Planning for Growth

This report discusses key considerations for SMEs when evaluating growth opportunities, including competitive advantage, Porter's generic strategies, and Ansoff Matrix. It also assesses various funding methods such as bank loans, crowdfunding, and angel investors. The report includes a detailed business plan for Café Pod and strategies for scaling up the business.

Planning for growth

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Lo1. Analysation of key considerations of SME should consider at time of evaluation of
growth opportunities....................................................................................................................1
Lo2. Assessment of various method through which organisation access to different funding
and also to use different types of funding....................................................................................3
Lo3. Development of a business plan and communication about how a person can intend to
scale up a business.......................................................................................................................5
Lo4. Assessment of different ways in which a small business can exit the business and
implications of different options..................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Planning for growth is considered as a strategic business activity that enables the owner of the
business for purposes of planning and tracking of growth for revenue. It allows the business for
purpose of allocation of limited resources for purposes of cantered efforts in order to adopt
changes in the business through digital distortion and allow them to differentiate their products
(Bagheri and et. al., 2018). This project report includes Café Pod which is a UK-based
organisation. It is a small business that was started by three friends by meeting for pizza and beer
in London. This group of three friends has a vision for making changes in coffee and started the
company which is focusing on making higher quality of coffee with good taste that will excite
people and also for purpose of allowing people to make coffee at home. It is a small company
that has around 11 to 50 employees. This project report includes analyzation of the key
considerations SMEs should consider when evaluating growth opportunities. It assesses the
various methods through which organisations access funding and when to use different types of
funding. It also develops a business plan (including financials) and communicates of how to
intend to scale up a business. Moreover, it assesses the various ways a small business owner can
exit the business and the implications of each option.
MAIN BODY
Lo1. Analysation of key considerations of SME should consider at the time of evaluation of
growth opportunities
Competitive advantage can be described as the different ways in which a company produces
different types of products and service and also deliver it to its competitors. It is important as it
allows the firm to earn huge margins. Getting a competitive advantage provides various
opportunities for business of Café Pod in the marketplace. Café Pod can take advantage on basis
of resources and capabilities as well as on basis of core competencies (Cirunay and Batac, 2021).
In order to get growth, business can also adopt, Porter’s generic strategies. Explanations of
different components of Porters generic strategies are mentioned below:
Cost leadership: It is one of the leaderships in which for attainment of cost advantage, business
is focusing on reduction of cost of the company. In this, business can attain competitive
advantage by reducing the cost and charging average price or can charge lower prices for
increasing the market share.
1

Differentiation: It is another strategy in which business needs to focus on research and
development that allow business to purpose of adopt innovation which is important in order to
allow business to differentiate their offering from those of competitors.
Focus strategy: It is a strategy which allow business for purpose of adoption of distinct strategy
in order to focus on niche market. In this, business can adopt cost focus or differentiation focus.
Café Pod business is a business which for purpose of getting growth can adopt
differentiation as it is differentiating their offering from its competitors. It is differentiating from
its competitor on basis of its taste (Dodds, Dimanche and Sadowski, 2018).
Growth opportunities:
In order to identify different growth opportunities which a business can adopt is Ansoff Matrix.
It is a strategy which consist different types of growth options which can be adopted by Café
Pod. For this, business can adopt Ansoff Matrix and explanation of different options available in
this framework is mentioned below:
 Market Penetration: It is a strategy in which for purpose of increasing the sales of the
company, the business needs to increase the sales of the product in the existing
marketplace. It is a concept that is important for the business as in this, business only
needs to avoid the new strategy which allow them to improve the sales.
 Market Development: It is another strategy in which a business is selling its existing
offering in the new marketplace. It allows businesses for purpose of targeting new
markets like new geographical boundaries and other ways.
 Product Development: It is another strategy adoption of which helps businesses for
purpose of introducing of new products in the existing marketplace. For the adoption of
this strategy, the business managers of Café Pod need to invest more on research and
development activities (Egidi and et. al., 2020).
 Diversification: It is another strategy for which business can needs to enter into the new
market with the new products. Adoption of this strategy helps business for purpose of
access new opportunities for business but at same time, it consists higher risk.
From above discussion, it can be analysed that business of Café Pod should adopt market
development. It is a business which allow business to expand its business operation by
expanding geographic location.
2

