Planning for Growth: Analysis of Growth Opportunities and Funding Sources for Coffee Pod

This report analyzes growth opportunities and funding sources for Coffee Pod, a small coffee shop in the UK. It includes an analysis of key considerations for assessing growth opportunities, Ansoff's growth vector matrix, potential sources of funding, and a business plan with objectives.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
Analysis of key considerations for assessing growth opportunities............................................3
Gauging growth opportunities with the help of Ansoff's growth vector matrix..........................4
Discussing growth option for business with suitable framework................................................5
Critical assessment of pathways and growth options..................................................................6
LO2..................................................................................................................................................6
Potential source of funding available to business........................................................................6
Business plan for the organization with objectives.....................................................................8
assessment of exit and succession option for organization and benefits as well as limitation for
same...........................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Small business is usually get affected by various fundamental factors whereby suitable
planning is quite significant to accomplish growth and better outcomes in future. The current
report is concerned with Coffee Pod, it is small coffee shop in the area of UK (AKMAN, 2020).
It has vast product portfolio which tends to serve customer with multiple options to choose from.
In this report it would analyse future growth possibility of organization by applying suitable
framework such as Ansoff matrix. It is helpful to gain better understanding about introducing
new product or making business expansion strategy clear in new market. Furthermore, it will
reflect to different sources of funding available to business in order to make day to day business
operations in stabilized manner. Business plan of organization will highlight some crucial point
which drives the overall functioning process for company. Also, it will discuss exit and
succession option for business which would be clearly stating about appropriate strategy for
business to make their performance managed in market.
MAIN BODY
LO1
Analysis of key considerations for assessing growth opportunities
It is mandatory for business to maintain positioning with the help of developing
competitive advantage. This would enable to generate good return in business. Coffee Pod has
chance to gain better positioning in respective marketplace whereby it can be done through
following suitable marketing approach.
Competitive advantage –
On the basis of comparison with competitive forces business can serve effective practices by
offering cheaper and better price which will enhance the chance to gain competitive advantage
(Hans, 2018). There are some key measures which can be followed by organization in order to
increase their sales ratio and generate higher amount of profits.
 Maximizing operational activities through best and innovative fundamentals
 Implementation of creativity and technology into business context that would increase
strong customer base
By following porter’s generic strategy competitive advantage of Coffee Pod can be analysied in
depth.

Cost leadership – in this strategy it explains firm would decide to sell its products in market
with low cost with an ability to conquer the market segments. By effectively utilizing this
strategy company will be able to get maximum profits by producing large units with average
quality and they will be able to satisfy customer needs.
Differentiation strategy – by using this strategy firm will be able to focus over manufacturing
unit of product which is higher in value and it easily create difference to each other with unique
identify. Also, adopting to this strategy requires extensive research of market to address right
quality of products being served to audience.
Focus strategy – It is performed by organization by adopting connectivity of differentiation and
cos leadership in which specific niche segments has certain demand which would be met in well
described terms. It is convenient to generate higher amount of profit by specific segment either
overall market customers.
Hence, from the above listed strategies differentiation is recommended for organization
to sell their new product effectively into several markets and areas of UK. It will be supportive
for firm to enhance their market share and initiate adequate approaches for future growth of
business.
Gauging growth opportunities with the help of Ansoff's growth vector matrix
Coffee Pod is one the most constituted and valuable coffee shop in UK, but there are some
managerial responsibilities which should be undertaken in order to identify growth opportunities.
It will be done effectively through considering Ansoff growth matrix and there are lucrative
elements that have been described in depth below:
market penetration -
In this strategy it generally concentrates over increasing the sales of business into existing market
of their existing products (Piao, 2018). It is done through enhancing market efforts or it can be
done by reducing the prices as rest of customers easily get attracted towards products and
services being offered.
Market development –
In this approach entity is concerned with selling up the existing products into new
marketplaces. This strategy is adopted at time when company demands to gain higher revenue in
new market and take global expansions. It is mandatory to have superoior management working
for this process in order to create better outcomes by working with efficiency.

