Planing for Growth: Evaluating Growth Opportunities, Sources of Funds, and Business Plan for Dimello Coffee House

Planning for Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Analyse and justify the main considerations for evaluating growth opportunities. ........3
P2. Apply Ansoff Matrix to evaluate growth opportunities...................................................6
TASK 2............................................................................................................................................8
P3. Examine the potential sources of funds............................................................................8
TASK 3..........................................................................................................................................10
P4. Produce a business plan for growth................................................................................10
TASK 4..........................................................................................................................................17
P5. Identify exit or succession options for SME..................................................................17
CONCLUSION .............................................................................................................................18
REFERNCES:................................................................................................................................19
Books and Journals:..............................................................................................................19

INTRODUCTION
Small and medium size companies plays a very important role in the growth and
development of any economy. It is essential for the SME's to make an effective business plan
that will support in their growth and development. The business environment is consist with
several internal and external factors that are dynamic in nature and it is very fundamental for
such organisations to formulate plans and work accordingly to hit the targets in the most
effective way (Bruton, 2021). Moreover, governments also supports small-medium organisations
and take necessary steps in favour of them. In the following report, the company which is
considered is Dimello Coffee House. This company was founded in 2002 with headquarters in
UK. In the existing report, the discussion will be on growth opportunities that are existing in the
market. Ansoff matrix will be useful to find the growth opportunities. There are several sources
of funds that are available, so the evaluation of appropriate source is the also part of this report.
Moreover, a business plan is prepared for the Dimello Company. Lastly, there is an explanation
of different exit and succession options that are available to the business.
TASK 1
P1. Analyse and justify the main considerations for evaluating growth opportunities.
It is fundamental for the business to analyse the growth opportunities that are existing the
market. For the purpose, the Dimello Company is required to do a deep research about the
market in order to have the first mover benefit. With an addition to Dimello organisation, they
first need to analyse the available resources so they can expand business with the best use such
resources. Apart from this, the capabilities of workers are also vital to be considered, as the
capabilities of workers are vital for growth (Demazière, 2020). Core competence means the
employee's skills that support to gain competitive edge in the market. Hence, in case of Dimello
Coffee House, they hire and select the workers that have high skills competent enough to find the
demands of customers. With the help of such variables the respective organisation will be able to
examine the opportunities for growth effectively.
Porter's generic matrix:
This matrix helps organisations to find the position in competitive market. The
organisation must follow the strategy that would assist them to achieve growth and success. The
different strategies in addition to Dimello Company are discussed underneath:

 Cost leadership: It is the tactic that focuses on reducing the cost to achieve leadership in
the marketplace. In case of Dimello Company, they opt for this method to gain customers
loyalty and gets benefits over the established companies in the market. Cost leadership
strategy helps to improve customer base.
 Differentiation: This strategy focuses on to create product or service that have new
features in order to show differentiation in the market (Hoseinzadeh, 2020). It helps
companies such as Dimello to offer coffee which has unique taste and flavours and
simultaneously helps to gain competitive benefits.
 Focus: With the use of this strategy, companies tends to sharpens their focus on the
target market. In respect of this method, the organisation either focuses on gaining the
leadership in niche marketplace or to deliver unique and differentiated product in that
market.
Boston Consultancy Group Matrix:
BCG matrix is a useful method to identify the growth opportunities in the market. It is
helpful to critically analyse the portfolio and to make decisions regarding products and services
that must be continued or discontinued. In case of Dimello, the use of BCG matrix is as follows: