Unit 42 Planning for Growth: Strategies, Funding, and Business Plan

This report provides an analysis of growth planning, focusing on key considerations for evaluating growth opportunities, including technology, social factors, political and economic environments, new product development, and collaboration. It utilizes the Ansoff Matrix to explore market penetration, product development, market development, and diversification strategies, recommending market development for Pret A Manger's growth. The report also evaluates various funding sources, such as loans, personal funds, business angels, friends and family, and venture capital, suggesting bank loans and personal funds for Pret A Manger. Furthermore, it outlines the components of a business plan, including an executive summary, mission statement, and company background. Finally, succession options are discussed, providing a comprehensive overview of planning for growth and exit strategies.

UNIT 42 PLANNING FOR
GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key consideration need to be focussed for evaluation of growth opportunities..........................3
Ansoff growth Matrix .................................................................................................................4
Sources of funding and its evaluation..........................................................................................6
Business plan ..............................................................................................................................8
Succession option along with benefits and drawbacks:.............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Accessing growth and expansion is one of the major aspect in respect to an organization.
With respect to growth companies would need to analyse various aspects and perspective that
will wither affect or support the growth of the firm (von Schönfeld and Ferreira, 2021). Business
plan and the focus towards various aspect that may include in business plan would lead to enable
and assist the business in growth and expansion of the business. With the help of adequate
business plan the planning for growth would be made by the company that will lead to attain the
success along with meeting its goal in terms of acquiring a big share in market.
Pret A Manger is an international sandwich shop franchisee chain in UK. It was founded in
1983 with a headquarter in London, UK. its aim is to serve freshly made food to its customer
which is free from chemicals and preservatives.
This report will study about the various consideration that the business need to consider to
avail the growth opportunities along with Ansoff matrix. Likewise, the sources of funds,
Business plan and the succession option through which the company can exit the market is also
discussed in this report.
MAIN BODY
Key consideration need to be focussed for evaluation of growth opportunities
There are various factors which need to be focused and considered with regard to evaluation of
growth opportunities. These may include:
Technology:
This is an important consideration and factor which need to be focussed in relation to the
attainment of growth and success (Telukdarie and et.al., 2018). With a focus towards the
technology and its adaption the organization can attain the success and growth. Pret A Manger
need to be highly focus towards the changing technology and its need in business so that along
with grabbing growth it can also beet the existing market competition.
Social factor:
With regard to the presence of existing positive social force any organization can attain
success and growth (LEYVA and et.al., 2018). This is because the social factor is related with
the customer and with a presence of positive customer force the organization would be benefitted

in terms of high growth and success. The Pret A Manger would also with the presence of positive
social factor would growth and succeed.
Political:
This may include the policies and political pressure. With the presence of positive
political force, the Pret A Manger would make growth of its business. This is because in order to
grow it is highly required that the organization must comply with this force.
Economic:
With the presence of positive economic environment, the organization can make growth
(Kolomiets, Grinchenkov and Vodenko, 2019). This is because the presence of positive
economic environment and situation the organization can grab competitive advantage along with
attaining growth. The Pret A Manger can also make success with a consideration towards this
factor.
New product and services:
Innovation is a major factor and consideration with respect to growth (Kahn, 2018). This
is because with the making of innovation in the existing product or introduction of new product
lead to assist the Pret A Manger in terms of attaining the growth and success. With the aspect of
innovative and developed product the Pret A Manger can attract high customer base and thus
attain growth and success.
Collaboration:
This is also an important factor that is related with the growth and success of the
business. This is because with the concept of collaboration and performance of business with
collaboration with other companies and firm would enable high growth opportunities. Pret A
Manger in order to make high growth would also consider this factor so that it can make growth
of the firm along with enhancing the market share and accomplishing its business objectives.
Ansoff growth Matrix
This is one of the important growth matrix under which with the evaluation of various
strategies the growth of the business can be achieved. This majorly include:

Figure 1Ansoff Matrix
Source: Strategic Growth with the Ansoff Matrix, 2019
Market penetration:
This is an important strategy under which the companies make sale of existing product
the existing market. This will lead to raise the sale of the company along with raising the
customers (Dawes, 2018). This will lead to bring more profit to the company and is counted as
one of the best strategy to sale the existing product.
Product development:
As per this strategy the company make sale of the new product to the exiting market. This
is an important strategy under which the organization make sale of new product to the existing
market so that it can raise its product share in the market (Cleberg, 2019). This strategy will lead
to bring more profit to the company along with raising the number of product.
Market development:
As per this strategy the existing products would be sold in the new market. This is the
best strategy under which the company can make expansion of the market with the selling of its
existing product (Matrix and Ansoff, 2020). With the execution of this strategy the organization
can make growth in terms of expanding the market share with the selling of its existing products.

