Planning for Growth Assignment : Antipode company

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION.....................................................................................................................................3
LO 1...........................................................................................................................................................3
P1 Consideration of aspects while evaluating growth opportunities....................................................3
P2 Opportunities for growth applying Ansoff's matrix.........................................................................6
LO 2...........................................................................................................................................................7
P3 Potential sources of funding available to businesses and benefits and drawbacks of each source. .7
LO 3...........................................................................................................................................................8
P4 Explain how a company can grow with the help of business plan that involves financial
information and strategic objective for growing up of business...........................................................8
LO 4.........................................................................................................................................................10
P5 To determine the options on succession of small business with its advantages and disadvantages.
.............................................................................................................................................................10
CONCLUSION........................................................................................................................................12
REFERENCES.........................................................................................................................................13

INTRODUCTION
Business growth means increases the scope of business by expanding business and measures to
develop business (Bravo-Biosca, Criscuolo, and Menon, 2016). The study will be based on Antipode
company which is a coffee company in U.K. In this report we will study about responsibilities that are
consider in the growth opportunities with the help of company context. Report will assess the chance
for growth in organization with ansoff matrix. Opportunities that are available to business for funding
from various sources with the benefits and disadvantages for each source will be discussed in this
study. It will produce business plan in order to accomplish the goal of firm . Various succession options
with its advantages and disadvantages will be explained in this study.
LO 1
P1 Consideration of aspects while evaluating growth opportunities
Every business before starting up has to evaluate his growth opportunities to be successful and
ongoing. Antipode one of the most renowned cafe, at Hammersmith flyover. Every business is started
with a motive , the motive of Antipode was to serve the people of London with magic of Australian
taste (Ward, 2016).For this purpose it has to analyze risk factors ,strengths ,weaknesses and growth
opportunities. Having the right strategy is a priority for ensuring sustainability. Antipode would have to
evaluate several factors for its growth prospects such as :
Political Factors
Government and political organizations do impact a lot on any business, new credit
facilities ,subsidies, tax holidays ,can help a business in its growing stage, move for digitization has
provided a new level to the customer base and Antipode can take advantage of it.
Economic Factors
Antipode to grow have to consider economical factors, target customers and to decide the
prices accordingly, increase in prices can shift the customer base towards the competitors or substitutes.
But stable economic growth, means rising purchasing capacities and that can bring new opportunities
for the Antiopde (Castaño, Méndez and Galindo, 2016).

Socio-cultural factors
Social changes like changes in trend and tastes, considering new taste of the customers can
come out with something new and interesting like invention of nachos, being already in existence
Antipode would not have to search for a new customer base, that is a positive point for it.
Technological factors
Technologies have opened a way too far any business in the present time. Online
ordering ,machine processing, etc. The best technological example is Zomato which have increased the
sales of restaurants and cafes upto ten times, by making the food available at the doorsteps of the
customers. Antipode can use it as an extra advantage(Storey, 2016).
Environmental factors
Location of the Antipode comes under the environmental factors, and it can be used as the
biggest advantage. As it is situated at the palace road it can attract a no of tourists along with the local
customer base.
Porter's generic strategies are very useful for determining the direction of the the business.
1.Cost leadership
2.Differentiation
3.Cost Focus
4.Differentiation focus
Cost leadership
Antipode have two options at this course. Either to target average customers keeping the prices
as low as possible thereby acquiring a large customer base and market share or to target premium
customers but this would have slow growth comparatively. At the same time it will have to consider its
material and labor costs for expansion as it can bring down the profits of the Antipode despite of
increase in sales(Storey, 2016).
Differentiation
For targeting a broader customer base Antipode have to offer something new and unique with a
completely different taste. This can be done by some market research in the field and ongoing tastes
and preferences. Some new Australian dish could be added on or a new Australian and London
combined product could be invented.
Cost Focus
If niche marketing is targeted mean little competition, and focused market, Antipode have to
consider wishes and demands of customers, ensuring that the prices of the products and offerings
remain low(Roig-Tierno, Alcazar, and Ribeiro-Navarrete, 2015).

Differentiation Focus
In this Antipode have to ensure that its products remain unique and this involves brand loyalty
among consumers. For its growth and expansion its important that product remain unique to stay ahead.

