The Ledbury Restaurant: Evaluating Growth Opportunities and Strategies

This report provides a comprehensive analysis of growth strategies for The Ledbury restaurant, a British cuisine establishment in London. It begins with an introduction that highlights the importance of effective planning for business success. Task 1 delves into key considerations for evaluating growth opportunities, including a PESTEL analysis to assess political, economic, social, technological, environmental, and legal factors impacting the business. It then utilizes the BCG matrix to analyze the restaurant's brand portfolio. Task 2 explores potential sources of funding for the company. The report further examines the application of Ansoff's matrix to determine marketing strategies for growth, including market penetration, product development, market development, and diversification. Finally, the report evaluates exit or succession options for the business, considering their benefits and drawbacks, before concluding with a summary of findings and recommendations.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Key considerations for evaluating growth opportunities......................................................1
P2. Evaluation of the opportunities for growth applying Ansoff's matrix..................................5
TASK 2............................................................................................................................................6
P3 Potential source for company.................................................................................................6
TASK 3............................................................................................................................................7
TASK 4............................................................................................................................................7
P5 Critical evaluation of the various exist or succession options for business...........................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
It is essential and crucial for the success and growth of the firm that the management
should develop effective plan so that the company can operate in effective and efficient manner.
Fro the success and improvement of the firm, the administration should frame and formulate
different plan related to strategies, tools and techniques (DODDS, DIMANCHE and
SADOWSKI, 2018). This assignment is based on The Ledbury which is a restaurant that is
situated in London, England. The company was incorporated in 2005 and operating its business
in UK by offering British Cuisine food. The report will discuss about key considerations to
evaluate growth option and potential sources of funding that are crucial for the growth of
business. Further, will explain about a business development plan and exit or succession option
of the business by considering benefits and drawbacks of them.
TASK 1
P1. Key considerations for evaluating growth opportunities
PESTEL Analysis:
The PESTLE analysis is model or tools which is used to monitor and identify the micro-
environmental factor that may profound impact on an organisation's performances. This
technique is especially useful when starting of new venture in foreign market. It contains the
environment, economical and other factor which are determined the towards the global factors.
Political: These factor are determined the all interventions which is regulated by government and
influence to the economy and company. Basically it influence from the government activities
which have the major impact on a business such as political stability, policies, corruption, tax
policy etc.
The Ledbury company, having a registration the norms and have to abide the political
factors which are regulated in United Kingdom where it provides the increasing of their growth
as well as financial benefits, but there is demerit about the political factor that not every political
policies can be favour to the company it can be provide the unfavourable outcomes by which
company have to face challenges in terms of stability and taxation policies (Gallent and Tewdwr-
Jones, 2018).
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Economic: These factor determined the certainty of economy performance. Factor which is
enhanced by economic factor that are economic growth, exchange rates, inflation rates, interest
rates disposable fr customers.
As per for Ledbury company it is food chain restaurant where many competitors are there
will be in market, their product quality will increasing their growth in terms of deliverables of
food items as per economic prices which can be retain the consumers as well as wide range of
economy could give a positive impact, but due to inflation, recession or other economic fall
down can generate the negative impact on the company in terms of loss, insolvency etc.
(Gounaridis, Chorianopoulos and Koukoulas, 2018)(Konvitz, 2020).
Social: This factor is consists of the general environment element which represent all the
demographic factor such as age, gender, religion, norms, customs and values of the population
within the organisation operates. This include the trend of population such as population growth
rate, income distribution, age distribution, health terms etc. These factor are essential for
marketer when targeting the certain customers.
For Ledbury restaurant their targeting customer will decide on the basis of the
demographic factor by which product they introducing in United Kingdom economy as well as
the preferences and perspective are totally important on that the Ledbury can sustain and retain
the customer in the market, Meanwhile, it depends upon the consumers if they dissatisfied or
wrong targeted consumer can provide a negative impact on their business.
Technological: These factor comprises the innovation or upcoming innovation in terms of
technology resources which may effect on the industry by that it represent the favourable and
unfavourable condition of the market. Technology resources make easy the workforce and
increase the flexibility as well as it guidance provides the R&D process Research and
Development of particular segment which creates the awareness (Leick and Lang, 2018).
The technology resources require of every organisation where they can utilise and make
their workforce rapid and flexible same as for Ledbury company the upgrading technologies in
the restaurant like coffee machines or others can creates the awareness about the technology as
well as company also.
Environmental: The environmental factor refers the raw materials, pollution target and carbon
footprint targets set by governments as well as the climatic factor also includes in this such as
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rain, drought, humidity which can directly effect on the tourism, farming, insurance and
agriculture.
For Ledbury restaurant company the role of environmental factor is very important in
terms of tourists, quality of raw materials by which consumers get attract on it. The positive
impact can create the growth and reliability of the company if they involves in the corporate
culture responsibility(CSR) activities (Park and LaFrombois, 2019).The other factor can provide
the negative side such as the scarcity of raw material, diseases, climatic changing can bring
drastic change in company.
Legal: These factor is directly propositional with the political factor, which includes the specific
compliance oriented such employment law, consumer protection law, copyright and patent law
and health and safety law, where it comprises the order the legal trade of business successfully
and ethically.
Regulatory system can trade the Ledbury company as per the applicability of laws in
terms of employment, safety and health or other basic laws which helps to regulate the
organization to run, the other side of the legal factors if any organization is not follow the
protocol of laws the auditory can detect and it will be related to criminal act which destruct the
image of the company.
BCG Matrix:
The BCG matrix is tool for corporates which plans to identify the market share and
market growth as well as it use to portray firm's brand portfolio where it categorised the business
into four elements Dogs, Cash Cows, Question mark, Stars.
Growth share matrix: it used as a business tools which represent the relative market share and
industry growth factor to analyse and evaluate the potential power of brand portfolio which
increases the investment process.
As for Ledbury company the growth share is depends upon the market performance as
per the restaurant basis as it compare with their competitors which emphasis the investors to
invest in the company according to the high potential market share.
Relative Market Share: This market share is used to evaluate the business portfolio which
represent the market share (Rudolf, Kienast and Hersperger, 2018). Big corporates market shares
their outcomes deliver in the high cash returns there is a reason if a firm produce more the
benefits na d the economic scales will be high in terms of experiences and other benefits.
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Similarly for the Ledbury company if their market share is high in terms of high profits,
huge infrastructure which leads towards the high returns in terms of profits, shares and
investors , but it will increases the competitors to sustain in the market.
There are the four elements in which the brands are classified:
Dogs: It also termed as 'Poor dogs', they basically hold the low market share as compared
with the competitors which operates in a slowing growing market (Sarin, 2019). In other words,
they are not worth investing in the market as the other competitors are, and they having faces the
losses. But sometimes dogs in the market shows the profits for some period of time.
The Ledbury company faces the losses and if they have kless infrastructure in terms of
investments, profits etc. So, they will come under poor dogs while, it enhanced the slow grow
rate to just sustain in the market.
Cash Cows: They are basically introduced as a profitable brand in terms of high profit
earning and having the high market share in the market, but the corporates does not invest in the
cash cows they just support to them form maintaining for the present market share.
The Ledbury company can be cash cows if they have high investments, profits, better
infrastructure in which they gain the high market growth but sometime investors do not shows
any interest for cash cows for investments as they supports them to their brand diversification.
Stars: They are especially refers for the high growth rate and sustain the high market
share . They are the both cash generators and cash users. They are primary users by which
companies used to invest its money because stars are known as for the good returns.
The Ledbury company can become the stars if they are generates the high market share as
well as the high cash returns but they can not became the cash flows because there is always
uncertainty in the market an also by the changing of industries where the new innovative
products can substitute and advance technology system.
Question marks: These are refers to those brands which requires more consideration,
where they are holds the low market share in fastest growing market in which allocate of large
amount of cash but facing the losses (Sell and et. al., 2018). It needs to being a potential market
share and become the stars, which would later became cash cows. Question mark they do not
always face successful even aster the high amount of investment they struggles in the markets for
gaining the market shares and after they became the dogs.
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If the investments and other financial facilities is generated for the Ledbury company and
after that they are facing losses and struggling for gaining the market share they became question
mark for that they need to do market research and targeted those customers who are suppose to
be can generate some returns otherwise they became the poor dogs.
P2. Evaluation of the opportunities for growth applying Ansoff's matrix
Ansoff matrix can be implemented by the management of the company to determine the
marketing strategies that can be used by the firm to make development and growth (Wey, 2019).
In context of The Ledbury, the description of different marketing strategies of Ansoff matrix are
defined as under:
Market penetration- It is the first marketing strategy that is used by company in term of
make maximisation in the sales by offering existing products and services in existing market by
making change in their pricing strategies and promotional tools. In The Ledbury, the
management can use this growth strategy because there is less risk and it can make change in its
marketing tool and making change in prices of its products which help in increasing sales and
customer base of it.
Product development- This marketing strategy can be adopt by the respective company
because with the help of this, it can make growth in its profit and productivity. It is risky more
than market penetration because in it the company launch new product in existing market so it is
not sure that new product is liked by existing customers or not.
Market development- By adopting this strategy, the administration of The Ledbury can
make growth in its business by expanding its business in another geographical region and
market. It is risky more than product development because organisation expand its existing
product in to new market so it is not confirm that the product will be able to satisfy the need of
new market customers.
