Report on MOMA Foods: Growth, Exit Strategies, and Business Planning

This report provides a detailed analysis of MOMA Foods, a small UK-based oat cuisine business, focusing on its growth strategies and potential exit strategies. It examines the importance of planning for growth, including setting goals and market penetration. The report also explores exit strategies such as liquidation, selling the business in the open market, and selling to another enterprise. Additionally, it discusses growth and succession in family businesses, highlighting the significance of leadership and professional advice. The report further delves into the reasons for business failures, considering both external factors like economic changes and legal issues, as well as internal factors such as leadership and employee motivation. Conflicts affecting the business, particularly cultural influences, are also analyzed. The report concludes with a discussion on the challenges entrepreneurs face when quitting a business, emphasizing the need for careful planning and risk management.

PLANNING FOR
GROWTH
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Table of Contents
INTRODUCTION: .........................................................................................................................3
MAIN BODY:.................................................................................................................................3
EXIT STRATEGIES: ......................................................................................................3
GROWTH AND SUCCESSION IN A FAMILY BUSINESS: .......................................4
REASONS FOR BUSINESS FAILURES: ......................................................................5
CONFLICTS AFFECTING THE BUSINESS: ................................................................6
QUITING A BUSINESS: .................................................................................................7
CONCLUSION: ..............................................................................................................................7
REFERENCES: ..............................................................................................................................9
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INTRODUCTION:
Planning for growth is a business strategy used by the businessmen to plan the growth of
a company. The main motive of a business is to earn maximised profit and to expand its business
boundaries. The business while expanding may face some difficulties and changes in the
environment for which a company is required to be flexible with the environment. The main
factor of planning for growth is to generate maximum revenue generation (Fahed-Sreih,and El-
Kassar, 2017). Growth planning involves setting up of goals and small businesses aims at market
penetration and increasing the sale in the existing market. This report analysis and studies about
MOMA foods.
MOMA foods is a small enterprise owned and run by Tom Mercer, headquartered in London
UK. MOMA is serving people with experimented and innovated recipes of oats, introducing new
flavours to its customers. The business expanded to become a oat cuisine restaurant in Greater
London. The company aims to provide its customers with healthy food at affordable prices.
MAIN BODY:
A business is continuous process and is also known as a non ending process. The shutting
down of a business depends on the decision of the owner and the existing environment of the
business (Kemp, 2018). Certain points needs to be taken care of before the closure of the
business. Many business owners face financial instability which affects the working of the
business and forces the owner to quit or to hand over the business into a good hand.
EXIT STRATEGIES:
There are various exit strategies for small enterprises that needs to be taken in
consideration by the small business owner before closing down a business. It all depends on
how an individual manages to get the money out of the business .(Bradley, Burnett, and Sparling,
2017) If the business is losing money even after applying different approaches then its better for
a business to shut it down . In such case the company is facing downfall or failure, owner can use
strategies suitable for the company.
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LIQUIDISATION: In this strategy the owner closes the business by selling all the
business assets. Specially in small business it is better to go with the liquidisation strategy
as there is nothing else to sell in such businesses.
Benefits-
 Through the use of this strategy the businesses can make sure that they are able to get the
desired amount of money from the sale of their assets in the market.
 This strategy helps in ensuring that the businesses are able to get an appropriate value
from the sale and thus this can help in getting a right value.
Drawbacks-
 This strategy is quite costly because it involves expenditure in the form of the liquidation
expenses.
 This strategy consumes a lot of time as it takes time to sell the business in the market as a
buyer has to be found.
SELLING THE BUSINESS IN OPEN MARKET: In this a business owner sets a price
for his/her business and sells it in the market. If the business is profitable then it is sold
quickly.
Benefits-
 As in this strategy there are many options which are available this helps in getting the
desired value.
 The use of this strategy is helpful in ensuring that the potential buyers can be attracted
towards the business.
Drawbacks-
 There are various types of complexities which are involved in this process and therefore
this can create an impact on the businesses.
 There are various types of legal requirements which are required to be fulfilled which can
increases the expenses of the Company in the process.
