Planning for Growth: Analysis of Growth Opportunities, Ansoff Growth Vector Matrix, Funding Sources, and Business Plan

This report focuses on growth planning for New London Cafe, covering analysis of growth opportunities, Ansoff growth vector matrix, effective funding sources, and a business plan for promoting growth. It includes a discussion of Porter generic and PESTLE analysis, as well as advantages and disadvantages of funding sources such as bank loans and crowd funding.

Planning for growth

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1) Main focus on the analysis of the growth opportunities and explain such consideration to
business........................................................................................................................................1
P2) Implementation of Ansoff growth vector matrix to figure out growth opportunities ...4
TASK 2............................................................................................................................................6
P3) Discuss some effective funding sources to business and also mention some advantages and
disadvantages of each available source........................................................................................6
TASK 3............................................................................................................................................8
P4) Construct a business plan that promote growth and involve strategic goals, financial
information for scaling the business............................................................................................8
TASK 4 .........................................................................................................................................11
P5) Exit or succession options for small business with their advantages and disadvantages....11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Growth planning is defined as strategic plan which is used by the organisation to manage
the business expansion and growth. It is very important to reach organisational benefits. The
main purpose of growth planning is to make profit and attain survival in a competitive market. It
is also helpful to figure out the available organisational resources which assist the business to
stand in a competitive market and attain customer attraction. Growth planning is essential to
make strategies to achieve financial benefits. Growth planning also exhibit potential outcome for
an organisation and enhance the productivity. To acquire knowledge for the expansion of the
business, growth planning is very important. In this report, new London cafe is chosen as
organisation which was established in 2011 in UK.
This report will cover business tool and materialistic approach to new London cafe shop.
It will focus concept and figure out a number of growth opportunities to the business. This assist
to make business plans to meet organisational requirements. It is very beneficial to make
strategies and their implementation with aim to enhance the productivity. For the development
and betterment of the organisation, it is very crucial to develop growth planning.
MAIN BODY
P1) Main focus on the analysis of the growth opportunities and explain such consideration to
business
Porter generic is a structure which is beneficial to make better understanding with
opportunities and regards which assist New London cafe to develop and expand the organisation
(Morison, 2020). It helps company to evaluate appropriate business opportunities and make
advantages. It help organisation to make competitive benefits and implement for strategies for
the expansion of the business. It facilitate New London cafe to grab the opportunities and make
organisational profits. Some ways of porter model that helps New London Cafe to grab
business opportunities, are mentioned to below:
Cost leadership: In order to reduce product cost various strategies are framed and
implemented to attain customer attraction. It helps organisation to lead in the industry and make
profit. All of the strategies is beneficial for New London Cafe to maintain its image in the market
and implement these strategies to reduce product cost. To survive in the industry, it is very
important to develop as a strong competitor to grab the opportunities.

Differentiation: An organisation need to emphasize on differentiation which
manufacture products different from other competitors in the market. New London Cafe always
provide different service from others. This makes customers come to the cafe to spend quality
times with their loved ones. Differentiation is also helpful to make identification in the industry.
New London Cafe always maintain their uniqueness which make them different from other cafes
in London (Marais and de Lange, 2021).
Cost focus: The organisation always make strategies to reduce product cost so they can
attract their customers. Manufacturing cost is minimised but quality of the product should be
compromised. New London Cafe always focus to reduce their service charge to provide best
products with low cost prize. Customers like to buy quality products with minimum product cost.
High cost products can not be afforded all group of people (Rigolon, and Németh, 2018).
Differentiation focus: Company makes their offer different from other competitors along
the appropriate market segment. It is crucial to develop market plans which reflects market
differentiation as it helps for organisational growth. It helps company to grab opportunities
which are essential for the growth of the firm. Maintaining uniqueness help organisation to
maintain good market image and obtain customer attraction (Lee and Jung, 2020).
For New London Cafe, all the strategies are beneficial as all helps to lead the organisation
in the market. These strategies are responsible to ensure customer satisfaction by offering them
lowest cost services. Making customer attraction helps to earn profit and expand the business. It
is helpful attain high market share and reflects organisational growth opportunities which are
essential for the betterment of the company. It is designed with the purpose to tackle all the
issues considered by an organisation (Kearney, 2019).
PESTLE analysis
Pestle analysis assist business to evaluate all the internal and external factors which may
interrupt the performance of the company. New London Cafe implement this model grab
business threats and opportunities which exist in the external environment of the company. Here
are some external factors are mentioned below:-
Political factor: The factor always interrupt the organisational performance as the
stability of the organisation totally based on the governmental policies and guidelines. Effect of
Brexit shows shows greater impact on the political stability of the UK. They are negatively
affecting the firms of the UK. Brexit is completely related to division of UK from European

union and it negatively effects the running firms in UK. Majority of coffee is imported from the
European union as a raw material for New London Cafe. Decision of Brexit affects this import
and organisation is not capable to deal with it in a proper manner which negatively affects the
organisational benefits of the cafe (Gebauer and et. al., 2020).
Economic factor: This factor is completely related with the economic condition of the
nation which consist employment rate, inflation rate and foreign exchange. High employment
rate in UK, is because of per capita income which positively affects the company. New London
Cafe provides services to the customers with different region. The company beliefs to provide
wider service in the market. It makes company earn profit and increase the manufacturing to
attain competitive benefits. It assist company to reach financial goals of the company. Economy
of the country affects the organisational resources which is helpful to attain financial goals
(Domingo, 2022).
Social factor: This factor is completely related with demands and preferences of the
consumers. New London Cafe always update their services in order to meet customer
requirements. Customers like to buy products which is beneficial for them and good at quality.
Cafe always maintain its quality of product make more customers come to cafe. It is very
essential for the survival of the company in such a competitive market. Cafe always prioritise
customers demand to manufacture products to meet with their requirements (Wei and et. al.,
2018).
Technological factor: This is related to application of technology with the purpose to
enhance the productivity. It helps to save the time and manufacture more products in less time.
Recently, citizens of UK are fond of advanced technology and it assist New London Cafe to
update the advanced technology which save time and make profit. Company may acquire more
customer in order to attain business goals and maintains the sustainability. Implementing and
updating new technologies are helpful to acquire more customers and meet their requirements.
Business may deal with the rival with the help of advanced technologies. Business can also
obtain competitive edge with the help of advanced technologies (Chen,Yuand Jin, 2019).
Legal factor: The factor is associated with legal applicability and implementation of
numerous laws and guidelines in order to eliminate legal conflicts and interruptions which
negatively effects activity of the company. Government of UK is very strict about the rules and
regulations such as employment act and safety act. These legal requirements are crucial to ensue

the safety of employees. New London Cafe strictly follow all the rules and guidelines made by
the government of UK such as safety and employment act during the organisational working
hours. These legal guidelines are beneficial to maintain high efficiency. Adherence to legal
policies, assist company to avoid conflicts and attain organisational goals effectively.
Environmental factor: The factor is related with appropriate protection of the
environment of the company. Laws related to environment need to be strictly implemented in
UK as government of UK is very strict about this. The environment directly affects the activities
of the company. New London Cafe utilize a big amount of coffee beans and while drying and
disposing the residue it negatively affects the environment. It is reliable for the environmental
pollution. It is very crucial to meet all the legal criteria to avoid legal conflicts. Cafe need to
control all the activities which make harm to the environment (Banerjee and et. al., 2020).
P2) Implementation of Ansoff growth vector matrix to figure out growth opportunities
It is a structure which is applied by an organisation to make and implement effective
strategies increase and grow market approaches in order to reach business goals. Introducing new
products in the market to attract the customers is always helpful to make profit. Strategies need
to be effectively implemented to attain business goals. This model is useful to develop market
plans to make survival easy in such a competitive market (Zidek, 2022).
Market penetration: The organisations prefer to use the strategy with the intention of increasing

sales and profit in the marketplace. This strategy is comparatively safe in comparison to other
strategies. In reference to New London Cafe, market penetration strategy concerns with enhance
the share in the market by increasing the sales and popularity of existing product without
launching any new product in the market (Catlin, 2020). Organisations prefer to adopt many
strategies like templates, pamphlets, and advertisements to promote their sales and reduce cost in
order to attract more and more consumers.
Market development: In this strategy, if New London Cafe concentrates and tends to uprise the
sales and promotion of their product at intercity level. The company focus on extending the
market value and increase its approach to the new consumers. Prior taking any decision
increasing the reach of the market to another location, it is important to think , reconsider, and
analyse that whether population at another location demands for the service or product they are
providing or not. It helps the entrepreneur to make decisions regarding the service will be
profitable or not. After analysing the complete situation the organisation can develop appropriate
strategy that help company to grow faster.
Product development: This strategy preferred by New London Cafe, will proved to be effective
only if the organisation intends to launch any new product in the market along with already
existing products in similar market. Company should always consider the needs and demands of
population about the particular product within the locality. New London Cafe must analyse
wants of people, methodology through which they can serve the service to the people in an
effective way. It is always better to consider modifications they can bring to the product that will
be helpful to the people and increase demand of their product (Kearney, 2019).
Diversification: This strategy is effective when an organisation wants to introduce a new product
in the market. Strategy of diversification is believed to be the riskiest one preferred by
companies. If London New Cafe use diversification strategy then they can put their organisation
into a risk by introducing the product about which they have no idea and experience. It is always
better to adopt theory of research and study the market before launching any new product into
the market. Appropriate research about the needs and demands of the consumers and then bring
product with effective modifications (if needed) can help market to grow rapidly. In this, New
London Cafe generally p[refer to adopt market development strategy where organisation is
supposed to enter in a new market but with already existing products (Kim and et. al., 2022) .

TASK 2
P3) Discuss some effective funding sources to business and also mention some advantages and
disadvantages of each available source
Funding refers to avail capital in order to implement or run a firm properly. Money is an
critical need of each and every organisation as it helps in expanding business, launch new
product or services to already running market, it helps in making changes, bring development,
etc. The New London Cafe needs capital to operate and manage the functions and promote to
taking steps in advertisement field in order to facilitate promotion (Kim, Glock and Emde, 2021).
There are many sources of avail funds that are mentioned below:
Bank loans: Banks always are the first choice of funding source. Bank provide to well
established as well as new start ups only on respective terms and conditions. New London Cafe
decided to borrow money from bank that provide funds only after getting the full information
regarding why organisation needs funds and where they plan to invest the capital. But there are
some advantages and disadvantages of borrowing money from banks are:
Merits Demerits
 New London Cafe can easily fill forms
and follow the proceedings of taking
loan at anytime , anywhere. In UK,
bank facilities are available at every
location.
 Banks does not show any interruption
and allow organisations to expand and
grow their business.
 Lengthy application process.
 In context to New London Cafe, banks
can create problems in passing the loan
of demanded amount if bank feels the
amount demanded is too high for the
given purpose and it may also create
stress in paying rates with such high
interest (Liang and et. al., 2018).
Crowd funding: Business organisations generally does not prefer crowd funding source. In this,
the major source of receiving capital is public. The participants who contribute in crowd are
generally not a professional investors hence does not demand for return or share. Merits and
demerits associated to this source of funding are:

Merit Demerit
 This approach generally consume less
time to collect funds and there is high
possibility that the investors who
contributes generally become loyal
customers (Miao, 2019).
 In context to New London Cafe, public
interest can be computed which may
result in performing an effective market
research.
 It is a complex procedure of availing
funds for the new London Cafe as it
needs to convince a number of
investors in order to raise funds for
initiating project.
 This source has high chances of failure
which may assist to reciprocate good
will of the organisation (Shatkin, 2019).
Angel investors: This funding source avail capital generally to small start ups in the exchange of
share. Angel investors is generally a source of funding running by an individual who provide
money and support back up but in exchange demands for some percentage of ownership from
company for which they convinced to make investments. These individuals along with money
also provide their experience and guidance to set business successfully. New London Cafe will
go for angel investor with some merits and demerits of given source:
Merits Demerits
 London New Cafe has chance to make
contacts with owners and expand their
business effectively.
 Investors of angel investments already
have experience that may assist the
start up company to grow better
(Sparkman, 2018).
 Angel investment funding source is
cheaper and less complicated. Best
thing is that the borrower don't have to
return capital if business does not
proceed to run or fail to establish.
 In this source, New London Cafe able
to share its ownership with angel
investment. So borrower will not be
able to own the company completely.
 Terms and conditions can be indefinite
and sometimes slow.
 Average cost is comparatively less than
investment amount.

TASK 3
P4) Construct a business plan that promote growth and involve strategic goals, financial
information for scaling the business
Planning is initiating as well as critical part of establishing a business. Planning is a procedure of
designing a map that needs to be follow with the intention of achieving the aim of the business.
New London Cafe coffee shop require to evaluate the market as well needs and demands of the
regional population and frame a business plan accordingly to promote the growth of the business.
Executive summary: Appropriate planning and successful installation of plan in essential
to operate and grow a business efficiently. London New Cafe may invest the capital smartly and
concentrate on addressing the demands of consumers that may result in increasing coffee sale.
Organisational overview: New London Coffee shop is dedicated towards consumers and
serving various flavours in coffee at a very reasonable cost along with good seating space to
consumers. The organisation also frame strategy of providing many offers to customers like cost
reduction, introduction of new flavours, combo offers for the purpose of increasing reach to the
customers and elevate their market growth (Syssner and Meijer, 2020).
Mission and Vision of organisation: New London Cafe has vision to implement a proper
business and popular coffee shop and serve quality coffee to the consumers. The mission of
cafe's owner is to increase business reach to different cities and mainly concentrate to cover the
areas of college and university where students can sit, send some time, and afford coffee in
suitable price.
Ethics and values of organisation: New London Coffee shop always prefers to work by
following and considering their values and ethics as priority. They always deals with the issues
in a proper way and prefer to make good contacts with employees and customers. The coffee
shop employers and owner focus to maintain friendly and good working environment.
Objective:
 To increase profit of the company.
 To serve authentic coffee to the consumers.
 To make a good name and reputation in market.

 To increase value, share, and market to becoming a popular coffee brand.
Market analysis:
STP Approach:
To implement a successful and fast leading business, it is essential to evaluate all the
segments and increase reach to customers. As New London Cafe intends to attract students as
they are the main target customers of the organisation. STP approach can assist company to
develop and grow. Some of the factors associated to approach are:
Segmentation: New London Cafe segregated the market area during planning for the business.
Segregation on geographical, behavioural, demographical, and psychological aspects nad
concentrate on completing the demands of regional population.
Targeting: New London Cafe conducted research and identify customer's preference that may
help the business to grow rapidly.
Positioning: In this, New London Cafe prefer to use social media for maintaining the position of
organisation.
Situational analysis:
To evaluate various aspects of business, SWOT analysis is majorly preferred for this. This
includes the evaluation of weaknesses, strengths, associated threats and related opportunities
with regards to the businesses. After investigation, it is considered that the organisation needs to
implement new policies and modify previous approaches and concepts that they used to do
(Sunderaraman and et. al., 2020). SWOT analysis for New London Cafe shop majorly tells about
the points that is discussed as under:
Strengths Weaknesses
 Supported and motivated staff members
can greatly impact in contribution to
business by providing good services
and warm welcomes to visiting
consumers.
 Different variabilities of coffee attracts
the consumer's curiosity and get them
excited about the place and foster their
 New London Cafe has limited
consumer reach because they have
limited market share.
 New London Cafe has weak reserve
share as per the financial and
economical feature.

visit.
 Better seating arrangement facilities
with good quality attracts more of
consumers to the coffee shop.
Opportunities Threats
 New London Cafe shop has a well
established opportunities to create a
great kinship with consumer on the
basis of their good quality that they
provide to the consumers. This will
majorly impact sales and incline
consumer base ultimately making
fecundity.
 Competencies in coffee shop
established in the same locality from
prolonged term make thread to New
London Cafe shop (Tartari and et. al.,
2021).
 With less or lack of financial reserve,
they are threatened to survive within
the other competitive situations which
are mainly associated with losses.
Financial activities:
Financial activities chiefly details to the approaches that are related with fund and their
optimisation and used for future application. It is very crucial to have a proper record of all the
expenses and in return sales and fecundity earned by organisation. In addition, the organisation
keeps a record of data that is essential to analyse monthly basis. This aids in business to analyse
the investments required to maintain fecundity and loss made by the organisation. Financial data
of New London Cafe are discussed as under:
Particular 31/01/2019 ($) 31/01/2019 ($) 31/01/2019 ($)
Utilize equipment
costing
15000 - -
Utilize equipment
costing
9000 8000 6000
Expenses in
commercialisation
6000 5600 5800

Collections 2000 4000 3000
Training charge 6500 8000 8500
Overall expenses 38500 25600 23300
Risk plan:
New London Cafe shops have already kept reserved fund to withdraw their business from critical
circumstances. Risk management plan aids organisation to trade in issuances. Risk management
majorly includes plans determination, analysation and risk decline (West, 2022).

TASK 4
P5) Exit or succession options for small business with their advantages and disadvantages
Exit options must be abided by New London Cafe in case of business failure.
Organisation fosters its assets and pay them with al their debts and liabilities on time. There are
various options that are available for business:
Winding up: It is an exit option in which the organisational owner sells all their assets to
pay to their liabilities.

Merit:
 New London Cafe functionalities automatically stops.
 The major debts are cleared which declines the burden of business.
Demerits:
 For binding up business activities, a well organised professional is required.
CONCLUSION
From the above discussion, it can be conferred that business planning ans research aids in
providing good reach to organisational work and effectively apply them throughout. Risk
management of internal as well as internal aspects are considered effectively to run the business.
It is crucial for selecting effective strategy for growth and business development.

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