P2 Opportunities for growth applying Ansoff's matrix
As Antipode Coffee Shop want to enter into new market for the growth of the company,
through the application of Ansoff matrix(Cater, and Young, 2016). This matrix will help Antipode
Coffee Shop to assess for growth possibilities and also help in choosing the best option for investment
return. Through this matrix the company will be able to assess the risk that the particular growth
matrix can cause as the company will move from one part to another of growth matrix. To enter into
new market this matrix will help the company to analyse the existing markets as well as products. This
matrix includes four main growth strategies that are market penetration, market development, product
development and product diversification these are explained below:-
1. Market penetration:- This matrix refers to selling the products of the same category to the
present customers. It explains that in order to achieve the loyalty and values of the customers the
Antipode Coffee shop have to find possible new methods such as:- improving the process ,
increasing the working hours that will result to sustainability of the product.
22 Market development:- This matrix states that in order to achieve the growth the Antipode
Coffee shop can capture new market for the existing products by segmenting the market
according to different factors like geographic, demographic as well as psychological.22 Product development:- This matrix states by applying this growth strategy that Antipode
Coffee shop can recreate the products by adding new features , by changing different
characteristics of the products like- colour, packaging, size, design, price, quality,quality by
completely offering a new product according to the changing needs and requirements of the
present customers that will result to increase in demand for the product as well as brand name.22 Product diversification:- This strategy is considered as one of the most risky out of all the four
strategies. Through this strategy the Antipode Cafe can achieve growth by selling the newly or
recreated products in the upgrading market. Diversification can help antipode cafe successfully
if it has a good brand name(Cater, and Young, 2016).
From the above discussed growth strategies stated by Ansoff the Antipode Cafe should adopt the
market development and the product development growth strategies as it has a good brand name in UK.
As market development strategy will help Antipode Cafe to expand the market internationally by
segmenting the market according to demographic, psychological and geographical groups where the
company will discover new potential buyers as well as customers for the company's existing products.
Through the product development strategy the company can fulfil the changing needs and requirements

of consumers by changing the process of production, by recreating the products , by changing the
characteristics like product design packaging, colour, quality, quantity, price in order to increase the
sales as well revenue for the sustainable growth of the company.
LO 2
P3 Potential sources of funding available to businesses and benefits and drawbacks of each source
For the purpose expansion and growth of the business internationally as well as to enter into
the newly upgraded market(Burns, 2016). There are various sources of funding that Antipode cafe can
adopt for the effective and efficient use of funds are:- bank loans , personal investment,
1.Personal investment:- It is the best source of financing that Antipode Cafe can use for the expansion
and success of the company in an efficient and effective manner by investing from the personal
savings. This source of financing can impact the company in both positive and negative ways:-
Advantages
a) Safest way of funding as the investment is done through the own personal savings.
b) Less formalities are their as there is no need of any legal documentation required from others.
Disadvantages:-
a) This strategy is suitable for small businesses only.
2.Venture capital:- In this type of strategy the owner of the Antipode cafe can appoint venture
capitalist for the proper management of funds as well as for the requirement of funds in order to
expand the business(Barnes, Kempster, and Smith, 2015). In which the venture capitalists will invest
the money by buying the shares. This source of financing have impact in both positive and negative
ways:-
Advantages:-
a) Sustainability of the company for long term
b) Increase profitability.
Disadvantages:-
a) Highly risky.
b) Is a complex process of financing.
c) It is uncertain.

3. Crowd funding:- It is the another new source of financing that Antipode cafe can adopt in
order to manage investment as well as to earn maximum profit(Burns, 2016). In this type of
funding the owner of the company will give the detailed information about the objective of the
company on the online website so that the customers will come to know about the objective of
the company and will contribute the money as per the liking of the idea of the business.
Advantages:-
a) This source can be the fastest way of raising the funds of the business.
b) Feedback of the consumers that will help the business for the improvement.
Disadvantages:-
a) Easy access of information as the investors can easily access business funding idea can through
crowdfunding.
b) More consumption of time.
From the above stated information regarding the sources of funding the Antipode Cafe should adopt
the personal investment source of funding for the proper management of funds as well as for the
growth of the business effectively and efficiently. Through this source the investor will have the
advantage of ownership and all over control of the business as whole and also their will be no
requirement of any legal formalities from others(Barnes, Kempster, and Smith, 2015). The owner of
the business can withdraw according to the need and also there is no need of depending on any
investor outside. Through this funding the owner will come to know about the funds available and to
control the business by spending less. This will result to safe future investment for the company's
growth.
LO 3
P4 Explain how a company can grow with the help of business plan that involves financial information
and strategic objective for growing up of business.
Antipode company can expand its business to earn more revenue with increases in reputation of
the company globally across the world(Gielnik, Zacher, and Schmitt, 2017). Some of points that can
help the company to grow its business are as followed:
Company profile: Antipode company established as a coffee shop company in 28 Fulham palace rd

London W6 9PH U.K with less then 10 employees.
Objective and Mission: Objective is to expand its business and increases their reputation in domestic
as well as international market with higher revenue. Mission is to become globally ranked coffee
company with higher quality product and best services.
SWOT analysis:
 Strength of the Antipode is that it is
experienced in business.
 Use of technology instead of labour.
 Weakness of the company is not able to
meet the requirement of its customers.
 Customer satisfaction being not able to be
fulfilled.
 Threats of the company are rival company
in the market with innovative ideas.
 Advancement in technology is taking fast.
 Opportunities for the company is to
expand its branches in other countries and
as well globally.
 To make diversification in product.
PEST: political factor of Antipode will get influence by government policies that(Eijdenberg, Paas,
and Masurel, 2015). Economical factor for company will influence by the growth rate in the country
and labour cost. Social factor for the company will be affected by the culture of coffee in people with
including health awareness among people. Technological factor for the company will influence with
technological update and introduction of coffee machines .
Market mix: In product strategy the company can bring various flavors in their product with varieties
can be generated. In price strategy Antipode can give discount on various occasions and keeping price
lower from its competitor will help to attract more customers. Place strategy in company plays an
important role. Suitable place for Antipode will be near market area. Promotion strategy is important to
grow the company through advertising the product will increases the knowledge in consumers and
attract consumers to visit Antipode(Eijdenberg, Paas and Masurel, 2017).
Segmentation,Targeting and Positioning:
Demographic segmentation strategy will be applied by Antipode company and it will target people on
the bases of their age and income. Differentiated targeting strategy will be used that would help in

