Growth Planning and Strategies for Little Bay Restaurant, London, UK

This report provides a comprehensive growth plan for Little Bay Restaurant, a UK-based establishment. It begins with an introduction to growth planning and its importance, followed by an analysis of the restaurant's macro-environment using PESTEL and Porter's Generic strategies to evaluate growth opportunities. The report then applies the Ansoff Matrix to explore market penetration, market development, product development, and diversification strategies. Furthermore, it examines various funding sources available to the restaurant, including venture capitalists, bank loans, and business angels. A detailed business plan for the restaurant's growth is presented, along with a discussion of succession options to mitigate risk. The report concludes with a summary of the key findings and recommendations for Little Bay Restaurant's sustainable growth and success in the competitive market.

PLANNING FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Evaluate Growth Opportunities.............................................................................................3
P2 Ansoff Matrix for Growth Vector..........................................................................................5
LO 2.................................................................................................................................................7
P3 Sources of Funding................................................................................................................7
LO 3.................................................................................................................................................8
P4 Design a business plan for growth.........................................................................................8
LO 4...............................................................................................................................................12
P5 Succession Options..............................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategies which are made by owners of organizations so that they can track and plan for
growth in revenue is known as growth planning. Limited resources can be used in most effect
way through this process and due to strategies businesses get a competitive advantage in market.
Focus is on customers who are key drivers for growth planning to take place successfully. Target
of growth plan is to improve lack of sales, intense competition and unexpected growth. In these
situations, there is a need of growth plan which would provide firm with correct actions to be
taken.
Little Bay is a restaurant in United Kingdom. This restaurant is located at 228 Belsize
Road, London. Study would consist of PESTLE analysis, porters generic and Ansoff matrix.
Types of funds which business can expect so that they can get a profit in market. A business plan
for Little Bay restaurant's further growth is also discussed. Succession options is also discussed
in the report so that the risk factors can be over come and the right measure can be taken after
that.
LO 1
P1 Evaluate Growth Opportunities
PESTEL
PESTEL is a framework or tool which analyse macro environment of a business which
will have an impact on performance. This tool would be very useful for Little Bay which is a
small scale restaurant in United Kingdom.
Political Factors
Stability of political parties in UK creates opportunity for company as firms need not
change their process or working pattern again and again with changes in leaders of government
because regulations will be fixed that would give benefit to restaurant in conducting operations
in smooth manner (Kumar, 2016).
Economic Factors
Employment rates have got better which is giving customers an advantage on inflation.
GDP of country has increased over time which is making country get a lot of benefit and Little
Bay has got a lot of local customers who are loyal to them. Prices can be set as restaurant wants
so that they can have profit.
Social Factors

Population of UK has a high standard of living which is having a positive impact on
restaurant because they are providing customers with more beautiful environment in restaurant.
Maintaining standards of customers and restaurant will result in more customers coming in
restaurant (Perloff and Wingo, 2019).
Technological Factors
Recording of data collection will be easier for restaurant through technological help.
Through this factor restaurant can find out revenue they are generating and proper data will be
available without errors (Park and LaFrombois, 2019).
Environmental Factors
Both internal and external environment factors of restaurant are well maintained and
reachability to restaurant is also very good for customers. Waste disposal policies are also being
followed by restaurant so that they can get a competitive advantage.
Legal Factors
Employees and customers are being provided with health and safety regulations as per
government policies. Satisfaction of two are very important in Little Bay for growth. Right
healthy products are reaching customers which will result in more customers (Grant, 2017).
Porter's Generic
Porter's generic helps organization to get a competitive advantage in market which is a
very important factor and analysis of this factor can lead to have a better stand for firm in
market.
Cost leadership
Cost of products can be lowered by Little Bay and quality of products can be higher so
that can attract a lot of customers in restaurant. Once restaurant makes a place for themselves in
market they will be able to reduce competition for themselves which will create loyal customers
for Little Bay (Krumholz and Hexter, 2019).
Differentiation Focus
Innovation can help restaurant attract a lot of customers because that will give a unique
feature to restaurant and this will make Little Bay reach new target market. There should be a
strong relationship with all target markets.
Cost focus

