business.
Advantages An owner can invest the money in other projects also which is gained through the selling
of business(Kaciak, Koladkiewicz, Thongpapanl and et. Al, 2021).
Disadvantages
 At the end during closing of business, the efforts put by owner at the time of
establishment will be lossed..

If the hummingbird bakery is not able to cater the needs of clients, and does not gain
profit then it is it is recommended that to sale their business to another business unit. As a result
this will help them to invest in their other projects the fund which is acquired by selling it.
Adopting this option will be time saving and the owner will also get the fair pay which can be
used in other projects.
Succession strategy: Mergers – To achieve a common goal the two companies combine together is called
merger. The hummingbird bakery will enhance the customer base and also there will be
availability of resources.
Advantages
 This will help in enhancing the distribution capacity and increased the market share. There will be availability of financial resources.
Disadvantages
 There will be chances of loosing job opportunities and losses.
 The prices of product will rise. Acquisition – The big companies acquirees the small companies or undertakes the small
companies is known as acquisition. Along with this there is transfer of powers and rights
also(Chirico, Gómez-Mejia, Hellerstedt and et. Al, 2020).
Advantages
 There will be growth in revenues and capitals. This can introduced the new market and production lines.
Disadvantages
 There will be clashes in the objectives between the companies.
 There will be conflicts among the companies on the company culture. Franchising – For using the name of company, the company should get the franchisee.
All the expenses and cost is bear by the franchisee, the franchiser does not have to bear
any cost. In the name of royal changes the franchisee pays the amount to franchiser.
Advantages
 It will help in business assistance and brand recognition. There is low chances of failure of business.
Disadvantages

 There is high initial cost and lack of financial privacy.
 There is restriction and regulation whi8ch are to be followed.
It is recommended that the hummingbird bakery should opt the franchisee in order to
grow the business. As it will assist in business andincrease4 in the brand awareness also there
will be less chances of risk and failing of business(Zos-Kior, Ilin, Kyryliuk and et. Al, 2020).
CONCLUSION
It is concluded from the above file that, to grow a firm it is required to make a proper
business plan. This report is based on a SME named Hummingbird Bakery which is a leading
company of UK and opened a branch in Dubai also. To evaluate the companies growth
opportunity, certain factors are considered. The PESTEL analysis, SWOT analysis, porter's
generic model, BCG matrix and ans-off's matrix is considered in this. The sources of funds and
exit or succession strategy is also discussed along with it's Advantages and disadvantages.
Further a business plan is also prepared.

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