Planning for Growth: Analysis, Ansoff Matrix, Funding Sources

This report covers the key considerations for evaluating growth opportunities, applying the Ansoff Matrix, potential sources of funds, and making a business plan for growth for Dimello Coffee House. It includes a PESTLE analysis and strategies for market penetration, development, product development, and diversification. The potential sources of funds discussed include bank loans.

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Analysis the key considerations to evaluate the growth opportunities and justification.
.....................................................................................................................................................4
P2. Applying The Ansoff Matrix to evaluate growth opportunities............................................7
TASK 2............................................................................................................................................8
P3. Explaining the potential sources of funds.............................................................................8
TASK 3..........................................................................................................................................10
P4. Making a business plan for growth.....................................................................................10
TASK 4..........................................................................................................................................17
P5. Identify exit or succession options for SME.......................................................................17
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Planning of management is the strategic of business plan which enables owners of organisations
to plan organic and track growth in their revenue, sales and profit. This will allow enterprise to
allocate the limited and precise resources that efforts the centre change of the firm which is
driven via digital disruption and differentiate the rivalries(Mazzarol and Reboud, 2020). This
strategy and tactics will include the growth of plan this is granular records, systematic this is all
for ambitious for the ahead future business. This process sets the goals and targets and have very
righteous strategy and tactics to reach out to them. A growth plan can be considered as the
present state of the company, which includes strengths, weaknesses, threats and opportunities.
This report will cover the company Dimello Coffee House(Maye, Brunori and et,al., 2019). In
2002, this firm was founded and this company’s headquarters are in United Kingdom. This
project will cover the opportunities of growth that exist in the targeted market. Ansoff matrix is
very important to have opportunities for growth. there are various sources of funds which can be
available so this can be accurate evaluation of precise sources and this will be covered in the part
of the project. However, at the end the plan for business, Dimello company will be prepared and
also will be explaining the different success and exit various option that can be available for the
enterprise.

TASK 1
P1 Analysis the key considerations to evaluate the growth opportunities and justification.
To have a place in the market related to businesses, this is very crucial for the company to make
a plan for growth and many various models and framework of activities. If that is the case
Dimello Coffee House they recruit and select then hire the staff members to have high skills
which are capable enough for the needs of customers(Kader and Hossain, 2020). With these
variables that firm will be analysing the growth opportunities effectively.
Competitive advantage- The market competition has been pushing the businesses to do more
business which can considered very innovative. This can be counted as excellent model for
growth. The costumers are been having benefits of buy the goods at very less price with higher
quality. The enterprise knows the costumer’s taste, needs and preferences. To achieve the cost
benefits the resources can be based on the suggestions that describes the decision framework
which can be controlled in planning of resources. The main focus is on the possessions,
capabilities and competences of the organisation for edge of competitors. For the company
Dimello the model porter’s generic strategy can be used:
Porter's generic matrix:
This matrix will help the enterprise to find the correct position in the market of competition. The
company should follow this strategy that will assist to company to achieve and grow the success.
The various strategies for company Dimello are discussed beneath:
 Cost Leadership- In this tactic that focuses on the cost which can be reduced that helps
to achieve lead in the marketplace. In Dimello firm they had opted to go for this method
because it will help the company to gain loyalty of the costumers and benefits over the
dominating companies in the target market. The cost leadership strategy will help to
improvise the base of the consumers.
 Differentiation- This focuses on the making of finished goods or services that have new
elements in way to reflect the differentiation in the target market(Bruijl and Gerard,
2018). This helps the company Dimello to offer unique and different flavours of coffee in

