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Planning for Growth - Analysis of Key Considerations, Growth Opportunities, and Funding Sources for Dimello Coffee House

   

Added on  2023-06-18

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Planning for growth
Planning for Growth - Analysis of Key Considerations, Growth Opportunities, and Funding Sources for Dimello Coffee House_1
Table of Contents
INTRODUCTION ..........................................................................................................................2
MAIN BODY...................................................................................................................................3
TASK 1 ...........................................................................................................................................3
Analysis of key considerations for growth opportunities and justify them.....................................3
Evaluation of growth opportunities with the use of Ansoff’s growth vector matrix.......................3
TASK 2............................................................................................................................................4
Finding out the potential sources of funds with the discussion of benefits and drawbacks............4
Business plan which includes financial information and strategic objective for growth of
company...........................................................................................................................................6
Examine succession and exit options for with drawbacks and benefits of each option..................9
CONCLUSION .............................................................................................................................10
REFERNCES:................................................................................................................................11
Books and Journals:.......................................................................................................................11
Planning for Growth - Analysis of Key Considerations, Growth Opportunities, and Funding Sources for Dimello Coffee House_2
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.
Planning for Growth - Analysis of Key Considerations, Growth Opportunities, and Funding Sources for Dimello Coffee House_3
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
Planning for Growth - Analysis of Key Considerations, Growth Opportunities, and Funding Sources for Dimello Coffee House_4

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