Planning for Growth: Analysis of Key Considerations and Funding Sources for E Pellicci Cafe

Planning for growth
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Analysis of key consideration that are used to evaluates growth opportunities.....................3
P2- Application of Ansoff’s growth vector matrix......................................................................5
LO2..................................................................................................................................................7
P3- Key sources of funding accessible to companies and advantages & disadvantages of each
one................................................................................................................................................7
LO3..................................................................................................................................................8
P4 Business plan that include financial information and strategic objectives.............................8
LO4................................................................................................................................................10
P5 Assess exist or succession options for small business..........................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Planning for growth of ventures is one of the most important strategic activities of organizations,
which make firms able to plan & track progress in their revenues. In recent time, within every sector,
companies while operating their functions and operations in market focus on making plans for its better
growth. The current assignment will be based on E Pellicci, which falls under list of small cafes in
London, UK. E Pellicci is a small cafe that offers tasty and delicious food products to customers
in order to grow and sustain in market for longer run. This organization has more than 20
workers and earns profit approximately 3 billion. This study will define important considerations for
examining growth changes in context of chosen company. It will explain opportunities for progress after
applying Ansoff’ growth vector matrix and also describe sources of funding along with their drawbacks &
benefits. Furthermore, this report will justify business plan developed for growth that includes financial
information & strategic objectives for scaling up chosen firm. It will clarify succession or exit options for
cafe explaining disadvantages and advantages of each option.
LO1
P1 Analysis of key consideration that are used to evaluates growth opportunities
So, company have opportunities to expand its business operation in UK and different
parts of world by conducting effective market survey in order to gain competitive advantages.
There are numerous factors that need to be considered by E Pellicci while evaluating key
opportunities for growth and success of business. Pestle model is used to identify the way
company can gain competitive advantages which is illustrated as follows:
Resource based view:
VRIO framework can be used to understand the way company strength have contributed in
gaining competitive advantages.
Basis Valuable Rare Imitate Organised
Management Yes No Yes Yes
Products Yes No Yes Yes
Brand image Yes Yes No Yes
Innovative Yes Yes Yes No
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technology
Valuable: It can be stated that management, products, brand image and innovative technology of
company are valuable that helps it to effectively expand its business operation across worldwide.
Rare: From the above table it can be illustrated that management styles and product are not rare
as same can be easily manufactured by other organization to attract maximum individuals. So
company needs to work on its products and services in order to gain competitive advantages.
Brand image and technology used by company is rare that helps it to influence maximum
number of individuals.
Imitate: Due to no use of patent and trademark, other competitors can easily make use of
technologies or products to enjoy high profit margin.
Organised: Company have effectively organised its products, brand image and management that
have contribute in optimum utilisation of resources and achievements of company goals.
BCG matrix
Dogs: It includes products that have low market share and market growth like E Pellicci like
home made steak pie is not tasty dish of company so it have less demand and growth thereby
firm needs not have to make any investment.
Cash Cow: It can be stated as low market growth while higher market share like drink menu
have low growth but have maximum market share.
Question market: Low market share but high growth such as burger is demand by limited people
but have maximum growth potential so marketer of E Pellicci needs to think before making
investment.
Stars: This have high market share and growth such as demand of pasta, organic food is
increasing so E Pellicci needs to invest in them to enjoy higher profit margin.
Political Factor: Globalisation and strong connection between nations lead government of UK
to promote free trade regulation so it motivates E Pellicci to export and import products to other
countries in order to earn profit.
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