Planning for Growth: Evaluating Opportunities and Funding for Small Businesses

This report discusses growth opportunities and funding sources for small businesses, using Kaffiene Café as an example. It covers the Ansoff Matrix, bank loans, personal savings, and more. The report also includes a business plan with objectives, mission, and market analysis.

UNIT 42

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Consideration to evaluate growth opportunities within an organization context..................3
P2) Evaluate growth opportunities with the implication of Ansoff Matrix.................................5
TASK 2............................................................................................................................................7
P3) Discuss sources of funding for small business entities.........................................................7
TASK 3............................................................................................................................................9
Business plan................................................................................................................................9
TASK 4..........................................................................................................................................12
P5) Discuss exit and succession options for small business along with advantages and
disadvantages.............................................................................................................................12
CONCLUSION..............................................................................................................................14
REFRENCES.................................................................................................................................15

INTRODUCTION
In the Existing world there is the major rivalry and competition there in the industry that creates
it more crucial in order to create suitable type of techniques as well as plan of action in order to
accomplish success and growth in the upcoming period of time. With the assistance of suitable
planning several commercial businesses can take optimum utilization of resources which are
available in an effective as well as efficient way. In addition to this the following report is based
on the organization Kaffiene Café That basically deals in selling several different range of coffee
and other beverage products as well as different food items to their consumer base in the United
Kingdom(Nguyen, 2022). The respective organization basically get the inspiration with the
culture of the coffee of the other nations like New Zealand and Australia and they are basically
performing at 2 places in the London United Kingdom. Moreover to this management are
basically focusing to expand the operations of their business in accordance to gaane more sales
revenue and profitability from the consumer base. The following report will cover about the
methods in order to determine the opportunities of success and growth together with the several
different models and frameworks in addition to this many different sources of getting
investments together with their specific drawbacks as well as advantages have also been covered
in the respective report. Furthermore the suitable plan of business for scaling up the operation is
also involved in this report with the various choice of winding the activities of the commercial
enterprise. Also planning of success and growth is really crucial in relation of facing the
uncertainties as well as run barriers in the future in an efficient and as well as effective way.
TASK 1
P1) Consideration to evaluate growth opportunities within an organization context
This has been determined that getting suitable success is the main objective of all the
commercial businesses in the market area. In order to do this management are of lies to detect
the potential opportunities which are available in the industry. Through detecting the
opportunities of growth this is very convenient for the organization in accordance to formulate
the strategies and plans in an effective way in order to realise and accomplish the desire goals
and objectives suitably by the organization. In addition to the opportunities of growth gives the

brief scope to the commercial businesses in accordance to detect the opportunities that can lead
to more profits in the industry that is important for the success of the enterprise in the upcoming
time. (Mrksa, Nguyen, 2022)
Political factors: This factor refers to the government policies, political stability, regulations as
well as rules that are imposed by the legal authorities Which has the major influence on the
decision making process and operations of the organization. With the alteration in the policies of
the government and the stability of the existing political parties there are several amendments In
the current laws and policies In accordance to this the owners of the business have needed to
altered their techniques and laws even effective and efficient way. In context to the respective
organization management are also influenced with the existing political situation of the country
United Kingdom and this has represented that the political situation of the nation is considered to
be highly stable hence this is very convenient for the management of the respective organization
in order to expand the operations of the business in the efficient and effective way.
Economical factors: This means to the several components that belongs to this factor which
are rate of interest, inflation, foreign exchange rate, cost supply as well as demand and various
more. At that time when introducing the new business operation This can be imperious for the
organization in accordance to consider the economical situation of the nation in the significant
way. In relation to theKaffiene café the business are extremely influenced with the existing
situation of economic in which the buying habit and power of the consumer of the nations has
been declined down because of the pandemic COVID-19 as this can has the major negative
influence on the growth and success of the organization in the market area and it can also lead
to the decline down of the sales revenue which leads to minimization of the profitability of the
company as well. (Karrar, 2020)
Social factors: This element of the framework represents the requirement of the personal
attribute, trends of the consumer, dynamic requirements of the people in accordance to function
the operations of the business in the suitable way. In case of the respective organization the
business required to alter their approach and method of performing in accordance to the

purchasing habits of their clients and they need to conduct the in depth research of the existing
trend of to consumers in order to enhance the sales because they are offering the the products
that are required and preferred by their consumer base in the first place. In accordance to the
existing situation management need to provide more suitable services to their consumers in order
to accomplish there long term objectives and goals in n suitable way..
Technological factors: This factor refers to the advancement in the technology, automation and
implementation of the latest tech in the operations of the business which leads to the enhance
level of performance and quality of the product as well. Adaptation of the latest type in the
functioning of the organization can provide the organization in edge over their competitors in
the industry also. In relation to theKaffiene café management utilizes online ordering service
for their consumer base as they can also order there Product with the assistance of their mobile
phone because of that they can get the order through takeaway or they can get it delivered at
their door step as well. (Kiesel, and Harkiolakis, 2021)
Legal factors: Legal elements involves several different imposed policies, laws, rules as well as
regulation that are imposed and formulated by the legal authorities of the specific nation so that
operations of the business can be done in the smooth and effective way. All the commercial
businesses are required to follow these policies and rules in order to prevent any uncertainty or
any legal consequence against them. Management of the respective organization are highly
impact with the legal factors as they are needed to abide every laws that are imposed by the
government for the safety of the consumers and in order to do that management are required to
monitor there quality standards on the consistent basis which can assist them in minimising any
type of legal risk against them.
Environmental factors: This element refers to the adaptation of those activities that are basically
beneficial for the environment and atmosphere. This is also crucial in order to create the
optimistic goodwill of the organization in the market area among the consumer base. In order to
do this several different commercial businesses take required measures for the protection and
safety off the environment. In context to the respective organization management are taking all
the required measures that are needed for the betterment of the environmental which will lead to
reducing the carbon footprint and pollution and offer the clean as well as safe atmosphere to the
customers in the market area..

P2) Evaluate growth opportunities with the implication of Ansoff Matrix
Ansoff growth matrix is the model and freiberg that is actually utilised in order to determine the
opportunities of growth which are available in the marketplace for the organization.
Market penetration: In this element there is need to concentrate on the several elements that are
convenient to attain the focus of the consumers and in it organisations are basically concentrated
on selling their existing product and services into the existing market area. In relation to the Café
organization can implement this technique through selling their existing range of products at the
lower rates to their consumer base which can assist them in increasing their goodwill and it will
lead to the enhanced level of consumer base that will assist the organization in increasing their
revenue of sales which will lead to their higher chances of success and sustainability in the
market area (Márquez, 2022). This strategy can also assist the organization attaining the edge
over their competitors in the market area.
Product development: In relation to the respective commercial business the firm is focused in
providing new range of coffee beverages involves organic and herbal coffee to their current
group of consumers in the existing market area. Moreover to this they can also modify the
existing range of goods that they are focused in selling through adding more flavors and
minimising the sugar in it as this will provide assistance to the commercial business in
accordance to increase the goodwill which will lead to the enhanced level of consumer base in
the market area.
Market development: This method is not the convenient as selling the existing product or
services of the organization into the new market area as organization is needed to conduct in
depth research in order to analyse the references and requirements of the consumer waste into the
new market area. So in context to the café they are currently functioning their operation into the
2 places of United Kingdom and they are planning to scale the operations of their business in
order to increase the sales and profit revenue which will assist them in their long term
sustainability and success. As this strategy will assist them in providing them with the new and
potential opportunities of growth and success in the market area (TOMASSONI, 2019)
Diversification:. It is one of the most whiskeys strategy which refers to the selling the new range
of the product into the new market area. In case of the Kaafiene Café the business can also opt

for this type of strategy but this is very risky for them and in order to do this organization are
required to provide new segment of the predict to the customers from the new market area.
Through above discussion, it is analyzed that market development is the best suitable strategy
for Kaffeine as it will help to bring more sales and revenue in significant mFrom the above
discussion it has been understood and evaluated that the management of the respective
organization need to adopt market development strategy which is known to be the best and
appropriate technique for them as this will provide support to them in enhancing the level of
brand recognition and consumer ways which will ultimately lead to their long term profitability
in the market area and success as well. (Jessup, 2021)
TASK 2
P3) Discuss sources of funding for small business entities
Bank Loan: This is the capital that is offered by the financial institute for the specific time on
the specific rate of interest. In addition to this capital of the bank loan is basically the liability of
the organization hence it required to be given after the specific time.
 Advantages: This is extremely reliable source because of the appropriate documentation
and paperwork which is done before given any loan and there are also alteration in the
rate of interest that are charged by the financial organization for the different loan
purpose.
 Disadvantages: This is one of the major time consuming method in order to get the
suitable role and also in order to do that lots of paperwork is also required which is
sometimes really exhausting.
Personal savings: In this method owner of the commercial business uses it’s own save capital in
audit to meet the requirements of the commercial business in an effective as well as efficient
way. In addition to this need of the large investment cannot be accomplished by the personal
saving but they are is no need of any type of documentation and any interest rate in it.
.

 Advantages: This money basically is of the entrepreneur or the owner of the organization
hence there is not a single pressure in order to return the amount in the specific period of
time with the any type of rate of interest in this.
 Disadvantages: One of the major limitation of this type of method is that in this the funds
are very limited and because of this it is not convenient for the organization in order to
meet the large need of the capital investment.
Bank loan can be considered as one of the most suitable method which can be opted by
the respective organization in order to get the investment and capital in order to meet the
requirements and needs of their business add this is also one of the most authentic method in
order to get required capital.
TASK 3
Business plan
Business plan is a set of various techniques in accordance to achieve the Particular set of aims
as well as objectives that are imposed by the commercial business in a specific time. When
making a plan offer commercial business then it is needed to detect the method as well as
process of the commercial business acids and after that making suitable techniques and plan of
action for the sustainability and success in the market area (Hopp, and Greene, 2018)
Executive Summary: The respective organization is Kaffiene Café which is a small beverage
and coffee house situated in London United Kingdom that basically deals in providing different
kind of coffee and other beverages to their consumer base in the market area and they are
currently focusing on scaling up the functions at the global level. In addition to this the specific
line of business involves several different stages that can be considered in accordance to scale
the functions of the commercial business at the broad level.
Mission and vision of company: The vision of the respective commercial business is to
generate more and more profitability and revenue for positioning in the market area
with major strength. Also the mission of the commercial enterprises to attain the trust as
well as level of loyalty of their clients in order to accomplished success and growth in
the market for the long period of time (Finch, 2022)

Objective:
 To raise the level of sales of the enterprise bye 10% up to next year.
 To scale the operations of the business into the different parts of the world.
 To increase the level of goodwill which will lead to more customer base in the market
area.
Market Analysis:
STP approach:
It is the framework that is utilised by the respective organization in accordance to fulfil the
requirements and preferences of their target consumer base in an effective as well as efficient
way and this also provides support in establishing and positioning the services and product of the
enterprise effectively within their target customer show that the business key enhance and attain
success in the appropriate way.
 Segmentation: This refers to dividing and separating the entire market area into the
small elements so that commercial business can focus on reaching cool art number of
the people in the effective way. Moreover to this it can be done after determining the
attributes, features, personal traits and various more of the clients so that the business
enterprise can take effectual utilization of the resources which are available in the
market. In context to the café management utilizes and implements the demographic
segment method in which they focus on dividing their clients in various segment on
entire basis of the level of income, gender age and various more (Masciocchi, 2020)
 Targeting: This type refers to choosing the targeted group of the consumer ways and in
relation to the respective café the management is focused in targeting the teenagers as
well as youth and also working class people that are belong to age group of 16 years to 45
years.
 Positioning: One of the main purpose of the respective organization is to suitably
position the first services or products in the mindset of their consumer base which they
are targeting and in order to this they implement various techniques in order to promote
the product and they also offer various range of the product to their clients in order to
optimistically position is the industry and market.

Situational analysis:
Strengths Weaknesses
 Goodwill well as well as services of
the organization is one of the major
strengths the organization is having.
 Lack of resources can act as the
weakness for the commercial business
which can lead to restriction of the
growth of the company.
Opportunities Threats
Organization can use online media or social
media platform in order to increase
the level of brand awareness among
the consumer base as it can give the
organization as major opportunity of
increasing their sales revenue
together with the consumer base in
the market area. (Jazayeri, and Park,
2019)
 Competition and other coffee cafes
can act as the major threat of the
organization.
Financial activities:
Marketing budget
Particulars 1st year 2nd year 3rd year 4th 5th year

year
Initial money 50000 9000 24000 30000 15000
Investment 21000 24000 30000 25000
Total 50000 30000 48000 60000 40000
Marketing
expenditures
Advertisement 1000 8000 3000 8000 5000
Sales promotion 2000 6000 3000 7000 5000
Direct marketing 9000 8000 3000 5000 8000
Total 12000 22000 9000 20000 18000
Available balance 38000 8000 39000 40000 22000
Risk plan: There is brief requirement in order to offer suitable type of training of the
employees of the organization.
TASK 4
P5) Discuss exit and succession options for small business along with advantages and
disadvantages
Exit options
Winding up: In this method the owner of the commercial business focus on selling there all the
assets of the organization and clear all the debt and liabilities. In addition to this the
remaining funds and capital which are there in the organization are distributed to all the
shareholders of the organization. In relation to the respective business management can

focus on adopting this technique if they are field in order to attain success and growth in
expansion and they required to stop the operations of the business effectively (Moro
Visconti, 2019)
 Advantages: This is one of the most suitable method Through that the commercial
business can conveniently Close the operations of the business without facing any type of
legal consequence all the party of the organization gets their own share as well.
 Disadvantages: In this owner of the organization does not have any type of control over
the operations of the business add a individual is appointed by the top level authorities in
order to monitor the process of closing of the organization. Moreover to this management
can also lead to losing competent as well as skilled workers in the organization.
Succession options:
Merger and acquisition: In this method the commercial enterprise can acquire or merge with
another entity of the business for the aim of scaling and large in the level of business
and at the time of doing that all the parties or the organization combined together in
accordance to create a new organization which can lead to the attainment of larger share
of the market (Inkon, 2019)
 Advantages: It provides assistance in increasing the existing share of the market of the all
the organizations that are merging together and it can also lead to improving the
recognition of the brand and goodwill in the market as well.
 Disadvantages: Usually merger can alter the goodwill and reputation of the organization
in the market and moreover to this various of the people also lose their respective jobs at
the time when 2 organizations are merging together in order to form a new one.
From the above topic it has been evaluated and determined that merger can be considered as the
suitable method for the management of café as this will provide support to them. In addition to
this it is the small business with the assistance of the other businesses there is enhance level of
chance of success and growth in the market area.

CONCLUSION
From the above report it has been evaluated that strategy planning is the crucial part at
the time when the commercial business is focusing too enhance the market area through
expansion. In addition to this there is need to evaluate the opportunities of growth which are
there in the market area so that owner of the business can conveniently avail such opportunities
for growth and success of the company. There are several frameworks that are utilised and
implemented in this report in audit to determine the success as well as growth chances and
opportunities which are available in the industry for the respective organizations. In addition to
this there are many sources through which investment and capital can be gained for the
enlargement and expansion of the organization in an effective manner.

REFRENCES
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