Business Plan for Growth of New London Cafe

Unit 42 – Planning for
Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
P1 Analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.........................................................................1
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................4
M1 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organizational context................................5
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................5
M2 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organizational context..................................................................6
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up of business...........................................................................................6
M3 Develop an appropriate and detailed business plan for growth and securing investment,
setting out strategic objectives, strategies and appropriate frameworks for achieving
objectives.....................................................................................................................................7
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option............................................................................................................8
M4 Evaluate exit or succession points for a small business comparing and contrasting the
options and making valid recommendations...............................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
For every business organisation the planning is considered as the most important aspect
in order to achieve the goals and objectives of the business organisation. The planning for the
growth requires the use of the various strategies and models in order to have an competitive
advantage. It is essential that the organisation is having a key considerations and a strategic plan
in order to achieve the targets and growth and success. It is very essential for the business
organisation to be aware of the internal and external factors which can influence the business
operations. The organisation which has been considered for this report is New London cafe
which is situated in London. It is the most famous cafe in United Kingdom with a vintage
interior designing in order to attract customers. (Dodds, Dimanche, and Sadowski, 2018). This
report will include various model such as pestle, porters generic strategies, VRIO model, ansoff
model, the various sources of funding with its advantages and disadvantages, business plan and
at last succession and exit strategies with benefits and drawbacks.
MAIN BODY
P1 Analyze key considerations for evaluating growth opportunities and justify these
considerations within an organizational context
There are various key considerations which can be adopted by angina the different
models for the growth of the business organization. It is very essential for the company to
analyses the internal and external factors which can influence the growth opportunities. The use
of the various model is discussed below:
PESTLE ANALYSIS
This is the tool or techniques which has been considered by the organization to determine
the various external factors which can influence the business operations and its activities. The
various factors which can impact in the growth of the business are mentioned below:
 Political- This is the factor which is related to the government regulations such as tax
polices, tariffs, trade policies etc. It has been identified that the New London cafe was
affected due to the Brexit move within the united kingdom and the various aspect where
the changes brought the negative impact on the business enterprises. (Li, B., Liu, H. and
Su, W., 2019Zhao, L. and Liu, F., 2020)
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 Economical- This is the factor which is related to the performance within the world have
a impact on the business organization. Such factors include interest rate, inflation rate,
unemployment etc. it has been identified that the rise in the inflation rate has impacted
the New London cafe. It is very essential for the company to be aware of the interest rates
within the economy which have a influence over the business operations.
 Social- This is the factor which is related to the current trend around the world which can
influence the business activities and its operations. Such elements include lifestyle,
behavior. It is very essential for the marketers to analyses the current trend in the market
in order to produce the products according to their taste and preferences. In context of
New London cafe the company need s to focus on the innovation with its food items
which can help in attracting customers. (Herrmann‐Lunecke, and Villagra, 2020).
 Technological- This is the factor which is related to the innovation and development
which can influence the business operations. Such elements include digitization
automation, artificial intelligence etc. in context of the New London cafe it is very
essential that the organization is able to adopt new technologies in order to remain
competitive within the market.
 Legal- This is the factor which is related to the certain laws and regulations which
differentiates from country to country and can impact the business operations. Such
elements include employment safety laws, labor laws etc. it is very essential for the New
London cafe in which every country it is operating its business to follow the certain laws
in order to abide the strict actions from the government authorities.
 Environmental- This is the factor which is related to the surroundings which has a
influence over the business operational activities. Such elements include sustainability,
weather conditions etc. it is very important for the New London cafe to adopt various
sustainable practices in order to save environment. The company can make a control over
the waste management system. (Tomaney, Krawchenko, and McDonald, 2019).
PORTER'S GEENRIC MODEL
This is the model which is used by the business enterprise in order to determine the
various effective strategies for the growth of the company. The three strategies in this model is
discussed below with context of New London cafe:
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