Planning for Growth: Opportunities, Funding Sources, Business Plan, and Exit Options

This study material discusses the procedure of planning for growth and the opportunities available for small businesses. It covers sections for measuring development opportunities, Ansoff's growth vector matrix, sources of funding, designing a business plan, and exit options. The study material also includes a PESTLE analysis and Porter's Generic Strategy Model. The output is in JSON format.

Planning For
Growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Sections for measuring development opportunities..........................................................3
P2 Opportunities for growth applying Ansoff’s growth vector matrix..................................6
TASK 2............................................................................................................................................8
P3 Sources of funding available to businesses and discuss benefits and drawbacks of each
source......................................................................................................................................8
TASK 3..........................................................................................................................................12
P4 Design a business plan....................................................................................................12
TASK 4..........................................................................................................................................14
P5 Assess exit or succession options for a small business ..................................................14
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Planning for growth is a procedure of growing a plan and courses of actions of the
management in terms of turnover. By effective planning for development, management can
effectively assigned their resources in respect to survive in the market for longer period of time.
The management basically create development plan in respect to determine and create tactics to
overcome the issues like higher competition, deficiency of sales. It is important to develop an
efficient planning for development that involves determination of effective consumers,
processing the factors, computation of the turnover, determine the challenge strength,
concentration on managerial strengthen and recruit top talents (Alrasheedi, and et.al., 2021). The
management consider in this report is Monmouth Coffee Company. It is a merchandising retail
store that offers mixture of goods that are directly linked to the coffee. The fundamental purpose
of the management is to offers the suitable qualitative coffee to their consumers that makes them
contented with their goods and facilities. The report covers key factors that might be concern by
the management while analysing the development possibility, rootage of raising funds, business
plan of the management and exit or succession plan.
TASK 1
P1 Sections for measuring development opportunities
Business is an action of conveying products and facilities in respect to increase the
profitability and maximising the development of the management. By effective working of
functions and actions, the management should collect the source of data in respect to the
customer purchasing behaviour and market trends (Baporikar, 2021). The management of
Monmouth Coffee follows their resources, capabilities and core competencies in respect to create
efficient development planning tactics. The business have to measure its divisions and
concentrates on work them by which they can operate the company effectively. By determining
the resources, core competencies, the management can maximise its development by
concentrating more on their strength in the field of marketplace. Resources - Monmouth Coffee is retail store that deals in creating their products that are
related to coffee by which they can influence higher customers towards their services. For
operating the management they need several sort of resources that supports them in

attaining their targets in the field of market that are human labour, techniques of making
coffee, machines, investment and so on. By the support of these resources, the
management can maximise their development and operate the management effectively by
developing loyal customer base. Capabilities - Capabilities are the strength by which the management can acquire higher
competitive benefits in the field of marketplace (Chabhadiya, Srivastava, and Pathak,
2021). The capabilities of Monmouth Coffee is that they offers their consumer high
qualitative coffee with attractive designs by which they can influence by them. The basic
aim of Monmouth coffee is to satisfy the demands and wants of the consumer by
providing coffee as according to their choice.
 Core Competencies – The organisation might identify their core competencies in order to
be competitive in the field. Monmouth coffee have core competencies that are their staff
who are skilled and experienced that mentions them unique and diverse from their
challengers.
Innovation -
Coffee management tries to innovate their products and services in the field of market for
longer period. The management creates coffee with fresh and new flavour such as strawberry and
coco coffee. They also create their websites with attractive pictures and videos through which
consumers can easily understand their views and sections. Moreover, the management can
enhance their operations and activities by applying effective tactics for their customers.
Collaboration -
Coffee management can easily deal with several sections of the company by which they
can effectively hold their consumer for longer period of time (Clanahan, 2021). It will directly
help them in extending their operations and activities on higher term of scale.
Porter Generic Strategy Model
Porter's Generic Strategy model is created in respect to ascertain the managerial tactics
that supports in acquiring contending benefits. Monmouth coffee has to gain a dominating
competitive orientation by choosing the tactics between four generic that are Differentiation, cost
leadership, differentiation focus and cost focus.

 Differentiation Strategy - Differentiation generic strategy is a challenging tactics by
which Monmouth coffee has to distinguish their goods from other challengers. It will
help them in influencing higher consumers towards the goods and facilities.
 Cost Leadership - In Cost leadership method, the management cut the price and
decrease the cost in respect to provide the coffee goods at lower value that will help
them in attracting more consumers.
 Differentiation focus - In this, Monmouth Coffee has to distinguish their goods from
their challengers in certain particular market section rather than concentrating on wider
section (Dangi, Kc, and Gautam, 2021). The management has to determine an effective
customer group who has an interest in coffee.
 Cost focus - Cost focus tactics are adapted by management that desire to create low cost
benefits but targets only few sections. Monmouth coffee have to cut off their cost in
respect to influence consumer to their goods.

Pestle Analysis Political Factors - The management should manage an effective dealing with
government authority in which they are functioning managerial activities by following
the laws, standards and rules by which the management can operate their work effectively
without facing any problems and issues. Economical Factors - Monmouth Coffee should determine the economical factors that
will direct have an impact on the presentation of the business in terms of inflation rate,
interest rate, exchange rate, laws and policies, governmental activity and tax rate. By
measuring such factors (Dianat, and et.al., 2021). By measuring such factors,
management should create decisions to overcome its effects. Social Factors - The Social factors involves the units that are linked with the customers
as it is essential to determine the dynamical needs of consumers in respect to sustain in
the field of market. Technological Factors - As Monmouth Coffee offers diverse section of products that are
linked to coffee. As it is important to adapt the contemporary techniques in respect to
enhance the consumer experience and offers them higher qualitative goods and facilities. Legal Factors – The management should follows some legal regulations and rules in
respect to overcome legal issues. Monmouth also follows employees health and safety
rules by which they can influenced effective skilled and experienced workers.
 Environmental Factors - Monmouth Coffee should concentrates on offering advantages
to society by presenting varied CSR actions and concentrates on developing secure and
healthy environment.
P2 Opportunities for growth applying Ansoff’s growth vector matrix.
ANSOFF'S GROWTH VECTOR MATRIX
It is the suitable section of the tool and the set of activities of the risk and return in
several options (Diko, and Hollstein, 2021). It will also relates to the division of the products
and market expansion system. If any sort of organisation want to expand and develop their
business in longer run than they have to boost up profitability and same section of the growth.
They need to create high section or to use the divisions for effective fields of the formulation to
extend their organisation. As there are varied fields that are available but the organisation

follows that one which is one of the best field for them. So, the management will use the way of
the formulation such as Ansoff matrix that will help in ascertaining an effective terms of the
conflicts and difficulty in the company that will help them in analysing about the way of the plan
that is effectively suitable for the company.
Market Penetration
Market penetration is a tactic that will concentrates on increasing the selling of the goods
and facilities in the current field of area. By adapting market penetration tactic in respect to
maximise the development of the business. The management of Monmouth Coffee should
maximise their sale process with immediate coffee products in present field of market. By
adapting this tactic, management can enhance their market share and also influence the
consumers by enhancing brand goodwill.
Advantages Disadvantages
The management can disapprove other
business to come into similar field of market
by the heavy challenges (Feng, and Gauthier,
2021). Monmouth Coffee can also maximise
their brand image by offering high qualitative
goods and facilities in current field of market
and get loyal base of consumers.
The drawback for adapting this tactic is that the
business might earn low margin profitability as
they are providing goods and facilities in
present field of market. Monmouth Coffee also
faced high section of risk of costing war. As
there are various challengers in London that
offers same goods of coffee.
Market Development
Market development is termed as other development tactic that will concentrates on
entering new field of market with present goods. It is an efficient tactic by which the business
can increase new field of market and new consumers (Feng, and Gauthier, 2021). Monmouth
Coffee should extend their management in new form of market by presenting new
demographical locations and consumer sections.
Advantages Disadvantages
The benefit of market development tactic is
that the business can acquire new consumers
by which the development of management will
The drawback of market development tactic
deals with the high investment for extending
the management in new market with present

get maximised. Monmouth Coffee can also
maximise their profitability by targeting new
field of market and consumers.
goods. Monmouth Coffee require to develop
new locations in respect to extend management
in new market.
Product Development
The product development should concentrates on presenting the brand new goods in
current field of the market. Monmouth coffee should create creative and new goods in respect to
influence more and more consumers towards the brand (Hausman, 2021). The product
development tactics is adapted when management is mentioned their sections to promote new
goods by determining the choice and selection of consumers
Advantages Disadvantages
The advantage of product development tactics
are the business that develops a culture of
innovation by executing new orientated
thoughts to create new goods for consumers
that influence high sort of individuals. The
consumer require goods that are unique and
diverse from their challengers so the respective
management of Monmouth Coffee can gain the
benefits of promoting new goods.
The drawback of product development tactics
will relates to the new goods that can also
neglect in impressing and acquiring the loyalty
of consumers by which Monmouth Coffee
might face higher term of loss and it will
develop an impact on the presentation and
development of the management.
Diversification
Diversification is an other termed for development tactics that will support in maximising
the profitability and presentation of the business by entering into new market with new goods.
By this tactics, the management can effectively gain new market and will also maximise its
market existence by diversifying its management in fresh demographical field of area with new
goods (Hawkins, and Krause, 2021). The diversification tactic will supports in maximising the
productivity and development of the management.
Advantages Disadvantages
Monmouth Coffee have various sources of new The drawbacks of diversification tactics is that

marketplace and new customer that will
supports them in enhancing the profitability
and productivity of the company.
the business might face high risk due to the
failure in sustaining in new field of market. As
it will be hard for the management to influence
and develop effective consumer base in new
field of market that can develop an impact on
the profit margin of company.
The suitable and efficient development plan of action that will adapted by Monmouth Coffee
is market development strategy. As the business can set up their sections in new market by their
present goods that will supports them in maximising the productivity and development of the
management and also they can target new consumer.
TASK 2
P3 Sources of funding available to businesses and discuss benefits and drawbacks of each
source.
Sources of funding is the procedure of financing the fund in diverse assets by which the
management can acquire higher return from capitalist (Kamel, and et.al., 2021). Payback value is
a technique by which the business can measure the productivity of finance. As there are three
diverse manners for raising the funds that will rely on the period, ownership and generation.

Illustration 1: Sources of fund, 2021
On the basis of Period
Long term:
 Loan from banks- It is termed as the source through which Monmouth Coffee can rise up
the fund effectively in respect to operate the managerial actions (Khan, 2021). The
management should determine section about the bank that are offering loan at lower
interest rate. Then, they should utilise for the loan and suggest the required
documentation.

Advantages Disadvantages
It is effective and safe manner to rise the
monetary fund at certain interest rate by
offering required documentation. It manages
the business on temporary basis and interest is
tax deductible (Lee, and Hamelin, 2021). The
business of Monmouth Coffee is executing the
tactics as according to the customer who will
get influenced with the goods and facilities that
are new and diverse from other.
The drawback of bank loan is that the bank
charges high level of interest on loan if
required for managerial purpose. As it is not
east to get and the loan on high interest rates.
 Preference shares- The business has to issuing the preference share in respect to have
preferential assertion over defrayal of assets and earnings.
Advantages Disadvantages
The management use preference share when
they want fixed rate of return with lower term
of risk and it will not develop any deficiency of
charge against any liability.
The drawbacks of preference share is that the
dividend is high than the level of interest of
debenture of the Monmouth coffee business.
As it is expensive in nature.
Medium Term:
 Loan from financial institutions- There are several economical organisation that offers
monetary funds to the company (Liu, Qian, and Haynes, 2021). Monmouth Coffee also
raise the funds from economical organisation.
Advantages Disadvantages
The benefits of Monmouth Coffee
management in terms of economical
organisation that they offers longer period of
investment that will also maximise the brand
image of borrowing business in capital market.
The economical organisation face difficulty to
grant loan that is one of their main drawback.

 Public deposits- The fund will directly lifted by an organisation or by public. The level of
interest on public deposit is basically high (Moris, and Siembieda, 2021). Monmouth
also follows the public deposit for time of 3 years and it is also registered by federal
reserve Bank.
Advantages Disadvantages
The procedure of acquiring the public deposits
that is effective and unanalysable that will not
involve any constraining situation in the
Monmouth Coffee business.
The drawback of public deposits is
undependable source of finance because
customer will not provide feedbacks suitably
when management require monetary fund.
Short term:
 Trade Credit- It is utilised by Monmouth Coffee management in respect to rise the
monetary stock for shorter period (Nematpour, Khodadadi, and Rezaei, 2021). The
period and section of assets will rely on the financial orientation of the past record of cost
and goodwill of the business.
Advantages Disadvantages
It is effective and favourable source of funds
that advertise the sale of management.
The drawbacks of trade credit will relates to
the management who rise limited fund by trade
credit.
 Commercial paper- It is an unbarred promissory note that are issued to rise the monetary
cost for shorter period of time.
Advantages Disadvantages
It will not covers any limitation and also sold-
out on unbarred base.
The company that raise fund by commercial
paper will effectively charge.
On the basis of Ownership
Owner’s fund:
 Equity shares- Equity shareholders are termed as a proprietor of the business and it is
source by which the management can rise longer as the term assets (Nock, 2021).

Advantages Disadvantages
The management can rise fund by equity issue
with no charges on assets of the business.
It needs formality process because it is long
term process to rise the fund and price of
equity stock.
Borrowed fund:
 Lease Financing- In Lease financing the proprietor shifts their managerial rights to other
with the purpose to utilisation of the assets.
Advantages Disadvantages
The assets will be gain on low finance and it
needs easy documentation steps.
In lease financing there are definite limitation
that are enforced with the purpose to utilisation
of assets (Ramakrishnan, 2021).
TASK 3
P4 Design a business plan
Executive Summary
The report present the manner by which the management can extend their activities and
determine varied approaches to increase the fund.
Business Name and brief introduction
Monmouth Coffee is a retail store that offers qualitative goods that are related to the coffee.
The company is also recognised for its high qualitative coffee goods and facilities that influence
consumers.
Mission - The mission is to develop an effective consumer base by providing an effective
qualitative goods and will influencing higher consumers towards the business.
Vision - The Vision is to extend organisation and create a worldwide existence in the field of
area.
Aim - The basic aim of the management is to maximise the market share by concentrating on
increasing the development and productivity of the company.
Financing Summary

The organisation is started with lower term of finance but after it the company has
invested with high level by extending the company (Ricci, 2021).
Industry and Market Analysis
SWOT Strength – Loyal base of consumers Weakness - Modifying in different sort of shakes and fast foods Opportunities – Extending the company in new field of market. Threat – Management have high challengers
Market Potential
The company should perform market analysis n respect to ascertain the wants and
requirements of the consumers due to which they follow contemporary market trend.
Challengers
The main challengers of Monmouth Coffee are Rosslyn Coffee, Kaffeine, origin and
many other.
Advertising/Promotions
The management promotes their goods and facilities by sales promotion, personal selling
and advertising.
Marketing Strategy including Pricing strategy
Marketing tactics of management is to extend the company by providing unique goods
and facilities to consumers at low cost (Seferyan, Chubarov, and Chubarova, 2021).
Strategy and Implementation summary
The appropriate tactic for extending the management is market growth that can extend its
management in new field of market with present goods.
Personnel and Management
Ownership - The management is operate by individual proprietor
Number of employees - 12-60 staff members
Financial Plan -
Particular 31/08/21 ($) 31/09/21($) 31/10/21 ($)
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
Scaling Options
The management will extend its operation in new field of marker that will extend thgeir
company in new orientated target market that is Liverpool in respect to maximise the
development and productivity of the company.
TASK 4
P5 Assess exit or succession options for a small business
The management can effectively extend their managerial activities in new field but it is
tough to exit the management from marketplace (Semeraro, and et.al., 2021). As it needs higher
investment funds and efforts to set the working action of business. To close the management,
business need a suitable planning by which they can exit the marketplace in effective manner.
Exit ways
 Winding-up - It is a primary manner in which the management will get exit from their
functions fields and will get free for maintaining the assets and liabilities of business.
With the section of winding up procedure management creates their assets and liabilities
zero and pays off their debts. The organisation basically wind up their management when
they are facing high failure and not capable to survive in the marketplace.
Advantages Disadvantages
The management can easily wind up their
management by external disturbance from the
side of government that will decrease the
opportunities of fraud.
It is a time consuming procedure that needs
higher time to ascertain the purchaser and
management. The financial representation of
the business will also get decrease.

 Selling - Selling is other alternative for exit from the field of marketplace. The
management can sale their company in order to get monetary benefits (Thomson, and
et.al., 2021). The management has to develop an effective plan to sale their management.
Advantages Disadvantages
To sale the business it needs a minimum time.
As there are various managerial sections that
seek to purchase the management.
The management can be merchandising on
minimal price as compared to real price.
Successions
 Merger and Acquisition - It is an effective manner by which Monmouth Coffee can
enhance their image of the business. They can integrate or adopt any acknowledged
business who have an effective standards and values in the field of market.
Advantages Disadvantages
The management can maximise their image
and productivity by utilising merger and
acquisition manner (Wei, and et.al., 2021).
It declining the challenges and offers power or
challenges to acquiring management by which
Monmouth coffee can mislay their presentation
in the marketplace.
 Integration - Integration is develop at the time of two or more than two management is
developed in order to function the organisational activities as effectively.
Advantages Disadvantages
The price of operating the management will get
decreased by integrating of two or more than
two business.
It increase the size by which the presentation
and productivity of the management will get
prevent (Yadav, Pal, and Saini, 2021).
RECOMMENDATION
It has been recommended that the management, generally develops an effective
development plan in order to identify and develops the tactics to overcome the problems such as
higher competition, deficiency of sales and so on. The management have to evaluate its sections

and focuses on work them through which they can functions the business as effectively. By
effective planning for growth, management can efficiently allotted their resources in order to
sustain in the market for longer period of time.
CONCLUSION
From the above mentioned report it has been concluded that, there are several manners by
which the management can maximise its development and productivity. The management should
adapt one of the advancing technique in respect to enhance its managerial actions and earn
higher term of profit. As there are several advantages that the management can acquire by
development planning. It offers suitable section about the performance of management as a
global field and business should also determine their basic fields for development that are
required to be concentrates in the business.

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