Cafe Concerto Limited - Strategic Growth Plan

This assignment tasks students with developing a comprehensive strategic growth plan for Cafe Concerto Limited, a fictional cafe chain. Students must analyze the company's current market position, identify opportunities and threats using SWOT analysis, and propose specific growth strategies utilizing the Ansoff Matrix. The plan should include detailed implementation strategies, funding options, and consideration of potential challenges.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key consideration for evaluating growth opportunities with suitable consideration in a firm
.....................................................................................................................................................1
P2 Determine the opportunities for growth applying Ansoff vector growth matrix...................2
M1 Options for growth using a range of analytical framework..................................................4
D1 Critically evaluate specific pathways for growth by taking various risk in consideration....5
TASK 2............................................................................................................................................5
P3 Potential sources of funding with benefits and drawbacks of each.......................................5
M2 Adaptation of suitable source of funding.............................................................................6
D2 Critically evaluate potential sources of funding....................................................................7
TASK 3............................................................................................................................................7
P4 Design of business plan for growth with financial information and strategic objectives......7
M3 Formulation of suitable business plan for growth and securing investment........................9
D3 Knowledge about business plan related with accomplishment of business objectives.........9
TASK 4..........................................................................................................................................10
P5 Assess exit and succession option for small business with benefits and drawbacks of each
...................................................................................................................................................10
D4 Critically evaluation of such options with suitable recommendation.................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Plan consider as best thing which directly influence positive reflection on business so that
better and suitable objectives get accomplish (Barbour and Deakin, 2012). Effective planning
always support in accomplish growth through achieving all objectives and targets properly.
Hence, in such consideration planning for growth is must which define all aims and objectives of
business properly. This project is based on Cafe Concerto whom want to grow and maximise
their business at vast level by using digital technology and evaluate all new innovation. For this
context, business managers need to determine all business growth opportunities for business so
that it enables them to adopt and manage anew technology properly and effectively. For this
purpose, managers and can use relevant model in order to maintain suitable development. There
are various sources get evaluated from which management become able to access funding in
order to maintain efficiency in working and implement growth properly. For scaling up a
business, managers need to create a development plan through which chances of appropriate
management get enhance. All these factors get manage properly by creating a plan which
appropriate for growth and betterment.
TASK 1
P1 Key consideration for evaluating growth opportunities with suitable consideration in a firm
Growth opportunities are a major course of business which need to evaluate it in an
appropriate frame (Beatley, 2014). Digital technology is consider as best suited method for every
business so that business become able to manage growth and development. It is important to
manage effective innovation in an association so that organisation lead to accomplish targets
properly with define objectives as well. There are various consideration identify which
associated with growth opportunities and need to evaluate by business properly so that efficiency
in working could be manage and maintain. All these factors need to consider by Cafe Concerto
manager in order to enhance productivity and implement growth plan properly:
 Competitive advantage: One of a major thing which directly linked up with growth is
competitive advantage. Business need to adopt such tools and techniques which made
them superior from others so that vast range of users easily get attracted. The basis of
competitive advantage for foundation of growth and opportunities are:
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◦ Resources: One of a major resource for a business in order to maintain growth is
utilising resources properly (Eddleston and et. al. , 2013). Cafe Concerto need to
utilise digital technology properly which enables them to reach wide range of
customers. This resources as well as finance need to be utilise in an appropriate frame
so that competitive advantage gain.
◦ Core competency: Another factor is core competency in order to maintain growth and
development. For this context, business need to adopt such technique which
completely differ from others and not utilise by their rivalry. Cafe Concerto need to
implement digital technology properly in which they have to create application of
own so that business become differ from others.
 New product development: Another consent which determine as a basis of growth is
creating new product and services in nature so that user satisfaction get enhance in an
appropriate and effective frame (Chen and et. al., 2014). Business need to crate and
develop some new product with time frame which compile with customer needs and
wants in order to maintain effectiveness. By using digital technology in which social
media as a platform for analysing needs and wants of users. For this portfolio
management strategies lead to get adopted for comparing rivalry with concern business
working. Along with this, innovation get manage through product life cycle in which
business have to determine the life spam of their each and every product properly and
maintain its effectiveness with a course of time.
All these are major consideration for growth which need to implement by Cafe Concerto
properly. Although, they have to determine importance of digital technology for business in
order to maintain innovation properly for accomplishing targets and enhance sales as well as
revenue properly.
P2 Determine the opportunities for growth applying Ansoff vector growth matrix
Growth is a major and ultimate need of every business through which an association
become able to maintain and manage working at big or vast level. For maintain this section,
business have to determine all opportunities growth properly by using relevant and suitable
framework. In such context, Ansoff Vector Matrix is helpful in order to estimate growth properly
through various ways and paths:
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 Market penetration: This is a first and major section of growth matrix in which business
need to enter into new market world where new customers get target or they have an
option to modify or launch a new product in existing market (Galland, 2012). By
launching new product in existing market signifies chances of success because, business
already have a command in environment. Cafe Concerto can use their digital technology
framework on existing London market customers which made order easy and convenient
in nature. Along with this, they can also enter into new market with digital technology.
 Market development: This section reflect about development and growth by targeting
new and important market. Managers have to conduct appropriate study on such market
world where they become able to operate operations properly. Although, in such area
product need to be more innovative than previous one as well as introduction of
additional services must which not provided by any competitor. Cafe Concerto need to
evaluate such area which supportive in nature like apart from London such market needs
to get evaluated which provide benefits in long term context with optimum utilisation of
resources.
Illustration 1: Ansoff Matrix – The growth share Matrix of
Ansoff, 2017
(Sources: Ansoff Matrix – The growth share Matrix of Ansoff, 2017) Product development: With market development and penetration, business have another
option of product development which is less expensive in nature but benefits concern
with long term (Levy, 2016). This is cheap in nature where organisation have an option to
modify their existing product by additional services. This only get success by targeting
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previous market world or concern for more new customers in existing operative area.
Cafe Concerto have an option to manage and utilise their fund properly by spending half
part on product development rather than other activities. Along with this product
development become possible through analysing needs and wants of various users
properly.
 Diversification: This step signifies about some new areas where business can grow and
develop their number of operations. Diversification in business and operations arise such
point of course when number of operations are more in nature and business have suitable
specialised individual to deal with various consents. There is no requirement to grow and
develop business into another section by Cafe Concerto and maintain operations at
limited consent.
Along with all these things, business could maintain growth and development at vast level by
collaboration method. In such abbreviation, partnership, merger, acquisition etc. are several
beneficial things which can opt by business managers properly and promote market development
with product development. Along with this risk get share between two or more partners properly
thus chances of failure get reduces. Moreover, suitable utilisation of digital technology will
reflect to grow in positive direction by fulfil all needs and wants in sufficient manner.
M1 Options for growth using a range of analytical framework
There are various options of growth could estimated like introducing digital technology,
product development, market development etc. To maintain efficiency business need to use
suitable analytical framework which support in manage growth and development (MacLeod,
2013). For this purpose, initial thing which can apply by an organisation is PESTEL. This will
support Cafe Concerto to evaluate all external factors and elements properly to manage growth
and development. By analysing all relevant and appropriate elements, business become able to
maintain and manage risk. Risk mitigation get only done through proper and suitable framework
utilisation for betterment. Along with this, another section is to maintain brand at keen
competitive world through make them differentiate from others. For this purpose, portfolio
management strategies could be utilise in order to maintain effectiveness and efficiency. With all
these things, major routes for growth need to be evaluated properly for managing things and
minimise risk for growth.
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D1 Critically evaluate specific pathways for growth by taking various risk in consideration
According to Moseley (2013), risk is consider as major barrier behind every growth and
development of business and its concern operations. Thus, it is a duty of manager to determine
suitable pathways in account by evaluating all risk essentials as well. With every option of
growth, there might be several risk factors get associated. Overall role and work of managers and
leaders is to minimise such risk effectively by taking them in consideration and promote suitable
growth and development of business and its concern operations. Cafe Concerto managers
evaluate growth factors for them with associated risk which need to mitigate properly: Partnership or merger: One of an element which promote and support growth is to
maximise operations by partnership or merger with some other business and enhance
finance. Benefit of this section that risk get divided among various partners of a company
as well as effective options could be gain as well. But a major risk factor of collaboration
is that chances of conflicts.
 Market development: Another growth pathway is market development in which business
become able to growth operative area with enhancement of market as well (Todes, 2012).
Managers need to evaluate all major options properly of market development so that
chances of growth become possible. But major risk is of competitive rivalry in other area.
TASK 2
P3 Potential sources of funding with benefits and drawbacks of each
Every business wants to grow and develop in an appropriate frame (Schetke, Haase and
Kötter, 2012). Thus, for growth and development, suitable finance is required which support in
expand business operations at vast level. It is a major responsibility of managers to evaluate all
potential sources of finance properly and use it whenever it requires. Business managers have to
evaluate all advantages and drawbacks of each option as well so that better and effective working
get encourage and utilise appropriate finance option as well. Thus, various sources of funding for
Cafe Concerto specified as follow for developing business in new market area as well as
implement digital technology properly:
Source of funding Advantage Drawback
Bank loan: One of an essential
source of finance is bank loan. It is
Bank loan is one of a easy
and appropriate source of
With some advantage and
benefits, several drawbacks
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a most common form of fund
raising for business whether they
are small or large in nature. It
support in providing long term and
short term finance with sufficient
time frame. It also constitutes fixed
rate of interest and time period in
which loan need to get repay.
finance. Many business
able to raise money through
loan with a promise of
repayment. It has one major
advantage in which an
individual easily get raise.
also associated with bank
loan. These limitations need
to understand by managers of
a company properly. Interest
rate charged for bank loan
are high in tenure which
stated its one of a major
disadvantage which need to
understand.
Crowdfunding: It is one of a source
through which business become
able to raise fund from diverse
number of people with a specified
course of time by contributing small
amount of money typically via
internet. Crowdfunding is consider
as best source of fund raising tool in
order to gain sufficient money to
start operations.
Advantages of
crowdfunding is that easy
to raise money from
various people with an
appeal. This method
support in raise fund from
various people so that
association become able to
manage operations at vast
level.
This method is now in trend
which need to understand by
business managers properly.
There are some basic
drawbacks also get
associated with this
technique which is increase
of fraud activities. Many
people cheat on more people
as they raise money and do
not start any business as well.
M2 Adaptation of suitable source of funding
There are various sources of finance get evaluated which need to understand by business
managers properly so that sufficient amount of money could be raise (Valler, Phelps and Wood,
2012). It is essential to determine all advantages and drawbacks of each option properly and
adopt best method. Business could raise money from various sources as well as enables in order
to invest money in large projects as well. Investment related decision making also consider as
source of finance by analysing net present value and payback period of investment. Along with
these, there are various methods of finance also get evaluated which need to understand by
manager of Cafe Concerto properly like bank loan, crowdfunding, angle venture etc.
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Out of all these techniques, the best source of finance is crowdfunding as well as
investment in long term decision. Moreover, managers need to estimate and invest in such
projects which provide them best return in minimum time period so that chances of better and
effective gain get encourage for long term context in order to gain suited outcome. Along net
present value of project also get determine effectively. This stands when a business lead to invest
into new project and needs to analyse present value properly.
D2 Critically evaluate potential sources of funding
According to Van Assche, Lo and Beunen (2013), business is a composition of various
activities and need time to time growth which become possible with availability of resources
especially finance. There are various kinds of sources of finance get evaluated in business
environment which enables an association to manage working at the time of requirement. In such
consent, managers of an organisation have to evaluate all potential source of finance properly
and adopt best suited. Cafe Concerto evaluate several potential source of finance for a company
which stated as follow: Bank Loan: As per the view point of Ward (2016), loan is one of a best suited source of
fund for which any business become able to compete into market for promoting
sustainability. Bank loan is consider as source of fund raising through which association
need to repay it one time otherwise bank have a right to sue against them. The interest
rates are usually high and amount need to get repay on define time frame or before that as
well.
