Planning For Growth

This report discusses the key considerations to evaluate growth opportunities and justification, applying the Ansoff Matrix to evaluate growth opportunities, and potential sources of funds for Dimello Coffee House. It includes analysis of competitive advantage, Porter's generic strategy, BCG matrix, PESTLE analysis, and Ansoff Matrix.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Management Planning is the business strategic plan which enables business owners to track and
plan organic growth in their profit and revenue. This allows companies to allocate the limited
resources towards a centre efforts that is adapted to change in the firm which is driven by
differentiate from competitors and digital disruption (Jones, Lee and et,al., 2020).These tactics
and strategies includes the growth plan that focuses on the key driver of profit generation that is
customer. The plan for growth is systematic, granular records that is for ambitious for future
business. It sets the business targets and goals and very clear tactics and strategies to reach them.
A growth plan considers the recent state of the company, which includes weaknesses,
opportunities and strengths. In this report, the firm which is taken is Dimello Coffee House. This
company is founded in year 2002 and its headquarters are based in UK. In this project is based
on the growth opportunities that exist in the marketplace. Ansoff matrix is very useful to have
growth opportunities. There are several sources of funds which are available so there is precise
evaluation of appropriate source which is also a part of this report. Moreover, a business plan
will be prepared foe the company Dimello. Which will explain the different exit and success
options that will be available for the firm.

MAIN BODY
P1 Analysis the key considerations to evaluate the growth opportunities and justification.
To make place in the businesses, this is very important for the firm to make a plan for growth
and framework and models of activities. In the case of Dimello Coffee House they select and
hire the staff that have very high skills which are competent enough for the demands of
consumers(Mittal, Wuest and et,al., 2018). With such variables the company will be able to
analyse the opportunities for growth effectively.
Competitive advantage- Competition pushes the company to do more business in very
innovative way. This is the best model for growth. Consumers always have benefits to buy
products at cheap price with high quality. The company knows the consumers wants and needs.
To achieve the benefit of cost the resources should be based on opinions that describes the
framework to make decision which can be controlled as the resources are planned. Main focus is
on the capabilities, possessions and competences of the company for competitor edge. For this
firm can use the model Porters generic strategy-
Porter's generic matrix:
This matrix helps the company to find the right position in competitive market. The organisation
should follow the strategy that will assist them to grow and achieve success. The different
strategies for Dimello enterprise is discussed below-
 Cost Leadership- This is the tactic which focuses on reducing the cost that helps to
achieve leadership in the target market. In Dimello company they have opted for this
method which helps to gain consumers loyalty and benefits over the established firms of
the marketplace. The cost leadership strategy helps to improvise the consumer’s base.
Differentiation- This step has its main focus on service or creating product that have new
features in order to show the differentiation in the market (Ali and Anwar, 2021). It helps the
firm Dimello to offer coffee which has different and unique flavours and taste that
simultaneously helps to gain benefits such as competitive benefits.
 Focus- In this strategy, the organisation is tended to sharpen their focus on the targeted
market. In this method, the firm focuses either on gaining the leadership in niche
marketing area or helps to deliver different and unique product in that market.

Boston Consultancy Group Matrix:
BCG matrix is very important method which helps to identify the growth opportunities in the
market(Aguilar, 2022). It is helpful when the firm critically analysis the portfolio and helps to
make decisions based on services and products that should be discontinued or continued. The
Dimello follows BCG matrix as follows-
 Dogs- In this step of the method, the product growth is low and shares of market are also
low. Hence, it is vital that the firm discontinue the product which falls under the category
because they do not generate profits nor they increases flow of consumers.
 Question marks- In this step, the products has high demands but market share is low in
the targeted market. Hence, the firm requires to work on things like that helps to improve
the market share which gives success.
 Cash cows- This step covers, the services and products have high market share but
market growth rate is low. The enterprise must put efforts and formulate the strategies to
boost the demand of the product in the targeted marketplace. Stars- In this phase, the quadrant reflects that the products growth rate and market is
share are high in nature, the high effect applies to both. Hence, the company should
continue the product which falls under this step as this will help to improve the goodwill
and brand image which will generate more profit margin to the business.
Pestle Analysis:
The Dimello firm finds that external factors helps the business environment in order to make
every decision-making effective for the company. This is great management tool which will help
in the formulation of strategic plan. The following is explanation of external factors which
affects the business activities:
Political Factor- The failure and success of any business which will be highly dependent on the
political stabilities and commercial restrictions of the country. This involves factors such as trade
restrictions, policies, government influences and tax rate etc. In Dimello firm, the company
profits are been fluctuating with the decrease and increase in the tax rate(Chiu and Lin,
2019).Also, the government influences supports the company as its SME.
 Economic Factor- The firm growth can be affected with various economic variables
such as labour market, inflation rate, interest rate etc. the GDP immensely effects onto

the profitability of the company Dimello. The company has high sales value with higher
GDP rates which will lead to high disposable income. Whenever the inflation rate is high
in nature, the cost of inputs and raw materials have been severely affected. To economic
of scale this is crucial to reduce the instabilities of economic.
 Social factors- The organisation is been affected severely by the some social factos
which are rapidly changing. This could be either the change in preferences and taste of
consumer or disposable of income of consumer. This might be an threat or opportunity
for the business. The company Dimello is highly affected by these factors as costumers
are becoming conscious for health and many people have in mind that coffee is harmful
for the health.
 Technological Factors- In recent times, every firm from small to big companies keep
themselves updated with latest new technologies. This is essential for the organisation to
invest more and more in technological equipments to manage their payroll and HR
processes. This can be invested in less contact technologies that will help customers to
pay with a wave of their coffee mugs.
Legal Factors- This is fundamental for the organisation to work under the legal framework
which is established by judicial bodies and local governments of the nation. Laws can be set to
treat employees humanely and according to the law particular working environment requires to
be fulfilled(Vallati and Grassi, 2019). This is essential for the company Dimello to provide
relevant lunch hours, medical claims and rest hours etc.
 Environmental Factor- In the recent situation, every individual is becoming aware of
climatic changes and it became the huge responsibility to provide services and goods that
can be eco-friendly and do not harm in any way to nature. In addition to company
Dimello, it can be used products that doesn't include plastic material which eventually
harms the environment and health of any living beings on the earth as well.
P2. Applying The Ansoff Matrix to evaluate growth opportunities.
With the help of Ansoff Matrix, the company can analyse their strategies for
development and growth. There are different strategies that helps the firm to grow and develop in
the target market. In case of Dimello Coffee House, the model which explains is below;

 Market penetration: In this method, the firm works for the recent finished goods in the
current market. This will work to increase the current sales of the product and also to
satisfy the wants and needs of the customers effectively as these goods are gradually
established already in the marketplace. The Dimello company tries to keep the prices low
for the product in order to attain the success in the market. The organisation is able to
improve sales as the merit is linked to the strategy. Also, due to low price strategy they
are very competitive gain and at the exact time the demerit is when the low prices is set
for the product of the company which reduces their profit margin.
 Market development- Through this another method firm can grow their profit of
business. The company can expand their business by using current services and goods in
new marketplace. This will help to increase customer in number as well as profit and
sales margin of the company. The best advantage is the market development method
helps to grab more and more consumers by having less risk in the business. But the
disadvantage can be as sometimes in comparison of previous market do not provide the
result which was targeted by the company.
Product Development- In this method company tries to develop their current product in the
recent market. This is done when the company is getting high amount of sales on the product in
the current marketplace(Cleberg, 2019). So, Last method, the company innovates and creates
something new in the recent product with an intent that the target consumer do not feel any
boredom by using same product over and over. This method is often used by Dimello company
so as to put additional element to their services and goods. The benefit of the method is that this
helps to increase the demand of the new offering of the company. The drawback is that
sometimes new products in the target market is not appreciated by the loyal costumers so the
company might lose their regular costumer as well.
 Diversification- This is the last method in quadrant in which the organisation focuses on
the launch of new finished goods in the new targeted marketplace. This involves the most
risk for the company but there is more chance to generate revenue for the business as the
company starts developing new product and serves more in new places. The benefit of
this process is that company enables to have high profit. On the other hand, the

disadvantage is that the firm has to face many risk and uncertainties while targeting new
offering within the new market.
After facing all the strategies for the firm Dimello, this can be said that organisation will be able
to fing the growth opportunities in the existing market. Hence, the company opts the strategy of
new product development as it helps to increase targeted customer in the market and also
improves portfolio to protects with a purpose to generating more revenues and gain competitive
benefits. This supports the revenue and growth generation.
TASK 3
P3. Explaining the potential sources of funds.
Finance is very much needed by each and every kind of company. Having a potential source of
funds is very important for the firm. As for the company there are countless number of expenses
which sometimes cannot be neglected by the company. To expand and to run the activities and
operations of the firm in a smooth way funding is important for the company. Hence, this
becomes very essential to take correct decisions in respect to source the funds that has interest
with the low rate for the company(Coakley and Lazos, 2021). The points which needed to be
ascertained by the company while decision-making which is related to funding like pay back
period where time is compute to retrieve the cost of investment. Moreover, the company must
determine the net present value (NPV). This is the alteration in the money which is worth due to
inflation. All these determinants helps the company to make correct decisions for the working of
business and helps to invest in such project that has high returns. These are some options
available for the Dimello company for collecting funds for the company are:
 Bank Loan- This is the source of money in which bank is the institution which
provides the company loan and in return the firm has to provide some collateral
security. This rate of interest is predetermined that an organisation has to pay on
regular time period. Also, there are some formalities as some documentation which are
done by the bank. This is best suited for the Medium and small size firms in which the
company needs to find right bank that will fulfils all the certain wants and needs.
Pros Cons
 The organisation can get quick and
easy access.
 The firm needs to pay some certain
amount of interest.

 The company gets a good amount of
money in one time.
 Not necessarily all small and new firms
get access for the funds.
Crowdfunding: This is a platform in which the organisation can raise its funds from a range of
small contributions from several investors (Janaji , Ibrahim and et,al., 2021). The firm can either
run equity-based crowdfunding campaign, where it can make transactions of equity for the
reward or investment based crowdfunding campaign in which investors gets perks or rewards or
perks in capital deals.
Pros Cons
 The organisation expects the fast return
on the investment.
 There is a chance that firm do not offer,
as promised which can result in a
failure of brand and public image.
 If the copyright or patent has not been
taken then the idea can be misused and
stole by someone else.
 Government grants and subsidies: This is a financial reward by state, federal or local
government authorities for the project which is beneficial. This is a effective transfer
payment. This does not include any technical or financial assistance like revenue sharing,
direct appropriation and loan. The guarantee is not kept to give and expected to give back
the amount taken but it is expected to utilise the funds for the aims mentioned by the
company.
Pros Cons
 The paying back is not required.
 This is available to medium and small
companies.
 This is time consuming process to
apply for grants and to finish up the
paper related formalities.
 The company is required to meet its
specific and main criteria.

In case of Company Dimello, the company must go for the bank loan to source funds for
the business as they can pay a certain amount of interest rates on regular basis for specific time.
This will support the company to have secured finance which is required to prepare themselves
for competitor market for interests to pay on regular intervals.
TASK 3
P4. Making a business plan for growth.
Executive Summary: In the business plan, there will be detailed examination of company
Dimello for growth. It is small company in United Kingdom. This company is planning to grow
their business for which they had to make an effective business plan.
The objectives and aims are:
 This improves the portfolio of the products.
 This establish a competitive and strong position that is essential for the company. This helps in increasing the sales of the company by 5 percent in the near working of
three months.
About the Company: Both the promoters Ioannis Iosifidis and Ms. Niovi Kallergi, planning to
develop and grow the business of Dimello Coffee House by increment in their market share.
They are specialised in items such as capsules, ground coffee and coffee beans, as well as home
equipments. They pay attention on the taste as well as quality of coffee the and flavours of the
coffee(Fichter and Tiemann, 2020). Also, they also records for sales in ground coffee. The long-
term business goal is to gain a strong position in the marketplace by expanding business in
different sections across the globe.
Market analysis: It is very crucial to analyse the market in which the firm operate their business.
This helps them to target customers in the most effective and efficient way. For such purpose, the
Dimello company uses STP approach: Segmentation: There are different ways in which consumers are targeted. In this case of
Company Dimello, they target their consumers on the basis of psychographic
segmentation and behavioural segmentation. They can segment consumers by knowing
their preferences, lifestyle, opinions and tastes what they prefer to eat and etc Targeting: People who loves drink coffee and enjoy.

 Positioning: The enterprise established a loyal and positive brand image as it serves
services to its consumers with quality products.
The company focuses on their products and services to target the audience and then
generate enhanced profits and revenue. It is quite important to know and analyse the competitors
that exists in the target market such as Starbuck and Costa Coffee are tough competitors. By
analysing competition will help to gains competitive advantage and formulate strategies. By
lower down the prices which helps to attract more loyal consumers(Barrow, Brown and et,al., ,
2018). Moreover, they customise and innovate their services and their products on regular basis
so there is no boredom among the customers. They never compromise on the product quality
which is a huge advantage for the brand like Dimello-
Capital Raised- This is necessary to generate funds for the company that helps to operate
activities in a smooth way. Bank loan should be used by the chosen company that is Dimello
firm as this is suitable to funding. It helps to know the period of payment and interest rates.
They also plans to offer quality products to its target customers in the market.
Market or Sales Strategy: Marketing strategies: Marketing is a process for creating awareness among their
consumers about their offering and brand. Dimello enterprise promotes their goods with
effective marketing strategies. They used social mediums like TV, commercials
advertisement etc. Revenue Sources: The company is able to generate more sales and profit by selling
grounded coffee in the market. Sales strategy: The firm has its focus on the options of online orders and take away
which supports them in improving the revenue and sales. Pricing strategy: Penetration pricing strategy is used by the company Dimello by which
consumers are attracted. They also attract customers by serving their product like coffee
with minimum prices. Marketing and communication strategy: Digital marketing strategy is used by the
company to gain target consumers attention.

Resources-
Research and Development: This is found that the organisation can conduct its research by
exploring the road map of technology. They also can focus on the new and latest trends using
that kind of roadmap. Research and Development team can focus on the latest market trends and
timely inform the firm that how they can innovate their products.
Staffing and operations: This can be observed that workers of the company is very important for
the organisation and that plays a crucial role in the creation and innovation of any further new
product(Sukma, Utami and et,al., 2019). The productivity of the company is also in the hands of
employees. Moreover, the company likes to use divisional structure in the business.
Financial projections:
Main assumptions:
 Coffee is the main product and source of earning and income.
 New people for interview will be invited if in future there will be vacancy in the
enterprise. Suppliers will be paid off within 30 days.

Profit and loss statement:
Balance Sheet:

Cash Flow:

Sales pipeline:
SWOT analysis:
Strengths Weaknesses Opportunities Threats
 This maintains
the quality and
taste of the
product which
is coffee in
 This requires a
good and huge
amount of
investment
where it is
 The demand
and need for
products of
Coffee are high
in young
 Familiar sector
has a huge
competition in
the market. The
chosen firm

order to
increase the
consumers.
 The workers
are the
strengths of the
company as
they dedicate
themselves
and work
together for the
firm.
needed to pay a
certain amount
of interest’s
rates on regular
basis.
 The expenses
in the
campaigns of
marketing is
high and also
shows the
company that it
lacks in
making
awareness.
generations.
That is a great
opportunity to
increase the
sales of the
business.
has fear that it
might lose its
loyal
customers.
Risk Factors-
 More coffee companies in the Market place.
 Substitute product easily available.
 Small firm like Dimello can go in loss as people loose interest in the brand and its
product.
 Financial Instability due to less sales.
TASK 4
P5. Identify exit or succession options for SME.
An exit strategy is made by the plan which is used by the company to leave to their business. All
existing companies requires exit and succession strategy at one point of time, even if it means
only means transfer of ownership when the single owner decides to leave the firm. In case of the
company Dimello, the organisation can use these following options:
Liquidation- this means closing the enterprise and selling off all the assets among creditors and
shareholders(Shpak, Sroka and et,al., 2020). This is most likely the last solution for the firm as

the owner will make money by selling all the valuable items and assets like clients and business
relationships are lost.
Pros:
 very simple to exit.
 This can be a quick process of closing. The owner can have the opportunity to make profit by selling the assets which he owns.
Cons:
 if the company has creditors the firm is liable to pay first from any revenues which is
generated.
 Another option is to pay himself until the finances of business run dry then the owner
eventually has to close the firm. This can be called as the lifestyle business.
 The other investors can be upset with the situation.
IPO (Initial Public Offering): This is basically referred to which a firm first sells
the stock of the company in public. Company typically go through this process to increase the
additional capital(Haider and Tehseen, 2022). When the firm go for this option to go in public
then this is counted as a big step, expensive and there is long procedure and afterward the
company becomes subject and it is required to public reporting.
Pros:
 This is profitable when the firm goes public. This helps to increase the publicity, brand awareness and reputation.
Cons:
 This is tedious, expensive and lengthy procedure.
 Transformation of organisation into public can involve new obligations such as giving
data about the business finances, operations or filing SEC reports and management.
In case of Dimello, liquidation can be best appropriate to exit the business as this is a
standardised process that has some rules which is followed by the liquidator. At the same point,
the creditors and debt holders that would be paid off. Also, the owner of the company will be
stress free.

CONCLUSION
This report can be concluded as the discussion of small company which is Dimello which is
small enterprise of coffee in UK. This can be seen that SME offers the employment which plays
a crucial role in the developing the economy of UK. This is a fundamental which helps to
formulate plans and strategy to grow and work it in the efficient manner. To evaluate
opportunities there are many models which has been used in the report like porters’ models,
BCG matrix, PESTLE analysis and Ansoff matrix etc. Also, there is a discussion which is related
to the sources of funding such as crowdfunding, bank loan etc. Effective business plan will help
business to grow and works the business in such a way which creates lots of opportunities. Exit
and success options must be precisely chosen by the firm.

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