Investing in the Future and Developing an Exit Plan for Perky Blenders

This report discusses the competitive advantage, Ansoff's growth model, financing growth, and business plan for growth and exit plan for Perky Blenders. It sheds light on the opportunities for growth, sources of funding, and marketing strategies for the business. The report also includes a detailed analysis of the market and competitors of the company.

Investing in the Future
and
Developing an exit Plan

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1. Competitive Advantage for the Businesses...........................................................................3
P2. Assessment of Opportunities Ansoff's growth model...........................................................4
P3. Financing growth and source of funding...............................................................................5
P4. Business Plan for growth.......................................................................................................6
P5. Appraisal for exit or succession.............................................................................................8
RECOMMENDATIONS.................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Growth planning is an essential part of the business as it helps the business to plan and
take organic growth in their revenue. It allows the business to allocate limited resource towards
centre efforts to adopt changes in the industry (Ross and Tomico, 2020). Online product selling
is an great business idea to start as people are more likely to shop online as compared to retail
shopping after pandemic. Perky Blender is a company in United Kingdom that produce and
provide coffee products on the digital platform (PERKY. 2021). This report will discuss about the
competitive advantage for the business and assessment of opportunities. It will also critically
analyse the option for growth and risk with the help of Ansoff's growth model. Report will shed
light on the financing growth and source of funding of the business.
MAIN BODY
P1. Competitive Advantage for the Businesses
It refers to the factors that allow the business to produce good or services better and
cheaper than its competitors. Perky Blenders provide online coffee products to the customer.
Following are the growth opportunities for the business. For organizing new specific advantages
in business within Perky Blander, innovation and digitalization along with quality of products is
essential for gaining working engagement competitively.
Innovation: It refers to developing new ideas and creativity in the business operations.
Coffee products will be developed with organic process (Kline and Rosenberg, 2017). Variety of
flavours will be an great opportunity as people like to have variety in the products that gives
them a wide range to choose. Innovation in the manufacturing the products leads to the positive
result in the growth and productivity of the business. Innovative ideas improves the service and
reduce the operating cost. It will help the business to sell products at effective cost. Selling at
lower price from the competitors will increase the demand of the product.
Digitalization: Selling the product online is a great opportunity in itself. People are using
digital tools for purchasing. Online shopping has increased to $26.7 trillion globally (Global e-
commerce jumps to 26.7 trillion, fuelled by COVID-19, 2021). selling product online will
increase the sale as people are more likely to consume products by home delivery services.
Online service help the people to purchase anywhere and anytime. It will increase the sale of the
business as shops and cafes has a time limit of availability but online platforms are always
available for the customers.

Quality of the product: it plays an important in the advantage of the competition. Quality
of the product matters a lot to the customers. Business will provide a great quality product,
organic production methods and quality raw materials will lead to the better quality of the coffee
products. Purchasing raw coffee beans will provide greater quality at low cost. Workplace of the
production also impact the quality of the product, greater efficiency in the workplace and having
low number of employees will lead to the better quality of the coffee product. Maintaining
specific quality parameters also holds huge influence, for strengthening higher scale working
advancement in technology goals.
P2. Assessment of Opportunities Ansoff's growth model
Assessment of the opportunities is a process of analysing the market research and data
that helps to identify the opportunities for the growth of the business. Ansoff's growth vector
matrix is consisted of four elements of the production and the market that help the business to
develop the market growth (Hussain and et.al., 2018).
Market Penetration: It refers to the winning market share with existing product and
market. Perky Blenders is trying to sell the even more of its products to existing, new and
customer competitors. The aim of the strategy is to increase the market share and revenue.
Business will keep the transparency of the production and that will help in increasing the sale of
the existing product in the market. However, there is a risk of loosing customer as some people
do like to have transparency with the production of their goods.
Market development: It refers to the preparing strategy to develop new market with
existing product. Company will interact with new customer on the inline platform that will
increase the engagement of the new customer and market and lead to the opening of the new
market for the business. The risk in the customer engagement and creating new market with the
help of social media is that it affect the supply chain of the business and it engagement can be
from different country so it is hard to provide service internationally for small enterprises.
Product and development: It refers to the development in the product and modification
to increase the product range. Perky Blenders is innovating in the development in the existing
product and creating new product for the customers that will increase the opportunity to provide
more product in the business and modification in the exiting product will the help of customer
feedback also lead to the improving the customer loyalty. However, the issue also arise in this
process as it majorly affect the market viability and pricing policy if the business.

Diversification: It refers to the offering completely new products in new market. It offers
the greatest potential for growth to the business (Loredana, 2017). Perky Blenders is offering
new variety of products and innovative idea to their site. New market is being targeted by the
business with the help of social engagement. However, new offering comes with the risk of
failure as it cannot be determine that if the customer will like the new product or not.
The diversification strategy, implementation will enhance new business strategies to be
diversified for company to grow fundamentally for extended market strength parameters.
Diversification will enhance market stability, to develop long term market stability and further
significantly expand new productive working goodwill.
P3. Financing growth and source of funding
Financing has a major role in every business as requirement of fund is necessary for
every activity in the business. Allocation of the finance can be done in various ways. There are
many institutes and groups that help the business with funding and finance. Funding is essential
for the growth of the business. Following are the options for financing growth and sources of
funding.
Bank loan : It is the most common source of funding in the small business. It provides
funds at very effective interest rates. It provide flexibility to the business as funds can be use in
many ways such as purchasing new equipment, entering new market or to carry out new market
plan (Greenbaum and Thakor, 2018).
Benefits: Another benefit of the bank loan is that it do not require equity or bank do not need
share from the profit of the business. Bank loan is easy to be taken and also enhances credibility
of business services, for extended new scale competencies on new finance grounds.
Drawbacks: However, In a critical evaluation profitability becomes necessary as bank do not
take risk like inverters. Obtaining loan from the bank is the time-consuming process as it require
filling out excessive paperwork and terms of interest is also complicated.
Angel investors: It is form of equity financing where an individual or group of
individuals provide fund for the business and take share from the profit of the business. By
using angel investors as source of investment, this further advances scope for higher specific
engagement fundamentally for rapid competitive stability.
Benefits: The major advantage of the angel investors is that financing is much less risky as
compared to the loans (Goldfarb, 2018). Investors view the approach of the business and invest

for the long tern return. Availability of the angel investor is very hard but the process raising
fund is super easy and less complicated.
Drawbacks: It can be critically evaluated that it leads to the loss of complete ownership of the
business. Also, procedures are time taken and consuming on specific level if planning of new
investments are not done in proper format.
Government grants and subsidies: It refers to the funding from the government to meet
the needs of the business. These are done by the government to influence the business market in
the country. Government grants fund to the business and the availability of the funds is also easy
as all the requirement and conditions are available at the website of the government (Crusto,
2021).
Benefits: One of the primary benefit of the government grants is that business owners do not
need to pay back. It is professional procedure for business to attain government grant and
subsidies, which is also specifically crucial for gaining working engagement in competent format
within extended period.
Drawbacks: However, it has strict criteria. Therefore, the completion of a successful proposal
takes a lot of research. The government grants and subsidies, are complicated to be obtained if
the credibility of company business is not proper.
P4. Business Plan for growth
Company has a very effective business plan in order to increase the growth of the
business. It include overall growth of the business. Business have to consider the requirement
and the objective for the growth. A plan without objective cannot be effective. The goal of the
business is to increase the customer market and reach of the business to gain more profit and
increase the sale of the business (Charness and Dufwenberg, 2020). Following is the business
plan of the Perky Blenders to increase the sale of the coffee products on the online platform.
Executive Summery: Key points of the business is included in the executive summery.
Mission of the business is to increase the sale of the business and improve the customer
satisfaction. Perky Blenders have enough employees to get the effective operational activity.
Perky Blenders is located in London, England. Average amount of finance is need for the growth
of the business. The plan of the business should be to increase the market of the that provides the
product out of London.
Strategic Objectives for business

 Specific: Perky Blenders business plan for next financial year is to expand commercial
revenue by 30% accurate goals.
 Measurable: The target will be measured by extending focus towards accurate key goals
in long term market, and based on customer goodwill benchmarks.
 Attainable: Goal will be attained by use of best technologies in commercial marketing,
business goals and further extending focus towards optimum working vision for higher
revenue.
 Realistic: Goals farmed are relatable and found to be accurate. Time target: 6 Months Is the set time period for timely implementation of plan.
Company Description: It refers to the basic description of the company and its mission.
Company sales coffee products in the United kingdom. Target customers of the business are
teenagers and millennials (Alderson and Betker 2017). The unique taste and quality of the coffee
product make it different from the other coffee companies. The mission of the company is to
provide the unique taste of the company to every citizen of the United Kingdom. Increase the
market reach and loyalty of the customer is the main objective of the company. This description
of the company will increase the opportunity to gain the investment from the investors and
lenders.
Market analysis: This part of the planning refers to the plan the details of the market,
target customers and competitors. It has quite good recognition in the local area and the target
audience of the business is almost everyone but it majorly focuses on the teenagers and
millennials who majorly use digital platforms for the shopping. Business exists in the inline
market of the coffee products and the competitors of the company are Artisan coffee and finch
cafe. There are few competitors, and they are using sustainable approaches to increase their
market. Competitors are not maintaining the quality to gain the higher profit. The scope of the
market is to use the quality of the product as a strength and target the people with the social
media marketing as target customers of the business use social media very much.
Organisation and management: It refers to the structure that fits the best for the business
in order make growth. Company can structure as a sole proprietorship or partnership.
Sole proprietorship refers to the business that has just one owner who pays personal income tax
on profit earn for the business (Dungan, 2017). On the other hand partnership refers to the formal
agreement by two or more parties which manage and operates business. Partnership Structure for

Perky Blenders will be more suitable as partners will help in the better decision-making. Work
load and responsibility will also be managed that will lead to the effective operations and batter
performance in the business. Every employee will be the partner of the company and will get
party of the share as salary. It will motivate them to get efficient and effective work.
Products and services: this section of the plan that defines the product and the way it will
benefit the customers Company is involved the selling of the coffee products. As organic coffee
production has become very rare. Company will sell products on the online platform and only
form the official site to avoid the duplicate product in the market that may ruin the image of the
business. Product of Perky Blenders is healthy and has unique taste.
Marketing and sales: It refers to the plan for the potential customers and marketing
strategies. Perky Blenders will use social media marketing to increase the customer engagement.
Potential customer of the business are mostly active on the social media platforms. Social media
marketing is the best approach to increase the growth of the company. Another advantage of the
marketing on digital platforms is that it is the most effective approach to increase the customer
engagement in the business. Teenagers and millennials will interact with the post on the social
media and the attractive advertising will lead to the increase in the sale of the business.
Funding request: It refers to the analysis and selecting the most appropriate funding
source for the business. There is not large amount of fund requirement of the funds. There are
various sources of finance that include bank loan angel investors and government grant. The
most effective source of funding is angel inverters but company do not require large amount of
finance so banking will the best source of funding. Company will utilize the fund in developing
marketing strategy. Perky Blenders will return the finance from the profit of the business as
implementation of the strategy will increase the growth of the business along with the sale and
profit of the business. It will pay the liability of the business first. Another reason for choosing
the bank loan is that business do not want to share the profit for the requirement of average
amount of finance.
Financial Projection: It refers to the preparation of the budget of the business for the
future. Historical data of the business are very helpful in the preparation of the budget. Following
is the budget for the Perky Blenders

Particular Amount
Coffee Maker 800-1000
Smoothie Blenders 500
Coffee accessories 300-400
Crockery 1200-1500
Grinder 500-800
Digitalization 1500
Total 4800-5700
Appendix: It refers to write the business plan by tying the loose ends of the strategy.
Business will add additional attachment to the growth plan. It will also use credit history, prior
financial statements and business licences and permits to prepare the business growth plan. Plan
will also include the development of the core competencies and use them as an opportunity in the
developing the plan and strategy fort the growth of the business.
P5. Appraisal for exit or succession
Succession or exit of the business refers to the transfer or closing of the company. There
are various ways in which Perky Blender can exit the business. There are various exit options
available for business, to be experienced within competitive industry period where liquidation,
merging and selling business to management are some of the most crucial exit options. Below
are the critical analysis of all options, in detail by examining further extending competent focus
towards practical implementation within business.
Liquidation: it refers to the closer of the business that will not trade any more. All the
assets are sold and liabilities are paid and the remaining or outstanding are shard among the
owners (Bruner and Perella, 2020). The process of bringing the business to the end and
distribution the assets to the claimants is usually occur when business is in insolvent.
Benefits: It removes the responsibility from the managers and owners.
Drawbacks: The major disadvantage of the liquidation is that the business will no longer be able
to trade. Employees of the business also lose their jobs.

Merging: it occurs when two separate entitles combine forces to create a new, joint
organisation. It increases the market share of the business and reduce the cost of operations
(Ritter and Welch, 2021). Howerver, due to time taking procedures commercial growth can be
found to be hindered within competitive industry for company to further attain new investment
plans.
Benefits: As two companies are combined it provides more opportunities for the business into
new geographic areas.
Drawbacks: However, in a critical evaluation it rises the price of the product in the market and
create the gaps in communication. Merging also creates unemployment.
Sell the business to management: it refers to the transferring the ownership of the
business to the management head of the management.
Benefits: The advantage of selling business to management is that a long term buyout could help
incentivize employees, making them feel more committed to the business success. Managers
know how to run the business, and they will lead the business in effective direction.
Drawbacks: However, selling business to the manager will not provide much amount as
compared to the other exit or succession.
Initial Public Offering: it refers to the selling of the shares of stock to the public.
Company use this approach to raise the additional capital. It is a big step as it is expensive and
long process. It enables company business to diversely grow on varied working domains,
significantly expand on new competitive aspect and enhance competitive engagement among
stakeholders.
Benefits: The advantage of initial public offering is that it can be very profitable to become a
public company, where there is further scope for higher new investment plans and engagement
worked on towards new competent working topics.
Drawbacks: The process is tedious, lengthy and expensive endeavour. It will lead to the
reduction in the flexibility of managing the business.
From the above analysis of different ways of exit and succession, Perky Blenders should
adopt merger plan for the succession of the business as it will not lead to the closing of the
business and it will provide the growth opportunity for the company. Increase in the market size
will help the business to increase the sale. Communication gap can be reduced with effective

approach and better workplace environment. Merging of the business will also lead to the better
approach for the business.
RECOMMENDATIONS
From the above analysis recommendation can be given to the business in order to grow
effectively in the market. As people are shifting towards the online shopping and the selling of
the business is also depended on the internet platform. Threat of the e-commerce should be
analysed company should prepare and update the website in order to make the platform secure.
Supply chain also plays an important role in the growth of the business. It can be
recommended to the business that work should also done in preparing effective supply chain of
the business, continuous flow models should be applied for effective supply chain.
Funding from the bank is a lengthy and complicated process. Company should analyse all
the factors that may affect in raising finance from the bank. Gathering all the paperwork and
gaining all the information will reduce the time and efforts in raising funds form the banks.
CONCLUSION
From the discussion in the report, it can be concluded that perky blenders had
competitive advantage for the businesses that included Innovation, Digitalization and Quality of
the product. Assessment of the opportunities were done with the help of the Ansoff's growth
vector matrix it also included the risk of each option. Quality of the product was a great
opportunity of the business. Critical evaluation of the funding and financial sources were also
done that included bank loan, angel investors and government grants. Bank loan provided
flexibility to the business. Business plan for the growth perky blenders were consisted of
executive summery, company description market analysis, organization and management,
products and services, marketing and sales, funding request, financial projection and appendix.
Various exit plans were discussed and recommendation were also given to the company that
helped the business to grow in effective way.

REFERENCES
Books and Journals
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Charness, G. and Dufwenberg, M., 2020. Promises and partnership. Econometrica, 74(6),
pp.1579-1601.
Crusto, M.F., 2021. Extending the Veil to Solo Entrepreneurs: A Limited Liability Sole
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Bulletin, 37(2), pp.2-28.
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PERKY. 2021. [Online]. Available through <https://perkyblenders.com/?
utm_source=google&utm_medium=cpc&utm_campaign=Perky%20Blenders
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efD_BwE>
Global e-commerce jumps to 26.7 trillion, fuelled by COVID-19, 2021.[Online]. Available
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