SELL TO ANOTHER ENTERPRISE: If your business is profitable then other
business might buy the business. Usually businesses buy business organisation in order to
expand the business territory. This helps the businesses to control the competition in the
market place. But if the buyers main motive is just competition and not the growth of the
business then the company might suffer loss.
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Benefits-
 If the Business is being sold to a company which operates in the same sector then it can
help in getting an attractive rate.
 It makes the process comparatively easier as compared to the other methods of selling the
business.
Drawbacks-
 Low amount can be received from the sale of the business when this method is used
because there is lack of multiple options.
 If the Company with whom the sale agreement is to be made is only interested in getting
to know the secrets of the business then this can create an impact on the organization.
The exit strategies depends on the decisions and the type of small business it is. If the owner just
wants money then strategies like open market is most suitable for them and if the owner wants
further growth then he/she can continue the business by handing over the ownership to a family
member. Even to exit a business proper planning is required by the owner to get high rate of
return on investments.
MOMA foods can also implement liquidisation as it provides the company with simplicity and
the company has great brand value as well but such strategies have low return on investments
and also the creditors have first claim on funds on the asset of the business. An owner cannot
simply quit the business, it requires a lot of planning in order to get better returns on investments.
GROWTH AND SUCCESSION IN A FAMILY BUSINESS:
Growth and succession planning in a family business refers to highlighting the needs for
leadership quality. This plan helps to prepare an individual for his/her work responsibilities.
In family businesses they try to consult professionals like lawyers, bankers, financial advisor etc.
for succession planning (Hansen, Olafsson, van der Jagt, 2019.). To make a proper growth and
succession plan the advisor needs to consider the owner's and family's vision and needs to find
out ways on how to give a business a best possible financial shape.
Specially in small businesses it is better for the owner to have an outsider or a family member as
a partner. Keeping the business in the family provides living for the offspring. But if the family
member lack skills then it is a disadvantage for the company. It is a long term value and is driven
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by the performance of the family/company. It is very important for such businesses to understand
the purpose and main objective of the company. Business plans should be in such a manner that
it does not disturb the harmony of the platform or the business.
There are a lot of firms owned by families in all over the world, However it is analysed that
family business do have issues that effect not just the business but family as well as. Generally
no outsiders are allowed in family business as the owner or the members of the family wants
total control over the business.
REASONS FOR BUSINESS FAILURES:
External factors: The external factors are outside the control of the business, it can be
positive and negative. The change in economic and legal affect the working of the business. The
downfall in the economy, change in demand and supply,rate of return affect the business. In
some cases the business can not bear the loss and puts the owner under pressure and forces them
to quit. The company needs to do environment analysis in order to do proper planning and it also
helps in foreseeing the future (Canelas, 2018.). Economic factors plays a very vital role in
company's decisions.
Apart from economic factors legal,Political, technological, competitive etc. factors also affect the
business. Laws and legal environment plays a very vital role, government roles and regulations
and taxes which contributes in the economic growth and to help consumer from getting exploit.
Different types of businesses has different laws and regulations. Where as when a business is
considered as a legal entity it is subject to the state government. The business has to look for
consumer and employee protection act and if a business fail to fulfil any of the legal factors then
the company face losses.
Internal factors: This basically means all the strengths and weaknesses of a company.
These factors can affect the business objectives and how the company wants to pursue it. Unlike
that of external factors, the company can control the internal factors. It is very important for a
company to recognize its threats and to overcome it with its strengths. To manage the strength of
the business is the key element. The internal factors can be moulded by the management of the
business, it requires good leadership quality. The leadership style has a great impact on the
business. The internal factors that can be responsible for business failures are locations,
equipments, targets, employees and shareholders.
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Human resource that is the employee in an organisation plays a very vital role, it is the
responsibility of company management to keep the employ motivated and to give them time to
time compensation. It is required by the company to be updated with the technology and with the
change in taste preferences of its consumers. It varies from company to company that how they
deal with the factors affecting the growth of the company. The business faces downfall from the
external as well as internal factors, it can be both positive and negative. It all depends on the
business and how it deals with the factors affecting the processes of the business.
A business failure can be prevented by creating a good business plan and a business can learn
from its competitor. Business owner should take the competitor as a healthy challenge and can
have a competitor advantage in the market. A lot of businesses collapse due to the external
factors.
CONFLICTS AFFECTING THE BUSINESS:
A business needs to keep in mind its consumer behaviour which gets highly influenced
by the cultural environment around the consumer. If a company moves into a new market, the
business owner should analysis and understand the demand and the market structure of that
particular market it is representing. In other words the business model is driven by the local
culture, the products must be modified in such a manner that it pleases the commodity as well as
does not violate the culture of the region where the market is situated. The cultural problem has
become one of the major factor affecting a business still it is not easy to manage and understand
the diversities to work accordingly (Mazzarol,and Reboud, 2020.). It requires a good
management and analytical skills. There are various regional variations and often businesses
overlook the variations which affects the business directly. If a business fail to recognize the
variations looses the certain group of consumer segments. Cultural diversities does not just occur
to the consumer commodity but to the business entity as well. Before commencing a business in
any local market, the business owner should know how the political, economic, cultural and
other factors affect the business. On the other side if the company succeed in understanding the
diversities and worked accordingly by putting creativity and innovation to the work in order to
keep the consumer wants satisfied then the company experiences profit. Cultural and potential
issues can have both positive and negative aspect, It can determine both success and failure.
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QUITING A BUSINESS:
It is not easy for an entrepreneur to quit his/her business. A business is risk taking job and
requires capital to commence, even if the firm comes under a small business. If a business suffers
looses very frequently which forces the owner to quit. Issues can be external that is political,
economical, social etc. and internal. It all depends on the business structure and the business plan
the company follows, the plan is strong enough to backup all the forces then it helps the
company to retain in the business (Sorbe, and Johansson, 2017). It is important for the owner to
create an exit strategy before commencing a business, it makes the owner prepared for the
uncertainties. Business exit planning also give owners different types of liquidity.
Challenges are a part of business and sometimes it becomes a big liability for the owner to deal
with. The return on investments are low sometimes which de-motivates the owner from
continuing the business. There are several exit strategies that a firm can imply.
MOMA foods are located in a very good location and in the middle of the city centre. The
marketing strategies implied by them are innovative and creative and has a great consumer
relationship. It tries to adapt itself with the culture of its surrounding, due to the lock down the
enterprise has converted it services online in order to maintain public relations as well as
keeping up with the technology.
CONCLUSION:
A business is required to make an exit plan at the initial state of the business. The
business faces a lot of issues externally as well as internally. It has to follow the government
rules and regulations, cultural diversities needs be considered as an important issue and not to be
violated. Internal factors affecting a business can be controlled as it can a company's strengths
and weaknesses (Blomley, 2017.). Consumer behaviour changes with the change in socio-
cultural activities in the environment of the market, which is why the company needs to look for
its competitors and needs to have a competitive advantage as well.
In context to the MOMA foods the company can apply liquidisation as its exit strategy. MOMA
foods also looks after the cultural diversities and all the potential issues of the business.
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REFERENCES:
Fahed-Sreih, J. and El-Kassar, A.N., 2017. Strategic planning, performance and innovative
capabilities of non-family members in family businesses. International Journal of
Innovation Management, 21(07).p.1750052.
Kemp, R.L., 2018. Strategic planning in local government. Routledge.
Bradley, Q., Burnett, A. and Sparling, W., 2017. Neighbourhood planning and the spatial
practices of localism. Localism and neighbourhood planning: power to the
people.pp.57-74.
Hansen, R., Olafsson, A.S., van der Jagt, elt.al. 2019. Planning multifunctional green
infrastructure for compact cities: what is the state of practice?. Ecological
Indicators, 96. pp.99-110.
Canelas, P., 2018. Challenges and emerging practices in development value capture. Planning
practice: Critical perspectives from the UK. pp.70-84.
Mazzarol, T. and Reboud, S., 2020. Planning and Strategy in the Small Firm. In Small Business
Management .(pp. 95-152). Springer, Singapore.
Blomley, N., 2017. Land use, planning, and the “difficult character of property”. Planning
Theory & Practice, 18(3). pp.351-364.
Sorbe, S. and Johansson, Å., 2017. International tax planning, competition and market structure.
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