 Crowdfunding: Another source of finance is crowdfunding through which business
become able to raise money from general public by promoting business and its
operations. This approach is created with expansion of technology as well as organisation
become able to reach diverse number of people effectively.
Out of all these approaches, management can issue their shares in market as well so that chances
of dilution on control get minimise. Although, it is a kind of crowdfunding where public
purchase shares and provide some money against to it. Moreover, beneficial investment
decisions need to be carried down by managers in an appropriate and suitable frame.
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TASK 3
P4 Design of business plan for growth with financial information and strategic objectives
Business plan is consider as essential component of business which need to adopt by
managers in a suitable frame to design all roles and responsibilities properly (Wu, 2015). It
includes all strategic intent like aims and objectives with strength and weakness of a company.
Moreover, it also cover about financial information of a company for better and effective
understanding. Business plan for Cafe Concerto is stated as follow which evaluate strategic
objectives of a company:
Mission: “To be the best Cafe Chain by offering a world class offering at affordable prices”
This statement of a company stated that Cafe Concerto take care about quality of their products
and provide them at reasonable rates so that overall satisfaction of customer get enhance.
Vision: To become the leading coffee service provider in United Kingdom so that customer
satisfaction get enhance by considering several factors: Quality Cleanliness
 Friendly staff
Values: Business need to be based on several
values which have to consider by managers of
a company and deliver it properly to target
customers: To promote high quality products To increase user involvement through
digitalise order and provide best offers To promote environment friendly
consideration to customers
Financial strength: Cafe Concerto is a small
venture whom have good financial position
which consider as major reason behind growth
and development consideration
Strength: Managers have to evaluate all
strength of a business properly in which
satisfied customer rate high:
 Good and effective customer base
 Sufficient fund to deal out with various
in appropriate consents
 Engage in environment friendly
activities which support in gain user
attention
Opportunities: With expansion of market,
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various opportunities of business also get
evaluated which need to understand by
managers properly:
 Potential to enhance market share with
more and more customer attraction
 Potential to increase number of
products and deliver it on time by using
digital technology
 Maximise revenue of business by using
all resources properly
Strategic Objectives  Open more than 3 outlets in UK
 Increase market revenue by 10%
 Become a super brand in next 5 years
Good command over on market and its operations are taking place properly in London.
This investment decision is concern for increase number of operations of business in other
market area as well so that suitable growth could be entertain. A major issue which associated
with crowdfunding and bank loan is high rate of interest with more expectations of customers.
For this, IPO and long term project investment consider as best sources. By issuing shares at
market place, association become able to maintain and manage growth and development.
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Illustration 2: Cafe Concerto Limited, 2016
(Sources: Cafe Concerto Limited, 2016)
This income statement of a company stated that they are in good position as well as good
command on market. Although, their profit for the year ended 2016 was 155,421 which is too
high as compared with year 2015. This signify that business have good position at market area
which support in managing then and choose further options for growth as well. This will support
management to grow and diversified their operations in other marking area as well.
M3 Formulation of suitable business plan for growth and securing investment
A perfect plan is one in which all essentials as well as risk of a business get evaluated in
an appropriate manner (Wynn, 2017). Business plan is generally such factors which signifies
about mission, vision, goal and objectives of a company. In business plan, management provide
strength to their working by define each and every consent to employees properly so that they
become able to work properly. This enables them to maintain sufficient growth and development
and accomplish objectives properly as well. Cafe Concerto business plan need to describe about
future goal of a company which specify about use of digital technology for managing innovation
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with define mission and vision as well. Although, securing investment simplifies by choosing
best option of finance in order to maintain and manage growth and development.
M4 Business plan for achieving growth and securing investment
On the basis of this provided business plan cafe Concerto future plan s easily get
evaluated where they want to open 3 more outlets in UK. Their objectives as well clearly define
that they want to increase revenue and market share by 10% which signify that they required and
need to work properly and in better frame which further assist in managing their operations
properly. With such aspects, detailed business plan of a company also underpin that they have
appropriate and average financial consideration. This signify that business have sufficient fund
for their near future course of operations which critically enable them to deal wt market world.
