Marshfield Bakery: Growth Opportunities, Funding, and Exit Options

This report provides a comprehensive analysis of growth strategies for Marshfield Bakery, a UK-based bakery business. It begins by evaluating key considerations for growth opportunities, justifying them within an organizational context using tools like competitive advantage analysis, SWOT, PEST, and the Boston Matrix. The report then applies Ansoff's growth vector matrix to assess potential growth avenues, followed by an examination of various funding sources available to businesses, discussing their respective benefits and drawbacks. A detailed business plan for scaling up Marshfield Bakery is designed, incorporating financial information and strategic objectives. Finally, the report assesses exit and succession options for the small business, explaining the benefits and drawbacks of each option to provide a holistic view of strategic planning for the bakery.

Planning for growth

Table of Contents
Table of Contents...........................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context....................................................................3
Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................6
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................7
Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.........................................................................................................9
Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.......................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
The strategic planning is basically a one type of procedure in which an leaders of
company described their vision for the future and identified their organization objectives and
goals. The procedure includes establishing the sequencing in which various types of goals should
be realized. Due to the effective use of strategic planning organization easily goodwill and
reputation in market for long time. Here the chosen company is Marshfield bakery for
understanding the concept of strategic planning effectively. The organization is mainly dealing
with various bakery products which includes cakes, snakes, biscuits and others in UK and other
areas also. The report will be covered analyse the key considerations for evaluating growth
opportunities and justify these considerations within an organization (Agasisti and Bertoletti,
2020). Evaluate the opportunities for growth applying Ansoff's growth vector matrix.
TASK
Analyze key considerations for evaluating growth opportunities and justify these considerations
within an organizational context
The small business or startup required to expand their business globally in market. For
expanding the business, the Marshfield bakery need to utilize advanced technology for gaining
various opportunity and also for enhancing the popularity of their products within low time. By
using technology firm is able to attract the customers in large number within low time The
models which is used by Marshfield bakery for enhancing their profit margin and for expanding
the business are described below -
Competitive advantage – The competition in market help the Marshfield bakery for
conducting their activities in innovative way which leads to increase their popularity of the
bakery products such as cakes, soft drinks and other products at large scale within low time. It is
one of the bakery who are mainly focused on the taste and preferences of the customers and then
according to that products are produced with best quality according to them. For sustaining the
competitive advantage in market management of this firm is need to utilize their resources, and
fix competitive price effectively.
SWOT Analysis

The SWOT analysis is a one type of strategic planning which is used by organization for
sustaining their competitive advantage in market and also for identifying their strength,
weakness, opportunities and threat effectively.
Strength -
 In respect of Marshfield bakery, they are mainly focused on the young generations and
children's for sustaining the awareness of product in market for long time.
 Due to facilitating these types of products their revenue is easily generated at maximum
level within low time and also developed positive relationship with customers for long
time.
Weakness -
 The biggest drawback of this firm is that the workers of this firm are not highly skilled
and talented and due to this management are not able to deliver their products to users in
time.
 Another drawback is that their equipment's are outdated which leads to decrease the
performance of staff at large scale (Ferreira and von Schönfeld, 2020).
Opportunities -
 With help of diversifying their products with various flavors and taste company is able to
expand their business at large scale through both online and offline mode.
 With help of expanding the business convenience are highly increased customers for
buying the products within low time.
Threat -
 The main threat for this firm are competitors because they are also providing the same
products with low cost to users. It leads to enhance threat for the goodwill of company.
PEST Analysis -
It is basically a framework which is utilized by organization for analyzing the macro
external factors effectively. The factors which are considered by organization are described
below-
 Political – It is considered with the political instability or stability, trade regulations,
trade restrictions and others. In relation to Marshfield bakery, here authority required to
running their functions according to the current rules, regulations and culture of particular

country. It leads to sustain the political stability of firm in various locations effectively
for long duration.
 Economical – It is related with company overall growth and development, inflation,
interest rate, employment rate and so on. In context to Marshfield bakery, due to regular
change in the rates of currency company is not able to enhance their profit effectively.
For solving this management required to fix competitive price in their product for
sustaining their profitability in long term.
 Social – It is related with culture and subculture, purchasing power and buying behavior
of customers. In relation to Marshfield bakery, they required to focus on the taste
preferences of users especially children's and young generations (Haleem, Jehangir and
Ullah, 2019). With help of targeting this type of customer’s firm is able to increase the
popularity of their bakery items at large scale within short duration.
 Technological – It is defined as the use of various digital platforms which includes social
media and official websites. With the effective use of these platforms firm is able to
understand the benefits of natural ingredients in their products in attractive manner in
minds of children's and young generations. It leads to attract the users in large number
within low time.
 Environmental – In context to Marshfield bakery, they need to reduce the use of carbon
footprint in their workplace area. Because it is responsible for decreasing the
performance and productivity of employees effectively. Due to this firm is not able to
provide quality products to users for long time.
 Legal – There are different countries where laws of employee health and safety are
followed in strict manner. The authority of Marshfield bakery is following various types
of laws in their workplace area. In this way management are able to facilitate a secure
and healthy work atmosphere to their workers. They also need to secure their information
from outsiders which is important for protecting the quality standard along with
maximizing the cost.
Boston Matrix -
It is a particular technique of marketing which is utilized by organization for developing
strong business strategy. The main function of Boston matrix is to evaluate the collection brands
and business. The stages which are involved in this matrix are described below -

 Star – It is a initial stage in this matrix and according to this stage Marshfield bakery
required heavy investment for introducing their goods and services with new flavors and
taste between public and through online mode. When organization introduce new flavors
and taste in their products then management easily maintain their portfolio and market
share at higher rate in long term.
 Cash cows – It is defined as those goods which have very less growth in market but they
received high market share (Hosseini Mola, Barforoshi and Adabi Firouzjaee, 2018).
That type of goods required high improvement. In context to Marshfield bakery
management need to make strong modifications in their products according to the needs
and desires of users.
 Dogs – According to this stage the products of the organization having less market share
and also having less market growth. This stage is worked in the form of barrier for
organization regarding generating revenue. In this level it is mandatory for company that
they reduce the varieties of dogs and improving their situation.
 Question mark - The goods which are comes in this stage are highly liked and consumed
by customer's. For sustaining the popularity of their products firm needs to made heavy
investment and due to their goodwill are easily developed in market for long time.
Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
Ansoff Matrix -
It is basically a two-by-two framework which is utilized by organization to assist
executives, senior managers and marketer’s device strategies for future growth. In context to
Marshfield bakery, they used this tool for enhancing their success rate at maximum level. The
stages which are involved in this strategy are described below -
 Market penetration – In this stage the higher authority used various sources and tools
for enhancing the popularity of existing products in existing market. The techniques
which are required to use by selected company are facilitating discounts, increasing
promotion, system of home delivery and others. With help of these activities’ customers
are easily attracted in large number for availing the goods and services.
 Market development – This strategy assists the company for entering into new market
with help of existing goods. In this type of strategy products are same but consumers are
different. In context to Marshfield bakery, here management need to target those

customers who are highly valuable and beneficial for them. For example, children's and
young generations are those customers who like to buy the bakery items in large scale.
For targeting those type of user’s management needs to utilize social media platforms
effectively. Because in today's time online services are highly consumed by customers.
 Product development – Here company launched new launched new product with unique
taste and flavors for achieving more portfolio and revenue and this is known as product
development strategy. This type of strategy is little bit complicated to apply by
organization regarding doing development and research of new product whether the
product will be valuable or not in market.
 Diversification – In this strategy company will launch new product in newly market. But
in some situations, this type of strategy is highly risky in aspect of new market and
products. In context to Marshfield bakery with help of diversifying their product at wide
range the revenue and popularity of the firm are easily sustained in market for long time
(Jensen and Creinin, 2020).
Evaluation -
After the analysis of Ansoff matrix it is understood that the Marshfield bakery have
various opportunities in aspect of delivering unique and best quality product to users in long
term. Due to delivering unique and quality goods to customer’s management is able to develop
strong positive relation with all customer segments for long time. This matrix also assists the
firm to identify the requirements of customers quickly.
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
Marshfield bakery is a new company in market and due to this organization is required
heavy investment in their products and business activities. Therefore, sources of funds are highly
essential for providing financial support to organization during the time of running various
business functions in market. Those sources of funds are -
Lease finance – In this type of source company supply finance in them in foreign in
the medium and small enterprises in aspect of establishing new firm. This type of source
also involved the benefits of tax such as the supply to lessee for gaining the rent of an asset
on the place of shopping. In simple meaning it described as a source where the asset of the