Lo2. Assessment of various method through which organisation access to different funding and
also to use different types of funding
Investment Decision Making:
Investment decisions can be described as financial resource allocation. There are different
options for investment that are suitable for purpose of assets as well as investment opportunities
that are based on investment objectives, risk profiles and return expectations. In order to make an
investment decision, the firm needs to adopt financial appraisal which consists the use of cash
flow techniques used in the financial term in order to make the best decision. There are different
types of methods to be used by businesses in order to make investment decisions. These
decisions to be made by business include a different method which is mentioned below:
 Payback period: The payback period can be defined as the required number of years for
purpose of recovering of the original cash investment. It is a period that allows the
business to produce net revenue from their investment and also recover to investment
costs (Holz-Rau and Scheiner, 2019).
 Net present calculation: It is a method that is used by the business for purpose of
calculation of current values in context to a future stream of payments from investment,
projects and a company. It is used by the company for purpose of estimating of timing,
and future cashflows as well as picking a discount rate that is associated to a minimum
acceptable return rate.
Source of finance: It is where businesses get money for purpose of carrying out their business
activities and operation. There are different types of sources of finance from which Café Pod can
access funds. All these funds have their own benefits and limitation for the business and also
these are suitable for different requirements of the business. At the time of selection of these
sources of finance, the business needs to consider its requirement. Explanations of these sources
of finance for the company are mentioned below:
Bank loans: A bank Loan can be described as a long-term source of finance for businesses that
allow them to purchase of different types of fixed assets for the business. In this type of source of
finance, banks take security from customers and also charge fixed interest (Khodamoradi and et.
al., 2018).
 Benefits: Adoption of this method of finance for the business of Café Pod does not result
in loss of control for the business. These loans can be or limited time which does not
3

create a burden on the business. Interest paid by businesses for purpose of bank loans is
deductible from the tax amount.
 Limitation: There are different types of limitations of this source of finance. In order to
access to a bank loan, a business needs to complete different formalities. Bank charges
high-interest rates which creates a burden on the business.
Crowdfunding: It is a source of finance that is raised for funding a venture or a project. In this,
money is raised from the large number of people over the internet. Café Pod can adopt this
source of funds in this business which creates benefits and limitations for the business.
 Benefits: It is one of the sources of funds that allow businesses for the purpose of raising
money in less time. Adoption of this method does not result in loss of control over the
management of the company. Its method includes less regulation for the business which
makes it easier for them to raise money (Lee and Jung, 2020).
 Limitation: It can create a negative impact on the reputation of the business in the
marketplace. In order to adopt this method, businesses require a long time of preparation
and also it consists high costs of upfront.
Peer-to-peer lending: It is one of the sources of funds that is used by the business. In this source
of funds, people can lend their money to businesses through a P2P platform for purpose of
exchange of return.
 Benefits: It is one of the methods which are available with fewer interest rates in
comparison to banks which allows businesses to reduce costs. It allows businesses to get
funds in a quick and convenient manner.
 Limitation: It is a method of the source of finance in which a business needs to pay
interest as well as additional fees. It creates a burden of higher interest on the business.
Angel Investor: An angel investor can be described as a high net worth individual who are
offering financial backing for purpose of small start-ups as well as an entrepreneur for purpose of
exchange of equity ownership (Li, Xu and Li, 2020).
 Benefits: There are different benefits of an angel investor as it provides contacts to a
person and also helps to provide guidance for purpose of improving the knowledge as
well as strategies. It provides guidance to the management of the company in order to run
the business in a more effective manner.
4

 Limitation: It results in loss of control over the business as angel investors intervene in
the functioning and management of the company. The business also needs to share
ownership in the business with these angel investors.
On basis of the above discussion, it can be analysed that business managers of Café Pod can
adopt Angel investors. It is a method that allows businesses for purpose of taking advantage of
contacts and knowledge of the investor. It is also an important method which is important for the
business for purpose of getting guidance from an experienced person (Liang and et. al., 2018).
Lo3. Development of a business plan and communication about how a person can intend to scale
up a business
1.VISION, MISSION
Vision: The vision of Café Pod is to change coffee as they want to focus on making higher
quality of coffee with great taste which can be downloaded at home.
Mission: Mission of this organization is to develop an organization that will enhance the taste of
customers and also to be world’s best coffee company. It is one of the companies which is
focusing on enhancing the success of the company.
2.STAKEHOLDERS: IN DETAIL
There are different stakeholders of this organisation including the customers, investors,
suppliers, employees and management. All these stakeholders have their own interests and power
in order to create influence over the operation of the company. An explanation of some of these
stakeholders in the context of the company is mentioned below:
The investors of Café Pod are giving the funds to the company on easy terms and conditions.
It is one of the important stakeholders for the business as they require funds for purpose of
operating in the marketplace (Marais and de Lange, 2021).
 Customers are other stakeholders to whom products and services are sold by the
company. These are important stakeholders for the company as without customers, there
is no existence of the company.
 Suppliers are the person who provides different types of raw materials, machine, tools
and equipment to the company.
 Employees are hired by the company for purpose of carrying out their operations.
Employees are the ones who are contributing to the purpose of success and growth of the
company.
5

