Planning for Growth: Evaluation of Growth Opportunities and Sources of Finance for CafePod Coffee Co.

This report discusses the evaluation of growth opportunities and sources of finance for CafePod Coffee Co. to plan for their growth. It covers different concepts to gain competitive benefits for growth and a business plan for CafePod Coffee Co. The report also includes a PESTLE analysis, Porter's five force model, VRIO analysis, SWOT analysis, Ansoff matrix, and Porter Generic Framework. The potential sources of finance are also analyzed, and a business plan for CafePod Coffee Co. is presented.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1 ...........................................................................................................................................1
Evaluation for growth opportunities.......................................................................................1
Different concepts to gain competitive benefits for growth...................................................5
TASK 2 ...........................................................................................................................................5
Source of finance with their advantages and disadvantage. ..................................................5
Analyse the potential source of finance..................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Growth planning is the strategy of business activities which enables a business owners to
plan and track their organic growth in their revenue. This allows businesses to allocate their
limited resources towards more centre efforts in order to adapt the changes in the industry by
digital disruption and through differentiate from competitors (Renne and Tolford, 2018).
Creating strategic plan is the essential part of the planning for growth. CafePod coffee co is the
independent craft coffee organisation which was establish in 2011, based in London. The report
will cover an evaluation regarding the growth opportunity of the company through different
analysis. There will be a discussion related to sources of finance option available for the
organisation. Furthermore, there will be a brief regarding the business plan for CafePod coffee
co. Lastly there will be discussion related to the exit or succession option in the future of the
enterprise.
MAIN BODY
TASK 1
Evaluation for growth opportunities.
PESTLE Analysis-
Political Factor
In context CafePod Coffee Co. the political factor that might affect the growth of the
company is through trading relations,a s company is depended on international trading for their
raw materials.
Economic factor
Due to growing income of the customers, which allows them to spend more, which is
beneficial for CafePod Coffee Co.
Social factor
Due to the constant changes trends in market this factor might affect the company, as
people are considering more organic and less caffeine drinks in their diets so this factor will
affect the company (Perloff and Wingo, 2019).
Technology factor
From constant changes in technology such as, high-tech coffee machines and appliances,
which CafePod Coffee Co. need to take into consideration in their operation.
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Legal factor
There are rules and regulation in beverages industry which affect the company growth.
There are wide range of laws regarding storage, transportation and brewed which needs to taken
into consideration.
Environmental factor
The sustainable farming is the big concern for coffee industry, as unsustainable farming
results deforestation and release CO2 emission which is harmful for environment. Hence
CafePod Coffee Co. need to take this into consideration.
Strengths: This will provide a strengths of the company in external environment in order
to grow with their existing operation.
Opportunities: This will provide various opportunities that are present in external
environment for company to take them into consideration within business operations.
Porter's five force model-
Bargaining power of buyers
The bargaining power of buyer is high due to large number of coffee provides presence in
market.
Bargaining power of supplier
There are large number of supplier available to source material from and company has a
well establishment in the market which give the bargaining power of supplier low.
Threats of new entrants
The threat of new entrants is significantly high as there are less hurdles in this market.
Threat of substitution
There are various similar products available in the market which give the threat of
substitution high (Williams, 2022).
Rivalry among the exiting firms
There are various competitors in the market those have wide market share in the market
that give the rivalry among the existing market high.
Strengths: This will allow to identify the competitors and strengths of the company
which can be utilise to enhance their operations and marketing strategies.
Opportunities: This will allow to identify the gap in the market give various
opportunities present in the market.
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VRIO Analysis-
Value
Organisation is offering some special flavours in the market which are valuable to the
brand. The brand image in the market is strong. Customers services is valuable to the firm.
Rare
The raw materials that company is offering is rare, as they are farming through organic
and sustainable farming. The brewing techniques of the company is also rare for the brand.
Inimitable
The stores surrounding and environment of the organisation is non imitable. The coffee
quality is not being imitable by others company. As firm is offering comfortable environment
their stores (Bradley and Botchway, 2018).
Organisable
organisation has certain quality, flavours and procedure that is highly organisable. The
customers services that company if offering is also significantly highly organised.
Strengths: This will help in identifying the resources and help in getting rid of irrelevant
resources. It provides various benefits for firm to bring new innovation in the market.
Opportunities: This allows to identify the market gap, demand and needs of the
customers and provide benefit to opportunity to grow in market.
SWOT Analysis-
Strength-
In context to CafePod Coffee Co., the brand image is the biggest strength for them. The
employees and staff members are also the strength of the organisation. They are gaining market
share, maximising their profits and attracting more customers.
Weakness-
The market presence of the company is limited and also the online presence is not that
strong. The target audience of the brand is limited and niche. Market competition is high due to
which affect the company .
Opportunity-
The CafePod Coffee Co. can enhance their marketing strategises and target on large
number of audience. Company can also develop their online presence as people are preferring
take away so though developing apps will allows to attract more customers.
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Threat-
There are various big brand in coffee industry , which are biggest threat for the company.
Also there are some small organisation that has a strong presence in the market which are
competitors for the brand (Do, Kumar and Do, 2019).
Strengths: This will allow company to identify internal environment in order to make
decision and strategies to grow in market.
Opportunities: This allows organisation to identify the growth opportunity with internal
resources. Also help in developing the strategies of the company.
Porter Generic Framework-
Cost leadership theory
This theory involves the techniques that are, bargaining with supplier, economic scale,
cutting cost in order to get the raw materials and various factor. The target CafePod Coffee Co. is
to offer less cost in huge market.
Differentiation theory
This theory suggest that organisation needs to enhance their existing products and
upgrade them in order to offer best products to the customers. Which cause the CafePod Coffee
Co. can rebrand its image in the market.
Focus theory
In this it suggest that CafePod Coffee Co. can enhance their target of customers into more
niche market segment which will allow to concentrate on fulfil the demands and needs of the
customers. Through this company can develop their customer segment.
Differentiate focus theory
In this theory it suggested that the organisation needs to identify the preference and needs
of the customers and than take them into consideration of their marketing strategies and develop
their operation to increase the growth of the company.
Strengths: It helps in identifying various techniques to reduce the cost of products.
Opportunities: It helps in giving various opportunity to enhance their strategies according
to the current trends and demands.
Ansoff matrix-
Market penetration- CafePod Coffee Co. needs to grow their market share in existing market.
Advantage- It help in attracting new customers.
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Disadvantage- Through this company might loose old customers.
Market development- CafePod Coffee Co. can develop their existence in new market with
existing products.
Advantage- Helps in developing the brand image more globally.
Disadvantage- Includes huge times and cost (Akpan, 2021).
Product development- CafePod Coffee Co. can offer new products in existing market to their
customers.
Advantage- It is simple and effective.
Disadvantage- It will not identify the potential implications.
Diversifications- CafePod Coffee Co. can offer new products in new market.
Advantage- It will help increasing the growth of company.
Disadvantage- It can impact negative implication on organisation.
Different concepts to gain competitive benefits for growth.
There are several concepts, strategies, theories and models that will help CafePod Coffee
Co. to expand their market presence and to grow in market. Since, there are some risk that might
affect the strategy and growth planning but through analysing those factor with different analysis
it will help to take them into consideration in order to avoid those in future. Hence, CafePod
Coffee Co. can adapt these situations and make decisions in order to plan for their growth in the
market. Company can enhance product development strategy to attract new customers and create
new innovation in their products range, which will allow organisation to grow in the market and
increase its market share.
TASK 2
Source of finance with their advantages and disadvantage.
There are various sources of finance that will help small- medium enterprise to enhance
their growth strategies. Some of them are mentioned below.
Bank loans-
In this sources of finance the is more into flexible, quick-able and accessible. A bank loan
is the long-term source of finance. The amount in this is fixed and company needs to pay
monthly instalments. Amount of money that is being borrowed by business from a bank for a
specific purpose.
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Advantage- In this the interest rates and repayment amounts are often fixed. Bank lenders
will not share the ownership of the firm. The interest rates are usually lower than finance
sources. Companies can also source large amount of money from here.
Disadvantage- In this the approval could take months to process. There will be rigid
repayment schedule, as company needs to repay the amount the proper schedule. There may be a
restriction on firm in order to use the borrowed money.
Angles-
These are private individuals who generally invest in other businesses. As they are
usually work with small and medium-size start-ups or young companies those require limited
amount of funds. Angles investor are the umbrella enterprise which offers finance to the
organisation. And they like to keep their profile low (Rodrigues and et. al., 2021).
