MOMA Foods: Evaluating Growth Opportunities and Strategic Planning

This report provides a comprehensive analysis of growth strategies for MOMA Foods, a small food and drinks business in London. It begins by analyzing the external factors impacting the business using PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors. The report then explores Porter's Generic Strategies, including cost leadership, differentiation, and focus, to assess competitive advantages. Furthermore, the report evaluates growth opportunities using Ansoff's matrix, focusing on market development, product development, and diversification strategies. The analysis extends to the identification of different funding sources for businesses, both internal and external, crucial for supporting growth initiatives. Finally, the report examines exit and succession strategies relevant for small organizations, providing a holistic view of strategic planning and business development. The report aims to provide a detailed overview of the content and business strategies of MOMA Foods.

Planning For Growth

Contents
INTRODUCTION...........................................................................................................................................3
TASK1...........................................................................................................................................................3
P1 Analyze key factors that consideration to evaluate growth opportunities in organizational context 3
P2 Evaluate growth opportunities with Ansoff's matrix..........................................................................5
TASK 2..........................................................................................................................................................7
P3 Different sources to acquire funds for businesses..............................................................................7
TASK 3....................................................................................................................................................10
TASK 4........................................................................................................................................................13
P5 Exit or Succession strategy that utilize by small organization...........................................................13
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................18
Books and journals:...............................................................................................................................18

INTRODUCTION
An organization stands in a market for its survival and growth for which it uses many
tools and aspects to recognize a market demand for its growth, as the growth is a main Concept
for a business so that it can survive in an Inflationary market (Cilinskis and et, al., 2017). A small
enterprise is that which runs by investing minimum amount of investment starts with 25 lakhs
but not more than 5 crore. These enterprise enjoy their benefit by themselves and has less
number of employees. There are a lot of factors which affect a business growth and its Strategies
for which it have to analyze actual market demand and growth aspects to run a business
successfully. This report is MOMA Foods (Denys C. Shortt OBE) is the firm that runs their
small business in London, UK deals in providing food and drinks as per consumers demand to
maintain and achieve its business objective. It is a small company that provides food and drinks
to the customers according to their taste and preferences and having approximate 66 employees.
This report is going to analyze every macro environment factors which affect directly on
business growth and this will be analyzed by porters five Force model and Ansoff matrix. These
are the essential tools for business which helps to achieve business its long term expansion also,
the strategies which have to use a business for its expansion and dissolution, the sources of funds
which is needed by an organization to run properly. As these factors are helpful to organize
strategies, an organization makes investment for.
TASK1
P1 Analyze key factors that consideration to evaluate growth opportunities in organizational
context
A business organization has much good luck for its growth, but among that good luck,
many factors are affected by it, due to which, it is not able to grow better. Using the right factors,
the manager brings that good luck and uses them properly which gives a business the courage to
stand up in the market. Use of pastel analysis is the best; this Analysis is used by the manager of
MOMA Foods Company to identify the strategies of its market and to take them to a level which
is described below:
Political factors:

Political factor creates much influence on the business performance as if business
performs under the regulations of political parties and government regulations it will achieve
high growth and will be beneficial for the society. Therefore, it will enhance the productivity and
profitability of the organization. In context with MOMA Foods organization, the company is
highly impacted by government regulations as by the time government made several
amendments for small and large organizations in UK that will influence on the extension of an
organization. As influenced by Brexit, UK imposed several regulations on companies operation
by exit the flow of import and export goods from European countries that will resulted in high
cost products because of high raw materials and labor (Deng, 2018). MOMA is the small form
that needs so much aware of political factors because political factor include political stability
that affects all organization whether they are small or large. For small organization it becomes
hard to find that how they affect their organization.
Economical factors:
Economical factors States the conditions of economic market which creates impact on
employment opportunities inflation, demand and supply of the economy. In UK the country is
facing many issues regarding sales and purchase because of the unhealthy conditions over past
few months. Due to covid-19 situation demand and supply of the economy has flatter its curve to
downwards by which people get offended of offline purchase through health concerns. That has
impacted on sales and profitability of MOMA Foods organization. Due to which it has to
maintain proper sanitizing facility and provide healthy products in order to run effectively and
efficiently. Economic factor include disposable income of individual person that means it
consider employees of MOMA Foods organization, so in this it affects the organization.
Social factors:
Social factor put highlight on consumer behavior and their wants of significant products.
That connects various elements of like personality, attitude of consumers. It is a significant
aspect for managers to analyze every element of consumer preference and market trends. In
context with MOMA Foods group, they offers consumers to buy product online in past pandemic
crisis which provide convenient facility for the consumers and therefore, increases the demand of
products which continues the flow of profit and certainty of the organization (Fasbender and et.

al., 2019). It become threat of MOMA food products because day by day the consumers demand
continuously increasing that means they should be follow all the trends if company wants to run
their business successfully.
Technological factors:
Technological factors make an organization to accept and adapt current Technologies and
innovations in finalize their products and strategies which gives better quality services and
consumer satisfaction. Everyday consumer wants something extra and innovative which could be
implementing by use of upcoming Technologies. In reference with MOMA Foods group they
adopt digital promotion technology by which they can easily reach to number of consumers and
attract them through their innovative advertisement and online delivery services. Also they assist
finance and software functions CRM which increases efficiency and product accountability.
Legal factors:
Legal factors evaluate State Law and regulations imposed by government under
provisions of act which needs to be followed by every organization before commencement and
begin any performance. This law includes with aspects of employee welfare, trade policies,
malfunctioning, and Consumer Protection law equality act 1942. MOMA Foods group must
evaluate their operations under these lawful provisions and ensure safety and employee welfare
by making appropriate strategies and policies without being into any disputes (Fernández and et.
al., 2016).
Environmental factors:
Environmental factors indulge in organization to fulfill needs of environment in order to
persuade benefit from this society and community it work for. These elements focus on
environment stability by making sure the right use of its available resources. In context with
MOMA Foods group, organization make environment friendly products and mechanism for its
manufacturing also they must use organic items and less polluted free plant and machinery. Also
provide enormous opportunities for job employment to reduce poverty.
From the above discussion it is analyzed that external factors plays a vital role in an
organization with the help of pestle analysis. As these factors are necessary to evaluate in

business performance through which managers of MOMA Foods group implement and
acknowledge all the uncertainty and complex situations which can be a barrier for its growth
(GiLEE and BokCHOI, 2020).
Porter's Generic strategy:
This strategy put influence on the profitability growth in organization by facing
competition and determines advantages by its technique which are described below:
Cost leadership: this strategy makes an organization to become a low cost producer by
effective cost reduction tools during production. MOMA Foods group could use easy access to
raw material, available technology in effective manner through proper guidance to workforce.
Differentiation: This strategy leads to innovation in product which makes them unique
against competitor. MOMA Foods group could enjoy these market competition by making
health concern products and use quality ingredients so that consumer will prefer to buy them
first.
Focus: In this strategy, firm must focus on particular target segment and required to fulfill
their demand before attaining to new market. So that MOMA Foods group could increases its
sales by 10% in existing market.
Above given Porter's Generic strategy is important for MOMA foods company because it
gives important information about their strategy that on which state they lack their so that they
can improve their strategy and achieve their desired goals and objectives.
P2 Evaluate growth opportunities with Ansoff's matrix
Every organization has to formulate effective strategies for smooth functioning, for which
ansoff matrix is one of the excellent tool in order to examine future growth and accountability. In
context with MOMA Foods group, these strategies are defined below:
Market development:
Through the use of the strategy a company can set its target by analyzing market demand
and its trends which will help an organization to expand in wide regions. It includes more

influence of existing product into existing market. This enhance understanding of economies of
scale and welfare of society.
Advantages:
 This will help the organization to remain active in the eyes of customers.
 With the market development company can enjoy ample opportunities for its growth and
success.
 It can create competition among Rival firms such as kinary, Lifes2good and more.
Disadvantages:
 This strategy proves to be expensive and costly due to requirement of higher investment.
 Also, proves to be a time consuming task for managers as it require research and
development.
 There are several chances of risk that would be charge high cost from the organization
(Karve and et, al., 2020).
Product development:
This segment enables the features for the organization to diversify their product into
various categories under one roof. This enables a firm to produce new product in existing
market so that consumer could have variety of options. Which attract large buyers hence, enjoys
competitive advantage. As like MOMA Foods group providing food and drink products to the
customers. It is important for MOMA that they continuously develop their products with new
innovation because it really helps to capture the market easily.
Advantages:
 It promotes growth and expansion of the organization by increases profitability and
productivity.
 The company provides existing products to the existing customers who are loyal towards
the organization could positively impact on product mix.

 This strategy attracts not only consumers but supplier also to provide good quality raw
material at cheap rates.
Disadvantages:
 Due to product enlargement, it includes enlargement of operational activities also which
require more number of employees.
 By providing job opportunities, it could enhance the cost of final output which makes the
product expensive.
 The risk of loss of existing customers could be borne by the company the failure of other
new products.
Diversification:
As per the strategy, company launches new product in the new area or region to Grab the
opportunity of that particular market and utilize available resources to its full extent. MOMA
always tries to diversify their food products so that it attract the consumers and they purchase
their food products that increase their sale and revenue. The managers of MOMA Foods group
assist this method as a way to indulge numerous customers towards them (Liu, Te Pai and Lin,
2018).
Advantages:
 The strategy leads to firm expansion and opportunities two face various challenges
positively.
 Through product diversification, the company eliminates the problem of unemployment
which will be in the favor of society and Nation.
 The company can retain its brand name and reputed image for long-term aspect.
Disadvantages:
 There is high financial risk in product diversification.
 This requires use investment and capital contribution.

