Q5. Filmore & Unions growth has been influenced by a whole range of factors.

Using
Storeys Framework and other Strategic tools, evaluate the strategies adopted by
Filmore & Union to date and assess the expansion strategies the company may
adopt for the future
The factors that affect small business growth and the ways in which those factors
interact are quite varied in nature, thus comprehensive empirical studies on the subject are
difficult to conduct and the resulting literature remains rather fragmented. The more pragmatic
units of analysis for most research purposes are usually employment and revenue charge.
This is consistent with policy makers focus relating to small businesses. They look at
employment growth as it addresses jobs concerns and sales growth, which addresses
taxation concerns.
Storey proposed a three-dimensional analysis that includes elements drawn from the
perspective of the business owner, the business itself and the strategies pursued by the
business. He argued that it is the interplay of these 3 categories that influence business
growth the most.
Entrepreneurs Characteristics

Firm Characteristics

Business Strategies

Motivation

Age

Training

Education

Sector

Marketing Strategy

Management Experience

Location

Internationalisation

Number of founders

Size

Technical Resources

Ethnicity

Ownership

Planning

Age

External Advice/Support

Gender

Financial Resources

I will apply some of the factors I believe are most relevant to Alice and her business.
The first dimension relates to the characteristics of the person starting the business, i.e. Alice.
The entrepreneurs motivation is expected to be a significant factor influencing the strategic
choices made by a business. For example not all business owners want to grow their
business. Some do it because they enjoy the life style associated with managing their
business and may perceive growth with increased burdens they would rather not have. Alice
on the other hand wants to grow her business. We notice that she started to expand
immediately after her first year, and currently as well is seeking to fund five more restaurants
implying her strong motivation to grow. Another factor is her Education. She has undertaken
several training courses in both business and sales studies, as well as in the natural remedies
industry. Her propensity towards learning could have enhanced her motivation and ability to
use the acquired skills in managing her enterprise. We are not told of Alices age, but from her
vast experience I think its safe to assume she is somewhere in her mid-late thirties which is a
good sign because generally middle-aged individuals have been reported as being more likely
to possess the best mix of experience, credibility, energy and resources and so more likely of
owning a growing business.
Going now to firm characteristics, these examine the relationship between a firms
growth and the organisation of the business as it transforms from a new enterprise to an
established one. Growth can be conceptualised as occurring in distinctive stages as a firm
overcomes challenges. The emphasis is that as a business grows there will be changes in the
firms organisational structure, managerial style, strategic goals and the owners level of
involvement, because each stage of a firms life cycle has different characteristics.
Younger small firms are said to grow more rapidly than older ones because they need
to grow in order to be better able to guard against unforeseen environmental stresses. The
sector under which a firm operates is also considered an influential factor on the growth
process, but the extent to which it is a significant factor is less clear cut. A start-up may find
more attractive a sector not dominated by few large firms, but one in which many smaller
ones compete. This way its goal to establish itself is more attainable. Filmore & Union
benefited from being the only healthy eating restaurant in the area at first so it managed to
grow rapidly. As its expanding however, Alice may find it more difficult to achieve the same
growth because there may already be several strong competitors with an already established
market share who will make it harder for F&U to establish itself. This also relates to the

Location factor in the framework. As she expands Alice may experience different demand for
her service in different locations, so it is crucial that she accounts of those differences.
Kraus (2006) see the ability of a business to plan its development around a realistic
analysis of its resources as an indicative of the firms ability to survive and grow. His argument
is in line with the third paradigm in Storeys Framework, i.e. the Business Strategy.
Both workforce and management training are linked to a firms propensity to grow.
Firms with an expressed growth intention are more likely to be involved in training. The larger
Alices business gets the more demanding it would be for her to manage it. Her business may
require the services of more specialist individuals as it expands to certain levels, both in terms
of people employed and outlets opened, and revenue increases. Such competencies may
either need to be developed in-house via additional training or bought in via the firms
recruitment practices.
The marketing strategy provides an articulation of the firms best use of its resources
and the tactics to achieve its marketing goal in a given market. F&Us marketing strategy may
revolve on varying degrees of differentiation, with emphasis placed on the positives of healthy
eating. She may also decide to do workshops during weekends to teach people about the
healing effects of food, and as such increase the brand awareness of her restaurants allowing
her to operate in a profitable niche.
The firm may wish to get additional external support to implement its growth strategies.
Agencies outside the organisation can be directed at solving specific problems or more
generally aiding the development of the firm. It could take the form of the provision of
information, training and consulting services. Agents could include attorneys, accountants,
non-profit organisations, as well as various private, state and hybrid agencies. Where such
help occurs, firms are generally more prone to faster growth. (Storey,2004)
Access to and use of financial resources are often critical factors affecting the ability of
small businesses to implement growth strategies. A key issue for most business owners
centres on the decision to seek external finance, which may open up financial resources but it
may also dilute ownership at the same time. Small business owners are noted for their
unwillingness to share ownership this way, with a result that banks become wary of lending to
such firms, often demanding safety-net collateral that many businesses are unable to
produce. The resulting financial limitations can operate as a constraint on the firms growth,
for instance by curtailing the rate at which the firm is able to implement innovative plans or
adopt progressive technology. We observe that Alice has decided go the crowdfunding route,
as a way of raising finance by asking a large number of people each for a small amount of
money.
A firms possession and use of technical resources can be a valuable tool aiding in the
implementation of this firms growth objectives. Alice may choose to invest in additional
equipment such as high-end juicers, or Raw Food Dehydrators in order to provide customers
with more diverse and higher quality food. However, I believe more focus should be placed on
the staff training or the employment of chefs with a focus on healthy food, as they will be more
qualified to recommend Alice what additions would really benefit her.
Some limitations of the framework is that it does not take sufficient cognisance of the
external environment. Due to their small scale and market share, smaller firms have limited
opportunities to influence their environment and in this sense tend to face greater external
uncertainty and greater dependence on their external environment than their larger
counterparts. Global trends and events along with associated policy responses and the
specific socio-economic climate of the regions in which the business operate are all external
factors that can affect the small firm development process. These factors include taxation and
employment regulations, interest rates, unemployment, demographics etc. A business should
take account of how all these influence it and what can it do to overcome their environmental
constraints.
Growth Strategies: (Make, Buy, Ally)
Internal - New/Other product development (extension), Geographical markets (international)
External - Licensing/Franchising, M&A, Strategic Alliances/Joint Ventures,
The distinctive attribute of internally-generated growth is that a business relies on its own
competencies, expertise, business practices, and employees. Internally-generated growth is
often called organic growth because it does not rely on outside intervention.
External growth strategies rely on establishing relationships with third parties, such as
mergers, acquisitions, strategic alliances, joint ventures, licensing and franchising. An
emphasis on external growth strategies results in a more fast-paced, collaborative approach
towards growth than the slower-paced internal strategies.