Planning for Growth: Analyzing Growth Opportunities and Funding Sources for Laynes Espresso

This report analyzes growth opportunities for Laynes Espresso using BCG and Ansoff Matrix, evaluates potential sources of funding, and provides a business plan for growth. It includes an evaluation of growth opportunities, analysis of potential funding sources, and justification for the adoption of an appropriate source of funding. The report also includes a business plan for growth and exit and succession options for the business.

PLANNING FOR
GROWTH

Table of Contents
PLANNING FOR GROWTH..........................................................................................................1
Introduction:.....................................................................................................................................3
Evaluation of growth opportunities using analytical framework in context to the company.3
Evaluation of the opportunities in accordance with the use of Ansoff Matrix.......................4
Analysis of the options of growth for the purpose of achieving competitive advantage.......5
Evaluation of the growth option and ways to negate risks ....................................................6
Analysis of the potential sources of funding available to businesses and discuss benefits
and drawbacks of each source.............................................................................................6
Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context.............................................................8
Critical evaluate key sources of funding with justified argument for the adoption of a
particular source or combination of sources, based on organisational needs.........................8
Business plan for growth that involves financial information along with strategic goals for
carrying business....................................................................................................................9
Evaluate a coherent and in-depth business plan that show knowledge and understanding of
how to formulate...................................................................................................................11
Assess exit and succession options for business examining their benefits and drawbacks
..............................................................................................................................................11
Comparing and differentiate various exit and succession plans..........................................14
Critically assess exit and succession plans for suitable course of action.............................14
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
Books & Journal..................................................................................................................15

Introduction:
Planning for growth can be defined as an important as well as essential component of a
business organization. The major reason behind that is it consists of a growth plan that records
all the goals and objectives of the business in a systematic manner. A growth plan plays an
important role in achieving the ambitions of the business so that the organization cam achieve
success in long run. In consideration to all the small and medium organizations, a growth and
expansion as a planning for growth will the help the concerned company to bring high level of
efficiency in its workings. In context to this Laynes Espresso has been taken into consideration
which is one the popular small and medium coffee shop in United Kingdom. In this report, all
the major elements like the analytical frameworks, critical analysis of sources of funding along
with the business plan is elaborated in the report.
Evaluation of growth opportunities using analytical framework in context to the company.
BCG Matrix: It can be defined as a strategic analytical framework that helps an
organization to to analyse the position of the strategic business unite and its relative position in
the market among the competitors. This matrix maajorly conisists of 4 components namely,
dogs, cash cows, stars and question marks (Yu, 2018). This matrix specifically helps in the long
term planning of the company's growth opportunities in order to take the decisions regarding
continuing or discontinuing the product . Therefore, the BCG Matrix of Laynes Espresso is
mentioned below:
Dog: this category basically includes those companies which are having a very weak and poor
share in the competitive market. The growth share is also very low as compared to the other
segments of the matrix. The companies in this section do not have the capacity to generate the
adequate amount of funds and also not require any kind of huge financial investment. In context
to Laynes Espresso, the management of the company should try to eliminate the whole coffee
bean product line from its offerings. The reason behind that is this section has provided least
profits as compared top other prof\ducts in the product line. This will ultimately help the
company to save costs as well as an opportunity to design and develop a new and profitable
market in the most effective manner.
Cash Cows: This category consists of those products ad services that are having a huge market
share but is having a slow growth in context to the business environment (Fusarelli, Fusarelli and

Riddick, 2018). Although, this section is having a low capcity of investing but it still have the
ability to generate cash for the businesss. In relation to the company Laynes Espresso, the line of
ground coffee product offerings are conisdered as the cash cows because these products are
widely popular in market of coffee lovers. Also, the company has disclosed that it is major
seg,ent of the company which is contributing profits majorly.
Star: All the products and services of this category usually have the large market share and they
function is a very much rapid growing industry. This segment require huge investments also
contributes huge amount of profits in the organization. In context to Laynes Espresso, they are
having an effective line of innovative and futuristic approach towards the products. Therefore,
they are attracting customers with their unique and different products.
Question Mark: The products and services in this segment are the one which are having a low
market share in a very much effectively high growth industry. This segment requires huge
amount of investments that can help the company to grab a huge market share (Motieyan and
Mesgari, 2018). In context to Laynes Espresso, the company is majorly involved in offering the
coffee products only and is highly reluctant in coming up with different product line. Therefore,
the company should try to provide and sell some different product other than a beverage to attain
a huge market share. This will also help the company to avoid the situation of the cost
disadvantage which ultimately results into huge reductions in the profits.
Evaluation of the opportunities in accordance with the use of Ansoff Matrix.
It is a analytical tool which is used by the business organization that helps in providing a
direction towards the future aspect that should consider the risks and benefits which are majorly
implemented with the help of four strategies. This strategy will help the company in providing
the strategies that can ultimately help the company in providing a scope of growth and future
ventures. The major strategies in consideration to the Laynes Espresso are elaborated below:
Market penetration: In this type of strategy of the framework, company majorly focus on
selling the products and services in existing market only. The major aim of this strategy is to
increase the sales of the customer base so that the company can attain more amount of profits in
long run. In relation to Laynes Espresso, in order to penetrate its products in the market the
company should definitely concentrate on the online presence of the company on the digital
platforms. They should also focus on different ways to promote the products and services with

the help of different online campaigns, discounts and offers. This will help the company to grab
the competitive advantage over other amongst the competitors.
Product Development: In this strategy, the companies usually focus on introducing a new
product or product line in the existing market. The company can also improvise the existing
product in a new way that can helps it grow and expand (Sen, 2019). In context to Laynes
Espresso, the management of the organization needs to ficus on the research and development of
nee offerings that can help the company to have an dynamic approach towards attracting the
clients towards the company with its unique offerings.
Market Development: This section of the matrix consist of those products and services which
are majorly focussed to sell in the new market place. The entire focus of this strategy to to attract
a new market segment segment by offering the products and services in some other and new
market. In relation to Laynes Espresso, the management should plan to enter into new
geographical locations such as Australia , Italy and France. As compared to the other strategies
this trategy is comparatively risky because of the element of the uncertainty in the proposed plan
but it can definitely help the business in earning huge amount of profits in the long run along
with huge popularity and recognition.
Diversification: The last strategy of this matrix is diversification which is majorly focussed on
entering into a new market along with the new product. In this the business organization can
either come up with something new or acquire some another business that will help the company
to gain a competitive position in the marketplace. In context to Laynes Espresso, the
management should plan to enter into the tea market so that it can gather new customer base.
This will help the respective company to achieve high growth in the future.
Analysis of the options of growth for the purpose of achieving competitive advantage.
Growth is considered as an essential element of every business organization. The reason
behind that is it helps the organization to survive in the market in long run. In consideration to
Laynes Espresso, the company used 2 major analytical frameworks to reach out to a decision to
achieve a growth for the future aspect as well (Beer, 2019). It is observed that the company
should use its star product and venture with a new market so that the company can attract a new
customer base to achieve success. This will help the business to use its key resources along with
the core competitive advantage in order to execute its growth strategy in the most effective way.
It can also be considered that the business resources must be utilized in an optimized manner so

that the company can increasing its profit margins effectively by the use of all the consistent and
efficient skills. Moreover, the company should also focus on providing discounts and offers in
order to increase the customer engagement. Along with his, the company should also diversify
its line of product so that it can have competitive advantage over the other competitors.
Evaluation of the growth option and ways to negate risks .
It has been analysed critically that in order to attain growth in long run, Laynes Espresso
should try to enter into a new market along with its range of star products. This will effectively
help in creating an impact with the help of core competence of the business organization because
it will help in attaining the business objectives in a more efficient way. Also, in order to diversify
its portfolio, it should expand and diversify the line of products (Sifton, 2019). The company
may also face considerable challenges like competitors and their competitive advantage by using
its skill and core competence area in order to stay in the cut throat business environment. In order
to negate these risks, the company should try to price its product range aggressively that will
help in grabbing the target customers effectively as well as efficiently.
Analysis of the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
In the business organisation for the effective growth and development one of the most
important thing is funding, it aid the organisation effective growth and expansion ant the higher
level. Funding is the financial sources of the organisation which helps the organisation to
manage the each task and operations effectively, such as purchasing of the assets, employees
payroll, another then that funding increase the efficiency of day to day working. Source of the
finding is differentiated into the two categories internal and external sources of the finding
(Moazzez, and et. al., 2020).
External Sources of Funding: The financial aid which rice from the external world of
the organisation, with the help of other parties is consider as the external finding sources. These
types of the findings is can be raised by the debt or equity, which is including the kind of
borrowing and loans. Some key types of external finding sources are explain below.
 Bootstrapping: this is the type of the finding source which involves the personal savings
and higher profit which gather from the first sales. This is the best finding source

