Little Italy Soho: Business Growth, Funding, and Succession Planning

This report analyzes the growth strategies for Little Italy Soho, a restaurant and cocktail bar. It begins with an assessment of available opportunities, including the application of Porter's generic strategies and PESTLE analysis to identify market factors. The report then explores growth opportunities using Ansoff's growth vector matrix, evaluating market development, penetration, product development, and diversification strategies. It further delves into evaluating various funding sources essential for business expansion, discussing their advantages and disadvantages. The report also addresses business concerns related to growth, including financial data and strategic objectives. Finally, it examines exit or succession strategies relevant for small businesses like Little Italy Soho. The report concludes with recommendations for sustainable growth.

Planning For Growth

Table of Contents
Introduction:.....................................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1-An assessment of the opportunities available to the business...........................................3
P2 -Opportunities for growth by applying Ansoff's growth vector matrix............................6
TASK 2............................................................................................................................................7
P3- Evaluate various sources of funding ...............................................................................7
Disadvantages ......................................................................................................................10
P4 Business concerns design for the growth that includes financial data and strategic
objectives for measuring up the business............................................................................10
TASK 3..........................................................................................................................................11
P5-Exit or succession strategy for small business................................................................11
Conclusions:...................................................................................................................................12
REFERENCES:.............................................................................................................................13

Introduction:
The goals and targets are been set by the company for the growth of the company. All the
things are depended on the planning and decision making. Through proper planning cost can
reduced and many more things(Ahmed and Bramley, 2015). Guidelines from seniors should be
followed by the employees. Company should work for long term goals. Little Italy Soho which is
London, it deals in restaurant which is cocktail bar and also family friend visiting rooms. The
assignment consist of various growth opportunities in the organisation. Ansoff's growth vector
matrix, funding and sources and its befits and drawbacks, strategies and objectives of the growth
plan. Small and business benefits and objectives.
TASK 1
P1-An assessment of the opportunities available to the business
While planning strategies for growing business, it has been analysed there are broader
areas where opportunities can be grabbed for improving quality of goods and service in any
organisation(Arzaghi and et. al., 2017). When talking about Little Italy Soho, managers have to
forecast and implement marketing strategies taking in considerations two most effective model
form which revenues can be generated as well as increment of market growth in hospitality
industries. Also seeking interest of ample number of shareholders, so that proper allocation of
funds could be effectively utilised in operating business activities in working environment of the
organisations. Many factors have been identified while analysing competitions, for planning
expansion growth of business at global market. Henceforth executive managers of Little Italy
Soho are applying these model in systematic layout while improving quality in services. Some
of these models are mentioned below:
Porter's generic strategies model-
This model briefly defines strategies that are effectively followed by managers in respect
with designing objectives which are required to be attained by management, thereafter capturing
competitive market share while improving quality in production of goods and services in any
organisation in hospitality sectors(Bettinger and et. al., 2016). The key strategies which are taken
in considerations by managers of Little Italy Soho are cost focus, focus, differentiations and cost
leaderships. These strategies are briefed below :

Differentiation Strategies: This strategies consist of differentiating goods and services
as well as introducing these products in market, while sustaining business in competitive
market(Daniels and Lapping, 2016)(Denton and et. al., 2017). The key variants of differentiation
strategies are shareholder value and unlimited resource models which can be effectively utilised
in operating activities. When taking in consideration Little Italy Soho, the manager have to come
up with different plans which include addition of unique quality services, in such a manner that it
attract consumers. By applying this strategies in decision making process, some discounts should
be given to customers who have visited place for first time.
Cost leadership Strategies: In this strategy lowest price of goods are decided by
marketing teams while seeking attention of buyers who will be going to consume the product
while implementing sales-promotional activities in market for increasing market share. When
talking about Little Italy Soho, the executive managers have to plan and forecast price on foods
and beverages, in a way that it could satisfy consumer. Henceforth it will result in customer base.
Focus Strategies: In this strategy leaders give emphasize on focusing cost of a product
that have been introduced in market taking in considerations capturing competitive advantage in
small target markets. In regards with Little Italy Soho, the managers have to focus on quality and
price of variants of foods and beverages which could satisfy customer. This initiatives taken by
management help in attract potential consumer towards the restaurants.
Differentiation Strategies: This strategy comprises of differentiating markets which are
commonly known as niche strategies where an existing product with additional features is been
introduced in market for competing with business rivalries. In reference with Little Italy Soho,
the managers could target a market where there is low competitions, easy to sustain business
while growing in hospitality sectors.
PESTLE analysis:
It is necessary for every organisations to conduct pestle analysis for growing business in
national and global market(Channon and Jalland, 2016). When talking about Little Italy Soho
manager have adopted this model to identify various factors which could directly or indirectly
influence business activities. Some of these factors are mentioned below:
 Political: It is one of the important which direct impact on operations of business
activities as ruling governments have interference in seeking facts on current position of
any organisations in nation. When talking about Little Italy Soho, the leaders could

