Unit 42 – Planning for Growth: Business Plan Development for Kaffeine Company

Unit 42 – Planning for
Growth

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
LO1..................................................................................................................................................3
P1 Basis of competitive advantages for the business ..................................................................3
P2 Evaluating the opportunities for growth applying Ansoff's growth vector matrix ................6
LO2 .................................................................................................................................................8
P3 assessing the potential sources of funding available to businesses and discuss advantages
and disadvantages of each source ...............................................................................................8
LO3 ...............................................................................................................................................10
P4. Business plan development including financial information and strategic objectives for
business......................................................................................................................................10
LO4 ...............................................................................................................................................14
P5 Owners of the small business can exit by assessing the various ways and implication on the
option.........................................................................................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Growth planning is very important for any business, as it refers to the activity of business
that allow business owners to plan effectively and check growth in revenues of the company.
The present report will be based on Kaffeine which is a small cafe situated London, UK. The
cafe provides various type of quality foods and drinks to satisfy the needs of customers. The
present report will provide detailed information about basis of competitive advantages for the
business and also evaluate growth opportunities using relevant models and theories. In addition,
it will assess the various methods through which company can access funding and provide details
about when to use different types of funding. Plus, after that the case study is going to design a
business plan for growth that includes various points such as financial information, strategic
objectives. At last, various ways a small business owner can exit the business is covered in this
report.
LO1
P1 Basis of competitive advantages for the business
In today's business world where competition is very high, it is very important for every
business to plan about growth on regular basis so that they can achieve good market position.
With the help of planning for growth, the firm can able to achieve long term success and
maintain the reputation of business. Competitive advantage achieved through utilization of the
capabilities, resources and core competencies available to the company. It is very important for
business to be competitively more advanced and successful as compared to the other company.
This can be done having resources as availability of adequate resources such as amount of capital
makes it easy for business owner to run business smoothly. Using new and innovative
technology managers of the company can easily able to gain high competitive advantage as
compared to its competitors in the particular market (Ali and Anwar, 2021).
Core competencies
To be successful in the market, business owner needs to deliver unique value to its
customers. It is very important for manager of cafe to know how to integrate multiple
technologies by using various types of skills such as production skills. It is also very essential for
company to use high end technology in business processes and offer high quality services. With

the help of technology and new strategies the company can achieve high competitive advantages
in the market. The reason behind that is it is the main core competencies of cafe that helps it in
gaining good market position.
Capabilities
It means the abilities that any company needs to have for executing its methods, systems
as well as strategies. In order to implement business plan and methods, it is very important for
the company to have skilled workforce and people who are having good knowledge. It is very
important for people to have proper management of capabilities in the company that will help
manager to establish goals related to performance which is based on values. With the support of
skilled workforce, the manager of the organization is able to carry out business operations in a
smooth way as it helps them gain success (Ali and Anwar, 2021).
Resources
To start new business, one of the most important need which must have taken into
consideration is resources. With the help of adequate resources, company is able to achieve
success in the competitive world. The resources include financial, technological, human
resources and physical assets. The business owner must have adequate amount of capital with
them so that they can easily start up business. When the availability of amount of capital is their
for the company is makes it easy for owner to run their business operations and activities
effectively without any issues. Not only this, support of other resources is also very essential
such as technological resources. It includes new innovative technology like artificial intelligence
using this will help manager of the company in gaining good market position in the market and
high competitive advantages over their competitors.
Porter's generic strategies
This is one of the most popular tool which is used by company in order to know about
competitive advantages across the market. With the help of this method, the company is able to
determine the direction of company (Islami, Mustafa and Topuzovska Latkovikj, 2020). If
kaffiene company wants to achieve success then it can adopt one of these strategies.