3. CAPITAL FUNDING: WHAT AMOUNT AND DIFFERENT SOURCES OF RAISING
CAPITAL PLANS IN DETAIL
There are different sources of funds from which the business of Café Pod can access funds. This
source of funds includes bank loans, angel investors and crowdfunding. All these funds have its
own advantage and disadvantage.
Bank Loan: It is one of the sources of funds that can be raised by the business for purpose of
investment in fixed assets. Banks offer loans on easy terms and conditions to their customers.
They charge a fixed amount of interest from their customers.
Angel investors: It is another source of funds from which businesses can raise the funds. These
angel investors have experienced person who has money and provides funds to a business for
exchange of ownership (Morison, 2020).
Crowd Funding: It is a source of funds in which a person can raise money from a number of
people on the internet.
Café Pod can raise money from Angel investors as it is one of the easier sources of funds that
provides different contacts to the business. For purpose of running of the business capital of
amount 1000,000€ is required. It is the amount that can be invested by the company for different
resources.
4. OPERATIONAL PLANS:IN DETAIL
Operational plan is one of plan which is focused on the objectives as well as goals of the
business and how to reach to those goals. It is one of the document which has clear
understanding of what is to be done (Sell and et. al., 2018).
Strategies Time frame Person
Responsible
Budget Other resources
Hiring
employees
1 Month Human resource
manager
50000 Employment
policy,
application forms
Advertising
products and
service of the
company
3 Months Marketing
Manager
100000 -
Managing funds In every month Finance manager 50000 Funding
6

and allocation of
funds
and annually guidance and
policy
5. RESOURCES PLAN IN DETAIL
A resources plan can be described as a document that identifies, lists and organizes different
types of resources required for purpose of completion of the project. It is one of the plans which
provide guidance for purpose of how as well as when the resources of the company will be used.
Café Pod requires different resource for their business which allow them effectively run of
business. Some of these resources include human resources, financial resources, raw materials,
machinery and equipment and others (Yu, Yanxu and Bojie, 2019). All these resources are
equally important for the company for the successfully running of the business.
6. TECHNOLOGY PLANS IN DETAIL
It is one of the plan which includes details for what technology is to be purchased by business
and when it is to be upgraded. It is one of the mechanism which is used for purpose of
prioritisation as well as budget for the different technological tools which is important for
purpose of attainment of goals. Café Pod is a business which is using technology for different
purpose like for marketing, for process of making coffee and also for selling coffee beans on
online platforms.
7. RISK FACTORS IN DETAIL
There are different types of risk associated with a business. it is important for the managers of
the company to identify the risk on a timely basis as it allows them to overcome it. These risks
are included in the path of Café Pod are mentioned below:
Competition risk is one of the risks which can occur in the business with a competitor
increasing its share in the marketplace. There is a number of competitors present in the market
which create this risk for Café Pod.
Operation risk is another risk that occurs in day to day activities of the business that results in a
decrease in the profit. Café Pod is a business that has operational threats as its day-to-day
activities can create an impact on the profit due to employee error, external fraud as well as
damage to the assets.
7

Strategic risk is a risk that takes place in the market due to the failure of executives for
implement of the strategy. It does not allow the business for purpose of attainment of goals and
objectives.
8. MARKETING PLANS IN DETAIL:
STP analysis
Segmentation Café Pod is dividing its total market on a different basis including geographic
segmentation and demographic segmentation.
Targeting Café pod is selecting a segment on basis of its growth, market size and other
aspects. It is one of the aspects which enable the business for purpose
selecting the most profitable segment for the business.
Positioning It is a component that allows a person for the purpose of developing a distinct
image of the company in minds of its customers.
For purpose of promoting of different types of products and services of the business, it is
important for the business to adopt a method of promotion of business. For purpose of promoting
of business offerings, Café Pod business can adopt social media marketing which is one of the
cheapest methods for purpose of promotion of offering of the company (Zafar and Akhtar, 2020).
9. SWOT analysis
Strength Weakness
 It is an organization that has the best
taste in coffee.
 It has a positive image in minds of its
customer.
 Lack of availability of different
resources in the company.
 There are limited number of employees
in the organization
Opportunity Threat
 It is a business that can expand its
operation to other businesses.
 It can also offer snacks and other food
beverages at its coffee shops.
 Increasing competition in the market
can create a threat for the business.
8