operate their work while satisfying shareholders and government while sustaining their
business.
 Economical:This factors give emphasis on economic condition of company at
international level, as well as their contributions in development of nation(Eyvindson and
Kangas, 2015). If it is talked about Little Italy Soho leaders should manage accurate flow
of funds in operating business activities in company.
 Social: This factors revolves around updation of recent socio-cultural trends which are
adopted by society. In reference with Little Italy Soho leaders should conduct a research
on different societal culture, while improving quality of foods and beverages to enhance
customer relationship
 Technological: As technologies are rapidly increasing in every sectors where businesses
are successfully growing while taking competitive advantage in market across the globe.
In regards with Little Italy Soho, managers could adapt new technologies like biometric
equipment for their employee's while maintaining their attendance sheet in organisation.
 Legal: This factors involves different laws that are imposed by UK government like
consumer, employment, health and safety, import/export and many more which is
mandatory for every organisation to abide. In context with Little Italy Soho executive
could adapt health and safety law for retaining their employee's by providing healthy
culture, as well as increasing customer .
 Environmental: This factors relates with providing ozone-friendly environment to
society taking in considerations pollution which are affecting health of public. Some of
the environmental laws includes Climate Change Act 2008, Clean Neighbourhood and
Environment Act 2005 and many more are imposed by UK government(Fehring, 2015).
In regards with Little Italy Soho managers could implement Clean Neighbourhood and
Environment Act 2005 in work culture giving major emphasis on pollution ratios level
that are been produced while preparing food items.
From above detailed description, it has been analysed that PESTLE model was found very
effective in operating activities and enhancing growth of business.
P2 -Opportunities for growth by applying Ansoff's growth vector matrix
For capturing competitive advantage, every leader plans a systematic process when
implementing business activities for effective growth and sustainability of any firm(Gallent and

Tewdwr-Jones, 2018). This model was introduced by businessman Igor Ansoff, where some of
important strategies lies in form of matrix. When talking about Little Italy Soho, managers have
adopted this techniques to identifies scope of improvement in their service quality. These
important strategies are mentioned below:
Market Development: This strategies describes that an existing product is been
originated in new market by any firm. If it is talked about Little Italy Soho, managers should
communicate with research and development department, while majorly giving emphasis on
collecting information about current life style which society has adopted and financial status of
target market where expansion of business could effectively take place. These initiative will help
in improving quality of foods and service which hotel are serving to their existing customer.
Apart from the growth there are various risk involved in this strategy, as target customer do not
have much knowledge, about product that are currently introduced in market. Thereafter, it could
be identified that Little Italy Soho might faces some losses due to entry in market. To overcome
this risk, marketing team have to bring awareness about the product through effective
promotional tools.
Market Penetration: In this strategy the company majorly focus on price of existing
product in existing market, where risk is very low, also there could be chances of increasing
market share in competitive business world. When talking about Little Italy Soho, the marketing
supervisor has to plan and estimate the cost on food and beverage items which are delivered to
consumer who are visiting the restaurants. Thereafter some discounts should be offered to primal
customer who have consumed food from home delivery services. As the price of product is very
low there will be gradual growth in target market. The revenue earned may not be satisfactory
but there will be constant risk, while sustaining business in competitive market.
Product Development: This strategy revolves around on existing product with additional
feature that are been launched in existing market by company. Every product have its life cycle
that include various stages like introduction, growth, maturity and decline phase that has to be
monitored by marketing team, while analysing the behaviour of competitor for sustaining
business(Gapsalamov and et. al., 2017). In reference with Little Italy Soho, supervisor could
give emphasis on improving the quality of food and beverages that are been given to the
consumers. While planning for expansion of business, the leader should effectively communicate
with their existing customer, also try to attract primal consumer providing special offers to them.

There is high risk involved when adopting this strategy, as the product is launched in existing
market, there will be no improvement in customer base. The firm will fail in grabbing advantage
in new market. Also there might be chances that loyalty of existing buyers could shift to
competitor's product.
Diversification: This strategies specifies about launching a fresh product in new market.
It has very high risk, as marketer have to critical analyse internal as well external factors of new
market. These factors might have negative and positive impact on business activities which
actually takes place. When talking about Little Italy Soho, the manager could apply pestle
analysis on target marketplace, while planning for expansion of business all over the world. This
strategy have high risk because one wrong decision in new market will have downfall for the
business. The risk could be overcome through accurate assessment of market. So that marketing
strategies are appropriately planned, for attracting potential customer towards the firm products.
From above detailed assessment, it has been concluded that leaders of Little Italy Soho
have implemented market penetration strategy in their decision making process, which could
effectively result in increasing shares. Apart from improving market shares, the managers should
focus on creating positive image in the mindset of potential buyers. Also, it help Little Italy Soho
in achieving competitive advantage, while expanding their business at global market. It could be
said there is risk in cutting the cost of product, that do not generate satisfactory revenues for
firm. To overcome this risk, firm should satisfy customer by providing quality products to them.
Henceforth help managers to increase loyalty of consumer towards the firm.
TASK 2
P3- Evaluate various sources of funding
Financing is the blood of the organization without funding it is not possible so that is why
proper fund will lead the company growth and also will affect the higher growth in the company.
Financing is the essential part of the organisation which fulfil all the requirements in the
business(Kumar, 2016). The main goal of the company is to collect sufficient fund for day to day
operational activities. Through adequate funding company can easily set a goals and achieve at a
particular time duration. The owner of Little Italy Soho restaurant is planning to expand their
business. For this, they will be required adequate amount of funds so that business expansion
activities can be done in effective manner. In this regard, manager of Little Italy Soho have

suggested some of the feasible sources of funding options to the owner so that best among them
can be selected. There are certain types of sources of funding which are discussed below:-
 Internal sources: It is capital which is generated within the internal organisation which
are bank loan and is arranged through different the financial institutions(Lines and et. al.,
2015). It includes the sales of assets which also control the day to day activities of the
business. There are different kinds of loan system which help the organisation to expand
its business.
 Bank loan: The bank is a source of finance which provide loan facilities to their
customer(Perveen and et. al., 2017). It provides the interest rate and it is the near by
leading institution. The Little Italy Soho restaurant manager can go for the bank loan
option for expanding the business Bank financing is a tricky as it involves varieties
financing options. There are pros and cons regarding to bank loan which are as follow :-
Advantages
 Banks offers various range of funding options which fits the needs of the customer.
 All the work is done in a documented format and easily to apply loan from the bank.
Disadvantages
 The financing options can be confused if lack the knowledge about the funds offered by
the bank.
 It is time consuming process which includes large number of document verifications.
 Friends and Family : For starting any business friends and family relations helps the
person to expand its business. In the business friends are the important part through
which goals can be achieve from them . Funding of the various amount will generate the
work and will create the input and out of the organisation(Sarver, 2015). It can be seen as
the seed investment in which required amount can be grabbed from close friends. In
context to Little Italy Soho can contact for the fund from the nearest people or the closes
person. There are some advantages and disadvantages which are mentioned below:-
Advantages
 Funding is obtained due to quick relation with friends and family. With a good relations
with families can help in need.

 Investment are more flexible and potential and is also said to be pay back method.
Disadvantages
 Every time investment is not available with friends which can create issues and problem
at that particular time.
 Due to some inconvenience among the friends group or family lending of money is not
possible .
 Venture capital Funding: The important source of funding is providing loans to new
start-up and micro finance group(Sarin, 2019). For the long term goals the company can
achieve its target through venture funding process. New companies venture funding helps
to achieve the goal of the organisation. Main focus of the funding is provide the platform
of new growth towards and task of the company. It involves the niche activity which
includes multiple player who innovate the industry in an effective manner. It has also
growth in the international market which can leads the company to high growth.
Advantages
 These pool consist of various partnership members who deals in various enterprises
sector. Hence new innovative idea can be generated.
 Due private equity trends which leads to high fund into various group of start up sector
Disadvantages
 Due to focus in one sector in the hospitality sector will focus at one sector which can
affect the other industry.
 High funding can create the manipulation which can leads effective growth in the
market.
As context to the Little Italy Soho who can to focus on the venture fund which can help
to grow in the market and also can create goodwill in the market sector(Sophia, and Owuor,
2015). Due to partnership of various member of the organisation huge investment can be
expected and can lead the market in the hospitality sector.
External sources: external source of finance which comes from outside the business. It
is a fast growing with new market strategies and acquire new equipments. The external sources
includes debentures, team loan, trade credit, bank overdraft. This sources helps to raise in
borrowing the capital for business needs and it makes more manageable. It is a unique resource's
which directly store the information(Tian, 2016). In reference to Little Italy Soho should

