Planning for Growth: Key Considerations, Analysis, and Opportunities for Little Wonder Cafe

This report discusses the planning for growth of Little Wonder Cafe, including key considerations for evaluating growth opportunities, analysis using PESTLE, Porter's, and BCG matrix, and potential sources of funding. It also explores growth opportunities using Ansoff growth vector matrix.

Planning for Growth

Introduction
Business planning includes the valuation of all the creative ideas in a formal way. And it
gives the company or organisation and idea about summary of the business in its present state
and also in the big market. And this business plan function also involves the steps which are
followed just to improve the performance of the company, they are not just made to make money
to make some of the clear strategies in the business for the betterment of the processes in the
organisation . In this respective report of Little wonder cafe, the cafe authority are planning out
some of the ways for being the best among all the other cafes in London and the cafe is dealing
with the coffee and some of the drinks and food items as it is clear from the study that today's
generation is highly inclined towards the cafe and they are just getting crazy for visit the cafe and
have some good time with their special and loved ones(Zhao and et. al., 2022).
1.1 Analyse key considerations for evaluating growth opportunities.
It is important for the business and the organisation to keep a check on all the good
opportunities for the business that can lead to growth and expansion of the company and
evaluating all the possibilities and availability of option for the cafe business is the essential part
for the authority and they have to keep in mind that the things they are doing can be very harmful
for the company.
There are some of the major and important modals that are helpful to know the elements and the
executing strategies of the cafe business and they are as follows:
Pestle analysis is the modal which is used to determine all the internal and external factors of
the business of the cafe little wonder and it has some of the elementary factors which are
discussed below:
 POLITICAL FACTORS: This is the factor which includes the involvement of the
government authority in the cafe venture and this is clear that they include taxation
policies, trade restrictions and the political stability of the government body , tariffs. The
government can also increase some of the cooperation tax , it affects the business by
more of the value added tax on the products and it also leads to some of the alteration sin
the prices of the products(Zanganehshahraki and et. al., 2022).
 ECONOMIC FACTORS: This is the factor which is ascertain the amount of
competitiveness in the marketplace of all the cafe ventures and also identifies all the

rivalry issues in the environment of the working place and the location of the cafe. Some
of the factors that affect the business are exchange rates, wages rates, inflation rates, laws
, policies and interest rates also.
 SOCIAL FACTORS: These are the factors which do affect someone's life, health and
the wealth and it does involve religion, buying behaviour, education level and the family
background. And there are some of the elements that are acceptable in some country and
cannot be acceptable in different country.
 TECHNOLOGICAL FACTORS: These refer to the new and advanced technology in
the cafe business which are introduced for the enhancement of the cafe venture and the
factors have a great amount of effect on the business execution plans and also in the
marketplace and it is the fact that the cafe must be knowing about all the new
technological factors and hey must be reach at a point where they know how to respond
quickly in a given period of time.
 LEGAL FACTORS: These are the factors that determines some of the things that the
cafe venture can do or not do and his is the kind relationship between the government
body and the cafe business. There are some of the issues when government do make
some of the changes in the policies and the legislature then the working of the cafe is
affected. It is also about getting the licence for the cafe at a specific location, investing in
the business, the taxation process and the import export in the marketplace.
 ENVIRONMENTAL FACTORS: This factors involves some of the natural calamities
like the pollution, weather change, temperature change and due to these changes the
health of people do get affected. The diversification in the environment can have so many
impact on the cafe business as the consumers will tend to change their choices
accordingly(Witte and Hartmann, 2022).
Porter's analysis: This is the business analysing model which assist in determining and
interpreting the competitive forces of the marketplace. This is used to identify the corporal
strategy and also called by the name of competitive strategy. This modal was publicized after the
Harvard business school by the professor Michael E. porter.
And the five factors of the porters are as follows:
 Threat of new entrant: There are some of the new businesses that are coming in the
market and they pose to make the strong side of them in front of of little wonder cafe.