because this not effects the ownership and with the help of this owner receive 100%
profit of the organisation.
Benefits:
 This do not force the disillusion of ownership.
 This funding source is beneficial as it support the complete control of owner in
organisation.
Drawbacks:
 Organisation growth remain slow in that type of the funding process. Organisation connections to the valuable parties missing in this type of funding.
 Angel Investor: This is one of the most effective funding source, this involves the
collection of the financial aids from the angle investors. Angel investors are the private
investors who provide the financing support to the small business in exchange of the
ownership equity.
Benefits:
 This is the cheapest funding source because there is not any interest rate and this support
the business star ups.
 Angel investors provide the effective support in organisation decision making.
 In comparison to the debts financing that is less risky (Meister and Mauer, R., 2018).
Drawbacks:
 Owner can loss their control over the organisation due to the shared ownership with angle
investors.
 This increase the expectations and external interference.
Internal Source of Funding: This is the type of the funding sources collect by the help of
internal supportive of the company. This is highly use by the various business entities because
this do not impose the pressure of repayment. Below is the explanation of some internal funding
sources.
 Retained Earning: This is the type of the internal funding process which involves the
development of organisation profit with some special needs and goal; of the company.
Under this type of funding company profit is use as the funding for the working capital
which focus on higher level of achievements.

Benefits:
 This is effective funding source with the less external pressure, provide boost to the
company.
 This improve the liquidity position of the S&M business and their directors.
Drawbacks:
 This risk the organisation profit and additional margins, and this causes the less dividends
to shareholders. There is the higher possibility of the retained earning misuse, due to the chances of the
price manipulation (Rantsiou and et. al., 2018).
Selling assets : This is another internal funding method includes the selling of company assets,
this is also considerer as the liquidation method aims to the liquidity of the company. By aid of
this funding is can be raised for new business idea.
Benefits:
 This is the quick process of the funding.
 This helps in the rapid disposal of the assets.
Drawbacks:
 This may causes the tax repercussions while selling business assets.
 Improper value of the business assets (Bosworth, 2020).
Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context.
In context to the funding of the organisation there are the multiple sources which can be
use by the company, to grow among the market competitors. Such as more essentially in context
to the small scale business organisation funding play very important role for the improvement of
business efficiency and market status. The key sources of the funding s are angle investors,
bootstrapping, commercial finance and retained earning etc. In prospect to the Laynes Coffee
one of the most effective sours of funding is can be angles investors, as this is the best method
of rising the financial and resources support for the business. Main reason for the selection of
this funding source is that, this method posses less risk and this is the cheapest from of seed
capital (West, 2020).

Critical evaluate key sources of funding with justified argument for the adoption of a
particular source or combination of sources, based on organisational needs.
It has been critically evaluated that selection of the appropriate funding source is very
crucial part of the business management as it help to avoid the chances of financial crisis. In
context to the Laynes Coffee the key recommended finding source is angel investors, as this is
effective enough to rice and develop the business at different target market for the expansion,
with lower risk. This helps to increase the efficiency and profit of the organisation by providing
the additional support of the investors in the form of guidance. Is the organisation do not take
the decision for selection of this funding source then they will miss-out the guidelines and extra
resources support of the angle inventors.
Business plan for growth that involves financial information along with strategic goals for
carrying business.
Business plan is the important written document that disclose the details of the business
plan, goals objective and financing of the organisation to achieve that effectively.
Executive Summary: Laynes Espresso is one of the best coffee shop The company is
majorly focusing on serving the coffee to the coffee lovers at home along with the element of
creativity and passion which makes in popular in the competitive markets. In this business plan
organisation is focused about the addition of coffee flavours and new product such as Tea in the
menu to increase the organisation growth.
Vision of the company : Laynes Espresso vision is to become the world best premium coffee
brand.
Mission of the company: Laynes Espresso mission is to offer the customers with best flavours
of coffees and tea, which will help the organisation to reach their vision.
Opportunities for growth:
In context to the analysis and identification of the growth opportunity Ansoff matrix &
BCG matrix model's are used. On tha basis of which opportunities for Laynes Espresso growth
are new products line and expend the market in a new way. Also the company can use apart of its
profit in investing back into the business to achieve high level efficiency.
STP Analysis

