Higher National Diploma Business Planning for Growth Assignment Report

This report, prepared for a Higher National Diploma in Business, focuses on planning for growth, specifically within the context of Pleasure Food, a small to medium enterprise (SME) in the UK food industry specializing in organic products. The report begins by examining key considerations for evaluating growth opportunities, including Porter's generic strategies (cost leadership, differentiation, and focus) and PESTLE analysis. It then utilizes Ansoff's growth matrix (market penetration, product development, market development, and diversification) to assess potential growth strategies. The report further explores potential sources of funding, detailing the advantages and disadvantages of internal and external funding options such as loans from banks, crowdfunding, and angel investing. A significant portion of the report is dedicated to the formulation of a comprehensive business plan, incorporating financial information and objectives for enhancing the organization's performance. Finally, the report concludes with an examination of exit and succession plans for small organizations, including the pros and cons of various approaches. The report aims to provide a practical guide to business planning and growth strategies, tailored to the specific context of the food industry and the operational challenges faced by SMEs.

Planning for Growth

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Justification and analysis of the key consideration to evaluate growth opportunities......3
P2 Evaluation of growth opportunities through utilising Ansoff’s growth matrix................5
TASK 2............................................................................................................................................7
P3 Potential sources of funding with their advantages and dis-advantages...........................7
TASK 3............................................................................................................................................9
P4 Formulation of business plan including financial information and objectives for enhancing
an organisation........................................................................................................................9
TASK 4..........................................................................................................................................11
P5 Exit and Succession plan for small organisation with their advantages and dis-advantages
..............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning refers to the advance analysing, monitoring and thinking that is related with
organisational operations. The main motive of business planning refers to accomplish
organisation goals and objectives by formulating effective policy and procedures. Planning is
utilised by an organisation for achieving future success and growth with the help of right policy
and procedures. There are various SME’s exists in the country which are supporting the
economy of a country (Xheneti and Bartlett, 2012). This report is written from perspective of
Pleasure food that manages its business in food industry. In present scenario, organisation
manages wide range of organic products. The existing focus of business is to increase its
business size for performing their operations at different locations. Moreover, report highlights
on growth opportunities, methods of funding and its advantages as well as disadvantages.
Business plan that undertakes objectives and financial stats of organisation will also include in
this report.
TASK 1
P1 Justification and analysis of the key consideration to evaluate growth opportunities
Pleasure food is a small organisation that offers good quality of organic products in the
market of UK. Along with this business house is also well-known for its catering services that is
used for satisfying needs or wants of large number of customers. Schools and collage are some
of the specific clients of pleasure foods. The firm also identifies different opportunities in market
that is used for fulfilling customer requirements related with organic food items. Like, in present
scenario consumer avoid junk food because it generates health issue. It works as an opportunity
for organisation to enhance business of organic products (Wynn, 2017). Moreover, pleasure food
is able to take direct benefits from customers and government by analysing growth opportunities
in business. Some of the key consideration related with business is mention as follow:
Porter’s generic strategy

With the implement of Porter generic strategy an organisation states different ways which
is used by organisation for accomplishing competitive edge in market. Some methods explained
by Porter generic strategy is mention as follow:
 Cost leadership- According to the cost leadership strategy organisation is focused for
providing good quality of products and services to the end user at minimum price. This
leads pleasure foods to gain competitive edge in market. Example- with cost leadership
strategy management of pleasure food is able to offer their products for a large segment
of customers such as to middle and lower section customers also by reducing its
operational cost to make products.
 Differentiation- According to the differentiation strategy business or an enterprise is
more focused for offering innovative and creative products to its customers (Ward,
2016). From the perspective of Pleasure food differentiation strategy leads management
to formulate products which are not exists in market. Example- Differentiation strategy
is focused in adopting growth opportunities by generating new products that
automatically enhance the market share for business through increasing in the number of
customers.
 Cost focus- With cost focus strategy it is analysed by management that according to
present market conditions most of the organisation is managing their business with the
help of cost focus strategy because it helps management to attract more number of
customers by offering products at low prices.
 Differentiation focus- Most of the organisation deliver and provide unique products to
its customers as it leads management to offer better products from the rival organisation.
Example- The term pleasure food utilise differentiation focus strategy that is used in
enhancing growth area by providing better growth area to its customers.
Pleasure foods try to enter into new market with providing better catering services to all students,
employees and organisation for satisfying customer needs and wants. Further, the management
of selected business is focused to implement differentiation focus strategy that is used in
accomplishing desired growth through providing organic products to provide better products
from the rival organisation (Vargo and Seville, 2011). Moreover, it also helps to attract more and
new customers to accomplish competitive edge in market.
PESTLE analysis