taste and quality that simultaneously will help to gain benefits that can be competitive
benefits.
 Focus- This point focuses on the company will tend to sharp the focus of the firm into the
target market. In this strategy, the organisation focus on the help to deliver unique and
different product in the target market or gaining the leadership in the niche market area.
Boston Consultancy Group Matrix:
BCG matrix is very crucial method which will help the company to identify the growth
opportunities within the marketplace. This is helpful for the company because it helps to
critically analysis the portfolio and also to take decisions accordingly based on the finished
goods and services that will be discontinued or might be continued(Barrow and Brown, 2018).
The Dimello firm follows the BCG matrix underneath:
 Dogs- This step of the method, the finished goods growth is low and share in the target
market will be also low. Hence, this is an important that company should discontinue the
finished good this can fall beneath the category as they didn’t generate sales or profit and
also increases the flow of costumers.
 Question marks- This step tells that finished goods have high demands but share in the
marketplace is low. Hence, the company requires to make affect on things like which will
help to improve share in the market and that gives success to the firm.
 Cash cows- In this step the area which is covered is the services and finished goods will
have high in target market but the growth in the market rate is low. The organisation has
to put efforts and also do formulate the plan and strategies to boost up the demand of the
finished goods in the area of target market. Stars- In this step, the quadrant will cover the goods growth rate and share market is high
in the market, the both needs high efforts. Hence, the firm should continue the goods
which will only fall under this category and this will help to improve the brand image and
goodwill and that can generate more sales and profit into the business.
Pestle Analysis:
The company Dimello found the external factors to help the business environment in way to
make every decision will be very effective for the organisation. This is best management tool
that helps to formulate the strategic plan(Vallati and Grassi, 2019). The following here is the
explanation of external factors which affects the activities of the business:

Political Factor- The business success and failure this all highly dependent on the commercial
restrictions and political stabilities with the country. This involves these factors like government
influence, trade restrictions, tax rate and policies etc. In company Dimello, the profits of the firm
is been fluctuating into the tax rate which is decreasing and increasing. Also, the SME gets
support from the government.
 Economic Factor- The growth of the company which can affect the many economic
variables like inflation rate, interest rate and labour market etc. The GDP rates highly
effects the profitability of the Dimello firm. The organisation has sales value high with
the more high GDP rates this can lead to higher disposable income. Whenever there is
high inflation rate, the cost of materials and inputs will be seriously affected. The
instability in economic also reduce the economic of scale.
 Social factors- The company is affected severely from some social factors that can fast
change. That can be either the disposable of costumer’s income or change in preference
and taste of the costumers. This can be opportunity or threat for the Dimello firm’s
business. The enterprise Dimello and many costumers or people have this assumption
that coffee is not good for the health.
 Technological Factors- In present times, every enterprise from the small to big
organisations keep their firm updated with the helps of new trendy technologies. This is
very important for the company to be investing more in technological tools to manage the
HR procedures and payroll of the company. This will be invested with less technologies
contact that can help costumers to pay with a wave of mugs of their coffee.
 Legal Factors- The company’s fundamental to work beneath the legal framework that
can established by the local and judicial bodies of government nation. The law is set to
treat the workers as humanely and in a particular environment of work. This is crucial for
Dimello firm to provide break in between, rest and medical claims etc.
 Environmental Factor- In present situation, everyone is mostly aware about the climatic
change and this has become the big responsibility to provide excellent eco-friendly
services and products that doesn’t harm the nature. The Dimello firm in addition has been
serving the products that do not include materials like plastic that can eventually harm the
health and environment of the living things on this planet.

P2. Applying The Ansoff Matrix to evaluate growth opportunities.
Ansoff Matrix helps the firm to analyse their strategies to develop and for growth. There are
various strategies to help the organisation for the growth and development into the market.
Dimello Coffee House, will explain the model beneath:
 Market penetration: In this method, the corporation works for the current completed
items withinside the cutting-edge market. This will paintings to growth the cutting-edge
income of the product and additionally to meet the want and desires of the clients
successfully as those items are steadily hooked up already withinside the marketplace.
The Dimello enterprise attempts to hold the charges low for the product in an effort to
achieve the fulfilment withinside the market. The business enterprise is capable of
enhance income because the benefit is connected to the method(Sukma, Utami and et,al.,
2019). Also, because of low-rate method they're very aggressive advantage and at the
precise time the demerit is whilst the low charges are ready for the made of the enterprise
which reduces their earnings margin.
 Market development- With this other method company will grow their business in more
profit. The organisation will expand their firm’s business by making use of current
services and finished goods in the new target market. This can help to increase target
costumers in high number and also the sales and profits graph high of the Dimello Coffee
House. The excellent advantage is the developing market method which helps to grab
more costumers by less risk in the Dimello business. But the disadvantage can be that
when sometimes there is comparison of early market that doesn’t provide result which is
target of the organisation.
 Product Development- Within this method enterprise will tries to have development in
their recent finished goods in the current market place. This will be done when the firm is
getting huge amount of profit and sales on the goods in the recent target market. So, this
last method, the organisation Dimello will create and innovate something new for
costumers in the current goods with the to target more costumers. This is all done so the
costumers are not bored from their same goods. This method is mostly used by firm
Dimello to put some additional different features to the products and also to services.
This method’s benefit is to increase demand of new product within the firm. The

