Planning for Growth

This report discusses the key considerations for evaluating growth opportunities and funding sources for businesses. It includes an analysis of growth opportunities using Ansoff's growth vector matrix, as well as a discussion of potential funding sources and their benefits and drawbacks. The report also covers the use of analytical frameworks to demonstrate competitive advantage and assesses specific options and pathways for growth, taking into account the risks of each option and how they can be mitigated. Subject: Business, Course Code: Unknown, Course Name: Unknown, College/University: Unknown.

Planning For Growth

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................3
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...........6
M2 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context............................7
D1 Critically evaluate specific options and pathways for growth, taking into account the risks
of each option and how they can be mitigated.......................................................................8
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................8
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business 700...............................................................................10
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option.....................................................................................................12
M3 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context...........................................................14
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations........................................................................14
D3 Present a coherent and in-depth business plan that demonstrates knowledge and
understanding of how to formulate, apply and achieve business objectives successfully.. .14
D4Provide critical evaluation of the exit or succession options for a small business and decide
an appropriate course of action with justified recommendations to support implementation15
CONCLUSION..............................................................................................................................16
REFERENCES:.............................................................................................................................17
Books and Journals...............................................................................................................17

INTRODUCTION
Planning for growth is a business activity that uses in a strategic manner which enables
the owner of the businesses to track and plan growth in their revenue. This allows businesses to
channelises their fund in a very effective way. This helps in setting up of the business goals and
chasing them with the help of their actions planned (Baschat, 2018). This facilitates the old
businesses to sell their existing products to the new segment of the market. This report is based
on Dimello coffee company. This is a Greek brand that was founded by Mr. Loannis Losifidis
and Ms Niovi Kallergi in 2002. In this report there is analysis of key considerations that helps for
evaluating growth opportunities. This reports conducts the opportunities for growth by applying
Ansoff's growth matrix. It helps in finding the potential source of funding available to the
business and also discuss the advantages and drawbacks of sources. It also helps in designing a
business plan for growth that includes financial information. This report helps in assess the exit
options for the small businesses and explaining pros and cons of each option.
MAIN BODY
TASK 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
There are several points that should be considered while evaluating the growth
opportunities. Dimello is a small medium enterprise company, they focus on that part of the
market which can give them high profitability rate (Bagheri and et.al., 2018). They target their
market according to the resources they have. Dimello plans their growth opportunities by
evaluating each and every aspects.
PESTLE Analysis:
Pestle analysis is a study of the external factors that influence a business or an
organisation. This helps the managers and professionals in the decision making.
Political factors:
These includes factors like tax policy, tariffs, trade restrictions etc. This factors includes
all the government policies which affects the business. Dimello company follows all the rules

and policies that are issued by the government. This helps them in smoothly running of their
business.
Economic factors:
Economic growth rates, exchange rate, inflation come under this factors. These all are the
economic indicators that are used by the government. Dimello company keep an eye on the
economic factors as they directly affects the business.
Social factors:
This factors is related to the cultural and demographic aspects of the society. This means
fulfilling the social needs of the customers. It includes cultural aspects, population growth rates,
age distribution etc. In UK the companies considers social aspects very important as it helps to
grow the company (Catlin, 2020). Dimello also follows this factors as they provide healthy
coffee products to it's customers.
Technological factors:
These factors includes information and communication resources, production techniques,
marketing etc. This factors means that businesses should update their techniques of productions
which helps them in satisfying the needs of their customers. Dimello company update it's
production method time to time to stay relevant to the needs of the customers . They keep on
introducing the new coffee machines which attracts their customers.
Legal factors:
Legal factors includes license & permits, labour laws etc. Dimello company is registered
with the companies house of UK which is the UK registrar that enables the company to carry out
it's operations in a smooth way.
Environmental factors:
This means achieving the company goal and targets without harming the environment.
This factor includes weather conditions, climate changes, pollution etc. Dimello company
conducts it's operations in a sustainable way without causes a harm to the nature. They have also
taken measures to reduce and remove the use of non-recyclable plastic in their company.
Boston Consultancy Group Matrix:

BCG growth share matrix is a tool that analysis the graphical representation of the
business's products and services. It helps the company in knowing that what they should sell,
keep or investment in (Beer and Clower, 2019). BCG growth share matrix in relation to Dimello
company:
Stars:
These are the products that have high market share. It generates high income for the
company. Dimello star product is ethiopia filter coffee which gives much profit to the company
and helps the company to achieve more share in the market.
Question marks:
These types of products are usually in doubt as they grow fast in the market but they uses
the maximum resources of the company (Wickel, 2018). Dimello company question product is
coffee beans as they have the capability to generate more cash for the company but on the other
hand they consumes the large amount of company resources.
Cash cows:
These products have the less chance of growth rate but relatively have a large market
share. Burgers are the cash cows products for the Dimello company as they have not much
chance for growth but they capture a big market share.
Dogs:
Dogs are that products of the company which do not generate much profit for the
company and these types of products have low market share. Sandwiches are the dogs product
for the company as they do not generate much cash for the company and these products have a
very low market share.
GE-Mckinsey Matrix:
It is a tool that offers a systematic approach to the multiple businesses to channelises their
funds among it's business units. GE-Mckinsey matrix helps in evaluating the business portfolio
and helps them in understanding that how much funds are to be used in each unit (Kearney,
2019). GE-Mckinsey matrix in relation to Dimello company:
Invest/Grow strategy:
This is the best position for a company, by following this strategy a business can reach to
the heights. This investment strategy is necessary as this helps the business to reach new

customers by advertising their products through marketing. Dimello company uses this strategy
as they invest in that products which gives high return on investment (Monstadt and Meilinger,
2020). Espresso forza coffee is one of their main product and they invest huge capital in this.
This product gives them the highest return on the capital and it is very famous among the people.
Selective/Earning Strategy:
This strategy is a bit of risky strategy as company takes decision in this that whether they
should invest or not to invest on any product. Investment decision are depends upon the outside
factors of the business (Demazière, 2018). Dimello coffee takes this decision very carefully that
on which product they have to make an investment. Burgers are the riskiest product of Dimello
coffee company as before investing on it they do the R&D.
Harvest/Divest Strategy:
There are some businesses and companies that have low competitive position in the
market by which their operations become difficult (Rauscher, 2021). In this strategy business
have two option either they sell their business to the interested buyer or by eventually take exit
from the market. Dimello coffee company faces loses due to their sandwiches as they are not
much popular among people. By using this strategy they have eliminated the sandwich section
which saves their lots of funds to waste.
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix.
It is a tool that is used by the businesses and companies to analyse and plan their
businesses strategies for growth. Dimello coffee company uses this framework as it facilitates the
managers and marketers of the company to make new plans for the company. This tool gives
opportunities to the company by evaluating various growth opportunities which helps them in
increasing their sales (Milovanova and et.al., 2018). Ansoff matrix in relation to Dimello coffee
company:
Market Penetration:
This strategy means that a company expand its business by using their products and
services to the existing market. Businesses spend lots of the funds on the marketing to get more
customers for their business. Companies incurs huge costs on advertisement as they keep on
promoting their existing products in dynamic market in terms of maintaining their brand image
in the market.
Product development:

In this strategy a company develops a new products and services by targeting its existing
market. For the implementation of this strategy, a company does high research and development.
In this strategy, a company launches new products which should satisfies the needs of the
customers. Companies uses this strategy as they keep on introducing the new products to the
market. These innovations help the companies to meet the new requirements of the consumers. It
involves expanding the product range of the business to its existing market.
Market Development:
Market development strategy means a firm enters a new market with by introducing their
existing methods of production and services. It means offering the existing products of the
company to the new segment of the market (Horn, 2020). This strategy helps in expanding the
business into the new market which gives more customers to the company. Small medium
enterprise usually operates in their exiting market. These types of enterprises sells best quality
products at a very reasonable price which can attract more people. They should use this strategy
in future by entering into the new markets which helps them in getting more customers and
results in generation of more profits.
Diversification:
In this strategy a firm enters a new market with the new products and services and tries to
grow their business in that market (Mattila, 2018). This strategy needs both product and the
market development. Companies use this strategy as they regularly introduce new products
through which they can cater the new segment of the market. Diversification strategy gives
opportunities to the companies to increase their sales by serving their innovative products and
services to the new customers.
From the above strategies, it can be evaluated that for Dimello coffee, market penetration
is the appropriate strategy for growth. By using of market penetration Dimello coffee can
advertise their products in the market. It helps them in reaching more customers which results in
generating of more profit for the business.
M2 Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within an organisational context.
Business growth means when it reaches a point where it needs additional operations to
maximises the profit of the company (Harris and et.al., 2020). Pestle analysis helps the business

to know all the external factors of the company which helps in smoothly run of operations and
getting more customers. From BCG matrix it can be analysed that it helps business to know in
which products they should invest or not which helps them in generation of more profit. GE-
Mckinsey matrix helps the business to effectively use their funds and to eliminates the product
which are not generating cash.
D1 Critically evaluate specific options and pathways for growth, taking into account the risks of
each option and how they can be mitigated
Ansoff matrix helps the businesses in finding the new opportunities by entering the new
markets or introducing the new products which helps them in the growth of the business and
generation of more profit (Battu, Abhyankar and Senroy, 2019). Dimello is a small enterprise
and market development strategy can proved to be very risky. As this includes introducing the
old products and services into the new market. For Dimello it is hard to get into the new markets
as they have very limited resources. Dimello company can use diversification strategy but it is
too a risky strategy as in this there is need of new products and new market segment which
requires lots of funds. As a small enterprise there is risk of failure of the strategy which results in
winding up of the business.
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
There are several sources of funds that a business can raise for carry out its' operations.
These funds helps the business to scale their operations and to earn more profit (Rojas and et.al.,
2019). There are broadly two types of funds that a business can raise that is equity and debt.
Dimello company uses various sources of funds depends upon the requirements of the business.
Bank Loan:
This is the most common way of sourcing funds for a business. In this, bank gives loans
to the business and charge a specific interest rate. Dimello company can use this source of funds
as this is the secure way of raising funds and banks charge very nominal rate of interest.
Advantages:
 Banks provide long term loans to the business.
 Bank provides a significant amount at one time.
Disadvantages:

 Businesses have to pay the interest rate on the amount.
 Sometimes new business faces difficulties in taking loans from the banks.
Overdraft:
Overdraft is a loan that provides by the banks to the businesses in a emergency situation when
they do not have enough funds to meet their expenses (Sun and et.al., 2021). This loan facility is
easily accessible by the business but they charge high rate of interest in this. For Dimello
company it is a risky source of funds as they are a SME and if they use overdraft facility they
have to pay high interest rate.
Advantages:
 This source facilitates the business in emergency purchasing of any assets.
 Very easily accessible for the businesses to approach this source.
Disadvantages:
 In this, they provide loans only for the short time.
 They charge high interest rate on the amount.
Borrowing funds:
Company or businesses raises funds through issuing shares of their company. In this, a
company offers their share to the general public by launching of their prospectus. Dimello
company can use this as a source of funds in order to generate more money for them.
Advantages:
 This helps in gaining lots of money very quickly.
 Company does not have to pay any interest.
Disadvantages:
 Companies have to give dividend to the shareholders.
 Companies give part of the business to the outsiders.
From the above alternatives, it can be evaluated that Dimello company should use bank loan for
their source of funds as this is the appropriate way of taking loans. Banks charges very low rate
of interest which do not put any burden on the company.
P4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business 700
Executive summary:

For the growth of the Dimello company, plan is very important which helps in leading the
operations of the business and finding the future problems. Dimello makes their future plan in
order to smoothly run of their business and helps in scaling up of their business which helps
them in generating of more profit.
Mission and Objectives: To undertakes the different techniques of production of coffee and to
innovate new flavours which they can mix with the beans. There mission is to provide best
coffee experience to their customer through craft culture.
Objectives:
 Their main objective is to provide delicious coffee products to their customers.
 Their second objective is to scale their business which helps them in getting more
customers and generation profits by 10%.
Swot Analysis:
This analysis means collecting the data of the company which helps in finding out the
strengths, weaknesses, opportunities and threats. SWOT analysis helps the business to various
aspects which helps the business to perform well in their field. SWOT analysis in relation to
Dimello company:
Strengths:
Dimello is a strong brand as they have supremacy in coffee products. They are well
established in the beverage market and have huge consumer base. The company have range of
products which helps them in occupying the top position in the Greece. They have the coffee
beans of premium as well as of medium quality which attracts every class of the society. Dimello
uses pressure pump technique while making coffee which makes their coffee best than any other
brand.
Weaknesses:
Dimello company's main weakness is that they are highly dependent upon the coffee
beans which decides the profitability of the company. Their second weakness is that they have
limited food section as they mainly deals in beverages which sometimes results in the shifting of
their customers to the other brand. Their products ranges from premium to the middle tiers of
market segment which places their products outside the range of lower class people.

Opportunities:
Dimello company have the opportunity to expand it's supplier network which helps in
expansion of their business. They can introduce their full food menu as of now they are only
dealing in limited food products. They have a huge consumer base and can introduce their food
menu in the market very easily. They can easily cater to the international market as they have the
best coffee products and enough resources.
Threats:
New competitors regularly come into the market which affects the business of the
Dimello company. Dimello company faces tough competition as new competitors sell the
products of same quality at cheaper price just to capture the share in the market. COVID-19 has
also affected the business of Dimello to a major extent as business was completely shut down
and they had faces so much losses at that time. Operations of the company was closed and they
have faced the expenses of the fixed costs which negatively impact the operations of the
company.
Value and Ethics:
Dimello company have strong ethics and values as they treat their employees with care
and love. They provide medical facilities to all the employees. Dimello company always
motivates their employees and satisfies all the needs of their employees from basic to secondary.
They believe in customer satisfaction as they provides the best quality products to their
customers at a reasonable price. They always consider the social aspects as they focus that every
body in the organisation should be treated equally. Dimello company do sustainable
development as they do not causes any harm to the environment.
Sources of finance:
Sourcing of funds is a important part of the business as it helps the business to scale it's
operations. When a business has enough funds its becomes easy to carrying out it's operations
and they can easily meet their daily expenses (Ferm and Raco, 2020). For Dimello, raising of
funds is necessary as they want to generate 50000$ for their company and bank loan is the best
option for them. This is the appropriate alternative as they can easily get loan from the bank and
in return they will have to pay a very minimum rate of interest for the amount.
Budget:

P5 Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option
A exit strategy is a plan that a business uses by selling of their assets and ownership to
the market or to the other company. In a market, if any business is continuously facing losses and
not earning any profit then that business should assess the exit or succession strategy. There are
many exit strategies which a business can adopt to leave the market. Some of the exit strategy
that are as follows:
Liquidation:
It is a process in which a business or a company come to an end. In this exit strategy a
business sells it's property and assets either to the owners or to the creditors. This occurs when a
business becomes insolvent and cannot pay it's liabilities.
Pros:
 After adopting this strategy all the debts are written off a company and company have no
any burden left for paying of any debts.
 Liquidation of assets generally involves less cash than any other exit strategy.
Cons:
 All the assets and liabilities that is owned by the business will be sold to the purchaser
and they will have not remain any right to use the assets again.

 Firstly the business needs to pay to its creditors and after that business will remain with
minimum amount of cash to meet the other expenses of the business.
Sell the business in the open market:
This strategy means selling of the business to an open market in which anybody can
takeover the business. This is already established business that is offers to the market and
entrepreneurs can easily evaluate the business performance by analysing its cash flow, sales,
brand reputation etc.
Pros:
 If a business is financially strong then it will attract more number of buyers which helps
them in getting good amount of the business.
 If the brand image of the company is good in the market then it will be easy for the them
to sell their business and it allows them to take royalty from the purchaser.
Cons:
 It sometimes can prove to be a long process to find a perfect buyer for the business in an
open market.
 Making valuation of a business is a difficult process and sometimes business might not
get the amount they wish for.
Sell to another business:
In this strategy, a business sells its business to the other business. Mostly the competitor
of the business tries to purchase the business just to eliminate the competition from the market.
Pros:
 This strategy helps the business to get much higher price of the business as in this mostly
the competitor buys the business and they are ready to pay the good amount for the
business.
 This enables the business to invest in any other projects as they get good amount fort the
business.
Cons:
 The cultures of two businesses are different by which employees of the company can face
lack of belongingness which results in leaving of them from the business.

 The main disadvantage of selling of the business is that a they loss a revenue stream by
which they were making profits. It is not sure that they will generate enough profits by
investing in any other projects.
M3 Evaluate potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organisational context
Dimello coffee company is a small medium enterprise and if they want to scale their
business and want to generate more profit then they will require more funds. The best option that
is available to them for raising a fund is bank loan (Syssner, 2020). Bank loan is the easiest way
of taking funds as they provide for loans for long terms. Dimello coffee can take loans from
banks as it will not put much pressure of interest rate as they charge very minimum rate of
interest on the amount. It is easy for Dimello coffee to scale their operations as banks can
provide specific amount at one time.
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations
There are several options by which a business can takes exit from the market. If Dimello
coffee is not earning enough profit that they are not even able to meet their expenses then they
should slowly takes exit from the market. Dimello coffee can take exit from the market by using
liquidation strategy. Liquidation strategy helps them in paying off the company debts and
liabilities very quickly. This is the fastest way for Dimello coffee to covert their assets into cash.
D3 Present a coherent and in-depth business plan that demonstrates knowledge and
understanding of how to formulate, apply and achieve business objectives successfully
Dimello coffee mission is to provide best coffee experience to their customers. Dimello
coffee achieve it's objectives by do SWOT analysis as they regularly check on their strengths and
opportunities. This helps in finding the needs of their consumers and they can provide the
delicious coffee products to them (Hall, 2022). Dimello coffee regularly raises funds from
outside to scale their business by using different techniques of production of coffee. Their aim is
to increase their sales by 10% which helps them in getting more customers and profits.

D4Provide critical evaluation of the exit or succession options for a small business and decide an
appropriate course of action with justified recommendations to support implementation
Business have several options to take exit from the market if they are not able to survive
in the competitive market. In case of Dimello coffee, liquidation is the most appropriate strategy
through which they can take exit from the market (Potts, 2020). It helps Dimello coffee as if they
become insolvent then this strategy allows them in paying off their debts easily. Liquidation
helps in generating of money quickly for the company.

CONCLUSION
From the above report, it is concluded that planning for growth is a important business
activity as it helps the organisation to use their funds in a effective manner. External factors are
plays an important role as they directly affects the business. Organisations should consider the
outside factors while carrying out the operations. Organisation have different types of growth
opportunities by which they can expand their business in the market. Business plans are made in
to fulfil the objectives of the company. In the end of this report various exit options for business
in case of loss are discussed.

REFERENCES:
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