Marshfield Bakery's Growth: Ansoff Matrix, Finance, and Business Plan

This report provides a comprehensive analysis of Marshfield Bakery's growth strategies, focusing on competitive advantages, market opportunities, and financing options. It critically assesses growth options using the Ansoff Matrix, evaluating market penetration, product development, market development, and diversification. The report also examines financing options like peer-to-peer lending, venture capital, and crowdfunding, and evaluates exit or succession possibilities such as mergers and winding up. Furthermore, a business plan is included, outlining strategies for achieving sustainable growth and market leadership. This detailed analysis aims to provide actionable recommendations for Marshfield Bakery to expand its business successfully.

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Competitive advantage for business............................................................................................3
Opportunities available for the business......................................................................................4
Critical assessment the growth options through Ansoff Matrix for business..............................5
Critical evaluation of options for the financing growth...............................................................6
Evaluation of exist or succession options for the business .........................................................8
Recommendations for business....................................................................................................8
PART 2............................................................................................................................................9
Business plan...............................................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Every organization want to expand their business across the world, as they want to deal
international. Expansion is the most challenging part as well as occur after achieving the success
in local market, business who have capabilities to expand into new market have to face some
type of challenges due to business carry no experience in new potential market, and expansion is
only possible if company have strategic alignment with the market trends. The Marshfield
bakery manufactures has quality handmade cakes, biscuits, snack bars as well as seasonal
products that are generally distributed throughout United Kingdom and Europe. The Marshfield
bakery is award winning because they satisfying their customers by providing good quality
products. The report will includes explanantion of competitive advantages for the organization.
Along with this the report will critically assessment of opportunities available to the
organization. The report also includes Ansoffs growth vector matrix to know the option for the
growth as well as critically evaluate exit or succession options for business (Matrix, and Ansoff,
2018). Moreover the report will have business plan for the company as well.
MAIN BODY
PART 1
Competitive advantage for business
Competitive advantage which the business sets apart from their rivalries, it describes the
advantages which the consumer receives (Abdulwase and et.al 2020). Having a competitive
advantage will help the firm in order to grow in their field and to get better response for their
products and services by potential consumer. The ways through which Marshfield bakery can get
competitive advantage are as follows:
Exceptional consumer service and commitment: One of the important aspects for the
businesses is to know about their consumer, by identifying the consumer interest will help in
tailoring the further process. Marshfield bakery also need to interact with their clients as to know
what they are really envisions for their tray bakes, honey comb tiffin and caramel shortbread
product. It is ultimately rewarding to put that details into reality and to offer exactly what client
envisioned for. Therefore, there is a potential advantage of customised services where client can
get what they looked for, thus it helps the bakery to develop their potential consumer base.
Personalisation services: Personalised service experience is current topic, where it helps the
businesses to stand out in their market field. As in no time user will switch services to other

companies if they are not valued and understood at personal level. Therefore, Marshfield bakery
can also be benefited if they provide personalised services to their consumers, for that they can
begin to update their web presence (Patrisia, Linda and Abror, 2022). Over a web store they can
provide the details about the products which they have already purchased and willing to
purchase, provides them list of products on the basis of their interest so that they will make
purchase decision. It helps them to make decision immediately without wasting their time.
Another competitive advantage which the bakery can get is to provide rapid 24*7 and
home delivery services it will helps them to retain their potential consumer as well as develop
new consumer base that helps them to stand successfully within the market.
Opportunities available for the business
Opportunities are those which gives the favourable external aspects which helps the firm to
get competitive edge. For the Marshfield bakery potential chances are available that discussed
below:
Product expansion:
Now a day’s bakeries are not limited to sell only cakes but there are range of products
available which they can easily sell to their consumers (Qamariah and Muchtar, 2019). Product
expansion is one of the major advantageous step which the firms can take, however it involves
the certain risk which firm need to address initially to avoid any miserable situation. For that
Marshfield bakery need to conduct market research and to use it to design strategy for their new
product, they can proceed to consider health nutrients values, as most of the consumer in current
scenarios are looking for the product which is organic and have no bad effect over body. Hence
bakery can proceed to offer nutritional gluten free and less sugar products as well as they can
proceed with sustainable packaging that will grab the attention of consumer in the market.
Differentiation strategy:
It is an approach which the businesses created by providing their consumer unique
products and services which are different from their competition. It will assist the firms to make
innovative approaches for their products and further charge premium prices for it (Dora and et.al
2021). in case of bakery business this strategy is useful as now a day due to pandemic audience
in the market looks for the items that are of nutritional and organic value, for that Marshfield
bakery can proceed to provide products that meet their audience demand and to provide
personalised experience along with it. To be unique as compared with rivalries bakery should

