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

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