Business Growth Strategies & Funding: Marshfield Bakery Ltd. Analysis

This report provides a comprehensive analysis of growth strategies and funding options for Marshfield Bakery Limited, a UK-based private limited company. It begins by examining key considerations for SMEs in evaluating growth opportunities, utilizing Porter's generic strategies and PESTLE analysis. The report then evaluates growth opportunities using Ansoff's growth vector matrix, highlighting market development as a suitable strategy. Furthermore, it assesses potential funding sources available to the business, discussing their benefits and drawbacks. The report also outlines the design of a business plan for growth, including financial information and strategic objectives for business scale-up. Finally, it assesses exit or succession options for small businesses, explaining the benefits and drawbacks of each option and recommending an appropriate course of action.

Part 1
Planning for Growth
Investing in the Future

Table of Content
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
LO1..................................................................................................................................................1
P1: Analysing the key consideration SMEs that should be considered for evaluating growth
opportunities 650.........................................................................................................................1
M1: Discussion on the options for growth using a range of analytical framework to
demonstrate the understanding of competitive advantages 250..................................................2
P2: Evaluate the opportunities for growth applying Ansoff’s growth vector matrix 350...........3
D1: Critical evaluating the specific options and pathways for growth, taking into account the
risk and how they can be mitigated 60.........................................................................................3
LO2..................................................................................................................................................3
P3: Assessing the potential sources of funding available to businesses and discussion on
benefits and drawbacks 650.........................................................................................................3
M2: Evaluating the potential sources of funding and justification for the adoption of
appropriate sources of funding 50................................................................................................3
D2: critical evaluation of potential sources of funding with justified argument for adoption of
particular sources based on organisation's need 50.....................................................................3
LO3..................................................................................................................................................3
P4: Designing a business plan for growth that include financial information and strategic
objectives for business scale up 200............................................................................................3
M3: Business plan for growth and securing investment, setting out strategic objectives,
strategies and appropriate frameworks for achieving the objectives 60......................................3
D3: Presenting a coherent and in-depth business plan that demonstrate knowledge and
understanding of how to formulate, apply and achieve business objectives successfully 60......3
LO4..................................................................................................................................................3
P5: Assessing exit or succession options for small businesses explaining the benefits and
drawbacks of each option 240......................................................................................................3
M4: Evaluating the exit or succession option for small businesses comparing and contrasting
the options and making valid recommendations 120...................................................................3

D4: Providing critical evaluation of exit or succession options for small businesses and
deciding an appropriate course of action with justified recommendation to support the
implementation 50.......................................................................................................................3
CONCLUSION 150.........................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Planning for growth is an essential strategy for effective business. It state to formulate
such effective plans for an organisation which are able to increase its productivity as well as
contributes in the development of organisation. Every enterprise formulate its own unique and
distinct plans to enhance the opportunities from various sources in order to achieve positive
impacts. It is essential for an business organisation to take initiative regarding the utilisation of
resources to keep a track on it (Banafea and Ibnrubbian, 2018). The report is based on the
Marshfield Bakery limited, it is a private limited company in UK. The business company have a
turnover of 5 million dollar with gross profit of one million dollar. The company manufactures
handmade cakes, snack bars, biscuits and seasonal goods for distributing throughout the UK and
Europe. The report includes the analysis of key consideration of evaluation of growth
opportunities in context with Marshfield bakery limited. In addition to this, the report evaluates
opportunities for effective growth by Ansoff's matrix. Furthermore, there is a description of
different source of funding and planning growth design including financial information and
strategic objectives for business scale up.
MAIN BODY
LO1
P1: Analysing the key consideration SMEs that should be considered for evaluating growth
opportunities 650
The organisation should make effective plans for eliminating the competition and be in
the superior position to avoid the threat and utilise the opportunities it get. Marshfield bakery
limited adopted various strategies in order to get the profit and overcome the threats of market.
The strategies are described by Porter's generic model which are:
Leadership cost: The business should apply the strategies for lowering the price range or
selling the products with some discount(Boloukat and Foroud, 2018). Such strategy can be
beneficial for a business organisation like Marshfield bakery limited. This strategy can be
beneficial in overcoming the competitive edge by increasing the sale and revenues.
