Planning for Growth

This report discusses the key considerations for determining growth, sources of funding, Ansoff growth vector matrix, and more. It includes a business case with SMART objectives and a market analysis of Bould Brothers coffee, a UK-based company. The report also emphasizes the importance of technology in business growth.

Planning for growth
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Table of contents
Introduction...............................................................................................................................3
Main body ................................................................................................................................3
Key consideration for determination of growth. ..................................................................3
New product and services: innovation (Opportunity) ..........................................................4
Sources of funding................................................................................................................4
Ansoff growth vector matrix.................................................................................................5
Business case.........................................................................................................................7
Exit or succession options...................................................................................................11
Recommendations for business...........................................................................................11
CONCLUSION.......................................................................................................................12
References...............................................................................................................................13
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Introduction
Planning for growth is refer to the process of managing and forming the plans of action
which deliver the assistance in increasing the growth of the company. along with that it
allow the organization to determine the value and opportunity of the association in effective
as well as efficient manner. the present report is based on the organization Bould Brothers
coffee is UK based company. the organization supplies wide range of coffee to the
customers in order to satisfy them in effective as well as efficient manner. the present report
will determine the growth opportunity of the organization for further consideration. Along
with that the report will demonstrate the method of funding that help in determine the
benefits and disadvantages of types of funding. Furthermore, the study will develop business
plan for growth and way of exiting in forthcoming time the company will utilize.
Main body
Key consideration for determination of growth.
For the success of the business enterprises it is important to determine the values, mission
and vision of the company in effective as well as efficient manner. the aim of the
organization is to increase the sale of the company and satisfy large numbers of potential
customer (AlMuhayfith, and Shaiti,2020). In order to get success the organization has the
key consideration which the organization can use are mentioned s follow:
Requirement of the customers: for satisfying the customer it is important to consider the
requirement of the individual in order to deliver right product to the right customers. after
the covid 19 the taste of the customers are changing so the customer should deliver the
coffee as per the individual persons preferences. In order to address the demand of the
consumer the company focuses on the taste and preferences of the consumer.
Competitive analysis: the Bould Brothers deliver wide range of creative coffee to the
customer in order to satisfy them in effective as well as efficient manner. due to this the
organization is able to deliver tough competition in the market and defeat the competitors.
With the consideration of competitive analysis the organization increase the scale of the
growth in an appropriate manner.
Strategic relationship: for the growth of the company the association will develop the
relationship with the wide range of the customers. in order to that the company keep in
innovating the product in an appropriate manner. The company develop long term
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relationship with the customer and supply for offering the best quality coffee and service to
the customers. due to that the company is attracting the customers toward the brand and
increase the sales of the company (AlQershi,2021). for that the company also deliver values
to the customers. therefore, it is growing organization so it has opportunity to strengthen the
image of the company and lead the marketplace in the future.
New product and services: innovation (Opportunity)
Right now the product and services of the company is decline stages so the company need
to generate profit from the marketplace. at this stage the organization need to promote the
business for increasing the awareness among the people in adequate manner. for increasing
the scale of growth the organization will keep innovating the product and services of the
organization in effective as well as efficient manner. it will deliver assistance in satisfying
the customer toward the new coffees of the organization and boost the productivity as well
as profitability of the company. The company has the opportunity to lead the marketplace
with the innovative product and services of the company. Furthermore, the organization will
collect the feedback from the customers in effective as well as efficient manner in order to
improve the services and productivity.
Porter generic strategy
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Figure 1: Porter generic strategy
There are four basic strategies which can be used by the company i.e.
Cost leadership: With the help of this leadership, company can increase profit by
offering products at low cost. Bould Borthers can also use this methodology in order to
improve the business performance and increase the market share as well.
Differentiation: It provide products at different manner and also helps to create a
better outcome in order to raise the business performance. Also, it can be stated that Bold
Brothers uses this methodology then they are able to deliver the high quality products and
effective sales and marketing can be implemented to meet the defined aim.
Focus: With the help of this strategy, company concentrate on particular niche
market and understand the unique need of customers. Also, the chosen firm uses this strategy
then it will help to build strong loyalty among customers.
Differentiation focus: With the help of this methodology, company can improve the
performance by offering the products with unique features and attract the customer. Bould
Brothers also uses this strategy in which it offer the coffee on the basis of the customer need
that helps to create a better outcome.
Importance of technology
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In the present era, technology also help the company to improve the business
performance because it assist to create a better outcome. Bould Brothers can use the advance
technology such that robotics in order make inventory management so that best outcome can
be generated. Also, social media can also use by the firm in order to increase the promotional
activity of the firm so that range of customers can be attracted. With the help of technology,
company can also make exchange of information so that effective outcome can be generated.
Sources of funding
Business have various opportunities to seek funds for their business and brings a
private investors for the business growth as well as self funding can also be done by the
business for growth of company. The business needs the financial for growing business in
the terms of small growing business. Business can raise the funds for small business with the
4 F's such as family, friends, founders and fools. Those people are helps in develop the
business and bring forwards to business gets on feet. Small business can also reuse funds
from the joint ventures, partnership, banks loans, etc. once the business revenue growth then
the company can easily refund the funds to the investors and banks (North, 2022). But the
business needs to evaluate the financing needs such as identify the need for funds, how much
capital needs and many more. It is the most important decision of small business because it
helps in decide the growth and development of organization. So, company can also take the
time to evaluate the needs of financing.
There are various sources of funding for the small business such which are
categorized into the debt financing and equity. The sources of financing are savings, banks
loans, venture capitals firms, crowdfunding, etc.
 Own capitals: The own capitals and saving is the easiest form of sources of funding.
The business can also sells the assets to raise the money as well as take loans on any
assets. Business can take the personal loans such as mutual funds, jewellery, real
estate to raise the money for business. Organization can invest the personal capitals
in business as equity capitals as well as they can give the loans to their own
company.
 Banks loans: Every bank have the specific departments to offer the loans on the
terms and conditions to the small finance companies (Bryant, 2020). Company need
to qualify the minimum criteria for the bank's loan to get as loans form the banks.
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Banks have the own criteria regarding the credit scores, annual turnover and earning
potentials, etc. banks provide the various types of loans such as terms loans, capitals
loans, working capitals loans, long against property etc. the small business can select
the loans as per the requirements.
 Angel investor: This sources of funds are types of the private investor. Such private
investors provide the loans to the business in only early stages in their business
cycles (Janaji, Ismail and Ibrahim, 2021). They invest in the emerging business in
exchange for ownership stakes and equity.
 Crowdfunding: It is the new method that the business can consider in the sources of
funding. The crowdfunding is the process of raising funds by dealing the small
amount of funds from the large unit of group. It is the flexible proposal for the small
business as per their requirements. This source of funding helps in gain the
popularity after rise of social media just because it helps in reach a number of
members and peoples by putting the minimal attempt.
 Invoice factoring: With the help of this, company can sell its outstanding
invoices to a lender and this might pay the company up to 70% to 85% up front
so that decision can be taken.
Particulars Pros Cons
Bank loan  Keep control over the firm
 Can provide interest which is
tax deductible
 Charge high interest rate
Angel
investor
 Can be accessible at all
location
 Limited paper work
 No need for monthly payment
 Funding can be slow
 Average amount is less than
other
Crowd
funding
 Low risk
 Increase the exposure
 Feedback collection
 Difficult in getting noticed
 High fees and have to
comply with the strict rules.
Invoice
factoring
 Better chance of getting
approve the fund
 Charge high price
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Ansoff growth vector matrix
Growth is the special concern for the business. To success the sustainable growth in
the business then the business needs to determine the various ways which helps in expand
business. It is one of the effective plans of action which the organization consider in order to
expand the business in domestic as well as international marketplace. with the assistance of
this model or the strategy the organization is able to determine the products and markets
growth strategy for the long term success and survival (Zanjani, 2020). The Ansoff matrix is
the strategic planning tools which helps in shows the different ways business can grow
through with market expansion and develop products. These different ways include the
market penetration, product developments, market developments and diversifications.
Figure 2: Ansoff growth vector matrix
 Market penetration: the market penetration is hods the lowest risk. Market
penetration is the strategy of business to sells the most of existing products into the
familiar markets and where the business have the existing relationship with the
customers. This strategy includes the acquiring the competitors in market, increase
markets efforts as well as decrease the price of products to attract the new customers
and retain the customers within the market segments.
For example: Bould brothers coffee company could expand by providing the loyalty
programs that helps in reward the returning customers with the free baked cookies ans these
strategies helps in attract the new customers and retain the customers in business (Tsatsoula,
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2018). Those customers who are sign for the newsletter than offer one coffee free with
another.
 Market development: Market developments is hold the least risk because this
strategy not require the investment in the products developments and research and
developments. This strategy allows the management teams of business to take them
in different and new markets as well as leverage the existing products in market.
Market developments approaches includes that entering in the new domestic markets
for the regional expansion, enter in foreign market for international expansion and
offers products to the various customers segments.
For example: Bould brothers coffee company expand their business in the different
demographic with the helps of advertising and logistics infrastructures as well as decide to
expand in the foreign markets and it's less risky.
 Product developments: It involves the create new products for existing customers
base of company. Offer the new products to the retain customers is created the
interest in business. The products developments approach includes the develop a
services for the existing products, creating new products, partnering with business to
provide a packaging with include the business products and acquire a competitive
advantages (Naim, 2021). It is the risky and expensive because the build a new
products image in the existing customers base and competitive market is difficult and
much more risky.
For example: Bould brothers coffee create the new products such as Dalgona coffee then it
helps in create the interest in existing customers and that become the popular among the
young generation age. It helps in expand the brand's loyalty as well as build brands image.
 Diversification: This strategy is hold the high risk because it involves the new
products for the new markets rather than the product developments in the existing
market. Diversification strategy is start form the new points and scratch.
For example: Bould brothers company offer the new products which are totally different
form the business in new markets.
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Business case
Aim: to increase the sales of the company and satisfy large numbers of the customers in
appropriate manner.
SMART objectives
specific: the objective of the company is to enhance marketing share and sales of the
company.
Measure: to increase the profit of the company by 25%.
achievable: the organization can accomplish the goal by increasing awareness among the
people with the assistance of online platforms.
Realistic: the organization target the new customer and recruit new candidate for the
satisfaction of the customers.
Time bond: the organization will accomplish the mission of the company at the end of the
year.
Background
the Bould Brothers coffee refers to the coffee enterprise of the UK which deliver the best
quality and standard coffee to the large numbers of the customer in order to deliver the
relaxation. Basically it is private limited company which deliver delicious coffee with the
assistance of highly trained staff members. The organization is on decline stage so the
company need to increase the brand value and a way to which the buyer can approach the
coffee shop effectively.
Market analysis
swot analysis of the company
Strength: the organization deliver the best coffee to the customers according to the taste and
preferences of the individual person. Along with that the organization has skilled workers
for serving the customer in appropriate manner (Haider, and Tehseen, 2022) . The quality
of the company is quite good that deliver satisfaction to the customers.
Weakness: the organization has low brand values in the marketplace. The company's
promotional strategies are not much effective. Furthermore, the organization need to focus
on it and improve the services of the company with the innovation and creativity.
Opportunity: the organization has the opportunity to attract large numbers of the customers
toward the brand and increase the presences of the company in domestic as well as
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international marketplace. Along with that the organization deliver more values to the
customer and develop long term relationship with the consumers(Williams, and Ramdani,
2018).
Threats: the organization facing high competition in the domestic as well as international
marketplace. The biggest threat of the company is the changes in the market trends which is
required to address in effective as well as efficient manner.
Pestle analysis
political: due to the implementation of the rules and regulation of the government the
organization is able to deliver transparency and build the trust of the customers. The stability
of the political party allow the organization to deliver the values in the marketplace and keep
delivering services to the customers(Haleem, Jehangir, and Ullah, 2019).
Economical: due to the stable economy the business suppose to pay the lower taxes and
imposed low taxes on the bills too. It delivers support in reducing the costing of coffee and
serve the customers in lower prices.
Social: due to covid19 the taste of the customer is continuously changing and marketing
trend is also changing. For fulfilling the social needs the individual shift toward the different
brands. The different customers have different demand for the product and services. The
marketing trend is keep changing in the social media due to that the company need to keep
innovating menu and creativity of the organization.
Technological: the large numbers of the customers are depend on the various technological
elements. The consumer makes the decision of buying by collecting the reviews on the
social media platform. Along with that the customer utilized the technological platform for
the payment(Kamariotou, and Kitsios, 2018).
Legal: the rules and regulation of the nation allow the organization to deliver the loyalty
program. With the assistance of the legal system the organization is able to deliver the
values to the customers. With the precautions of the legal system the organization is able to
save the company from the lawsuits.
Environmental: in the current period the people are becoming more conscious about
environment. The people are Wellings to acquire the services which are eco-friendly and use
the material for serving and delivering coffee which is recyclable. It delivers assistance in
attracting the customer toward the brand.
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Market segmentation
Segmentation: the organization will target the professional and the youngster in order to
deliver right product to the right customers. The targeted customers of the organization will
be aft the age of 16 to 42 years old. The coffee decrease the stress of the individual person
in order to that the company deliver the best coffee for providing relaxation from the busy
schedule. Along with that the people have variety of coffee as per their taste and preferences.
Targeting: the organization will target the audiences as per their willingness to pay and
obtain the services of the organization. Furthermore, the potential customers has the ability
to afford the coffee on the regular bases. The organization target the low and middle income
group as it is on decline stage and small medium size business(Kitsios, and Kamariotou,
2018).
Positioning: the organization is not having much reputation in the marketplace due to lack
of utilization of the technology or adequate technological platform. In the market of UK the
company face high competition due to continuous innovation.
Marketing mix
For increasing the value of the company and attracting the large numbers of the customer the
organization will use element of marketing mix which are elaborated as follows:
Product: the organization deliver variety of the coffees to the customer which are natural
and healthy as large number of people are becoming health conscious due to covid 19.
difference people have different taste and preferences due to which the organization will
launch the feature of customized coffee in which the employees will prepare coffee as per
the requirement of the consumers.
price: the organization will offer the best quality coffee to the customer at the lower prices
which is affordable by each and every targeted customers. The lower prices of the company
will attract the large numbers of customers toward the brand. In order to that the company
will reduce the manufacturing price (Quintero-Angel,2018) .
place: the organization will deliver the coffee in the central area of London where .lots of
offices are available because it will be easy to approach the targeted customers of the
organization in effective as well as efficient manner. Along with the organization will use
online application for ordering the product directly from the association.
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promotion: for increasing the brand awareness the company will utilize various social media
platform that includes Facebook, Instagram, Pinterest, google etc. due to that the
organization will improve the brand value in different marketplace. Due to that the
organization is able to collect the reviews of the client and encourage them to buy the
product of the company in an appropriate manner. Along with that the company is able to
deliver the information about the discount, bonuses, and new product to the customer
effectively(Rahman, Manjang,and Ilham,2018).
Budget
For the operation of the business the organization will require the capital for the investment
in order to bring the innovation. The organization will invest the capital approx $375,000
for bringing the innovation and renovation in business enterprises. In context to that the
organization will collect the fund from the bank in form of loan for the investment.
Basically the bank will be the sources of funding for the organization.
Monitoring and controlling
For the satisfaction and performance of the business organization it is important to monitor
the performance and operation of the company in effective as well as efficient manner. The
organization will use keep performance indicator for determining that the employees are
delivering their efforts in the organization in order to accomplish the goal of the company or
not. With the assistance of monitoring the company will find out the issues which the
customers are facing and employees are having while performing the task of the company.
Along with that the organization will provide training and development programme to the
employees in order to improve the working condition at workplace (Susanto, Titisari, . and
Prajitiasari, 2021). Along with that the responsible person of the organization will provide
feedback to workers which includes positive as well as negative.
Particulars Year
1 (£)
Year 2
(£)
Year 3
(£)
Cash
inflow
Opening
cash 10000 68800 120300
Sales
income 45000 50000 48000
Loans 25000 22500 25000
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Capital 10000 1000 9000
Total cash
in flow 90000 142300 202300
Cash
Outflow
Salaries 15200 16000 16000
Operating
expenses 1000 1200 1200
Loan
payment 2000 1800 2000
Capital
expenditure 3000 3000 3000
Total cash
out 21200 22000 22200
Net cash
flow 68800 120300 180100
Exit or succession options
There are various strategies for the small business that they want to put business in
existing and succession options. There are many numbers of strategies options which can be
considered by the business with the helps of most effective process such as selling the
business, direct succession, shut down, IPOs, etc.
 Direct succession: The succession strategies involves the passing in the business to
the partners, employees, family members and group of partners. It helps in
successfully assume the key roles of company and the owners of the company needs
to ensure that the succession plan must be in place so the business can run smoothly
and effectively at the absence of owner but business can get lost (Brand, 2021).
 Selling business: It is the hybrid succession strategy their can be business success by
selling to the partners, family members, third party, etc. business sells to the third
party include the selling to the competitors and friendly buyers for run the business in
effective ways. But selling to the third party can also mislay.
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 Shut down: If company face the high challenges and loss then business require
to wind up the company and it is the best options sometimes. In other words,
walk away from the company by taking money out of the company and it helps
in future moving forward.
Particulars Pros Cons
Direct succession  Motivate employee to
stay with the firm
 Cost saving
 Improve the financial
performance
 Very difficult to determine
the succession planning
 Resisting bias
 Maintain the company
morale but lead to increase
the conflict
Selling business  The rights of the owner
can be decreases
 Can start new business
when the ownership had
finished
 It is a time consuming
method and lengthy
 Legal cost of this planning
is expensive
Shut down  There is no any dues of
the business
 The chances of getting
involved in the business
will be high
 Can use the money in
another business due to
selling the assets
 The ownership of the
company has closed
 Time and money are play
an important factor
Recommendations for businesss
Company can start the rewards and loyalty programs for the customers to attract
them with new creative way. Company can also adopt the marketing strategies for develop
the products and services with the helps of offering the free Wi-Fi to visiting customers
(Najafian, 2021). Bould brothers coffee can also offer the some snacks for new customers at
free of cost that helps in regain the new customers in coffee shop. In other words, offer the
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incentive to new visitors in coffee shops. The company can also host the special events
which helps in attract the customers and promote it as well as decor coffee shop according to
the festivals and treat customers as well.
CONCLUSION
As the conclusion, Planning for growth is the strategic activity for business to
become success and achieve targets in business future. This is opportunities for business to
acquire the more customers and increase market shares. Bould company adopt can determine
the various strategies for business developments and business plan for growth. In the
conclusion, This report discussed the opportunities available to the business and competitive
advantages for the business as well as assist the Ansoff growth vector matrix. This report
also elaborated the sources of funding and select the best for business and develop business
case with the company SWOT analysis as well as explained the exit and succession options
for business and then recommend for the business.
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