Lo4. Assessment of different ways in which a small business can exit the business and
implications of different options
Café Pod is a business that is facing loss in the business and for overcoming these issues,
business managers of the company can adopt any succession method or exit option. There are
different options of exit which can be adopted by the business of Café Pod according to their
requirement. Explanations of some of these methods in the business are mentioned below:
Selling of business: It is one of the methods which is used by the business for the purpose of
exiting. This method can be adopted by Café Pod which allows them to sell all these business
assets through the auction in the open market. It is one of the methods which enables the
business to get the highest value of their company.
 The advantage of adopting of this method for Café Pod is that it enables the business to
get the highest and right values for their company and its assets.
 The disadvantage of the adoption of this method for Café Pod is that it results in
increased costs for the business as in order to organize the auction, the business needs to
invest in the arrangements.
Merger and acquisition: It is an exit option adopted by business that allow them for purpose of
selling of business to other organisation. It is a method that allows the organisation to expand of
business but merge with the other company.
 Advantage of using this method is that it allow business to share their resources, increase
their reach and also helps them to take advantage of image of the merging company.
 The disadvantage of this method is that it incurs cost over the company and also it is
difficult for the company to find out a suitable business to merge with.
Winding up of business: It is another method for purpose of exiting the business. In this,
business, all the debts are cleared by the company by selling of its assets. It also enables the
company for purpose of repayment of investors, creditors, liabilities and other things.
 The advantage of considering this method in that business is that it does not require
many formalities. It is a method in which business does not require to find out a specific
buyer as they can sell to different assets to different buyers.
 The disadvantage of this method is that it is difficult for businesses to get the right
values for different assets business sold to different assets to different buyers.
9

On basis of the above discussion, it can be identified that the business managers of Café Pod
need to adopt merger and acquisition. It is a growth opportunity for the business as it enables
them to link its operation with the other company. It is also essential for the business in order to
share different resources to another organisation.
CONCLUSION
From above mentioned project report, it can be concluded that planning for growth is one of the
important activities for the business. It is important for the business as it allow them to take
advantage in the market. It helps business to get different growth opportunity and allow them to
get growth in business by the expansion of market or through the introduction of a new product.
There are also different sources of finance in business that allow them to access of funds. It is
important for the company as it assists them for purpose of investing these money for expansion
of marketplace.
10

REFERENCES
Books and Journals
Bagheri, M., and et. al., 2018. Green growth planning: a multi-factor energy input-output
analysis of the Canadian economy. Energy Economics, 74, pp.708-720.
Cirunay, M.T. and Batac, R.C., 2021. Spatial Signatures of Road Network Growth for Different
Levels of Global Planning Download PDF. Complex Systems, 30(3), pp.273-296.
Dodds, R., Dimanche, F. and Sadowski, M., 2018. Planning for growth in islands: The case of
Cuba. Tourism management in warm-water island destinations, pp.95-107.
Egidi, G., and et. al., 2020. Land mismatches, urban growth and spatial planning: A contribution
to metropolitan sustainability. Environmental Impact Assessment Review, 84, p.106439.
Holz-Rau, C. and Scheiner, J., 2019. Land-use and transport planning–A field of complex cause-
impact relationships. Thoughts on transport growth, greenhouse gas emissions and the
built environment. Transport Policy, 74, pp.127-137.
Khodamoradi, A., and et. al., 2018. The trend of population aging and planning of health services
for the elderly: A review study. Journal of Torbat Heydariyeh University of Medical
Sciences, 6(3), pp.81-95.
Lee, J. and Jung, S., 2020. Industrial land use planning and the growth of knowledge industry:
Location pattern of knowledge-intensive services and their determinants in the Seoul
metropolitan area. Land use policy, 95, p.104632.
Li, M., Xu, D. and Li, Z.S., 2020. A joint modeling approach for reliability growth planning
considering product life cycle cost performance. Computers & Industrial
Engineering, 145, p.106541.
Liang, X., and et. al., 2018. Delineating multi-scenario urban growth boundaries with a CA-
based FLUS model and morphological method. Landscape and Urban Planning, 177,
pp.47-63.
Marais, L. and de Lange, A., 2021. Anticipating and planning for mine closure in South
Africa. Futures, 125, p.102669.
Morison, I., 2020. The corridor city: planning for growth in the 1960s. In The Australian
Metropolis (pp. 113-130). Routledge.
Sell, L., and et. al., 2018, January. A dynamic programming approach for planning reliability
growth. In 2018 Annual Reliability and Maintainability Symposium (RAMS) (pp. 1-6).
IEEE.
Yu, D., Yanxu, L. and Bojie, F., 2019. Urban growth simulation guided by ecological constraints
in Beijing city: Methods and implications for spatial planning. Journal of environmental
management, 243, pp.402-410.
Zafar, A. and Akhtar, G.K.H., 2020. Effect of Succession Planning on Organizational
Growth. Journal of Social Sciences and Humanities, 59(1), pp.21-33.
11