It is used by the organisation for analysing growth opportunities that exists in external
environment.
 Political- UK is a politically stable organisation that is performing their business with the
help of transparent legal structure and it is also beneficial for managing work according
to right business policy that helps to expand business in an appropriate manner.
 Economical- The existing economy of UK is more stable before the Brexit business but
according to present market conditions it is analysed by management that revenue for
each business is impacted (Moseley, 2013). This also generates complexity to manage
business at local level so the opportunity for growth relates with expansion of
organisation into another countries.
 Social- Individuals of UK are educated and also they are consuming foods which is good
for health. It refers that the trends for healthy products is also increasing with rapid
speeds so it work as an opportunity for business to increase in the number of customers.
This also refers strength for business such as revenue and customers are more strong that
aids to enhance business size.
 Technological- Pleasure food utilises or adopts technological aspects in each of its
operations and functions. Along with this technology is also used by all individuals so it
is also easy for pleasure food for promoting business products. This results business size
and expansion of business both are increased (Mbogo, 2011).
 Environmental- The term environmental safety is one of the crucial aspect for
organisation that is used by organisation for completing all work according to
environment aspect. This also results management must follow all environmental policy
to enhance its business size.
 Legal- The last aspect of macro environment refers to manage business for grow in
managing its business size in increasing grow to manage operations according to analyse
of organic products that make legal law of country. It also refers through managing
business organisation consider to work with right aspect.
P2 Evaluation of growth opportunities through utilising Ansoff’s growth matrix
Ansoff’s growth matrix
This is known as an effective tool which is used by the organisation for making strategic
planning and it is used by management for managing right structure with the help of companies.

It also refers that there are various task performed by management and all of them is used by
organisation for completion of work with the evaluation of various opportunities that exists in
market. The model of Ansoff matrix from point of pleasure food is mention as below:
Market penetration- According to market penetration strategy organisation is focused to
enhance its market share through selling organisational products into existing market. Example-
The market penetration strategy is used by organisation to offer its products at low prices in the
local market through which management enhance its customer share (Mason, 2015). It also
results organisation is able for enhancing market share in an organised manner.
Product development- According to the strategy of product development an
organisation is able to improve its product quality and also to add some modifications among the
feature of products. With use of product development strategy organisation is also able to fulfil
demand and needs of customers that increase its market share in an effective manner within local
as well as international market.
Diversification- This is one of the risky strategy which is impacting on organisational
goals and objectives because according to diversification strategy market area as well as products
both are improved by organisation (Mahmoudi and et. al., 2013). So this result it is easy for
management to satisfy and acquire more market area that leads management to utilise all
essential skills with the help of utilising proper marketing and operations department tools.
Market development- With the implement of market development strategy it is analyse
by the organisation that by capturing new market share such as to satisfy needs of customers.
Thus strategy requires to develop and enhances brand image of organisation which satisfies
needs and requirements of all customers. From point view of market development strategy it is
demonstrate by management that it is leading organisation to improve market area by using
brand image in an appropriate manner.
From the perspective of Pleasure food and as per consideration of market strategy it is identified
by using Ansoff’s matrix that Diversification strategy is an effective method that considers to
work with right strategy. This also leads management for managing work as per desired goals
and objectives which increase market area and also product portfolio of organisation.