Producing the products with good quality is aims of Little Bay restaurant so that they can
satisfy customers with low cost investment (Sarin, 2019). Analysis of market is a very important
factor before they can develop and manufacturing goods this will be more beneficial for
restaurant.
Differentiation Focus
There are a lot of addition and innovation so that there is a uniqueness in market which
will attract more customers in market. Targeted customers or market can be achieved so that they
can have competitive advantage.
P2 Ansoff Matrix for Growth Vector
This tools help managers, executives and marketers for future growth of business. Little
Bay is not experienced therefore these strategies is going to be very helpful for restaurant.
Market Penetration
To deal in the same market with the same products with the use of different techniques
and methods to get more customers is known as market penetration. Little bay can use promote
to end result so that they can make customers come in the organization faster and better.
 Little bay can sale its products in local market to local consumers only. This strategy can
give benefit to business in satisfying consumers because being a local brand it is well
aware with needs of buyers hence can offer them satisfactory services in restaurants
(Biddle and Taylor, 2018).
 But this strategy can strict firm in attracting global buyers which will restrict revenue of
company. Little Bay is a small scale business which will find it difficult to invest for
expansion in other countries as well.
Market Development
 Entering new market for example Indonesia, United States, etc with existing products
would attract a lot more customers in Little Bay which can be beneficial for restaurant.
Revenues which business will get will be higher, and they will be able to expand
themselves in the future. This can make Little Bay get a lot of competitive advantage in
market which will make small scale business turn to a medium scale business (Rudolf,
Kienast and Hersperger, 2018).

 Whereas understanding other markets will take time for Little Bay to understand and
settling down in other markets will take a lot of time. Customers choices differ and
understanding that is a very important factor. Investment which Little Bay will have to
make to expand in new market will be higher and getting break even point will take time
since experience with restaurant is not enough.
Product Development
Introducing a new product like healthy salad in the same market would make the
customers get more variety. Which will help the company have a lot of competitive advantage
since this is trending in the demand of the customers and little bay will be able to satisfy that
demand.
 Revenues and competitive advantage of restaurant will improve on a large scale which
will be very beneficial for a small scale restaurant like Little Bay. This can give
restaurant a large experience for future growth and improvements can be made in
products restaurant is dealing with. Quality of products can be improved and satisfaction
of customers can be met so that restaurant can grow in the future. Testing products before
Little Bay gets them to market will be better so that they know if product will be able to
capture market.
 Though investment in research and development department will be higher and since
Little Bay is a small scale restaurant therefore they will have to hire a better R&D
department for themselves. Understand needs and demands of customers is a very
important factor before restaurant invests in product's development (Sell and et.al., 2018).
Diversification
New market with new product in hand will make the customers get attracted and make
the customers satisfied in a better way which will be very beneficial for the restaurant.
 Loyal customers will get added in restaurant because of unique features and new product
(Baschat, 2018). This is a long term investment therefore restaurant will have to make
appropriate decisions so that they will be able to capture market better. Performance on
portfolio will be positive to a large extend.
 Risk of investing in new market is high but introducing a new product will be even higher
which can be risky. Portfolio of company can be affected because of this factor which
will create a great impact on restaurant. Complication can rise because investing in a

