Planning for Growth: Analysis and Strategies for CAFEPOD Cafe

This report discusses growth planning for CAFEPOD Cafe, including analysis of their outlook, financing options, and business plan. It explores strategies for evolution using Ansoff framework and potential funding sources such as commercial loans, angel investors, and venture capital. The report also covers the importance of governance and business summaries, as well as mission and vision statements.

Planning Of Growth

Table of Content.
Table of Content............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
P1 Analysing the growth outlook for CAFEPOD cafe through examining their rational
view..............................................................................................................................................1
P2 Measure the outlook for evolution by using Ansoff framework......................................3
M1 Screen out the figuring for advancement using analytical expectation.........................4
P3 Measure different likely sources of financing while yielding their drawbacks and
benefits........................................................................................................................................4
Commercial Loans : These are the most trusted source of finance which is addressable to
almost all. This is provided in exchange of any tangible offering on individuals.......................4
M2 Valuate potential sources of funding that cafe should use and provides with the
prove justification to it..............................................................................................................5
P4 Plan a business plan for growth which contains financial and tactics information.......5
M3 Create business plan for analyzing growth, guaranteed investment and suitable
possibility for accomplish objectives........................................................................................9
P4 Evaluate different progression or exit options for a small business by state welfare
and disadvantage of each..........................................................................................................9
M4 Analyst the best option for the cafe.................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Plan is primarily the unit of various task performed to acquire the desired result. Growth
planning is the plan of action which is develop by the business owners or the organisation
authorities to set list of targets that need to be fulfilled by them to reach up to great heights.
These plans are developed by managing department to import good income for the
administration as a reciprocate. These plans are made after analysing the organisation weakness,
capability, warning that might interfere the business and the opportunity which might help the
organization to discriminate themselves from their competitors (Pratiwi and et. al., 2019). These
growth plans are most helpful for the organisation which have low resource availability, through
this they can get to know the sectors they need to work more. These layouts in growth planning
provide their employs a motivation as they will feel their importance, also motivate them to
upgrade their skills and to work on their weakness. Their motivation of improvement also
influence the organization growth. In this business report the discourse will be on the CAFEPOD
situated in UK. They are offering various types of coffee to their potential customers with the use
of 3 type of coffee beans. and now has changed into the leading cafe in UK. In contest of the
cafe, will evaluate the small business growth graph through ansoff matrix growth vector. Also
evaluated the thought of drawbacks, welfare, and initiatives that should be taken by cafe owner
to expand their business (Singh and Srivastava, 2018).
MAIN BODY
P1 Analysing the growth outlook for CAFEPOD cafe through examining their rational
view
These minor business organizations have to expand out their companies growth or
revenue returning by analysing the alteration need to be made for better results. These conceptual
building is essential for these cafe owners to maintain their hold in market and to make their
customers satisfy with the service or product. Various plan and assessments that should be
studied by the organisation has been discussed below:
PESTLE ANALYSIS : These are the various external elements of the organisation that
might effect the organisation decision-making or their growth potential. These external aspects
might influence the company internal growth and wise versa. These studies help the organisation
in controlling the associated threats and explore more opportunities. The result of these studies
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act as a aid for the employs to take the executable decisions (Ulubeyli, and Kazanci, 2018).
These are the essential factors that every organisation need to be considered which includes :
 Political : These are the report for examining how can government policies affects the
cafe business. This includes various tax or trade regulations by the government which
will increase the price of the service or products offers by the cafe. This might occur
when political bodies don't allow its population to consume the new advanced processed
foods. However, these measures are taken by the UK political or governing body to
ensure their population health safety (Mohamad and Asfour, 2020).
 Economic : These are the factors which effect the employs working hours. This is seen
because alteration is seen in import or export rate might occur due to any natural event.
This factor is responsible for influencing the expenditure of living in population.
 Social factor : These studies are performed on the basis of deviation seen in between the
population by culture or belief they follow, individual behaviours and it also includes
individual Attitude towards there career and health. These are the factors where
organization need to focused more as they have to customised their meals and menu
according to demand of locals.
 Technological : These factor includes the innovation or the advancement in the
technology. Change in technology will impact the customer negatively as it might
increase the cost accounting according to modification tax will be included.
