Planning for Growth: Evaluating Opportunities, Ansoff Growth Matrix, Funding Sources, and Business Plan for Deja Brew Restaurant

This report discusses the importance of planning for growth for small businesses in the UK, with a focus on Deja Brew Restaurant. It covers evaluating growth opportunities through VRIO analysis and Porter's Five Forces, applying Ansoff's Growth Matrix, and identifying sources of funding such as bank loans, peer-to-peer lending, and angel investors. It also includes a business plan for Deja Brew Restaurant, with a vision, mission, objectives, goals, stakeholders, and operational plan.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Evaluating growth opportunity..............................................................................................3
M1 ..............................................................................................................................................4
D1.................................................................................................................................................5
P2 Ansoff Growth matrix ............................................................................................................5
Evaluating opportunities for growth through applying Ansoff’s growth vector matrix..............5
P3 Sources of Funding.................................................................................................................7
M2/D3..........................................................................................................................................8
P4 Business Plan for Deja Brew Restaurant...............................................................................8
M3/D3............................................................................................................................................11
Assessing the exit and succession option for the business and explaining the benefits and
drawbacks of each option...........................................................................................................11
M4/D4........................................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth is one of the important aspect for any company in which for small
business it is necessary for developing business in UK. Growth planning is refers to the business
activity which are enabled organization in order to plan and track organic growth in their
revenue. This is help business in order to allow business in order to allocate limited resources by
focus more on effort that help for adapting changes in industry that help for driven by different
strategies. This is help for establishing business for update and growth prospectus. Present report
is on Deja Brew, that company vision is to increase their market growth by providing the best
quality of products and services to the customer. In this report all the aspect will be cover on the
basis of key consideration for evaluating growth opportunities in orders to justify the
considerations by ansoff matrix (Morison, 2020). Then assess potential sources which are
available for funding with understanding its advantages and disadvantages. Design a business
plan for growth that includes financial information and strategic objectives for scaling up a
business. Also, assess the various type of activities which are use by business owner that help
for exit business and the implication of each of option. Further, different type of exit and
succession strategies in order to analyze benefits and drawbacks of each of option.
MAIN BODY
P1 Evaluating growth opportunity
Vrio Analysis
The Vrio framework is known as strategic planning tools that helps company to cover
and protect the resources and capabilities that give long term competitive advantage. Viro is an
acronym for a four framework focusing on value, rarity, limitability and organization. These
criteria help in evaluating an organization resources and capabilities.
Resources Valuable Rare Imitate Organization Competitive
Advantage
Flexibility of
supply chain
Yes Yes Close sharing
some same
suppliers chain
Completely
consumed
Unused
competitive
advantage
Market
position
Yes Yes Challenging Yes Sustainable
competitive

advantage.
Leadership
team
Yes Yes No Yes Strong
competitive
advantage.
Awareness of
brand
Yes Yes No Yes Sustainable
Financial
resources
Yes No Compatible
with all rivals
Financials
status is
sustainable
Temporary
competitive
advantage.
Interpretation :
From the above table it can be described as make use of human resources so that work can be
done properly. Along with this, organization need to hire and retain innovative and productive
employees (LeCounte, 2022). It helps in creating some of the most popular consumer products
and services in the world. On the other hand, No other company is making use of customized
food material and even at lower price. Customized food is one of the most difficult to imitate
as each company will make use of different ideas. Deja Brew will invest in training their HR
staff so that it can attract more customer. Along with this, The company is organized to
follow culture so that quality working environment is given to workers. Along with this,
company marketing department is to research about the key trends going in the market area.
M1
Porter Generic five force
The porter generic strategies is used to classify both company behaviour and drive organization.
There are four different type of strategy such as cost leadership, cost focus, differentiation
leadership and differentiation focus. Deja brew has to focus on differentiating its products or
services from competitors. Although company face high competition in the market area and it
needs to deal with it through bringing innovative idea (Olmos and González, 2020). First Deja
brew has to trend with customer feedback and find out ether they are providing good quality of
services to them. Deja brew will try to expand in new market area and focus will be on Asian
market as there are no competition in British food culture. It can also make use of different
marketing channels such as online in which customer can order food and get delivery at the

