Planning for Growth: Little Italy Soho's Business Strategies Report

This report provides a comprehensive analysis of Little Italy Soho's business growth strategies. It begins with an introduction to the importance of planning for organizational growth, followed by an evaluation of growth opportunities within the context of the restaurant, considering competitor analysis, capabilities, and Porter's Generic Model (cost leadership, differentiation, and focus). The report also includes a PESTLE analysis to assess the external environment. The second task focuses on applying Ansoff's growth vector matrix (market penetration, product development, market development, and diversification) to identify opportunities. The third task examines available funding sources, including bank loans, personal savings, and funding from friends and family. The final tasks outline a business plan for success and assess exit or succession options. The report concludes by summarizing key findings and recommendations for Little Italy Soho's sustainable growth.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Evaluation and growth opportunities in context to the organisation ....................................3
P2 Opportunities while applying of Ansoff's growth vector matrix in prospect to the company
.....................................................................................................................................................6
TASK 2............................................................................................................................................7
P3 Funding sources available for organisation .........................................................................7
TASK 3............................................................................................................................................8
P4 Plan of Business for Success .................................................................................................8
TASK 4 .........................................................................................................................................9
P5 Asses exit or succession options for SB(small business) ......................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Every company set its goals and targets for the growth of the organisation. Planning is an
essential part of the company and every management should adopt some strategies which helps
to expand its business. For every start-ups and new business growth firstly it is necessary to
have some investment which helps to develop the business faster. In context to Little Italy Soho
it is an hospitality sector which is running restaurants in UK. Due to best services it gained many
likes of the customer. In this report, various sources of funding are been discussed and also been
explained about the financial information, vision and mission of this company and its strategies
as well objectives for attaining the business growth. (Abolhasani Taleai 2016)
TASK 1
P1 Evaluation and growth opportunities in context to the organisation
Planning is the important part of the organisation so for every companies growth depend
on the companies goals and achievements. The management of the company should assign the
roles and duties of the employees according to the skills and talents of the workers. Proper
planning is necessary in the company because designing helps to allocate the resources according
individual capability and skills. Little Italy Soho is an reputed restaurant which provide services
to its customer in an effective manner. (Albert 2017). The company is using various technologies
likes various campaigns and digital marketing to the serve the customer in best and suitable
comfortable style. Growth opportunities of the Little Italy Soho restaurant which can be
evaluated by analysing in varies ways are been discussed below:-
Competitor analysis:
This analysed is based on the evaluation and identification of strategies of the
competitors in the market. The product or services which are offered by the company should be
unique and different from the other company. For every organisation there is a strength and
weakness which are essential elements to overcome the rivals of the market. The manager of the
Little Italy Soho , have to evaluate its competitors in the market but finding out strategies which
opted by the competitors for attracting the large number of customer. By unique features in the
services and product quality customers will be long lasting with the industry. Capabilities and
resources and competencies of the firm which helped to competing its customer are described
below :-

Capabilities: The company is focusing on the advertisement and adds on the T.V.
Channels and also through print media and social media which helps to interact with the
customer in an effective way.
Resources: For the company innovative skilled labours are essential asset to their firm.
So many times company uses qualified employees to work with its company and through them
innovative ideas are been applied and higher output can be expected.( Esmaeeli Kazemi 2015)
Competences: Little Italy Soho it deals in hospitality sector and it provides reasonable
price in best quality so that they can compete its rivals in the market and attract large number of
customer in an effective way.
Porter's Generic Model
This strategies is used for competing the activities to achieve the firms goals and
objective which is need to be achieved in the particular time period. It helps to understand how
the company will pursues its competitive advantages across its chosen market. This concept of
model is introduced by Michael Porter. This strategies are formulated to evaluate the actual
position of the firm which states the profit and loss of the firm. Moreover it helps in analyse the
profitability ratio. In reference to Little Italy Soho uses this strategies for the growth of the
company.
The various types of plan of action which are discussed below:-
Cost leadership: This scheme emphases on low cost products to its customer to increase
its customer. Little Italy Soho should offer the low rate of services to its customer and also as
compared to rivals in market. This strategies can help the company in strengthening its command
over the market place and even attract the customer which will rise the result and it can get over
profit margin in an impressive manner.
Differentiation: In this strategy the company make or provide the product and service in
unique way to grab the customer attraction towards its services provided by the firm. By
different way of designing and packing attract the customer.( Gallent 2018).Through innovative
ideas and services the SMEs companies can pull large number of consumers. In context to Little
Italy Soho, this company use the unique promotional activities to communicate the more people.