Segmenting: Laynes Coffee organisation has segmented there market with the aim of
converting the potential customers into the loyal customers. Organisation is focusing on the
attraction of British population by launching the tea.
Targeting: Laynes Coffee organisation target is the majority of coffee segment of the age group
13 and above and the old age people.
Positioning: Laynes Coffee organisation is positioning the brand with the concept of highly
beneficial coffee and tea and giving the touch competition .
Smart Objectives:
 To make the application of 11% of the company earning in context to add more flavours
of the coffee in existing list.
 To add and launch the new product, Tea as prime product in context to the grab the
higher customers base.
 To increase the customer convenience by providing the products at customers doorsteps.
Financial Information
The financial information in the business plan cover the detail data of important
economical transactions of the organisation, this financial information data is manage by the
company in context to the estimation of the credit risk and profits.
Particular 31/12/18 ($) 31/12/19 ($) 31/12/20 ($)
Implementing
technology cost
14000 - -
Promotional
event
12000 8000 5000
Advertisement
cost
5000 7000 7000
Total Cost 31000 15000 12000

Monitoring and Controlling
This is one of the most important part of the business plan, due to which Laynes Coffee,
should control the business plan with effective monitoring, of the organisation activities in
context to the selected standards of the company. And managers have to make sure that their
outcome should match with the business objectives and is any error identify them manager
should implement corrective measures(Nakasu, Ono and Pothisiri, 2018).
Exit plan- This is basically use under the situation of higher loss or planning of the other
business in context to the Laynes Coffee one of the most appropriate exit strategy is liquidation.
As it helps to recover the many of business assets.
Contingency plan- This is involving the step by step guideline for what to do in case the event
has occurred and how to handle the situation. This is also including the information of key
personal such as the employees and suppliers in order to reach out them at need.
Risk analysis- It has been analysed that the risk in the competitive market are the innovative
growth of the existing competitor’s and in context to compete with them Laynes Coffee have to
maintain innovation.
Competitor analysis- This another most important part of the business plan which is involving
the identification and analysis of the competitor’s innovation, pricing and marketing strategies’
in order to maintain own efficiency in the market. Costa Coffee and the star bucks are the
competitors for the Laynes Coffee.
Evaluate a coherent and in-depth business plan that show knowledge and understanding of
how to formulate
A proper and detailed business plan plays an essential role in determining the actions
needed to be taken into consideration in order to achieve desired goals and objectives and lead
towards further growth. In case of Laynes Espresso, the company's unique and effective plan
will allows them to enhance their overall performance and gain competitive advantage. The
company is planning to enhance their 11% earning through adding new flavours to their existing
drink. This will help them to attract large number of customer's and gain competitive advantages.
Assess exit and succession options for business examining their benefits and drawbacks
The exist and succession options are the various methods available to the business in
order to determine and achieve desired exit and succession outcomes and achieve desired goals
and objectives effectively (Syssner, 2020). The succession planning includes the taking relevant

decisions in regards to who will lead the business in the future and will take the ownership.
Whereas the exit options include the options needed to be taken in order to desired exit
outcomes. In context to Laynes Espresso, the various exist and succession options available to
the business are mentioned below:
Succession options: It is refers to as essential strategy taken into consideration by the business
organisation in order to pass on the leadership role or the ownership of the company to an
employee or a group of employees. It is one of the essentials strategy used in order to determine
and develop new and potential leader as per the requirement. In context to Laynes Espresso, the
various succession option available to the company along with the advantage and disadvantage
are mentioned below:
Merger: One of the most important succession option that can be used by the organisation in
order to grow and enhance their performance is the merger option. This is refers to as one
company is merging into another in order to gain access to large market and enhancer their
customer base. In case of Laynes Espresso, this option will enable them to enhance their
performance in the marketplace through merging with company having strong brand image and
financial position in the marketplace. It will also allow them to gain competitive advantages in
the marketplace (Gunnand Var, 2020).
Advantage
This will allows the chosen company to enhance their financial resources leading to improve
their research and development.
Merging with company having strong brand image will allows the Laynes Espresso enhance
their competitiveness in the marketplace.
Disadvantage
 in case of difference among the vision and mission of both the merging company can
lead to conflict. It can also lead to large number of employees losing their jobs.
Acquisition: Another essentials succession option that can be taken into consideration by the
organisation in order to enhance their performance is the acquisition. Under this option one
company is being acquired by another financially strong company. In case of Laynes Espresso,
organisation can acquire other small business or their assets in order to expand their market

