Planning for Growth: A Business Report for Pleasure Foods (UK)

This report provides a comprehensive analysis of Pleasure Foods' growth strategy. It begins with an introduction to the company and its operations in the UK, focusing on its organic food offerings and catering services. Task 1 evaluates key considerations for growth opportunities, including Porter's generic strategies (cost leadership, differentiation, etc.) and PESTLE analysis (political, economic, social, technological, legal, and environmental factors). The report then utilizes Ansoff's growth matrix to assess market penetration, product development, market development, and diversification strategies. Task 2 assesses various funding sources for the company, including internal and external options such as bank loans, crowdfunding, angel financing, and overdrafts, along with their respective advantages and disadvantages. Task 3 focuses on a business plan for growth, including financial information and objectives to scale up the business, and Task 4 addresses succession and exit plans for small businesses. The conclusion summarizes the findings and recommendations for Pleasure Foods' future growth and success in the UK market.

Planning for growth

Contents
INTRODUCTION.....................................................................................................................................3
TASK 1.................................................................................................................................................3
P1: Justification and analysis of key considerations for evaluating growth opportunities..................3
P2: Evaluation of growth opportunities using Ansoff's growth matrix..............................................4
TASK 2.................................................................................................................................................5
P3: Assessment of sources of funding along with advantages and disadvantages..............................5
TASK 3.................................................................................................................................................7
P4 Business plan for growth which include financial information and objectives to scale up a
business.............................................................................................................................................7
TASK 4.................................................................................................................................................9
P5: Succession and exit plan for small business with its advantages and disadvantages...................9
CONCLUSION...................................................................................................................................10
REFERENCES....................................................................................................................................11

INTRODUCTION
The word planning can be defined as advance thinking in order to formulate a plan for
performing various operations that helps organisation to accomplish their desired objectives.
Whether planning for growth is preparation of effective strategy through which organisation
success and grows for long term in the future. Small business or organisations are recognised
as SME that generate small revenue and provide employment to few individuals that help to
provide support to the government. The work on this assignment is done from the perspective
of Pleasure foods which is operating their business in UK. They provides organic food in
market that helps them to enter in the food industry and opens new market area for the
customers by providing different options to them. In this assignment various types of growth
opportunities are evaluated. Along with these advantages and dis-advantage for the pleasure
food and a business plan which includes financial approaches in order to achieve more
success in the upcoming future.
TASK 1
P1: Justification and analysis of key considerations for evaluating growth opportunities
Pleasure food is the medium sized organisation of UK which offers different range of
organic foods products in market to satisfy needs of customers. Along with these emerged its
business in catering services through with they provide foods in colleges and schools. It
results that firm is able to capture high market because they are providing good quality of
organic food in market. In present scenario customers are aware about health issues so they
are more attracted towards healthy and tasty food. This opportunity helps organisation to
enter in market by introducing new products to consumers. So they can earn direct benefits
from customers and UK government. Some key points are considered to evaluate various
growth opportunities is mention as below:
Porter's generic strategy
This strategy helps an organisation to accomplish their goals by formulating
competitive edge among the rivals. According to Porter there are four different strategy that
helps an organisation to retain at top position for longer period. Some elements of these are
mention as follow:
Cost leadership- According to this strategy small firms or companies need to provide
good quality products to its customers at low prices. This helps an organisation to gain
competitive advantage in the industry. Like pleasure foods expand their business in different
areas by providing healthy food at minimum price.
Differentiation- It is necessary for an organisation to provide unique products to the
customers. To bring creativity in products pleasure food try new methods of innovation in
order to increase demand of their product. Along with these it helps them to offer those
products that are not available in market. Through this strategy it is easy for pleasure food to
accomplish their goal within minimum time period.

Cost focus- With implementation of this strategy an organisation is totally focused to
fight on competitive prices by which they provide their products at low prices. This helps
pleasure foods to attract more customers because they provide foods at low prices.
Differentiation focus- According to this strategy it is beneficial for organisation to
differentiate their products form other available products. As new and unique products
attracts end user as they are manufactured according to customer demand. Similarly it helps
pleasure food to increase their brand recognition in market.
Management of pleasure foods decided to increase their market share. For this they
enter into catering services so they decided to make contract with schools or collages. In this
task they decided to formulate contract with Birchwood community school. So they can
provide organic food to students. Moreover this activity also helps them to promote and
introduce their product to large number of customers with in minimum time period.
Pestle analysis
PESTLE analysis helps management of pleasure foods to predict external factors of the
environment that impacts on operations and growth of them.
Political- UK is a developed country due to which there are minimum changes in
their policy that are formulated by ruling government. Therefore it is easy for pleasure foods
to develop effective legal structure to perform its activities.
Economical- After the Brexit there is up and downs in economy of UK but due to
strong policy the market condition is not impacted on high values. Therefore they are
different opportunities generated in market among which one of them is capture by pleasure
food to enhance their revenue.
Social- There is drastic change in the society of UK therefore recent trend in food
industry is that people are aware about harmful effect of fast food. It creates positive factor
for pleasure food because it increases the sale of their products.
Technological- To sustain in present market it is essential for organisation to adopt
latest technology. Therefore pleasure adopts latest technology that helps to offer and sale
their products through various digital platforms.
Environmental- Management formulated strict policies to produce the organic food
which determines that they are concerned about the safety of environment and its natural
resources. Along with they also operate their operations by following laws of UK.
Legal- The government of UK provides support to SME by formulating liberal
policies for them. Thus it is easy for pleasure foods to increase their market share by entering
into new markets for organisation.
P2: Evaluation of growth opportunities using Ansoff's growth matrix
Ansoff growth matrix

Ansoff growth matrix work as a tool that is used for develop strategic plan for the
organisation. the main intention of matrix is to develop strategy for future that helps them to
determines different ways to achieve success in future. In context of pleasure food this model
helps them to increase the sale of their products in UK market. Explanation of this strategy is
mention follow.
Market penetration- This strategy is focused for increasing the market area of
pleasure foods. According to this tool organisation sell their current products in the existing
market. Like pleasure food implements this strategy in local market of UK as they have
enough knowledge about the customers.
Product development- With implement of these strategy companies introduces their
new products in the existing market. Through executing product development strategy
pleasure food make some modification in their features or quality of their products. Apart
from these it helps them to make products according to the need of customers.
Market development- This strategy states that organisation has alternatives to
increase its market share through selling their existing products into new market. It is a risky
approach but it beneficial for pleasure food because it helps them to attract new customers.
Moreover it is complex approach because for successful implementation of these organisation
needs to understand the behaviour of customer which is a time consuming process.
Diversification- The main focus of this strategy is to develop a new process. It
includes development of new product and sale them into new market which is totally diverse
from organisation current strategy. Within pleasure foods this strategy is used by them in
order to increase their market share but to gain positive results from this strategy it is
essential for organisation to increase the skills of their employees.
As compare to all above strategy the most effective strategy for Pleasure food is
diversification. The company is in new UK market along with these they also manufacture
organic products which is also a new concept. So this strategy is useful for them as it helps
them to recruit skilled employees that helps them to achieve their desired goals in UK food
industry.
TASK 2
P3: Assessment of sources of funding along with advantages and disadvantages
Funding is the way to gather necessary funds that are required by the organisation in
order to carry out their operations and activities that are necessary to attain the desired goals
of organisation. Pleasure food is having £20000 to manage their operations but they require
more funds to operate their business successfully in UK market. Some internal and external
sources to collect fund that is used by companies is mention below:
Internal sources- Internal sources refers to those ways through which organisation
raise their funds by make modifications in internal department. Like by selling their asset,

implementing new method to reduce their production cost and managing working capital
effectively.
External sources- This is the way in which wide range of options are present outside
the organisation to raise funds which includes bank loans, venture capitialist and crowd
funding etc. some of the external sources that is used by pleasure food is mention as follow:
Bank loans- This is the traditional method which is used by all companies to raise
funds. As it is the simplest, easiest and common way that generates necessary funds for the
organisation. In this method bank provides funds for specific period with certain charges on it
that are essential to fulfil by customers. For pleasure food it is the suitable option to gather
funds because this option is more reliable and suitable for the companies as bank will not
charge high rate of interest from customers.
Pro- The benefits to raise loan from bank is that in these it is already explained when
the company need to pay their funds.
Cons- To raise funds from bank it is essential for organisation to deposit their asset as
a security in the organisation.
Crowd funding- This method of raise funds is mostly used by the new start ups or
ventures to collect the funds from market. For these firms collect small amount of money
from huge number of people. For executing this methods pleasure food need to acquire online
portals because this is the best method to attract investor within minimum time period.
Further company also approach Birchwood school to generate funds like from its employees,
trustee etc. As it is the safest method because in this people invest small amount of funds so
there is less risk involved in these organisation.
Pro- This is useful for increasing the brand image of the organisation by attracting
media and investors.
Cons- The process of crowd funding is very complex it includes several individuals
that invested their money. Therefore organisation has to fulfil too many legal formalities to
maintain records of individuals.
Angel financing- In this process an single individual invest enough money that helps
companies to complete their operations smoothly. But in return they require equity rights in
decision making of organisation. Angel investor also provides proper guidance and support to
the entrepreneurs. Along with this they monitor the regular performance of employees. It is
beneficial for Pleasure foods to take help of angel investor to fulfil the contract that is taken
from Birchwood community school.
Pros- This is beneficial for organisation as the firm get guidance from expert persons.
Cons- To gain funds from angel investor companies need to give some rights and
share to investors.

Overdraft- Overdraft refers to an agreement in which an organisation and financial
institution are agreed to provide some funds in those situations when there is less balance is
present in organisation when they are needed to generate payments. In these bank extended
the limit of organisation in order to pay extra amount.
Pros- Benefit of overdraft is that SME are able to pay extra amount in times of urgent
payment.
Cons- Sometimes bank charges high amount for providing such facility that increases
credit limit of organisation.
TASK 3
P4 Business plan for growth which include financial information and objectives to scale up a
business
Business plan is the proposal document that is prepared by an organisation. It include
strategies and policies in order to achieve the desired goal and target in efficient and effective
manner. Moreover they also contain necessary information that is related with their activities
and process of pleasure food in order to complete their routine functions. It is essential for
pleasure foods to develop an effective business plan that helps them to sustain them in market
for longer period. Further it also helps to make effective decisions to solve complex situations
in order for betterment of the organisation.
It also empowers company to execute policy and strategy for future that is related
with the investment. The major motive of business plan is to gain the attention of large
number of investors in order to make sure them that investment will provide them great
return and benefits from their invested amount. Pleasure food is new start-up which
determines that it is a small firm that offer organic food to the society of UK. They
successfully established their business in food industry of United Kingdom now management
focused on increase its business by going beyond their local market. So for this they need to
formulate effective plan that helps to avoid uncertainties in market some essential of business
plan are given below:
Executive summary- Pleasure food deals in organic food with motive of providing
healthy food to its customers. For these organisation is introducing organic cakes and
chocolates for providing taste and health benefits to end user which determines health is the
factor in UK market that helps organisation to grow their business effectively.
Vision- The vision of pleasure food is to fulfil the need and demand of customer of
organic food. Along with this they also want to promote its products among whole world as
an innovative and hygienic manufacture of foods.
Mission- To accomplish their vision pleasure food develops small task which is
known as mission of them. So the main mission of them is to provide organic food to
customers with best quality.

Objective- The pleasure food develops smart objective in order to accomplish their
goals easily.
o The objective of company is to capture the huge area of UK food industry.
Specifically for UK they decided to hold the 40% market of organic food.
o Another objective of organisation is to create unique promotion for their product in
order to attain capture the market.
o Last objective of pleasure food is to target sports persons, athletes, health conscious
individual to sale their products.
SWOT analysis
Strength
o Pleasure food introduce new product
which is organic food that is unique
from existing products food products.
o Management of organisation is aware
about the trends that exist in the UK
market which provide plus point for
them to gain competitive edge.
Weakness
o Pleasure food is SME which is
operating their business at small level
therefore competitors give tough wars
to them.
o Company is dealing in organic food
sector therefore they does not have
wide option to offer different
products in market.
Opportunities
o In recent years people are more aware
about health which open new market
for food manufactures to create
healthy products.
o UK government is supporting SME to
establish themselves successfully in
the market.
Threats
o After Brexit there are several changes
are implement by government due to
which pleasure food faces different
issue.
o In UK food industry, cut throat
competition is present in market.
Therefore is hard to sustain in
industry.
Strategy for new product- Some of the strategies that helps pleasure food in order to
attain their goals successfully within minimum time period are mention as follow:
Respond to change- To enhance the sale of their products it is important for
organisation to predict the changes that are present in market. This results pleasure food
easily covers all aspects that are present in industry to achieve goals easily. Example- change
in demand of the customers from fast food to healthy food so company develops strategy for
current trend.
Adopt essential changes- For achieving high success in the market customer feeback
and review are the major tools that helps an organisation to increase the number of customers.
It helps to find out the alternative of problem that is present in the market by interacting with
customers.

Financial information- Finance is the most important factor that impacts on the
companies that are new in market because due to risk it is difficult for them to invest their
funds properly. For these pleasure food decided to control the risk by formulating the budget
for organisation.
Particular 31/12/2017 31/12/2018 31/12/2019
Production cost 5000 3000 1700
Technology 1500 1800 2100
Advertisement cost 1100 1200 1000
Catalogues 300 400 600
Total 7900 6400 5400
TASK 4
P5: Succession and exit plan for small business with its advantages and disadvantages
Environment in which business operates their plans is very complex and
unpredictable. It includes several factors such as technological, political, legal etc. that
creates issue and challenges for pleasure foods. This impact on their profitability therefore
management prepare some ways to exit successfully from business is mention as follow:
Liquidation- It is the most difficult stage in which company is insolvent so they their
assets and stop their operations in order to pay their debts. By these it is easy for them to pay
their creditors, suppliers and shareholders.
Advantage
o This method is useful for owner because in these it is easy method creditors cannot
claim on personal property of owner.
o Company need to face any legal is they stop operations by paying all debts.
Dis-advantage
o After sell of their asset it is difficulty for company to retain their business successfully
in the market.
o Stakeholders of the company will not perform their work with the organisation due to
face difficult challenges such as insolvency.
Merger and acquisition- This situation states that in this two companies make
agreement and decided to increase the value of their business. Like it increase the market
share and capabilities to operate their business successfully in large market area. Along with
these it helps pleasure food as well as other company to increase their profitability.
Advantage
o With implementation of this strategy the company increases their economy of scale by
sharing their resources and capabilities.
o Market share of the organisation will be increased due to diversification and
combination of two business.

Dis-advantage
o This strategy reduces the competition in market due to which monopoly will be
created in the market that impacts on overall industry.
o It is difficult for the company to make balance between two different management
department due to which conflicts are generated in market.
o Risk of dis-economy in scale is also present in market because suddenly business size
of companies is increased.
CONCLUSION
It is concluded from the above report that planning is an essential element for the
organisation. This helps them to achieve desired success and growth in market. To implement
strategy effectively in the organisation it is essential for company to identify the impact of
external factors on business and its operations. For these PESTLE and Ansoff matrix are the
best tool through which company also determines growth opportunities in business. Internal
and external sources are beneficial for company because they helps to raise funds from the
market such ass bank loans, crowd funding, venture capitalist etc. Further an effective
business plan it also needed by the company to explain their vision, mission and objective
through which it is easy for them to attract more number of investors. At last several exit
plans are present in market that helps company to sale its business whenever they want.
These plans are also discussed briefly in these assignment moreover financial information od
company is also plays an crucial role in the organisation through which company ensure
investor that their money will provides high returns in the upcoming future in order to raise
funds from them in large amounts.

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