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Planning for Growth: Key Considerations, Ansoff's Matrix, Funding Sources, and Business Plan

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Added on  2023/06/07

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This report discusses key considerations for evaluating growth opportunities, Ansoff's growth vector matrix, potential sources of funding, and how to design a business plan for growth. It focuses on the small business organization known as CafePod Coffee Co. in the UK. The report includes information on how small businesses can analyze growth and opportunities, expand their operations, and assess exit or succession options. It also covers potential sources of funding and their benefits and drawbacks.

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Planning for growth

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Table of Contents
INTRODUCTION ..........................................................................................................................3
Part 1(Investing in the Future).........................................................................................................3
P1. Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.........................................................................3
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix:.................5
P3. Potential sources of funding available to businesses and their benefits and drawbacks ......6
P4. Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business............................................................................................8
Part2...............................................................................................................................................11
P5. Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Planning refers to the process of actions which defines what to do, when to done and how
to do. Planning is consider as a universal function which is used in every course of business. By
the help of planning function the organisations can easily achieve their targets and objectives
(Abubakar, 2019). This report states about the small businesses. It include the information that
how the small business organisation starts their operations and how they survive in the
competitive market. This report includes the informations that how the small business enterprises
analyse their growth and opportunities. How these businesses expand their operations to the next
level. The sources of finance for the small businesses enterprises are also included in the report.
Various option of exit and succession are also included in the report. In this report all these
informations are included in the context of small business organisation known as CafePod
Coffee Co. This Cafepod Coffee cafe is based in UK. This was established in 2011. This
company provide high quality coffee to the person who loves to drink coffee. The founder of this
SME company is Peter Grainger and Brent Hadfield.
Part 1(Investing in the Future)
P1. Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context
The place of the SME company in its industry determines whether the probability of the
SME company is lower or higher than the industry norm. A company's gainfulness can only be
sustained if the organization can keep a sustainable competitive advantages.
Competitive advantage
The strategies which are followed or adopt by the SME firms for attaining the
competitive advantages are follows-
The very first strategy adopt the SME firms is the Innovation. By the help of the
innovative ideas these firms introduce their products in the market.
The SME firms have to manage and improve their operation strategies. This thing
can only be done if they do those activities in which they are best.
The next strategy adopt by the SME firms is that they have to implement the
advance technology so that they can improve their competitive values in the
market (Agasisti and Bertoletti, 2020).
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The porter's generic model for attaining the competitive advantages are as follows-
1. Cost leadership- Small medium enterprises have to keep their costs low much as
possible. The reason of doing this is that it can help them in surviving into the competitive
market for long period of time. The sources of the competitive advantages are fully dependent on
the formation of the industry (Baldini, Marasas and Drozd, 2022). It should involves various
things like scale of economies, technological tools, access of raw material and many other
factors. If the SME firm attained the cost leadership then they can easily perform better or
achieve the target.
2. Differentiation- The distinction strategy will make SME firm specific in the industry
and have a definite property which is extremely appreciated by buyers. The industry needs to
enlarge the target marketplace and meet their requirements. This act will help the organisation in
attaining uniquely position within them.
3. Focus- The general strategy is to focuses on selecting a small range of competition
inside the industry. Organisations must select an appropriate sector of market or set of market
sectors in the industry and adjust plan of action to serve them to exclude others. The focus
strategy includes two discrepancy such as cost focus where the organisation can look for the cost
advantage in its market sector and next focus strategy involves differentiation focus where the
company focuses on different market sectors.
Given the key growth opportunities accessible to the organization, it was discovered that
a differentiation focus would be appropriate for the organization. This is because; CafePod
Coffee Co has significant growth opportunities by diversifying and differentiating its products
and services from other competitors in the market. As an SME, unlike other companies, it is
suitable to focus on a specific market (Bissiri and et.al., 2020). On the other hand, it is worth

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noting that the organization is an SME and cost leadership is not an appropriate option, as old
market leaders will obstruct the success of strategic decisions. On the other hand, it is also worth
noting that the organization can explore cost concentration strategies by offering low-priced
services by targeting the small markets in which it operates.
P2. Evaluate the opportunities for growth applying Ansoff’s growth vector matrix:
Ansoff's growth vector Matrix is also called as the product/ market expansion grid. It is a
kind of pattern which is utilised by the management teams and analyst of the community which
helps in plan and also measure the development initiatives (Cuenya, 2019). This will helps them
will helps them in achieving their objectives. The new SME company like CafePod Coffee Cafe
is providing their products to their customers with the help of effective business techniques. The
owners and top level management of the company decide to sell their products and services
through the digitalisation techniques it will help them in growing their business and also increase
the sales and popularity among the customers. These kind of ideas are generated by the help of
using Ansoff's growth vector matrix. It is because it helps the new business in running their
operations smoothly. The various method which are included in the Ansoff's growth vectors
matrix model through which also the risk and uncertainties of the Cafepod Coffee Cafe can
reduce are as follows-
The market penetration approach: This approach is considered as the ost important
and useable approach for the organisations like Cafepod Coffee Cafe. Through this approach the
company found a way or method through which they can promote their product in the market as
much as possible. This process helps the new businesses in setting up their activities. By the help
of which the organisations can increase their sales or expand their business for long period of
time.
Improvement of the market: The most general and famous approach by the help of
which the growth of the small medium enterprises are improving continuously. It is because the
most use-full place for selling the product is efficient and effective marketing. Cafepod Coffee
Cafe have to do their marketing more effectively through they can easily manipulate their
customers and run their operations. This approach also helps the company in improving their
pricing decisions. Through this approach the organisations can also easily attract their customers
toward their products (Das and Dahiya, 2020).
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Diversification- By the help of this approach the Cafepod Coffee Cafe cafe can diversify
their business activities (Dyckman, 2020). This approach helps the businesses in finding out the
opportunities of introducing the new product to the customers so that each and every person of
the country xcan use their products in the market. Diversification approach also helps tyhen
business in their hard time it is because if the particular segment of customers are denied to
purchase their product. Then it will not affect the business so much because other segment of
customers are still using their product and after some time the organisation can again get their
positions in the market.
Product improvement- The next important approach included in the Ansoff's vector
matrix model is product improvement. If the small organisation like Cafepod Coffee Cafe wants
to develop their business activities in the organisations then then they have improve their
products and services regularly so that they did not loose their customers in the future.
Costumers always wants to get the high quality products and services at a very low cost. If the
small business organisation like Cafepod Coffee cafe wants to increase the sales then they have
to keep improving their product and services on the regular basis.
After applying these approaches of Ansoff's vector matrix model the organisations can
easily achieve their business goals. It is clearly understandable that the these approaches are
considered as the path for the small business enterprises like Cafepod Coffee Cafe. These types
of organisations just have to be focus on their goals and follow the approaches with out any
doubt. The most useful approach in this model is the Improvement of market approach. It is
because by the help of this approach the organisations can introduce their products and services
in the market. Due to this approach the customers or citizens are able to learn about their product
which helps in increasing the sales. It also increase the popularity and goodwill of the business
which leads to increase in the profitability of the businesses. The next approach after this is
Diversification It gives an idea to the businesses. Through they can target those people who did
not by their product. The basic objective of this approach is to bring the new customers for the
organisation by introducing the new product according to their demand.
P3. Potential sources of funding available to businesses and their benefits and drawbacks
Every business always want funding to develop and grow their companies. Funding represents
by name of financing in which it contributes to resources like to finance a project or programme
(Filion, 2018). Funding can be done for long term or short term purposes. In context of Cafepod
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coffee cafe, they are establishing a brand new investment task which required them with huge
source of fund. For this, their executive find out the ways of funding with capability assets with
their drawbacks and benefits. There are many sources which Cafepod coffee cafe can fund
themselves are:
Lease finance
For every business their primary supply is that they can give rent to the small and medium size
groups for establishing new investment. This lease finance categories into the external supply of
finance (Homsy and Kang, 2022). This type of financing have tax benefit as asset is supplied to
lessee and in return lessor receives lease rent till lease term.
Advantages
The important thing for lease finance is that it would not required any guarantee and safety is
ensured to the asset that has been brought out.
Disadvantages
It may in addition comprehend that go with the flow of inch for the cause of meeting ordinary
payments.
Loans from relative and friends
This type of financing termed as internal loans as these are taken from close ones for the
business growth. For this, Cafepod coffee cafe could get in form of debt as it is a great source
since they trust on Cafepod and it is easier to convince than an unknown person.
Advantages
The principal benefits is that it would not required to provide or mortgage any of the assets and
when about to repaid loan principal and interest amount there exist no time bound.
Disadvantages
Borrowing money from friends and relatives can damage relationship if there have problem in
giving money back or short payment.
Venture capital
It is most appropriate option for funding the business like Cafepod coffee cafe as they can get the
higher amount of capital for enhancing their business operation. Venture capitalists are the
professional capitalist which are interested with enterprise management and they play a
important role in creating targets and giving proposal on how they can set for greater success
with giving capital (Javed and Riaz, 2020).

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Advantages
By using this mean of funding, companies can raised large amount of capital in their business
this assists in managing risk and moreover in this every month payments are not needed. One of
the special benefit of venture capital is companies able to obtain business expertise in terms of
human assets and fiscal management. It may helps sometime in technology upgradation and to
develop new technology that help them to sustain in long term (Krueckeberg, 2018).
Disadvantages
The major drawback of this funding is it reduces stake in ownership as enterprise gives their
power decision to venture capitalists. Sometimes, it ended up with conflict of interest as investor
not only hold the stake but also become member in board. It may obstruct their decision making
ability. And obtaining venture capital can be difficult for those who do not have expand network.
P4. Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
The business plan for the organization expansion undertaking for the organization
Cafepod Coffee Cafe are as follows-
Executive Summary-
The SME organisation known as Cafepod Coffee Cafe is considered as one of the most
most successful coffee cafe in the future. This company provide different varieties of coffee to
their customers. By the help of this the organisation can easily attract those customer who always
wants to have a coffee in their daily life. This organisation provide high quality of coffee which
also contains natural properties and no. of proteins and vitamin through the customer's health did
not get affected.
Commercial Enterprise Information-
The SME Company which is known as Cafepod Coffee Cafe. This company is
considered as small because it includes only 21 employees. The company is situated in London
(England). The total revenue for the company over the years is approximately $6 million. Still
they have their different outlets at two locations. Through which they are providing a high
quality coffee to the coffee lovers. The major competitors of the company are Good Juicery Pvt
Ltd, Gourmesso, Wild Poppy Company and many more. Beside that the Organisation is tough
giving tough competition to them by using the different and effective techniques (Liang and
Yang, 2019). Due to these techniques the organisation is able to survive in the market without
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any issues and barriers. The owners of the organisation are pursuing their business activities
because the demand for coffee is rising day by day in UK. The citizens of the UK consume
almost 550 million of cups of coffee per day. The retail business of Coffee also get raise in the
last few years. Through that way the Owners of the organisation Choose the coffee business
over the other business ideas.
Customers proposition-
The next point included in the business plan is customer proposition. Customer
proposition provide the combination of things that a company offer to the buyers which contains
several features like quality product, effective price, specific offers and many more. Thorough
this function the organisation can easily increase their productivity and sales. The customer
preposition also improve the operations effectively and efficiently (Lijdsman, 2019).
Marketing Strategies-
As much as time is passing the innovative ideas for marketing strategies are also forming
regularly. By the help of the marketing strategies the organizations like Cafepod Coffee Cafe
have drastic change. This change is not bad or negative but gives a very positive result. The
positive impact of the marketing strategies is increasing in the sales of the product and services
through the organisation can be able to earn maximum profits out of their operations. After doing
this function of business plan the organisation can also expand their business activities to the
next level. By the help of the proper marketing strategies the organisation will able to bring the
new products in the market for their customers so that they can earn maximum profit.
Operations set up-
As the goals of the business organizations are already been selected. Now the
organisation Cafepod Coffee Cafe should also have to set up the operations so that they can
increase their chances of achieving the goals. Setting up of operation mean assigning of duties
and responsibilities to the each department of the organisation. Due to this the chaos and
confusion get completely vanished away from the organisation. Each and every person of the
organization have their own task which they have to complete in the particular time period. The
top level management of the company have a responsibility of assign the duties and informing
about the important decisions to their subordinates so that the employees can work according to
the situation of the company (Liu, 2021). The new growth of the company known as Cafepod
Coffee Cafe can be achieved by the help of doing the activities given below-
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This Cafepod Coffee Cafe company have to set their new goal. So that they can work
according to it. They can set a target of worth $1 million Total turnover for the next 3 years.
The top-level management have to bring the new strategies and ideas so that they can
achieve their target on time (Moreno and Girard, 2019).
After deciding the strategies the organisation have to assign the new responsibilities so
that they can perform their further operations in the organisation.
After all these thing the employees have to make their product with a very high quality
and with a very great efficiency. The organisation have to focus on their product it must be new
and also healthy for the consumers so that they can attract the new customers.
Resources and finance-
The next factor which is included in the business plan is resources and finance. For
achieving the new growth the organisation have to establish their new financial resources in the
organisation so that they can expand their business operation easily. Financial resources of the
organisation are considered as blood for the business. Any kind of business organisation cannot
be able to survive for long period if there is a lack of financial resources in the organisation.
Businesses have to manage the financial resources carefully so that they can invest their money
at the right place. The Cafepod Coffee Cafe also have to bring the new financial resources so that
they can increase their coffee related product. It will help them in increasing the number of
customer so they can get huge amount of money in the organisation. The Cafepod Coffee cafe
can introduce new financial resources in the business like Issue of share, Bonds and securities.
They can also bring the finance from the financial institutions and through crowed funding also.
Risk & strategic choices-
As much as the time is passing the factors and determinants of the business are changing
continuously. Due to this the risk and uncertainties in the businesses get increasing continuously.
This can be done due to various economic factors which can affects the business or may be
technological changes. To reduce these risks and uncertainties organizations have to performs
their best work with the huge efficiency and effectiveness. The organizations have to perform
their best so that they can complete their work on time. The new strategies of the managers of the
organizations can also reduce the risk and uncertainties. It is because they are professional in
their work and they know how the market is working (Norman, 2018). The Cafepod Coffee cafe

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company have appoint a professional person so that they analyze the market condition and work
according to it.
Part2
P5. Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.
The report section highlights the exit strategy that Cafepod Coffee will employ. If the
business fails to implement a new business project, as it might look bad, the new strategy will
not be profitable for the organization (Paris, 2019).
Sell-off: The earning of the company may fail, and they would not be prepare to invest
with resources. Therefore, the organization require to sold the assets to repay creditors. In this
case, the advantage is that the company can pay off all its debts and start over, but the
disadvantage is that the business is completely incapable of providing any product or service.
Buy-in and out: Once an organization's management is under performing, Cafepod
Coffee may need to travel anywhere to acquire a former executive. On the other hand, takeovers
are considered to be the major shares of the marketing organization and workers also buy these
shares, or they create takeovers for the owner's share. Marketing an organization to a friend may
mean that the owner can still have some power, but in most cases, the friend may not have the
power to push the business forward. Marketing to employees is often very effective because they
have specific information about running the company, but once more leadership talent is sought,
the business can fail (Pop and Ţîţu, 2020).
CONCLUSION
From the above report it is concluded that the small and medium enterprise have many
issues in running the operation in the present time. It is because these types of organization are
get exploited by the large scale organisation. They did not have any strong financial support
which can helps them achieving their objectives. These organisation have to suffer allot in their
business journey. But all these thing can be removed if the organisation brings the most effective
and effective plan. If their strategies are accurate then the business like Cafepod Coffee cafe can
survive in the market. These organisations should have to clear their objective before starting
their businesses. They have to do efficient work or appoint the professionals so that they can
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decrease the risk and uncertainty kinds of threat. This report also shows that how the SME
business firms are finding their sources of finance so that they can achieve their target.
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REFERENCES
Books and Journals
Abubakar, I.R., 2019. Applications of crowdsourcing in sustainable urban development planning
in developing countries. In Smart Cities and Smart Spaces: Concepts, Methodologies,
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study of European regions 2000–2017. Socio-Economic Planning Sciences. p.100940.
Baldini, C., Marasas, M.E. and Drozd, A.A., 2022. Three decades of landscape change across the
largest peri-urban horticultural region of Argentina: urban growth, productive
intensification and the need for resilient landscape management. Journal of
Environmental Planning and Management. 65(10), pp.1781-1820.
Bissiri, M. and et.al., 2020. Towards a renewables-based future for West African States: A
review of power systems planning approaches. Renewable and Sustainable Energy
Reviews. 134, p.110019.
Cuenya, B., 2019. Planning Approaches to the Management of Land Value Increments in
Argentina. Planning Practice & Research. 34(4), pp.406-418.
Das, A. and Dahiya, B., 2020. Towards inclusive urban governance and planning: emerging
trends and future trajectories. New Urban Agenda in Asia-Pacific. pp.353-384.
Dyckman, C., 2020. Planners’ presence in planning for water quality and availability.
In Transportation, Land Use, and Environmental Planning. (pp. 333-395). Elsevier.
Filion, P., 2018. Time scales and planning history: medium-and long-term interpretations of
downtown Toronto planning and development. Planning Perspectives.
Homsy, G.C. and Kang, K.E., 2022. Zoning Incentives: Exploring a Market-Based Land Use
Planning Tool. Journal of the American Planning Association, pp.1-11.
Javed, N. and Riaz, S., 2020. Issues in urban planning and policy: The case study of Lahore,
Pakistan. In New Urban Agenda in Asia-Pacific. (pp. 117-162). Springer, Singapore.
Krueckeberg, D.A., 2018. The culture of planning. In Introduction to planning history in the
United States (pp. 1-12). Routledge.
Liang, W. and Yang, M., 2019. Urbanization, economic growth and environmental pollution:
Evidence from China. Sustainable Computing: Informatics and Systems. 21, pp.1-9.
Lijdsman, L., 2019. Turning the Tide: Inverting Ecosystem Service Assessment as a Planning
and Design Instrument for Decision-Makers to Develop Sustainable Eco-Based
Solutions in an Uncertain Region.
Liu, D., 2021. Application and Research of Analytic Hierarchy Process in Green GDP
Development Planning of Smart City. Journal of Urban Planning and
Development. 147(1), p.04020051.
Moreno, J.V. and Girard, A.S., 2019. Capitalizing on an existing shared governance structure in
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Norman, B., 2018. Sustainable pathways for our cities and regions: planning within planetary
boundaries. Routledge.
Paris, C., 2019. Second homes, housing consumption and planning responses. The Routledge
Companion to Rural Planning. pp.273-286.

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Pop, A.B. and Ţîţu, A.M., 2020. Implementation of advanced product quality planning in the
aerospace industry a way to improve the quality management. Calitatea. 21(177), pp.56-
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