Strategic Growth Plan for Marshfield Bakery: Funding & Exit Options

This report provides a comprehensive analysis of growth opportunities for Marshfield Bakery Limited, utilizing frameworks such as PESTLE, Porter's Generic Strategies, SWOT, and VRIO to evaluate key considerations. It assesses growth avenues using Ansoff's Growth Matrix, recommending a market development strategy. The report also explores potential funding sources, weighing the benefits and drawbacks of each, and designs a detailed business plan with financial information and strategic objectives for scaling up the business. Finally, it evaluates exit and succession options for the small business, comparing and contrasting the options and making valid recommendations for Marshfield Bakery Limited. Desklib provides access to similar solved assignments and past papers for students.

Planning for growth
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................4
P1 Analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.........................................................................4
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................7
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context................................8
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................8
M2 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context................................................................10
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business..........................................................................................10
...................................................................................................................................................13
M3 Develop an appropriate and detailed business plan for growth and securing investment,
setting out strategic objectives, strategies and appropriate frameworks for achieving
objectives...................................................................................................................................13
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................14
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations.............................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business growth plan is the statement that includes ambitions desired by the business for
future and also the targets set and goals desired by the company. It therefore considers the
present position of business, the place where business want to reach from future perspective and
also the plan that will help in achieving the vision. The report below will be prepared in
reference to the Marshfield bakery Limited incorporated on 13 January 2005 and is a private
limited company. The company therefore actively engaged in manufacture of rusks and biscuit
and preserved pastry goods and cakes. Company is currently operating with 68 directors (Miao,
2019). The report will cover the evaluation of growth opportunities by applying the Ansoff
growth vector matrix. An overview with respect to source of fund will also be covered in report
and this will also include some advantages and disadvantages associated with each source. A
well formulated business plan that will depict financial information and strategic objectives of
Marshfield Bakery Limited will also be covered in the report. The report will further cover the
entry and exit option s available with the company and negatives and positives associated with
each. The report will be therefore concluded by giving appropriate recommendations and
justifications.
TASK
P1 Analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
Evaluating growth opportunities of Marshfield Bakery Limited will involve various
model that helps in better understanding of the way that will help in prioritizing company's
resources and obtain corrective action to solve and highlight the problems. Discussing each
approach in context to Marshfield Bakery Limited-
PESTLE ANALYSIS-
This analysis helps in evaluating the opportunities that is available outside the business
environment by including factors like political, economic, social, technological, legal and
environmental (Golitsyna, 2021). This will provide complete understanding of various elements
that can affect the business.
 Political- These factors have the tendency to deploy huge influence on the business and
also demonstrates the long term sustainability of business. Business environment

therefore is highly influenced by regulations and taxation policies imposed by the
government. Marshfield Bakery Limited is presently operating in an area where it is
facing some political instability because of some external and internal conflicts. The
company overtime has gained the capability in understanding and proper handling the
chaos that promotes the company in achieving the growth objectives.
 Economic factors- this factor have impact on the profitability of business and its
performing capability and involves inflation rate, foreign exchange rates, interest rates
and also the economic growth patterns (Marinovic Matovic, 2020). Marshfield Bakery
Limited in aid of making decision with respect to global expansion is recommended to
keep in pace with efficiency of international market and also partner with the countries
that will bring on more capital on the ground.
 Social Factors- this represent the traits like social values, norms and also the customs of
society in which business is operating its functions. These factors will depicts the
consumption behavior in reference to Marshfield Bakery Limited. In aid of adapting the
most successful marketing strategy, Marshfield Bakery Limited observe the consumer
preferences in depth and also identify their consumption and spending pattern.
 Technological Factors- it represents the innovation in technology that affect the
operations in wider term in favorable or unfavorable manner. In order to achieve the cost
reduction, innovation and objectives of value creation, Marshfield Bakery Limited need
to adopts well developed technology infrastructure. The company thus keep a balance
with the ongoing and emerging technology trends.
 Legal Factors- this has two side effect that is a business is abides by the external laws
that is made by government and company's internal policies. This includes consumer law,
safety law and labor laws. Marshfield Bakery Limited in this context strictly comply with
the intellectual property laws that makes its safer from other similar business by
safeguarding the patents from cloning.
 Environmental factors- In order to sustain, businesses are required to comply with the
environmental laws (Haddad, 2021). This includes climate change and global changes.
Marshfield Bakery Limited is integrating smoothness and ease of its supply chain
operations and also considers certain weather conditions that is to be efficient and at
operational cost.

Porter's generic strategy- this strategy provides a way in which business can achieve the
competitive advantage. This include the combination of four generic strategy that is
differentiation, cost leadership and focus (Chereau and Meschi, 2018). In reference to Marshfield
Bakery Limited- Cost leadership- by pursuing this strategy business tends to become the low cost
producer in the marketplace. Marshfield Bakery Limited is the low cost producer as it
manufactures the pastry and biscuits in huge quantity to achieve the economies of scale. Differentiation strategy- pursuing this strategy would not involve any additional cost in
attracting the customers rather it is adding features to the product. Marshfield Bakery
Limited is using this strategy by using only premium quality ingredients in pastries and
also developing special recipe for new pastry. Cost leadership focus-in this business deliver its attention to the specific market and
almost similar to cost leadership strategy. Marshfield Bakery Limited is delivering its
pastry to the customer who have demands of vegan and organic pastry. That is company
is focusing on particular segment.
 Differentiation Focus-this is related to providing of more attention on developing the
features in a particular segment. Marshfield Bakery Limited is implementing this strategy
by giving a delivery service to the customer in comparison to other organic bakeries are
not doing so.
SWOT analysis- this analysis provide an insight into internal factors like strength and weakness
of business and also some external like opportunities and threats. In context to Marshfield
Bakery Limited-
Strength
 the company have online ordering
facilities (Kumar, Dabas and Hooda,
2020)
 a separate section of “Gluten free” is
available in the menu
Weakness
 lack of exercises in context to branding
and marketing
 Operating only in limited markets of
UK
Opportunities
 availability of bigger scope in context
to widening of menus and locations
Threats
 Robust competition from the companies

 in order to attract families, major focus
on branding towards kids.
offering exact same products.
 Change of preferences of people
towards the healthier products.
VRIO model- this model provide an in-depth understanding of the usage of resources to the
business in order to gain the sustainable competitive advantage (Adem, Çolak and Dağdeviren,
2018) . In context to Marshfield Bakery Limited- Value of the resource- this is associated with the capabilities and needs that the product
of business fulfils and provides. Therefore the Marshfield Bakery Limited is highly
valuable in context to marketing expertise as the company is competing on the basis of
differentiation. Rareness of resource- it is the key to success and therefore is associated with the
availability of business resources. The rare features of Marshfield Bakery Limited is its
supply chain network and also its leadership team. Imitation of risk- this reflects the ability of imitating the solution of competition in the
own business model. The risk faced by Marshfield Bakery Limited that its pricing
strategies can be copied by the competitors, the presence that company has created can
be imitated by competitors but only on things can not be copied is the track record of its
leadership team.
 Organisational competence- this brings on the internal information of business about its
operating manner and also its structure of success. The way Marshfield Bakery Limited
completes its projects have the competitive advantage and with respect to other retailer
and wholesaler company have sustainable competitive advantage.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
To assess all the opportunities of the market that is essential for a business to grow,
Ansoff growth model is used which can help the business to acquire a competitive edge in the
marketplace and increase their overall profitability (Toften, Mora and Hammervoll, 2018).
This model suggests a strategic planning that enables the company to evaluate the growth
opportunities which helps the company to acquire a competitive edge in the marketplace in the
future.

 Market penetration: The business focuses on selling its products in the existing product
in the existing marketplace. It is the least risky strategy, as the businessman have
acquired all the knowledge that are required to expand its market share (Qiu, 2022). Market development: This business strategy focuses on introducing existing products in
a new marketplace which allows the business to expand its market reach and connections
which enables the company to have a strong customer base. Product development: This business strategy focuses on introducing a new product in
the existing marketplace which allow the business to expand its operations in that
specified industry.
 Diversification: This is a strategy that focuses on bringing a new product in a new
market. This strategy involves the highest risk as it may effect the operations of a
company and can effect the profitability of an organization.
As per the above discussion it is advisable to the Marshfield Bakery Limited should adopt
the Market development strategy which allows the business to acquire a large market share to
provide their services . It enables the company to strong customer base and lots of opportunities
which are prevailing in that market.
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context.
A business market is full of competitors , it can make a business loose its share in the
marketplace. There are various other factors as well which can impact the growth and success of
an organization. To deal with the negative impact of this factors in terms of productivity and
profitability it is essential to assess all the factors efficiently. In order to succeed and acquire
growth in the marketplace , there are various theories and models that can be implemented by the
firms to identify the opportunities and identify their strengths which can help the business to
grow and succeed in the long run (Scheepers and Swart, 2020).
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
In order to expand and establish a new enterprise, business enterprises needs funds which
they can acquire either from an external sources or an internal source. There are various potential
sources of funding that are available to business depending on the requirement which can

contribute to the financial resources of any enterprises. In context to Marshfield Bakery Limited,
the potential sources of funding are discussed as below-
 Personal investment: It is the most common source of funding which involves the use of
own saving and funds to invest in the business operations. It enables that business to have
strong commitment towards a specific project and ready to take further risks (Sedash and
Kameneva, 2021).
Advantages:
1. Quick and convenient: It is an easy way to invest without any interference and can be
applied at any time whenever required.
2. Do not require to borrow money: The owner themselves can invest the funds and fulfill
the needs of the business.
Disadvantages:
1. Inability to invest funds: It may enable the owner to not have additional funds for their
routine activities which may results in inconvenience and decrease in productivity of the
organization.
2. Higher interest: Owner can charge a higher rate of interest on the funds which is being
provided to any enterprises which will increase the cost of overall production.
 Venture capital: It is not suitable for all investors, these investors are looking for high
technology driven organizations which have high growth potentials in this sector such as
information technology, communication and biotechnology .
Advantages:
1. Business expertise: Venture capital can provide financial resources and along with it also
provides financial assistance to the enterprises as where to invest in order to acquire
profitability.
2. Additional Resources: It can provide assistance in various other areas which includes
legal, taxation, personal matters and more (Put, Maddens and Muyters, 2022).
Disadvantages:
1. Minority ownership status: It can lead the venture capital company to loose its share in
the enterprises depending on the size of the firm.
2. Loss of control: It has a drawback that the company may loose its ownership to the
venture investor depending on the equity hold by them.

 Angels Investment: These are the wealthy individuals which are being able to invest in
the small enterprises in exchange of the equity. Angels investors use their own funds to
provide potential funds to enterprises.
Advantages:
1. Access to investor knowledge and networks: Enterprises are able to get the knowledge of
the capital investor and can use it to acquire a good share in the marketplace (Sombié,
Johnson and Aidam, 2018).
2. Better discipline: It is an outside source of investment which are being invest properly to
get the maximum gains.
Disadvantages:
1. Less transparent: The operations of an angel investor are not recognizable due to non
disclosures of facts and operations which make difficult for an outsider to investigate.
2. Control: Angel investor holds share of equity in the organization which leads to loss of
full control .
Marshfield Bakery Limited should use Angels Investor, as a source of potential funding to
expand its market share. It is a convenient source for funds along with it, also provides the
expertise knowledge and skills to the enterprise to invest their funds.
M2 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context.
Raising funds from outside can help the organization to meet its daily requirement
effectively . It help the organization to have a smooth functioning of its activities, by speeding up
the work. It can help the organization to increase its productivity, which helps the company to
gain a competitive edge in the marketplace. It depends on the company potential and requirement
whether they want to source their funds from external market or internal sources, which enable
the company to achieve its goals and objectives (Grignon and Spencer, 2018).
P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
 Executive summary: Marshfield Bakery Limited is planning to expand its Operations,
the company is looking forward to establish a new branch of the company in the new
area, which may enable the company to acquires new group of customers and increase
their overall market share.

 Overview: Marshfield Bakery Limited is a UK based pastry and biscuits company. It is
a private limited company. The company therefore actively engaged in manufacture of
rusks and biscuit and preserved pastry goods and cakes. Company is currently operating
with 68 directors and is looking forward to expand their market share in order to achieve
competitive advantage (Mohd and et.al, 2021).
 Mission: A stakeholder focused organization which provides reliable and safe services to
the community and which looks forward in adding value and quality for their customers.
 Vision: The vision statement is ' Be a leader of the community that enhances the quality
and value with innovative solutions and ensures sustainability in the environment'.
 Objectives: The objectives are-
1. Value addition in the community
2. Quality and high standard of products and services.
 Operational Plan: The company is planning to open a new branch that needs some
additional workers and leaders to mange the functioning of the business. The company
has started its online services as well, which makes its convenient for the customers to
purchase their goods and services and enjoy them.
 Resources: The company required an additional place along with resources required to
make biscuits, pastries and others. The company also require machinery and equipment to
operate its functions.
 Technology: The company uses high tech machinery and equipment to operate its
functions.
 Time frame: The time frame required to establish a new branch is nearly a year.
 Funding: The company will acquire its potencial funding through Angels Investor.
 Growth Strategy: It will adopt market development strategy to acquire a large share of
the market (Usmani, 2019).
 Marketing mix: It includes 4P' s which are-
1. Product: It deals with bakery goods like rusks, biscuit, pastries and more.
2.Price: The company have reasonable prices of the goods that are affordable for all the
individuals.
3.Place: It operates in England, UK (Geraldo and Gama, 2019).

4.Promotion: the company uses social media platform,s and provide discount offers to their
customers
 Budget: