MOMA Food: Business Plan for Growth, Financials and Exit Strategies

This report details a growth plan for MOMA Food, a company established in 2005. It begins with an introduction to growth planning and then delves into Task 1, which outlines the major considerations for evaluating growth opportunities, including resource assessment, competency analysis, and a PESTLE analysis. The report then applies Ansoff's Matrix and Porter's Five Forces to evaluate strategic options. Task 2 explores various funding sources like bank loans and angel investors, outlining their advantages and disadvantages. Task 3 focuses on developing a comprehensive business plan with financial information and strategic objectives for growth. Finally, Task 4 critically evaluates exit or succession options for the small business. The report concludes with a summary of findings and includes a reference list.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Major considerations for evaluating growth opportunities within context of an
organisation............................................................................................................................4
P2 Evaluating growth opportunities with the help of Ansoff's Matrix...................................6
TASK 2............................................................................................................................................8
P3 Sources of funding which are available to business with benefits and drawbacks of each.
................................................................................................................................................8
TASK 3..........................................................................................................................................10
P4 Business plan that includes financial information and strategic objectives for growth of
business.................................................................................................................................10
TASK 4..........................................................................................................................................13
P5 Critical evaluation of exit or succession options for small business and making a decision
of appropriate courses of action...........................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Growth planning is termed as the strategy followed by any business organisation in both
short-term and long-term to increase and maximise business revenue and profits and improve the
long-term sustainability of the company (Gandee, 2014). A MOMA food was established in the
year 2005 with the objective of providing a healthy and instant porridge and promote healthy
eating habits in United Kingdom while providing a delight to the taste buds as well. In the
following report, planning for business growth of the company is being done which involves
major considerations, directions for strategic business growth, source of finance, business
planning and determination of exit-strategies.
TASK 1
P1 Major considerations for evaluating growth opportunities within context of an organisation.
Every business organisation needs to constantly evaluate growth opportunities in its
environment to maintain competitiveness as a business organisation may lose its current
profitability in transit and having a diversified growth prospect helps in maintaining
supportiveness in the market (McKenna and Oritt, 1981). Major considerations for evaluating
any growth opportunity which are to be made by the management of MOMA are being discussed
as follows:
Resources: These act as the building blocks for the future growth and development of a
business venture. Every growth opportunity requires a substantial investment in the form of
physical and financial resources. Importance of considering resources held by the company
increases substantially in the context of small and medium business organisations where
resources act as a major constraint (Ismail and et. al., 2012). Hence, the management of MOMA
needs to consider the resources of the company with respect to the growth opportunity.
Competencies: It determines the ability and power of a business organisation to deliver a
unique, distinct and high value to the customers. Every organisation has its own core
competencies or areas of strength which can be leveraged in the context of any business growth
opportunity (Prahalad, 1993). Hence, the management of MOMA needs to analyse its
competencies with harmony to the business growth opportunity.
PESTLE Analysis:

It is a tool of strategic management which is used by business managers to determine the
impact and influence of external environment factors on the operations and decision-making
within the business organisation. The management of MOMA needs to consider various external
factors in the process of evaluating any growth opportunity which are being explained below:
Political Factors: It includes political stability or instability in a business territory which
determines extent of government intervention. The management of MOMA needs to determine
whether there exists any business growth opportunity with respect to free trade agreements or the
impact of political stability on the existing growth opportunity of business venture.
Economic Factors: It includes tax rate, import-export rate, level of income etcetera. The
management of MOMA needs to determine the impact of economic conditions with respect to
the business growth opportunity (Perera, 2017). For example, the growth opportunity might exist
due to increase household and disposable income which needs to be considered by the company.
Social Factors: It includes dynamics and trends of consumption such as values and
perceptions. Changing needs and demands of consumer might present a business growth
opportunity for the management of MOMA and hence, the social factors and their influence on
the growth opportunity needs to be considered by the management.
Technological Factors: Technological changes and innovations present business growth
opportunity. In the past decade, technology has shaped up operations in every industry and
hence, the management of MOMA needs to consider technological changes with respect to their
growth opportunity (Ho, 2014). For example, food technology and changes which increase the
hygiene and nutritional content in food products should be considered by the company.
Legal Factors: A business growth opportunity might have significant legal complications
and consequences which has to be considered and evaluated by the management of MOMA. For
example, expanding operations of the company to another business territory needs a significant
consideration of the rules and regulations of that area to remain compliant with legal
requirements. Non-compliance can result into heavy fines and penalties which is not desirable by
the management.
Environmental Factors: Impact of business growth opportunity on the environment and the
ecological balance of the nature has to be necessarily evaluated by the management of MOMA.
For example, installing new technology to increase capacity might be a growth opportunity but it

might have negative and adverse impact on nature which has to be mitigated before any decision
by the management.
P2 Evaluating growth opportunities with the help of Ansoff's Matrix
Ansoff matrix is considered as a planning tool or Matrix that help in implementing the
effective strategy for growth of organisation (Bridge and Dodds, 2018). The senior manager of
the company focuses on adopting this Matrix for adopting effective strategy for increasing profit
margin. It signifies the four strategy or tactics from which the organisation can select from one
from the following. The organisation also adopts more than one tactics from the given there are
four strategies for growth as well as MOMA food adopt this Matrix that is going to be mentioned
below:
Market Penetration: here in the company emphasised on marketing of their products as well as
services in existing Market. Their main focus is to provide the present product in the given
market. It helps Organisation in increasing more and more profit during the particular phase of
time. In context of MOMA food it has been stated that it is necessary to make appropriate
strategy in order to provide the existing product in the innovative way to its user within business
organisation. It is vital for the company to use the effective strategy at Marketplace.
Market Development: As per this strategy it has been stated that here in the manager of the
company focuses on providing the product in the new market the main focus is to use the
different promotional techniques such as advertising, sales promotion and publicity in order to
attract a large number of customer at Marketplace. The main motive is to gain more and more
profit in future period of time. In reference of MOMA food it has been analysed that it is
necessary for company to adopt innovative technology for offering the unique product as well as
services to its customer in the new market (Mobin, and Komaki, 2017).
Product Development: Product development is considered as a process in which the manager
focuses on providing the innovative products in the existing market. They focus is on designing,
packaging as well as labelling of the product in order to satisfy the customer. Here in the MOMA
food introduced the innovative products such as new cereal oats for satisfying the necessity of
customer. It is necessary for manager to make effective research in order to assess the necessity
of customer during the period of time. They provide superior quality food products to its
customers during the particular phase of time period. It is considered as a risky stage because it is
difficult for company to introduce innovative Product at market to its user.

Diversification: As per this strategy, it has been assessed that due to increasing the profitability
the company focuses on introducing the new product in the new market. They increase their
market share for achieving goal of the organisation. In reference of MOMA food the supervisor
focuses on taking high risk by introducing innovative product in the New Market. It is
considered as a risky stage because the new product is introduced in the innovative market
therefore the manager focuses on taking high risk for increasing higher rate of return during the
period of time.
From the above mentioned strategies it has been analysed at MOMA food adopt
diversification strategy for providing innovative product in the new market for enhancing the
profit margin during the particular phase of time period (Murdoch and Abram, 2017).
Porter’s Five Force Analysis:
It is a tool of strategic management which can be used by business managers to determine
the attractiveness of an industry and sources of competitive advantage by analysis of five
important market forces (Dobbs, 2014). Business growth opportunities can be considered by the
management of MOMA using this tool in the following manner:
Bargaining power of buyers: It is a moderate force for the management of MOMA since the
company offers a wide variety of healthy and tasty porridge which is not being offered by a large
number of firms in the market (Willett and Stampfer, 2013). Hence, due to increasing health
awareness and limited number of firms, bargaining power of buyers in case of healthy and
nutritional products is moderate.
Bargaining power of suppliers: It is a weak force for the management of the company due to
a large number of suppliers and low switching costs which provides an opportunity to procure
materials with high quality at best prices.
Threat of new entrants: Threat of new entrants is a strong force since the rise in healthy
eating habits and health concerns has encouraged major food producing companies to enter into
the industry with huge investment and value proposition for customers.
Threat of substitues: It is a moderate force for the management of MOMA since the
company offers a range of healthy and tasty food products which don’t have a large number of
substitutes available in the market particularly for customers with healthy and nutritional content
preference.

Competitive Rivalry: Extent of competition is currently moderate in the industry in which
MOMA operates and it provides an opportunity to take an early lead and build a strong brand
image for deriving sustainable performance in future as well (Clapp and Scrinis, 2017).
Hence, it can be analysed that management of MOMA can consider the growth opportunity
of domestic expansion due to a strong competitive position and with the help of building a strong
image and obtaining a high market share in the domestic markets of United Kingdom, the
management can derive long-term sustainable performance and explore more avenues for future
business expansion and growth.
TASK 2
P3 Sources of funding which are available to business with benefits and drawbacks of each.
Sources of funds can be termed as the different alternative sources available to any business
organisation for acquiring funds for short-term as well as long-term purposes. Different sources
of funds available for MOMA are:
Bank Loans:
Bank provides the facility of long-term as well as short-term loans which is a very
suitable option or source of finance for small and medium organisations. Usually, an interest rate
is charged by the bank on the amount of loan and a collateral security needs to be furnished for
acquiring the loan (Fields, Fraser and Subrahmanyam, 2012). The following advantages and
disadvantages of bank loan can be considered by the management of MOMA:
Advantages:
 Bank loan is the most secure way of obtaining funds for small business organisations and
it doesn’t result in dilution of control. Bank loan capacity of a firm determines its high credibility in the market which improves
the image and trust of the company.
Disadvantages:
 Bank interest is a fixed charge on the profits of the company which might decrease the
profitability in the long-run. Extensive paperwork and time is required in the process of obtaining loans from banks
and the company also needs to furnish security which is difficult in case of small and
medium sized organisation.

Angel Investors:
Individuals who have expert knowledge and technical know-how with respect to any
subject matter and are willing to offer large amount of funds and money in the exchange of
equity shareholding in a business venture (Ding, Sun and Au, 2014). Angel investing is an
appropriate source of funds for the management of MOMA. Drawbacks and benefits of Angel
Investing are:
Advantages:
 Angel investing is a flexible option or source of fund and the terms and conditions under
this can be changed on later by mutual agreement of both the parties. Angel investors have expert level knowledge so along with funds, they bring a lot of
other benefits which can be instrumental for the success of a small business venture.
Disadvantages:
 It results into dilution of control. Limited additional investment opportunity in the case of Angel Investors.
Personal Savings:
It refers to the amount which has been collected by the owner of business over a period of
time as his savings. The advantages and disadvantages of using personal savings as a source of
finance for MOMA are as follows:
Advantages:
 It provides full ownership and doesn’t result into dilution of control. It helps in avoiding any fixed interest obligations.
Disadvantages:
 It restricts the networking opportunities and expert guidance which other sources of
finance such as angel investing brings along with them. Personal saving can be used as a contingency fund for SMEs and using it to initially
finance the business operations can increase the future risk (Nguyen and et. al., 2017).
Friends and family:
Due to the time-consuming process of bank loans and other restrictions such as limited
credibility, the managers of SMEs often use amount borrowed from their friends and family for
investing into business. Advantages and disadvantages of using family loans for the management
of MOMA are as follows:

Advantages:
 It is a flexible option or alternative source of finance as no paper-work is essential and the
funds can be obtained quickly. Loan from friends and family is a much cheaper source of finance due to no hidden costs
such as processing fees in bank loans (Lee and Persson, 2016).
Disadvantages:
 Lack of clarity can exist if lender and borrower have different expectations and no legal
documentation exists. It can sometimes result into social awkwardness for the borrower.
Recommendations:
It can be recommended that the management of MOMA should consider Angel Investing
as a better option or source of fund for meeting the financial requirements of the company. It will
help the company to increase expert supervision and experience of the investors can be helpful
for future growth and success of the small business venture. Also, in case of Angel Investing, no
security is required which is always a constraint considering the limited business investment in
case of small and medium sized business ventures.
TASK 3
P4 Business plan that includes financial information and strategic objectives for growth of
business
Executive summary – There is demonstration of business plan for new business
expansion in Moma Foods. It includes different aspects related to expansion of business. There is
need to develop a proper business plan for expansing the market share as it helps in conducting
all activities of business properly. This plan provide direction to perform their business function
and activities in such a manner that helps in achieving goal as well as objective in stipulated
period of time. The business plan provides direction that helps in growth and success of company
in future period of time. Therefore, it has been analysed that it is important for company to make
effective business plan that helps in boosting efficiency level in future period of time.
Strategy is a composed report embraced for accomplishing objective and goal of business
association inside a focused on timeframe. Distinctive budgetary expectation can be made so as

to orchestrate reserves. Different techniques and game plan can likewise it can be broken down
using strategy.
Company Profile : MOMA food is a SME organization arranged in London giving solid
breakfast to its client. They are showcasing their products in different general stores. Moreover,
this organization is making arrangements for growing their business for adding new items to
their current product offering. So as to accomplish this, it is basic for organization to
comprehend the need and inclinations of its client. Alongside this, the organization has taken a
choice for presenting grain oats which is solid breakfast so as to draw in increasingly more
client.
Economic and industry review - Moma foods works in restaurant industry of UK.
There is high competition within restaurant market of UK. There is need of managing the work
and achieving targets and objectives of company in specified time. It is concluded that expansion
of Moma food is easy in London as economic growth in this area is high.
STP Analysis: STP technique can be embraced by supervisory group of advertising for
breaking down objective market which must be provided food by the business association.
MOMA food has received this game plan subsequent to breaking down objective market for
situating the item in the attitude of customer. The STP plan in relation to MOMA food that is
going to be mentioned below:
Segmentation: The company focuses on segmenting their market on basis of age,
education as well as income level that helps in provide products and services according to their
needs at marketplace.
Targeting: After segmenting t is necessary to target large number of customer for
increasing profit margin in future period of time.
Positioning: It is necessary to make brand image and reputation of company in front of
customer at marketplace.
Competition – There is high competition within restaurant industry of UK. For market
expansion, it is seen that there is need to analyse strategies used by competitors as it leads to
manage business expansion activities effectively.
Vision and Mission: The primary vision of the business association is to give the sound breakfast
to its client so as to fulfilling them.

The strategic the organization is to give guarantee that items are both sound just as delicious for
kids which is the principle reason for this brand. This organization offer solid items to its client
so as to hold them for an extensive stretch of time.
Objectives: The primary motivation behind MOMA food is to manufacture mindfulness for
client towards their new dispatches, for example, oat oats. Likewise this organization need to
support deals of their current items. In addition, the fundamental thought process is to improve
the brand picture and notoriety of organization.
Marketing strategy: The target of this association is to support deals by 30% by propelling
creative items in forthcoming time of a quarter of a year. It will helps in expanding the current
piece of the overall industry by 10% as steps are taken for expanding limited time procedures of
the organization.
Marketing Mix: Marketing blend is a structure received for taking a choice identified with item,
spot, cost and advancement. The MOMA food dispatch new item, for example, grain oats for
pulling in enormous number of clients. The advertiser give the correct item disperse at helpful
spot for its client just as online nearness is arranged by organization. Cost of recently dispatch
item should maintained low so as to accomplish upper hand over opponent firms. Limited time
methodologies utilized by MOMOA food, for example, publicizing, deals advancement and
exposure so as to draw in an ever increasing number of clients.
Financial information
Investor desires: It is significant for business association to decide partner premium with the
goal that supportable advancement winning in MOMA food. In addition the partner desires is
likewise considered which will be talked about beneath:
Employees: In request to dissect the different chances of MOMA food , it is imperative to keep
all workers roused towards accomplishing objectives in a compelling way (Yan and et.al., 2016).
Likewise the administrator give preparing to all staff individuals in regard of new item dispatch
in the organization. This causes them in expanding effectiveness just as efficiency of the
organization.
Shareholders: Shareholder premium has considered in light of the fact that they are the people
who have put resources into the business association. The organization ought to give significant
yields to investor so as to upgrade their inspiration just as fulfilment level.

Customers: Customer assumes a significant job in each organization. In setting of MOMA food,
they offer sound breakfast to its client so as to increase upper hand over adversary firms. The
administrator of organization fabricates compelling methodologies, plan and system so as to
fulfil client.
Division: In this technique, the general market is isolated into various gatherings, for example,
segment, psycho-realistic, geographic and conduct portion. The MOMA food section their
market subsequent to considering various variables in the market, for example, age, sexual
orientation, occupation, instruction and salary of the person. This encourages them in expanding
persuasive just as fulfilment level of client.
Focusing: In the objective market the organization centres around focusing on their client so as
to fulfil them. In setting of MOMA food, the supervisor centres around focusing on a specific
gathering of client who is exceptionally cognizant towards their wellbeing. They give sound
breakfast to its objective client, for example, oats just as recently acquainted item like oat oats
with its client. It causes organization to support efficiency and benefit level of business
association.
Situating: In situating system, the chief of organization underscored on situating their item in the
psyche of purchaser. They make positive brand picture and notoriety of organization in the
outlook of its client. In reference of MOMA food, endeavours are made for growing their
business online that encourages them to draw in clients.
Cost sheet-
Fixed
costs (In
£)
Variable
costs (In £)
Fixed
costs (In
£)
Variable
costs (In £)
Fixed
costs (In
£)
Variable
costs (In £)
1st year 2nd year 3rd year
Online app
creation cost 8000 - -
Salaries to
professionals 22000 22000 22000
Promotion
expenses 700 550 550
License cost 350 200 200