TASK 2
P3 Potential sources of funding with their advantages and dis-advantages
Funding refers to process of collecting the funds that is acquired by the organisation for
completion of all operations and functions. This is used by management to attain desired growth
in order to achieve company goals in an effective manner. Along with this Pleasure food has a
speculation of £200000 yet it needs £300,000 for extending its activities in the UK showcase.
There are different inside and outer wellsprings of subsidizing which can be utilized by the firm
for gathering their outstanding assets of £280,000. These sources are examined beneath:
Internal sources- These are the inward sources inside the association for creating the
fundamental supports, for example, selling of benefits, decreasing working capital and so on.
External sources- These sources are the different alternatives which are available outside of
association for producing the assets, for example, bank advances, holy messenger financing,
crowdfunding and so on (Love and Roper, 2015).
Following outside sources can be utilized by Pleasure food for the necessary assets as given
underneath:
Loan from banks- It is the least difficult, normal and most straightforward route for meeting
the important supports required for playing out the different exercises of the associations. The
sum given by bank is for a particular timeframe and furthermore the bank charges a specific pace
of enthusiasm on the credit gave to the organizations (Artisan, 2015). For the Pleasure food, this
alternative is appropriate for social affair the rest of the assets for the accepted agreement as this
choice is increasingly dependable and productive for the organizations for satisfying their cash
necessities. The loan cost charged by the bank is likewise not immense and can be given to bank
in the predefined timeframe.
Merit- Preferred position of bank advances is that organization knows the sum which should
be paid on the time alongside the premium.
Disadvantage- Impediment is that organization needs to give guarantee or resources as
security for taking the advance from bank.
Crowd funding- This source is for the most part utilized by new pursuits and firms for the
assortment of assets (Lewis, 2013). In this, the organizations gathers or assembles the necessary
assets by taking limited quantity of cash from countless individuals as opposed to get-together
immense measure of cash from little gathering of people. This is done for the most part through

online entrances, for example, internet based life stages, sites and so on. Pleasure food can
likewise utilize this outside hotspot for gathering their residual assets for generating agreement
with different clients. Through this technique, individuals can give little assets as opposed to
giving huge measure of cash and furthermore organisation does not have to stress much if there
should arise an occurrence of dangers included.
Merit- It is useful for expanding the brand picture and furthermore to pick up consideration
of media and individuals.
Disadvantage- Its significant detriment is that it is an unpredictable procedure because of
association of numerous legitimate customs and furthermore the odds of taking of thoughts is
much is the organization doesn't have patent or copyrights.
Angel investing- In this the speculators having tremendous measure of cash puts resources
into firms for getting the value position (Dixit and Kumar Pandey, 2011). It is likewise a
compelling technique for gathering the assets. These speculators likewise offer help and
direction to the business visionaries when required. These financial specialists additionally
monitors out for the exhibition and development of the association (Mbogo, 2011). Pleasure food
can take help from heavenly attendant financial specialists for the vital subsidizes required for
the agreement taken from the Birchwood People group School.
Merits- Its bit of leeway is that the firm gets the additional information and aptitude of the
financial specialists alongside their contacts and assets.
Disadvantage- Its hindrance is that firm needs to give portions of the organization to these
speculators.
Overdraft- In this, an understanding is made between the new firm and money related
foundation in which a particular sum is attributed by the bank to the firm on the off chance that
the equalization goes down under zero (Blackburn, Hart and Wainwright, 2013). The bank
broadens the credit furthest reaches of the firm for taking the additional sum. Pleasure food can
likewise utilize this hotspot for social event the rest of the assets required for the agreement.
Merit- Preferred position of overdraft is that organization can utilize additional credit sum in
the midst of hardship.
Disadvantage- Detriment is that firm needs to pay the course of action expenses to the bank
for the additional credit.

TASK 3
P4 Formulation of business plan including financial information and objectives for enhancing an
organisation
Business plan is defined as a proposal document which is used by organisation for
formulating right strategy and policy that is used to accomplish organisational goals as well as
targets in an effective and efficient manner. This is also essential for the business to utilise right
information related with business activity as well as process of organisation. Further, it is also
important for pleasure food to complete work with the decided business plan in order to
accomplish organisational objectives and goals (Alsos, Carter and Ljunggren, 2011). Business
plan is also helpful for organisation because it is leading management to complete all work
according to decided business objectives and it also help to perform all operations according to
decided budget (Mbogo, 2011). From perspective of Pleasure food motive of developing
business plan is to attract more number of investor for organisation. Steps for business plan are
mention as follow:
Executive summary- Pleasure food offer and deliver organic products in the market and in
context of local UK market business is well-known for recognise by large of customers. Now to
enhance goodwill, number of customers and profits management is focused to expand their
market area. So the first step taken by organisation is to increase product portfolio and the new
products decided by management relates with formulating new products that is related with
bakery products such as cake, biscuit etc.
Vision- The main vision of pleasure food it satisfying the demand and need of customers
and it is also used for promoting business in food sector.
Mission- In context of pleasure food the mission of organisation is to provide good and
effective quality products. This also relates with vision because good quality products helps to
enhance market area for business with satisfying customer’s demands.
Objective
 The first objective of organisation is to complete organisational work and policy through
satisfying individuals needs and wants in an appropriate manner.
 Another objective of Pleasure food is to enhance their market share with 20% within as
period of 60 days.

