Planning for Growth: Evaluating Opportunities and Funding Sources for Bold Street Coffee

This report discusses evaluating growth opportunities for Bold Street Coffee, applying Ansoff's growth vector matrix, sources of funding with benefits and drawbacks, and a business and action plan for growth.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key consideration for evaluating growth opportunities...............................................................3
Evaluating opportunities for growth applying Ansoff's growth vector matrix ...........................6
Sources of funding with benefits and drawbacks........................................................................7
Business and action plan for Bold street coffee...........................................................................8
Assessing the exit and succession options for the business ans explaining the benefits and
drawbacks of each option...........................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth is related to the creating a strategic plan in order to more focus on
the preparing a realistic vision for future in context of maximizing the potential successful
business growth. It helps for development of goal setting and career plan which is necessary for
growth of the organization (Delani,2021). Present report is based on the Bold Street Coffee based
on UK that offer specially coffee with rotating blends on the menu also it is offer sandwiches,
lunch and dinner. In the report it included key considerations for SME by evaluating different
growth opportunity for the for company with the help of Ansoff Growth matrix. Also, it also
provides the potential sources of funding that are available to business in order to discuss the
benefit and drawbacks of each source. In addition to this, it also designs business plan that are
help for growth in order to include financial information and strategic objectives. In the last exit
and succession options for chosen company in orders to explain the benefits and drawbacks.
MAIN BODY
Key consideration for evaluating growth opportunities
A growth opportunity help company to providing different ways that help for
synthesizing market research and data for identifying opportunities in specific market or business
area bys formulating actionable strategy in order to realize the growth. For the chosen company
it is necessary for identify the opportunities that are help for development of new product line in
order to employment that is work on the basis of marketing techniques. Also, there are different
types of grow the business a business in niche market for operating other activities. VRIO and
Porter generic model are uses for identifying growth opportunities such as follows.
VRIO
This model is related to value, rarity imitability and organization that are set according to
the criteria of resources and capabilities. Also, it helps chosen company for analysing the
advantages and resources which are related to competitive edge (Chatzoglou, Sarigiannidis and
Theriou, 2018).
Valuable- When resources are valuable it helps for providing some part of benefits, that
are related to providing different types of dimensions of company that is not competitive
advantages and help to competitive parity with resources that is valuable for chosen company.
Rare- In this section it has been analysed that all the resources are including which are
related to the rare and valuable resource that help company for giving competitive edge. Also,

for the chosen company it provides good quality of product as well as it is offering wide variety
of coffee that are import from other location. In UK organization has realised that it is temporary
competitive advantages.
Hard top imitate- There are some resources which are hard to initiate on the basis of
extremely expensive for other company for acquire them such as ambiance of Bold Street Coffee
help to attract large number of customers as well as it is protected by legal means such as patents
trademarks. However, company can be organized in order to fully take the advantages of unused
resources.
Organized to capture value- The organization resource are help for capturing value in
order to mores focus on support the process, structure and culture of organisation. Only
organization can capture the value by sustaining the competitive advantages (Firoz Suleman,
Rashidirad and Firoz Suleman, 2019).
Financial resources Human resources Material resources Non-material
resources
 Shares
 Bonds
 money
 Debentures
 People
Knowledge
 People skill
 Machinery
 Equipment
 Raw materials
 Facilities
 Brand name
 Intellectual
property
 patents
valuable Rare imitate organized
Competitive
parity
yes no
Temporary
competitive
advantages
yes yes no
Unused
competitive
advantages
Yes yes no
Long term yes yes yes no