Differentiation: Strategy of differentiation is used for improvising the overall sale and
differentiating the business from other market place organisations. The Marshfield bakery makes
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product which are unique from the products of marketplace. The strategy is benefiting it in
standing out within the market.
Focus on cost: The strategy explain to focus on cost in order to enhance its target in a
prominent manner. The Marshfield Bakery limited can improvise its sale by focusing on the
targeted segment of people.
Differentiation focus: The business organisation should map its strategy for evaluating
the part which require specific evaluation. With context of Marshfield Bakery they should
develop strategies for controlled manner formation and use of raw materials(Cox, 2018).
The above discussion on strategies for effective planning, the Marshfield Bakery should
go for cost differentiation strategy in order to reach the high market segmentation and generating
high revenues.
PESTLE Analysis
PESTLE Analysis is a tool for examination of influence of external environmental factor
on functioning of business. The analysis is helpful for an organisation to establish its venture
globally. The PESTLE Analysis for Marshfield Bakery limited is as:
Political factors: These factors are accompanied with the rules, regulations and political
stability for a particular country. It includes tax related policies, government control etc.
According to the political environment of UK, the political factors are dependent over kind of
government.
Economical factors: This factors states the employments rates, inflation and exchange
rates of any industry. The economical factors analyse the economic aspects of any industry and
business(Fulk, Watkins and Kruger, 2018). The Brexit implication in UK have generates the
negative consequences in business strategies of Marshfield Bakery company and Marshfield
Bakery required more effective way to return the output through their investment.
Social factor: The social factor is based on age, location, area, gender, behavioural,
lifestyles, consumer beliefs etc. This factor is related to the needs of customers through their
expectations. United Kingdom is developed country having standard life styles of peoples. The
social factor is very helpful for the bakery business of Marshfield Bakery because of high
popularity towards the bakery products due to the life styles of developed country.
Technological factor: The technological factor is based on new techniques, instruments,
and machines used in industry for increasing the profits of any industry. This factor also carry
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the automation and cyber security. The technological factor in terms of Marshfield Bakery is
very effective because the company has modified the new machines and techniques to get better
output.
Legal factor: This factor describes the regulation related to industry which includes the
working policy, disciplinary policy of company. This factor also hold the licences as well as
protection law(Hanlon, 2019). The Marshfield Bakery has very strict legal factor towards the
working policy and company has enforced their employees to work accordingly to increase the
best product service in terms of bakery items.
Environmental factor: This factor help the industry to work according to the
environmental policy which reduce the pollution and enhance the healthy environment.
Marshfield Bakery work according to the management of waste and water. The work policy is
also based on protecting the natural resources. The effective way of Marshfield Bakery has
increase their survival in the markets.
M1: Discussion on the options for growth using a range of analytical framework to demonstrate
the understanding of competitive advantages 250
The growth is the effective way to demonstrate the competitive advantages of any
industry. The way of understanding the competitive advantages in Marshfield Bakery Company
using Porter five forces are as follows:
Porter five forces
The porter's five forces is the study of models which identify the five forces which is
competitive and useful for knowing the strengths and weakness of any industry. This tool of
business strategies had developed by Michael Porter to analyse the profitability of industry(Jiang
and et.al., 2021). The elements of Porter five forces in increasing the competitive advantages are
described below:
 Competition: This force defines the competitions in terms of products quality and
services of the rivalry industry. The competition of Marshfield Bakery Company to other
bakery industry is very high because of high profits in bakery industry.
 Power of suppliers: The power of suppliers is to increase the cost of products. The
number of suppliers in Marshfield Bakery Company is low because this company is
directly connected to farmers for their raw materials.
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 Buyer's power: This force is based on number of customers. The number of customer is
low then the power of buyer is high. In the case of Marshfield Bakery Company the
power of buyers is high because of low number of suppliers.
 Threats by substitutes: The same kind of goods and product's availability in the
markets are termed as threat by substitutes(Jiang and et.al., 2021). This threat is very high
in Marshfield Bakery because of more rivalry in bakery industries.
New entry threat: The threat of new entry in bakery market is low because of more competition
and branded industry so Marshfield Bakery have low threat to new entry.
