Planning for Growth in Aroma Cafe: Key Considerations, Ansoff Matrix, Funding Sources and Business Strategies

Planning for growth

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1. Key considerations for evaluating growth opportunities...................................................................3
P2. Evaluate the opportunities for growth with and an application of ansoff matrix...............................6
TASK 2.......................................................................................................................................................7
P3. Potential sources of funding with its benefits and drawbacks............................................................7
TASK 3.......................................................................................................................................................9
P4. A business plan that includes financial objectives and strategic objectives.......................................9
TASK 4.....................................................................................................................................................10
P5. Assess exit or succession options....................................................................................................10
CONCLUSION........................................................................................................................................12
REFERENCES........................................................................................................................................14
Books and Journals:...............................................................................................................................14

INTRODUCTION
Planning is a key to any organisation through its existence. Any organisation which is
successful regularly analyses its business plan which ensures the continuity to meet the demands
of customers. It is significant to review the current performance and looking forward the likely
strategies in order to grow business. Growth plan is also important in allocating resources which
help to attract new funds in order to maximize the chances of success in other market as well.
Planning for growth supports in realistic vision for the future of the organisation as well as
increase the potential for growth (Bailoa, S. and Cravo, P., 2020). It is involving with stepping
back from regular options and looking for where an organisation is headed and what should be
priorities. The report is going to prepare on the Aroma Café which is identified as formal British
coffee chain. It was introduced by Michael Zur Szpiro in 1991. They are specified with tea,
coffee, and pastries. It was introduced in London, UK. It belongs coffeehouse industry. This
report is discussing various topics such as key considerations for evaluating growth
opportunities, apply with Ansoff’s matrix, sources of funding and many more. When a business
wants to take decision on expanding it is consisting with risk that come with growth
opportunities so it is very important to identify what it exactly needs to grow and how it will get
that expansion or growth opportunities.
TASK 1
P1. Key considerations for evaluating growth opportunities.
It is very significant to evaluate what a business owner want to consolidate in their
position of business and find methods to grow. If they want to succeed they must prioritize with
growth which is considered with growth plan (Claassens, J., Koomen, E. and Rouwendal, J.,
2020). It has its own risk but the effective and right strategy can deliver security, stability as well
as long-term revenues and profits for the organisation. In addition to Aroma Café, it is very
significant to manager to focus on growth plan which is needed for the growth perspective. There
are two situation through which an entrepreneur can consider and analyze the growth
opportunities in order to expand their business in global market with the porter's generic method
and pestle analysis.
Porter’s generic method:
Porter’s generic strategy helps to gain competitive advantage in the market. It includes four
strategies in order to gain a certain level of growth which helps to improve the profits for the
organisation.
The first strategy is Cost leadership which allows organisation to keep the prices of its
operations low and achieve more market share. It can involve those leadership styles in terms of
cost in which it can lead the market or an industry. Being low cost producer is not good enough it
is also considering with great risk factors where there is a chance that competitive can reproduce
the cost reduction strategies of a company. In addition to Aroma Café, it is significant to find
methods in order to reduce the cost.

The second one is differentiation strategy which is all about providing unique and
innovative products and services in the target market. Aroma cafe like to make their products and
services unique and different from other brands which involves durability, features, support,
functionality as well as brand image.
The focus strategy has been classified into two parts which are cost focus and
differentiation focus. Cost focus strategy is similar as a cost leadership strategy but it mainly
focuses on niche market. Along with this differentiation focus strategy is similar to
differentiation strategy but it focused on distinct niche market. In context to Aroma café, the
focus strategy will serve better in the market and they like to build their positive brand image and
brand loyalty in the market.
PESTLE Analysis:
Pestle analysis is a framework which is used by experts in the organisation to analyze the
external factors of company. The result of pestle analysis is also help an organisation to identify
its strengths and weaknesses. In addition to Aroma Café, the framework of aroma café are
discussed below:-
 Political factors: Political factors are concerned with government through which an
organisation wants to spread its business activities in a specific country. They are
required to collect information about government policies such as labour rate policies,
regulations of that particular country.