Business Plan: Evaluating Growth Strategies for Little Bay Restaurant

This report provides a comprehensive analysis of growth strategies and financial planning for Little Bay Restaurant. It begins with an introduction outlining the importance of strategic planning for business growth, followed by an examination of considerations for evaluating growth opportunities using...Read More

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Considerations for evaluating growth opportunities...............................................................1
P2 Key opportunities for growth..................................................................................................2
M1 ...............................................................................................................................................3
P3 Sources of finance available and its pros and cons.................................................................3
M2................................................................................................................................................4
P4 Design a business plan............................................................................................................4
P5 Various exit strategies regarding small enterprises..............................................................7
M4 ...............................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Planning for growth is considered as the strategic business actions that allows owners of
the business to allocated their limited resource ,also track their growth. A strategy regarding
growth includes longer term success. Present report lay focuses on the Considerations for
evaluating growth opportunities. Key opportunities for growth and Sources of finance available
and its pros and cons, Furthermore it focuses on the business plan of Little Bay restaurant
Various exit strategies regarding small enterprises.
P1 Considerations for evaluating growth opportunities
A PESTLE analysis is a framework to evaluate the key factors impacting a firm form the
outside. It offers Human Practitioners into the external factors that influences their firm. The
evaluation is so flexible so the Firm can utilizes it within a range regarding different scenarios.
Senior mangers and HR practitioners of little bay uses the outcomes to guide decision-making.
Mention below are some six elements regarding pestle of Little bay restaurant.
Political - These can determine the facts the policies of government impacted on the business
of the Little bay restaurant as it involves foreign trade policy, labor law, tax policy and many
more. Little bay restaurants runs operation within the international market hence for any
changes occurs within the trade polices of government than its Revenue can be affected.
Economic – These are the factors that includes the inflation rates, interest rates as well as
exchange rates of the restaurant. It also impacts the product as well as services of the Little bay
restaurant. Due to the rise of the inflation rates restaurant faces a huge loss (Mazzaro. and
Reboud, 2020).
Social –It represents the population trends such as age distribution ,population growth rate,
consciousness of health, cultural barriers and many more. They are the crucial for the marketers
of the Little bay when they have to target the consumers. Little bay targeted the young
consumers.
Technological- With the help of the technological restaurant able to records the data of the
consumers.
PORTER GENERIC
According to the Porter there are four generic strategies that can be adopted within order
to gain the advantage called competitive advantage. It is considered as an advantage that can be
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gained through offering costumers greater value by the greater benefits or through lower prices.
Mention below Four strategies.
Porter uses four generic strategies that can be adopted in order to give the competitive
advantage.
Cost leadership- With this leadership strategy a company sets to become the low cost producer
within industry. This strategy involves associated with the standard products within large scale
business accompanied by the little differentiation. As this can provide the discount to its goods
to maximizes the sales. Particularly as it has the advantage regarding cost so that ti can enhance
the market share. It requires the close cooperation among all the areas regarding a business.
Little bay restaurant achieve the low cost producer and using high capacity and high level of
utilization and productivity respectively (Mazzaro. and Reboud, 2020).
Differentiation focus - It is broadly used by the buyers as here the little bay restaurant seeks to
be unique within it industry that can be broadly valued by the buyers. It can also be rewarded
by the unique through the uniqueness followed by a premium price of the products. Here the
requirements of the customers segment means that there are various opportunities to give the
products that are totally different from the other competitors within market that ma able to target
a wider group of the customers The valid basis regarding differentiation is to assure that with the
help of this strategy the requirements of the customer regarding are not meet the wants and
desires.
Differentiation leadership-
It involves one or more criteria that can be utilized by the purchasers and then meet the criteria
regarding business uniquely.
P2 Key opportunities for growth
The Ansoff matrix is considered as tool that can be used through firms to evaluate as
well as plan regarding the growth strategies. These four strategies can aid to grow the firm as
well as analyses the risk that are associated with them.
Product development- According to this strategy the company can develop new products
within the current market. It can be done by the investing within R& D to develop new products
and also creates the strategic partnership with various other forms to access to the distribution
of each partner (Gunder, Madanipour. and Watson, 2017).
