Planning for Growth: Strategies for Cafepod Company

This report discusses growth planning strategies for Cafepod Company, including competitive advantage, opportunities, Ansoff's growth vector matrix, finance growth options, and exit/succession options. The report evaluates the basis of competitive advantage, opportunities available to the organization, and critically assesses all the options for growth. It also evaluates the options for finance growth and the source of funding available with the Cafepod Company. Finally, the report outlines exit or succession options for the company.

PLANNING FOR
GROWTH.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Basis of competitive advantage-..................................................................................................4
Opportunities available to the organization-................................................................................4
Critically assessing all the options for the growth that the Cafepod company has by applying
Ansoff's growth vector matrix-....................................................................................................6
Critically evaluating the options for the finance growth and the source of funding that are
available with the Cafepod ..........................................................................................................7
Exit or succession option for the Cafepod company-..................................................................8
RECOMMENDATIONS.................................................................................................................9
BUSINESS PLAN-....................................................................................................................10
Company overview....................................................................................................................10
Mission and vision.....................................................................................................................10
Products and services ................................................................................................................10
Market analysis..........................................................................................................................11
PESTLE ANALYSIS................................................................................................................11
Porter 5 forces ...........................................................................................................................12
Marketing mix............................................................................................................................13
Financial projection...................................................................................................................13
CONCLUSION -...........................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Growth planning can be defined as the strategic business activity which allows the
business owners for planning as well as tracking of the organic growth in the revenue. It helps
the businesses for the optimum as well as the effective allocation of the limited resources which
are available with the companies (Addae-Korankye and Aryee, 2021). It is very important for
the businesses to develop the growth plan by following and considering certain factors. This
includes such as lack of the sales, high level of competition as well as the unexpected growth of
the company. CafePod Coffee company is based on the small scale businesses which provides
the exiting coffee for their customers. This company is providing the wide range of the products
to its customers with good quality (AlQershi, 2021). This report will discuss the basis of the
competitive advantage as well as the growth strategies for the company. Along with this, the
report will also discuss the various sources of the funding’s as well as the exit options for the
company. Further, the overall business plan will be outlined in the report.
MAIN BODY
Basis of competitive advantage-
The competitive advantage of the company is something which enable the company to
get the edge over the other companies or its competitors. This competitive advantage helps the
companies to attract the large number of the customers as well as they are able to grow their
company’s market share. The various basis of the competitive advantages is such as-
Resources: Each and every company has their own resources through which they are able to
achieve the organizational success (Stone, Cox and Gavin, 2020). Through this, the company
differs as the company which is having more number and effective resources helps them in
staying ahead of the highly competitive market. The CafePod Coffee company is having very
less resources and due to which it is the small scale company.
Quality and range of the products: The another is the quality as well as the range of the
products which the company is offering to its competitors. It is true to the fact that the companies

which are producing the wide range of the products, helps them to stay one step ahead in
comparison to the other companies. The CafePod Coffee company is small scale company and
this company is offering coffee to the customer only.
Location: This is one of the main aspect through which the competition of the company is
affecting within the highly competitive marketplace. The companies which are located at very
good placed for example from the place the view is very good and it is available to the customers
without facing any complexities stay ahead in the market.
Customer services: The company which is providing the quality customer services to their
customers enables them to improve the brand image. This helps them in staying different as well
as they are able to meet the expectations of the customers according to their needs and wants.
Opportunities available to the organization-
There are various opportunities available to the Cafepod coffee company. All the
opportunities arises from the external environment which can be accessed by the Cafepod
company in order to increase the profits of the company. It is very important on the part of the
company that is grab the opportunities. Right opportunities does not only help to earn more
revenues but it also helps the company to build the strong brand image. The following are the
opportunities for the Cafepod company-
Social media marketing- The social media marketing can also help the company to grab
different consumers from different cities and the areas (Li, Larimo and Leonidou, 2021). The
Unique products and unique taste are the big plus point of Cafepod. The social media marketing
attracts consumer toward the product. Today, all the social media platforms act as the best root of
the marketing.
Adding more products- The innovative products can help the company to grow in the market.
Improving products according to the requirements of the consumer will help the company to
achieve more consumer base and increase more profits. The different flavours of coffee can be
also introduced in the market as this is new to consumers.
Going digital- Selling coffee from the online platforms can also help company to reach more
consumers. Social media platforms, and the website of the company can be established as a
mediator between the consumer and the Cafepod. The direct sale increases the consumer base,