owner facilitates rights to other person in aspect of utilizing the asset in exchange of a
periodical amount.
Benefits Drawbacks
 It is highly liable to get a regular and
assured income of lease rent at the time
of leasing as asset.
 In this type of source of finance on
lease the rate of return is higher rather
than the payable interest on financing
the asset.
 It resulted in the form of higher pay out
obligation in case the equipment is not
beneficial.
 The major drawback of this type of
source is that the activities in the
business may be affected in case lease
is not renewed.
Trade credit – It is defined as a procedure of services and goods from various traders
which had been made but the payment of services and products is did not done immediately. In
context to Marshfield bakery management required to use this type of source for gaining short
term finance (Koziatek and Dragićević, 2019). With help of this tool company easily increased
growth and success rate of organization at maximum level.
Advantages Disadvantages
 This type of source is known as a
constant source of finance which is a
continuous procedure.
 With help of this source firm is able to
increase the sale in their goods and
services by attracting customers in
large number.
 In this type of source risk are very high
in comparison with others. Because in
this source firm is able to borrow the
fund in limited amount.
 If the products of this organization are
sold on credit it enhances in their list
and firm needs to repay huge money of
price regarding maintaining books and
amount.
Public deposits – In this type of source of finance company are collecting funds from
public by facilitating them high rate of interest in comparison with bank deposit. It is essential

for company to fulfilling a prescribed form from the depositor. With help of this type of source
organization is able to satisfy their medium- and short-term term requirements.
Advantages Disadvantages
 In comparison with others, it is highly
beneficial for the above selected firm.
Because here they need to pay very low
interest to their investors to investor in
comparison with others.
 This type of source did not include any
type of asset which is kept in the form
of security.
 It is a challenging task to new
companies for generating a funds from
general public.
 Here company are able to made small
amount of investment which is
collected from the public deposit.
Design a business plan for growth that includes financial information and strategic objectives for
scaling up a business
The business plan is defined as a written document which is established by a higher
authority of a company with effective time frame (Maliva, Manahan and Missimer, 2021). With
help of effective business plan company is able to establish strong infrastructure in various
locations for run their activities smoothly and also for delivering best quality products to
customers in time.
Executive summary – In context to Marshfield bakery, it is a UK based bakery and the
main focus of this firm is to provide best quality food items to customers according to their taste
and preferences. For the growth of organization here management of Marshfield bakery need to
utilize the Ansoff matrix strategy. In the Ansoff matrix market penetration and development
strategy are useful for the all over company growth and popularity of product.
Business description – The name of new product which are going to provide by the firm
are new flavored and tasty cake. In UK it is one of the companies who is highly focusing on the
taste, flavors and quality in their products. Due to focusing on taste and quality children's and
young generations are highly attracted in large number for buying their product at large number.
The mission of this firm is to provide world best tasty and healthy cake and other bakery items