Advantage-
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 It allows in developing new product with unique features and specifications
 the customers are easily attracted through new products
Disadvantage
 It may result in failure of product.
 there is huge cost required in it
Market development- Within the strategy the company can take entry into the new market
accompanied by their existing goods or product. Here the company expanding their market
within new customer segments, new geographies as well as new regions. It is known as the most
successful strategy ad it can be done s ways such as taking entry within a foreign market as well
as also take entry to the domestic market.
advantage
it allows in expanding in different markets
it helps in increasing customer base
disadvantage
The customers need may not be identified in various markets
Diversification- In this strategy the company can take entry within new market with new
products as it the riskiest strategy. There are two kind if the diversification can be applied by the
firm such as related Diversification and unrelated diversification. These are considered as the
potential synergies that can be realized between the new product and existing business.
Advantage
It is useful in generating more profits and sales.
Disadvantage
the strategy may get fail due to rise in competition.
M1
Market penetration- Within this strategy the firm aims is to improve its market share
as firm can uses its products to the current market. It can be done within the ways such as By
enhancing promotion as well as gives efforts regarding distribution, Decreasing the pricing to
attract the new consumers and at the same time acquiring competitors within the market
(Monstadt, and Meilinger, 2020).
Advantage
It helps in retaining customers
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Disadvantage
there is already stiff competition in existing market
P3 Sources of finance available and its pros and cons
Regarding business to adopt the strategy It focuses on the directing, organizing, planning
as well as controlling the financial undertakings within the Firm. It focuses on the Organizing,
planning, directing as well as controlling regarding the financial undertakings within a firm as it
also involves the financial assets of a firm. They are also playing a crucial part within fiscal
management (Syssner. and Meijer, 2017).
Bank loan- It is high advise than Bank loans can be given to the Little bay for a
particular time as well with fixed rates of interest. It is the most secured way of borrowing
money that is needed through firm as they can invest as well as expand themselves.
Benefits
It is considered as the legal as well as fixed fund by which businesses able to fund themselves.
Interest rates of the Little bay will provide a higher profit.
Disadvantage
The main disadvantage of bank loan is that the company has to pay the amount of interest timely
whether the firms faces profits or loss (Gicquel. and Lambert, 2020).
Businesses angels
These are considered as the private investors who are healthy as well desire to invest
within the new firm ,who invested within the new market. It can be done so that a small
enterprise covers themselves within large geographical arena globally (Demir, Wennberg. and
McKelvie, 2017).
Benefits
They are considered as less risky as compare to the debt financing as it is different from
loan, as the capital that is invested in the Little bay restaurant is cannot not pay back as the firm
faces the failures of the business. Also, ost of the investors able to understands the business as
well as take the long term view regrading businesses.
Disadvantage
There is complete lost of the ownership as it means that the firm has no control as well as
changes can be made than can be needed within a firm (Mazzaro. and Reboud, 2020).
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M2
Overdraft-
It is known as a loan service that grants the account permission of the account holder to
withdraw the amount even if the nil balance an account have. Bank enhances the limit regarding
credit where consumers able to withdraw money more than present within their account.
Benefits-they provides the additional funds to small firms and public firms within the urgent
need.
Disadvantage- It charges the high interest as compare to the bank loan. Also, the performance of
Fiscal is not overall good and it would influence financial performance of the little Bay that is
not stable enough (Walker, 2017)
P4 Design a business plan
Executive summary- In this Business plan Little bay restaurant is planning to expand its firm
within new and innovative products that are green products and organic products. So the firm
has done complete analysis where the firm to make products that are more healthy as well as
tasty. Then the firm has form the strategies with various other competitors to gain the maximum
profit margin. The firm has introduced the organic products which more healthy for the people
and also maintains the taste. So that the firm can attract the young generation who are more
focused towards their health and also focuses on the Home delivery option for the costumers
especially who are too old to come within the restaurant (Demir, Wennberg. and McKelvie,
2017).
Mission- To becomes the leaders within the home food delivery and green food.
Vision- To deliver the food of high quality as well as maintain the taste at the more affordable
prices.
