Planning for Growth: Opportunities, Funding, and Business Plan

This report discusses growth opportunities, funding sources, and business plan design for CAFEPOD coffee shop. It explores Porter's generic strategy and Ansoff growth vector matrix to evaluate growth opportunities. It also discusses potential funding sources like bank loans, crowdfunding, and angel investors, along with their merits and demerits. The report concludes with a business plan for growth and exit or succession options for small businesses.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
P1) The key consideration for the evaluation of growth opportunities and elaborate such
consideration to organisation..................................................................................................1
P2) The opportunities for growth applying Ansoff growth vector matrix.............................4
TASK 2............................................................................................................................................5
P3) The potential source of funding to business & merit and demerit of each available source
................................................................................................................................................5
TASK 3............................................................................................................................................7
P4) Design the business plan for growth that include financial information and strategic
objective for the scaling the business.....................................................................................7
TASK 4..........................................................................................................................................11
P5: Exit or succession option for the small business explain the benefits and drawback....11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Growth planning is referring as the strategic action or plan that is undertaken for business
that is useful in managing the business expansion and growth (Anand, and Mantovani, 2021).
The growth planning has ultimate goal or objective to earn higher profit and sustainability. It is
also useful for the organisation in order to make prioritisation their resources on the aspect of
requirement that support the business in competitive advantage and acquire high customer for
their product and service. In this, the growth planning is vital and show the approach which is
strategic and manifest potential outcome for the business by foster the productivity and growth. It
is important to acquire the knowledge which is well related with the planning for growth. The
report usually signifies the CAFEPOD as firm that is independent craft coffee business which is
established in 2011 in UK (CafePod Coffee, 2022).
The report signpost covers the materialistic approach and business tool to the CAFEPOD
coffee shop. The report will emphasise concept and various areas such as growth opportunities,
business plan and success and exist option. It also covers various pathway which is related with
the report that help the business in order to gain the future option through which the growth
option is also implemented and manifested.
MAIN BODY
P1) The key consideration for the evaluation of growth opportunities and elaborate such
consideration to organisation
Porter generic strategy is the framework that is useful to create better understanding
regards with the growth and opportunities which can take CAFEPOD with the vision to the
expand the business in the wider way. The ways and strategies are configuring which is
demonstrated and suitable for evaluating the growth opportunities. It is showing the concept of
framework that is showing the facilitation which is related with the firm that gain competitive
advantage through executing various of strategies business operation (Bondarenko and et. al.,
2020). There are some of the ways of Porters model in the context with the CAFEPOD coffee
which is well explained below:
Cost leadership: In the context to the business strategy which is well suitable in order to
minimise the cost so that it can show their relevance in leading the market and help to sustain the
firm for the longer period. For CAFEPOD, the above mentioned strategies is well useful to take
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the right place in the marketplace as it offers opportunity of minimising the price and offering
additional market edge help to gain the place in the market.
Differentiation: With such strategy, the business keeps to concentrate on the
differentiation with their offering that create identification in the marketplace. In the previous
stage of COFEPOD, they are making their service differentiated in the market which will provide
opportunity of make the place that is additional edge that is must analysed and taking as an
output in comparison with rivals (Harel, Schwartz, and Kaufmann, 2021).
Cost focus: In this, the business strategy is usually show the specific segment that is
concentrated in order to minimise the price. In the context with the CAFEPOD, use of the
strategy can provide opportunity of gaining the recognition those market segment in which they
can decline the price to influence the huge base of customer.
Differentiation focus: The strategy is usually consisting of preparing their offer which is
differentiated in term of rivals with the proper market segment. For the CAFEPOD, it is well
essential in order to make the plan which is showing the market differentiation as it entails
opportunities for further growth to get the attain the growth which is reliable for the firm.
For CAFEPOD coffee shop, the most of the strategy are profitable that is helpful for the
cost leadership strategy. In this, they are reliable to make the surety to the customer in order to
reduce the price of their offering so that they have opportunities to enhance the market and
gather the customer for their service and product. With this, it is show the impact which help to
acquire the high market share their competitor which can be tackled in the significant manner
and show the growth opportunities which is well considered by them in order to face the
prominent issue (Johnson, Pepper, Adkins, and Emejom, 2018).
PESTLE analysis
Pestle analysis which help to show the business to examine that have various external
business environment factor and their impact on the performance of organisation. CAFEPOD
coffee shop implement this model to access market opportunities and threat that is consist in
external business environment.
Political factor: The factor is well referring as the stability that is based on political
segment in the country through which the governmental configuration is well acknowledge by
the business. In the UK, political instability is seen due to the effect of Brexit and they are
impacting the firm and companies in the UK with the negative manner. Brexit is well associated
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with the separation of the UK from the European union and it create high impact on the firm
which is running in the UK. In the context to CAFEPOD, the major of raw material for coffee is
imported from the EU which may impact due to the decision of Brexit where company is not
able to manage the change in appropriate manner which impacts adversely on organisational
competitive advantage (Leick, and Lang, 2018).
Economic factor: Such factor is associated with the economic situation of the country that
include inflation rate, employment rate, foreign exchange and so on. In the UK, the employment
rate is high due to the per capita income and they show positive effect of organisation. The
CAFEPOD is dealing with client from the different region and provide wider service within the
marketplace. CAFEPOD is well benefited economic factor that help to earn profit and enhance
productivity contributing to achieving competitive advantage in dynamic situations.
Social factor: The social factor is associated with the taste and preference of the customer.
In UK, customer is usually emerged with the better choices and they are prone to use the new
feature or offering. In the context to the CAFEPOD, they are updating their offering so that they
meet customer want and their demand of priority. It is usually useful in order to give the
additional advantage which may help to provide opportunities in order to sustain competitiveness
and acquire the growth opportunities as well.
Technological factor: The is gradually associated with the use of technology and
advancement in the business in order to enhance the sale and save time. In the current time, the
UK people are getting close towards the advance technology and they provide additional support
to the CAFEPOD in order to update their technology so that they can acquire the more consumer
and enhance their customer base for sustaining competitive edge. The factor is important for the
company as with the help of using the new technology in the business that they can deal with the
rival due to which they gain competitive edge which is usually attended (Levushkina and et. al.,
2018).
Legal factor: The factor which is related with the applicability of the various law and
regulation which is well taken in the business so that they can avoid the legal complication and
interruptions which may show the negative effect to the business. In the UK, the government is
very rigid towards their law such as safety act and employment act. In the context with the
CAFEPOD, the factor is having high implication as they employment act and safety act while
working in the firm and it also help to attain the high efficiency. With adherence of all the
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legislation, CAFEPOD carry out operational working that contributes in achieving competitive
advantage over other as other companies faces certain situations of not following all legislations.
Environmental factor: This factor is also associated with the proper protection to the
environment which is used by organisation. UK is usually strict towards the law which is related
with the environment and it well impact the CAFEPOD because they used bean of coffee in huge
manner which crop and while drying their residue is disposed which harm the environment that
impacts negatively on competitive position of the company.
P2) The opportunities for growth applying Ansoff growth vector matrix
It is a framework effectively used by organisation to manage and execute the appropriate
strategy that help organisation to grow, increase market approach, attain business goal. Effective
strategies made at proper time help organisation to increase its market by introducing a new
product or service demanded by the consumers (Matalamäki, and Joensuu-Salo, 2021). Strategies
helps in maintaining the proper business operations in a competitive environment. Strategies
need to establish for CAFEPOD coffee shop are:
Market penetration: This strategy used by the organisation to increase sales and enhance profit
in the competitive market. This strategy is less risky than other strategic options. In the context to
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Illustration 1: Ansoff matrix
Source: https://en.wikipedia.org/wiki/Ansoff_matrix

the CAFEPOD, if the market penetration concerns with increase the market shares by current
existing products without introducing any new product. Organisations use advertisements,
templates to promote sales and even cut prices to attract the customers.
Market development: In this strategy, if CAFEPOD focus on increasing the promotion and sales
of the existing product or service within different cities. The organisation tends to expand its
market and increase its reach to the new customers. Before taking any step for increasing the
market to another city or country, it's a better approach to first read and analyse the market of the
particular area and observe that whether the people at particular location need their services or
not. It helps make a visionary data about if the given service will be profitable to the organisation
or not at the preferred location. Then it will help organisation to grow faster and attract more
customers towards the services from the very beginning (Miller, and Hoel, 2019).
Product development: This strategy adopted by the CAFEPOD, if they want to introduce any
new product to the market along with existing product or service in existing market. Organisation
need to research the market properly before launching the product. It will be helpful them to
analyse the demands and needs of the people regarding the product. CAFEPOD must analyse
that what people wants, how can they provide people the service they want or what modifications
they need to made in order to fulfil the market demand.
Diversification: This strategy concerns with the introduction of a new product or service to the
new market place. This is the riskiest strategy used by the organisation. If CAFEPOD uses
diversification then they introduce a new product or service in a market place, of which they
have no experience. The best step organisations can take before establishing the market is
research and study. Proper research about the demands and needs of the people associated with
the particular area and then making the product accordingly can help market to grow efficiently
and effectively. In this, the CAFEPOD is usually taken the market development where firm enter
in new market with the same or existing product.
TASK 2
P3) The potential source of funding to business & merit and demerit of each available source
Funding is a process to avail the money for starting or running a business. Funds can be
needed by an organisation to expand the business, to introduce new additional service to the
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existing market, for development, etc. CAFEPOD require fund to manage the operation and
initiate promotion in term of advertisement. Different sources of funds are discussed below:
Bank loans: Banks are the most preferred source of funding. Bank provide loans to the start-ups
or well established organisations on respective terms and conditions (Morison, 2020).
CAFEPOD will take loan from bank that provide funds only after knowing the reason of taking
the amount and planning regarding the investment of money. Some merits and demerits of taking
bank loans are discussed below:
Advantage Disadvantage
 CAFEPOD can apply for loans at any
time or any place. As banks are
available at every locality in UK.
 Allow organisations to grow and
expand the business without any
interruption.
 Application process is lengthy.
 For the CAFEPOD, high rates of
interest may create burdens and
sometimes banks does not pass the
appropriate amount demanded, if bank
feels the amount demanded is too high
for the given purpose.
Crowd funding: This source of fund is less preferred by the business organisations. In this
funding process, the main source of fund is general public (Nandonde, 2019). The participated
people are not investors and does not demand for any sort of equity in return. Different demerits
and merits are being discussed:
Advantage Disadvantage
 This consume usually minimum time to
raise the fund as possibility which is
high that those who are generally
investing that convert into the loyal
customer.
 For the CAFEPOD, the public interest
can also be enumerated which may lead
to perform appropriate research market.
 It is defined as the complex process and
in order to gather the fund for the
CAFEPOD then they are must require
to convince lot of investor so that the
project that is well initiated.
 The risk of failure which is highly
related with the failure which may help
to retaliate goodwill of the company in
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the various marketplace.
Angel investors: Angel investors provide funds to the small start-ups in the exchange of equity.
It is an individual who provide funds and support back up and demand some percentage of
ownership from the organisation for which they are making investment. These individuals
provide their guidance and experience in order to establish a successful business (Prasetyo,
Setyadharma, and Kistanti, 2020). CAFEPOD will use angel investor which include some
advantages and disadvantages of this source of funding:
Advantage Disadvantage
 CAFEPOD has opportunity to establish
contact with owners if different
organisation that may be beneficial for
them.
 Investors of angel investments are so
experienced and their experience can
help the new start-ups to grow better
and it is also suitable for the
CAFEPOD to expand their business.
 This funding source is comparatively
cheaper and borrower don't have to
return money in case of business
failure.
 In angel investor, CAFEPOD share its
ownership with angel investment. So
complete control over business get lost
due to interference by funders.
 Terms and conditions can be
indeterminate and slow funding
sometimes.
 Average amounts are less than
investment capital.
TASK 3
P4) Design the business plan for growth that include financial information and strategic objective
for the scaling the business
Business plan is an important part of starting a business. Planning is a process of constructing a
map to follow the steps need to be undertaken in order to achieve the defined target or goal of the
business. CAFEPOD coffee shop needs to analyse the market and preference of the regional
population and then make a business plan for business growth.
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Executive summary: Proper planning and successful implementation of plan is important
for a business to grow and operate efficiently. CAFEPOD coffee shop can invest money wisely
and focus on fulfilling the demands of the customer can increase overall sale of the coffee
(Johnson and et. al., 2018).
Organisational overview: CAFEPOD coffee shop in UK serving variety of coffee at a
reasonable price with better seating space to the customers. Coffee shop also focus to provide
customers various offers like price reduction, combo offers, introduction of new authentic
flavours to increase its reach to the customers and grow their market.
Mission and vision of company: CAFEPOD coffee shop has vision to establish a popular
coffee shop and serve authentic coffee to the customers. The coffee shop's owner, mission to
expand the business within cities and mainly focus to cover the university and college areas
where students can afford the coffee at reasonable price and a heavy crowd being maintained to
the coffee shop.
Values and ethics of organisation: CAFEPOD coffee shop works with full ethics and
always tends to provide a quality product to the customers. They also handle all the issues in an
effective manner and make good relations with customers and employees. The working
environment of the coffee shop is also good and friendly (Rahardjo, Hasbullah, and Taqi, 2019).
Good working environment of coffee shop help to retain employees for long period of time and
work efficiently.
Objective:
 To make a good and reputed identity in UK market as a popular coffee shop.
 To enhance organisational profit.
 To increase market, share and become a leading coffee brand.
 To serve authentic coffee to the customers.
Market Analysis:
STP Approach:
To establish a successful business, it is important to analyse the appropriate segment
market and attract target customers towards the business. As CAFEPOD coffee shop attract the
college and university students as they are the organisation's target customers. STP approach can
help organisation to grow and develop the potential market. Some factors of this approach are
discussed below:
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Segmentation: CAFEDOP coffee shop divided the market area during business planning.
Segregation on the basis of demographical, geographical, psychological and behavioural aspects
and focus on fulfilling the demands of the students and regional population and serve them the
menu according to the customer's preferences (Rufini, 2018).
Targeting: The coffee shop makes research regarding the customer's preference such as youth,
adult or children. Therefore, they also focus on the class of people such as premium people or
intermediate audience. In addition, CAFEPOD chose adult with the intermediate class of people.
Positioning: In this, for the maintaining of positioning CAFEPOD used social media platform
and other advertisement, billboard for promoting the coffee bean and their quality help to
maintain the position within the marketplace.
Situational analysis:
To assess different aspects of a business, SWOT analysis is preferred. It includes the assessment
of weakness, strengths, threats, and opportunities with reference to the business. After analysis, it
can be observed in which sector the business need to make new policies or modify the previous
ones and approach to do it. SWOT analysis for CAFEPOD coffee shop reveals some points
mentioned below:
Strengths Weaknesses
 Supported and motivated staff members
have a great contribution in business.
They provide good services and
warming welcome to the customers.
 Availability of different varieties of
coffee make people curious and excited
to visit the place at least at once.
 Better seating facilities with quality and
taste attract more customers to the
coffee shop.
 CAFEPOD has limited customer reach
due to having limited market share.
 CAFÉPOD have weak reserve as per
the financial aspect.
Opportunities Threats
 CAFEPOD coffee shop have a great
opportunity to establish good
 Competitive coffee shop established in
the same locality from the long-time
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relationships with customers on the
basis of their fine quality. It will help
organisation to increase sales and make
profit.
 In addition, they can expand their
business in various local area and
region which is helpful to grow further.
create thread to CAFEPOD coffee
shop.
 Due to the lack of financial reserve,
they have threat that they can survive
with the uncertain situation which is
associated with the loss.
Financial activities:
Financial activities refer to the approach where the appropriate detail related with the
fund is optimised and used for the future implication (Sparkman, 2018). It is important to have
track of all the expenses and in return the sales and profit earned by the company and record data
on monthly basis. It helps business to analyse the investments need to made and analyse the
profit or loss made by the company. Financial data of CAFEPOD coffee shops are mentioned
below:
Particular 31/01/2019 ($) 31/01/2019 ($) 31/01/2019($)
Apply equipment
costing
15000 - -
Expenses in business
promotion
9000 8000 6000
Expenses in
commercialisation
6000 5600 5800
Collections 2000 4000 3000
Training charge 6500 8000 8500
Overall expenses 38500 25600 23300
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Risk plan: CAFEPOD Coffee shops have kept some reserved fund to withdraw the business
from critical situations. Risk management plan help company to deal in difficult situations. A
risk management plan includes identification, analysation, and risk mitigation (Rahardjo and et.
al., 2019)
TASK 4
P5: Exit or succession option for the small business explain the benefits and drawback
Exit options must have adopted by the CAFEPOD in case of business failure. The
organisation liquidates its assets and already pay all the debts and liabilities before exiting from
the business and hand it over to another businessman or organisation. Various options are
available to prefer exit from the business:
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Winding up: It is an exit option in which owner sale all the assets of organisation to pay
all liabilities and all business partners get their shares. Some merits and demerits of this exit
option are mentioned below (Vintilă, Filip, Stan, and Ţenea, 2017):
Merit: CAFEPOD operations stop immediately without any disputes. The major advantage is that all the debts which is well cleared which decline the burden
from the owner of business which lead to focus on the new core of opportunities. The
fund which is remained if any liquidation process can be well invested in the new firm
Demerit: For binding up business activities, a professional need to be hire by organisation. So
control on business get impacted and if evaluation done by professional is not appropriate
then overall worth of organisation get reduced. Business is having a separate legal entity which is also sometime show the ownership of
small business which help to take the loan on their personal guarantee. After that, the
liquidation which may ensure to pay all such loans. In addition, the all assets are sold
which may reduce the possibilities for the future opportunities.
CONCLUSION
From the discussion regarding every aspect in the given report, it has been concluded that
business planning and research provide good route to organisation to work effectively and
efficiently. Management of risk, management of all external and internal factors and
consideration of benefits and losses are important in order to run a business. It is important to
select proper strategy for growth and development of business.
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Online
CafePod Coffee, 2022 [Online] Available through: https://craft.co/cafepod-ltd
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