D3 Knowledge about business plan related with accomplishment of business objectives
It is important for managers to gain sufficient knowledge about business plan of a
company to target employees as well as investors of a company (ZHANG, ZHAO and CHEN,
2013). A business plan includes all essential factors like strategic intent which describe mission
and vision. Although, it also have to define strength and weakness effectively so that better and
effective operations could be manage. Thus, with suitable framing of business plan chances of
sustainability get maintain as well as all aims and targets get accomplish in a suitable frame.
TASK 4
P5 Assess exit and succession option for small business with benefits and drawbacks of each
Exit of a business is refer to as such process in which owner or manager shut down their
operations due to changes in activities and operations. The major ways for exit from a business
by owner and manager of an association is things do not get control by management effectively
and failure lead to arise for an association as well. Business failure could be minimise and get
control only through appropriate and effective business planning as well as maximise operations
efficiency in an appropriate frame. Hence, management need to determine all exit things
effectively as well as pay all debts effectively. Offering of business: One of a noteworthy thing through which effective business
prompt get drawn out or a proprietor could exit from it is offering of business. Proprietor
have a privilege to deal out their operational action whenever. There are numerous people
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decide at showcase region whom need to buy or consolidation their activities with fruitful
associations. This should be possible when an individual need to move their tasks.
 Valuation of organization: Another leave decision for a productive business is valuation.
Proprietor need to a motivating force out their business exercises on advantageous
preface which support them to choose about uplifting mentality of an association. This
section engages and bolster in offering of an affiliation where an individual could exit out
their running component. If a valuation is in positive idea then proprietor endeavor to
give it out as ideal on time as possible in light of the way that it give them extraordinary
cost by and large negative picture could reflect in low valuation of a firm.
Succession or growth always take place side by side. Business gain success and growth
only when operations have take place in an appropriate frame and accomplish business
objectives and targets properly as well. There are various issues and conflicts get arise which
need to control by management properly so that better and sufficient accomplishment of targets
get done (Ziari and et. al., 2012)). A major benefits of succession that business maintain their
sustainability into keen world where exit option signifies association to get shut down. Hence,
managers need to determine both options properly and effectively so that targets get accomplish
in a suitable frame.
M5 Exit and succession options with valid recommendations
Selling of business and valuation of an organisation are two major consideration or
recommend actions which could prefer by business when they lead to take place and define
about exit and succession option. Business have to determine such considerations properly so
that they lead to facilitate effective and appropriate working which further enable them to derive
appropriate and suitable gain. Hence, such options also signify better and appropriate return in
frame for deriving better growth and opportunity.
D4 Critically evaluation of such options with suitable recommendation
One of a exit reason for a business is change in culture and society preferences which
impacted an organisation performance adversely. It is highly recommend that whenever business
introduce themselves at new level they really need to change activities and operations as per an
culture. Cultural diversity is highly determine at such location like India where every person
belong to different religion. Thus, management have to manufacture such products and services
in which every culture and people opinion get take in account as well as they get satisfy. Hence,
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business need to evaluate all options properly and then take beneficial judgement related with
exist and succession so that better and appropriate working get promoted.
CONCLUSION
It get derive from project that growth is necessity for every small and concern business
organisation. Hence, to derive growth, suitable and appropriate framing of plan is must through
which business become able to accomplish all goals and targets properly. In such context, all key
consideration of growth need to understand by business managers properly as well as evaluate all
growth options properly. By evaluating them appropriate judgement lead to carried down to
manage plan for growth. Along with this, there are various options or source of finance get
determine as well which need to implement by business managers with their advantages and
drawbacks. Moreover, with suitable creation of business plan, aims and objectives get
accomplish in signify manner.
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REFERENCES
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for ‘Science Vale’, Oxfordshire, UK. Town Planning Review. 83(4). pp.457-488.
Van Assche, K., Lo, M. C. and Beunen, R., 2013. A perspective on planning, smart growth and
place branding. In International Place Branding Yearbook 2012 (pp. 69-77). Palgrave
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Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
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