Planning for growth

This report outlines the growth options for the company by using the Ansoff Growth Matrix and the various opportunities available to the business. The report also highlights the basis of competitive advantage and the options for financial growth and sources of funding. The best exit and succession option for the company is merger and acquisition and the best source of funding is taking loans from the banks. The subject of the report is planning for growth and it is relevant for business management courses.

Planning for growth

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explanation of the basis of competitive advantage and opportunities available to the business 3
Growth option for business by using Ansoff Growth Matrix......................................................5
Evaluating the options for financial growth and sources of funding...........................................6
Exit and succession options for business.....................................................................................8
Recommendations to the business...............................................................................................9
Business Plan...............................................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning for growth allows the business to assess that how the company is performing
and helps in identifying the areas of opportunity. By identifying the opportunity it makes the
business to expand in market in the near future. The current report is based on the Small Street
Espresso which is the small coffee shop in the UK. The coffee shop used to provide the cakes
and sandwiches to their customers. The report will outline the explanation of the basis of
competitive advantage for the business and the various opportunities available to the business.
Further this report will outline the growth options for the company by applying the Ansoff
Growth Matrix in order to grow in the market. The report will also outline various options for the
financial growth and the sources of funding for the small business. Moreover, the current report
will outline the various exit and succession options for the company with its benefits and
drawbacks that helps them to survive in the market. At last this report will highlight the business
plan for the company in order to expand its business and recommendations.
MAIN BODY
Explanation of the basis of competitive advantage and opportunities available to the business
Competitive advantage refers to the elements that used to allow the company in order to
produce the best goods and services. These factors allows the organization to be more productive
in order to generate the more sales and high margins in order to compare it with the competitors
in the market (Dagnino, Picone and Ferrigno, 2021). The competitive advantage is must for the
company as it used to differentiate its business from the competition. It makes the business to
highlights the products, location, services etc. which helps the company to increase the
profitability by selling the more products. The business will able to meet the competitive
advantage by charging the higher than the competitors. By having the good and high prices it
will help the company have the good brand image in the market. The competitive advantage is
very crucial for the owners of the small firm as it helps them to gain the market share.
PESTLE analysis

Political factors
As it is the small firm the
company will not face the
problems related with the
political leaders. The small
business must maintain the
political stability in the market
which helps them to gain the
market share.
Economic factors
by the happening of the
pandemic, the unemployment
arises that may decrease the
profitability of the company.
The company must focus on
the economic conditions in
order to rise in the market.
Social factors
This is one the crucial factors
as the people are having the
great lifestyle. By changing in
the trends will attracts the
customers to visit the cited
organization.
Technological factors
The company must ready to
make the innovations in their
makes menu (Fichter, and
Tiemann, 2020). They must
provide the unique beverages
and food, which makes the
customers to attract to their
coffee shop.
Legal factors
As this is the small business
there are less employees in the
organization. But the company
must follow the laws and
policies related to the
employees which makes the
staff satisfied in their working.
Environmental factors
The small coffee shop in UK
must also focus on the
awareness of the climatic
changes as the government
used to impose the various
regulations in the market. So
the cited organization must
focus on the more use on the
sustainable products.
Porters five forces
Forces Description
Threats of new entrants The threat of new firms in this industry is high
as there are low hindrances in order to enter
this industry. So the small business must
produce the new and innovative food and
beverages in order to maintain the customers.
Bargaining power of supplier The bargaining power of the suppliers is low as
the company has large number of suppliers. As
there are various small coffee shop in the
market of UK which may affect the

profitability of cited organization.
Bargaining power of customers The bargaining power of customer is high as
there are same types of firm in the UK. The
customers also used to follow the brand loyalty
which may affect the revenue of the firm.
Competitive rivalry In order to have growth in the market, the
company used to face the competition in the
market.
Threats of substitutes There is the high threat of the substitutes in the
market as there are availability of the various
substitutes in the market. As tea is the major
substitutes because people mostly prefers to
have tea rather than coffee.
From the above analysis it can be seen that the company must focus on the economic
factors as after the happening of the pandemic it has affected the profitability. The organization
must also focus on the social factors as well, as it helps the firm to attract the customers in the
market by having the innovations. As there is great threat of new entrants and substitutes so this
is the key consideration for the company to have innovation in their small business.
Growth option for business by using Ansoff Growth Matrix
The Ansoff Matrix is also called the Product or market expansion grid tool that helps the
firm in order to analyse and plan the strategies for the growth (Hossain, Akter and
Yanamandram, 2021). It is used in order to identify the strategy that the business must use in
order to increase the profitability. The matrix is described as below:
Market Penetration: In this strategy, the company used to grow by using the existing
offerings in the already existing markets. This is also described as the increase in the market
share in the existing market (Chintalapati, 2020). This can be used by selling the products or
services in order to establish the customers or by having the new customers in the existing
markets. The company used to increase in the sales for the present products in the market.
Market Development: In the market development strategy, a firm used to expand its
business in the new market by having and offering the existing offerings. This can be

accomplished by using the different customer segments and the new area or region in order to
sell the existing products. This type of strategy is most likely to be successful where the unique
product technology is used. This used to benefit from the economies of scale if there is increase
in output.
Product development: In this development strategy it helps the company try in order to
make the new products or services in the existing market to achieve the growth. This can be done
by having the proper research and development of the new products. This will help the company
to have the new product in the market that helps them to grow its market share.
Diversification: In this growth strategy, a company tries to grow its market share by
launching the new offerings in the new markets. This is one of the most the riskiest strategy as in
this both the market and product are new (Zanjani and et.al., 2020). This is of two types related
diversification and unrelated diversification.
The cited organization can use the diversification development strategy that helps the
company to grow in the market. This can be done by the company by having the new product in
the new markets as well. This will make the company to grow in the markets and increase the
profitability. This is risky for the company as both the product and market are new which used to
help the company to gain profits in the market. But by taking the risk the company can grow in
the market and increase its market share. This strategy for the company to grow by starting or
acquiring the business outside the market that helps them to grow in the market.
Evaluating the options for financial growth and sources of funding
The financial growth refers to the growth that helps in increasing in the production of the
economic goods and services. This helps the company to access the finance and helps them to
grow in the market. There are various funding sources available to the organization which is
described as below:
1. Retained Profits: These are the undistributed profits of the company which helps the
company to not to take fund from the outside. As not all the profits made by the company is
distributed among the shareholders (North and et.al., 2022). Some profits are retained by the
company which helps them in any urgency.
Advantages Disadvantages
 No interest payments done by the
organization.
 There is decrease in the profits of the
company.

 The organization has not to manage the
fund from outside.
 Retained profits are not available for
the start up business.
2. Loans: The large amount of capital or money is drawn from the banks or financial
institutions for having the long term projects (Yusopa and et.al., 2020). This will help the
company to have the development and expansion of the business.
Advantages Disadvantages
 Large amount can be taken by the
company.
 Interest is lower than the overdraft from
the bank.
 The Collateral security is needed in
order to take loans.
 High interest is charged by the banks.
3. Debentures: This is the another source of funding which helps the company to raise its
debt capital by issuing the debentures. The holders of the debentures basically not the owner but
it is the long-term creditor of the company.
Advantages Disadvantages
 The interest of debentures is treated as
the expenses as it is charged against
profit.
 The interest on the debentures is to be
even if the company s not making the
profit.
From the above different sources of fund the company can take the loans from the banks.
This is one of the easiest method for the company to increase the findings. The cited small
business can also take the funding or loan from the other financial institutions as well. This will
helps the company to take the long term amount from the bank and organization will pay the
interest against this, the bank or other financial institution used to take collateral security against
the loan (Poole, Fallon and Sen, 2020). By taking the loans from the banks it will help the
company to develop and expand the business. There is the benefit to the cited organization that
interest rates are lower that the bank overdraft. The company has to put the security against
taking the loan that used to provide the security to the banks in order to provide the large
amount.
Critically evaluating current business situation and best sources of funding
As the cited company is the small business and the want to expand its market, so they can
take the loan from the bank. By taking the loan it will help them to raise its capital and have

expansion in the market. The company is having the benefit by taking loans from the bank as it
helps them to expand its business in the UK market.
Exit and succession options for business
There are various options available to the small business that helps the small business to
grow in the market. If the small business is making money, this exit and succession options helps
the company to increase its business in the market (Brand, 2021). By implementing the best
strategy it helps the organization to overcome from the losses. The exit and succession options is
described below:
1. Merger and acquisition: This is one of the most popular exit strategy for the owners
of the business. By having the merger and acquisition it helps the business to stay and survive in
the market.
Advantages Disadvantages
 Helps the company to survive in the
market.
 Increases the markets share of the
company.
Has the ability to negotiate with the
other firms.
 It creates the conflicts between firms.
 It provides the financial burden on the
company.
 Some employees looses job by having
merger.
2. Liquidate the business: This is the exit option that makes the company to go on the
final part. This is basically the close up or the sell off of the business by the owners of the
company.
Advantages Disadvantages
 Easy way to exit from the market.
 Helps business to set off the
outstanding pays and debts.
 Makes the company to out from the
competitive market.
 No growth of the company in the future
as it is wind up.
3. Direct Succession: This is also one of the easiest method of having the exit and
succession from the market (Segal, Guthrie and Dumay, 2021). The succession strategy helps the
company to pass the business to its family member, partner or to the employees.
Advantages Disadvantages

 It used to protect the business from
uncertainty.
 Helps in minimizing the recruitment
costs.
 Wastage of resources by passing the
business.
 It is not sure that another person will
run the business or not.
Comparing and contrasting the options
There are different market entry modes which helps the organizations to grow in the
market. Merger and acquisition helps the company to merge with another company in order to
operate its business. On the other hand liquidation of the business makes the company to have
exit from the market. In the direct succession entry mode it helps the company to pass the
business to its family member, partner or to any other person. From this comparison it can be
recommended to the company that they can adopt the merger and acquisition market option to
exist in the market.
By comparing with the above options it can be stated that the company can opt the merger
and acquisition that helps the company to increase the market share of the company. By this it
helps to have the negotiation with the other companies which helps them to grow in the market.
Recommendations to the business
 The cited organization can use the merger and acquisition option that helps the company to
merge or acquire another company.
 This will help the company to raise its financials by merging with the another company. By
doing the merger and acquisition it helps the small business to stay and survive in the
market.
 This will increase the market share of the company which helps the company to have the
good profitability in the market (Caiazza, Galloppo and Paimanova, 2021).
 This is one of the best option as it helps the company to have the wider range of product and
services to be explored in the market.
 By this the portfolio of the new business can be increased and gain the larger market share.
Business Plan
Overview of the business: Small Street Espresso is the amazing service provider used to
sell the beverages and sandwiches to their customers. The cited firm is situated in the Bristol's

Old city since the year 2012. The company used to offers the takeaways services which helps
them to have increase in the profits.
Vision: The vision of the small coffee shop is to improve the lives of the customers and
must promote the common humanity in the market. The aim is to provide the best freshly roasted
coffees with the excellent prices.
Mission: The company used to provide coffee connoisseurs by having the wide array of
choices that satisfy the discriminating things and promotes to have humanity. The mission
statement of the business is to provide the best customer services as possible.
Objectives:
1. The company has to increase its market share by 10% in the next 3rd quarter of the
next year.
2. The company has to increase its sales by 25% in year-end 2022.
3. To increase the profits by 40% by the next year 2023.
Pestle analysis
Political factors
This is the small business as this will not
be affected by the policies related to the
government. In order to plan some
innovation in food, it will not affect the
company.
Economic factors
By the happening of the COVD- 19 it has
affected a lot. So, in order to bring new
services the company must also focus on the
market. This may affect the profitability of the
small business.
Social factors
The organization must focus on the
changing trends and lifestyle in order to
produce the foods and beverages
accordingly.
Technological factors
By ding the innovation in the menu of the
small business it will help them to make more
customers in the market.
Legal factors
This is the most crucial factors which the
company must focus on (PESTLE
ANALYSIS, 2022). The cited firm must
follow the laws and policies related to the
staff. This used to make the employees
Environmental factors
The cited business in UK must also on the
awareness and the climatic changes as the
government used to impose the various
regulations on small business. So the cited
organization must focus on the more use on

satisfied in their working. the sustainable products which helps them to
grow.
SWOT analysis
Strength
The strengths of the company is that they
have good corporate culture and the highly
motivated staff that helps them to bring
the innovation (SWOT Analysis of a
Coffee Shop Business, 2022).
Weakness
The weakness for the company is that the have
limited access of the marketplace. As the
company is working in the markets of the UK
since 2012.
Opportunity
The best opportunity for the company is to
develop the customer relationship culture
and have the innovation in the market.
This will make the company to build the
stronger customer relationships.
Threats
The threat for the small business is to limit the
profit level in order to attract the customers.
The threat of the competitors s also very high
which may affect the profitability of the
company.
BUSINESS CANVAS MODEL
Key partners
Suppliers of the
coffee shop.
New company by
which company
will have merger.
Key activities
Maintaining the
facilities and
infrastructure.
Value
propositions
Low prices and
high quality of
goods and
services.
Customer
relationships
Having the
retention of
customers by
providing high
quality of
services.
Customer
segmentation
Adult and young
customers.
Key Resources
Chefs
Customers
handlers
Channels
Social media
Cost structure
Customers
Revenue
Streams

services.
Food making.
Ingredients of the
products made.
Time and
material.
Marketing mix
 Product: The new product the company is launching is 'Chocolate Sandwiches' which
makes the customers to come in the coffee shop. The product will be reasonable and will
be make according to the health conscious people.
 Price: The price of the new product is very reasonable as everyone can buy the sandwich.
As it is the small coffee shop in UK so the price is decided accordingly which helps them
to have good profits.
 Place: The new product will be served in the coffee shop and also provided to the
customers in takeaways services. There is the retail pricing strategy chosen by the
organization.
 Promotion: The promotion of the new type o sandwiches will be done by using the
social media websites. It can also be done by adding the new product by highlighting the
product in the menu of the small coffee shop.
 People: The people include anyone who will be visiting the company in order to avail the
services. This new product can be eaten by any type of people and mostly by kids as it
contains chocolate.
 Packaging: This used to attract the customers in order to buy the new product. As in the
coffee shop the staff will be serving the product in the dishes but in takeaway services
they must pack the order which maintain its quality.
 Process: By making the product with the good process makes the customers to eat the
new product. As it is more focused and will be taken the sugar free chocolates which can
be eaten by health- conscious people as well.
STP approach
 Segmentation: As there are various types of customers which helps the company decide
the groups in order to have the best segmentation practices (Chi and et.al., 2019). As they
used to sell its products in the same geographic market only.

 Targeting: The target customers of the new product is basically Kids and adults. But this
can also be eaten by the health conscious people because there is also use of the sugar
free products.
 Positioning: The positioning of the new product is to provide the health food and
beverages to the people in the market of UK.
Competitor analysis
Basis Street Small Espresso Plc. Salt and Smoke Plc.
Products The company used to sell the
food items and beverages.
This used to sell the variety of
food dishes to the customers.
Positioning To provide the healthy food
and beverages to the health
conscious people
The positioning is to attract the
customers by having
innovation.
Budget

Particulars January February March April May June
Cash
inflows
Opening
cash flows
4000 5500 6000 6200 6500 7000
Sales
revenue
12400 13440 14880 15600 16120 18000
Other
income
1000 1500 2500 2700 3500 3500
Total cash
inflows
17400 20440 23380 24500 26120 28500
Cash
outflows
Material 500 1200 2000 2200 2700 3500
Labour 1000 1000 1000 1000 1000 1000
Other
expenses
1500 1600 2000 2000 2200 2200
Total cash
outflows
3000 3800 5000 5200 5900 6700
Cash deficit/
surplus
14400 16640 18380 19300 20220 21800
Monitoring and control
In order to bring the new product the company must monitor the quality and quantity
while serving it to the customers. This will help the company to gain the more customers which

will increase the profitability of the company. The staff and manager of the company must be
focused and check on timely basis. The company can use the benchmarking method that helps
them to compare its actual outcome with the made budget. By this it will help the company to
improve its business in the market and earn profitability.
CONCLUSION
From the above report it is concluded about the meaning of the basis of competitive
advantage for the business. The report has also evaluated about the opportunities that are
available to the business. Further this report has described about the growth options for the
company by using the Ansoff Growth Matrix in order to grow in the market. The report has also
evaluated about the various options for the financial growth and the sources of funding for the
small business. Moreover, the current has also described about the various exit and succession
options for the company by describing its benefits and drawbacks that helps them to survive in
the market. At last this report has evaluated the business plan for the company in order to expand
its business and recommendations to the business. This will help the company to grow in the
market by selling the new product in the market.

REFERENCES
Books and Journals
Brand, T., 2021. Developing your advice business: Part 1: Understanding your options for
succession. MoneyMarketing. 2021(4). pp.14-14.
Caiazza, S., Galloppo, G. and Paimanova, V., 2021. The role of sustainability performance after
merger and acquisition deals in short and long-term. Journal of Cleaner
Production. 314. p.127982.
Chi, P. W. and et.al., 2019. MigrateSDN: efficient approach to integrate OpenFlow networks
with STP-enabled networks. International Journal of Computational Science and
Engineering. 20(4). pp.480-491.
Chintalapati, S., 2020. BankBuddy. ai—Business Expansion and Marketing Dilemma: A Case
Study to Discuss the Ansoff Growth Matrix Concepts Combined with Business
Expansion Strategies for Expanding into Emerging Markets. Emerging Economies
Cases Journal. 2(1).pp.44-53.
Dagnino, G. B., Picone, P. M. and Ferrigno, G., 2021. Temporary competitive advantage: a state‐
of‐the‐art literature review and research directions. International Journal of
Management Reviews. 23(1). pp.85-115.
Fauzi, R. U. A., 2021. The influence of business plan competition and loan provision on
nurturing the spirit of entrepreneurship among students. Advances in Economics,
Business and Management Research, 161, pp.188-192.
Fichter, K. and Tiemann, I., 2020. Impacts of promoting sustainable entrepreneurship in generic
business plan competitions. Journal of Cleaner Production. 267. p.122076.
Hossain, M. A., Akter, S. and Yanamandram, V., 2021. Why doesn't our value creation payoff:
Unpacking customer analytics-driven value creation capability to sustain competitive
advantage. Journal of Business Research.131. pp.287-296.
North, M. A. and et.al., 2022. Tracing primary sources of funding for, and patterns of authorship
in, climate change research in Africa. Environmental Science & Policy. 127. pp.196-
208.
Poole, W., Fallon, G. and Sen, V., 2020. Privatised sources of funding and the spatiality of
inequities in public education. Journal of Educational Administration and
History. 52(1). pp.124-140.
Segal, S., Guthrie, J. and Dumay, J., 2021. Stakeholder and merger and acquisition research: a
structured literature review. Accounting & Finance, 61(2), pp.2935-2964.
Yusopa, R. and et.al., 2020. Sources of funding for private tahfiz institutions in Kuala
Selangor. International Journal of Innovation, Creativity and Change. 10(12). pp.21-35.
Zanjani, S. and et.al., 2020. Designing a Corporate Growth Strategy Based on Ansoff Matrix
Using Fuzzy Inference System. Innovation Management in Defense
Organizations. 3(2). pp.151-178.
Online
PESTLE ANALYSIS. 2022. [Online]. Available through:<https://pestleanalysis.com/coffee-
industry-pestel-analysis/>
SWOT Analysis of a Coffee Shop Business. 2022. [Online]. Available
through:<https://www.marketingtutor.net/swot-analysis-of-a-coffee-shop-business/>