foreign market has a lack of experience for Little Bay. Quality can reduce because of
getting into new market which can be very dangerous for restaurant.
LO 2
P3 Sources of Funding
Little bay is a small restaurant which is why they will need some investor so that they can
fund themselves to expand themselves or improve themselves which will help the organization to
attract more customers and satisfy them.
Venture Capitalists
A financial help is given to small firms which have high growing potential in market.
High Growth as in the terms of revenue, employees or both. In exchange for funds they expect
equity or ownership stake in those companies. There is a high uncertainty in market, Venture
capitalist helps business to grow with risk factor. Advantages: Venture capitalist provides an opportunity for expanding any firm.
Obligation for returning amount is low which will benefit Little Bay to expand
themselves. Funding from other resources is very easy for restaurant in the future. This
will help to bring wealth and expertise in company so that functioning of organization
can improve (Loures, 2019).
 Disadvantages: Decision-making of restaurant will get shared and power will not be in
owners hand of Little Bay. Restaurant will find it difficult for funding in future which
will create further expansion in different target markets. There will be an addition of
forces investors as management who will have a great role in decision-making.
Bank Loan
This is very much advisable for Little Bay since it is simple and arranged funds can be
taken for small and medium enterprises. Bank loans can be given to restaurant for a certain time
and there are fixed rates of interest. Bank loans are most secured way of borrowing amount
which is required by organization so that they can invest and expand themselves more which will
be very beneficial for firm. Advantage: This is a legal form and fixed fund through which businesses can fund
themselves. Interest rates are lower which will make restaurant have higher profits
(Bates, 2018).

 Disadvantage: Bank has right over taking assets if company falls to pay loan back on
time. Firms will have to pay rates or amount from time to time even if organization is in a
profit or loss.
Business Angel
This involves private investors who are wealthy and want to invest in new enterprises or
ideas coming in market. This is done so that a small enterprise will be able to cover itself in a
large area or globally. Will be beneficial for company since they will not have to invest
themselves but can take investors who have amounted with them. Advantage: There are no interest rates which company will have to pay and amount
which Little Bay will take can be given by at a flexible time (Bridge and Dodds, 2018).
There will be discipline in organization because they will be under someone's debt which
is why they will have to make most, and they will have to make changes when and where
required as shareholder or investor would say.
 Disadvantage: Ownership will be completely lost which means owner of company will
have no control over business, and they will not be able to make changes which are
required in firm. Losing a share of business will make objective of company compromise
which is a very important factor.
Little bay should go for bank loan because that is a legal way through which they will be
able to fund themselves in the future growth and the company will be able to make a lot of profit.
Little Bay will have to take risk for expansion, and they will have to make the most from it and
bank will help the organization so get international.
LO 3
P4 Design a business plan for growth
Vision
To satisfy needs and demands of customers and improve products for them as much as
possible.
Mission
Quality of products is going to remain well maintained and innovations in products will
take place in organization.
Objective

 To increase sales of new product which is healthy salad of Little Bay by 10% till the end
of year 2021.
 To increase the market share by 30% till the end of year 2023.
 To enhance consumer experience by 10% in upcoming 6 months.
 To increase the profitability by 20% till the end of year 2022.
Situation Analyses (SWOT /PEST)
SWOT
Strength
Little Bay has a good environment and meeting high standards of population in United
Kingdom. Brand image Little Bay has made for themselves is very appreciable. Also,
innovations and creativity organization has used is unremarkable which is a very good factor for
organization as they have a unique feature which is making them different from competitors in
market (Kelliher, Shanahan and Whiteoak, 2017).
Weaknesses
Restaurant is not having enough funds to expand itself and that is very important for
growth of organization. Customers have to travel far to get services of restaurant which is
limiting customers in Little Bay.
Opportunities
Area where little bay is, that area is developing which is a good opportunity for firm.
There are a lot of offices and house which are located near restaurant which is a great
opportunity for restaurant.
Threat
Bigger brands are coming in area where Little Bay has made a business for themselves.
Price war is going to happen in restaurant with competitors since it is a developing area there
will be more competitors who will invest in that area.
PEST
Political Factor
Government will give funds to restaurant since it is a small and medium enterprise which
can be used for a lot of investment for development and expansion of organization.
Economic Factor