P2: Evaluate the opportunities for growth applying Ansoff’s growth vector matrix 350
Ansoff matrix is a strategis tool. This strategies tool is utilized in many business
organization in order to choose the better business expansion plan. As this tool helps in business
organization to increase the productivity and efficiency. This tool or model help the organization
to acknowledge the better strategies in order to get highest paid advantages as well as growth
plan to earn more profit. The Ansoff's matrix has four basic growth strategies which are
mentioned such as market penetration, product development, market development and
diversification.
 Penetration- In order to expand the business in the market, this strategies is used by the
organization. The expansion of business is based on the current market trends with the
current offering situation. Basically it explain that products are selling out on the basis
existing market trend. This strategies were implemented by those business organization
who are willing to expand their business in order to meet the need and demand of the
customer. In relation of Marsh field bakery, as this bakery also use this strategies to
promote their product to the existing customer in order to satisfy their need or
demand(Kaihlanen and et.al., 2019).
 Development- Those business organization who is willing to set their business to new
market line in order to increase customer loyalty along with the profit. In consideration of
Marsh field Bakery, as they use this strategies to expand their organization to all over the
globe. The expansion of the organization can create a lot of opportunities as well as
profit. This strategies can increase the sustainability in competitive market.
 Development of product- This strategies is used by the organization in order to sell their
products in the existing market. In context of Marsh Field Bakery, they use this strategies
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in order to expand their business to capture the large amount of customer. This strategies
cover the huge market line along with create the awareness about their organization offer.
 Diversification- This strategies is used by the organization in order to create a new plan
for making a business(Lee, 2020). This strategies is used by the organization for selling
the product in the existing market which are not related to the original offering. In
relation to Marsh field bakery, this strategies is used in order to acquire the new market
line by offering their product in the market.
Evaluation
As per discussed above strategies, they can summarized that the appropriate strategies
followed by the Marsh field bakery is Market development.
D1: Critical evaluating the specific options and pathways for growth, taking into account the risk
and how they can be mitigated 60
In order to evaluate the beneficial strategies for mapping the company performance as
well as to attain the competitive advantages. In context to Marsh field bakery, there are some risk
factor such as investment, policy, manpower or many other factors which can create a barrier in
growth of the organization.
LO2
P3: Assessing the potential sources of funding available to businesses and discussion on benefits
and drawbacks 650
There are the variety of methods from which the funds can be collected for the
organisation growth(Levine, 2020). In context of Marshfield bakery, they gather their funds from
the market. Some of the funds gathering methods are mentioned below:
 Internal source of finance- From this source, the funds can be gathered in form of internal
dimensions of the company like selling some parts of business asset as well as utilising
the retained earning. Some of the optimistic or pessimistic view are discussed below
 Optimistic- This source of funding is highly effective within the nature. So, Marshfield
bakery can utilise this method for better financing as they used their retained earning. As
this source of funding does not bound to any kind of restriction.
 Pessimistic- As this source of funding method can unsolved the mitigated amount of
profit. As per Marshfield bakery, it is the small organisation, so it may not make huge
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amount of profit from the organisation. In this case they may not be able to solve the
bankruptcy.
 Finance from external source- This source of financing can be gathered from the external
source like bank loan, venture financing loan, debenture as well as many other
source(Meng, Sun and Zhao, 2020). In relation of Marshfield bakery, the organisation
can utilised this source of fund in order to expand their organisation all over the globe.
Some of the external source are explained below:
Bank loan- This is the kind of external source of finance in which the loan is taken under the
bank with an agreement to repay the amount in addition of some fixed amount of interest.
This source of finance may also have some optimistic or pessimistic point. Which are mention
below:
Optimistic- It is work as a catalyst that give high assistance to company in order to provide as
well as acquired funds. This funds utilised by the Marshfield bakery in different manner
according to their need. The Marshfield bakery maintain an important place in the marketplace.
This is happen because Marshfield bakery will able to repay their loan amount at an appropriate
time.
Pessimistic- it is the major responsibilities to reduce the burden liability, this is happen due to
less profit is earned by Marshfield bakery company(Mungai, 2018). Along with that, the bank
loan have some strict or rigid polices which are related to repayment of loan.
 Bank overdraft- Facilities is provided by the bank to their client in order to provide them
a credit limit. They can used their credit limit by the bank in return of sum fixed interest.