with excellent service and affordable price. The vision of this company is to become the first-
choice destination around the corner for everyone.
Objectives – The main objective of this firm is to increasing sales by 20% within one
year. The second objective is to maintain positive relationship with all types of customers for
long time.
Market analysis – In context to Marshfield bakery, management are used porter's five
force model for analyzing the competitive forces effectively. Due to the effective use of this
model company is able to sustain their competitive advantage in market for long time. The forces
which are comes under this model are described below -
 Threat of new entrants – In context of Marshfield bakery it is very high. Because the
bakery brands are also facilitating the same goods with low price and best quality
(Mattila, 2018). Due to this it is essential for this company that they add some unique
features in their product for attracting the buyers in large number.
 Bargaining power of buyers – In context to Marshfield bakery it is very less. Because
in today's time cakes and other fast-food products are highly consumed by buyers
especially young generations. With help of facilitating these types of goods the revenue
of company is highly increased within low time.
 Bargaining power of suppliers - In context to cake corner it is very high. Because
sometimes suppliers decrease the availability of product in market. Therefore, suppliers
are important for this company for increase the availability of their product in various
locations. Due to this the top-level management is need to select reliable or trusted
supplier for producing best quality product in time with help of various raw materials.
 Threat of substitute service and products – In context to Marshfield bakery it is high.
Because other bakeries are also facilitating the same type of services and substitutes to
customers. Due to this the chances are easily enhanced for switching the consumers to
another bakery. It is responsible for enhancing huge reputation and financial loss for
organization within low time.
 Rivalry among existing competitors – In relation to above mentioned company it low.
Because the main focus of this type of firm is to those customers who are highly
valuable and beneficial for them and those consumers are children’s and young

generations. With help of targeting this type of audience firm is able to maintain their
image in business for long time. respect of the cake corner bakery it is low.
Marketing strategy –
Marshfield bakery have several sources for generating revenue or funds which includes
bank loan, public deposits and others. The main purpose of using this fund is to developing
services and products which resulting in the growth of business at higher rate. It is mandatory for
company that they must utilize various digital platforms and promotional techniques for
sustaining the popularity of their new and existing bakery product in various locations for long
time. In today’s time people are spending more time in various social and digital platforms for
searching the information quickly (Olesen and Carter, 2018). Due to this it is necessary for firm
that they must maintain affordable price in their services for attracting customers and also for
maintaining competitive advantage in market for long time.
Financial table –
Amount
Human resources 10,000
Furniture 20,000
Raw materials 15,000
Advertisement 40,000
Total 85,000
Assess exit or succession options for a small business explaining the benefits and drawbacks of
each option
With help of using various market approaches the market situation was evaluated which is
highly useful for exit plan also. The management Marshfield bakery are considered both exit and
succession planning.
The succession plan is basically defined as a procedure and strategy for replacement
planning or passing on leadership roles. The main motive for using this method by organization
is to develop and identify potential leaders who can move into leadership roles when they
become vacant. But the exit plan is defined as the complete strategy for exiting a privately held
company. It involves analysing the financial, legal and tax options and repercussions.

Firm sold in the open market – In this type of strategy organization have sell their assets to
another person. In this type of strategy, the roles and responsibilities of company are transferred
to another owner. Due to sharing powers to other persons the revenue and profit of firm are
easily sustained in market for long time.
Advantages Disadvantages
 Here the employees those who are
working in organization they easily
have the ideas about responsibilities
and roles which leads to positive
relation with new owner for long time.
 Due to following the rules and
regulation of new owner proper
communication are not sustained
between employee and employer for
long time.
Liquidation - It is basically defined as a procedure for selling all assets of company
which includes furniture, building, vehicles, workplace premises and others (Onder and Nyadera,
2019). In this way organization easily get funds for repaying their creditors easily.
Advantages Disadvantages
 Being unable to repay existing debts
with no way of turning the company
around is a stressful situation for any
director.
 Any legal action against the company is
stopped when the company is in
liquidation.
 Becoming personally liable for
company debts can happen if a director
has made a personal guarantee against
debts of the business.
 Suppliers and creditors will lose
money.
Bankruptcy – The success rate of new business organization is not confirmed. For
gaining the sufficient amount of capital for the activities of business company required to
take loan from external sources. In this type of situation, it is mandatory for organization
to repay the creditors by conducting analysis of their assets and declaring the firm as a
bankrupt.
Advantages Disadvantages
 Once a debtor is declared bankrupt,
most unsecured creditors are unable to
 A permanent record of a debtor’s
bankruptcy is kept with the Inspector