consider the external sources for expanding the business. There are certain advantages and
disadvantages of the external sources which are as follow
Advantages
 Bigger Economies Sale : Large enterprises are more efficient then the smaller ones.
They have the power to bargain with the supplier which can increase the fixed cost.
External source of Finance make adequate complete group in a large point of view.
 Faster Growth Rate : The external market source is expanding its business in faster
growth thus also work in operation work. The large scale implies in a greater marker to
provide benefits to the customer.
 Ownership Loses : In the external market the ownership loses his authority while
making decisions in the organisation.
Disadvantages
 External environment sometimes creates issues due to market change that is changes in
technology
 Competitors are important part of the external source but due to effective market rival can
create more complication in the business.
P4 Business concerns design for the growth that includes financial data and strategic objectives
for measuring up the business
The business design is a important document of the business. It has its value and
importance in the company(Wey, 2015). It helps to set the goals and objective of the company
which in a short period of time(Wolf and Floyd 2017). Thus it is important for Little italy soho
which has to grab the future opportunities in an effective manner. It includes companies vision
and mission, objectives, goals which support the business activities. As Little italy soho is also
trying to expand its business in new innovative way. It includes some aspects which are as
follow:-
Vision: The vision of the Little italy soho is promoting better awareness about towards
the healthy food product and best customer service
Mission: The of the Little Italy Soho is to provide the best quality of food and to earn the
maximum profit.

Objectives: The main objective is to expand its business in other parts of the country in
next 3 years
STP: (Segmentation, Targeting, Positioning ) these three are important essential factor of
the business which has to be analysed properly and the business out can be maximised.
Segmentation: it means the group of the gender to whom the company wants to launch a
product or services. The main target is on health conscious people.
Targeting: In this company targeting generally the customers belongs to the age groups.
of between 18 to 45.
Positioning: Recently, Little Italy Soho is located at London in which they use market
onset strategy to pull large number of customers by providing them quality products and services
at cheap cost.
In this, Little Italy Soho is like to attract the young generation and old people as well
who are more self-conscious towards their health . By this, company increase the chances of
gaining larger market share from its competitor(Wu, 2015). In 2007 dinning rooms and cocktail
bar is been added whole websites and infrastructure facilities were modified. Through these
transformation company gained more customers and even increased the number of consumers
and friends and families.
TASK 3
P5-Exit or succession strategy for small business
Mostly businessman have applied various methods for growing business in an effective
manner. The most important factors include high risk taking capabilities which every
entrepreneur should inculcate while operating business activities(Daniels and Lapping, 2016).
The essential strategies which every organization implements are commonly known as exit and
successive strategy. The exit strategies defines when there are low amount of opportunities of
growing business due to financial crises faced by any organization. The termination of business
takes place where adverse effect of external factors are directly production activities. Whereas
succession strategies describes as systematic framing of activities and time that are represented
in the form of chart using work breakdown structure for operating work and successfully
planning expansion of business. When talking about Little Italy Soho the managers have

implemented succession strategies while growing and expanding business at global market.
Some of tools in succession strategies are mentioned below:
Use of internet: The internet are accepted by millions of user all over world. With
updation of technologies, the marketing team of Little Italy Soho have adopted various tools in
planning strategies like development of different website and smartphone applications in an
effective manner(Denton, and et. al., 2017). Taking in consideration recent trend the marketing
managers have implemented the best effective online source that is social media through short
video advertisements in Facebook, Instagram and Twitter while attracting potential
customers .Henceforth, customised product and service could be delivered to consumers which
will result in achieving aim set by every organisation.
Advantage: The main advantage of using internet as most buyer are online user, it is
helpful in promoting sales offers and rendering quality services for enhance customer
relationship.
Disadvantage: There are chances that personal information of customer are been hacked
due to conflicts between partners. Henceforth will lead in gaining market profits in cut throat
competitions.
Merger and acquisitions: This is most effective techniques in successive strategies as in
merger small businessman join hand with other entrepreneur in order to gain competitive
advantage in local market(Eyvindson and Kangas, 2015). In acquisition tool a whole business is
been captured by big companies or firm who wants to explore their business at global
market(Gallent and Tewdwr-Jones, 2018). There are different practises which are followed by
every organisations in order to sustained in competitive market, also attaining advantage that will
help in growing business across international market. When talking about Little Italy Soho
leader can find out local partner who can merge with them while expanding business.
Advantage: The main advantage while following this strategies is that it will help in
providing wider scope of business at global market. There will be brand recognition among the
target population.
Disadvantage: The main disadvantage is that improper communication between partners
might result in downfall of business. Also, market profit will be distributed between partners and
there are possibilities where chances of conflicts could be arised.