and helps company in increasing the profits. The digital platforms are also useful for consumer
as it decreases the value of the product by avoiding mediators cost.
Critically assessing all the opportunities-
Opportunities Advantages Disadvantages
Social media marketing 1) Increase sale.
2) Increase profits.
1) High cost involved in
marketing.
Adding more products 1) More excitement in the
consumers.
2) High profits.
1) Risk of failure.
2) cost of research and
development.
Going digital 1) Increase awareness of the
product.
2) Enlarge consumer base.
1) Low interactions with the
consumer can mislead the
consumers.
These are the various options that are available with Cafepod company. Every opportunity brings
something unique for the company that ultimately will lead to increase consumer base. The
company can use any one of above to enlarge the consumer base that in turn increases the profits
for the company.
Critically assessing all the options for the growth that the Cafepod company has by applying
Ansoff's growth vector matrix-
The Ansoff matrix is referred as the market mix or grid. This is two by two model or can
also be defined as the framework that helps the company to plan the growth for the organization
(Cleberg, 2019). It determines the various opportunities that can be grabbed to trap new market
areas either with the same products or with the different products. This also highlights the risk
factor that is involved with different strategies (Tsatsoula, 2018). For growth Ansoff growth
vector matrix has four most commons strategies that are as follows-
The Market development- This strategy is related to the current products in the new market.
The Market Penetration- This use the current products in the current market.
Diversification- The new products in the new market is referred to the diversification.

Product Development- The new products in the current market is referred to the product
development.
The different strategies have different level of risk involved in it. Strategy that has more
risk associated with it needs more time for research and development before implementing it.
The diversification growth model of Ansoff has high level of risk associated with it. The
Cafepod company can't diversify its business for now because it does not hold good financial
resources with them and risk of failing is also high in diversification strategy But Cafepod
company can use product development growth model for increasing consumer base in the
market. Different flavours of the coffee can be useful to engage different sections of the
consumers. Innovative product has always been the plus point for the Cafepod company and it
can expand more into the product line. Product line can be improved either by the enhancing old
products in the market or by innovating new product. Both are very useful for the company
Cafepod as both are the good way to attract consumer in the market.
Critically evaluating the options for the finance growth and the source of funding that are
available with the Cafepod .
There are various sources of raising fund for the organization, it depends upon the company that
which source the company use for raising funding that is totally depended upon the requirements
and the risk involved in the funding. The numerous sources of funding are as follows-
Bank loan-
There are various banks in the market today that provide business loans to the different
companies. Business loan provided by the company are unsecured loan. Banks always have been
the important part of the finance system and the companies have always used them to meed the
financial needs of the companies. Every bank has separate requirements like the annual turnover
of the business, credit scores on the basis of which bank provide loan to the consumers. Loan is
basically the money borrowed for a particular time and that will be repayable after paying the
interest rate of the bank.
Crowdfunding-
Crowdfunding is referred to the funding that is borrowed by the different individual at different
points of time. Increasing use of social media has enabled the companies to use the
crowdfunding source as the basis of funding (Coakley, and Lazos 2021). There are various

websites that work as a mediator between the borrower and the lender. The websites are
responsible for setting the interest rate that has to be given by the borrower. This is an
outstanding source of funding which provides flexibility to the company to work according to
them as crowdfunding individuals does not take active part in managing the company.
Angel investor-
Angel investors are the individuals that have good financial resource with them (Sohl, 2019).
Angel investors generally invest in the companies either when the company has creative idea for
starting a business or is launching new and different product in the market. The angel also works
in team to pool all their resources together and financing in the small business. Angel investors
are always interested in managing the companies as well. They don't demand interest but giving
ownership to them is a difficult task. Moreover, it is not easy to find angel investor as they only
invest in company that have a good idea with them.
Peer-to-peer funding-
The peer to peer funding is known as the process in which an individual borrows money from the
another individual without the need of the bank (Basha, Elgammal and Abuzayed, 2021). This is
also known as a social lending that allows people to borrow money from each other. It is the
traditional source of funding but here the interest rate are generally high. In peer to peer lending,
lender does not take part in the equity nor is responsible for the management of the company.
The only important thing for the lender is the interest rate that has to be given by the borrower to
the lender on the monthly basis.
The Cafepod company can raise fund by adopting the option of bank loan which neither
takes the equity of the company nor is interested in the management of the company. Even the
loans are unsecured that is beneficial for the company. The government is also trying to increase
the manufacturing sector of the country which enables the companies like Cafepod to expand and
diversify more.
Exit or succession option for the Cafepod company-
There are various options of exist and succession for the Cafepod company and that are as
follows-
The strategic partnership-
The most common succession strategy is to partner with all the local brands in the market
(Tarigan and Siagian, 2021). A good partnership helps company to grow on higher level by