Advantage- For various small enterprise the angel investor will be suitable sources of
finance. They are more experienced in the field of business and help in bringing great deal to any
business venture. With their experience the investor provide guidance to company.
Disadvantage- As in angel investor there is no require to pay the monthly instalments but
the portion of the company profits were take by investor. As angel investor provides guidance
but, there will be constant control from them in operation within business.
Venture capital-
In this the company invest money in firms and in return take a share of their equity share.
These sources usually involves firms which are professional investor and venture capital
organisation. They usually invest their money in organisation that have potential growth in
market.
Advantage- This will provide organisation a valuable source of guidance and
consultations. They can help with various business decisions such as, human resources
management and financial management. Venture capital are mostly well connected in the
business community (Globocnik, Faullant and Parastuty, 2020).
Disadvantage- The major disadvantage in venture capital is that company might lost their
control in business decision making process and operation. There will be continuous interference
from them. The owners power will be reduced due the sharing of equity share with the investor.
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Analyse the potential source of finance.
As per the above analysis of different source of finance for enterprise to obtain in order to
plan their growth. In context to CafePod Coffee Co., as organisation can utilise the angel investor
and for borrowing large amount of fund the company can use bank loans. With the angel investor
company will get a proper advice and guidance from experience field in business. This will allow
company to operate smoothly without any hassle within business. Which will provide a base fro
company to grow in market.
TASK 3
Business plan for Cafepod coffee Co.-
Organisation for this business plan-
The name of the company is Cafepod coffee Co.
Executive summary-
It is a coffee shop which is located in United Kingdom, and the working of the business
related to offering varieties of coffee to the people. This cafe is constructing in a creative way
like beautiful interior to attract more customers (Lubawa, 2021).
Background of the business-
This cafe was started in the year 2011, after the founder identify people's love and
affection towards the coffee.
 Vision- To stand up to the expectations of the consumers by offering them an optimum
standard of coffee and achieve the success in this business.
 Mission- Cafe is working on providing different varieties of the coffee to the customers
in a unique way.
 Objective- The main aim of Cafepod coffee Co. is to gain the competitive advantages
against their rivals and earn the good quantity of profit.
Nature product services-
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Cafe is focusing on providing organic and healthy cafe to the customers by delivering it
to their home. The owner of the cafe wants to supply an amazing taste of the coffee.
Stakeholders-
In general terms, stakeholders are those people who directly or indirectly affect the
working of the business and it is necessary for the holders to fulfil their demands in the market.
For Cafepod coffee co. people who are living around the cafe, dealers for the supply of coffee,
local government and most importantly people who have invested their money for the
establishment of this cafe are stakeholders for this coffee shop. To ensure the growth and good
flow of cash in the running of the business it is important to consider these people in the
operation of management (DEL MASTRO, 2021).
Capital Based-
This coffee shop is planning to start their new branch in different location of the country
for which they want a relevant source of funding. This will help the cafe to generate the fund
which could be use by the owners to perform necessary task in the establishment of new
business.
Sales Target-
Cafe is working with target of obtaining the revenue which should be equivalent to £8
million in a year and for this it is important to achieve the sale of £4 million.
Operational plans-
This business plan requires various people who will be responsible for conducting
numerous activities in the cafe. As per this, a finance manager which will handle all the
monetary issues in the cafe and work efficiently at the time of need. It helps the business to
remove those situation where oners have to face the lack of money to carry out the activities. In
order to handle all he functions which are connected to the promotions of the cafe among the
people, a skilled marketing manager is needed who will be capable of analysing the behaviour of
the customers in the target market (Götz, 2020). At last, to analyse the activities and performance
of the staff in the cafe it is important to hire a human resource manager. For all these operations
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in the cafe, owners have constitute a team of 12 people, in which work has been distributed
according to their ability and talent.
Resources-
Firstly, cafe have to invest in purchasing coffee machines which is of good quality and
can work effectively and deciding the suppliers for the coffee beans. For taking care of
customers in the cafe a good and well mannered staff as they will be responsible for the good
image of the cafe (Kamalov. and et. al., 2019).
Technology-
To attract the customers in the cafe, it is needed to implement the uses of different
technologies, which will also help simplifying the activities. For the better customer experience
company keeps on upgrading its software application which will enhance the customer
experience. Special feature like tracking the order to deliver the coffee on time. Informing the
consumers about the offers by posting updates on the online platforms which cafe will offer to
their consumers.