door. This type of marketing was very high in demand during pandemic and help organization
increasing their productivity. It can conduct social event on big festivals in order to build
awareness regarding company in the market area as well as increase loyalty of consumer by
delighting them. Thus, making use of this stagy will help Deja brew in reducing the level of
competition and to deal with the challenges of market area.
D1
SWOT Analysis
Strength: The company has wonderful quality and taste of their products which helps in
attracting customer. Along with this, Deja Brew is renowned and people just love its coffee and
shakes as well. The company also provide various types of eating products like brunch, sweets,
salads and Deja classic. Although the brand is youth oriented and have majority of their
customer are young adults and teenagers. The menu is affordable so people come from time to
have their comfort time in CCD.
Weakness: The brand has lost its charm and it mianly because it do not invest more in
promotions and the entry of big brands like Hilton, Starbucks and MacDonald has affected the
brand name. Along with this, wrong site selection has been hurting Deja brew because it has
been open at the wrong site and not on the main roads. It has affected turnover and brand name
as well(Gumel, 2019).
Opportunity: Introducing more products and better items in the menu will help in increasing
the overall customer range and increase the productivity. Along with this, company can make use
of digital marketing in order to increase the sales of the organization.
Threat: There is high competition in the market area and due to which Deja Brew has to come
up with innovative ideas to attract customer in better ways. Along with this, pandemic was also
major threat as there was change in taste and preferences of the customer and due to that cafe
was close for several months.
P2 Ansoff Growth matrix
Evaluating opportunities for growth through applying Ansoff’s growth vector matrix.
This matrix can be use for evaluating different types of growth opportunities which are taken for
near future. Also, on the basis of using company tool it helps for providing benefit for analyse
the risk that can be associated with different growth strategies. Also, it can be said that this is one
of the important matrix to identify the opportunities (Dodds, Dimanche and Sadowski, 2018). It

help to find the growth opportunities for choose company as well as there are different types of
strategies which help company to grow effectively as well as helps to take strategic decision in
order to follow other strategies to improve business
Market penetration – market penetration is help for company in order to sell more to
existing customers base in order to increase their market future. Ins this strategy it is necessary to
work by selling product and services to existing market. The main objective of company is to
increase market share in order to implement market penetration strategy. In order to change the
current marketing mic it helps for updating promotional efforts, pricing tactics etc. there are risk
associated in the focus more on introducing offers and discounts which have less income in
order to decrease the profit margin (Sell, Guo, Li and Keyser, 2018).
Product development- Product development is one of the common strategy which help
for developing new and improved products to existing market or existing consumer base. As well
as it help for strong understanding of present market conditions that are help for completing
customer base. The portfolio of product and service can be help for investing by research and
development. In this strategy there are some risk which are need to be understood in order to
focus more on hiring people for changing the strategy in order to sell new product or services in
existing market. There is high risk in the project in order to focus more on follow rules an
regulation accordingly.
Market development- there are business which are adopted in order to focus more on
entering new market with existing product. In this strategy market can be in new geographic
location which help for target new audience in current market and market segmentations
strategy. There are some of the risk which are seen in this strategy while follow such as
investment that are require for massive capital investments. Then business operation which are
help for expanding and developing market that require time and efforts.
Diversification- This is one of the common strategy in order to focus on selling new
product in new product. Also, this strategy can be adopted in order to focus more on having
enough revenues and resources which are helpful for maintain existing competencies. This is
help for providing the best quality of product which help for targeting large segment of audience.
For the chosen company it is necessary to focus more on maximizing benefit which help for
gaining strategy in less time.