 Legal : These are the aspects which includes the important and exports laws, employment
law, fair salary laws and so on. These are the measures that CAFEPOD need to address
while making changes as they are mandatory to maintain the hygiene in cafe surrounding.
 Environment: These measures are taken to evident that cafe processing actions don't
harm the environment in any way. This can be done through cafe by ensuring that
resources shouldn't get waste and they should avoid using plastics (Costantino and et. al.,
2019).
POSTERS GENERIC MODEL- These are the strategies that company uses to vantage
the agonistic assets. It is symbolise as a minute factors that may alter the administration
expansion, these includes:
 Cost position: Through this company analyse the overall market cost for the product or
service they are providing. They focus on proving low cost meals to the customers but
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with the best quality. CAFEPOD centred in providing the innovated home style foods to
the employers (Rozmi, 2018).
 Directional approach : This tactics focus towards particular sector as through it they can
plan their meals and dishes according to particular customers. For ex: the focus of UK
cafe was about to provide the youngsters the home like meals,
 Specialization approach : This is the differential approach used by the cafe to make
their service or products identical from their competitors. Focus of CAFEPOD is to
provide their customers different meal choice in morning and evening. Additionally they
also provide different squatting alternative according to meal type customer prefer
(Paramalingam and et. al., 2020).
Boston Consulting Group Matrix – It is the business component that is used to study the
company long term profit or loss studies. It consist of 4 major elements :
 Question Mark : CAFEPOD offers different coffees naming single state, cost rica, swiss
water decaf and many more. These are the assorted names which attracts customers many
more but its a authentic brand so the cost of coffee is high.
 Star : CAFEPOD have started as a local brand but it is a commercialised cafe in UK
which serves different menu in day and night time to evoke their customers (Devi and et.
al.,2022).
 Dog : These are the changes when suddenly the UK population avoid going to the cafe
due to alteration seen in their quality or reputation.
 Cash cow : CAFEPOD is the wining the sustainable cafe mark from last last 5 years
which directly responsible for their improved market share but this can be obstruct if
Starbucks or costa coffee open their outlet in same location (Mazouni, 2018).
P2 Measure the outlook for evolution by using Ansoff framework
Ansoff matrix is also illustrate as the product-market matrix, through it organisation appraise or
analyse the upcoming opportunities and range at which it will benefit the business revenue or
profits. It comprehends the following :
 Market incursion : This is advancement or the innovation that company need to
incorporate for better results. It includes the cafe can reduce their order processing
instance by incorporating surplus workforce.
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 Market variation : Cafe might supply the different or innovated meals according to
customers preferences (Lermen and et. al., 2018).
 Product evolution : CAFEPOD should centrer in proving more meals lines or width.
This can be done by integrating the scheme of providing coffee in three different sizes
and it can also be done by providing the commencement of half meal or full meal.
 Outlet devolution : since the CAFEPOD is getting a good hype due to its best
sustainability feature, owners can consider to expand the cafe in various places
worldwide (Baškarada and Hanlon, 2018).
M1 Screen out the figuring for advancement using analytical expectation
These strategies are the adequate devolution plan which embrace as beneficial to any
organization. It provides the analytical data through which organization can analyse about the
cafe market share and the possibility of growth. Through this the organization can make plan to
stay relevant according to the market needs. These tactics will help the CAFEPOD to gather
revenue and maintains their brand image to (Esteve-Pérez, Gutiérrez-Romero, and Mascaraque-
Ramírez, 2021).
P3 Measure different likely sources of financing while yielding their drawbacks and
benefits
Commercial Loans : These are the most trusted source of finance which is addressable to
almost all. This is provided in exchange of any tangible offering on individuals.
 Advantage – It provides the individual as ground to grow. Additional to loan bank also
supports individual while addressing excess profit. Interest tax are minimum.
 Disadvantage - A hatful of paper work is need to be prepared to make bank allot the
loan. Monthly repayments need to be provided.
1. Angel financier : They are the one who provides a capital to the business in return they
ask for the ownership.
 Advantage – No need to provide personnel assets as a grantee and no need to provide the
interest.
 Disadvantage – One need to obey the financer orders.
2. Venture capital – This is the financing capital that the financer provides basically to the
start-up companies.
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 Advantage – No monthly payments need to be submit, these financer assess company
with all possible support to make company reach to great heights. They can give strong
monitoring support.
 Disadvantage – This lead to chance of conflict between the investor and the operator.