competitive
advantages
Porter generic strategic model
This model help for choosing the right way of success as well as it is help for classify
company in order to more focus on gaining the competitive advantages that are following
different type of strategy related to competitive advantages. All the four strategies are as
follows:
Cost leadership strategy- This strategy that help for focusing on the growth of the
company as well as it is help for ensure about the profitable and then add shareholder value for
invest effectively. This is the long term strategy that helps for creep back into business. It is also
helped for increasing profit margin by maintaining current cost as well as resisting price
increases when competitors that are related to reducing the price in order to become competitive.
Differentiation strategy- In this strategy company focus on differentiating product and
services from its competitors also this is related to wide spectrum from full product diversity for
unique features within a core product (Thompson, Truppo and Turner, 2019). In this strategy it
provides the opportunity of enter into new market by diversifying revenue as well as it is also
helped for grow in existing revenue streams that can be up-sell for getting more deals. It helps
for open in the market by opening up market channels for product or services.
Cost focus strategy- this is the evolution of cost leadership strategy which help for focus
on industry or geography in order to become expert for delivering in niche market. Also, this
strategy is help for becoming the thoughts leader in an industry as well as it cans be open up by
partnership in the same industry. It is help for providing the level of credibility in order to
become overall story of organization.
Differentiation focus strategy- In this strategy it helps for providing the opportunity of
cross selling as well as its is necessary for become consumer in the market that can be changing
market or consumers by replacing products.
It has been justified that for the chosen company it has been suggested that for the long
term growth it is necessary to focus more on differentiation that is beneficial for future growth

and get the competitive advantages by providing different type of services in cafe such as
customer can make their own coffee ass auxiliary products (Chintalapati, 2020).
Evaluating opportunities for growth applying Ansoff's growth vector matrix
This framework help for identifying the different types of opportunity on the basis of
analysing the plan and evaluating growth initiatives. Also, this is help for stakeholder
conceptualize the level of risk associated with different type of growth strategies. There are
different of strategy that can be used by company such as follows:
Market penetration- In this strategy it helps for management seek to sell more for
existing products into also this is one of the familiar with the help of existing relationship by
increasing the efforts or streamlining distribution process. The price of the product and services
can be decrease in order to attract new customers within markets segment also it is help for
acquiring a competitor in same market. This is also related to incremental price on th basis of
several lines for product and services.
Market development- this strategy is risky for sometimes in order to more focus on not
require for any significant investment in research and development (North, Craig and Slotow,
2022. Also, it is also allowed management teams in order to leverage existing products that can
be taken to the different market approaches. This is also helped by focus more on different
customer segment or target demographic and it is also for entering into new and domestic market
in context of regional expansion as well as it is provided the opportunity for enter in foreign
market.
Product development- This is related to the particular market segment for targeting
audience that can not expand on the basis of customers bases which is related to getting the
loyalty as well as it is help for investing in research and development for development of new
product as well as it can be help for acquiring the right to produce and sell product of other firm.
This is also provided the opportunity of the organizations in order to more focus on creating new
offerings by branding a white label product.
Diversification- This is one of the last strategy that can be followed by company by
ready to get the higher risk for both product development and market development that can be
required on the basis of high risk strategy. This is achieving together on the basis of revenue
opportunity by reducing the alliance of the firm in context of single product in the market.

It has been justified that for the chosen company it has been suggested that for coffee
shop it is necessary to follow the strategy of diversification. With the help of this strategy it helps
to provide the benefit of attracting large number of producer of coffee so that it help to increase
the production process in order to investment in research and development and production.
Sources of funding with benefits and drawbacks
There are different sources of funding so that it help for business operations, expansion
and development also it is related to core limiting factor that is crucial for business in order to
manage the financial resources in order to focus more on external and internal sources. Some
sources are as follows:
Retained profits- This is related to undistributed profits of organization that can be made
on the basis of dividend and shareholders. Also, the amount which is remainder is saved after all
the payment in trading year that is called retained profit. This is also helped for fulfil the need of
the business as well as it help for expansion of business which may be later for company's
development (Mason and Botelho, 2018).
Advantages-
 There is no interest payment to bes made on usage of retained profit.
 There will be no cost for raising the finance that can be related to issuing cost for
ordinary shares.
Disadvantages-
 It can be possible that it include opportunity cost.
 Retained profit is not available for start-up the business which is making losses for long
period.
Loans- This is the amount of money borrowed from banks or any financial institutions on
the basis of long term business projects which are related to development or expansion of
business. Loan can be considered as the substitute by alternatives sources of finance that is
suitable for better outcome.
Advantages-
 This is suitable for long term investments The rate of interest is comparatively lower than bank overdraft that can be set in advance.
Disadvantages-
 Interest is charged.

 The amount can be borrowed with the purpose of repaid on agreed date.
Venture capital- This is the capital which contribute on the basis of initial stages of an
uncertain business, this is the great deal by possibility of providing higher than average turnover.
This can be expected on the basis of influence over other business.
Advantages-
 Venture capitalists invest large sums of money in business. This is only periodical investors in order wait for exist the business at some stage.
Disadvantages-
 Profit can be shared with investor.
 In order to acquire the venture capital it is lengthy process on the basis of business plan.
It has been justified that Bold Street Coffee can be the best option in order to get funds
from retained profit as well as it is beneficial for maintained the company's debt capital which
does not increase on the basis of gearing ratio (Yusopa, Awang and Ghazalie, 2020). There is no
cost raising the finance on the basis of issuing cost for ordinary shares.
Business and action plan for Bold street coffee
Overview of the business: Bold street coffee is mainly recognized as the bes coffee shop which
is mainly Selling special coffee with adopting sustainable packaging in the Liverpool UK. The
company is mainly serving freshly blend coffee with the menu including the lunch, breakfast and
the sweet dishes including do nuts and the pastries. As for expanding the business and attaining
more revenue and the performance by mainly adding new menu ranges to attract the target
consumers for serving the new product range while operating in highly target consumers. With
mainly serving wed range of dishes including the bowls menu, Buoys, tea, sandwiches, ice
drinks and huge range of coffee products (Young, Rosenstiel and Henderson, 2020). As for
attaining growth in the business by expanding the range of menu by adding the chocolate serves
dishes including sandwiches, muffins, brownies, coco lava cakes and chocolate fudge.
Mission: As for serving wide range of consumers the main mission of the company is to serve
best food menu by adopting the sustainable practices which helps in retaining the loyal
consumers market.
Vision: The main vision of the company is to attain goodwill by attracting and targetting with
serving the large consumers market for attaining the best performance.

Goals: The ultimate goals of the bold street coffee is to increase the menu range and marketing
strategies to earn more revenue by targetting the large consumers market.
Objectives: the objectives are:
 To increase the target market till 2023.
 To increase the revenue's ad profits by 20% till the ned of 2023.
 To introduce new products for attracting consumers.
Stakeholder: The shareholders for operating the small coffee business mainly includes the
owners, consumers, staff personnels, chefs for the bakery, coffee and cooking lunch and other
menu, also the investors which are investing the money (Zafar and Akhtar, 2020). These
individual mainly helps in attaining the goals as by contributing effectively to meet the goals
which results in being more competitive.
Capital funding: For funding the business the different sources for raising capital mainly
includes:
 Personal investment: As by building the strong brand image while operating in the
highly competitive market, attracting investors and investing the own finding as by the
owners helps in expanding the business to operate for the long run and attain profits by
using the funds attained from the owner.
 Bank loans: taking loans from the SBA banks mainly helps in the bold street coffee to
expand the range of products and the services being provided to the existing target market
with adopting the funding the flexible term and conditions for repaying money and
earning the revenues.
 Retained earnings: these are mainly considered as the saving being made and retained
from the undistributed profits range which helps in funding the business for expanding
the range and managing the daily operations and working of the company to earn more
revenues by attracting the target market.
 Resources plan: The resource plan mainly includes the human resources and the other
physical resources as equipment which are used for expanding and serving the new
product to the target consumer (Marrella, 2019). As by hiring the chef which is
experiences and best for making dishes from chocolates in the budget with the best
quality in nature.

 Operational plan: In the operational plan mainly includes the planning for the
production capacity and reducing the delay as to serve the best to the consumers arriving
at the coffee shop. As with this it mainly helps in reducing the cost by operating as to
attain efficiency.
 Technology plan: In this technology plan using the hydro bond technology which mainly
helps in blending and mixing the right amount of all the materials and makes the best
dough this helps in minimizing the wastage of energy which help in producing the best
products as to attract and earn more revenues by reducing cost.
 Marketing plan: With designing this plan by adopting the different marketing strategies
as to promote the products for attracting the consumers to purchase and dine in. also as
by posting and building the social media account and posting the videos and pictures
mainly helps in effective launching the new products in the menu range.
 Risk factors plan: The risk factors mainly helps in defining about th pan which helps in
adopting the measures to minimizing the risk for producing the new product range.
Time framing
activities week1 week2 week3 week
4
week5 week6 week7 week8 week9 week
10
Researchin
g about the
business
Analysing
mission
Designing
vision