Diversification:
As per this strategy the organization sells new product in the new market. This is one of
the risky strategy because under this strategy the organization sale new product in new market
which bar a high chances of failure that may later followed with the negative impact towards the
brand image and sales of the company.
From the above strategy the Pret A Manger in order to peruse its growth would adopt the
strategy of market development so that it can make expansion of its operated market with the
selling of its existing and well known product. This will lead to attain high growth along with
making an exploration of new market. Along with assisting the Pret A Manger in growth it will
further lead to raise the sale proportion. With the concerned strategy the Pret A Manger can
make sale of its famous product and thus along with building growth it will further raise the
brand image of the company in the new market.
Sources of funding and its evaluation
Funding is one of the important aspect with reference to an organization and the running of
its business operation. In the absence of adequate funds, the organization would not be able to
operate its business. There are various sources of funding which Pret A Manger can adopt and
attain growth. The sources of funds are as follows:
Loan:
This is one of the major source of funding under which the business can take loan from
the banks and thus perform the business operation (Leboeuf and Schwienbacher, 2018). This is
one of the major source of funding which will enable fund and money to the business and thus
perform the business operation.
Advantages:
The taking of loan from banks would allow the arrangement of funds at low interest rate.
It is easy to manage with the no requirement of collateral. It is flexible as well as versatile that
allows the business to have high growth.
Disadvantages:
It raises the debt as well as the fees and penalties are high in case of bank loan. Likewise,
with the aspect of bank loan there is a high requirement of legal formalities.
Personal fund:

This is also an important and major source of funding that is used to finance the business.
Under this the owner make use of own fund and thus perform the expansion and growth
function.
Advantages:
This is one of the best and less risky source of fund. It is readily available and does not
raise high debt to the business. The personal funding is free from the aspect of interest payment.
Disadvantages:
This will lead to blocking of funds and thus the regular operation would be affected. With
the blocking of funds, the company cannot perform its other important function.
Business angles:
These may include the wealthy individual who make the investment of time and money
into the business (Zuhroh, 2019). These individuals make the investment in new and established
firm.
Advantages:
There are various advantages which may include the non-repayment of interest. They are
free to make the decision of investment quickly and with this mode of funding there is no need of
funding.
Disadvantages:
There is a high requirement of time in respect to angle investors. The part (share) of the
business need to be share with angle investors.
Friends and family:
As per this source the funds would be arranged from families and friends (Belousova and
et.al., 2019). These include the people are close to the business and have trust and faith in the
business idea of the company.
Advantages:
This is one of the easy and most continent source of funds from which the business can
arrange the funds. The interest rate in this source of funding is low and nil. With the existence of
relationship, the leniency in terms of repayment would be available.
Disadvantages:

With this source of funding the risk in relation with the affection towards the relationship
is high. This means it may have a direct impact towards the relationship with the friends and
family. The risk of withdrawing the finance is high in this source of funding.
Venture capital
venture capital is the most basic and common option for the small businesses. It is mainly
for the company with the growth potential and that can take higher risk as the growth is based on
future forecast.
Advantages
Venture capital is provided by the group of individual s who have experience and
knowledge of the strategic market. Due to the application of know your customer and money
laundering regulations it becomes a secure way of investing.
Disadvantages
It generally involves long and complicated process that makes venture capital an
unattractive source of funding. It involves high risk and at the initial stage small company can
not take such high risk.
In case of Pret A Manger the source which would be adopted for funding would include
the taking of loan from bank so that it can make expansion of its business. With the taking of
loan from the bank the Pret A Manger can perform the expansion operation with the inclusion of
low risk along with the payment of fixed and low rate of interest. Along with this option it can
also make an inclusion of personal funds that will support its expansion and growth strategy.
Business plan
A business plan is a written document which contains all the details of the company
relating to its goals, objectives, mission, vision etc. It describes the procedure to be followed
for the successful business plan.
BUSINESS PLAN OF PRET A MANGER
1. Executive summary
Pret A Manager is a place with a friendly environment, comfortable seating area, quality food,
quicker services. It is a place where left over or unsold food is provided to the charities it is a
great initiative by the restaurant. It is also protecting the environment by providing the food in
paperboard instead of sealed plastic. This business report has depicted crucial information
pertaining to future action that company is planning to undertaken in order to achieve higher