Every time employers need to seek permission from the investors (Gawade and Rajguru,
2022).
To avail the growth of CAFEPOD, certain direction used are commercial loan which
provides interest to its potential member with extra support and low interest. Other resource used
is venture capital and angel investment. CAFEPOD adopted the commercial loan source as their
funding iniquity as it provides them with less interest and better opportunity (Baruno and et. al.,
2022). It has been analyzed that CAFEPOD should choose the commercial loans as their
financial source as it will support the cafe to execute their goal more wisely. Only benefit
associated with the commercial loans are business loans for star-ups are provided in fewer
interest with additional profit too.
M2 Valuate potential sources of funding that cafe should use and provides with the prove
justification to it.
CAFEPOD requires the funding to consider their business into large hype which can be
occurred either managing the one more outlet or by integrating the new innovation in the cafes
menu according to customer taste. They have utilized the commercial loan approach as it will
access them with a revenue support to grow their business. It is the easily way to get the fund
with low interest and the due date of the loan payments also favorable which aca be easily
managed by nay of the business owner.
P4 Plan a business plan for growth which contains financial and tactics information.
Commercial business plan is basically symbolize the wide portion of companies goals.
As this plan of action is used to represent the proper company objectives which includes
companies vision and mission accordingly. This plan of action also defines different tactics that
the employers need to take while yielding the organization into great progression. These plans
are considered as a path guider which supports them by providing various strategies in favor of
development. A business plan of action act as a resource in carry off organization mission,
achievements or lacking factors through distinctly understanding the objective of company and
its financial background. Through knowing about the financial perceptive, one can decide that on
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what figure the improvements can be done or is their any need to outsource the financial support
to expand business. CAFEPOD was started as a startup before 2016, but it has been expanded as
also rated among top 20 fully sustainable enterprise among UK till 2020. Various approaches
that should be covered in plan includes overview, important plans, marketing mix of cafe, and
even the different initiatives that need to be taken by employs that should impact cafe on positive
manner (Oxford. 2019). The CAFEPOD has altered their cafe by incorporating new advance
technologies which will attract more customers. It will also help company to earn great revenues
in return as the advancements will be processed according to the new trend. Bussinesss plan
consist of :
 Governance summary – Through this CAFEPODs can provide the optimistic
conceptual behind business. It consist of mission behind the cafe is basically to provide
the home based meals with certain innovations. And there more direction was towards the
welfare of their potent customers.
 Business sum-up - It signifies that cafe was started 21 years ago and it has been
recognized in top 20 sustainable outlets whose focus is towards providing local and
organic food with authenticate quality.
 Mission and Vision - Mission of the company is to provide the authenticate home based
food according to customers demand and vision of CAFEPOD is to ensure the health and
safety of their potential clients by providing quality based service and meals (Galvão,
2018).
 Sales and marketing - To attract their customers the strategy that roadsters prefer is they
provide different menu during the day time and night time which increase the interest in
customers to visit. Additionally, they have Incorporated 2 different sitting areas
depending upon the meals they choose. Namely the main dinning room and marble
counter.
Strategical intent of development : It is the layout that is designed to increase the
efficiency of its employers. These tactics are essential to be authenticated as they act a official
document fo0r the organization. These are the supportive help that employers can get for any
further tragedy or misfortune that company might face. These plan of action act advantageous for
the CAFEPODs as it will work as a aid to grow their business. It will also make plans to
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promote, that will automatically hold out the brand image and socialize the local population to
try the authentic conception in meals and coffee which will give them home like vibes.
Marketing mix : It is a unit of measurement of various strategies that the administration
or head of the company utilizes to encourage its customers or progress their brand value. This
concept is used in business by organization to earn maximal earnings from and also the service
or product provided should meet the customer demand. This is basically the survey valuation
done by organization to understand their potential customers expectations. It helps the marketer
to realize the significance of cafe meals and services to its customers.
Product is the good or the services that company offers to its customers. Here the goods
which means the meals or coffee that customer demand for are symbolize as a tangible product.
Service is the processing time or the kindness of staff in cafe is symbolize as intangible products.
Price is the worth that the customers pay in return for the meals and service he got in cafe
by the CAFEPOD staff. It is the value that will decide the growth of cafe. Pricing decision is
need to be taken after determining the competitors strategies as this will impact the growth of
cafe (Smith, 2020).
Place is the method or different operational approaches through which cafe or meals are
provided to customers. CAFEPOD or the action through with the products or services are
distributed to its customers. It signifies the availability of their products in different geographical
areas. CAFEPOD delivers their different coffee beans bundle online through their websites. This
also includes the different delivering channel where cafe has registered themselves. CAFEPOD
might start partnership with various delivering tract in UK which are just eat, food hub and many
more.
Promotion is the factor through which the company qualify their brand value to
population while providing the significance of the product or service they are providing.
Promotion covers media strategy, advertisement of different innovation they do and overall
public relations strategy for encourage more population to visit their cafe. Promotion strategy
CAFEPOD used is they innovate their menu in day and evening time.
Financial Budget
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M3 Create business plan for analyzing growth, guaranteed investment and suitable
possibility for accomplish objectives.
CAFEPODs should incorporate a proper business plan to ensure that they reach their
desired objectives. Tough the founders have started the cafe as a local cafe as now its one of
most popular cafe in that locality. Founders belief was to provide the meal that is comfortable for
customer to eat more than one time in a week. Business plan of cafe should consist of all basic
beliefs that they had during the time they started. Business plan must consist of more such
innovation that favors customers health and demand. Main aim of them is to earn more revenue
and their cafe image.
P4 Evaluate different progression or exit options for a small business by state welfare and
disadvantage of each.
It is the strategic plan used by small business commodities to trade out their company to
other respective individuals. This can be either achieved by selling their company to other
company owners, or outsourcing the shares for the company and this can also be done by finding
investors. This is the situation usually occurs when beginner admires to quit and with something
then they deliver their hold in company in hands of other employs or any new investor. These
plans benefits as through them effective leadership can be owned because new leader or manager
will have post data of how companies run. CAFEPOD has their succession and exit plan both as
they will help them further for any unfortunate condition.
Succession is the business planning prepare to benefit the existing employs of the
organization. These are made to ensure that business should run smoothly without any disruption
occur if anyone leave. The aim behind these planning is to ensure that customers must not suffer
due to internal misfortunes in company.
Dealership- This occurs when company owners grant permission to other company to
sell their goods or services with their brand name only. Here the legal documents are sign
between two parties.
 Advantage- Business elaboration will be more. Training to employs are provided by
owners it self. Brand awareness increses.
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 Disadvantage- Many restrictions are addressed to franchised party from the owners.
They need to follow each and every order on time.
Permit Licensing – It is a legal permission provided through different agreements either
to other organization to make same products while conforming the identical measures. Done by
issuing patent or copyrights.
 Advantage- Reduce the risk might be developed through competitors. Need to pay the
additional charges to other companies. Revenue stream increases.
 Disadvantage- If quality not maintained than brand values decreases, other can copy your
strategy.
Fusion – This occurs when two different cafes merged together to provide more efficient
service to their customers.
 Advantage- It provides excessive growth to the business and also this innovation will also
bring huge market share.
 Disadvantage- Both the cafes have different beliefs and vision, when combined together
their beliefs interrupt that can lead to lot of arguments.
To exit from the business owners can use 2 different strategies like
Dissolved – This usually occurs when businesses growth is almost negligible.
 Advantage- Simplest way to aboard the business.
 Disadvantage- Lot of revenue or assets used will be in danger (Karaki, 2022).
Selling – It is basically done by selling the overall enterprises to any other investor.
M4 Analyst the best option for the cafe.
Accordingly the succession plan will be more profitable for the CAFEPOD cafe as it will
help them to expand their business. Additionally, these strategy will support in promotion which
will increase market share. CAFEPOD should adopt the franchise options as it will increase their
gross revenue when customers attract. Additionally, they can expand its business with minimum
risk as there are another person who is handing the business at larger scale and aware about the
market environment of the country in which they are expanding its business.
CONCLUSION
From the above report it has been concluded that business plans are important for the
growth of company. Various models through which plans are made are marketing mix, BCG
matrix, pestle analysis and Ansoff growth vector matrix. These business plans work as a guide
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path for the business employers. Different financial supports that CAFEPOD can avail is
Commercials loans, angel investment and venture capital. Also emphasised about different
succession or exit plans that CAFEPOD can apply to alter their business expansions. Role of
bussines plans in taking organisation into great heights.
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