Planning for Growth

This article discusses the key considerations for evaluating growth opportunities and funding sources for businesses. It covers Porter's generics strategies, PESTEL analysis, BCG growth-share matrix, Ansoff's growth vector matrix, and sources of funding for businesses. Additionally, it includes a business plan for growth that includes financial information and strategic objectives for scaling up a business.

Planning
for
Growth

Table of Contents
INTRODUCTION...........................................................................................................................4
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.........................................................................4
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................8
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................9
P4 : Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business............................................................................................9
P5 : Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth is a planned and deliberated business activity. It enables its owner
and the team to plan and track the route of its growth in the terms of their revenue. It allows the
business to assign the amount of limited resources they have. The organisation has the resources
they have to keep them centred at a place and to keep adapting the changes in the industry which
can be driven by digital disruption and then differentiate between their competitors
(Sell and et al., 2018). A business needs to grow at a regular and a certain rate which includes
several aspects like sales, rate of competition and unaccepted growth. Growth plays very
important role in developing a business or organisation. Growth is to be planned to keep the
resources in priority and to take the corrective measures and actions to take the proper and
required action towards the growth planning. A growth plan refers to the elements of the
business where it begins when the organisation has setted up the target out of the business goals.
It leads to follow the strategy and the plan to achieve the goals which are specified by the
organisation to their employees. The carbon And here are some strategies detailed below in the
context of carbon kopi cafe.
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
Porter's generics strategies – Michael porter gave this theory on 1945 in his book ''Competitive
advantage : creating and sustaining superior performance''. In basic words this theory is given for
every organisation that they can choose from these 4 in which segment of market they have to
focus and from that strategy how they can capture the maximum market share and can create
leadership in market .these strategies are detailed below.
 Cost leadership Strategy– In this strategy the organisation targets a specific type and
broad segment of market to expand and sell its products and services at reasonable prices
so that they can build a specific market for the products and brand name also. Carbon
kopi needs to apply this strategy for obtain a larger market segment in the market and for
attracting new consumers for their and towards their business( Liang and et. al., 2018).
 Differentiation Strategy– In this strategy the business tries to focus on differentiating its
organisation then its other competitors and this differentiation can be in any way in terms
of product quality, unique features , distribution channels, specification can differ to

(from organisation to organisation) . Carbon kopi has applied this strategy to their
business because they have maintained a quality in their business and as they also
maintain the cleanliness in the space they work and the cafe is opened in. the cleanliness
is maintained in both the places.
 Cost focus Strategy- as per the name there are two aspects in this strategy ''COST'' and
''FOCUS'' . Cost refers to the company producing the product and services at a higher rate
as compared with the pricing when they just freshly entered in the market ( Buchan and
et. al., 2019). Focus refers to pointing out a particular area of marketing to establish itself
as a company or organisation and it can be in any type of medium like economical,
industrial or geographical and after achieving expertise in delivering the product to the
target market . Carbon kopi cafe focuses on providing the best quality in a reasonable
price. The cafe specially focuses on mainlining the prices and which can be affordable
towards the consumers who are opting for the cafe. So the cafe needs to maintain this
strategy in a long term basis.
 Differentiation focus Strategy – This strategy focuses on the evolution of differentiating
the strategy of its marketing as compared with its competitors. As per the above context
provided it only focus on cost leadership strategy and the other strategy differentiation, it
differentiates from its competitors but it doesn't focus on differentiation focus strategy
particularly and it can't continue that because it will go against it because the company.
Carbon kopi cafe needs to obtain it in a long term basis because they need to operate in
the market for a long term and therefore it needs to make a brand name for itself for the
organisation aswell.
PESTEL analysis – It is a framework used for analysis the macro environment of the company
which includes PESTEL factors contains Political, Economic, Social , Technological,
Legal, Environmental are analysed by the marketers.
 Political factor- It includes government policies,leadership and change , foreign trade
policies. If there is some policy which is introduced in the favour of the farmers then it
will lead to decrease the amount of the food crops. And that will result in the favour of
the cafe because if the cafe is opting for the crops directly from the farmers itself that will
lead to making a huge amount of profit in the organisation in terms of increasing its profit

by huge or the amount that was saved in the crops and that will lead it to increase in the
share and market value of the cafe and the organisation.
 Economic factor – It includes projected economic growth, inflation and interest rates .
Labour cost is an important aspect as per the revenue or expense basis (Leick and et. al.,
2018). After the pandemic it has effected the economy of the countries drastically and
hence it has effected the economical situation of every and each individual so in a time
like this. It is very difficult to open and lead a independent business in the market.
 Social factors – It includes demographic contains age,gender, race , family size,
consumer attitudes , buying patterns, population growth rate. Consumer shopping trends
are constantly changing in recent times. It will effect cafe in a way that if there is any
kind of rumour in the market regarding the cafe. For example it is like cafe doesn't accept
black costumers, it will effect the goodwill of the cafe.
 Technological factors – It affect marketing in three ways. First way is producing goods
and services. Second new ways of distributing goods and services. Third way is new
ways of communicating with target market. The business enterprise should keep on
udapting its technologies so that they can provide customers with the products which they
need. As it is very important for the business to work in favour of customers needs ands
demands. In context to Carbon kopi, it has not adopted the latest version of technology
which leads to the customers dissatisfaction. started to accept the online
 Environmental factors – It is important because increasing scarcity of raw materials,
pollution targets doing business as an ethical and sustainable company, carbon footprint
target. With respect to carbon kopi it has adopted environmental friendly packaging
methods and cutleries in order to reduce the use of plastics. Nowadays the customers also
give more preference to environment friendly products. By adopting and focusing on this
aspect the cafe has increased its revenue throughout the year.
 Legal factors – It include heath and safety , equal opportunities , advertising standards
consumer rights and laws and product labeling and product safety. In food organization
the organization has to follow the rules and regulations which are specified by the
government and the world health organization or if the coffee kopi doesn't follow the
rules the government can take the action on the cafe.

BCG GROWTH-SHARE MATRIX – The Boston consulting growth (BCG) – share matrix
was created by BCG founder Bruce Henderson in 1968 and it was published in BCG in-
house magazine know as – Perspectives. It is a business portfolio management framework
or a tool for planning which uses graphical depiction of a organisation's products and
services in an effort to help the organisation resolve regarding which product and
commodity it should keep investing on and what it should stop investing ( Lehtinen,
2018). The matrix puts an organisation's contribution under these 4 categories which are as
explained below in the context of Unilever company
 Star - It consist of those products which have a high market share and high market
growth, which are at its peak and holding a large share of market and those which are
having a consistent amount of sales every year and earn a surplus amount for the
corporation itself and which doesn't need investments for itself. This cafe has various
kinds of caffeine products which is famous among the target market.
 Cash Cow – It consists of those commodities which have captured a huge market share
but having a low market growth rate. These are the brands which have reached at a
particular saturation level but still earn a lot of surplus for its corporation. This cafe also
provides different kinds of food facilities like sandwiches, cookies, pastry and many other
products. This product helps the organisation to generate cash and this leads in
maintaining proper financial stability and generate cash on a regular basis( Sparkman,
2018).
 Dog – It consists of products that has a low market share and has a low growth rate as
well . And these should be sold, liquidated, and repositioned because it is considered that
these products are the dead ended products which are just using the resources of the
corporation from last few years and hence sell them to the other organisations because
they are just being a liability for the organisation for a long time and because of the those
brands the firm is making loss from promoting it in the future itself on the basis of fast
growth and life style of the consumers who are also the final users of the product . The
respective cafe also provides consumers with different variety of juices which is
considered as a non profitable product so at a certain point of a time the company can
stop the production of the product because it is not generating nor market growth neither
the cash generation product.

 Problem Child – It consists of the products that have low market share and high market
growth and they can be future markets star's for the organization considering its market
growth . And these products usually grow fast because of the large amount of
consumption of the firm's resources and if the product is consuming large amount of
resources its quality has to be premium and top class and in these products the excess
amount of profit which is earned by the products involved in the cash cow market .
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
Ansoff growth vector metrics- It is a strategic tool which provides a structure to assist
the executives, managers and marketers to draw up the strategy plan or structure to
maintain the growth in the future as well. This strategy was named after the Russian
American Igor Ansoff. He was an mathematician and a business manager who was
behind creating this concept. It is further explained in the context of the organization of .
 Market penetration- this concept is used for increasing the sales of the organization in
the context of its existing products which are currently available or existing in the market.
The cafe can opt for this strategy(Swan and et. al., 2018).
 Market development – This concept says that the organization has to focus on selling
the existing products of the organization in the new market and probably trie4s to provide
the organization a new market segment to target and to make some potential consumers
in the market.
 Product development – This concept is majorly focused upon the introduction of the
new and researched product to the existing market.
 Diversification – This concept is a strategy that follows by the several organization that
mixes a variety of existing and the new products that are existing in the market of the
organization. Afterwards it introduces to the market segment.
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
Sources of funding - Organizations always seek a source of funding to grow and to
invest in their business of the organization. It is also known as financing and can be described as

an act of contributing to financing the resources. It is detailed below with including two points
which are venture capital and bank loans .
 Venture capitals - It is a form of a private equity and a kind of financing in which the
investors who are interested in investing in the business. The investors will provide the
funds to the organization for taking attractive returns on the amounts they have invested
in their organization. Its advantages are, it can be raised in large amounts, helps in
managing risk, and monthly payments are provided. Disadvantages are ownership share
is reduced, it can pressurize a organization to take their investments out of the
organization rather then considering them to invest it for a long term(Liang and et.al.
2018).
 Bank loans - It is one of the long term source in the terms of financing and it has a fixed
amount of money which is invested in the organization's function by bank that has to be
paid in a fixed time that is specified by the bank itself in the agreement that is done with
organization. Advantages are, it keeps control on the organization because it needs to be
paid in installments and the other is bank loan is temporary. When the business takes a
loan their is no obligation and
P4 : Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.
 Vision - The vision of Carbon Kopi cafe is to become first preference of every coffee
lover in the whole world.
 Mission – The mission of the company is to give the best and exotic flavor of coffee to
their customers in the whole world.
 Objective- The main objective of Carbon Kopi cafe is to constantly innovate the new
and tastiest flavor of coffee and give the high quality coffee and a premium experience to
their customers at affordable prices. The company wants to innovate their products
according to the customer needs which gives a satisfaction to their customers(Romano
and et. al., 2018).

 Goal – The main goal of the Carbon Kopi cafe is to expand their business and open their
new cafes and outlets at different cities of United Kingdom(Gounaridis, Chorianopoulos
and Koukoulas, 2018). Also the another goal of the company is to provide their coffee to
the people of different countries as well and to be present at every household.
 Stakeholders -
High power, high interest – It includes managers and owners because they have high interest in
running the business and have power to take all decisions which are related to benefit of the
business. Also these persons have high interest in the growth of the business.
High Power , low interest – It includes employees as they are the key people who are responsible
for running the business smoothly but they do not have much interest in the growth of the
business.
Low power, high interest - It includes suppliers as they have high interest in the business
because of their material supplied but they do not have much power to influence business.
Low power, low interest - It includes daily wage workers who work in the company on daily
wage basis.
 Capital funding – The company can use their retained earnings in order to fund their
business and also it is one of the easy and efficient funding method for the company.
 Operational plans – Carbon Kopi cafe should adopt product development strategy as
they are familiar to the market and they can introduce some new flavors of the coffee to
their menu with taking care of customer preferences.
 Resources plan – It is important for the Carbon Kopi cafe to use efficient coffee
machinery to fulfill their orders in time.
 Technology plans – Company will need advance and latest coffee machines and frother
and also a perfect system to fulfill online orders.

 Risk factor – Changing market trends and incoming of new competitors with different
innovations will be faced by company in the future(Australia, 2018).
 Marketing plans -
◦ Product - Carbon Kopi cafe is dealing in coffee and other products and company can
also introduce some new products. .
◦ Price –Carbon Kopi cafe should adopt the pricing strategy which is cost efficient and
maintains the healthy profits for the company.
◦ Promotion – Company can use digital marketing, influence marketing and social
media marketing for their promotion of the products.
◦ Place – As company is already present at many online platforms but also company
should introduce new shops at different locations.
P5 : Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.
Passing business to a successor – This plan refers to handing over business to a successor
which can be any person such as family member, partner, or any employee who is capable of
managing the business and grow it as well( Rahman and et. al., 2018). It is main part of
succession is to carefully plan who will be next successor as it is essential to choose wisely that
can handle the business and have required skills.
Advantages
 This process does not allow the third party to enter in the course of passing business top a
successor.
 It s the responsibility of the owner to choose successor which creates a possibility to
allow owner to involve in the process even after passing the business.
Disadvantages
 Sometimes this process of passing business results in conflicts between the employees or
members of the family.
 It can be difficult for the present owner to find out and train a suitable successor.

This process can be used by the Carbon Kopi cafe which reduces the risk of involvement of third
parties.
Selling business through management or employee buyout – It refers to selling business or a
part of business to a group of managers or employees. It is suitable for the owners who do not
have a candidate or found out a suitable candidate for succession process.
Advantages
 Protection of independence of business and legacy is the biggest benefit of this process.
 It also reduces the involvement of third parties as business is sold to the known
employees or managers(Fainstein, 2018).
Disadvantages
 Employees or managers of the company have very limited capital to buy out the business
which is the biggest drawback of this process which can also have an adverse affect on
the business.
 Generally trust is made among the suppliers and financial institutions with the past
owners and sometimes it leads to withdraw or change in existing contracts between them.
 Customer loyalty plays an important role in the growth of business, if new owners change
the products, especially food items or taste, it can result in lower sales.
Carbon Kopi cafe can use this process for the succession plan as it protects the legacy of the
business.
Merge or Acquired by another business – Merge refers to a company is merged with another
company which is having similar goals( Heydari and Sullivan, 2018)). A company can also be
acquired by another company with similar objectives and work.
Advantages
 A person can negotiate terms, price, and other factors at the time of merger or acquisition.
 Business do not lose its identity as its operations are handled by another company.
Disadvantages
 This process of existing business is one of the most time taking and costly.

 The biggest drawback of this process is that it is not certain that a business will be
merged or acquired successfully(Bajracharya and Hastings, 2018).
It is one of the best option for Carbon Kopi cafe for exiting the business and merge or acquired
by other food packaging company.
CONCLUSION
It can be concluded from the above report that planning plays an important role in the growth of
the business. A business can grow as well as expand with a good strategic business plan. Porter's
generic strategy, Boston Consultancy group matrix and PESTLE analysis are key processes for
the planning and business growth. Ansoff's growth matrix is very useful for the businesses to
analyse and make a good business plan. There are different funding options which are available
to a business as well as there are many succession and exit plans which are used by different
companies.

REFERENCES
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