Planning for Growth

This report provides a brief study on CafePod coffee company which is established in London, UK. It provides information for strategic planning, growth opportunities, potential sources of funding to facilitate the planning growth of the company effectively.

Planning for Growth

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Potential Growth Driver for Business..........................................................................................3
Analysing Growth Opportunities with Ansoff Matrix.................................................................5
LO 2.................................................................................................................................................6
Potential sources of funding.........................................................................................................6
LO3 .................................................................................................................................................8
P3 Business's plan........................................................................................................................8
LO4................................................................................................................................................11
P3 Exit strategies for small business..........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business has the main objectives is to maximize profit and grow by attracting more
customers to increase its customer base effectively (Alden, 2017). It is very essential for
businesses assess all the resources available by developing an effective strategic plan for growth.
Growth planing also provide effective vision for the company to understand all the market forces
and attain core competency by increasing satisfaction of customers and making them loyal. This
report provides a brief study on CafePod coffee company which is established in London, UK. In
addition, this report provides information for strategic planning, growth opportunities, potential
sources of funding to facilitate the planning growth of the company effectively. Furthermore,
report provides business plan for CafePod and exit strategy to increase the profit margins and
avoid all the risks effectively.
LO 1
Potential Growth Driver for Business
Increase in the demand of customers has increase the pace of changing market trends and
customer;s buying patterns. It is very essential for CafePod to examine the external business
environment factors which impact the quality products and services in market to increase the
growth opportunities. By analysing all the factors it helps the company to determine all the
customer needs and wants to increase the efficiency of its products and services effectively.
Vertical Integration
It is the procedure of evaluation for market opportunities in the supply chain tom gain
better control over the market and increase the growth opportunities of the company effectively.
This helps the business to develop effective structure in the market reduce cost of operation a to
formulate effective pricing strategies and attract more customers effectively CafePod Coffee
needs to analyse its supply chain to increase the efficiency of value chain and increase
satisfaction level of its customers and grow in market with effective products (Mell, 2018). Due
to increase in the demand of coffee in UK market and higher income level of customers its is
very essential for CafePod to determine the suppliers to collaborate with them and also reducing
their bargaining power effectively. To improve the quality of products and services company
also has to examine the available resources in the market to gain higher degree of
competitiveness and adopt technology to increase performance of the company.
Backward Integration

In this type of integration CafePod needs to analyse the upper business in the supply
chain to gain higher control on the customers and increase their satisfaction level effectively
(Suomalainen and Xu, 2016). This strategy enables the company to become more active in
collaborating with the manufacturing units and suppliers in the current market to reduce the cost
of production and increase profit margins effectively. Forward integration also improves the
efficiency of the business to innovate in the market with its own resources. However moving
upwards in the supply and value chain company has to invest a high capital which is very
difficult for Cafepod due to its small size and high growth potential to compete.
Forward Integration
In this type of integration the business focuses on expanding its business in the lower
level of value and supply chain to increase the efficiency of the company attain competitive
advantage. This strategy helps to avoid all the mediators from the value chain to increase the
profit margins of the company and grow effectively (Abor, 2017). It is very essential for
CafePod to determine the distribution channel to improve tits delivery services to its customers
as the company is already a retailer the requirement of the funds is less. This increases the
efficiency to attract more customers to coffee shop by adopting online deliveries and social
media marketing effectively.
Horizontal Integration
Horizontal Integration is the process of acquiring the business which is I n the same
market and has same nature of its products and services in market. This helps the business to
increase its size to attract market customer and increase the profit margins effectively. However,
this integration decrease the control for decision-making as in this strategy the ownership of the
business shared and operate. The horizontal integration can also take place in the different
industry to increase the product range in the company and reduce the risks of market changes and
gain better profit margins effectively. It I is very essential for CafePod to understand the market
situation to invest and gain better opportunities to grow effectively. This also helps the company
top reduces its competition level in the market with collaboration with other business CafePod
also increase the experiences and information to make informed decision and strategies to
expand its business and increase sales effectively.
Key Drivers for Growth

There are some key drivers which helps business to increase its performance to achieve
growth opportunities effectively.
Capital
Capital is the financial support which very business needs to perform its tasks to reach its
goals and objectives effectively. Capital is very essential for CafePod to develop its resources
and attract more customers with effective potential.
Human resources
Human resources is the essential factor which helps the business to achieve its objectives
by formulating strategies and managing them. CafePod has increase its efficiency to grow by
recruit in potential employees in the company which help to achieve its objectives effectively.
Technology
Technology provides efficiency to business to resource cost and improve profit margins
effectively. CafePod need to adopt effective social media marketing and also provide adopt
digital equipments to increase the satisfaction of customers tom make them loyal.
Analysing Growth Opportunities with Ansoff Matrix.
Ansoff matrix is planning tool which support business to make effective decision to adopt
effective growth opportunities and improve market share in market to attain core competency
effectively.
Market penetration
This business growth strategy focuses on development of same products and existing
market. This also helps the company to increase the potential of business to grow without much
investment as this strategy focuses on techniques to increase the customer base and attractiveness
of the company effectively. It also helps business organization to emphasize on promotional
activities and reducing prices of products to increase customer satisfaction effectively (Valler
and Phelps, 2016). It is very essential for businesses to analyse market trends and customers
needs and wants to formulate effective marketing techniques to increase brand value of company
in market effectively.
Product Development
Product development strategy as the name suggest focuses on development of new
products in the exiting market according to needs and wants of market customers effectively. It is

very essential for business to understand all the factors to innovate the products and increase
satisfaction effectively.
Market Development
This strategy helps business to focus on expansion in new market with existing products
which increases the opportunity to increase customer base and gain higher profit (Choi, Kim and
Chung, 2017). This strategy also has very high risk due to new market and different market
factors it is very difficult for business to compete in the new market with the existing
competitors.
Diversification
Diversification strategy helps business organization to focus on developing new products
in new market which helps to increase opportunities and gain competitive advantage in market
effectively. This helps business to develop innovative products and services in new market
effectively. This strategy has the advantage of reducing risk by increase its product range of
different nature to target more customers effectively.
Recommendation
Cafe Pod Coffee company need as to adopt market penetration strategy which also
increases the opportunity for business to grow with limited resources and restrict the increase in
its cost of operation. This strategy will also help business to gain more profits by attracting
maximum customers and adopting effective digital marketing techniques. This strategy also
provide an effective understanding of all the market products by the competitors to make
effective marketing strategies by offering better quality of coffee with reduced prices and high
quality of ambiance.
LO 2
Potential sources of funding
Funding is simple act so that the companies in the market can get resources and fulfil the projects
and programs of the organization so that the company can achieve their objectives from time to
time. There are a lot of funding options which a CafePod Coffee can have for getting in the
money form so that the organization can achieve their objectives.
Personal Saving

The owners of the Cafe can invest their personal amount in the Cafe for the growth of the
business in the market. There are a lot of advantages and disadvantages which the organization
can have regarding this kind of fund which are as follows.
Advantages: The control on the organization will be completely of the owner and no one else
can take that away from the company which is a great advantage for the company.
Disadvantages: The biggest disadvantage of this fund is that all the personal savings will be
gone which is going to be very harmful for the owner for a future emergency in the family.
Venture Capitalist
In a venture capitalist there is not just money which is provided to the company but also
experience so that the small organization can have a better start up in the market (Kim, 2017).
These funds are provided to those organizations who have a high potential in the market and can
earn a high profit margin.
Advantages: There is a sense of guidance in the Cafe which can be very helpful for the growth
of the market and the organization will be able to have a better market for themselves
(Ruparathna and et.al., 2017). Getting knowledge and experience is a great advantage for the
organization and can help the organization to grow in the market better.
Disadvantages: There is a sense of control on the organization which can be lost in this process
which can harm the organizational goals and objectives (Pan and et.al., 2019). The clarity in
organization will not be present which will misguide the Cafe.
Debt Financing
This is a kind of fund in which loans can be taken but have to be returned to the future and if the
organization is unable to pay the debt back then that organization can lose the asset and the
company.
Advantages: The organization will not lose their control on the business and the decisions for
the future will be more applicable and better planning for the Cafe.
Disadvantages: There is a risk of losing the asset and the company which is why planning and
strategies for the company have to be planned well otherwise everything can be lost in the
market.
Angel Investor

Angel investors help the start up's to build their future as an entrepreneur who would
need money related help. They take ownership in the company so that they have assurance that
they will get back their investment in the company.
Advantages: Angels can help the start up's to grow in the market which is going to be very
helpful.
Disadvantages: CafePod can not lose their ownership or a share in the market which is why they
will not opt for this kind of investment for the Cafe.
Sources applicable for CafePod Coffee
The most suitable venture which CafePod should opt for is the debt funding so that they
do not lose their ownership in the Cafe, and they can have a clear objective to achieve their goals
and that is going to be very helpful (Tian, Ge and Li, 2017). Having a control on the business is a
very important factor for the company and that will help the organization to have a better funding
for themselves which can make the company have a competitive advantage in market.

LO3
P3 Business's plan
Executive Summary
Business's plan is prepared to launch a new products by the firm in order to gain competitive
position in the industry. This plan has analysis internal and external factors of environment that
affect on operation's of business's and helps in increasing profitability and sales volume of
company. It also discusses various marketing and sales strategy that company is planning to use
in order to launch new products in the market. Financial plan and projection is also made to
identify sources and requirement of funds in order to introduce organic foods in product range.
Mission: Cafe-pod mission is to provide better and standard services and products to
customers.
Objectives:
 To meet needs of customer's in effective manner
 To enhance profitability and sales volume of company
 To build a strong brand image in the market.
Business's overview: It is an independent small scale business's that is operated in south of
London and founded to provide strong and adventurous coffee to drinkers. It is growing at fast
stage and is able to meet needs of large number of customers so planning to further expand.
Market Analysis and competition: Company by analysing various environmental factors is
able to expand and grow its business's across UK and increasing its sales and profitability
(Mariani, Morelli and Bartoloni, 2019). Thus, pestle analysis of Cafe-pod Coffee is done below
to know about various threats and opportunities available in the market.
Political: Policies of government have to be incorporated by company for smooth operation's of
business such as instability has impact on various small business's. But Cafe-pod is able to
survive by bringing continuous innovation and new ideas there by meeting needs of coffee
lovers.
Social: It has positively impact on company grow and success as people of UK loves to drink
coffee and spend their leisure time in such cafes. So it had lead to increase in sales and
productivity of company.
Economical: Economic condition of UK is not good as it is suffering from high employment
rate and lower disposable income and prices of input products have also increased so it has

impact on cost of production and its profit margin.
Technological : This factor also affect Cafe Pod as the cafe have to make continuous
innovation and use new and updated technology in order to meet demand of customers (Lin,
2019). Thus, it has lead to decrease in cost of production within limited time and cost to achieve
company goals.
Environmental: It is another factor that impact on company is it had to ensure health and
safety of people and employees so that it can gain competitive advantages in the industry.
Legal: Various legal laws are followed by company for smooth operation's of business's and
achievement of goals.
Ansoff matrix:
Market Penetration: In initial stages company is planning to increase its sales by sales existing
products to existing customer's. Product development: Presently cafe is planning to launch
new products in existing market share. Market development: As company is small scale so is
planning to enter into new market in the future (Fulker and et.al., 2016). Diversification: It is
most risky situation as firm is unaware about market preferences and the product introduce so
less preferred by Cafe-pod.
Marketing and sales: It is planning to promote products through advertisement through
hoarding and advertisement in TV, newspaper. Brand images of company is also high that it
provide qualitative products to customers so it helps in increasing sales of cafe.
Organisation and Management: Management and organisation is also small and innovative
so it is able to meet needs and demands of customers in an effective manner. Decision-making
of company is also fast so it can gain competitive advantages in the market. Effectively
management helps in motivating employees to work effectively for organisational goals.
Indefinite organisation structure helps in quick exchange of information between employees
and management.
Financial Plan and projection:
Start-Up expenses Amount
Legal 1000
Insurance 150
Contractors 800

Material required for promotion 200
Others 300
Total 2450
Start-up Assets Amount
Cash required 20000
Start-up inventory 23000
Other current Asset 10000
Long term asset 57000
Total Asset 92000
Total requirements 1250000
Start-up finding Amount
Liabilities 15500
Other current 12000
Long Term liabilities 45000
Total Liabilities 90000
Investors 3
Total start-up findings 92000
LO4
P3 Exit strategies for small business
Exit strategies needs to be planned by every firm as every investors wants to know about
various strategies of owner in order to close down its operation's. Exit strategies helps business's
by planning in advance about various strategies to shut down operation's. Therefore, various exit
strategies that can be used by small business's are as follows:

Liquidation: It is most useful techniques in order to shut down operation's by selling most of the
asset of company and paying it's all liabilities. Owner of the business's is not responsible for
various losses and profit in future generation.
Advantages: It is one of the most easiest process that can be used by company.
Disadvantage: But it most of the time it yield lower result or less value of assets and liabilities
of company are first paid to creditors.
Legacy: It is another method through in which ownership of business's passes to next generation
and used In situation when the owner of company wants to have control over enterprise even
after close of operation's (Walters, 2016).
Advantages: It helps in maintaining control of business's by owner of the company.
Disadvantage: May the successor not have enough skill and knowledge to perform work.
Sell in open market: It is the best and one of the famous strategies for small business's to sell its
business's in open market in order to get specific amount.
Advantages: Owner of company get maximum value of its asset and goodwill.
Disadvantage: But it is to difficult to value price of asset so it may result in lower pricing of
various asset.
Merge: It is another option in which two or more than two company merger with each other in
order to gain competitive advantages by sharing each other goodwill and asset to meet customers
need.
Advantages: Both company is able to expand its market share and profitability.
Disadvantage: it is difficult and time-consuming process.
As per above analysis and evaluation Cafe-Pod can use merge exit strategies as by
merging with some other company it can increase its capital and resources (Dutton, 2016). At the
same time both company by using each other brand image and profitability is able to expand its
market share and sales volume for achievement of organisational goals.
CONCLUSION
From the above report it can be concluded that there is need for organizations or start up's
to analysis the market before they start a business so that they can understand the competition
and customer needs and demands. There are a lot of funding options which the organization have
so that they can fulfil the objectives they have for the growth of the company. There is a better

understanding of the behaviour of the customers and the organization will be able to make
decisions accordingly which is a great factor for the organization.

REFERENCES
Books and Journals
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Changing Institutional Landscape of Planning (pp. 67-94). Routledge.
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genetic algorithm and stochastic growth algorithm. Ships and Offshore
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influence engine investment--asset age, exit strategy or a track record working with
lessors. Airfinance Journal.
Fulker, D and et.al., 2016. A case study of the Grey Oaks Community and Club: Creation of a
high-performance culture through the innovative use of a data-driven business
plan. International Journal of Hospitality & Tourism Administration. 17(1). pp.72-99.
Kim, K.J., 2017. Inner-city growth management problem in Seoul: residential rebuilding boom
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Lin, E., 2019. The Business of Bariatrics: Creating a Business Plan.
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Pan, H and et.al., 2019. Using comparative socio-ecological modeling to support Climate Action
Planning (CAP). Journal of Cleaner Production. 232. pp.30-42.
Ruparathna, R and et.al., 2017. Climate conscious regional planning for fast-growing
communities. Journal of Cleaner Production. 165. pp.81-92.
Suomalainen, T. and Xu, Y., 2016. Continuous planning through the three horizons of
growth. International Journal of Agile Systems and Management. 9(4). pp.269-291.
Tian, L., Ge, B. and Li, Y., 2017. Impacts of state-led and bottom-up urbanization on land use
change in the peri-urban areas of Shanghai: Planned growth or uncontrolled
sprawl?. Cities. 60, pp.476-486.
Valler, D. and Phelps, N.A., 2016. Delivering growth? Evaluating economic governance in
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Walters, J. P., 2016. Exploring the use of social network analysis to inform exit strategies for
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pp.92-103.
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