Objectives- To increases the costumer experience up to 20% within upcoming 6 months
To increases the market share up to 25% within Next two years 2022.
To enhance the profit by 25% within the end of the year 2021
STP
Segmentation
Market segmentation can be defined as the process where the market can spill into the
groups that requires similar needs regarding the purpose of selecting suitable market. Little bay
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restaurant uses the Demographic segmentation where they focus on the age of the consumers and
also psychographic where they focuses on the lifestyle of the costumers.
Targeting- It is highly focused on the particular group of costumers as Little bay restaurant
focuses on the Young age people from the age 16 to 30 as well as old age from 65 to 80 years
old (Cobetto,Aubin. and Parent,2018).
Positioning- Little bay restaurant focuses on the Online food delivery potion. It also provides the
various discount prefers so that they can easily reach to their costumers.
SWOT
Strength
The firm has collaboration among the distributors who are unable to assist to promote
the products but at the same time also train the marketing and sales team. It not only gives the
combination of the price quality but also employs a huge number of the workforce to manage its
firm.
Weaknesses
Little bay is small as well as medium enterprise so it can face vagarious challenges within the
step out its core business and product segment. Thus, the Market that inventory level tend to
enhance day be day within accordance of the low sales. The investment of the firm within the
market as compare to the other nearby restaurants so costumers prefer other restaurants (Holz-
Rau. and Scheiner, 2019).
Opportunities
Firm focuses on the demand firm on the home delivery or online food so that they can
target not only the younger audience but the old age people who are unable to came to the
restaurant but want to eat the Restaurant food.
Threats
The threats can be facing by Firm that with the growing competition in the form of
online food and established a larger platform to target various group age audiences (Hughes and
Garfinkle, 2018).
Monitoring and controlling
KPI= It is considered as an indicator that can be used to measure the value that how effectively
firm is accomplishing key objectives regarding business. Low level KPI highlights on the
various departments for example sales ,marketing as well as other while High KPI focuses on the
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overall business. With the support of KPI, Little Bay restaurant easily compare firm's finance as
well as performance with various other firms so that they are capable for the improvement
regarding more profit as well as establish globally business (Demir, Wennberg. and McKelvie,
2017).
Financial info
Financial Planning -
Jan Feb March April May June
Cash inflow
Sales 15000 16000 17000 18000 19000 20000
Total cash inflow 15000 16000 17000 18000 19000 20000
cash outflow
rent 2000 2000 2000 2000 2000 2000
marketing expenses 3000 2000 4000 3000 3000 3000
raw material purchase 4000 4000 4000 4000 4000 4000
Financial Planning -
Cash inflow
Sales
Total cash inflow
cash outflow
rent
marketing expenses
raw material purchase
utility bills
wages
500 600 500 600 500 600
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Total cash outflow
Net cash flow
utility bills
wages 2500 2500 2500 2500 2500 2500
Total cash outflow 12000 11100 13000 12100 12000 12100
Net cash flow 3000 4900 4000 5900 7000 790
P5 Various exit strategies regarding small enterprises
It is considered as the planning that falls under the contingency planning through the
business owner where they are able to transfer their tangible and tangible assets as well as
ownership to the third party. Successful exist strategy small business who look for the venture
capital and angel investment regarding different aspects of the business. Such as well as at what
amount will the firm receiving while doing so. There is always need for the which is highly
necessary regarding the start Ups as well as entrepreneurs that assist them to Hence it becomes
the crucial to involves exit approach within the plan of the business (Gunder, Madanipour. and
Watson, 2017). Various firms can adopt various strategies relying on their strategic goals as
mention below most common are
Compulsory / voluntary winding up -
It is process that the business is unable to survive within the market as well as finally
management regarding adopt the shut down strategy. It is totally depends upon the business as it
will pick voluntary or compulsory wind up.
Benefits- If a firm is solvent they are more easily wind up the business as well as take away the
remaining amount and pay off their creditors within market. Through the voluntary wind up they
enable to close their business as per their want for particular period and reopen again when they
are stable with new concepts as well as ideas (Syssner. and Meijer, 2017).
Disadvantage
It will decrease the firm's goodwill as the share value of the firm will focuses on the loss
time regarding all the investors. Consumers faith as well as beliefs for the firm will also benefits
regarding the other competitive firm.
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M4
Acquisition
It can be takes place when the stable and large firm takes the share as well as corporate
states regarding another firm as well as exercise control over the firm that is acquired. It can
mostly occur when the firm is not financially stable as well as unable to pay its debt. It can able
to sells all its stocks and assess to pay the same things.
Benefits- It allows the firm to procure raw materials within good quality within much larger
quantity within reduces Prices. It increases the economics of scale. It is also known as the
combined synergy regarding Hotel Bay as well as at the same time acquirer firm will enhance
the former market that allows share to have the strong hold (Demir, Wennberg. and McKelvie,
2017).
Disadvantage
The major disadvantage is that they have different Homogenization actions regarding two
firms. It will enhance the Challenge regarding Little bayas well carry the staff members where
they feel unable to adjust within new culture of new firm. They also resist to change and at he
same time fail to adopt the polices as well as procedures (Syssner. and Meijer, 2017).
CONCLUSION
From the above report it had been concluded that PESTLE analysis determine the facts
the policies of government impacted of the Little bay restaurant Revenue can be affected. Social
trends such as age distribution, cultural barrier. Little bay targeted the young consumers.
Economic impacts Little bay restaurant rise of the inflation rates and many more. Cost
leadership- enhance the market share to achieve the low cost producer and using high capacity.
Differentiation focus various opportunities from the other competitors. It also focused on the
Market development as company expanding their market new geographies new regions and
Bank loans can be given to the Little bay with fixed rates of interest. It is legal as well as fixed
fund Businesses angels who are healthy as well desire to invest themselves within large
geographical arena. Furthermore, focused on the Acquisition that occur when the firm is not
financially stable as well as unable to pay its debt and focuses on Strength this is combination of
the price quality gives and Opportunities such as home delivery or online food. Threats such as
the growing competition in the form of online food.
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REFERENCES
Books and journals
Cobetto, N., Aubin, C.E. and Parent, S., 2018. Surgical planning and follow-up of anterior
vertebral body growth modulation in pediatric idiopathic scoliosis using a patient-specific
finite element model integrating growth modulation. Spine deformity, 6(4), pp.344-350.
de Roo, G., 2017. Integrating city planning and environmental improvement: Practicable
strategies for sustainable urban development. Routledge.
Demir, R., Wennberg, K. and McKelvie, A., 2017. The strategic management of high-growth
firms: a review and theoretical conceptualization. Long Range Planning, 50(4), pp.431-
456.
Gicquel, R. and Lambert, P.A., 2020. From Sales Strategy to Profitable Growth. In Using
Installed Base Selling to Maximize Revenue (pp. 29-43). Apress, Berkeley, CA.
Gunder, M., Madanipour, A. and Watson, V., 2017. Planning Theory: An Introduction. In The
Routledge Handbook of Planning Theory (pp. 1-12). Routledge.
Holz-Rau, C. and Scheiner, J., 2019. Land-use and transport planning–A field of complex
cause-impact relationships. Thoughts on transport growth, greenhouse gas emissions and
the built environment. Transport Policy, 74, pp.127-137.
Hughes, K. and Garfinkle, S.S., 2018. Planning for a rainy day: the future of energy storage and
the policies driving its growth. Natural Resources & Environment, 32(4), pp.31-35.
Mazzarol, T. and Reboud, S., 2020. Planning and Strategy in the Small Firm. In Small Business
Management (pp. 95-152). Springer, Singapore.
Mazzarol, T. and Reboud, S., 2020. Work Book: Planning and Strategy in the Small Firm.
In Workbook for Small Business Management (pp. 29-39). Springer, Singapore.
Monstadt, J. and Meilinger, V., 2020. Governing Suburbia through regionalized land-use
planning? Experiences from the Greater Frankfurt region. Land Use Policy, 91, p.104300.
Syssner, J. and Meijer, M., 2017. Informal planning in depopulating rural areas. European
Countryside, 9(3), pp.458-472.
Walker, P., 2017. Downtown planning for smaller and midsized communities. Routledge.
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