Unit 42 - Planning for Growth: Monmouth Coffee Company

UNIT 42 – PLANNING FOR
GROWTH

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explanation of the competitive advantage for the business of the “Monmouth coffee
company”:....................................................................................................................................3
Explanation of the assessment of the opportunities available to the business of “Monmouth
Coffee Company” by using the porter generic model:................................................................4
Evaluating the options of growth for the company “Monmouth coffee company” for growth
applying Ansoff growth vector matrix:........................................................................................5
Critical analysation of the funding and the sources of the funding available to the firm
“Monmouth coffee company”:....................................................................................................7
Designing of a Business plan for growth with detailed financial information ...........................7
Valuation of exit or succession options with advantages and disadvantages ...........................11
Critically evaluating the exit options with justified recommendations ....................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Growth planning is the business activity related to the strategic development of the
business that helps the business in tracking out the growth and planning for the organic growth
revenue. This helps the business in allocating their business resources by following the centred
efforts to adapt the changes (Haider, and Tehseen, 2022). The report based on the Monmouth
coffee company will be covering about the explanation of the competitive advantage and the
critical assessment of the options for growth of the company by applying the Ans Off's growth
vector matrix. A critical evaluation of the options of financing for the business will be provided
in the report. The report will also be covering the appraisal of the exit and success growth of the
“Monmouth coffee company”. Later in the report recommendations will be given with regards
the business of the firm.
MAIN BODY
Explanation of the competitive advantage for the business of the “Monmouth coffee company”:
Innovative product: The company by operating in the coffee markets sells out some innovative
products in the markets that helps the firm to took over the competitive advantage in the front of
the market leaders (Chou, 2021). The firm gets the benefits like it got improvement in the
productivity, increases the competitiveness, improves the brand recognition and value, develops
the opportunities for the brand value and recognition and helps in increasing the turnover and
profitability. This will also help the company by gaining over the competitive advantage by
improving the sales and customer relationships.
Resource capabilities: having the resource capabilities of the firm helps the firm in describing
its operation in better manner and what the resource can bring in more for the organization.
Having out the different resources to outperform in the market with in the competitors helps in
getting to know about the organization's ability of performing effectively in the market by
making the use of the resources (Hoang, and et.al., 2019). The resource capabilities of the firm
will help in the identification of the ability of performance to overcome the competitive
advantage in the market functioning with the high end competitive market related to the coffee
market.

Unique resources: the company operate by having the unique resources for the products of the
company. The use of the resources to maximum of the potential, helps in keeping the projects on
time and helps in increasing the productivity and by also preventing the problems related to the
production process in the company (Ramli, and Soelton, 2018). Unique resource availability
helps the firm to keep up with the real drivers of the performance of the business by making the
company by focusing on the sustainable performance improvement by the development of the
resources and the capabilities of the organization.
Explanation of the assessment of the opportunities available to the business of “Monmouth
Coffee Company” by using the porter generic model:
Cost leadership strategy: by using the cost leadership strategy the firm would be able to target
the broad market and can offer lowest of the price possible according to the market. The
organization can have the 2 options in the cost leadership strategy. Organization can either work
by keeping the cost as low as possible and ensure large market share. The main option is to keep
the product cost low much it is possible (Firoz Suleman, Rashidirad, and Firoz Suleman, 2019).
Company can have the substantial investment, good logistics and low cost for the material and
labour.
Differentiation: if the firm tries to operate in the broad target market and the product and service
is unique. By adopting this strategy the firm can make its coffee products as exclusive it can be,
making it more of the attractive than comparable products of the competitors. Then succeeding
with the strategy needs good research and development with innovation and the ability of
delivering the high quality. By using this strategy this will be important for the firm to be flexible
and have the ability of adopting the changing market that will help in beating the competition.
Cost focus: by targeting the niche in the market and offering with the lowest price in the market.
This strategy will help in choosing the target market by understanding the dynamics of the
market segment and company will be able to ensure the cost remains low by having the cost
advantage.
Differentiation focus: choosing out the differentiation strategy market with the low competition
and is focused market and the product will be with help the firm to come with the brand loyalty
in the customers. In this strategy it is important to ensure the product remains unique to stay
ahead in the competition (Greckhamer, and Gur, 2021). For choosing this strategy the firm needs