following same direction to achieve the same goal. There are various local brands that are
growing in the market today and partnering with all those brands wider the consumer base.
Partnership also helps companies in creating new and innovative products. Partnership always
happens between the parties that deal either in the same sector or have vision to offer same
products and the services. This is one of most easy succession strategy that can be followed by
the Cofepod company.
Wind up-
Winding up business only exist when business is not able to perform well in last few
years (Sharma, 2020). It is rare type of exist as the company closes all the production and
operation function. There are times company do not perform well and is unable to earn revenue
for longer period. In this type of situation company generally close their business. Winding up is
not an easy process because it involves all the stakeholders of the company be it shareholders or
the employees. The Cofepod company is running great from last few years and winding up is not
the best exist option for the company.
Merging-
This is same like the partnership in which two big firms merge in order to achieve the
same goal. The company that merge with each other will be defined as a single new legal entity
for the common purpose (Segal, Guthrie and Dumay, 2021). Generally companies merge with
each other to gain consumer, reduce competition and achieve the economies of scale. There are
many types of mergers that the company can follow that totally depends upon the objectives and
the strategies of firm. The Cofepod can merge with some famous brands in order to enhance the
consumer base.
IPO'S-
Initial Public Offer is referred to the process that shares the private corporation with the
public. Companies that meet the requirements of stock exchange can launch their IPO's. This is
the best exist strategy for the real owners of the company as IPO's are launched when it is fully
realized that the company has generated enough revenue for the owners and after selling equity
they will still be in profit. Initial public offer is the best way but for that company has to increase
its reputation in the market.
Selling the business-

The business of Cofepod can be sold to the family members, partners and the employees
of the company. This is not best option for the succession as the real owners of the company start
loosing control on the management of the company. Business can also be sold to the third party.
The more advance the business is, the more will be the option available with the company to sale
its business. It also involves allowing another company to take control of the company. The
Cofepod company should focus on making business desirable that individual and different
companies thinks of buying it.
RECOMMENDATIONS
The Cafepod company can focus on some important areas in order to increase the
consumer base that in turn will increase the profits of the company-
 This is the recommendation to the company that the business should try to provide
affordable good to the consumer to sustain their company in long run. The Cofepod
company can increase their revenues by selling more to the consumer. Today, the
competition is getting higher and that can only be avoided by building the growth
strategy of price reduction, so that consumers of Cofepod company does not shift to the
other products of the other company. It is also recommended that company should make
products for elite consumer as they have purchasing power to afford high ranges' product
as well.
 Marketing is the key elements that helps the company in expansion. The firm who knows
the best marketing ticks can earn more in long run. The Cofepod company can promote
its product in the market by following the best root. It's highly recommended that the
company should start investing in the social media platforms as the users of social media
platforms are increasing day by day and that can act as a good marketing platform for
Cofepod.
BUSINESS PLAN-
usiness plan is a term engaged with written documents that provides a brief about company's
overview (McKeever, 2018). This is a strategic plan of actions which helps a business to identify
its current position in the market and helps a business to ascertain where it wants be in the future.
Here is a business plan of coffee pod (Henriques, Matos and Jerónimo, 2022).

Company overview
Cafepod established its business in 2011 and is a self-directed craft coffee outlet. The
company provides quality coffee to the adventurous drinkers. It is highly influenced by the
London coffee.
Mission and vision
Mission
The mission of the company is to deliver happiness on a daily basis to the people and
help them to succeed and fly high from the daily grinds and hustles (Fitzsimmons, Qin and
Heffron, 2022).
Vision
The company takes its inspiration from the London Coffee and aims to be announced as
creative and passionate business. Its vision is to become every person's go to coffee cup.
Products and services
The company is engaged in coffee products such as Nespresso compatible comprising
caramel and vanilla flavoured coffee. It also comprises Ristreto, intense roast and various other
coffees such as, ground coffee and whole bean coffee which again has a variety of supercharger
Espresso, brunch blend, daily grind, decaf espresso, variety pack and strong pack.
Market analysis
Market analysis is refereed as an assessment of different markets in which the business
operates and it should be of the same industry. Through a good and proper analysis of market a
business gets an understanding of where it actually stands and what are the factors which can
affect its working. A good analysis of market also helps a business to identify right and potential
customers for itself. Below is the market analysis of Cafepod which will help the company to
determine its competition in the market and its scope of growth in the market.
PESTLE ANALYSIS
Pestle analysis is defined as the best tool that helps in assessing the external environment
of a business. With the help of pestle analysis a business can ascertain the 6 factors which can
affect the working of a business (Hans, 2018). The six factors are political, social, technological,
environmental, economic and legal factors. Here is the pestle analysis of Cafepod co.
POLITICAL FACTORS Political factors are linked with the factors for example;
military invasion, taxations, level of corruption, trade

regulations, political stability etc. UK has a great stable
market which makes the company stable enough to be
productive. Only factor which affects the company is the
high cost of Narino bean crop which is a limited resource.
ECONOMIC FACTORS Economic factors involves the inflation rate, deflation rate,
savings rate, interest rate, exchange rate etc. Cafepod is
facing a serious issue here as, after the huge crisis of
Covid-19 the company is highly affected by the rise in
prices of inputs, which is really affecting the company's
profits and its customers base.
SOCIAL FACTORS Social factors are associated with the different traditions
and cultures and the different tastes and preferences of the
customers (Shtal And et.al., 2018). Here for Cafepod, it
becomes an important part to analyse the likings and
customers shifts towards the coffee. The population of UK
is addictive of coffee which gives the company a great
advantage.
TECHNOLOGICAL FACORS These factors are engaged with the adoption of
technological advancements that takes place in the society
on regular basis. Cafepod is highly inclined towards the
adoption of technologies as it makes the working easier.
The company is also using various machines for the
designing of coffee beans as well.
LEGAL FACTORS Legal factors are linked to the legal framework that a
country has. UK has a strong legal framework which
guards the right of every business that operates in the
country. Here the company has a great advantage of
security as there are strict laws of import, exports,
copyright, patent right, fraud laws etc.
ENVIRONMENTAL FACTORS Environmental factors are associated with the climatic

conditions of the place in which the business is working. It
also deals with the businesses using appropriate ways of
carrying its operations. Here the company cafepod is
highly indulged in protecting the environment so the
company uses the cups which are made of recyclable fibre
and it also believes in its own farming which leads to 15
new trees every month.
Porter 5 forces
This model helps a business to analyse its personal strengths and weaknesses in order to
shape its structure accordingly. It has 5 forces which helps in determining the current position of
a business.
Competition- The company has a great existing competition. As the UK population is highly
inclined towards the coffee culture, the country has large number of companies operating in the
same market.
Threats of new entrants- The new entrants threat here is low as the company already has a huge
menu which involves large variety of coffee. For a new entrant, it will require a huge capital for
keeping a range like Cafepod.
Customers power- Customers power is an important factor for every company but here the
company has kept its prices high due to the high quality offerings. The customers can not bargain
here and can only avail offers given by the company.
Suppliers power- Supplier power is high in this market as the UK coffee industry is vast. This
makes the company to take the supplies at a rate which is set by the suppliers only.
Threat of substitute- This particular threat to the company is high, as the prices of the company
are extremely kept high due to its exotic offerings. This will make only coffee enthusiastic to
know the value of the company's products.
Marketing mix
Marketing mix encompasses 4 P's: product, place, price, and promotion. This helps a
company to have a direct influence on the customers purchases (Hanaysha And et.al., 2021).

Product- The company is engaged in selling Nespresso coffee, ground coffee and whole bean
coffee of different flavours. It also involves supercharger coffee, strong packs, variety packs
decafs etc.
Price- The prices of the coffee range depends on its exotic tastes. Usually the prices are kept
high but the customers can avail most of the stock at the times of company's sales period as that
time the offers are really valuable.
Place- Cafepod products are widely available at large online retail stores and in various
supermarkets. The company also sells online through its own website.
Promotion- The company pays a good attention to its promotions online. It has various and new
advertisements coming on its websites in fixed intervals.
Financial projection
Continuing Expenses
Patent & Logo $100
Web development $1000
Licence $4200
Insurance $2500
Application contract $4000
Legal $1700
Software of the Event management $7000
Others $1000
Total expenses $21500
CONCLUSION -
The report above has been able to address the growth strategy for the small company
Cofepod. Planning growth is very essential for the companies today in order to survive in the
market for the longer time period. The above report has discussed the competitive advantage and
the growth opportunities available to Cofepod company. Moreover, the report has also covered

the various funding sources that can help company to build strong financial base that in turn will
help in increasing and diversifying business. At last, the report has addressed exist and the
succession options for Cofepod company with a new business plan.

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