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Business Growth Assignment - Cup Coffee House

   

Added on  2020-12-10

15 Pages4511 Words122 Views
BUSINESSGROWTH

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Evaluation of growth opportunities to analyse the competitive advantage for innovation1M1. Growth options................................................................................................................4P2. Analysing opportunities for growth by implementing Ansoff Matrix.............................4TASK 2............................................................................................................................................5P3. Potential funding sources and their benefits and limitations............................................5TASK 3............................................................................................................................................7P4 Business plan for growth...................................................................................................7TASK 4..........................................................................................................................................10P5 Success options for an organisation................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONBusiness growth is the factor which determines the successful management oforganisational functions. It is essential for an enterprise to plan for growth by seeking the bestinvesting sources. It is the only strategy which is related to development of a small enterprise.However, the report will evaluate competitive advantage for 21 & Cup Coffee House in UK. Theneeds of innovation in coffee services will analysed by firm with the help of porter’s five forcesmodel. In addition, it will identify growth opportunities of company by implementing Ansoffdevelopment vector matrix. Thus, the report will determine business plan of firm with the help ofwhich the organisation will seek for funds from different sources.TASK 1P1. Evaluation of growth opportunities to analyse the competitive advantage for innovationEvaluating growth opportunities is the best strategy which assists firm in planning forgrowth and establishing innovation in existing products and services (Barringer, 2012). Inaccordance with the statistics, it has been identified that the small medium enterprises aregrowing successfully which are denoted by the figures i.e. in 2015, there were 97000 SME'swhich grew to 5.5 million private sector business till 2016. This reflects remarkable growth ofsmall and medium businesses in the UK. Further, innovating products as per increasingcompetition and rivalries products is the best strategy which helps enterprise in managingsuccessful business operations. Analysis of competitor with the help of Porter’s five forcesmodel is the best technique which can help 21 & Cup coffee house in determining needs ofchanges as per rivalries and new entrants and substitutes. The porter’s five forces analysis ofcoffee business is as follows:Industry Rivalry: Coffee house is a common business because it allows peaceful placeto people to hangout and chill. Therefore, the level of competition is high in sector because thereare various leading enterprises which are located at all prime locations and offering premiumquality coffee services (Schaper and et.al., 2014). In accordance with this, 21 & cup will offer itsservices at competitive pricing and will also make use of quality coffee beans in order to seekconsumer’s attention. New entrants: The increasing growth of small business enterprises in UK denotes thepotential level of entrant high. Entering is related to access and due to lower prices of goods and1

services, it has become easy for the entrants to enter food industry and generate profits byoffering variety of services. It is the situation which enables risk of increasing barriers but on theother hand beverage industry have stability of services and therefore it is a growth opportunityfor 21 & CUP coffee house to come up with innovation in order to management successfulcoffee services. Power of buyers: Food and beverage industry offers various types of innovation inservices which enables high power to customers. It is the risk factor for 21 & and cup coffeehouse because. In this industry, buyers hold control over success of business (Blank, 2013).However, to overcome this factor and maximize growth opportunities, the firm will focus onmaking innovation in coffee services in order to attract consumers. Moreover, it can be said thathigh range of suppliers reflect the buying power of people. Power of suppliers: This factor relates to power with suppliers which is determined bysupply of coffee products in the market. In accordance with increasing competition andsubstitutes, it has been analysed that there are high range of suppliers in food and beverageindustry which is a risk for the growth of SME. However, to deal with increasing suppliers andcompetition, 21 & Coffee will make innovation in coffee services and will aim at managingcompetitive pricing strategy in order to gain consumer attention.Substitute products: Level of substitute in food and beverage industry is very high dueto increasing competition and innovation. In accordance with this, it can be said that substitute ofcoffee products holds a strong competition where the power is in hands of leading suppliers suchas Costa, Starbucks, etc. (Fernández-Guerrero, Revuelto-Taboada and Simón-Moya, 2012)However, to attain competitive advantage and to establish innovation in services of 21 & cup,firm will be implement the use of premium quality of coffee beans and entertainment activities.BCG matrix: When business raises it requires money in the future and new products to launch so BCGmatrix is designed to analyse a framework according to market share and its growth.Stars: These stars are considered to generate best market share and cash in 21 & Cup CoffeeHouse. But it calculates same amount of money returning which has been invested for itsdevelopment purpose.2

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