Planning for Growth

This report analyzes key considerations for evaluating growth opportunities for Bold Street Coffee, applying Ansoff’s growth vector matrix, potential sources of funding available to businesses, and creating a business plan including financial information and strategic objectives. It includes a SWOT and PEST analysis for Bold Street Coffee.

Planning for Growth
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Table of contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1. Key considerations for evaluating growth opportunities within organizational context.......3
P2. Evaluate opportunities for growth by applying Ansoff’s growth vector matrix...................4
P3. Potential sources of funding available to businesses along with benefits and drawbacks....6
P4. Business plan including financial information and strategic objectives...............................7
P5. Exit or succession options for small business.......................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Planning for growth is important for the company or organization to analyze the important
aspects of growth and development on effective and efficient scale (Olmos and et.al., 2020).
The report will analyse the key considerations evaluated for growth opportunities for the
Bold Street Coffee. Along with this, Ansoff growth vector matrix will also be applied for
evaluating the opportunities. Potential sources of funding available to business will also be
analyzed along with its benefits and drawbacks. A business plan will be designed which will
include mission, vision, SWOT analysis, PEST, marketing mix, budget and evaluation for
growth including financial information and strategic objectives for scaling up of the business.
Further, exit or succession options for a small business will be analyzed along with the
drawbacks and benefits. Therefore, planning for growth will be analyzed for the Bold Street
Coffee which will include all important aspects in which process will be completed effectively
and efficiently.
MAIN BODY
P1. Key considerations for evaluating growth opportunities within organizational context
Business growth is very important aspect for knowing how the business is developing on
large scale and what are the factors on which the business is applied scalable and is measured
effectively and efficiently. It is very important that the business seeks growth on the verge of
changing its patterns and adopting new ways in which it delivers the significant purpose to the
organization which is Bold Street Coffee (Ghimire and et.al., 2020). While the business grows
and develops at a fast pace, there are various opportunities which can be seek through the market
and on that basis the main aim of Bold Street Coffee is also fulfilled which is in view of creating
the best and effective business growth on large scale. There are various key considerations for
evaluating growth opportunities within Bold Street Coffee and that is described as –
Expansion in New Market – Bold Street Coffee can expand its reach in the new market as this
will provide the business all the opportunities which the business requires along with the new
trends and changes which are to be done in knowing how the coffee business can flourish on vast
scales. Expansion of business in the new market will help in creating value of the brand and will
help in promoting the coffee business on expanded basis. The main aim of the business should be
taken into consideration that it provides the variety of options that are made available to the
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business. Expansion in the new market will help Bold Street Coffee to analyze and articulate the
business opportunities which constitutes the patterns and trends running in the market and are
followed by the other businesses as well. Expanding in the new market will help the business in
researching and analyzing best ways and techniques through which the business can evaluate
what the target customers are actually in need of. In depth market analysis will help in forming
the business know the opportunities in detail and through that Bold Street Coffee will be able to
analyze the basic growth opportunities available.
Collaboration with Other Companies – Bold Street Coffee for growth opportunities in the
market should collaborate with other companies so that they are able to analyze how the
companies are able to make and create the ways through which various opportunities can be
grabbed also, the main thing is that the Bold Street Coffee will be able to take the concern of
how the market and its trends are initiating towards the other companies to know the strengths
and opportunities which are made available to them on expanded scale (Kobarg and et.al., 2020).
When the Bold Street Coffee collaborates with the other coffee businesses than it will be able to
analyze the patterns and ways through which they are being followed are on the effective and
efficient basis. Also Bold Street Coffee will be able to evaluate what are the important aspects
which other businesses are following and through this the main aim of the business is also
fulfilled. Also collaboration with other companies will helps Bold Street Coffee to evaluate their
performance in the market and analyze how the other companies are up scaling their business
effectively and in significant manner. Thus, collaboration with other companies will help Bold
Street Coffee to progress in steps.
Providing New Products and Services – Bold Street Coffee should focus on providing new
products and services which will help in promoting the brand and its services to the customers on
large scale in the market. For evaluation of the growth opportunities, it becomes very important
to analyze and identify the patterns and systems which will helps the business in achieving great
success overall. The perspective of how Bold Street Coffee will grow its business will be seen on
the scale when the company will provide new services and products to customers so that the
needs and requirements of the customers are also fulfilled (Rosca and et.al., 2017). Along with
this, there can be changes which can be done for promoting and establishing the products and
services that are newly produced by the Bold Street Coffee. New products and services when are
produced for the providing the services and products in the market helps in knowing how Bold
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Street Coffee can initiate new ways and techniques which initiates growth and development on
large scale in an effective and efficient manner. Also, Bold Street Coffee will be able to focus on
the patterns and the trends which are followed in the market effectively and in significant
manner.
P2. Evaluate opportunities for growth by applying Ansoff’s growth vector matrix
The Ansoff matrix is also called market/product expansion grid. This is a tool which is used by
firms and businesses to plan and evaluate strategies for growth. The Ansoff matrix shows four
strategies which help the business or the company in its growth and helps in creating value of the
strategies which are being framed effectively and efficiently on external and exponential scale.
The four strategies are described as follows –
Market Penetration – Market penetration is defined as when the market focuses on
increasing the sales of existing products to an existing market. There are various opportunities
for growth that can be evaluated through the market penetration stage where the company aims
to increase its market share by focusing on market penetration strategy and through this various
aspects are evaluated and can be executed in number of ways possible (Loredana, 2017). Market
penetration helps in decreasing the prices so that new customers are attracted and they help the
company’s products and services to be utilized by them as per their requirements. Market
penetration strategy is framed so that it can promote and distribute increasing efforts of
company’s products and services. Along with this, market penetration focuses on acquiring a
competitor in same marketplace so that it becomes convenient for them to analyze market
structure effectively.
Product Development – Product development helps the company in focusing on new
products in the existing market structure so that the customers are able to buy the products and
services as per the availability and by fulfilling their needs and requirements. Product
development is done with the help of research and development and through expansion of how
much the company has expanded on the scale of growth (Dawes, 2018). The product
development strategy is there in action when the company is able to understand the current
market and provide innovative solutions. The product development strategy can be implemented
in various forms which is through – investing in research and development so that new products
helps in catering to the market which is currently working, analyzing the product of the
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competitor so that the new products are merged with the current requirements and the needs are
met significantly.
Market Development – Market development strategy focuses on entering the new market
by utilizing the existing products which are on scale of developing the products which the
company renders (Cleberg, 2019). The market development strategy involves following forms
which are explained as – company is catering to different segment of customers within its reach
and in external ways possible, entry in domestic market which is new to the company will ensure
growth and this will also help in expanding regionally, entry in the foreign market which is also
new for the company will helps in the market development for products and services along with
expanding it on international scale. The market development strategy is most successful when
the technology and the potential customers are factors helps in knowing the factors which are
created effectively on the scale of knowing that it leads to growth and development.
Diversification – Diversification is how the strategy is being framed for entering into the
new market by introducing the new products and how the scale of product diversification is
being analyzed in the market. In market diversification, it is described in two types which is –
related diversification which helps in analyzing the existing business and new market/product,
unrelated diversification have no synergies for the existing business or new product (Matrix and
et.al., 2019). In the diversification strategy both the product and market development techniques
are involved and evaluated on large scale. Diversification strategy offers the potential as how the
revenues are increased of the company and how the growth and development factors are
analyzed on large scale. Diversification helps both the product and market to analyze what the
customers’ requirements and needs are. This will help the company in evaluating what is the
growth and the development aspects.
P3. Potential sources of funding available to businesses along with benefits and drawbacks
There are various sources of funding which helps the businesses in its growth and
development on large scale. Sources of funding also identify the ways through which businesses
can get help for maintaining and managing financial scales under different sections in the
company. The potential sources of funding available to businesses with benefits and drawbacks
is described as –
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Retained earnings – By selling the product or rendering services businesses aim to maximize
profit for the company and through this the profits are being generated, the businesses decides
what to do with an earned capital and how the retained earnings are allocated. The earnings are
distributed to shareholders as dividends and through this, the company is able to source funds
and the shares are reduced (Ball and et.al., 2020). And in this process, the businesses invests the
money into the new activities which are taken in accordance with how the retained earnings
helps in ensuring what are the profits and how the financial scale can be evaluated through this.
The retained earnings help in collecting the source of how funds are collected so that all
efficiency and effectiveness is being taken into account. Thus, the retained earnings are main
source which helps the businesses in creating and forming the scene of how things are taken for
financial scale to be managed.
Debt Capital – Businesses prefer financing privately through bank loans. The businesses source
new funds to the public by issuing the debts. The businesses initiate the debt capital and in the
source they exchange the securities so that the cash is being withdrawal by them for the
businesses to perform the activities which have been planned and are to be taken into action
(Růčková and et.al., 2020). The businesses then repay the debt as per the schedule and underlie
the issued debt securities. The drawback of the debt capital is that the borrowers need to make
payments which are on interest and along with this, the repayments which are on principle scale.
If the borrower is not able to do so then this will lead them to bankruptcy. Thus, this is the
second main source of funding through how the businesses are set up in the market and this helps
in financially scaling up the business on effective and efficient terms profitably.
Equity Capital – Businesses raise funds from the public in exchange for proportionate stake in
the business which is issued by the shareholders and through this the main thing is been analyzed
on the scale for maintaining the equity capital on scale. Equity capital also helps in private
financing and ensuring that the network to invest money in the business and this has helped in
knowing what are the basic initiatives which are taken in accordance for knowing the scale of
business and how the funding is being done for sake of businesses to develop effectively and
efficiently on scale (Ahmed and et.al., 2019). But along with this, there is one drawback of
equity capital which is that the shareholders dilute ownership which is contributed in shares with
company or the businesses on scales. Thus, the equity capital is third major source of funding
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which helps the businesses to run on grounds of being effective and efficient on scale of
managing the finances.
P4. Business plan including financial information and strategic objectives
The business plan of Bold Street Coffee includes various aspects and the steps which are
described as follows –
Mission – Our mission is to serve great food and celebrate the community in the most significant
way possible.
Vision – Our vision is to grow the business in the food industry for the business to enhance and
signify more in market.
SWOT Analysis – The SWOT Analysis of Bold Street Coffee is as described as follows –
Strength – Bold Street Coffee has a strong brand name in UK which helps in gaining more
customers and engages them in taking more services on large scale. The aroma of coffee which
the Bold Street provides is very likeable by the customers and therefore they are attracted
towards it.
Weakness – As coffee industry is an underdeveloped industry, therefore, it becomes it biggest
weakness. There is so much of high dependency on the raw materials and so it is very costly for
the Bold Street Coffee to incur such cost (GURL, 2017).
Opportunities – Bold Street Coffee must penetrate in the market so that the business is able to
achieve and follow the trends which are available in the market. The business should tie up with
the offices which are in on the verge of scaling up high.
Threats – There are very much indirect and direct competition which the Bold Street Coffee may
face and there is also the problem which creates threat with the cocoa in the market for incurring
the ingredients.
PEST Analysis – The PEST analysis for Bold Street Coffee is described as below –
Political – The trade relationships of the Bold Street Coffee is highly dependent for the
international trade and through this the trade relationships are analyzed on the scale of keeping
up the trade relations with the other countries.
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Economic – The economic factor which is considered is growing incomes of the customers
which means that customers are spending money each year as the economic scales are very high
which helps the coffee industry to create effective results and on scales which helps the economy
to grow.
Social – Customers are more health conscious and they have started taking concerns of how they
can maintain their diets and not eat or drink unhealthy food stuffs (LEYVA and et.al., 2018). The
fair trade practice is also the social factor which is being initiated and taken care of in the aspect.
Technological – The technological factor such as genetic engineering has created the ways
through which Bold Street Coffee is able to initiate the patterns and follow the systems which
makes the procedure of making coffee on easy scales.
Marketing Mix –
Product – The product which Bold Street Coffee provides to customers is coffee services and
through this business is able to reach customers.
Price – Bold Street Coffee provide diverse pricing on its products and services which is less than
premium and is affordable by customers while buying services.
Place – Bold Street Coffee operates at many places all around world but is mainly in UK (Thabit
and et.al., 2018). The coffee shops deliver services and its products more effectively and
efficiently.
Promotion – The business which Bold Street Coffee is running is on scale of promoting services
and products through social media channels such as Facebook, Instagram, Twitter etc.
Budget –
Financial projections Year 1
Revenues from Bold Street Coffee 728910
Revenue from specialized coffee shops 450000
Net Revenues 1178910
Materials 380000
Labour 220000
Overhead costs 60640 -
Cost of goods sold 660640
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Gross profit 44% 518270
Other Expenses:
Salaries 250000
Superannuation 14250
Advertising 30000
Depreciation – coffee equipment 1800
Depreciation – shop maintenance 8000
Depreciation – coffee machine 5000
General expense 500
Legal expense 1000
Maintenance expense 1500
Utility Expenses 1600
Rent Expense 8000
Machine Expense 4000
Total Other expenses 325650
Earnings Before Tax 192620
Less: Tax @ 30% 57786
Earnings After Tax 134834
Strategic Objectives – The strategic objectives for scaling up the business helps in knowing
what are the basic and important aspects in which the Bold Street Coffee is initiating the form of
growth and development. The strategic objectives are –
 To initiate growth on the scales of increasing the revenue this is being generated on
significant terms.
 To identify the business opportunities in the market.
Evaluation – Evaluation is done by the Key Performance Indicators (KPI’s) which refers to the
how the measures of the Bold Street Coffee business is quantifiable and how through this tool
the business is overall evaluated on the long – term basis and the performance is evaluated
(Cherni and et.al., 2019). The business’s operational, financial and strategic achievements are
being achieved and through this it promotes the same business and analyzes how the
performance of business in the market is overall evaluated and achieved on the scale of being
quantifiable and increased in success through its measure effectively and efficiently on scale
which helps in evaluating and measuring success of business.
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P5. Exit or succession options for small business
The exit or succession options for small business is described through which ways
described as –
Liquidation – The liquidation is the process which is the option of exit of small business
becomes convenient. In this process the small business is closed and selling off its assets to the
stakeholders. In this the main way to close the small business is to sell off the business to the
stakeholders so that all the procedures and proceedings are completed on time (Deepthi and
et.al., 2019). The liquidation process is a little bit of sequence process as there is much
involvement of the other parties and the individuals with whom the business is to be liquidated.
There are benefits and drawbacks of liquidation which is described as below -
Benefits – It is the simple exit process for the small business to be out of the business process. It
depends on the sale of assets which helps in closing of the small business to be quick on scales.
Drawbacks – The assets are only being sold when the small business can make money out of the
assets which are being sold. Other than this, the major drawback is that the creditors are to be
paid money first.
Therefore, the liquidation is the way through which small business can exit on their own
terms and conditions by following certain procedures and process while existing.
Selling the Business to Known – Small business can be sold to anyone known who can be the
existing partner in the business which was running, any employee or the manager, family
member, customer, friend. This becomes very convenient for the small business in transferring
the business to someone known (Shelly, 2021). Along with this, selling to someone known
becomes easy on the paper work also that there is trust relationship to whomever the small
business is being sold. But on the other hand, there some benefits and drawbacks which are part
of the small business to be sold to someone known and this is explained as –
Benefits – Long term buyout helps the employees in the small business so that they are feel more
committed for the success to be achieved in business. Familiarity is the benefit which indicates
that the small business is sold to someone who is a known source.
Drawbacks – Small business can be sold at discounted price which won’t incur the full amount
for the business and will regard it as worthless. Relations can be affected while selling the
business to someone known especially to any family member or friend.
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Therefore, selling business to someone known helps small business to decide quickly on
the actions being taken effectively.
Through Initial Public offering (IPO) – Initial public offering refers to when the business sells
the stock shares to the public. Small business for exit of its business should go through this
option also which will help the small business in its succession options as this is a very extensive
and long process which requires the public requirements and reporting for the scale of how the
procedure is to be taken into consideration in exiting efficiently (Souitaris and et.al., 2020).
Benefits – In this exit option which is IPO public can help boosting the reputation, and creates
brand awareness of the business which is sold to them. From turning the small business to being
profitable on the basis of public company, it creates major benefit to them.
Drawbacks – Stakeholders can create disturbance in selling the business on the public scale. It
creates obligations in collecting the reports and information on large scale, creating any business
operation etc. While converting the small business to public company it is very lengthy and
expensive process. And therefore becomes tedious also as process takes time in the conversion.
Thus, through IPO the exit of small business becomes a little tough as it includes various
processes and procedures to be completed on the scale of being effective and efficient.
CONCLUSION
Thus, it is concluded from the above report that key considerations were evaluated for
growth opportunities for the Bold Street Coffee. Along with this, Ansoff growth vector matrix
was also applied for evaluating the opportunities. Potential sources of funding available to
business were also analyzed along with its benefits and drawbacks. A business plan was
designed which included mission, vision, SWOT analysis, PEST, marketing mix, budget and
evaluation for growth which included financial information and strategic objectives for scaling
up of the business. Further, exit or succession options for a small business were analyzed along
with the drawbacks and benefits. Therefore, planning for growth was analyzed for the Bold
Street Coffee which included all the important aspects in which the process was completed
effectively and efficiently.
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