Defining
goals
Designing
objectives
Analysing
stakeholde
rs of the
business
Source of
funding
Designing
resource
plan
Operation
al plan
Technolog
y plan
Designing
marketing
plan
Risk
factors
Swot plan
With making this plan it helps in defining about the strengths, weakness, opportunities and
thereat pertaining to business.
Strengths: With offering special coffee range mainly helps in serving by building the
strong presence in the dynamic market. Also Serving with wide menu range with freshly made

lunch, sweets retains loyal consumer market. Further more by winning award as being
established at the good location in the Liverpool helps in retaining the loyal consumer market.
Weakness: With delivering the service at high quality and adopting sustainable means
mainly reduced the revenues and profits of the company.
Opportunities: Adopting new techniques and innovating the products mainly helps in
improving the performance and giving reward to the loyal consumers with gifting and giving
discounts help in attracting consumers.
Thereat: By operating with low profit margins hinders in operations, also highly
competitive market impact the business operations of the company.
Recommendation:
 By starting the online channel of the delivery mainly helps in attracting the large
consumers market as with providing the food in more continent manner.
 With innovating and adding new products in the menu by serving the chocolate based
dishes in variety of ranges results in attracting the audiences.
 With organizing live music on the weekend helps in influencing the target market and
retaining the loyal consumers by visiting daily at the coffee shop.
Assessing the exit and succession options for the business ans explaining the benefits and
drawbacks of each option
Exit and succession options are mainly defined as the planning for succeeding the
business. These are mainly being adopted by the businesses as to maintaining the postilion and
when the cries and challenges being faced while serving in the existing market (Sági and Juhász,
2019). Different options that are available with the business with which it helps in liquidation
and succeeding over the long run mainly includes:
Passing succession to the family: With adopting this option mainly includes passion the
business to the family members as by transferring the roles and responsibilities, ownership also
the assets to further operate the business for the long term (Pittino and et.al., 2020).
Benefits: this option helps in protecting the business assets and resources used to serve
consumers while operating in changing market.
Drawbacks: it reduces productivity with changing the practice to operate the business by other
individual hinders initially to earn profits.

Selling business: This option being adopted by the businesses when these are mainly
facing the loss and adopting this option to repay the debts and also paying all the liabilities to the
creditors.
Benefits: with adopting this strategy mainly helps in paying all the debts and reducing the
liabilities.
Drawbacks: While immediate Selling the business impacts and results in facing loss
Liquidating the business: This approach is adopted as to permanently close and wind up
the business and Selling the assets being owned for paying the debts as by being insolvent in
nature.
Benefits: Helps in getting rid of all the legal obligations and reduces the burden of the
creditability.
Drawbacks: with this options it results in loosing the exiting market share.
Merging and acquisition: this strategy is mainly adopted as by merging with the other
business or acquiring as to succeed the business to earn the profits and serving in the highly
competitive market (Pinnegar, Randolph and Troy, 2020). as With this strategy mainly helps in
negotiating and merging with the others business at to attain the profits and succeeding the
business by serving the large consumers global market in the long run.
Benefits: Helps in growing the market share by merging and acquiring with other business, also
it enhances the distribution capacity and high profits earnings (Duarte and et.al ., 2021).
Drawbacks: it increase and rose in cost by merging and acquiring the business as to succeed and
attain growth.
The most suitable source of exit and succeeding the bold street coffee is merging and
acquisition, this mainly helps in retaining the target market and serving tot eh large number of
consumers by acquiring and merging with the other business and results in attaining wide range
of profits (Business Exits: Choosing the right strategy, 2022). further more, With adopting this
mainly helps in acquiring the resources of the other business which results in attaining growth
and achieving competitiveness with ever-increasing the share of market and earning capacity
while operating in dynamic market.
CONCLUSION
It has been concluded that planning for growth is one of the beneficial for organization in
order to expand the business. For the chosen company there are different types of growth

opportunity in order to expand business with the help of diversification strategy. Also, in the
report business plan were made for collecting financial information in order to set the strategic
objectives. Further, it is assessed exit or succession options in order to understanding its benefit
and drawbacks.

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Online
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