share. This will help them to boost their growth and potentially, also leading them to gain
competitive advantage in the marketplace (Baran, 2019).
Advantage
 after acquiring financially strong firm help the organisation to increase their market
power effectively. This will also help chosen organisation to easily enter into new market through reducing
entry barriers.
Disadvantage
 Both the acquiring firms having different aims and objectives can lead to conflict and
clashes among them
 It can also lead to putting pressure on the suppliers in case of they are not able to keep up
with the expansion.
Exit plan: It is an strategy used by the business enterprise to effectively achieve their desired
exit outcomes. It includes determining the organisation financial, legal and tax options along
with analysing the repercussions that is associated with leaving the business (Skrimizea, 2021).
In context to Laynes Espresso, this will help the organisation to ensure that their value is
maximized at the time of exit also the personal and business objective are fulfilled at the time of
exit. In case of the chosen company, the various exit plan that can be taken into consideration by
them along with their advantage and disadvantage are mentioned below:
Liquidation: It is refers to kind of option which enable the organisation to sell of their assets or
distribute them between creditors and shareholders of the company. It can be done at the time of
the exit or as soon as the possible. In context to Laynes Espresso, considering this option will
allow them to easily dissolve their business combined with possible profits(Cherryand Penny,
2019).
Advantage:
 It involves less time and efforts from the business end to dissolve their business It enable business to have information regarding the cash flow for maintaining their
business
Disadvantage
 under this the owners will not be able to get returns on their investment It can directly impact the relationship with employers, employees as well as customers.

Selling in open market: It refers to as kind of option that enables the organisation to sell their
business in the open market leading to other companies, investors can purchase their business. It
is considered to be the least risky plan for the organisation. In case of Laynes Espresso, can be
can be easy option to be considered by the company to sell of their business in open market as
they can directly connect with the seller.
Advantages
 In case of companies strong brand image and strong position will enable the owner to
receive huge profit. Also the goodwill, value and attractiveness will enable them to attract huge number of
buyers
Disadvantage
 It is considered to be long, tedious process to find the right buyer
 Not getting the right price for the company can be another disadvantage of this option.
Comparing and differentiate various exit and succession plans
There are various exit and succession option available to the business organisation in
order to grow or exit from the market effectively. In case of Laynes Espresso, the firm has
various succession option available to the company includes merger and acquisition options. The
merger option will allows the organisation to merge with the another strong entity. It will help
them to enhancement their research and development. Whereas the acquisition is the process of
acquiring other firms which will help them to reduce barriers while entering into new market.
But different aim and objectives of the companies can lead to creating clash and conflicts among
them. Also there are various exit options available to them such as liquidation which include
selling off their assets also other one is selling business in the open market . This allows them to
easily sell their business in the open market (Kemp, 2018).
Critically assess exit and succession plans for suitable course of action.
The various exit and succession options allows the business to determine and measure
various options and actions that can be considered in order to grow or achieve their desired exit
options. In case of Laynes Espresso, out of succession option available such as merger and
acquisition, the organisation can considered merger option this will help them to gain
competitive advantage and improve their performance. In case of exit option, out of exit options

such as liquidation and selling into the open market, the organisation can use open market option
as it will help to directly sell their business in the market and achieve desired goals.
Conclusion
From the above report, it has been concluded that proper planning helps the business
organisation to achieve their desired goals and objectives and perform better in the marketplace.
This report helps in analysing various consideration taken for growth opportunities by the
organisation along with determining opportunities for growth using Ansoff growth matrix. Also
the various potential source of funding available along with the proper business plan for their
further growth and development is also analysed in this report. And the various succession
option such as merger and acquisition and exist options such as liquidation and selling in the
open market is also analysed in this report.
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