Focus: The plan of action is based on the market segments. The company adopt new
market trends to achieve the customer attraction towards the firm. In this strategies porters tells
that the company should understand need and demand of the target customer. Firm should
provide the best service quality to its customer so that they can capture the market. According to
Little Italy Soho, the company should provide the best foods and better facilities of arrangement
to its customer. Beautiful ambiances can attract to customer into the restaurant. Proper services
and facility will increase their profit margin and attract the target customer. (Güneralp, Perlstein
2015)
As per the above mentioned statement it can be analysed that for Little Italy Soho
restaurant should adopt the cost leadership strategies to lower the cost and to attract the customer
easily because it is a small firm it will be easy to grab the market.
PESTLE Analysis
This the essential factor in the external environment of the business because it helps to
identify the the positive and negative impact on the business. This analyse aid the company to
work according to the customer satisfaction and demand but keeping in mind about the new
technologies and trends of the market which can attract the customer. In reference to Little Italy
Soho, the firm should focus on the external factor to establish its business in an appropriate
manner. These are some of the factors which are mentioned below:-
P-(Political): In this scenario the government interference affect the business growth.
Due to UK political rules and regulations will impact on Little Italy Soho, which will affect in
the tax policies and even can increase the product price high. (Keough 2015)
E-(Economical): This factor includes certain factors like inflation rates, recession,
growth pattern etc. One of the important part of the economic factor is the cost cutting factor
which affect directly and indirectly in the minds of customer. Due which purchase price get low
and less production process take place. Little Italy Soho, this small restaurant is situated in UK
which is working hard for capturing its business in wide market place but inflation rates its
advertisement affect the business in negative way. And large companies captures the
marketplace which directly affect the small businesses.

S-(Social): Little Italy Soho, the firm influenced by the social factors as the buying
pattern of the customer changes. Due to social media which as impacted the small business
directly. Changing styles and technology will affect the business growth.
T-(Technology): It involves advanced technology which helps to design the product or
service in an attractive style, which can attract the customer and can increase in sales. To attract
more customer it necessary to use the latest technology to expand its business in an effective
way. (Leick and Lang 2018).
L-(Legal): These factor involves laws and ethics which has to be fulfilled by the every
organisation. In context to Little Italy Soho, it can be taken in to consideration that the
opportunity should be followed by all consumer as well as labour. In context to Little Italy Soho,
the laws of the organisation is applicable to whole labour as well as to customer.
E-(Environment): Little Italy Soho, to promote the restaurant in an effect way by social
media advertisement and affect the business in positive and negative manner. Due to climate
change business can be affected through which communication gab is been created.
P2 Opportunities while applying of Ansoff's growth vector matrix in prospect to the company
Ansoff matrix is a strategy planning which are used to identify the availability
opportunities in the market. The business has to set the mission and vision for the organisation
and formulate certain strategies to grow the business. In context to Little Italy Soho, the firm
adopt four strategies which can enhance their growth these are evaluated below:-
Market penetration: This strategy focuses on the sales of the existing product into the
existing market. In context to Little Italy Soho, the company should focus on the same market to
explore more customer and through them number of customers can be targeted within UK and at
same market place.(Mobin 2015)
Product Development: This strategies is used for introducing of new product and
services in the existing market. In context to Little Italy Soho, the company should adopt new
promotional activities to attract the customers. While conducting research and development
activities which help to prompt to attract the customer.

Market development: The focus is on finding new market place for existing product.
Little Italy Soho, the manager should target new market area so that new business expanding can
be done in a better way. Business can be introduced within the UK countries and near by cities.
Diversification: This strategy emphases on new product in a new market place. Where as
it includes higher risk strategies for small business. Little Italy Soho, this incudes huge amount
of investment which will be high burden to the company and even expensive.(Perveen,
Yigitcanlar 2017)
From the above mentioned strategies, Little Italy Soho should use the market
development strategies for the growth of the business. Which can increase the customer base and
even explore the market place which can attract new customer.
TASK 2
P3 Funding sources available for organisation
Every business requires funding which need to expand its business in an effective growth.
The essential part of the firm is identify suitable way of funding option to the business. In
context to Little Italy Soho, the manager needs to evaluate the potential sources of funding which
are available and most effective one. All the sources of funding are evaluated as below:
Bank loan: Bank is best financial institution to the small firms by giving them the loan
facility on a specific rate for a particular duration. In context to Little Italy Soho can use this
option for funding but there are some advantages and disadvantages while raising the fund some
of the points are given below:-
Advantages: Bank loan helps it customer at any time of need of investment. In context to
Little Italy Soho, the owner can apply for the business loan for expand its business, but involves
certain terms and condition.
Disadvantages: It take lot of time for the process because bank do document verification
that affect the business a lot.(Sarver, 2015)
Personal Savings: This helps the business man personal because the person did not have
to depend on any other source of funding. According to Little Italy Soho can use his own
property for the investment to avoid the loan liability.
Advantages: through personal saving it saves the time and even the owner does need to
pay interest for this.