 Failure of this can lead to insolvency and permanent dissolution of firm.
TASK 2
P3 Different sources to acquire funds for businesses
A company can generate its funds by internally or externally. Funds are necessary to
operate day to day business activities or make investment (Loures and et, al., 2018). Internal
funds could be generated by contribution of capital, rather external funds generate by loans,
Financial Institutions etc. If MOMA wants to increase their capital and revenue then they have to
know about funds sources because it helps to expand their business also.
For MOMA Foods group, here are list of sources each has its own merits and demerits.
Bank loan:
This source is mainly used by much organization to fulfill its financial needs. The loan
can be granted by private or public Bank institutions at a fixed rate of interest that has to be
repaying at maturity date. MOMA Foods group borrow money through these institutions:
Advantages:
 It has very easy and less time consuming procedure to borrow money from banking
institutions.
 It has minimum interest rates which can be repay by the company favorably.
 These institutions provide discounting offers as well through which company can grant
loan very often.
Disadvantages:
 There could be a rise of complex situations in fulfilling formalities of loan procedure.
 After attaining maturity date, banking institutions could high their interest rates (Mamoon
and Ahsan, 2017).
 There is a need to put some asset for collateral in order to borrow money.

Loans from friends or relatives:
Under the source money is borrowed by close friends or relatives without paying high
amount of interest rate. This source is more flexible for MOMA Foods group. It is one more
source that really helps in arranging funds for MOMA foods organization.
Advantages:
 This source is free from legal formalities.
 This source proves to be cost effective as relatives do not or slightly charge interest
amount.
 It is the most valuable source to acquire money for operations.
Disadvantages:
 This could be not a proper way to acquire funds.
 Huge money e could not be lent from this source.
 Time is a big barrier in this source, as the money could not borrow for a longer period of
time (Morphet, 2017).
Venture capital:
It is the most significant way for newly and small startups, owner will be liable for the
profit and interest as well. MOMA Foods group could collect funds from this source effectively.
Advantages:
 Funding can be result in financial opinions also, that will assist an organization towards
the path of success.
 There is no requirement to pledge any asset.
 This show develops good relations with the industries.
Disadvantages:

 Through opt this source; an Organization could loss its control over the operations.
 There is a lot risk and uncertainty indulges in this method.
 The process involves in this method proves to be long and complicated regards with the
venture partners.
By examine above methods, there are several sources and opportunities to raise funds for the
organization in order to expand its product or diversification. Also, Ansoff's matrix tends to be
an effective way for organizational structure, perceptions and development.
TASK 3
P4 Business plan of organization that includes financial information and strategic objectives
Business plan is a tool that used by companies for their efficient growth, it include
organizational objectives and goals in a written form. It also include the method and time frame
that adopted by the firm for the accomplishment of goals and targets (Rauhut and Humer, 2020).
It is road map that provides guidance and directions to the organizational firms. Business plan
including financial assessment that shows the inflows and outflows of the company which helps
to attain the organizational targets that is profitability and productivity of company. MOMA
Foods group is small organization and for that it is very essential for them to prepare a business
plan for the sustainable growth and attainment of objectives. It helps in achieving their desired
goals and For gaining practical knowledge of business plan, MOMA Foods made their business
plan that is well explained below:
Business Plan Template
Executive Summary MOMA Foods is the UK firm that deals in the distribution offood
and beverages to the customers. It is the social firm that helps to the
society by satisfying their needs and wants. Due to the COVID-19
sales revenue decline but they started to sell their goods and
services by online such as Twitter, Face book and LinkedIn so that
they cope up with their challenges. They are the distributor of
Johnson & Johnson, P&G, Colgate and Sacla. They continually
grow their business every year so that they lead in the market. Their

main agenda is to create and maintain wonderful working
environment that helps the community.
Business details Vision: MOMA Foods vision is “to improve the quality of food
products”.
Mission: Their mission statement is “to provide best quality of
goods and services to the customer for satisfying their wants and
desires”. They also have a passion to achieve their growth and
excellence in efficient way.
Objectives: MOMA Foods have a very clear objective i.e. “to
delight their customers through creation of loyalty by lifetime”.
Because they believe that company should have responsibility and
sustainability.
Industry & market
analysis
Market and industry analysis is the method that uses qualitative and
quantitative assessment of the market. MOMA Foods always try to
assess market trend so that they can updated with the upcoming
challenges. It includes customer segments, competitors, and size of
market in value and volume terms and buying patterns and
economic environment.
Customers & value
proposition
Customer and value proposition basically is the statement that used
by the companies to know the behavior of consumers that why they
chooses the product or services. It is the tool for targeting the
potential customers through analyzing their taste and preferences.
MOMA Foods group focused on their customers value by analyzing
their needs and wants so that they satisfy. MOMA Foods used tools
for identify the taste and preference of customers so that they
understand their values proposition and then provides goods and
services. It should be include target market segment and substitute
goods that offered by the competitors for gaining the knowledge of
competition in the market (Sakieh and Salmanmahiny, 2016).