When there are some of the new rivals entering into the market, the cafe is going to face
some of the critical problems and the cafe is also going to suffer a lot of threats when
there are some strong competitors.
 Bargaining power of suppliers: It is the function of the suppliers when they try to
chance their prices and pressurise the cafe authority and they are at a point where they
ave no choice but agree with the suppliers prices and in this situation the buyers force is
low and they raise the price with the reduction in the quality of the raw material which is
gonna be provided to the cafe and also the availability of the products(van Schaick,
Colombo and Witsen, 2022).
 Bargaining power of buyers: It refers to the pressure that the consumers tend to make
on the cafe by raising their demand like getting them the good quality of food with low
prices and the better customer service through which the customers are highly satisfied
and the purchasers are also demanding a lot and the users want to get the best offers and
dealings at the minimum rates. This has medium force as the consumers are having low
switching cost and also have many options instead of the little wonder cafe coffee.
 Threat of the substitute product: It is about the availability of some of the new cafe in
comparison with the little wonder cafe and this has high force as there are some of the
later ad substitute products for the coffee and beverages of little wonder cafe. To deal
with this issue they can lower the price of coffee with same quality and then the customer
will get attracted easily to them. And when there are substitute of the coffee available.
And they have the moderate force.
 Rivalry among the existing players: It is about the rising competition in the market
which poses the high force on the cafe business as there are so much of the competition
in the market available and the cafe is at a place where they need to forecast all the
problems and be the one with the ideas and the creativity so that they can cope up with
the rivalry in the market. And also the cafe can focus on some of the new delivering
strategies so hat the people always prefer to order food from the little wonder cafe.
BCG matrix analysis:
 Dogs(or pets): products and services have low growth with small market share. It does
not generate a strong revenue for the company neither it requires a large investment to
keep the business running. In context to little wonder cafe, management should consider

eliminating shakes, burgers and some of its products which are consuming
organisational resources and haven't produce much revenue(Petersen and Ducros, eds.,
2022).
 Cash cows: It represents firms having slow growing rate while having a large market
share. It requires small investments but generates significant amount of revenue for an
enterprise which makes them essential for the firm. In case of this cafe, its well
established and successful products like cappuccino, frappé, monster shake serves as a
cash cow for them because it is majorly appreciated by its consumers and these products
are also the major contributor in their sales and revenue(Ahuja, Kumari and Somvanshi,
2022) .
 Stars: In this category, services and products have best market share and function in fast
growing and these products or services require lots of capital in order to keep its
performance but it also generates majority profits for the firm. In context of little wonder
cafe, they are generating great revenue from their some food segment like brownie,
sandwiches, pizza etc. These products have been star products for the firm as it has
allowed them to get large customer base.
 Question marks: In high growth industry market share of service and product of this
category have low market share and it require large amount of capital to maintain or
increase the market share. In case of this cafe cheese momos and the fries haven't been
capable to grip the market as they were expecting and because of these products their
sales volume and revenue have declined, which has negative impact on the financials of
the cafe(Pataki and Kitsiou, 2022).
1.2 Evaluate the opportunities for growth applying Ansoff growth vector matrix.
Ansoff matrix is a commodity and the advancement in the market which is used by the
cafe to analyze and implement their strategies for having the high position in the marketplace.
There are some of the important strategies that can be utilized to get growth in the cafe venture
and get expanded all over the UK and also analyze the jeopardy which is involved. It was
formulated by the well known scientist H. Igor Ansoff and it was viewed in the article of
Harvard review in 1957 and it has helped a lot of producers and executives to get to know the
risks that are present in the growth of the business. In this respective report of little wonder cafe
the four elements of Ansoff matrix are as follows:

 Market penetration: It is the measurement of how much the commodity is being used
by the customer compared to the total estimated market for that goods and services. It can
also be used in enhancing the plans that are used to raise the market share of a specific
commodity or service. The cafe is now promoting their cafe into the market so that
maximum number of people can reach out to them and their revenue income is generated
with a good speed and the people who are visiting the cafe they are also told by the cafe
authority that if they like the facilities, ambiance and the food then they can recommend
their cafe to their known and friends so that they can also visit the cafe and this is how
the cafe is generating good amount of profit(Manzano Gómez, 2022).
 Market development: It is the strategy in which theirs finding of new market sector for
the already present products and in this the purchasers are the aim of the cafe and they
are also in a position where they are going to target the new buyers of the cafe in the
respective market of UK.
 Product development: This is type of strategy explains that how the cafe is launching
new facilities and new food item in the already existing market and this is how they are
making their profits. The little wonder cafe have also made some changes like now they
are also on the online food applications and by this they have earned good amount
benefits.
 Diversification: In this kind of strategy there is the introduction of new product in a
totally new market and in this kind of function the cafe is going to require a lot of capital
for the investment as they are going to do the manufacturing for the totally new product
and it is also risky as there is tendency that the specific product do not get that much
preference among the customers present in the market.
1.3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
There are some of the sources from which the little wonder cafe can take funds from and
expand their business, some of the companies do use the retained earning for the execution plans
of the organization. Business raise the funds by borrowing debt in private from bank. Following
are the sources of funding in business :
 Government funding: these are the funds which are given by the government body and
they are authorized by them and it is the dealing between the individual and the

government. The foreign is not anticipated to repay the money but is require able to use
the funds from the allotment for their stated purpose, which typically serves some bigger
product. Because government grants are funded by tax dollars, they consider strict
agreement and screening the activity to guarantee the money is used. Having a
government grant is highly honored and often brings an individual or entity to the basic
cognitive process of other helper or sources of legal power(Mallor and et. al., 2022).
 Bank funding: It is the most common way of taking credit from the banks and involving
tat cash for the advancement and upgrade of the business, as on account of little Portland
bistro, they are utilizing the bank cash to improve their working on the lookout and raise
their income and large measure of money can help the bistro dare to make their business
smooth and happen with the bistro dealings and exchanges. These are the open value
supports that put distinctly in the financial area, banks are the dominating player in the
monetary administrations space, an enormous piece of the arrangement of these assets
contains banking stocks as it were.
 Own funds: These are the assets which are raised by own capital promotion oneself
saving of the individual and these assets are totally different from different assets and in
these sort of assets there is no commitment to reimburse them in a given time-frame .
They are extremely firm wellspring of assets as there is no authoritative obligation for the
bistro, it will be not difficult to have such supports where the bistro business don't have
any liability or tension.
 Angel investors: There are some high profile individuals who have a lot of money and
they are willing to invest their money when the individual is not having capital available
for the venture enhancement.
 Stage payments: As the name recommends that giving the installments in front of an
audience to making it simple for the clients to make a managing, while at the same time
further developing the income of the bistro. Whenever the client is attempting to purchase
new ware from the bistro, they ordinarily plan their bank for an advance or utilize the
significant money holds(Lohachab, 2022).

1.4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
There are some of the components of the business plans which clears the total business
plans and the strategies which help in the business to grow and expand and they are as follows:
Executive summary
This is the report which is shaped to sum up every one of the vital plans it should express
the motivation behind he report, feature the primary concerns of the report, and portray any
outcomes, end, or proposals from the report. Also the endeavor will give this report to the
financial backers and individuals who are associated with the endeavor so they can be in
information with the report about the endeavor and they are feeling somewhat uncertain
regarding the organization.
Company description
It is the overall outline of the organization as well as the business visionary , when
somebody peruses adjoin the depiction of the bistro the customer ought to be completely
disposed towards the endeavor and ought to get the reasonable picture of the endeavor and the
opening working of the café where the shopper will go to have the item(Gu, Sheng and Lei,
2022).
Product and services
It is absolutely on the dare to offer the types of assistance and items at a specific place of
time and the obligation of the division is to give the best nature of products to the client for the
fulfillment of the client. The items and administrations are the unmistakable resources that are
placed into the market for the procurement, consideration, or utilization, while an assistance is a
theoretical thing, which emerges from the result of at least one people.
Market analysis
It is the report which is quantitative and subjective appraisal of the market. It breaks
down the size of the market and measure of products in the market given by the organization, it
additionally analyzes the purchasing behavior of the clients, the competition in the commercial
center and the monetary climate as far as obstructions to passage and guideline. Likewise in the
event of this espresso adventure it fundamental to do advertise examination with the goal that
they can arrive thoughts and execution designs clear(Cyriac, 2022).
Strategy and implementation

It is the method involved with transforming plans into activities to arrive at an ideal
result. Predominantly its the specialty of finishing the work. The accomplishment of each
association lays on its powerlessness to carry out choices and execute key cycles proficiently,
actually and reliably. It is the interaction that puts plans and methodologies.
Organization and management team
It is the kind of interaction where there is administrator who is liable for setting up the
plans and techniques and maintain the business activities of an association along with its top
chief. The overseeing group can get together at whatever point they need to examine regarding
the organization or its activities. Also it thoroughly relies upon the group to meet week after
week or month to month contingent upon the business style and group.
Financial plan and projection
It is the outline of the monetary state of the organization and it is the monetary look
which is given to the organizations as it is the monetary conjecture or projection of future
additions, income and the costs brought about during the organization dealings and exchanges.
There are a portion of the means of making a monetary projection for the business and they are
fundamentals which should be followed and they are exceptionally fundamental piece of the
business(Cengiz, Görmüş and Oğuz, 2022).
Little Wonder cafe is offering coffee and food items of different nations and its statement of
financial requirements has been illustrated below:
Equipment’s = £ 2000.
Furniture = £ 1500.
Selling price per unit = £50.
Fixed cost = £ 1500.
Premises (will be acquired on rent)
Security deposit = £ 100.
Advance rent for 1 month = £ 100.
Estimated cost of sales = £10 per unit.
Variable cost = £3 per unit.

1.5 Assess exit or succession options for a small business explaining the benefits and drawback
of each option.
There are some of the plan for exiting the business and succession of business which
defines the advantages and disadvantages and they are discusses below:
 Continuing the legacy of the company: A portion of the organizations and
organizations are as yet running for proceeding with the family heritage and following
the progressive system of the business(Burke, 2022).
 Merge or become acquired by other business: There are what is going on where the
endeavor needs to blend the business with some other organization promotion share their
misfortunes and incomes and it is the benefit or the collaboration. A consolidation
commonly happens when one organization buys one more organization by buying a
specific measure of its stock. There is casting a ballot cycle between the investors that
whether or not to consolidate the business.
 Declare bankruptcy: At the point when the association or adventure can't pay the
monetary installment to its leasers, it documents for the insolvency.
 Management and employee buyout: It is the exchange where an organization's
supervisory crew buys the items and activities of the business they make due.
 Liquidation of the business: There are what is going on where the organization is
standing no where in the business and is going to end the business because of misfortune
thus much obligations in the commercial center which is the adverse consequence of the
business among different organizations in general.
 Selling a stake of the company to the partner or investor: On the off chance that
somebody isn't the proprietor of his business than its feasible to auction simply a stake to
a colleague or other financial backer(Alexander, 2022).

Conclusion
In this separate report, it very well may be reason that the business is fundamentally
where they need to design a few o the plans and systems for improving the business and there are
a portion of the significant modals which are utilized for the better comprehension regarding the
business. What's more there are a portion of the central issues which are making the reasonable
avocation regarding the development and the open doors. Ansoff modular is utilized to
investigate the place of the business on the lookout. There are a portion of the expected
wellsprings of financing like government subsidizing, bank financing, private supporters
however the best sort of asset source is own assets as there is no commitment to reimburse them
back. In the last there has been clarification of exit and progression plans of the independent
company with their benefits and hindrances.

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