provide ingredient information in their menu and to start offering samples for the new products
so that further decisions can be made.
Display products online:
Online presence now a day is most preferable trend by consumer and food is something
for that audiences are really passionate about it. Marshfield bakery can easily enhance their
business visibility by getting their firm listed on food apps, by creating business website will
help in grabbing audience attention, for that it is also important to provide all product details that
should be displayed on consumer device. Hence by accepting online orders will help in fulfilling
the needs of consumers.
Critical assessment the growth options through Ansoff Matrix for business
The Ansoff Matrix is also called marker or product expansion grid, that is two by two
model used by marketing as well as management team to analyst community which help in plan
and also evaluate growth initiative. Developmental growth can be analyzed by Ansoff growth
vector matrix that is a product expansion grid used by various business for assessment of growth
strategies. Following analysis has been made for the organization expansion of the Marshfield
bakery.
Market penetration
It is the concept of raising sales of current product into current market. This is less risky
as compare to others. In market penetration the management seeks to sell their current products
in to the existing market that are generally familiar with as well as where they have good existing
relationships. So, the business can invest their financial resources in the area of the production
increment where the business can try to control their overhead costs so it will lead to the
establishment of the competitive prices for its customer segments in related markets. Also, in
order to raise its many product distribution of unique product the company can normally
generate a wider consumer range by appealing to preferences along with the supply-chain
improvement.
Product development
This generally focuses on launcing new products into current market. So several new
launches of different and unique products into current market can also boost as well as increased
disseminaton between the purchasing segment along with striking a good level of sales
augmentation. Along with this the area of srategic partnerships can also be explored by the

respective business for limiting the risks as well as increasing product quality. And there is risk
of the new product not being popular and may fail in its sales. Acquiring rights to sell as well as
produce other business products. Creating new offering through branding white label goods that
generally produce by third party (Tsaurai, 2018).
Market development
This generally focuses on selling current products into the new market. For this business
have to invest in research to understand the market befor entering. In this strategy business want
to enter into new market with the same or existing products to cover more area or range. This is
so because with entering new market areas there always is risk of things going anythink wrong
so, if the invested human or other resources might get wasted when the new market do not
comprise right kind of buying customers.
Diversification
This is the concept of entering into new market with the new products. Generally,
diversification strategy is have highest risk because in this company enter into new market as
well as with new product. There are two types of strategies such as related diversification and
unrelated diversification. Even the business can experiment with two option such as vertical
diversification where new product improver fall under the existing line or the other one is
horizontal diversification method by which the newly launched goods are more engaged as well
as associated with the new range of product market line (Amanto, and et.al, 2019).
Critical evaluation of options for the financing growth
Peer to peer lending
It is a form of the financial funding that generally permits individual to borrow or even lend
money from one another without going to the bank (Basha, Elgammal and Abuzayed, 2021). The
Peer to peer lending link up borrowers directly by websites to investors. Here, the site sets the
terms as well as rates and also allows the transactions. Pear to pear borrowers seek alternative to
the traditional bank or low interest rate.
Advantages of the pear to pear lending
 Low interest rates
 Diversification
 Easy to use
 The process is quick as well as convenient