Product development –
It is one of the systematic approach in which new products are introduced and sold into
existing marketplaces. It requires adequate investment over research and development activities
as such it prevents loss from being occurred and impacting the future growth of business. while
products are brought into the market the estimated cost must be calculated so it does not result to
loss. There is higher demand of qualified and skilled workers in order to sell product in efficient
manner.
Diversification –
In this phase, it includes selling process for completely new products in new markets. It is
considered as one of the riskiest strategy in terms of expanding business into other regions.
Diversification performed by corporate can be aligned or unaligned depends over availability of
resource and desired goals they want to accomplish. It is salient for company to seek attention
towards existing firms in order to make their marketing approach placed in that manner to get the
productive results for those markets.
Thus, from all the above discussed approach the fundamental strategy for Coffee Pod would be
diversification as company have to generate suitable market analysis to sold their new products
into new markets. This would be helpful for generating higher amount of revenue and forming
up the valuable brand image around various other regions (Tenca, Croce and Ughetto, 2018).
Also, company must assure about utilization of technology as after selling and processing of
goods can be performed. The major suggestive part is to look after errors in order to minimize
them for conducting appropriate sales in that particular area.
Discussing growth option for business with suitable framework
Marketing analysis is tool which is used to analyse various fundamental aspects of
business. It is also known as competitive analysis framework. Business make efficient use of this
to gauge competitors in marketplaces. basically it assesses offerings, products, efforts and
strategies being followed by competitors in this competitive framework. There are some
lucrative elements which were used to:
Determining market shifts – In this phase it covered the analysis of rivalry on the basis of
systematic order whereby shift of market would be discovered by approach.
Targeting appropriate marketing strategies – By own marketing plan roadmap can be formed
by company to get in depth understanding of competitive working channels in market.

Preventing mistakes – The mistakes done by competitor can be helpful to avoid those mistakes
that will assist them to reduce the cost concerns.
Critical assessment of pathways and growth options
The pathways as well as succeeding options for business are stated below:
Market penetration - the existing capabilities and essential resources were mainly focused and
it is less risky strategy. By maintaining market share effectively promote more revenue
generation for company.
Product development – it was appropriate approach to satisfy the demand of customers and
enhancing their strength.
Market development – it is most suitable strategy for introducing new product in market but
market positioning of firm might be lost because of product failure in new marketplaces.
Diversification – It is riskiest strategy for business as product and market development included
in the strategy.
LO2
Potential source of funding available to business
To make business and its operations to be followed effectively it is significant to assess suitable
funding sources. In addition to this there are some components of funding providing accessibility
to business in order to conduct smooth functioning.
Bank loan –
It is convenient method to raise funds in markets, as financial institutions and banks provide loan
in order to grow market (Pan and et.al., 2019). Business can access to expansion while having
such large amount support.
Advantage
 Loan are easily provided against asset
 Interest rates are low and fixed as compared to other competitive bank service providers
Disadvantage
 Organization essentially have to pay for collateral security which impacts over business
profitability
 Loan are not flexible as paper work is required to access amount of loan from bank
Crowd funding –

It is type of financial source in which capita is collected from bunch of people in order to start
with new innovative business activity into new market. It serves business with availability of
finance from market by effectively using social media. The pros and cons of crowd funding can
be stated as:
Advantage
 It is rapid source of funding for small organization without costing any additional fee
 Effective feedback serves business with chance to enhance business practice which can
be collected from people on the basis of getting ideas from them for funding
Disadvantage
 It requires majority of efforts for successful measures
 Non protection funding thought by copyright or patent might create problematic concern
for stolen of business concept
Peer to peer lending – in this type of funding organization used to attain loan by other people
and companies to cut off bank role as middleman. It is also known as social and crowd lending
which usually aids to get better finance from markets.
Advantage
 Interest rates are minimum as compare to other bank
 It serves company with an ability to do expansion and innovative practices in market
places
Disadvantage
 The capital of organization seems to be appear at risk without any surety about company
profits
 Higher risk of credit as borrower obtains bank loan
Angel investor – they are the ones with higher net worth and it is used to serve financial
assistance to start up small business or organization (Olmos and et.al., 2020). such investors are
found by family and friends and it further helps the company to get more valuable sources for
suitable expansion in market.
Advantage
 It helps to form decision making quickly having better investments
 Collateral is not required to take fund
Disadvantage

 It is not appropriate for large fund
 It impacts over large business whereby no major amount is shared
Hence, from the above aspects it can be clearly stated that the adequate source of funding for
business is bank loan as it serves company to acquire suitable financial sources to continue
business operations (Chirico and et.al., 2020). Bank loans are most reliable and safe as company
required to ensure that there are enough revenue generations whereby amount for interest can be
repaid in specific duration. Company can access for long and short term loan which depends on
their circumstances.
LO3
Business plan for the organization with objectives
Background information of company
The aim of this business plan is to analyse prominent aspects of organization like Coffee Pod. It
will be covering up decisive aspect aligned with in depth market analysis and respective industry
in which business operates (Gumel, 2019). Moreover, financial planning will be covered in order
to serve with rough idea about expenditures and market projection assist them for conducting
appropriate planning.
Overview
Business concept of Coffee Pod
The concept of business is to drive the effective performance to accomplish vision statement by
particular time period with the help of technologies and some other experiments.
Aim
To provide target audience with favourable quality practices in order to formulate customer
retention approach as it is topmost priority of organization.
Objective
The objectives of Coffee Pod are:
 To make customer retention
 To cater quality service for customers
 To conquer valuable image in respective industry
Marketing mix of Coffee Pod
Product strategy –

The product portfolio of organization contains several options into their context, and serves
customers to select over. By maintain appropriate product in their menu will grow the chance for
business profitability and to form better relations with bunch of customers in vast comparison
with various other competitive forces.
Price strategy –
Price scheming is bit essential for business to cope up with several aspects related to profits.
Providing customers will affordable price range tends to increase their attraction and satisfaction
from services. Forming up effective pricing also creates differentiation from rivalry forces.
Place strategy –
Placing product through expansion makes business to deal with new innovative culture and
attitudes. Thus, it is crucial for business to adequately set up business in places with affordable
pricing. It would assist to gain opportunity for developing customer base.
Promotion strategy –
The promotion strategy is mandatory for business to advertise its products and other offers to
interact with customers (Morison, 2020). Advertising can be performed in many ways such as
social media, websites, digital marketing, direct marketing and a lot more. Coffee Pod has
immense connectivity over online platforms through which they can assess their advertiing
practices to gain competitive advantage.
Marketing analysis for Coffee Pod
SWOT analysis
Strengths – The strengthening aspect of business is having strong presence in the areas of UK.
People love to visit place to conduct their meeting or hangout as they can form collaboration
with numerous people to increase their customer base.
Weakness – Having inadequate market knowledge is the weakness of Coffee Pod due to which
business is unable to maintain suitable expansion practices. Forming up marketing analysis is bit
essential to deal with challenging measures easily.
Opportunities – There are some strong opportunities for company to get in touch with target
audience and attract more people to get pros from Coffee Pod (Sehgal and et.al., 2022). This will
automatically reflect to generate better image and higher amount of market share.
Threats -

There are several competitors in similar marketplace who create negative impact on business
operations. They might create strong competition on the basis of catering them with offers and
discounts which would affect the sales ratio of Coffee Pod.
Porters five forces –
Bargaining power of consumer – In this phase, bargain power of customers would be higher as
they have multiple options to switch to other coffee shops. This happens when they are not
served with better offers and discounts and further they easily shift other options which forms
out negative impact on the business performance.
Bargain power of supplier – The bargaining power of supplier can be lower in terms as
business have chance to form deals with other suppliers in respective areas.
Threat of substitute – It falls into lower extent as majority of people choose to go out at existing
places. Coffee Pod has major advantage in this concerns which clearly specifies organization has
ability to manage strong customer base as catering great amount of valuable products and
services for them.
Competitive forces – The competition in food and beverage industry is higher as such in areas of
UK as well. People look further to get quality and affordable products in their context, and such
services can be easily favoured to them by various other competitive forces.
Threat of new entrant – New person in the market can create negative impact on business with
the help of conducting suitable marketing tactics and promotional activities as well (Phadermrod,
Crowder and Wills, 2019). It brings out negative impact on the overall performance of business.
Thus, following appropriate marketing strategy and developing strong customer base is quite
significant for Coffee Pod in order to minimize the impact on their performance.
Operational planning – It consist all the activities which is generally utilized for outline the task
and better plans. In addition to this company must be clear with their technological aspects as
well as financial resources to conduct systematic development.
Resource planning – In the process of managing small business there are minimum amount of
resources required. It is most decisive process to make appropriate use of resources which will
help them to manage sustainable concerns in their existing marketplaces. All resources for
comopany is aligned with food preparing items which is mandatory to have in day top day
business operations.