This methods method have also some optimistic or pessimistic point which are
mentioned below:
Optimistic- this method need less paper work or fewer process as well as most flexible methods.
This is the easy method to acquire funds by the Marshfield company. They elaborated their
record in order to track funds of financial trades.
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Pessimistic- This funds method involve within the high rates of interest. Apart from this, bank
ask any time for repaying the loan or bank overdraft, this generate problem to Marshfield bakery
company in order to arrange the funds in a short time.
 Crowd Funding- The funds are organised from the form of pool people are refered as
crowdfunding(Oxford Analytica, 2018). This funds method have also some optimistic or
pessimistic point of view which are mentioned below:
Optimistic- This funds method is helpful for Marshfield bakery company, as the funds were
offering within the public platform. This create a huge rate of opportunities for enhancing the
customer base. This will also give feedback from the investors in which their modification can be
introduced in expansion plan. This plan is an effective plan in relation with the customer needs
and demand.
Pessimistic- This funds method created an negative image in marketing, in case of failure of
expansion plan. The high risk beard by the organisation lead them to face the high risk of losses.
 Peer Funding- This methods of form is generated from the equity finance in order to help
the venture capital start-ups or provided fund(Parker and et.al., 2019). This also have
some optimistic or pessimistic point of view which are mentioned below:
Optimistic- The funds generated from this method need less amount of interest in return. It also
provide high accessibility due to which the Marshfield bakery company obtained the funds
without facing any hard time.
Pessimistic- This funds method is a risky method to obtain funds for high credit risk. Their is no
insurance facilities on behalf of the government.
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M2: Evaluating the potential sources of funding and justification for the adoption of appropriate
sources of funding
There are various sources of finance and justification that can be taken into consideration
by the Marshfield Bakery company as crowd funding. Crowdfunding helps company to collect
more funds from the investors and people in small parts(Saber and et.al., 2019). Every company
want to provide growth to their business and also want to track their investment needs for
expansion purpose.
D2: critical evaluation of potential sources of funding with justified argument for adoption of
particular sources based on organisation's need
There are various sources available in the marketplace which can satisfy the financial
needs of the Marshfield Bakery company and these sources includes Crowdfunding, Capital
venture, peer funding and other sources. These sources help company to raise capital to run their
day to day activities and also fulfil the needs of any investments.
LO3
P4: Designing a business plan for growth that include financial information and strategic
objectives for business scale up
Planning for growth is an important aspect for the business because it connect with the
operation activities and the strategic growth of the company. It is essential for the company to
properly follow the path of strategic process with the efficient utilisation of the resources and the
efforts of the employees and workers(Sachs and et.al., 2019). Adaptation of technological
advancement and structure is beneficial for the the Marshfield Bakery company in order to serve
best quality products which are different form their competitors. There are many goals of the
company which are discussed below:
Short term goals: The short term goal of the company is to increase trust fo the consumers and
provide best quality of products. Company is planing to enhance the quality of the product with
the help of technology and consumer feedbacks.
Long term goals: Marshfield Bakery company is planing to increase the consumer base of the
organisation which is profitable in the future because it increase the demand of the company
products.
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Strategic purpose: The main motive of the company is to maximise the probability levels which
would helpful to expand its operations in the future. It will also working in order to capture the
large market also focusing on decreasing cost of production which will help company to sustain
in competitive market.
M3: Business plan for growth and securing investment, setting out strategic objectives, strategies
and appropriate frameworks for achieving the objectives
To perform their operations smoothly Marshfield Bakery company needs financial
support from the market and they need to raise funds to meet requirement of the business(Trepci,
Maghelal and Azar, 2020). It is also critical to mange their funds and resources effectively and
efficiently. Company has to create budgets which provide knowledge to manage their expenses
and incomes in proper manner and budget helps them to enhance their financial abilities.
D3: Presenting a coherent and in-depth business plan that demonstrate knowledge and
understanding of how to formulate, apply and achieve business objectives successfully
A business plan is prepared for a specific goal or objective of a company or individual. A
plan is a systematic process which is formulate by the company. To apply plan in the firm, a
manager need to convey the plan to the employee and motivate them to follow the plan and its
guidelines to success in the plan. Company has to apply various motivational theories and
training to the employee which increase the confidence of the employee towards the goal.
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