Planning for Growth: Evaluating Opportunities, Ansoff Model, Funding Sources, and Succession Options for Dimello Coffee House

Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
P1 Explain the key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................3
M1 Discuss the various options of the growth in context of the organsiation?....................6
D1 Critical evaluation of specific pathways to growth taking the risk into consideration?..6
P2 Explain the ansoff model by evaluating the growth opportunities /.................................6
P3 Explain the4 various sources of fund for the organisation with its advantage sand
disadvantages? .......................................................................................................................7
M2 Critically evaluate on the sources of fund and the option choose by the organisation? . 9
D2 Critically evaluate the potential sources of funding with justification argument for the
adoption of particular source ? ..............................................................................................9
P4 Illustrate a business plan for the organisation with the financials? ................................10
M3 Explain tan appropriate business plan for growth and securing investment , setting out
strategic objectives, strategic and appropriate framework for achieving objectives ?.........11
D3 Critically evaluate the busienss plan which can help in the growth of the organisation?11
P5 Explain the succession and exit options which are available for the business organisation?
..............................................................................................................................................11
M4 Evaluate the exit or succession options for a small business comparing the options and
making valid recommendations? .........................................................................................13
D4 Provide critical evaluation of the exit or succession option for the small businesses and
decide the course of action appropriate with recommendations ? ......................................13
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The growth planning is the strategic business activity which enables the business owners to plan
and track the growth in their revenue. There are various types of businesses such as small,
medium and large business. The small business enterprises are the main businesses in the United
Kingdom. . In today's world every business owner wants that his business should earn profits and
been grown from time to time. For the growth of the business it requires a planning for the
organisation. This includes the various factors and aspects which are important to be considered
for the planning of the business organisation. As the business is dynamic in nature and there are
various external factors so the owner needs to plan according to it. In this report the small
enterprise which is been considered is the Dimello coffee house. The organisation was
established in 2002 and has its headquarters in United Kingdom(Bagheri, ,and et.al., 2018). This
report will include various topic such as the various models for the growth opportunities,
business plan, the sources of funds, exit and succe4ssion plan.
TASK
P1 Explain the key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
It is very essential for the business enterprise that they need to identify the various
business opportunities which can help the organisation to grow faster. Here the various key
considerations for the growth opportunities are evaluated by the explanation of the various
model:
Pestle analysis
It is the framework which is used by the various organisation in order to identify the external
factors which have a influence on the operations of the business organisation. This is the most
important analysis which need to be undertaken by the organisation so that it can act act
accordingly(Pallagst, Fleschurz, and Trapp, 2017). The various factors are discussed below:
 Political- These factors are related to the extent to which the government policies may
impact the business organisation. Such factors include trade restrictions, trade barriers,
tariffs etc. it is very important for the Dimello coffee house adhere to the various policies

which is been opposed by the government. If in case the cafe does not follow it it can
impact its business.
 Economical- These factors are related to the direct impact of the performance of the
economy can impact the business organisation. Such factors include inflation rate,
interest rate, growth rate etc. the impact of the covid-19 impacted the business in many
ways. As there was increase in the prices of the product and the loss-of the jobs made
decrease in the demand of the product and services. This impacted a lot to the business
organisation(Smith, , 2021)
 Social- This is the most important facto which helps the marketers to identify the social
and market trend in the market. Such factors include the cultural aspect, lifestyle,
behaviour etc. it is very important for the Dimello that it identifies the preferences and the
lifestyle of the people that what kind of food and beverages hey prefer in order to meet
this factor and the expectations it the customers.
 Technological- This factors is related to the innovation and development in the wo4rld
can impact the business organisation. Such factors include research and development,
digitalisation., artificial intelligence etc. The Dimello coffee house can use the various
technological aspect such as the online services and the app so that the customers can pre
place their order so that it does not take much time. This will help the organisation to
increase its sales and earn good profit(Higgins, and Savoie, 2017)
 Legal-This factor is related to the certain laws which are very essential for the business to
adhere to it. Such factors can be the employment laws, safety laws etc. it is very
important for the cafe to take the safety measures to ensure that their staff members have
a good heath and for the food industry it is important that the organisation is taking the
good quality of item for its customers.
 Environmental- This factor is related to the surrounding which can impact the business
organisation. Such factors include sustainable development, climatic change, natural
disaster etc. it is very important for the Dimello coffee house that it practices the
sustainable development and also consider the various aspect such as the cleanliness as
because there is too much of garbage been created by the organisation. It is important that
it is thrown in a proper way to protect the environment.
PORTERS DENERIC MODEL-

Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................3
TASK 1 ...........................................................................................................................................3
Analysis of key considerations for growth opportunities and justify them.....................................
Evaluation of growth opportunities with the use of Ansoff’s growth vector matrix.......................
TASK 2............................................................................................................................................4
Finding out the potential sources of funds with the discussion of benefits and drawbacks............
Business plan which includes financial information and strategic objective for growth of
company...........................................................................................................................................
Examine succession and exit options for with drawbacks and benefits of each option..................
CONCLUSION .............................................................................................................................10
REFERNCES:................................................................................................................................11
Books and Journals:.......................................................................................................................

INTRODUCTION
Growth and development is an essential factor for both individuals as well as
organisations to keep themselves motivated (Gottschalk, and Sampath, 2021). There are son
many small and medium organisation which are operating in the market to achieve desired goals
and objectives in terms of brand image as well as high profitability. These type of organisations
are very essential in any economy as they generate more employment and infrastructure in an
economy. Government also takes several steps to encourage growth and development of small
business organisations being an essential part of the society. Dimello coffee house is an
organisation which deals in fine coffee in United Kingdom. It is a small organisation established
in 2002 with a continuous plan for its growth and development. This report contains the growth
options which are available with Dimello coffee for their expansion and various market segments
with the help of Ansoff Matrix. Further it also contains a business plan for the company and the
ways in which they can raise funds from the market with the benefits as well as limitations of
several sources of funds.
MAIN BODY
TASK 1
Analysis of key considerations for growth opportunities and justify them
In order to run a business in effective manner there are several growth opportunities which are
available with the organisation. Dimello coffee house can use BCG matrix, McKinsey matrix in
order to consider several growth opportunities in the market. McKinsey matrix helps to
understand the attractiveness of the industry in the market whereas BCG Matrix helps the
company to know more about the product and services offered by them. There are 4 quadrants in
the BCG matrix which helps an organisation in long term strategic planning (Lamker, and
Dieckhoff, 2020). The BCG matrix for Dimello Coffee House is given below:
Dogs: Dogs in case of BCG matrix refers to those products of the organisation which have low
growth in the market and also have low market share. These product requires effective strategies
for them to be formulated in order to achieve growth as well as market share. In case of Dimello
the Product which has been considered in Dog category is capsules which requires growth
strategies in the market.

Question mark: The question mark are those products of the company which have high growth
in the market but have low market share. In case of Dimello coffee house home use equipments
offered by the organisation can be considered in this category which requires to increase its
market share.
Stars: Star product of any organisation is the product which have high growth and market share
in the market and company is well known for that product only. In this case of Dimello coffee
house the ground coffee offered by the company is considered as its star product which requires
strategies only to maintain its positing in the market.
Cash cows: Cash Cows are those products which have low growth in the market but have high
market share. In case of Dimello coffee house grounds can be considered in this category as there
is no place to grow in this field for the company but the product covers high market share
(Lynch, Nel, and Binns, 2020).
Other than the BCG Matrix there are also several other growth opportunities which are
available with the company Dimello coffee house and are provided below:
Digital Platforms: With the increased use of digital technology coffee House has an opportunity
to use their website to increase their customer base and expand their business in the global
market. This digital platform will help the company to take growth opportunities available in the
market.
Partnerships: The Company has also an option to enter into a partnership with other
organisations who are successfully running their business in the market and have in a continuous
contact with the customers. Taking an example Dimello coffee House has an opportunity to
achieve the growth opportunities by entering into a partnership with cafe with just eat which will
provide more customers to the organisation.
Franchising: Franchising is also a good option for Dimello coffee house to earn good reputation
in the market and achieve good growth options. The company has an option to provide franchise
to another country so that their products can be sold with increase customer base and can be
known to the large number of people.
Evaluation of growth opportunities with the use of Ansoff’s growth vector matrix
In order to evaluate several growth opportunities which are available in the market the company
Dimello coffee house can use Ansoff matrix which will help them to make strategies for the