Planning for Growth in New London Cafe: An Evaluation of Growth Expectations, Financing Sources, and Business Plan

This report evaluates the growth expectations, financing sources, and business plan for New London Cafe. It includes an analysis of the PESTLE analysis, Ansoff framework, potential financing sources, and a business plan for growth.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1.Evaluating growth expectation of New London Cafe by examine their key intellection. 3
P2 Measure the expectation for development by applying Ansoff framework......................5
M1 Cover the computation for improvement using analytic expectation..............................6
D1 Critical assessment of particular path to growth while fetching the endangerment into
intellection..............................................................................................................................6
P3 Justify the potential financing sources available in business and their advantages and
disadvantages..........................................................................................................................6
M2 Evaluate potential sources of funding and justification for the adoption of the appropriate
source of fund.........................................................................................................................7
P4 Business plan for growth along with financial information and strategic objectives for
scaling business......................................................................................................................8
M3 Business plan for growth and securing investment, strategic objectives and appropriate
framework for achieving the trageted goal of the oranization...............................................9
D3 Present a depth business plan that determines knowledge and understanding how to
apply and achieve business objectives ................................................................................10
P5 Elaborate exit or succession options for small business and their advantages and
disadvantages........................................................................................................................10
M4 Discuss the exit or succession options for a small business comparing the options and
their recommendations.........................................................................................................12
D4 Evaluation of the exit or succession option for the small businesses and appropriate
recommendations ................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Planning of growth is basically organization strategical action which help them to plan
business and the working of employee for same which brings a great gross for a company in-
return. It is basically the plan of action for planning organization growth outcome. This
designing consist of strength, weakness or opportunity related with organization or its employs.
These tactics in growth helps to improve employs time management, improve their emotive
ability or confidence in public (Gardiner and Scott, 2018). These plans are primary for the
organization which has limited resources to work in as the seemly planning vantage company to
use resources to gain maximum advantage. For the economy development the plan of human
action is primary prospect as business mental imagery is equipped for the forthcoming and leads
to accomplishment of enterprise development. As here they are taking example of New London
Cafe whose main work is to make drinkable organic coffee and different beverages along with
snacks. Here the coffee shops is taken to analyse growth opportunity for small business and to
evaluate it through applying ansoff matrix growth vector. Also discussed about different sources
of funding and its drawback or benefits. Additionally, this reports includes a business plan for
scaling up business and the benefits, drawback for succession option in coffee shop (Jang, 2021).
MAIN BODY
P1.Evaluating growth expectation of New London Cafe by examine their key intellection.
Small organization need to expand their company through identifying the approach
required and analysing it benefits to consumer and employs. These approaches are required by
the organization to yield the market share. Here the different plan and evaluation studied are
disused on the basis of New London Cafe.
PESTLE ANALSIS – It is the study through which organization compare the opinion
made inside company and its impact on external factors. While analysing about the external
factors impact on decisions or changes, companies can easily make a proper planing by keeping
in mind the desired outcomes. It consist of various factors that need are generally considered
while planning business development and possibility (Greckhamer and Gur, 2021). Political– It includes the different government or leadership policies that might effect the
regular trends in coffee market. It basically consist of different policies that government
determine for the quality of beans by proving organic beans, from where they can export
or import, ban the coffee which are grown through the pesticides or fertilizers and many

more. Since, government has regulated very strict measure for the food industry so cafe
needs to provide its customers the healthy meals (Nguyen, 2022). Economical- these are basically the financial aspects that effect the organization fully.
These includes primarily the foreign exchange rates, food standards, trade relationship
and growing incomes. If the coffee rates increases in UK, then it will effect the customer
business as customer will not visit if the alteration is seen in cafe menu. Social- Through this providers, understand the need and wants of its desired customers.
They deal for the trends associated with social changes occurring due to alteration seen in
lifestyle, culture or behaviour. These alteration need to understand as nowadays cafe
modify the meals according to individual client necessity. Technological- These factors are need to be considered according to current market
trends. This basically involves the concepts of CCTV which helps the provider to have
full update of action going on in cafe and it provide safety to (Dawes, 2018). Environmental- this includes the modification done to benefit the environment condition
of that area. This basically involves the avoid using plastic and outset the usage of
recycled product or washable products.
 Law- This the legal approach require by the New London Cafe to assist. It consist of
consumer law, lobar law or maintenance law. New London cafe need to monitor their
hygiene or safety conditions regularly which will provide risk-free inspections (Ahmad
and Bakar, 2018).
POSTERS GENERIC MODEL- These model focus on small external factors that
might influence the organization growth. Cost ability- These are the strategies designed to analyse the competitors and provide
better service compare to them to increase the gross revenue of New London Cafe
(Zanjani and et. al., 2020). Distinction strategy- New London cafe can execute this strategy by preparing the meals
after analysing the consumer demands. This can be done by providing them the healthy
food which will increase the sales too.
 Centring strategy- When New London cafe adopt this strategy, then they need to focus
on proving different discounts or combo schemes to the customers which will attract
them more towards the cafe (Ansoff, 2018).