Stakeholders – The key stakeholders of business have major role in making the business
operations more specific and clear. Stakeholders included in the organizational activities are
customers, suppliers, manufacturers, local community, employees etc.
Time frame: The time frame depicts the new thing in the company is as described below:
Activities Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Week 10
Researching
for new
product
Scheming
Vision for
company
Designing
Mission
Formulating
objectives
Setting up
goals
Key
Stakeholder
s
Sources for
funding
Forming up
operational
plan
Resources
need to

bring new
product
Technology
requirement
s
Risk factor
Preparing
marketing
plan
LO4
assessment of exit and succession option for organization and benefits as well as limitation for
same
Exit and succession options refers to the ability which is generally adopted by business in
circumstances while going through some financial issues and challenges. Adopting to these
options assist to move further in new phase of business rather than closure. There are some
following options which is adoptive through small business and it helps them to make their
business operations clear and specific.
Selling up the business – While selling up the business to others aids in clearing all the amount
of debts and liabilities acquired through business as being bankrupt nature wise (Cornaggia,
Wolfe and Yoo, 2018). The pros and cons for the same can be stated as:
advantage -
 it is one of the rapid method to pay all the debt as well as liabilities of business easily.
 It assists to settle down all the disputes and remunerative for all obligation
 it is termed as rapid way of growing money.
Disadvantage -
 selling up the business direct towards higher amount of legal costs.
 The rapid methodology creates difficulty to sell and generate adequate value in short
period of time.

Acquisition and mergers – in the context of exit and succession options it aims at clearly
describing all merging and partnership with other business that aids in suitable access to various
resources and some useful assets. Also, it mainly focusses towards negotiating in accordance
with other business through acquisition and merging with working together. The merits and
demerits for the same are listed below:
pros -
 it is convenient for improving the business opportunities in terms with innovative and
huge market share to favour new customers in marketplaces.
 It helps in maximizing capacity to dispense products and services systematically.
Cons -
 the opportunities could be in loss because of paying money to manage business together.
 It enhances the legal cost as well as obligations in the business procedures.
Passing up the succession in the family – by passing this succession in family favours to pass
the ownership, accountability, roles and some proficient resources with assets. It is provided to
the member of family who will be going to operate all functions. It is usually performed in case
when person is being retired or demand to sustain its business. There are some merits and
demerits for same which is described below:
merit -
 It cut off the expenditures with the help of preventing family member to sustain into such
dynamic marketplace.
 It is salubrious for securing the overall business.
Cons -
 it results into chances of facing loss and multiple challenges in the case of being operated
by new person.
Liquidating – liquidation is the part of business as it one of the main option adopted by person
for exiting activities from existing marketplaces. It includes selling all the assets of business and
paying up for all the liabilities by closure of business. The major advantage and disadvantage of
this could be described as:
merit -
 It is supportive to decrease the amount of pressure from creditors.
 There are no legal obligations while exiting the market.

 This sums up the insolvent business.
Demerit -
 Business face difficulty with less market share.
 It results in pressuring shareholders for paying dividend.
From above aspects it can be stated that acquisition and merging is the appropriate exit and
succession approaches of Coffee Pod. It drives the purpose to gain growth by acquiring and
merging practices with other business. Also, it assists to control and maintain affordable prices
and resources to be competitive while catering service into new marketplaces aligning with
customer attention. Merging and bidding the higher value can be performed extremely well
against individual and other buyer.
CONCLUSION
From the above report it has been analysed in depth about some of the specific measures that
highlights position of small organization in relevant industry. It has been figured out that
profitable firms have chance to maximize their profitability and gain increased market share.
There are types of funding discussed in this study which depicts how funds are arranged and
provided to business according to loan policies. Crowd funding and angle investors are
considered as two major sources of funding which assist business to conduct business continuity.
Crowd funding aids to hike funding for business without charging up any additional fee. Angle
investors is salient type which serves accessibility of free decisions for investments without
demanding up cost for security deposit. It can be stated that business can contrive opportunities
to introduce innovative goods within market as getting in touch with majority of customers.
Furthermore, business plan has covered all crucial factors of business that supports to develop
better future planning. Also, in this plan it has been discussed some relevant frameworks likely
to be termed as Ansoff growth matrix, SWOT analysis and Porter’s five force.

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