drawback can be that its rare the new goods are easily adapted by the costumers
although firm might lose their targeted costumers too.
 Diversification- This is the last approach in the quadrant, where the organization focuses
on launching new end products in a new target market. This involves the highest risk for
the business, but has a higher chance of generating revenue for the business as the
business begins to develop new products and serve more in new locations. The advantage
of this process is that the company allows for high profits. On the other hand, the
downside is that the business faces many risks and uncertainties when targeting new
services in new markets.
After analysing all the strategies for company Dimello, that will be said that enterprise will be
able to find the growing opportunities in the running market. Hence, the firm opts the strategy of
new finished goods development that will help to increase targeted purchaser in the market and
also improves portfolio which protects with a purpose of generating extra revenues and gain
competitive benefits(Jin, Liu and et,al., 2018). This will support the revenue and development
generation.
TASK 2
P3. Explaining the potential sources of funds.
Finance is wanted by each and every of enterprise. Having the great source of potential of funds
is very vital for the company. However, for the organisation there are many expenses to care of
which sometimes can’t be denied by the firm. So, to expand and also run the activities of
operations within the company in a good manner the funding is very important for the
organisation. Although, this also become very crucially important to take righteous decisions in
respect to the sources of funds which will have low-rate interest for the company. The factors
which had to be ascertained with the aid of using the enterprise at the same time as decision-
making that is associated with investment like pay returned duration wherein time is compute to
retrieve the value of investment. Moreover, the enterprise should decide the internet gift value
(NPV). This is the alteration withinside the cash that is really well worth because of inflation. All
those determinants enable the enterprise to make accurate selections for the running of
commercial enterprise and enables to spend money on such undertaking that has excessive

returns(Boylan, Philipps and et,al., 2018). These are a few alternatives to be had for the Dimello
enterprise for amassing budget for the enterprise are:
 Bank Loan- One of the finest source of money in which bank being the institution
provides the firm the loan and in return company will provide the bank some collateral
security. This interest rate is priorly determined that the company will pay for some
time regularly. Also, bank needs some papers like documentation and formalities are
also completed by the bank. This can be suited best for the SME companies from what
a company wants to find precise institutions that will fulfils all the specific needs and
wants.
Pros Cons
 The enterprise can be fast and easy
entree.
 The corporation gets a good amount of
money within one short.
 The company needs to pay some sure
amount of interest.
 Not necessarily all small and new
corporates will have access for the
funds.
Crowdfunding: Through this platform, the organisation can raise money via a variety of modest
investments from various investors(Hanák and Grežo, 2020). The company can either operate an
equity-based crowdfunding campaign where it makes equity transactions and also the reward or
an investment-based campaign where investors receive benefits in capital deals.
Pros Cons
 The company will expect the fast return
on the investment.
 There can be a chance that corporate do
not offer, as promised which will result
into failure of brand goodwill and
public image.
 If the patent rights haven’t been taken
then the idea will be distorted and stole
via someone else.

 Government grants and subsidies: This can be counted as a local, state and federal
government authorities that can be beneficial for the project of the company. This can an
actual method of transferring payment. That do not include any technical and also not the
financial support like direct appropriation, loan and revenue distribution. This security
will not kept to expect or to also give back the money is taken but this is expected to
utilise the funds for purposes which are stated in the enterprise.
Pros Cons
 The paying back will be not required.
 This is available to SME organisation.
 This is time consuming procedure
which can be applied for grants and
also to finish up the paper regulations.
 The enterprise is compulsory to meet its
precise and main standards.
In case of Firm Dimello, the corporation should go for the option bank intuitions for loan
and consider the source of funds for the business as they can pay a sure amount of interest rates
on systematic basis for specific time. This will support the corporation to have protected finance
which is compulsory to prepare themselves for competitor market for interests to pay on
systematic intervals.
TASK 3
P4. Making a business plan for growth.
Executive Summary: In the business plan, there is detailed scrutiny of the enterprise Dimello for
profit and growth. This is a small firm in UK. This corporation is planning to boost their
company’s business to which they intend to make an actual business plan.
The objectives and purposes are:
• This enhances the finished goods' portfolio.
• The company will be in a strong and competitive position as a result of this.
• This contributes to a 5 percent increase in the company's sales over the next three months.

About the Company: Both the organizers Ioannis Iosifidis and Ms. Niovi Kallergi, is planning to
grow and cultivate the business of Dimello firm by addition in their market share. They are
focused in special items such as coffee beans, capsules and ground coffee, and also the home
equipment’s. They pay devotion on the sense of taste and also the quality of coffee the and
flavours of the coffee. Also, they will record the sales in ground coffee(Vlados, 2019). The long-
term enterprise business goal will be to gain a solid position in the target market via expanding
business in various sections across the world.
Market analysis: This is very vital to analyse the market in which corporation will operate their
firm’s business and that helps firm to target loyal consumers in the most actual and well-
organized way. For this purpose, the Dimello corporation will be using STP approach:
• Segmentation: There are specific approaches wherein customers are targeted. In this situation
of Corporation Dimello, they goal line their customers on the premise of psychographic
segmentation and behavioural segmentation. They can segment customers via understanding
their lifestyle, preferences, tastes and reviews what they will opt to consume and much more.
• Targeting: People who loves drink coffee like espresso and adores it.
• Positioning: The firm Dimello has to loyal and fantastic goodwill because it serves offerings to
the target customers with quality goods.
The corporation focuses on their goods and amenities to target the audience and then to
enhance returns and revenue. This is rather important to know and examine the competitors that
exists in the targeted marketplace such as Costa Coffee which are hard competitors.
By examining the rivalry this will help to gain competitive advantage and also articulate
strategies. This can also be done by reduce the prices that can attract more trustworthy
consumers. Hence, they modify and modernize their services and their goods like coffee
expresso on regular basis so the costumers do not get bored. Dimello never compromised on the
good’s quality which is a vast advantage for the brand Dimello Coffee House.
Capital Raised- To generate funds is necessary for the corporation which helps to function
activities in a levelled way. Bank loan can be used by the chosen enterprise that will be Dimello
and this is also suitable for funding(McKeever, 2018). This helps to know the period of rate of
interest and payments. The firm will also plan to offer quality goods to its loyal customers in the
target market.
Market or Sales Strategy:

 Marketing strategies: This strategy of Marketing is a procedure which creates alertness
among their customers about their contribution and brand. Dimello firm promotes their
finished goods with actual marketing strategies. They used social mediums like
commercials advertisement and TV etc. Revenue Sources: The corporation will be able to create more sales and turnover by
selling grounded coffee in the target market. Sales strategy: The enterprise will focus on the choices of online orders and take aways
which supports them to improve the returns and revenues. Pricing strategy: Penetration pricing strategy will be used by the organisation Dimello by
which customers will be attracted. They also attract consumers by serving their
company’s coffee with least prices. Marketing and communication strategy: Digital marketing strategy can be used by the
firm to grab loyal customers attention.
Resources-
Research and Development: This is found that the organisation can conduct its research by
exploring the road map of technology. They also can focus on the new and latest trends using
that kind of roadmap. Research and Development team can focus on the latest market trends and
timely inform the firm that how they can innovate their products.
Staffing and operations: Observation is that the workers of the organisation are very significant
and that plays a vital role in the formatting and innovating of any further new finished goods.
The productivity of the firm will be also in hands of workforces. Additionally, the Dimello will
likes to use divisional structure into the firm’s business.
Financial projections:

Main assumptions:
 Coffee is the key product and source of income and revenue.
 New individuals also will be invited for interview if in upcoming there will be vacancy in
the organisation. Suppliers will also be salaried off within 30 days.
Profit and loss statement:

Balance Sheet:
Cash Flow:

Sales pipeline:
SWOT analysis:
Strengths Weaknesses Opportunities Threats
 This includes
the maintaining
of the value
and preference
of the goods
 This requires a
finished good
and huge
amount of
investment this
 The demand
and necessity
for goods of
Coffee is more
in young
Familiar sector that
can have a big
competition in the
market(Rosslyn-Smith
and Pretorius, 2018).

that is coffee in
order to rise
the customers.
 The workers
are the assets
of the firm as
they devote
themselves and
also work hard
together for the
enterprise.
will be needed
to pay a
specific
amount of
interest rate on
systematic
basis.
 The
expenditures in
the
campaigning
for marketing
is high and
which shows
the enterprise
that will lack
awareness.
generations.
This can be
better
opportunity to
upscale the
sales of
business.
The chosen company
Dimello fear might
lose the loyal and
target audience.
Risk Factors-
 More coffee enterprises in the target Market.
 Substitute finished goods like expresso coffee easily available.
 Small company like Dimello will go in loss as individuals’ loose interest in the company
and its goods.
 Financial Uncertainty due to low sales.
TASK 4
P5. Identify exit or succession options for SME.
An exit strategy is made after the plan that can be used by the corporation to leave their business.
All existing enterprises needs succession and exit strategy at one specific time and this also even
means to transfer the ownership when the single owner agrees to leave the company. In case of
the enterprise Dimello, these following options can be used:

Liquidation- This will be the closing of the firm and will be selling off all the possessions
among creditors and stockholders Abdullah, 2020). This can be the last key for the firm as the
owner will make profit margin by selling all the valuable items and assets and the traders and
business relationships are lost.
Pros:
• quite simple and easy to exit.
• This may be a brief way of closing.
• The proprietor might have the option to make income via promoting the possessions which he
owns.
Cons:
 if the organisation has creditors the enterprise may pay revenues from the first sell as they
are liable for it.
 Other choice is to pay himself until the finances of corporate that run dry and afterwards
the owner ultimately has to close the company. This is also called the lifestyle business.
 The additional stockholders can be upset with the circumstances.
IPO (Initial Public Offering): Basically, a corporation initially sells the stock of the
firm publicly. Corporation typically will go via this procedure to rise the additional capital.
However, the organisation goes for this option to go in public and its counted huge step,
luxurious and there is long way and later the corporation becomes subject and this is required to
report in public.
Pros:
 This step can be profitable for the company to go public. This help to rise the publicity, brand awareness and status.
Cons:
 This step can be tedious, expensive and long process.
 Transferring the corporation into public that can involve new obligations like handing
over data about the finances of the business, operations or also to fill SEC reports and
administration.
In Dimello company’s case, liquidation might be quality that is suitable to go out the
enterprise as that is a standardised way which has a limited guidelines that is

accompanied via the liquidator. At the identical point, the lenders and debt holders that
can be paid off. Also, the proprietor of the organisation may be pressure free.
CONCLUSION
This project will be concluded as the debate of small enterprise that is Dimello which is small
corporation which sales coffee in UK. The project talks about the SME offers the employment
which plays a vital role in the economic development of UK. This is a fundamental that helps to
formulate tactics and strategy to raise and work it in the effective way. To evaluate opportunities
there are various models that is used in the project by the firm Dimello like PESTLE analysis,
BCG matrix, Ansoff matrix and porters’ models etc. Similarly, there is a discussion that is
associated to the sources of funding such as bank loan and Government grants and subsidies etc.
Active business plan that will help Dimello business to raise and works the business in such a
way that it creates more and more opportunities. Exit and success options should be quite chosen
by the enterprise.

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