success and growth.
2. Mission statement
Mission statement refers to the value of a company on which it operates. The mission statement
of Pret A Manger is “ To avoid use of chemicals and preservatives and providing a quality
home-made food”. For achieving these objectives, Pret A Manger is applying various methods
from using natural ingredients to preparing its food at each location itself.
3. Company background
Since 1988, the company has its existence and employing around almost fourteen hundred
people from within the country (Bates, 2019). Pret A Manger has adopted its organizational
structure to be divided between stores and the main offices. Each store has its own hierarchy
of its manger.
4. Product description
The restaurant will provide with variety of food to its customer. It will offer all the sorts of
sandwiches, salads, sushi, soups, coffees, snacks. Customer can even choose the products which
should be added to their food. Along with organic food Pret A Manger will provide vegan food.
The company is providing processed or semi processed food to its customer.
5. Marketing mix
The marketing mix refers to the approaches which a company uses to achieve its targeted goals.
The marketing mix comprises the 4ps which are place, promotion, product, price.
a) Product
The target market of the Pret A Manger is a food service business, its product mix deals
with the food and beverages products. The kind of product it will provide is mentioned below:
1. Sandwiches
 Coffee
 Sushi
 Tea
 Snacks
 Cold drinks
 Fruit and fruit pots
The product mix is the main element of Pret A Manger as its brand value is created by the kind
of product it serves to its customers (Zafar and Akhtar, 2020). It can create its brand value by

bringing new product line in the market. By increasing or adding more products in its menu will
lead in enhancing satisfy of customers and brand image of organization in mind and hearts of
individual.
b) Place mix
It enumerates the places or venues where the products of the Pret A Manger could be served.
For making food product available to the customer it has adapted two ways- online and offline.
Customer can directly visit to its outlet and can order food or it can order the food online.
c) Price mix
The price mix is the strategy which tells about the prices and price range of the products. The
goal of this strategy is to maximize the profits by increasing the sales of the company. The Pret
A Manger is using two pricing strategy that is- competition based pricing and good value
pricing.
d) Promotion mix
The strategy is uses to promote the products and to bring to the knowledge of the customer that
company is offering such products. The promotional activities which is used by the Pret A
Manger is advertising, sales promotions, public relations, direct marketing.(Dodds and et. al.,
2018) It is creating its brand value by advertising about its opening in all the newspapers, radio,
television, etc.
6) Competitor Analysis
This strategy helps in identifying potential competitor of Pret A Manger which will help in
surviving in the market. There are various outlets providing same services and giving a tough
competition to Pret A Manger which are subway, costa coffee, McDonald's, etc. Subway allows
the customer to make their meals which is one of the biggest advantage of the subway.
McDonald's and costa coffee provides a wide variety of the food which attracts the customers.
For overcoming the market competition, Pret A Manger has introduced more than 200 types of
sandwiches for retaining the customer.
7)Swot analysis
STRENTHS
 It provides freshly organic food
WEAKNESS
 It does not provide 100% safety as the

 It has high customer loyalty
 It is located in the area where
consumer can easily approach it
food is prepared by various layers
 The choice for the customer is limited
OPPORTUNITY
 it provides organic food that is a
beneficial point for its growth.
THREATS
 Competition for the food chain is
increasing day by day
8)Operations
The company focuses to provide quality of services not just freshness of the food but en every
operational aspects. It tries to avoid chemicals and preservatives as it aim is to provide good
quality food. The workload of the Pert A Manger is high as in order to maintain freshness of the
food, the food is prepared then and there.(Hu, Huang and Li, 2019). They have also
collaborated with the various charities to serve unsold food to those who are hungry.
9)Financial Planning
Expense Amount (€)
Electricity 2000
Raw material 1500
Rent 5000
Marketing expense 500
Infrastructure expenseSmall Business Exit
Strategies:
5000
Wages 5000
Total 20000
Bank loan: For implementing the above business proposition the company will take bank loan
because of its low interest. The source of funding for financing the Pret a manager will be bank

loan because bank loan is a reliable source. At the initial stage of a business the company has
various ways to provide collateral. The paper work involved in the bank loan is high but than
also it is the safest form of funding any organisation. The company will take bank loan for
implementing the growth plan prepared above.(Morison, 2020)
10)Timeline
The company will implement this plan by 30 march 2022 as it require time to coordinate with
the supplier for the delivery of raw materials. The company have to build a new infrastructure
so as per the plans it will be done till 25 march 2022. After completing all the formalities the
company will adopt some marketing techniques for attracting customer towards its outlet.
Succession option along with benefits and drawbacks:
Succession planning can be defined as a process of existence from the market and
development of action plan against it. With the option of succession, the business of the
organization would either pass to the next generation or come to exist. The option of succession
and exit from the market are as follows:
Succession:
As per this option the business would be directly sold to someone who will continue the
business. Under this method the business will be sold to another individual which may a family
member or the friend or anyone (Fadeyi and et.al., 2019). With this option the owner will have
no official right towards the business but it will lead to continuous running or operation of the
business.
Advantages:
With this option the selling of business would enable high profit with the incurrence of
no expenses towards the business maintenance. There is no involvement of advertisement and
marketing expenses in respect to selling the business. This option will lead to make continuous
running of the business rather than closure.
Disadvantages:
It may lead to rejection. There are chances that the business may fail. The authenticity
and the brand image in the market would be affected with respect to the choosing of this option.
Merger: