Planning for Growth in Kaffeine Cafe: Strategies and Recommendations

PLANNING
FOR
GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explanation of the basis of competitive advantage of ‘Kaffeine’................................................3
Porter's generic approach analysis-..............................................................................................4
SWOT analysis of Kaffeine-........................................................................................................5
Ans-off growth matrix of 'Kaffiene'.............................................................................................5
Evaluation of the financing growth and the sources of funding..................................................7
Succession and exit options available for the cafe.......................................................................8
Recommendations for the business..............................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Growth is a necessity for any business in particular. One of the major motives and
objectives of a business in particular is to grow. This can be done in many aspects. The growth
can be in terms of financial growth; the growth can also be in technological aspects or as
expansion of the business in particular. The report basically gives description regarding the café
or a coffee shop named ‘Kaffeine’. The café is basically located in London. The report provides
explanation regarding the business on the basis of competitive advantage. The report also gives a
description regarding the opportunities and the options that the business in particular has for
growth purposes. The report in particular includes the evaluation of the financing growth of the
business and the sources of funding too. Further, the business also discusses regarding the exit
options or the succession options for the business. The report also evaluates the pros and the cons
of the options on the working of the business in particular. Also, the report gives
recommendations for the growth of the business. Further, the business plan for ‘Kaffeine’ is also
developed in the report below.
MAIN BODY
Explanation of the basis of competitive advantage of ‘Kaffeine’.
The SME’s whose full form is small and medium sized enterprises, are the businesses that
usually run on small- scale and are also the ones that plan to grow in the long run as a large
organization. ‘Kaffeine’ is a small business that basically sells coffee and the side sweet and
savoury eatables. This café is in London. The major aim of the café is to attract a large customer
base and enhance the knowledge of customers regarding coffee and the way they should
particularly be enjoyed. Also, the business aims at opening outlets in different areas of London
as well. The competitive advantage that the café has are;
Unique coffee products.
The types or the varieties of the coffee that are particularly sold by the business. The
coffee is not so common to be found and the quality of the products is also good. The staff that is
employed for the preparation of the coffee is also competent and the best ones. The quality
provided to the customers is superior in particular. The two major speciality coffees of the
business are Mocha java and Kona coffee. Both the coffees belong to very different places and
have diverse backgrounds as well. Mocha java coffee is from Yemen and Indonesia and the

Kona coffee is from Hawaii. Also, the workshops are conducted for giving knowledge to
customers about the products they sell.
The latest technological equipment.
The latest and he most advanced technologies are used by the café. Mainly for the
purposes of marketing and delivering their products to people or individuals who are not in the
area of the café. This is by accepting online orders within a particular geographical range or
width in particular.
Porter's generic approach analysis-
The porter's generic approach analysis helps company to evaluate the opportunities that
comes in its way while achieving goals of the company (Ali, and Anwar, 2021). Porter's 5 forces
analysis in the context of a small business named Kaffeine is as follows-
Cost leadership -
Kaffeine has always tried to make its product that are cost effective and can easily be
affordable by the company. The cost leadership theory focuses on two things that are as follows-
 Kaffeine can focus on decreasing prices of the products that company provides in the
market for increasing market share of the company.
 Kaffeine can also think of cutting its cost in the market by charging average prices of the
goods that is been charge by industry.
Both points above focuses on widening the consumer base in the market. The only
difference is that one point says to decrease price and other one depends upon the cost that the
Kaffeine occur while producing those goods. As company is new and does not have much
control over the supplies. Kaffeine can go for decreasing prices (Haque And et.al., 2021).
Differentiation strategy-
The aim of this strategy is to make products that are different from the products that are
available in the market. The strategy simply focuses on offering uniqueness in the products.
Kaffeine is already providing those products that has unique character be it in its taste and
flavours (Widuri and Sutanto, 2019).
Focus strategy-
This strategy of porter's help company to focus on particular target segment. Kaffeine
should focus on the adults whose age is between 15-30, as it has been seen that are more