Boston Consulting Group Matrix- This provides the marketer to evaluate the long-term
growth of company. Through this they decide the opportunity by analysing factors like what
meals to discontinue, where more focus should be provided and the meals that customers are
acknowledging the most. This is named as four matrix which encompass star,cash cow, dog and
question mark which are explained below Star- This symbolise the enterprise plan that is having the huge market assets. New
London Cafe can do it by providing customers with high quality organic coffee beans. Cash cow- This help to describe that cafe is having a great market share but its growth
can decline due to upcoming challenges in market. Since, New London Cafe Launched
the organic coffee but they might face competition from Starbucks or barista. So they
need to work on a regular basis for improving their taste and quality. Question mark- This represent the low market share in high growth market. This is seen
in New London Cafe, since its a new business growth is seen due to population is
impressed with organic coffee taste. To make more revenue from the business, they need
to do more campaigns to make people aware about the innovation (Abdolshah, Moghimi
and Khatibi, 2018).
 Dog- This is seen when there is low market share and low growth in market when
population stop using the organic coffee because of the taste it provides.
P2 Measure the expectation for development by applying Ansoff framework
Ansoff model help marketers to analyse the opportunities for development of new
products and service that will help business to have great revenue output. Market insight- This is used by marketer to sell more products or service to their active
customer. Cafe can adopt this by making their products accessible for online delivery. Market devolution- This is the approach used by marketer to advance their organisation
by expanding it more. New London Cafe can use this by opening their cafe to different
countries and states.. Product development- New London cafe can improvise it by interoperating vegan meals
and different varieties of coffee too (Ali and Anwar, 2021).
 Diversification- This can be provided by utilise the different meals and innovation in
existing products of cafe.

M1 Cover the computation for improvement using analytic expectation
Market strategy are well-advised development plan which provide huge benefits to
organization. Through this small business can lower the risk which helps them to capture market
share. This strategy will help the New London cafe to make their brand image, collects profit,
maintains identical quality or service in all part where they spread out their business to.
D1 Critical assessment of particular path to growth while fetching the endangerment into
intellection
Change in small business like New London Cafe is high-risky because they require a lot
of investment and need to built brand mental image. To access the diversion lot of changes or
modification require which they can afford.
P3 Justify the potential financing sources available in business and their advantages and
disadvantages
Bank loans- These are the most common form of funding usually adopt by business.
Banks provide loan to small business in a definite interest and in-return ask for some security.
 Advantages- This is the most convenient way to use finance for the growth. One don't has
to provide any extra amount after loan amount is paid. One having a account in same
banks will get additional services.
 Disadvantage- In some cases full loan amount is not provided. Bank requires documents
as a security. A lot of paper work is required before granting loan.
Angel investment – These are basically the inverters or the funders who provide financial
support to small-scale business and in-exchange they require a stake position in business. They
are the one who has a background or history of business or the finance. They use their expertence
in ensuring company market share (Gilbert and et. al., 2022).
 Advantage-These is no need to provide a security asset. No interest or returns need to be
done. Company runs with better field of plan. Disadvantage- Profit will be of the investors only. Command for the change in regulation
were in hands of investors. Overall control of business plans or innovation were on hand
of investor.
Venture capital – It is basically the funding providing to company by investors for the start-ups
that might have huge growing potential. These may includes insurance bank, investment
companies or pension funds available. They usually invest on company where they can see the

growth in upcoming years. They usually invest on certain new advancement or innovated
products.
 Advantage- It provides the networking opportunities and also provide the risk
management plan support to the companies. It helps to grow quickly and extravagant
experience advice is furnish to the organization.
 Disadvantage- Investor has the state to have a control on decisions made in organization
and even they can intervene to construe the modification. The development in business
increases the pressure on its employs too (Kaneshamoorthy, 2020).
From the above discourse it is analysed that New London cafe can choose bank loans as
their funding source as it will help organization to raise finances in a speedy and easy style.
Through this the cafe can perform its action more decently. This also benefits the organisation
for adopting loans in less interest. From above described, loans are most beneficial as through
interoperating investors company owners will lose the decision making power.
M2 Evaluate potential sources of funding and justification for the adoption of the
appropriate source of fund
Financing is require by the organisation for the every day growth. Without this company
development halt. New London Cafe should adopt the bank loans to cover their extra funds as it
provides them loan with less interest (Álvarez and et. al., 2018).
D2 Critically measure the potential sources of funding with justification argument
In order to make small business to work decently for integrate growth, a lot of funding
resources available. From the describe three resource where in angel investment (investor huge
interference is seen), bank loan (loans are provided with less interest and huge paper work) and
in venture capital (long term goal of business is to be specified). So from above three the New
London cafe should adopt the bank Loan for its funding as it ensures the less rate of interest for
the loan (Chiu and Lin, 2019).
P4 Business plan for growth along with financial information and strategic objectives for
scaling business
A business plan is a documents that contains the operation and financials plan of a
business and it is an outline for where a company see itself in next coming years on how
revenue can increases. Planning for growth is important for a business because it is related to the
orientation of organisation as well as its strategic process. It serves as road map for the business

growth and achievement. New London cafe is using different digital technology platform in
order to provide the satisfaction and more options to consumers.(Lahane Kant and Shankar,
2020). New London Cafe have a business plan with the strategic objectives such as-
Summary:- The executive summary is the most important section because it should
provides a summary of entire business plan. New London Cafe have business planning to expand
its business by serving the premium organic coffee with high quality. There are objectives and
strategic planning for business growth.
Business overview:- This section provides the information about the specific business.
New London cafe was established in 2011, initially opened as an organic coffee house It
provides the organic coffee and fast food also innovate more in its cafe by introducing new taste
with memorable experience for its customer.
Mission- New London cafe offers the organic premium coffee with good quality and
healthy food. Customers enjoy the taste and with best experiences. New London cafe is planning
to improve quality of the products and services with their production and procedure which helps
in developing trust between company and their customers.
Vision – Providing the organic coffee and healthy food with high quality taste and in its
products which can helps in making the product and organization value for its customers by
maintaining the quality and improves the hygiene factors and also offering to different cities to
increase its customer base and cafe revenue which gives the profitable turnover. (Contractor and
et. al., 2020).
Objectives-
 The main aim and objective of New London cafe is to providing best quality organic
coffee and food which increasing loyalty of their customers with formulation of various
strategies.
 To provide the premium organic coffee with rich taste in it .
Strategic purpose for growth:- Growth strategy is most important for the organization. The
main aim is to expand the productivity level of company and increasing the profitability of their
organisation with development of effective objectives. By adopting different strategies business
would be able to grow at faster rate and will generate the brand image for its organic premium
coffee and food in the different cities. (Vaznyte and Andries, 2019).

Marketing mix:- Marketing mix is a tool for action which is used to promote its brand,
product or services in the marketplace. Marketing mix helps in positioning the product. There
are 4P's of marketing mix such as:-
 Product:- Product refers to as an item that satisfies the consumer needs or wants. New
London cafe offers organic premium coffee and various hygienic and healthy fast food
with the high quality taste and adding more options to make it better and customer can
attract more.
 Price:- Price may also be the consumer's expectations for getting the product. Price is
only part of the marketing mix which determines the value of the firm. Organization can
use different pricing strategy for its business plan and product is priced lower than the
competitors product.
 Place:- Price in the marketing mix refers to the geographical location in which
organization offers its prduct and services according to the customer needs and customer
can easily interact with the product.
 Promotion:- The aim of promotion is to communicate about the product or brand among
the customers. Promotion includes the various strategies such as templates advertisement,
public relation, direct selling and sales promotion. The promotion part of marketing mix
helps in promoting the organization brand which are gives the profitable revenue to the
business and also satisfy the customer needs according to their lifestyle.
M3 Business plan for growth and securing investment, strategic objectives and appropriate
framework for achieving the trageted goal of the oranization
The New London cafe prepares a business plan to increases its production in different
cities to achieve its objectives of the organisation. And the foundation of New London cafe is
offering high quality fair trade organic coffee. The organization development plan should
achieves more growth and profit which increases the potential and ability of the organization.
Business plan is the framework which helps organization to increases the growth opportunities
for the business organisation and generate the value for the society and enhance the profitability
(Pessotto and et. al., 2019).

D3 Present a depth business plan that determines knowledge and understanding how to apply
and achieve business objectives
A business plan helps in managing an organization by stating ambitions, the growth strategies
and achievement with the targeted aims and objectives, strategies and financial structure of an
organization. New London cafe also have a small organic food shop are underway to expand and
offer more organic food and coffee according to needs of the customers in 2014.
There are several objectives involved in the plan which includes summary, business overview,
mission and vision, marketing mix, objectives, strategic purpose for growth and overall structure
for business growth plan (Fowler and et. al., 2019).
P5 Elaborate exit or succession options for small business and their advantages and
disadvantages
Exit strategy in business plan occurs when the owner decide to end their involvement in
business and want to sell their company to another person. Exit strategy provides a way to
business owner which helps to reduce stake in business. Succession plan map out and consider
every aspect of business in order to achieve desired exit outcomes. Succession planning also
involves decision making. Every organization has risk and by facing the challenges business can
grow more faster and also increases the potential. Exit and succession plan is for such small
business. There are both options for the New London Cafe.
Succession- Succession panning involves creating a business plan for the better development of
organization. Every business needs to create a succession plan to ensure that operations continue
and customers do not face disruption in the the production. The owner of the business has to
make the plan to meet their desired goals and increases the productivity of the services. The
purpose of succession planning is to make sure a company always has the right leaders which
changes the environment of the organization which is beneficial for the environment.(Trost,
2020). Licensing- Licensing is an official permission by the licenser to intellectual rights such as
trademark, patent and generate revenue, earned by the company for allowing its copyright
use by the another company.
Advantage-The owner should not pay for expensive and time consuming research and
development.
Depending on the terms of your agreements, payments can last a very long time.

Disadvantage- The licensor having loss of control of their organization. Franchising- Franchising is a type of license that grants franchises access to
franchisor's. New London Cafe giving its franchise to the franchisor by giving its
products and services.
Advantage- Expansion can be faster because franchises provide the labour and their sale
provides the growth.
Disadvantage- It includes high costs royalty payments, restrictions on business that the local
market and customer cannot adopt the changes.
 Merger and acquisition:- New London Cafe can also have a plan to create or join with
another business branded cafe which is providing the high quality of products and
services.
Advantages- It provides many new growth opportunity and increases the market share,
access to new market and enhanced the distribution capabilities.
Disadvantage – Conflict of cultures, financial burden and higher prices.
From the above three strategy of succession and exit, it would be suggested that the New London
Cafe can adopt the merger and acquisition strategy for its succession(Murphy, 2021).
Exit:- A busniess exit stratgy is a plan that a founder or owner of the busniess oragnization
makes to sell company or share company to another investor. There are various busniess opttions
are as follows:- Dissolved – This is the exit strategy when business plan does not effective for the
development of the organization. This is the final decision which can taken of liquidating
the business and selling of all the assets. Dissolution of cooperation refers to the closing
of cooperate entity which can be complex process.
Advantages- It is the most simplest method from all the other options.
Disadvantages – The owner will not able to get the biggest return on investment with this option
which decrese the marjet share and oranization faces the lose.
 Selling to the third party- Thired party sales are coducted by anyone other than the
producer. It is legally work which is giving by the the business ownership to the another
person that can perform with more of innovation and new technology and investing more
in the business.

M4 Discuss the exit or succession options for a small business comparing the options and their
recommendations
Succession is endorse for the New London cafe as the business planning to increase its
market share and busniess growth by increasing their production other countries.The Franchise
option will be more profitable for the business to inceases its production to other cities which
provides the profitable turnover to the New London cafe.(Colombo, Pansera and Owen, 2019) .
D4 Evaluation of the exit or succession option for the small businesses and appropriate
recommendations
The succession plan helps to covers the losses of New London cafe and this plan will help
the business to grow faster and increase its productivity which can lead to profits in the business
organisation.The exit and succession plan is most important for the business organisation to
identify the problems and helps to reduce the complexicity facing by the oranization
CONCLUSION
From the above discussed, it is concluded that business plan is essential part of the
growth of the business because it guides through each stage of starting of business . A business
plan is a framework for the firm from marketing, financial and production points. Decision plans
are decision making tool which helps in growth of the business and provides the profitable
turnover of the company. There are various strategic models for business growth such as BCG
matrix, pestle analysis, marketing mix and an Ansoff’s growth vector matrix. The most effective
model is Ansoff for identifying the opportunities in the market to increases there the business of
new London cafe. There are various components which can evaluate the business growth which
includes competitive advantages, various businesses performance and innovation. Business can
adopt these opportunities with the help of Ansoff matrix which includes different options like
market penetration, market development, diversification, product development.

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