Diversification- It is the last and more risky marketing strategy of this concept because in
it market as well as product both are new. So the management of the Ledbury will not sure that
its food items are liked by new market or not (Kuklinski, 2017). For making development and
growth in business in term of increasing profit and productivity, the firm can also expand its
business within another business sector like it can operate its business within fashion and travel
& tourism sector.
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Form the above information it can be determined that product development strategy is a
better option for the organisation to make growth and development in the business. With the help
of it, the firm can make innovation or manufacture new food items to increase its productivity
and market share.
TASK 2
P3 Potential source for company
To operate business activities into different sector require to different sources of fund.
Along with it helps to spread out business activities at large level. For this require to more fund
to purchase assets, recruit individuals and many more in context of rapid growth. In business for
every operations require finance like research & development, maintenance, operating
expenditure and many others. There are discussed essential sources which is required for a
business entity to survive at broad manner such as:
Bank Loans: This term is mainly utilised by the business to arrange source for growth
and success. In present time every enterprise aware about the this source which is safe &
borrowing the money. The owner take amount for certain period of time with specific interest
rate. In regard bank keep some security such as collateral which is a type of personal sponsor.
For this sign a contract in which mentioned amount, rate, time period and any other terms &
conditions on which both parties are agreed. This kind of loan mainly taken by the land &
building, set good infrastructure and invent into other venture in order to fulfil the requirement of
business. Advantage: It is beneficial source because in this clearing all the terms and get in low
interest rate according to type of loan. There is not required to any mediator and direct
contact with bank with set rules & regulations.
 Disadvantage: The main disadvantage of bank loan that it takes more time to pass loan
and require to keep security which is not possible by every company. Along with or this
follow long procedure and many paper work that can be understood by an individual.
Crowdfunding: It is a part of funding source in which project amount raising by
maximum number of people. Along with collect amount through social media where investors
are meeting with different entrepreneurs. According to their project they invest their amount in
the project. It is mainly possible through internet. The crowdfunding is good platform where all
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entrepreneur and investors come together meet with each other and discus about to project to
influence them to invest into their project. This method are restrictions in context of hedge fund
investing to secure a business entity from non rich investors who invest their amount at risk. It is
a great opportunity for the business to meet lot of investors. Advantage: The benefits of this source that there is not required to particular qualification
in order to start a funding campaign. Valuable form of marketing use to impress clients
by different marketing strategies.
 Disadvantage: When a business entity have not permission in regard of this project so it
will be created problem for investor. Anyone can crepe a concept due to it is done
through internet. So it is not good for the business and impact on the financing.
TASK 3
P4.
Business plan
Company overview-The Ledbury is multi cuisine restaurant which is located in Ledbury Road,
Notting Hills, London, England, where it hold two Michelin stars, and has been featured in S.
Pellegrino World's Best 50 Restaurant. They basically provides the better quality of food items
as per their customer expectation.
Organisation Product and Service:
Ledbury is multi cuisine restaurant offer different types of exotic food products like
beverage, snacks and more.
Mission and Vision of Firm:
Company mission is to serve high quality food services to their customers while vision of
entity is to reach out to more customers.
Operational Strategy:
Ledbury undertaken customer driven operational strategies as to serve customers with
customized food products.
Unique Selling Proposition:
Entity is taking advantage of equity recapitalisation in this particular portion of company
can be offered to other for certain time period.
Strategic Objectives:
 Offer high quality products and services to customers.
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 Increase overall profitability of organisation by 12% in 3 months.
Market Analysis
Ledbury marketing analysis is done with the help of SWOT analysis
Strengths Weaknesses
 Company is having highly skilled and
potential employees.
 Food products of restaurant is of unique
taste
 Company is having weak distribution
channel
Opportunities Threats
 By taking advantage of Social media
platform entity can gain opportunity to
surge up their sales.
 Presence of high competitors pose
threat to company.
Financial Plan
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500 4200
Total inflows 10000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 300 300 200 300 150 500 300
Total outflows 2300 2800 1700 2300 1350 2000 1100
Net cash flow 7700 200 1300 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
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closing balance 7700 7900 9200 11400 11550 13000 16100
August September October November December Jan
1000 2000 800 1200 1500 3600
1000 2000 800 1200 1500 3600
200 300 100 600 300 2000
400 500 100 100 400 300
600 800 200 700 700 2300
400 1200 600 500 800 1300
16100 16500 17700 18300 18800 19600
16500 17700 18300 18800 19600 20900
Feb Mar Apr May June July
3000 3000 4500 1500 3500 4200
3000 3000 4500 1500 3500 4200
2500 1500 2000 1200 1500 800
300 200 300 150 500 300
2800 1700 2300 1350 2000 1100
200 1300 2200 150 1500 3100
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