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Kelly’s Business: Planning for Growth Case Study

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Updated: Jun 15th, 2020


Kelly has been a sole proprietor for a period of five years. She operates a lunch business that serves urban customers. Many people love her business (Kelly’s sandwich stop). Her products, which are the sandwiches and other lunch items, are on high demand. She is using her mobile trailer as her business premise, but due to high demand she has introduced bicycle-towed concession. Kelly’s sandwich stop has currently employed four staff who work on a part-time basis. The business remains closed on weekends because most of the customers are shoppers and employees. The entity carries out promotion on Facebook, by word of mouth, and using bicycle concession that moves around (Bridge, O’Neill, & Cromie, 2009).

Kelly feels it is time to move the business to another level. She has an idea of transforming her small business to a more lucrative enterprise. The lucrative enterprise will dominate the market by serving delicious meals and offering quality services. Kelly has located a restaurant space, which she plans to lease. The restaurant space is strategically placed in terms of customers and suppliers of local food. The plan to relocate is underway since she has hired a business consultant to help in the expansion.

Growth Strategy

Kelly is planning to expand her sandwich business in order to increase sales and profit. Expansion plan will depend on government regulation, funds available, and the level of competition. There are various forms of growth strategy. These are acquisition, diversification, market expansion, product expansion, and market penetration (Brinckmann, Grichnik, & Kapsa, 2010). Before engaging in the expansion process, she should consider the following steps while prioritizing and organizing her business growth strategy.

  1. Define her passion – Kelly needs to know her passion. Passion is the driving force that propels people towards achieving their goals. This step is important because it will help her come up with a good vision for the business.
  2. Determine growth stage – this stage is concerned with understanding current state of the business, and determining requirements to be achieved so as to move to the next level.
  3. Assessment of current resources – Kelly requires a little knowledge in economics of her business. This will help her know the resources she has at her disposal to start the expansion process.
  4. Establish a business strategy – good business strategy will make it possible for Kelly to achieve her business vision, which is having a lucrative enterprise. Properly designed strategy will make good use of the available resources.
  5. Create an action plan – at this stage, Kelly has the responsibility of defining the tasks that will help her achieve her objective.
  6. Execute, monitor and adjust – this involves execution of the business plan. The business can now start its growth process and monitoring should be done. (Casson, 2013).

Business Form

The best business form is a sole proprietorship. Kelly is sensitive when it comes to maintaining good relationship with her staff, community and customers. She can only achieve this by operating the business herself. The form of business she is currently operating is a sole proprietorship, which means that expansion plan will not require additional papers. Sole proprietorship will be beneficial to her through the following ways:

  • There are few regulations associated with this form of business.
  • Decision-making process is easy since she will be the sole owner.
  • All profits will go to her since she will not be sharing with anyone.
  • She will get tax advantage, especially if the business is not performing well.

There is a number financial assistance available to Kelly such as funds from angle investors, private investors, business grant from the federal government, contribution from friends and family, and loan from banks. Currently, she has a business that is operating, which means getting a loan from the bank will be easy. The bank’s interest rate is also fair (Bridge et al, 2009).

Organizational Structure and Staffing Needs

Expansion plan means that Kelly has to employ additional staff who will be working full time. The best organizational structure for the new business is team structure. In this structure, the employees team up and carry out their responsibilities with the intention of fulfilling objectives of the business. Team also structure maintains good relationship between the employees due to constant interaction (Brinckmann et al, 2010).

Since Kelly will be the sole owner of the business, decisions relating to organization and delegation of duties will come from her. She will also be responsible for orientation of her staff. Kelly can train her new staff since she was previously operating similar business, but she can hire a professional to assist because the business is now bigger compared to the previous one.

Customers and Promotion

Kelly has a plan for expanding her business. Expansion plan will force her to relocate to a different place. Since she is planning to relocate, she has to notify her current customers. Notification will involve giving them direction of where she plans to open a new restaurant (Casson, 2013). Since the customers have been loyal to her during the five-year period, she can offer them meals at a reduced price for a few days.

This will make the current customers follow her to a new location, irrespective of distance. Customer loyalty is important, so Kelly should apply any means available to retain her customers. Promotion helps in informing people. Social sites have become a good platform for advertisement. Kelly should consider putting some ads on social sites. She can also advertise the new restaurant through mass media and in magazines (Bridge et al, 2009).

Ethical Issues and Social Responsibility

Ethical issues are what one considers to be right or wrong. Social responsibility means creating a business that relates positively to the environment and society within its surrounding. Ethical issues associated with the expansion are working condition, treatment of employees, hygiene, and compensation for employees. Employees should be fairly treated, remunerated, and provided with good working condition. The staff should be cautious with hygiene. The meals should be fairly charged. Social responsibility will relate to how waste is being disposed. Disposal of waste should not pollute or interfere with the cleanliness of the area (Casson, 2013).


Every owner of a small business has a vision of expanding his or her business at one time. Expanding a business means the business will make more profit due to additional sales. An increase in the level sales and profit is an indicator of prosperity to a business. It is essential to plan the growth process before executing an idea. Planning will help determine the resources required, manpower, and strategies to adopt. A good business plan will ensure a business succeed in its operation. Properly designed plan in place will make Kelly’s restaurant do well.


Bridge, S., O’Neill, K., & Cromie, S. (2009). Understanding enterprise: Entrepreneurship and small business. New York, NY: Palgrave Macmillan.

Brinckmann, J., Grichnik, D., & Kapsa, D. (2010). Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning–performance relationship in small firms. Journal of Business Venturing, 25(1), 24-40.

Casson, M. (Ed.). (2013). The Growth of International Business (RLE International Business). London, UK: Routledge.

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