Planning for Growth - Part 1 and Part 2

This report discusses the opportunities for growth within an organization context, applying Ansoff growth vector matrix, and assessing potential sources of funding available to businesses. It also includes a case study of Kaffeine cafe.

Planning for
Growth
-

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1) Consideration to evaluate growth opportunities within an organization context............3
P2 Evaluate the opportunities for growth applying Ansoff growth vector matrix.................7
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................8
PART 2..........................................................................................................................................10
P4 Designing a business plan for growth.............................................................................10
P5) Discuss exit and succession options for small business along with advantages and
disadvantages........................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The main aim of planning for growth all the commercial business in order to set the entire
goals as well as objectives of the company in order to accomplish the business objectives
effectively. It also support in decision making in accordance to make the business minimise the
risk of uncertainties. There are several opportunities which are there in the market for all types of
business organisation but it is essential for business leaders to understand the range of growth
and make crucial strategies in accordance to meet the business opportunities. For this aim, there
is need to make effectual techniques that will assist in maintaining the growth of the business and
enhancing the sale as well as margin of profits (Calle-Vaquero, Garcia-Hernandez, and Mendoza
de Miguel, 2021). With the support of proper planning business firm can make optimal
utilisation of resources which are there in an effectual way. The following report is based on the
Kaffeine cafe which is a small cafeteria operating in UK. Cafe offers several range of beverages
and food items in order to satisfy the need of the consumers The following report will cover
about the determination of growth opportunities together with appropriate utilisation of Ansoff
Matrix . In addition to this, several sources of capital together with their disadvantages as well as
advantages are also been included in this report. Moreover to this, business plan for scaling will
also be mentioned in this report have several options of winding of company. Furthermore,
planning for growth is very essential in case of facing the uncertainties of future in an effectual
way.
PART 1
P1) Consideration to evaluate growth opportunities within an organization context
It is evaluated that getting growth is the main purpose of all the business organisation. In
order to do this, company are needed to understand the growth opportunities which are there in
the market share. By understanding these opportunities of growth , it is convenient to make
appropriate plan in order to attain the desired goals of the company. Growth opportunities offers
wide scope to the commercial business in order evaluate the several profitable options in the
market area that is crucial for success of the business for long period of time. In addition to this,
PESTLE is the framework which is utilised with the aim of evaluating the external environment
of the company (Chen, and et.al., 2021). In case of the cafe Kaffeine, PESTLE analysis is
conducted below briefly:

 Political Factor – This factor includes all type of government policies, political stability
as well as rules and regulation which can impact the working of the firm. All the business
organisation need to follow as well as obey the policies that are made by the authorities
and they need to make their strategies and policies as well accordingly. In case of
Kaffeine, political conditions of the UK is stable so it is very much convenient for the
management to explore their more business opportunities in the marketplace in a
significant way. Economical Factor – This factor include components like interest rate, inflation, supply
as well as demand and many more. All the business firms need to consider the economic
situation of the nation in an effectual way. In case of Kaffeine, cafe is extremely
impacted with the current economic situation in buyers purchasing power has been lower
down due to the pandemic COVID -19. So, it has the negative effect on the current sales
of the company which is leading to low profitability. Social Factor – This factors shows the significance of consumer's personal attributes,
features in accordance to operate a business in the efficient and effective way. It involves
several components like attitude of the consumers, buying pattern, personality that
commonly impact the business in the effective way. In context to the Kaffeine,
management requires to modify their operational approach in accordance to the
purchasing habits of the consumers (Chigudu, and et.al., 2021). In today's time,
management should focus on providing take away and home delivery services to the
customers. Technological Factor – These elements are linked with the advancements in technology,
innovation and creativity in organisation. In current situation, role of technology is
crucial for organisation in order to get the edge over their competitors. In case of
Kaffeine, management utilises advance coffee machine and vending machine in order to
serve consumers in an appropriate manner. They are also needed to adopt advance
technology in order to offer more better services to their consumers. Legal Factors – Legal element includes various regulations, rules that are majorly made
by top level management in order to make the business run more smoothly. It is linked
with legal model that requires to obey by all the organisations. In relation to the Kaffeine,
management need to make sure that they are following all the norms regarding the

protection of consumers, maintaining healthy working environment as well as operate
their business in legal way.
 Environmental Factor – It is linked with adaptation of the several activities that are
environment friendly. It is also essential for making the optimistic reputation in their
target market (Cowell, and Webb, 2021). In case of Kaffeine, management follow all the
mandatory steps for the protection of environment in order to minimise the pollution and
offer a clean and sage environment to their consumer.
PORTER'S GENERIC
This is the mode for the company to engage its advantage of the competition around the
sector of choice. It is generic in nature and this technique can be implemented to all type of
offerings in all the businesses in the industry. COST LEADERSHIP – This technique can attain by the firm as it can offer the services
and goods at much lower cost which can help the firms in gaining edge over their
competitors. Organisations can minimise their prices by purchasing the materail at low
rates as well as by implementing several cost effectual methods of warehousing and
distribution of products. In case of Cafe, management need to adopt this techniques to
provide their consumers sustainable goods at more cheaper cost and they can also lower
their income margins in order to enhance their sales income as well as consumer base. DIFFERENTIATION – This techniques includes modification of the offerings in an
attractive way in comparison to what competitors are selling in the market place. In order
to make the effectual strategy of differentiation management need to position elements
like appropriate research, better quality offering as well as efficiency in their marketing
and sales (Elashkar, Aldeek, and Shoukry, 2021). In context to Kaffiene, cafe should
concentrates on offering their conusmers with the product of their preference and need.
By evaluating the need of the clients, cafe can enhance their profitability by increasing
their goodwill and consumer base. COST FOCUS – This technique focuses on lower cost benefits in a niche and particular
market by identifying the requirements as well as needs of the customers in the specific
market. In context to kaffiene, if company adopts this strategy by targeting the niche
market segment. Cafe need to lower their cost in order to capture the market area and also
having the edge over their competitors.

 DIFFERENTIATION FOCUS – This strategy is niche marketing technique that apt to
differentiate in the niche number of target sector and offer their products to particular
targetted consumer base. In case of Kaffiene, cafe
For development and growth of the Kaffiene, it is recommended that the cafe should opt
cost leadership strategy in order to target more consumer base and retain the existing ones by
offering quality products at lower cost (Gottschalk, and Sampath, 2021). This can help them in
gaining more goodwill which can lead to long term sustainability and success.
BCG matrix analysis
This method is utilised in understanding the current situation of the organisation as it also
assist in evaluating the growth potential as well as market share of the company to support the
company in accordance to differentiate between non profitable and profitable projects. Dogs – In this category of this frameworks states about the products or services which are
having the low growth in the market area. Additionally, those products does not make
more revenue for the organisation nor it needs major capital to keep the company
running. In case of Kaffiene, cafe should focus on removing salads from their menu as it
is not generating much revenue for them and it is also utilising the organisational
resources. Cash cows – It shows the organisations having low rate of growth in their products while
having major share in the marketplace. It also need low capital but earns major amount of
income for the firm that makes it crucial for the organisation (Harrison, 2021). In context
to Kaffiene, cafe is well recognised in its market area with having brawny goodwill
because of their iced tea and Vietnamese coffee, so these products belongs to cash cow
because it is mainly preferred by their clients as well as these are the main reason for
revenue making of the cafe. Stars – Products and services that are having the major market share and operates with
rapid growth and these offerings need vast amount of investment in accordance to
maintain their performance as well as these products are the reason for majority earning
of the company. In relation to Kaffiene, start products of the cafe is cappuccino, latte and
fries. These products are the main reason as it permitted them to acquire major base of
consumer.

 Question mark – Products and services that are having low share in market and it need
major investment to manage and enhance their market share. In context to Kaffiene,
Burger and cottage cheese stake are not able to acquire the market which was expected
by the cafe and due to this revenue and sales volume of these products have decreased
drastically. So, this leads to the negative effect on the revenue fiscal of the organisation.
P2 Evaluate the opportunities for growth applying Ansoff growth vector matrix.
It is the tool that supports in making a technique for the product and market growth. This
framework is very helpful in understanding the growth opportunities for the organization and
with the support of it, organization gets the thought of potential of their offerings in the market.
 Market penetration – This technique supports in selling the current goods as well as
services into the existing market area of the organization. It is one of the most basic
technique that company considers as it contains low risk (Honig, and Samuelsson, 2021).
In case of the Kaffiene, cafe can gain more income by modifying and improving their
existing products in accordance to demand of their loyal clients and also company should
make sure that they are providing excellent services.
 Market development – This strategy helps the company to sell their existing goods or
services into the whole new market place in order to scale their company. In case of
Kaffiene, cafe can launch their one more outlet in different location with selling the
existing range of products in order to enhance their goodwill as well as more consumer
base.
 Product development – The following technique concentrates on modification of the
existing product or developing a new one for the organization in order to sell it in their
current market place in which they are operating. In context to Kaffiene, management
can utilize this chance to expand their product segment and introduce in their current
positioned market in order to generate more revenue of sales.
 Diversification – This element of Ansoff matrix motivates the firm to tap in to the new
market place with introducing new offering. It is one of the riskiest form of expansion as
selling something new in whole new market is not at all easy task to do (Kim, Glock, and
Emde, 2021). In relation to Kaffiene, cafe can diversify their operations in to the new
market area by appropriately understanding and making goods in accordance to the
interest and need of the consumers in that specific market place.

P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.
The main sources of bringing capital are debt capital, equity capital and retained income
investment. Organizations utilities retained incomes from the operations of the business in order
to dispense dividends to their shareholders (Konyango, Hayombe, and Owino, 2021).
Organizations increases the capital by taking loans from several banks or other financial
institutions. There are several sources which are mentioned below briefly - Bank Loan – It is the capital that is offered by the banking organization for a specific
time period of the certain interest rate. Capital given by the bank is considered as a debt
as the organizations are obliged to return in specific time period. There is need to provide
any asset as the collateral at the time of taking the loan from bank. It anyone is not able to
repay the amount of loan then bank are fully authorized to take over the possession on
that particular asset. In relation to the Kaffiene, it is the best source for them to enhance
their business operation by taking investment from the bank.
Advantages Disadvantages
It is one of the extremely reliable source
because of the appropriate legal
documentation. There are several interest rates
charged by the bank for taking loans of various
purpose. Additionally, banks also offers loans
for the expansion of business at low interest
rates. Moreover to this, these financial
institution offers EMI services in order to make
it convenient for the borrowers to return the
money in timely basis.
It requires lot of paper works and verification
and it is alo very much time consuming in
order to get investment.
 Personal savings: In this owner of business uses their own money in order to meet the
needs of the business (Kraaijenbrink, 2021). Commonly, need of large amount cannot be
attained by personal saving but there is not at all need of getting capital by any legal
method. In relation to Kaffiene, cafe is independent with having a single owner, so this
method can be utilised by the cafe in order to grow their business.

Advantages Disadvantages
The money is owned by the owner hence there
is no pressure to repayment of it in the specific
time period. In other words, there is no need of
any collateral , legal documentation in order to
utilise personal capital that supports the firm's
owner to function business in an effectual way.
There is no interest on the amount as it is the
personal capital so it reduces the stress of
interest payment in time and permits the
organisation to maintain its entire
concentration on the maximization of revenue.
The main disadvantage of this source is linked
to having the limited capital. With it, this is not
at all possible to meet with large need of
investments.
 Family and friends: It is the process of getting required capital in which owner of the
business can borrow amount from their family and friends on zero to very low interest
rates. There is commonly no regal agreement regarding the collateral and repayment of
the capital in required time (Radionov, 2021). Owner of the cafe can also get the
investments from their friends as well as of their family.
Advantages Disadvantages
It is one of the appropriate and rapid method
for the small organisations in which there is no
need to provide any type of security as well as
of payment of interest.
It is not a reliable method and it also includes
the other people which will enhances the effect
of the process of business. Moreover to this, it
is bit of tough to get the large capital
investment by this source.
From the above mentioned sources of capital loan from the bank is most appropriate
method for the cafe Kaffiene as it is an reliable method to get the required investment. Moreover,
cafe is planning to expand their operations and because of this will be needing large capital
which can be provided by the banks only.

PART 2
P4 Designing a business plan for growth
A business plan is the formal written document that shows the firm's strategies as well as
vision which is needed to accomplish in the future long term objectives.
 Executive Summary – In the following report opportunities for growth has been
discussed with the help of several model on the firm (Sharma, and Tewari, 2021). The
following report is based on the kaffeine cafe which is a small cafeteria operating in UK.
Cafe offers several range of beverages and food items in order to satisfy the need of the
consumers (Yeniaras, and Kaya, 2021). Several funding sources is mentioned for the
future expansion of business.
 Mission – Mission of the cafe is to provide best coffee in town to their consumers.
 Objective – Main objective of the firm is to increase their market share by enhancing the
sales and goodwill in market.
 Vision – Vision of the cafe is to use organic raw material in their products in order to
provide healthy products to their consumers.
Market analysis-
STP -
Cafe Kaffiene of market involves the enhancing demand of their coffee.
 Segmentation – In this, entire market is separated into various small elements so that
firm can gain more consumer base (Sharma, and Tewari, 2021). In case of Kaffiene,
management utilises demographic segment in which they divide the consumers in several
segments that are age and gender.
 Targeting – It refers to the choosing the targeting group of people. In context to
Kaffiene, their major target segment is all people male or female both of any age. As it is
beneficial for them to provide their products to many people.
 Positioning – Main goal of Kaffiene is to optimistically place the goods in the mind of
their targeting consumer (Williamson, 2021). For this aim, they utilises several processes
of promotion and also offers abundant of coupons to their consumers in order to
appropriately establish their position in the market area.
SWOT Analysis:

 Strength – The faith and loyalty of the consumers is their major strength which is
essential for the survival in the market area for long term period (Silva, 2021).
 Weakness – It is the small cafe that lacks in resources which will restrict their growth of
business.
 Threat – Entry of other competitors in the market area is the major threat to the firm.
 Opportunity - Management can expand business that will assist in enhancing of existing
level of sales and margins of profits.
Marketing Mix -
 Product – Company is offering several types of beverages and food products in the
market area.
 Price – Company will use competitive pricing strategy in order to get an edge over their
competition.
 Place – Cafe is planning to launch its new branch in wessex UK.
 Promotion – Cafe is utilising several methods of promotions in which the main is social
media marketing, email marketing and other digital modes.
Financial plan
Particular 31/12/21 ($) 31/12/21 ($) 31/12/21 ($)
Apply knowledge
charge
15000 - -
Raise occasion 9000 8000 6000
Profitable
expenditure
6000 5600 5800
Collections 2000 4000 3000
Training charge 6500 8000 8500
Overall Cost 38500 25600 23300

 Risk Plan – Company requires to manage the needed amount of investment in order to
prepare themselves for any kinds of uncertainties in an effectual way. Moreover, there is
need to give proper training to their employees of cafe.
P5) Discuss exit and succession options for small business along with advantages and
disadvantages
There are plan for exiting the company and succession of company that show the perks
and drawback, they are mentioned below:
 Continuing the legacy of the company - Several business are operating for the aim of
continuing the legacy of their family and obeying the structure of the company.
 Declare bankruptcy - At the time when a company is not capable to repay their fiscal
debts to their creditors, then company files for the bankruptcy (von Schönfeld and
Ferreira, 2021). People will file their petition in the court for it, in which all the earlier
loans of the company is evaluated and paid out in full with the assets of company.
Succession plan
This is the plan which need to be considered by the organisation in case if the company feels like
the brand is in a good position and the entrepreneur needs to expand its market. There should be
a plan ready for the organisation in order to have a success and growth of the company. There
are variety of options which are discussed below in context of Cafe Kaffeine:
 Franchising – this is the succession option plan which need to be considered by te
organisation in which the franchising is related to the distribution of the products or
services to the third party. The franchising is the way of increasing the market share and
increasing the brand value in the other countries. The company can offer the products and
the method in which the business need to be conducted. This will help the organisation to
expand its market.
 Licensing- This is the another way of succession where the company can offer the
license to the another organisation where the company can sell the products with the
permission in the name of the organisation. This is the method which can help the
organisation to have success and growth opportunity in order to expand its market.

It is suggested that the cafe can focus on the franchising as a succession plan in case the
company wants to expand its market and the company is growing with the current market. This
will help the organisation to increase its ales and increase the brand image in the other countries.
CONCLUSION
From the above mentioned report it has been concluded that, there are some of the fundamental
consideration for the development of the business and opportunities and as well as Ansoff
growth model that will support in measuring the management and there are some of the potential
funding sources that will support the company to extend and change that also involves some of
the limitations as well. Furthermore there is design of business plan for the development that
involves financial data and strategical aims. At last, there is scenario of discussion of succession
and exit for a small business that manages the advantages and limitations of each options.

REFERENCES
Books and Journals
Calle-Vaquero, M.D.L., Garcia-Hernandez, M. and Mendoza de Miguel, S., 2021. Urban
planning regulations for tourism in the context of overtourism. Applications in historic
centres. Sustainability, 13(1), p.70.
Chen, T., and et.al., 2021. Growth or Shrinkage: Discovering Development Patterns and
Planning Strategies for Cross-Border Areas in China. Journal of Urban Planning and
Development, 147(4), p.05021046.
Chigudu, A., and et.al., 2021. Urbanization, Planning Law, and the Future of Developing World
Cities. In The Palgrave Encyclopedia of Urban and Regional Futures (pp. 1-10). Cham:
Springer International Publishing.
Cowell, R. and Webb, J., 2021. Making useful knowledge for heat decarbonisation: Lessons
from local energy planning in the United Kingdom. Energy Research & Social
Science, 75, p.102010.
Elashkar, E., Aldeek, F. and Shoukry, A., 2021. Business predictive analysis from business
insurance data using business strategic planning techniques. Knowledge Management
Research & Practice, pp.1-10.
Gottschalk, R. and Sampath, P.G., 2021. Infrastructure for Structural Transformation: A
Comebackof Planning?. Journal of Infrastructure Development, 13(1), pp.53-64.
Harrison, J., 2021. Seeing like a business: Rethinking the role of business in regional
development, planning and governance. Territory, Politics, Governance, 9(4), pp.592-
612.
Honig, B. and Samuelsson, M., 2021. Business planning by intrapreneurs and entrepreneurs
under environmental uncertainty and institutional pressure. Technovation, 99, p.102124.
Kim, T., Glock, C.H. and Emde, S., 2021. Production planning for a ramp-up process in a multi-
stage production system with worker learning and growth in demand. International
Journal of Production Research, 59(19), pp.6002-6021.
Konyango, C.O., Hayombe, P.O. and Owino, F.O., 2021. Effectiveness of Planning Tools in
Managing the Spatial Stability of Peri-Urban Areas.
Kraaijenbrink, J., 2021 PLANNING EFFECTUAL GROWTH: A STUDY OF
EFFECTUATION AND CAUSATION IN BUSINESS PLANS.
Radionov, Y.D., 2021. THE IMPACT OF BUDGET PLANNING ON STIMULATING
ECONOMIC GROWTH. Publishing House “Baltija Publishing”.
Sharma, A. and Tewari, P., 2021. Importance of Succession Planning in Empowering SMEs For
Inclusive Growth. Financial Intelligence in Human Resources Management: New
Directions and Applications for Industry 4.0, p.243.
Sharma, A. and Tewari, P., 2021. Importance of Succession Planning in Empowering SMEs For
Inclusive Growth. Financial Intelligence in Human Resources Management: New
Directions and Applications for Industry 4.0, p.243.
Silva, C.N., 2021. Book Review: Planning Theory. International Journal of E-Planning Research
(IJEPR), 10(4), pp.1-2.
Valu, R., 2021. Sales Planning in Relation to Strategic Growth: a tool to support optimization
and profitability.

von Schönfeld, K.C. and Ferreira, A., 2021. Urban planning and european innovation policy:
Achieving sustainability, social inclusion, and economic growth?. Sustainability, 13(3),
p.1137.
Williamson, G.M., 2021. Family-Owned Business Leader Succession Planning
Strategies (Doctoral dissertation, Walden University).
Yeniaras, V. and Kaya, I., 2021. Relational governance, strategic planning and firm
performance. Marketing Intelligence & Planning.