Assessment

Assessment
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1 Key consideration for evaluation of growth opportunities for society cafe...........................3
P2 Evaluation of growth opportunities using Ansoff matrix.......................................................5
LO 2.................................................................................................................................................7
P 3. Assessing the potential set of sources through which funds are available for the business
and also discuss the benefit and drawback of each source..........................................................7
LO3..................................................................................................................................................9
P4 Business plan..........................................................................................................................9
P5 Exiting strategies..................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business in order to grow and expand its business operation have to planned several steps
that needs to be taken so that end goals can be achieved in the best possible manner. Company in
order to diversify its operation needs huge amount of capital or finance so it have to evaluate
several sources and select best possible among them for smooth operation of business. This
report is about society cafe is an independent coffee shop in heart of Oxford city centre that
make great coffee to fulfil needs of customers. The report has contained information related to
key consideration for evaluation growth opportunities of firm. It has also discussed about
potential sources of fund available to company, business plan and existing or succession
strategies that are able for society cafe.
MAIN BODY
LO1
P1 Key consideration for evaluation of growth opportunities for society cafe
Pestle analysis is an effective framework that can be used by management of company to
understand key opportunities that are available in external environment that can helps in growth
and survival of enterprise. There are several factors that acts as an opportunities for society cafe
operation in United Kingdom such as:
Political condition: Government of UK have made several policies to encourage small business
to expand their operation so that GDP of country can enhanced and more individuals can get
employment. Such as government have implemented free trade regulation that have provide
opportunity to society cafe to grow its operation in both domestic and international market.
Economic condition: Covid-19 has resulted in economic recession in UK which in turn leads to
overall decrease in disposable income of individuals so they are preferring products or services
that are available at low price. So, Society cafe has opportunity to attract maximum customers by
providing coffee at minimum rates (Takeaki, 2019).
Social factor: Most of the people like to drink coffee so company have opportunities to increase
its sales and profitability by maintaining taste of coffees. Society cafe by amending taste,
ingredients as per existing taste and preferences can easily motivate customers to be part of firm.
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Technology: with changing trends, technologies are also changing and people are making use of
innovative technology such as smart phones to book products online. Therefore, society cafe by
making investment in digital technology can easily market or promote its business to large
number of customers in limited time frame thus able to gain competitive advantages.
Environment factor: There are several enterprise that make ineffective utilisation of resources
or more amount of wastage that have resulted in threat of natural resources and environment. So,
people as well as government have become more concerned about protection of resources
therefore Society cafe by taking steps towards sustainable management can easily get
competitive advantages (Gamidullaeva, Vasin and Mkrttchian, 2019).
Legal factor: There are several legal laws that are made by government so that enterprise can
easily operate their business operation like employment, health and safety, working hour and
discriminative. Society enterprise by following ethical principles and legal values can promote
growth and expansion of business.
Resources based view and core and capabilities view
VRIO or resources based view is use to understand core capabilities or strength of
company that helps it in expanding its business operation. Like
Basis Valuable Rare Imitable Organised
Technology Yes Yes No Yes
Human resource Yes No Yes No
Organisation
culture
Yes No Yes Yes
Products and
services
Yes Yes No Yes
Valuable: It can be understood from above table that all resources of firm such as technology,
human, organisational culture and products and services are valuable that helps in influencing
maximum customers.
Rare: Only technology and products that is varieties of coffee delivered by firm are rare that
helps in gaining and retaining competitive advantages.
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