Disadvantages of pear to pear leanding
 Additional fees
 Less protection in case of default
Venture capital
It is the other source of funding increased from the private equity business is called
venture capitalists. Here, venture capitalists offering funds for business that are at very early
stages of the business operation cycle or when changes are done as result of the new products
(Ewens, Gorbenko, and Korteweg, 2022). Hence, venture capitalists are more interested in
organization with growth potential in the industry communication as well as other industries.
Venture capital is generally sought by the new businesses as well as smalls with the high growth
potential.
Advantages
 Large amounts of capital easily raised
 Increasing publicity a well as exposure
 Networking opportunities are also provided
Disadvantages
 Founder ownership is reduced
 Extensive due diligence is also required
 Business is well expected to grow rapidly
Crowdfunding
The crowdfunding is an other way of raising money to finance businesses. This is used by the
growing businesses or startup companies as way of accessing the alternative funds (Mochkabadi
and Volkmann, 2020).
Advantages of crowdfunding
 it is fast methods to raise funds
 Reward flexibility
Disadvantages of crowdfunding
 Fail project risk
 false negative
 High pressure

Marshfield bakery can select any sources of funding for growth. Their are more option
such as bank loans, angle investor etc. so the business can select which is best for firm. So
Marshfield bakery can use crowdfunding , because this is the best way to raised fund. By this
the organization can minimize business financial risks. For example, if the Marshfield bakery
want to launch new line of products, so they might want crowdfund it for their raw material that
is ingredients as well as equipments.
Evaluation of exist or succession options for the business
Merger
Merger is agreement between two existing companies into one new business. The main
purpose of mergers is to gain competative advantages, influencing supply chain as well as gain
competative advantages. There are some benfits if the organization merger with other such as it
improve economic scale, increase legal costs, more finance resources, as well as increase market
share. So if the organization wants to expand into another country then they can easily cover new
market.
Winding up
The closing of the operation of a organization, paying off creditors, selling off assets etc.
once the process of winding up is complete then the dissoluation step play. This is done when the
business formally under law to exist. This is the best way to exis the market.
Franchising
Franchising is an another succession option for the business. In this there is an agrements
between two parties or businesses wher one party allows the another to sell their products as well
as intellectual property (Alon, and et.al., 2020). This will help business to cove market as well as
gain more market share. In this expansion can faster because it provide labour as well as their
sales provide growth. Franchisees may more talented at growing firm and turning profits into
expansion.
Marshfield bakery can use merger to expan their business for growth. Because merger is
the best way to cover full market faster. Because the merger with the success business is more
profitable because by such the Marshfield bakery get more customers easily. So the business can
adopt this strategies for expansion.
Recommendations for business
Some of the suggestions for Marshfield bakery are discussed below:

Use digital technologies for controlling production process: By using technologies will help in
streamlining the production process, as machines and tools like fermentation and laminating
lines have better utilisation in production work (Ketchen Jr, Kaufmann and Carter, 2022).
Additionally, firms can get more benefits because of digitisation for an example by using
Enterprise resource planning system (ERP) bakery can easily cut down their work effort as well
as they can easily manage their human resource management. With ERP firm can also get the
assurance for their product quality as to provide nutritional bakery products.
Make best use of their collected data: Systematic collection of information will turn bakery
business into a top performer in their market that only seen in case where information is being
used strategically. By using artificial intelligence in business will helps in predicting the future
pattern that strengthens the decision making process.
Opportunities of online business: Digitisation helps in providing better shopping possibilities in
form of online centres. Online orders are able to attract audience who to preferred brick and
mortar stores. Thus it opens up the opportunities for bakery business if they offer their products
in their own web stores (Nguyen, 2020). Therefore, Marshfield bakery can also get the benefit of
their online presence, with this they will be able to increase traffic over their websites by
providing ingredient details along with product.
Network with local business: Bakery business must need to enter into collaboration with other
local brand as well in the vicinity. It helps in enhancing the sales rate. For an example during any
celebration event people tends to order bakery products along with flowers and all, thus bakery
firm can proceed to connect with local florist to deliver the complete product to consumer.
PART 2
Business plan
A document that comprises of organisational goals, objectives and proper procedure to
accomplish their goals. Information which it contains can be beneficial in making informative
decisions that assist in running the corporate successfully. It can be also a valuable asset for
attracting investors for obtaining financing from financial institutions. For Marshfield bakery
business plan is as follows:
Executive summary:

Following business plan will illustrate the product and other marketing details of the
Marshfield bakery, where it also discusses the operational and financial plan for the company.
Currently they are looking for expanding their offering by adding nutritional ingredient in
products for health conscious consumers.
Business overview:
Marshfield bakery and UK based firm that sells range of baked products to their
consumer, they produce quality handmade cakes, cookies as well as seasonal goods, currently
they are aiming to make entry in new market (Sagita and Rahayu, 2019). They want to address
their capacity and process planning challenges in order to achieve growth in their business.
Firm’s mission is to provide affordable and nutritional product to consumers, their main
objective is to further expand their operability in other nation as well by the end of this year.
Market analysis:
Market analysis is crucial process for business plan it helps in determining the business
audience. For conducting market analysis, it is required for firm to instruct their research and
development department to do better market research to analyse current market trends and
consumer demand. It will help in tailoring the strategies and other processes to strategically
arranged offering.
PEST:
Political: It involves governmental rules and regulations which have potential impact over
business, as changing in rules and political structure will affects the operability of business. For
the Marshfield bakery due to Brexit it has created lots of challenges for food industries, and also
outbreak of corona virus has also imposed the obstacles for business.
Economical: This factor concerns with exchange, economy growth, inflation, unemployment
rate, such factors are determinants to economic performance which directly affects the firm and
also give the resonating long term impacts (Hopp and Greene, 2018). As for the bakery rise of
inflation rate can give negative influential impact, as it lowers the buying power as well as
discourages the customer spending over products and services.
Social: Demographic characteristics, societal norms, customs all affects the functionality of
business. When end user has disposable income and willing to buy products will help the bakery
to grow their revenues. For that they need to maintain all social aspects as failure to adopt things
according the social environment can drive many challenges for business.

Technological: Emergence of new technology and era of digitalisation is the current demand of
business; it has potential impacts over the food industries where consumer can easily make order
for their product with just click on food apps. It also assists in accumulating the information
collected from consumer feedbacks to update offering accordingly.
Porter five analysis:
Supplier power: Currently Marshfield bakery is committed to provide nutritional products to
their consumer and also to expand their offering, for that they require to connect with different
suppliers who can fulfil their wish. It is also beneficial to have different vendors as if the prices
for raw materials goes up so they can easily switch their buying to others. For them this power is
somehow moderate as there are many suppliers available in market.
Buyers power: For bakery this power is high as audiences always plays crucial role for business.
For Marshfield bakery this power is high in order to meet audience requirement they must need
to work on their offering to provide gluten free and nutritional products (Guzairy, Mohamad, and
Yunus, 2018).
Competition rivalry: To sustain in UK’s food market bakery need to work on their strategies to
gain attention of consumer and to deliver product that are unique from their competitor’s
product.
Threat for substitution: It states that when firm’s product is too easy to copied then it is sold by
other firm as well. For Marshfield firm this factor is low as they offer unique products that can’t
be easily imitate.
Threat for new entry: When market entry is too easy to mark presence then it will be threat for
existing firm. As Marshfield is trying to enter into new market then it is also important for them
to strengthen their presence in new market for better result.
Marketing strategies:
Marketing plays a greater role for growth of any commodities. Marshfield bakery also
need to appropriately positioned their product in new market so that it will be considered by
consumers. They can begin with online marketing as well by using social media platforms to
increase their reach to audience (Matović, 2020). For their products they can also proceed with
online campaigning that helps in developing consumers for that particular products. Company
should also need to do better pricing for their product as initially they can proceed with lower
price and slowly increase price over product when it succeeded in creating its demand in market.

Operating plan:
It provides the detailed information about business, it entails the details about physical
location if business, facilities, equipment’s, system, types of workforce required and other
inventory arrangements. Therefore, for the Marshfield bakery they also need to be confident
about their resources in order to work on their new market entry strategy and to deliver product
that consists of organic values. To deal with technologies and software it is suggested to hire
technical staff in order to operate their machineries otherwise they will not be able to provide
better services to consumers.
Financial plan:
Without financial plan there will be no procedure which can takes place, thus it involves
the current finances, funding requirements and projected income as well. Thus within this
business plan highlights the balanced sheet, cash flow and income statement, hence better
management of this will let the firm to expend their capital wisely and to avoid any uncertainty
that affects business.