Planning for Growth

The report discusses the key considerations for evaluating growth opportunities, potential funding sources, and business plan for Kaffeine. It covers topics such as competitive advantage, growth opportunities evaluation, potential funding sources assessment, and market analysis. The report also includes a critical evaluation of various funding sources and recommendations for supporting implementation.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Analysing the key considerations for evaluating the opportunities of growth............................3
Evaluation of the growth opportunities.......................................................................................4
Discussing the growth option through the range of analytical framework..................................5
Critical evaluation of the specific pathways and the options of growth......................................5
LO 2.................................................................................................................................................5
Assessing the potential funding source available to business.....................................................5
Evaluating the potential funding sources and justification on the appropriate funding source...7
Critical assessment of various funding sources...........................................................................7
LO3..................................................................................................................................................8
Business plan consist of financial data and objectives................................................................8
LO4................................................................................................................................................11
Exit and succession options for small business.........................................................................11
Recommendations for supporting implementation....................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
To plan and track the growth in the performance and the revenue the owner of the
business design the strategic business activity to perform the planning for growth. To
differentiate from the customer and to avoid the disruption the centred efforts were adapted by
the business through the limited resource allocation (Clifton and et.al., 2020). Kaffeine is the
individual owned coffee brand. The mission of the company is to provide the freshly made,
exceptional espresso products, creative and the seasonal menu.
The report will analyse the key consideration for growth opportunity evaluating. Further,
the current report will discuss the growth opportunities and will evaluate the options and the
pathways of growth. Further, the report will identify the different potential funding source for
business and provide justification on the appropriate funding source option for Kaffeine.
Moreover, the report will prepare the business plan of Kaffeine. Thus, the current report will
provide the exit and succession plan for the small business and its advantages and disadvantages.
Lastly, the report will critically evaluate the success and the exit plan for the business.
LO 1
Analysing the key considerations for evaluating the opportunities of growth
To achieve the good return business has to maintain a unique position in the competitive
market. Kaffeine can generate the best position in the market if the position of the firm is below
or above the market by adapting of the strategy. The elements for growth opportunities are:
Competitive Advantage
Compared to its rival business can produce goods and service at cheaper and better price
this factor is considered as competitive advantage (Agung and Darma, 2019). To the market
rivals business can generate more profit and sales through this productive entity. Kaffeine can
adapt the following strategies:
 Implementing the innovation in the business SME firm can launch its product.
 The operational activities of the organization can be enhanced by making the best
operations.
 Implementing the advanced technology will help the business in increase in the customer
satisfaction. Business will also benefit in gaining of the market (Seo and Cho, 2020).

Through the Porter's generic strategic the competitive advantage of Kaffeine can be
studied:
Cost leadership – Controlling of the cost will help the business in gaining a market advantage.
Low cost strategy and the best value strategy are the two types of cost leadership (Agung and
Darma, 2019). Maintaining the average price and reducing the cost by increasing the profit is the
aim of company.
Differentiation – Creating the unique product and the service will help the company in
differentiating itself from others (Seo and Cho, 2020). Customer will pay higher money to the
company by fulfilling their needs and the wants.
Focus – To the niche market the options (leadership and the cost differentiation) can be provided
to the company through the focus strategy.
Evaluation of the growth opportunities
The growth opportunities can be formulated through two strategies. The growth
opportunities will be evaluated through Ansoff Igor model (Clarissia, 2019). Importance was
provided to the organization through focusing the existing product and the market of the
company. Ansoff four different growth strategies are:
Market Penetration
To the current market segment the existing product develop through the strategy. It also
helps in enhancement of the market share. A lot of money generated by various UK SME firms.
The existing product can be launched in the existing market for the customers (Clifton and et.al.,
2020).
Market Development
In this strategy the new product was launched in the existing market by the business.
Adding the benefits and the features in the product for creation of the new product. Through this
company will able to create unique position.
Product Development
The strategy focuses on launching of the new product in to the existing market for
fulfilling the needs. The strategy was considered as the riskiest strategy (Clarissia, 2019).
Diversification
This strategy includes in focusing of launching the new product into the new market. This
will be risky for the business as there is no idea of the product and the market earlier.

Discussing the growth option through the range of analytical framework
Market analysis framework is also known as competitor analysis framework. To evaluate
the competitors business professionally use this structure (Seo and Cho, 2020). Competitors
offerings, strategies, products, marketing efforts information can be gathered for the competitive
framework. The framework of competitor analyse was used to:
 Identify the shifts of market – If the analysis of the competitor was done in organized
way, the shift of the market can be discovered through the framework.
 Most effective strategies of marketing can be targeted – Through the own marketing
plan data back roadmap can be created by the business by understanding the competitor
working marketing channels (Agung and Darma, 2019).
 Mistakes avoided – Identifying the mistakes done by the competitor will help the
business in avoiding that mistake which will also help to reduce the cost.
Critical evaluation of the specific pathways and the options of growth
The specific pathways and the growth options for the organization are:
 Market Penetration – Thus, the firms existing capabilities and the resource were
focused it is considered as the less risky strategy. Maintaining the share market will help
the company in revenue generating.
 Market Development – The market position of the company can be lost due to failing of
the new product in the market (Clarissia, 2019). The most appropriate and the effective
strategy for the new product launching.
 Product Development – For the company the strategy was the most appropriate to
satisfy the needs of the customer. Increase in the firm strength will help the company in
enhancing its product.
 Diversification – It was the riskiest strategy for the business as both product and the
market development was included in the strategy.
LO 2
Assessing the potential funding source available to business
To run the business and its activities effectively business has to asses the funding. The
various sources available for the business for funding (Bongini and et.al., 2021). Compare to the
bigger companies the SME firms have less funding options. The available funding sources for
the Kaffeine are:

Bank loan
Advantages -
 Against the assets the loan can be taken by the business.
 Repaying on demand is not done in this source as loan were provided on the term loan by
the banks.
Disadvantage -
 Thus, the loan was taken on the assets there will be the risk for the business of losing the
assets (Lesakova, 2019).
 Bank will charge the interest if the business pay the loan before the tenure period.
Crowd funding
Advantages -
 The crowd funding source is considered as the fastest funding source for the SME. No
additional fees were required in it.
 Functions of the business can be improved as the business will get the feedback from the
people while sharing ideas to them for funding (Bongini and et.al., 2021).
Disadvantage -
 Non protection of the funding idea through patent or copyright may lead to stolen of the
concept of the business.
 In the initial stage business requires lot of efforts for growth.
Peer to Peer finance
Advantages -
 Business can gain higher returns through funding from these source (Lesakova, 2019).
Compare to different funding source this is the best funding source for SME.
 In the source the rate of return is lower for funding.
Disadvantage -
 Higher credit risk in peer to peer finance as the borrower obtained the bank loan (Bongini
and et.al., 2021).
 There will be the protection to the lender by the government if the borrower fails to pay
the amount.
Business Angles
Advantages -

 In business angles the decision were made freely and quickly.
 It does not involve any repayment or the payment of interest (Lesakova, 2019).
Disadvantage -
 Business shares has to be excluded for taking the loan from the business angles.
 Finding of the suitable business angles takes longer time for the business.
Evaluating the potential funding sources and justification on the appropriate funding source
The potential funding source for the Kaffeine SME business are the crowd funding and
the peer to peer finance for the growth. It will be considered as the best source for funding.
Crowd Funding – To launch the project business can assess the loan directly from the public
which is also termed as crowd funding (Bongini and et.al., 2021). It will help the business in
getting the idea of the success and the failure of the project as the idea was shared among the
people which in return the feedback will be shared by the people.
Peer to Peer finance – Through the peer to peer finance Kaffeine will able to gain higher returns
on its investment (Lesakova, 2019). It does not involve taking of loan from the bank, business
can borrow money from another. At the lower rates funds can be accessed. Compare to other
banks the return were higher.
Critical assessment of various funding sources
Crowd funding – In this type of funding, internet convenience is quite significant to manage all
the prospects and little amount of project. It is the modern way of funding which usually
demands internet connectivity. However, project having failed consequences enhance the
chances of risk that impact over brand image (Olmos and et.al., 2020). Although, if the patent
copyright is not protected innovation of business so it will enable chance for other to get
salubrious data from online crowd funding sources.
Business angles – these funding allow business to make investment at zero cost. However,
safety deposits are not required in this and it is easily available to investor concern as well as
contact without consisting repayments.
Bank finance - these financial sources usually demands interest rates as owner does not have to
pay for profit percentages to lenders. The only required essential is to pay for the single fee at the
starting process.

LO3
Business plan consist of financial data and objectives
Abstract
The purpose of this business plan is to figure out the several fundamental aspects for the
chosen organization ‘Kaffiene’. This will be covering some crucial terms allied with analysis of
market as well as industry aspects of business (Morison, 2020). furthermore, financial plan of the
business will be covered that provide the rough idea of expenses, on the other hand market
projection will serve suitable operation planning.
Overview of Kaffeine
Kaffeine is one of the Aussie style coffee shop in the areas of UK. It is attentive towards
assisting local producers and some of the small scale growers. The service is provided through
consisting broad range of menu such as Tim Wendelboe, Drop coffee and Coffee Collective.
These are some of the specialized coffee menu which is served by company. Whereas product
services vary according to the customer segments and there are some delicious range of options
containing quality items.
Kaffeine was established in core of London by individual owner and it has gained attention from
most of the peoples in respective areas. For most of the people it is the constant place to spend
their quality time.
Business concept of Kaffeine
The business concept of organization is associated with achieving their mission statement in
specific time period by getting adequate aid from technologies and other experiments.
Aim
to serve customer with suitable quality service as customer retention is the top most priority
concern for business.
Objective
The main highlighted objective of business are:
 To form better customer retention
 To serve quality services
 To gain valuable image in the industry
Marketing mix
Product strategy

The product segment of Kaffeine contains multiple options for customer to choose from,
this would make competitive advantage for company to form better relations with its customers
as compared to various other competitive forces.
Price strategy
Price is the influential factor whereby business can take several opportunities in their
context to gain number of customers relations and Kaffeine can serve better pricing for their
product forming up the huge differentiation from its competitors.
Place strategy
Business expansion is effective approach to setting up the business in several places with
affordable price segments. This will serve them with chance to build strong customer base and
create competition from other competitors in that particular area.
Promotion strategy
All kind of promotional fundamentals can be performed in multiple ways as organization
form appropriate advertising strategy through social media, and various other online platforms.
The best promotional activity serves the chance for organization to engage with their customers
lucratively and develop rapid growth in the business (Lei, Flacke and Schwarz, 2021).
Market analysis
Porter's five forces Bargaining power of customer - The bargaining power of customer seems to be high due
to changes in spending behaviour or taste and preference of customers. If they are not
provided with suitable pricing they can easily shift towards other competitive forces
which would create negative impact. Bargaining power of supplier - The power of suppliers can be stated as lower as business
can make better deals with other suppliers in such places as getting benefit which would
create negative impact on the bargaining power of supplier in this context. Threat of new entrant in market - In this phase, the risk is higher as there are various
other competitors can take place into existing market by serving multiple options for
customers to choose from as this can impact over business profitability. Competitive rivalry - The competitive seems to be higher in the food and beverage
industry as people easily shift towards getting affordable pricing in which Kaffeine can
serve better offers and other schemes for its customers to prefer.

 Threat of Substitute product – The threat for substitute is lower as majority of people
could prefer to get service from their existing places. Kaffeine can make advantage of
this by developing more relations with its customers by favouring them with better
pricing and products.
SWOT Analysis Strengths - Mostly people love to travel out and have their small meetings or hangout at
such places whereby Kaffeine has advantage of this concern as catering the quality
service in the areas of UK. Weakness- Inadequate market practices lead business towards lead business to collab
with various difficulties whereby Kaffeine will be unable to serve its lucrative services. Opportunities - There are some strong possibilities for organization to engage with
customers which would enable to formulate better quality deals and enhanced sales ratio.
 Threats-. Competitive forces are one of the major disadvantage for company as they can
serve quality services to the customers putting the negative impact on the profitability of
Kaffeine.
Operational plan –
This plan is quite essential which depicts activities of corporate aligning with aims and
objectives. Thus all integrity for operational task consisted in operational planning phase.
Capital funding –
The capital sources required by small business organizations must allied with
management of resources in systematic order (Jensen and Creinin, 2020). The sources of finance
vary in business context which is likely to be termed as business angle, crowd funding, bank
loans and by self. Business have chance to raise funds through pre selling for products, credit
cards and assets. By getting funds from crowd funding business can take up to $40,000 as
personal loans, while in terms of small finance for business it can obtain up to $500,000. The
business angles are favours business to hike funding without any sort of investments.
Resource planning –
To formulate resource planning convenient managers must obey to strategic approach in order to
assist organization to attain higher efficiency as well as better optimization.
Safeguarding business investments

Multiple investments in the business process relies over decisions, while in the majority of
concern it is significant to have management in places to figure out suitable funding.
Determining such aspect further strategies can be developed which would create more reliability
and convenience. Intellectual property rights is one of the highlighted concern that business
should pay attention for better growth and profits (Peter and Yang, 2019).
LO4
Exit and succession options for small business
Succession options and exit approach plays vital role in most of the small business whereby
investors are totally involved in this process. The term exit strategy refers to providing suitable
answers to the general queries that investor point towards conglomerate and current positioning
in the markets. Succession planning can be described in the ways such as transferring
management, determining managerial process of company towards other individual and group of
peoples (Biddle and Taylor, 2018). Exit planning serves as to determine and execute transfer
approach of entity and ownership to the other individual or team. however, this creates positive
impact over future business and some of the exit strategies can be effectively utilized through
small business.
Liquidation –
It is the approach in which owner of business deal with selling of their assets and it is
advantageous for them who usually rely on performative measures. This supplies greater options
by the organization to sell market depths and recovery. The advantage of this process is easier to
understand that can be wind up in minimum time period. however, the returns are very low in
this overall concept.
Keeping business in the family –
The owner of business usually keeps fundamental operations of the business into their
context which aids in managing legacy of business and family as well. The pros and cons of this
are stated below:
Merit
 Owners remains always in touch with their business
 Transition process are formed in fluent and integrated way
Demerit
 Lack of knowledge and skills can lead to negative impact on the business performance

 The complex structure of business creates conflicts in family matters
Initial public offers –
It is the feasible approach for each and every small business and further in the process the
shares of corporate are set for general public contribution to the firm investors. It has some pros
and cons into their context which is clearly stated below:
Merit
 It is one of the profitable aspect
Demerit
 It demands cost and time
 Higher compliance rate with higher rate of standards
Business selling within open markets
It can be stated as one of the foremost exit approach for all types of small business and
there are some consecutive measures whereby owner is required to set up the business practices
at sale with effective pricing. Owner in this phase usually claims the specific amount in such
open marketplaces and further passage with the money expected from business marketing
standards. The merits and demerits in this case would be:
Merit
 It is most efficacious methodology to gain profits
Demerit
 Marginal and low profit businesses face difficulties
 Business practices favour with low pricing
Recommendations for supporting implementation
It can be concluded that exit approach and succession option both are foremost to the SMEs. Exit
strategy assist to solve various general queries allied with investors for company as well as
market positioning. In the context of exit and succession, both provides better options to small
business that would be further helps in keeping up the business in family (Bagheri and et.al.,
2018). The approach are adequate because of which owner demands business for sale at specific
amount, and they will have the ability to claim prices in open marketplaces. However, steps and
some course of actions consisted in selling purposes for business in the family with adequate
valuation of business and gauging the process payments. Also, forming up the deal in written and
contracting without signing contract as handing business operations to the new owner. Thus,

business will get an ability to server better quality outcomes which can help to introduce
approach more reliable. These are all significant terms that would make business aspects more
lucrative to conduct effective practices.
CONCLUSION
From the above text it has been summarized about the core measures which states the
positioning of SMEs firms in their industry enables them to gain maximum amount of profits. It
highlights that profitable companies are easily manageable in the case when the corporate has
enough ability to maintain the competitive advantage. Moreover, it has been discussed how
funding are managed and their role in the context of SMEs, as crowd funding and business
angles are two significant terms in funding. It can be stated that business devise opportunities in
order to launch innovative products into marketplaces which enables them to deal and interact
with bunch of people. In addition to this, crowd funding is prominent source for company to
uplift the suitable funding aspects without any kind of additional cost. Also, business angles are
foremost term which provide accessibility of immense and free decision on investment terms
with zero cost for security deposit. Business plan had reflected how business covers all supreme
measures into their context to deal with better planning for futuristic concerns. In this plan it has
covered the fundamental aspects like Ansoff, Porter’s five forces and SWOT analysis to conduct
the suitable marketing analysis.

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