Inflation is high but prices of products and service they are providing to customers are
low so that they can have loyal customers and attract more customers in restaurant.
Social Factor
Population around restaurant will increase because it is a developing area which is going
to be very beneficial for organization (Lambert and Oatley, 2017).
Technological Factor
Little bay will have to get funds in organization so that they can expand themselves in
market. Though organization also has basic technology which is making company keep a track
on inventory and revenues which restaurant is making.
Marketing Strategies (7P's)
Price
Pricing of products have to be set low so that they can attract more customers in
restaurant which will be very beneficial for restaurant, this strategy is known as skimming which
Little bay is using and would continue to use as they grow in market.
Product
Quality of product is improving for customers so that restaurant can achieve objectives.
Packaging of products of restaurant is very good which has got a lot of customers in Little Bay.
Restaurant is going to come out with a healthy product which will make the company have a
better market for themselves.
Promotion
There are a lot of changes which have to be done in Little bay which need to be promoted
so that everyone knows about them so that they can get more customers. This will get a
competitive advantage to restaurant which will make them have a competitive advantage.
Physical Evidence
Interiors of restaurant are going to be change and done well and colours which are used
as wallpaper, couches, etc. are very attractive and sober which attracts customers.
Process
Customers will be satisfied with waiting time and pre booking for restaurant. Services
reach customers at best, and worth waiting for. Environment of restaurant is very friendly to
customers as well.
People

The customers who are coming in the restaurant are having a high standard of living
therefore it is very important for the restaurant to maintain the standards (Denton, Forsyth and
MacLennan, 2017). The employees are also well-trained by the restaurant so that they can
provide the customers with the best services.
Place
The location at with Little bay is located is still developing which is why the restaurant is
taking time to develop completely.
Financial planning
Particulars January
Februar
y March April May
Cash inflows
Opening cash inflow 4000 3500 2954 2462.12
2024.44
4
Sales revenue 6000 6120 6242.4 6367 6495
Other income 1000 1000 1000 1000 1000
Total cash inflows 11000 10620 10196.4 9829.368
9519.03
7
Cash outflows
Material 800 918 936.36 955.0872
974.188
9
Labour 1500 1500 1500 1500 1500
Other expenses 1200 1248 1298 1350 1404
Administration expenses 4000 4000 4000 4000 4000
Total cash outflows 7500 7666 7734.28 7804.924
7878.01
9
Cash deficit / surplus or closing
cash balance 3500 2954 2462 2024 1641
Monitoring and controlling
Monitoring and controlling the changes which are taking place in the restaurant is very
important because they will have to make sure that they are doing the best and the changes are

doing a positive impact. Employees will also have to accept the changes therefore there is a need
of controlling and monitoring in the restaurant.
LO 4
P5 Succession Options
There is a lot of risks which are included in expanding a business but there should be a
back up in the business if the risks turn out to be bad for the organization then what can be done
to repay the liabilities that the organization is having in the future. There are a lot of factors
which can be kept in mind before taking a risk in the business. Few of assess options are joint
venture, mergers, liquidation, etc.
Joint Venture
There are more than one investors in the organization so that they can invest and if the
risk does not work in favour of the company then the company can have the other partner to take
care of the factor.
 Benefit: There are a lot of innovations which can take place in the organization which
will be very beneficial for the organization so that will be able to attract more customers
in the firm (Gounaridis, Chorianopoulos and Koukoulas, 2018). Little Bay is lacking in
creativity and innovation and this will be a great advantage for little bay to invest in.
Small enterprises have to take risks and this can make the organization have a better
growth for themselves which will make the restaurant have a brand image.
 Drawback: The partnership will increase and the owner will not have the control on the
organization completely which will change the process and objectives of the
organization. Flexibility in the firm will reduce and that will be very risky for the
restaurant.
Liquidation
When the organization is not ready for changes in the strategies and trends cannot take
place in the organization then it has to close down. When the organization has been in loss from
a long period that time there is a need for liquidation which is required. In this the company
would sell the assets they have to pay the liability they have had. Benefits: There will be no debts which the owners will have to pay later and that is a very
important factor. This is a legal action which can be taken for the benefit of the