Planning for Growth

Planning for Growth

Table of Contents
INTRODUCTION.....................................................................................................................................3
LO 1............................................................................................................................................................3
P1 Key considerations for evaluating growth opportunities....................................................................3
P2 Evaluation of growth opportunities using Ansoff Matrix...................................................................5
LO 2............................................................................................................................................................7
P3 Potential sources of finance with their benefits and drawbacks..........................................................7
LO 3 and LO 4...........................................................................................................................................9
(Covered in PPT).....................................................................................................................................9
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................10

INTRODUCTION
Planning for Growth can be defined as a strategic activity that enables an organization to
monitor and track the overall growth of its revenue. It also allows effective utilization of
resources within a company and thereby gain a competitive advantage against competitors.
Planning helps in identifying markets that have the potential to grow and can equally contribute
to the expansion of a business (Göçme and LaGro Jr, 2016). Planning for growth not only helps
in devising strategies for companies but also expanding their business across different markets in
order to increase profits. Organization chosen for this report is CaféPod, which is an independent
coffee firm that is based in South London and was founded by two friends in the year 2011. The
company came into existence as a result of mutual love of the founders, Peter Grainger and Brent
Hadfield for coffee. CaféPod aims to become the number one coffee retailer across the United
Kingdom by offering high quality coffee products to the customers. The report analyses the key
points that SMEs should consider while evaluating various growth opportunities and also
assesses different methods of funding available to organization along with their benefits and
drawbacks
LO 1
P1 Key considerations for evaluating growth opportunities
Weather it is a small or a large business, it comes across various opportunities during its
lifetime. These opportunities can either be of growth in an existing market or expansion in a
completely new market (Sparkman, 2018). Since CafePod is currently a small business, it should
take various considerations into account while evaluating growth opportunities which are
explained below with the help of relevant models.
Boston Consultancy Group Matrix
Respective model is designed in order to help organizations develop effective long-term
strategic plans. Companies can review their product portfolios in order to consider various
business growth opportunities (What Is the Growth Share Matrix?, 2020). The BCG matrix was
developed by Bruce Henderson in the early 1970s based on the logic that market leadership can
result in higher sustainable returns. It comprises of four quadrants that represent a particular
combination of the relate share in the market. The quadrants are cash cows, dogs, stars and