 Last objective of organisation is to deliver good quality of products and to enhance
revenue for business with 10% in estimated time period of 3 months.
Financial information
To make a successful for the new range of organic products that undertakes bakery
products is used to perform all operations and functions within UK. Now with the increase in
market of UK it is identified by management that funds for organisation is increased with help of
managing business operations in an accurate manner. Along with this by collecting the funds
organisation generates better amount of funds with the help of raising funds from external
sources such as bank loan, overdraft etc. This is also mandatory for organisation because it leads
to satisfy the essential demands of company through generating maximum profits from business.
Online platform is an essential method for launching new business as well as products. The
forecasted budget for new organic products is mention as follow:
Total forecasted budget
Particular 31/12/15 ($) 31/12/16 ($) 31/12/17 ($)
Manufacturing cost 4000 - -
Advertising cost 1500 500 400
Commercials cost 500 600 800
Machinery cost 1800 1700 1600
Catalogues 450 250 500
With the above describe budget it is analysed by authorities of Pleasure foods to focus or
pay more attention for production cost and expenses. Along, with this it is also analysed that the
firm must generates attention for promotion of products. So more number of potential as well as
target customers is attracted by organisation and it is also analyse by management from budget
observation that catalogue must be improve because it demonstrate organisation products to
customers.

TASK 4
P5 Exit and Succession plan for small organisation with their advantages and dis-advantages
The environment of business is too complex in nature and this also consist different
influencing factors such as micro and macro business environment. Change in economy, political
conditions, technology update etc. are some of the effective methods which is used by Pleasure
foods to generate more profits from different situation and it also bring better existence in
competitive market in order to get profitable outcomes in the upcoming future. Some ways for
achieving success and exit from a business is mention as beneath.
Methods to exit from a business
Liquidation- According to the liquidation stage an organisation reached at the stage of
insolvency and finally generates decision for ending its business. All assets of organisation are
sold to reduce creditworthiness of shareholder, supplier and other creditors.
Advantage
 Once an organisation is liquid and its asset are released to pay amount of creditors than
all the remaining liabilities are written off. So it minimise the complexity for owners to
pay debt.
 All legal action are liable against business venture and make owner free from any kind of
penalty.
Dis-advantage
Business asset are not retained from selling off its asset that is used for generating cash and it
also leads management to make payments (Lewis, 2013). So opportunity relates with use of
valuable asset in the future is lost.
 Employees who are skilled and capable move towards rival organisation so workforce is
complex to recruit at time re-establishing business in future.
To sell business- The another option to exit from an enterprise is to sale the business in an open
market. Third party, competitor organisation, investors and many more are interested for
managing business.
Advantage
 Employees are familiar with the business functions and operations so it is easy to keep
constant business operations and functions.

 Managing the buyout from other party leads business to generate loyalty because of their
stake with in business. So now buyer generates more efforts to accomplish success.
Disadvantage
 Manager and employee may loss interest to perform business activity as they constant
face similar challenges.
 Due to less communication between management and employees it is complex to achieve
desired results.
Methods to achieve succession
Merger and acquisition- Within merger and acquisition of business more than two
organisations perform its business in a similar approach. This also refer that as compare to
common business it is easy to understand business perspective. Moreover, merger also helps
organisation for enhancing company strength.
Advantage
 The economy and financial position of organisation is improved by engaging two
company operations.
 Increase in market share and reach for business with the use of diversification strategy
and it also increase sales opportunities.
Dis-advantage
 Merger reduces competition from market due to which monopoly structure is increased
in industry.
 The new organisation faces challenge because each company follow its own method to
complete work. It also refers that operations of organisation is impacted due to change in
company rules.
CONCLUSION
With the analysis of above information it is concluded that planning is one of the most
important element for organisation. With formulation of right plan business houses are able to
accomplish all objectives in minimum time period. Further, an organisation also identified
impact of external factors on business operations and functions. Pestle and Ansoff’s matrix
model is used by management to analyse the growth opportunities in market. Along with this
different source of funding is also used by organisation that makes a successful launch for new

products. In the last, with an effective business plan it is also easy for organisation to attract
more number of investors and to achieve all business goals through use of available resources.

REFERENCES
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Online
Business Exit and Succession Planning. 2018. [Online]. Available through:
<https://www.ldb.com.au/our-services/business-exit-succession-planning>.