In addition, with the help of above option it is help for identifying the diversification strategy
shall be help company in order to attract large segment of customer. Then, this help firm to get
assure about the new product and services which is help to improve brands image in order to
focus on various regions.
P3 Sources of Funding
There are various sources of funding available for the business which helps in increasing the
overall development of the company.
Bank Loans: It is one of the easiest and quickest way to raise funds in the market area.
Financial institution provide loan on interest in different time limits that helps in increasing the
growth of organization. In addition to this, by getting the large amount company can do
expansion in the market area.
Advantage Disadvantage
Bank provide loans to company for longer
duration.
The interest rate of financial institution is
lower than overdraft.
Interest rates are fixed which need to be repaid
by customer (Dodds, Dimanche and
Sadowski, 2018).
The customer has to pay security to the bank
and which may impact the profitability of
company.
There is lot of documentation done by the
customer before processing the loan. Thus, it is
less flexible.
Peer to peer lending: In this source of funding the company can gather funding from people or
big industries. It is one of the better source of finance which is also known as social lending.
Advantage Disadvantage
 Interest rates are lower than compare to
take loans from bank.
 It motivates company to bring up
innovative expansion in the market.
 It gives company various opportunity
to provide diversification.
 The capital of the organization is at
high risk as there poor surety that
company will earn good profit.
 The rate of interest is also very high.
 It is not very suitable for each company
as each of them have different
exception from the market.

Angel Investor:
The angel Investor are individual which have good financial position in the market
area which helps in developing their financial stability. This type of investor are basically
found in family and friends which help organization to get more success.
Advantage Disadvantage
Helps to make decision quickly by have
investment criteria.
There is no need to have collaboration in
order to gather fund.
It is not suitable in order to have large funds
form the company.
It is not suitable for large organizations.
M2/D3
Bank loan is one of the most potential source of funding as it will help in gaining the
finance in effective manner. Along with this, advantage of bank loan is it can be taken for longer
duration and it available in shorter time limit. On the other hand, one of the disadvantage is
company have to deposit security with the bank in order to gain loan amount as well as has to
pay interest on loan taken. Bank loan advantage is major factor for drivers of growth particular
for public and private sector. In toady growing business and economy development expansion is
an only way to have sustainable profitability (Meng, 2021).
P4 Business Plan for Deja Brew Restaurant
Vision: Deja Brew company vision is to increase their market growth by providing the best
quality of products and services to the customer.
Mission: To enhance the productivity by knowing about consumer taste and preferences.
Objectives :
 To expand the market area and to come up with innovative products.
 To increase the profitably of company by 10% by the end of 2023.
 To increase the level of customer satisfaction.
Goal: The organization is aiming to increase the profitably by expanding in new market area
and to add new dishes in their menu so that customer has various variety.
Stakeholders: These are the members which have higher interest within organization as

performance of company can affect their relationship with industry. Along with this, the major
stakeholders of Deja Brew is customer, employees, investors and community et which allow
organization to have better financial stability so that it can expand their business area
(Tsinopoulos and Vasilakis, 2021).
Capital funding: This is known as process of raising fund for the company so that it can
increase their productivity by introducing new products in the market area or through
expansion. Along with this, Some options available for Deja Brew is peer to peer funding, angel
investor and bank loans. The organization will make use of bank loan in order to gain the
availability of capital form the market. Making use of sources of finance will help organization
in bringing new machines so that better quality of services can be provided to customer.
Operational plan: The operational plan includes activities and strategy to grow business in
better ways and to enhance performance of company. Along with this, in order to expand the
business area Deja brew have to make use of proper technology and financial resources for
better development. Proper planning is needed by the company in which time frame need to be
set so that expansion of business is done (Bagheri, Kennedy and Doluweera, 2018).
Resources Plan: As the organization is small in nature there is need to make use of effective
resource set. The better use of resource is to be done so that insatiability is maintained in the
market area. Firm need to make use of quality resources so to get better outcomes.
Technology plan: In this plan deja brew will make use of digital marketing such as social
media and the platforms for increasing their growth rate in better ways. Along with this,
innovative technology like robotic staff will help in increasing the customer range and improve
the overall performance of the company. Thus, company need of quality machinery in order
maintain their stability in competitive environment.
Risk factor: Risk is available in the market area and it impacts business in negative way and
affect the profitability of the company. Along with this, Deja Brew is trying to expand in new
market areas in order to increase their profitability. There are risk such as change in customer
taste and preferences or political issues. Thus, there is need to do risk analysis so to find out
threats available in the market area.
Marketing Plan:
It helps in setting and planning the strategy for the company in order to increase the overall
performance of organization in better ways.