gaining attention of mass audience. Furthermore, cost positioning tactic will be implemented, it would
give benefit of raising profit of the organization.
Financial planing:In Antipode company the main focus is to increases the revenue of the company
provide high quality product and reducing the margin of operating cost. Increase level of healthiness in
product.
Income
Sales 17000 17085
17170.4
25 17256.277125
17342.55851
0625
17429.27130
31781
Total cash flow 17000 17085
17170.4
25 17256.277125
17342.55851
0625
17429.27130
31781
Cash outflow
Rent 4000 4000 4000 4000 4000 4000
Marketing expenses 3000 2500 2400 3200 3400 3000
Salaries 5000 5000 5000 5500 5500 5500
administration cost 1000 1100 1200 1000 1200 1200
total cost 13000 12600 12600 13700 14100 13700
net profit 4000 4485
4570.42
5 3556.277125
3242.558510
625
3729.271303
1781
Maintaining and Controlling: In this the growth of business will increases when company time to
time control the operation of the Antipode and see the standard goal has been achieved or not. Like
controlling the quality of product, mange services,etc(Weber, Geneste, and Connell, 2015).
LO 4
P5 To determine the options on succession of small business with its advantages and disadvantages.
Succession planning in company is done when company wants to exit the market, wind up
business, company cannot compete with its rivals,etc. Antipode company sells its business to know

important responsibilities and to search for suitable person who can take over the company in future
with responsibility. Succession planning helps to know the required skill needed in company to run
over the company in future which helps the company to identify the skills that are available within the
organization. Succession planning is important step in success of company if it is not done then risk
level increases in company. If planning for succession is done properly with step by step then it may
result benefit to Antipode company in future(Barnes, Kempster, and Smith, 2015). Some options
which are explained below:
Company passing its occupation to heir: In this situation the company owner passes its business
to their coming generation only the family members of the company owner are able to run over the
business. Antipode can apply this option by passing on its business to its next generation.
Advantages:
 It is benefited to company as it reduces the interference of third party in their business which
converts itself in family business and includes only family member in decision making.
 The outsider in taking decision are not allowed to participate in the matters of company
operations.
Disadvantages:
 Its drawback is the successor that takes over business is not capable to run business and the
experience level is required which may lead company to the situations of loss.
 The possibility of conflicts happens more between family business and potential to takes over
business affairs decreases.
Transferring the business to employees: The situation makes company employee or managers to
to take responsibilities of company operations with transfer of ownership to the employee and
managers they can acquire resources of company(Ye, Xiao and Zhou, 2019). This situations is best for
owner of the company in case if he has no successor for company who can save the company culture
from diminishing.
Advantages:
 Benefits to the Antipode company can be, rewards given for management of company for the
support from employee for long time.
Disadvantages:

 Its disadvantages to Antipodes company can be when failure situation is faced by the company
the employee moral and their performance decreases and management can access to the
resources of the company at certain limits.
Selling the business to third party: In this case the company owner sells its business to the third party
that can be initial public offer that is private company sales its shares on public stock exchange, private
equity is sale of company share to the investors or sale the company to another company. This option is
good for company to retain its name in market by becoming the subsidiary company of another
company by transferring of shares at high rate increases the value of share for purchasing company.
Advantages :
 Advantages for Antipodes company in this case can be the company gets more buyers who
wants to pay more for the company shares the business gets stable with another company.
Disadvantages:
 The disadvantages of Antipode company can be the name of business will diminish as other
company acquires its business(Burns, 2016).
CONCLUSION
From the above report it can be concluded that political conditions and economic
situation must be considered by business at the time of planning for growth. Product
development and market development strategies are helpful for the companies in order
to gain success in the market. Bank loan is considered as easy source of finance which
will help in meeting the financial requirements of the firm and entity will be able to
repay loan amount in easy installments. In business plan SWOT and PEST analysis
helps to know company in better way. In succession of business the best option that is
suitable for the company is to transfer its business to third party by following step by
step procedure for succession of business is beneficial for company.

REFERENCES
Books and Journals
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growth expectations among entrepreneurs in the services sector. Journal of Business
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Cater, J. and Young, M., 2016. Family factors in small family business growth. Journal of Applied
Management and Entrepreneurship. 21(4). p.56.
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Storey, D.J., 2016. Understanding the small business sector. Routledge.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth, profitability,
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Online
Ansoff matrix. 2010. [Online]. Available through <http://www.quickmba.com/strategy/matrix/ansoff/ >