Risk Factors-
Risk and business always work together. In case of Cafepod coffee co., management
needs to know that there are many complexities which have been associated with this
establishment. If there is any failure in the construction of business strategy, then it will be
difficult to achieve growth in this business (Janiksela, 2019).
Marketing plans-
For the betterment and to get the maximum reach of this cafe to the people it is necessary
for the marketing team to utilize the best tool for the promotion like organisation of different
entertainment programs and promoting it to the website and offering vouchers to the lucky
customers.
Timeline-
The decided framework of the time for the completion of this business plan is around 1.5
year and this should not be exceed (Marinska, 2021).
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Gantt Chart-
SWOT Analysis-
Strengths Weaknesses
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 Cafe is offering good services to their
customers, to ensure the good
experience of their customers.
 Moreover, Cafepod coffee co. knows
how their staff is important to them, for
this management value them by
appreciating them for the work they do.
 As the business has been started few
year ago, so it is difficult for them to
set a strong customer base for the cafe.
 Although, cafe is not able top arrange
the enough fund for the operations
which is obstructing the performance of
management (O’Donnell and Dahl-
Popolizio, 2018).
Opportunities Threats
 Cafe can focus on maintaining a good
relation with their existing customers to
retain them for long duration.
 By spreading the business in different
areas, cafe is able to earn more profit
and achieve their sales target.
 Growth of the cafe can be disturbed by
the presence of excessive competitors
in near by area.
 Income of the customers can affect the
sale of the cafe through this they could
experience a decline in revenue.
Produce a detailed and suitable plan for business-
Business plan plays an effective role for Cafepod coffee co. to achieve their long term
and short term goals. Measuring each phase of the plan to identify the elements which can affect
the actions of the cafe. A proper management of the risk to avoid the different issues in the cafe
and make it tough to serve the customer in a better way. It also helps the company to look out the
needs of the funds in the future, through which owners can determine the sources for the
procurement of the funds and develop relevant strategies for the same (Borcoşi, 2018).
TASK 4
The various ways a small business owner can exit the business and the implication of each option
with its advantages and disadvantages
Sometime, business may face such situation in which management is not capable to
carry-out the business. This could be related to various reasons such as high loss incurred,
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retirement, etc. In such condition holder of the business wants a exiting strategies to come out
from the functioning of particular business.
 Merger and acquisition
In this company can combine with a big corporation and completely acquire by the company. All
the decision making power and other rights get transfer to the company.
Benefits- Business is able to achieve the competitive advantage because of the established good
will of the company who has acquired the small business. Also get an opportunity to explore new
market as well as a new set of customer.
Limitations- In this process old workers may lose their job, while in terms of new company
there is chances that management could face conflicts among the employees because of the
cultural issues. This will enhance the negativity at work place and affect the efficiency of the
workers (Mehboob, 2020).
 Liquidation and close-
Companies also have an option to sell all their assets and use that amount to pay off their
liabilities such creditors or in other case keep this sum with themselves.
Benefits- It is useful when a company want to get rid off their debts and various legal obligations
which can create stress among the employees and owners.
Limitations- In few cases it has been noted that owners have to sell their personal assets too, in
order to pay off the liabilities. On the other hand, suppliers who are connected to the business
will not get their payment too.
Evaluate each of the exit and succession options for a small business-
Many activities in the Cafepod coffee cafe making it difficult for the business to carry out
the business for long. In this way it will be better for the company to take exit from the business
as there is unavailability of funds in the operations of the management. For this company can use
any of the method which will be advantageous for the owner in the future. In this way it will be
good for the company to discontinue the working of the cafe (Kunal, Katti and Phani, 2018).
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CONCLUSION
In the conclusion of above report, it has been noted that implementation of relevant
model which used to identify the different factors which may impact the growth of a business. In
this PESTLE to analyse the impact of external factors and Porter's 5 forces has taken into
consideration. It also identify the various sources through which company can generate funds for
their operations. In the next task, a business plan has been explained in the context of Cafepod
coffee co. which describe several stages to expand a business. With this business plan, cafe will
identify the benefits that management will experience in achieving their set goals. In the last part
of this report, discussion on the relevant methods through companies can take exit from the
industry,along with their limitations and benefits has given. This will help the cafe to select the
best way to exit and succession of the business, whenever business need it.
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