Disadvantages: It involves risk and if the business will not give the positive result then
investment money might not return.
Friends and Family: This is the easier for the small business to take the financial support
from the friends and families. It helps to connect with them and even helps to build up the
mutual relation with them.
Advantages: It is beneficial but Little Italy Soho, if the owner fails to pay instalments
then it not necessary to pay extra interest to friends and family.
Disadvantages: The major disadvantages of this option is that if in case the owner is not
able to pay the amount then it can affect on the relationship with the friends and family.
From the above mentioned options best option of funding can be for Little Italy Soho is
Bank loan. In this option the business owner can take loan without any illegal way but even can
investment the money by faith. Due new technology is been introduced it can be easily be
processed (Wu, 2015)
TASK 3
P4 Plan of Business for Success
Business planning is the important tool for the manager which improves employees
potentiality and design expectation of the investor which works as a guidelines for the
organisation. It is necessary to be framed by the management for effective operational work.
According to Little Italy Soho, the company need to make certain business plan which helps the
manger to allocate the work according to the skill and capability which are as follow:-
Summary of the organisation: The Little Italy Soho the restaurant which is situated in
London, UK. This is restaurant was ranked 3.5 for best Italian food and even due many the
infrastructure of this business is beautiful, even it provide best service to the customer according
to their needs and requirements.
Products and Services: This restaurant provides accommodation facility to its customer
according to customer need. Proper Wi-Fi facility is provide to its customer, bar and drinking
facility is given to the selected customer and even healthy and safe environment facility is
offered to its customer in a best and affordable way.

Mission and Vision: Mission and vision of Little Italy Soho, is to create their
popularities its unique and effective service worldwide. This will increase the number of
customer, hence improve in their profit ratio.
Preparation of Budget: Another thing that is necessary for the manager of the company
is to evaluate the budget according to the company strength and weakness. In the budget it
includes the selling cost of advertisement, operational cost and other expenses based on the daily
based activity. Budget of Little Italy Soho firm described below : Direct Selling 30000,
Advertisement 50000, Sales Promotion 45000, Advertising 5000 so the total budget is 100000 .
Determination of target market: After for making the budget the next step is the
effective segmentation of the market. The target of the market is determined by the business so
the Little Italy Soho its main target is on the youth and even on the family people.
Allotment of communicator: Another step is appropriate communicator that is the proper
resources which is beneficial for the organisation. The Little Italy Soho, the manager who have
to select the right employee to the right job. The experienced candidate can bring the innovative
idea and even communicate with the the clients in an effective manner.
Execution of Plan: After analysing all these things the next step is to implement the plan
in an best and innovative way so that it can comfortable for management and even for the
customer. In context to Little Italy Soho. The manager should evaluate the business strength and
weakness then implement then in an effective way.
TASK 4
P5 Asses exit or succession options for SB(small business)
In context the business, it is necessary to expand its business in other countries. It need to
obtain the positive outcome which necessary to be implemented. In context to Little Italy Soho
the manger need to promote effective tools and techniques of the management. Which help to
gain the the business image at the market place. (Zheng, 2016)
The ways that need to provide the succession of organisation which are follow:-
Advantages Disadvantages
Use of experts knowledge According to the business
experts the employees and
employers of the business give
It may cost highly and due
which it can create among
conflicts among the

suggestions and ideas as per
the condition of marketplace.
employees.
Merger and acquisition: Through acquisition and merger with the big companies this
small firms will get the benefits to improve the performance of the industry.
Advantages : It help to improve the economical conditions of the business
Disadvantages : Due to merger of the company, it can affect the performance of the worker.
CONCLUSION
As per the above mentioned report it can be concluded that the small business
organisation to adopt strategies so that they can gain competitive benefits. Although planning
for growth which is important part of the organisation and even due to effective planning the
goals of the company can be easily achieved. In this report Ansoff model matrix is been
explained and through which the market goodwill can be gained within the shorter period of
time.

REFERENCES
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