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Planning for Growth: Analysis and Strategies for Cafe Pariseinne

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Added on  2023-06-13

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This report analyzes growth opportunities and strategies for Cafe Pariseinne, a small business in London, UK. It includes a Pestel analysis, Porter's generic strategies, and Ansoff's growth vector matrix. It also assesses potential sources of funding and exit options for small businesses. The report recommends adopting the product development strategy to enhance the product line.

Planning for Growth: Analysis and Strategies for Cafe Pariseinne

   Added on 2023-06-13

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Planning For Growth
Planning for Growth: Analysis and Strategies for Cafe Pariseinne_1
Table of Contents
INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
Analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context....................................................................4
Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................9
Discuss option for the growth by using a range of the analytical framework for demonstrating
the understanding of a competitive advantage in organization............................................12
Evaluate the specific option and pathways for the growth, taking into account risk of each
option and how they can be mitigated..................................................................................13
TASK 2..........................................................................................................................................13
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.....................................................................................................13
Evaluate the potential source of the funding and justify the adoption of appropriate sources for
funding..................................................................................................................................15
Evaluate potential sources of funding with a justified argument for the adoption of a specific
source of source based on organizational needs...................................................................16
Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.......................................................................................................16
Appropriate and detailed business plan for the growth and securing an investment, objectives,
strategies, setting out strategies and appropriate framework to accomplish objectives.......22
Present a coherent and in depth business plan which demonstrate understanding and
knowledge of how to apply and achieve business goals successfully..................................22
Task 3.............................................................................................................................................22
Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.......................................................................................................................22
Critically examine the exist and succession option for the small business comparing and
contrasting the option and making a valid recommendation................................................25
Provide a critical evaluation of exist and succession option for small business and decide
appropriate course of the action with a justified recommendation for supporting
Planning for Growth: Analysis and Strategies for Cafe Pariseinne_2
implementation.....................................................................................................................25
CONCLUSION .............................................................................................................................26
REFERENCES..............................................................................................................................27
Planning for Growth: Analysis and Strategies for Cafe Pariseinne_3
INTRODUCTION
A business plan is a document that contains the main objective of the organization, key
operations to be performed to achieve the defined objectives, and ideas on how to perform and
allocate the activities for the achievement of goals. Planning for business is very essential for the
success of every organization. It involves identification of the opportunities for expanding the
business for further growth (Atkinson and Blundell-Wignall, 2022). When any new opportunity
comes in the market, business owners must formulate effective plans to take advantage of that
opportunity for business expansion. For achieving the growth oriented objectives, a proper
growth strategy should be followed. A business growth plan should include a vision and mission
for the organization to attain a position in the market through following the growth strategies.
The following report will cover the Pestel analysis, porter's five forces competitive analysis and
Ansoff's market growth analysis of a small business organization Cafe Pariseinne (a cafe in
London, UK that offers coffee , cakes, sandwiches, breakfasts etc.) for expanding the scale of
business and planning for growth.
TASK 1
Analyze key considerations for evaluating growth opportunities and justify these considerations
within an organizational context.
Meaning of SME
SME stands for the small and medium sized enterprises that denotes the 99% of all the
businesses in the UK. These are the type of organizations that are determined from two factors
firstly from the strength of the employees and secondly through turnover or total of balance
sheet. There are three types of businesses under the SMEs that is Medium sized, small and
micro business.
What is planning and growth in Cafe Pariseinne
Meaning of competitive advantage
The competitive advantage within an organization is the condition or the situation that
make the company stand in superior position to other competitors. This is one of the most
essential factor for the organizations to produce and serve better products and services in against
of the competitors.
Planning for Growth: Analysis and Strategies for Cafe Pariseinne_4
SWOT Analysis
Strengths
Talented and skilled staff such as chefs, waiters, etc. are the main strengths of Cafe
Pariseinne, as this allows the company to produce the highest quality products.
The premium pricing of the company's bakery products and other products is also a
major advantage for the company. This brings loyal and luxurious customers to the cafe.
Weaknesses
Inconsistent sale of the company is major disadvantage for the cafe as this is creating
instability in business and also due to this company in not able to grab the growth
opportunities effectively.
Limited market share as the cafe is small sized business with limited customer and
employees. This is drawback for company as this limits the company to particular stage
and hindering the growth as well.
Opportunities
Planning for Growth: Analysis and Strategies for Cafe Pariseinne_5
Digital marketing and social media marketing is the major opportunity for the cafe to
increase its brand presence among the youth and potential customers.
New techniques and innovation into the cooking methods, flavors of the bakery items,
new working process, etc. is the major opportunity for the cafe Pariseinne to increase its
product portfolio and sales.
Threats
Highly dynamic and competitive market is huge threat for the business as the industry is
filled with the huge competitors that are leading the market in monopoly. This brings the
threat of succession or exit to the firm.
Costly suppliers with high bargaining power is also threat to the cafe as the with the
increasing trend of vegan food the suppliers that provide vegan raw materials are costing
high prices.
PESTLE Analysis
It is a strategic framework that is used to evaluate the external environment factors that affects
the business of the organization. In context with cafe parisienne, Pestel analysis is explained
hereunder :
(Source:Pestle Analysis: A Mechanism for Analysis of Businesses,2022)
Illustration 1: Pestle Analysis: A Mechanism for
Analysis of Businesses,2022
Planning for Growth: Analysis and Strategies for Cafe Pariseinne_6

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