Product: This includes products sold by company or innovative products introduced in the
market area. Deja Brew will include British culture traditional dishes in the menu in order to
attract large customer.
Price: The price of the products will be reasonable and it will be afforded by every type of
income group. Competitive pricing stagy will be followed by restaurant in order to attract large
customer.
Place: The company is already located in street of Lowestoft road and it will be opening
new branch in tourist area as it will help in creating brand awareness of the company.
Promotion: The organization make use of online and offline platform like social media sites
and traditional way of promotion that help people in making.
Timeline:
Activities We
ek
1
Week
2
Week 3 Wee
k 4
We
ek 5
Week
6
Week
7
Week
8
Week
9
Week
10
Researching for
new product
Developing vision
Stating Mission
statement
Setting objectives
Developing goals
Stating
stakeholders
Identifying
sources of funding

Developing
operational plans
Stating Resources
for new product
Specifying the
Technology
Analysing the risk
factor
Developing best
marketing plan
M3/D3
In order to consider the growth opportunities it has been analysed that there are different types
option for chosen company but it would have taken help of strategic objectives that indicating all
the critical aspect which are important for organizational strategy. In the growth strategy it is
suggested that bank loan is help for reaching growth target which help for improving step for
growing business. With help of diversification strategy it would help for launching new products
in new market with the aim of attracting large number of customer.
Assessing the exit and succession option for the business and explaining the benefits and
drawbacks of each option
A business strategies help entrepreneur in order t provide different types of strategic plan that
hep for selling ownership in company to investors. This is exit strategy in order give business
owner a way for reducing or liquidate his stake in business and business is successful that make
substantial profit.
Sell to other shareholder- This is one of the beneficial strategy in order to sell business
to other stakeholder by deal with structured ahead as well as it is need by funding approach as
well as it help for grooming business performance with continued success. The advantages is
related to fair degree of control over aiming as well as it is preserving mission and culture of
company (Honjo and Kato, 2022). Also, it is help for selling business to management and team

by appealing business to owners because it is keep to extend business family and interact. On the
other hand, in this process partnership does not work and recapitalize by involving significant
amount of debt financing by increasing risk for business.
Liquidate- If no one want to own the business it can be shut down by sell offs assets in
order to collects receivables pay off bills and any debt and distributes the remaining cash to
shareholder. This is suitable for business in order to exit only due to compensation owner in
order to liquidate is often best option. Also, by this process there is no value is received for
intangible company assets is related as disadvantage for company. Advantages of liquidate are
converting property or assets into cash or cash equivalents in order to sell them in an open
market in order to bring business to an end and distributing the assets accordingly.
Merger and acquisition- This is one of the common strategy which can be followed by
company in order to focus more on creating new joint organization as well as acquisition refers
to the takeover the entity by another. This two terms becomes increasingly blended in the useful
conjunction with one another. The advantages of merger and acquisition in order to improve
economic scale, lower labor costs, increasing market share. On the other hand, disadvantage of
merger and acquisition are increasing legal cost, expenses associated with deal, potentially lost
opportunities.
For the chosen company merger and acquisition can be considered as best strategy in
order to makes it better brand.
M4/D4
For small business it has been analyses that exit and succession planning help company
for identifying, transferring and training in order to manage the company's other policy which
help for other people also. On the other hand, exit planning help for identifying and executing
transfer strategy of company which help ownership to another person. Also, for exit strategy it is
necessary to use merger and acquisition exit strategy and selling stake to partner or investor.
Further, this is strategic plan for business that help for examine the current state (Nikolopoulos,
Tsinopoulos and Vasilakis, 2021).
CONCLUSION
It has been concluded that planning for growth which help for increase the efficiency by
identifying the best growth opportunities by using different type of matrix as well as it can be
considered the resource might be acquired in order to apply porter generic model. Also, there are

various sources of funding that help for requiring different type of operation. Further, the study
had discussed advantages and disadvantages of various exit or succession options that might be
used in future by firm. Lastly, it is suggested by providing ending report in order to focus more
on gaining different type of strategies.

REFERENCES
Books and journals
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