Planning for Growth: Strategies and Funding Options for Brew & Booze Coffee Shop

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.........................................................................3
P2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix...................5
TASK 2............................................................................................................................................6
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................6
TASK 3............................................................................................................................................8
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business............................................................................................8
TASK 4..........................................................................................................................................10
P5 Assess exit or succession options for a small business explaining the benefits and
drawbacks of each option..........................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Every business organisation is working for long term sustainability and earning profits,
for this proper management of planning is required (BARTLETT and BEAMISH 2011).
Sufficient growth planning helps the company in order to use their resources in a considerable
manner and making them allot to every activity so that to have a competitive edge in the
marketplace. This report is made on Brew & Booze Coffee Shop, which is opening their business
and outlets in UK. This coffee store has coffees with different flavours which is the MSP of this
shop. So this report is a summarisation of all the growth strategy which can be adopted by Brew
& Booze Coffee Shop in order to grow and promote themselves as a well business establishment.
Further this report involves the source by which Brew & Booze Coffee Shop can get funds in
order to open up their business along with the options through which they can succeed in the
market. As along with this a business plan is prepared in order to give brief about strategic intent
of the company with setting budget for their business opening.
TASK 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.
For recognising the opportunity of growth in marketplace various approaches can be
taken so that to get revenue and increase sales and to position competitive edge in the market.
Below mentioned strategies can be opted by Brew & Booze Coffee Shop:
Porters generic model:
Cost leadership: Under this strategy the company charges low prices from the public
from their customers as to become a leader on cost that means the company which is offering
their product on lowest prices in the market. Brew & Booze Coffee Shop can use this strategy as
by offering coffee at lower and discounted prices or by providing fringe benefit of free cookies
or any shake to their customers.
Differentiation: Under this strategy the business are trying to increase sales by
delivering unique products to the customers or by providing distinct services as in comparison to
the competitors. As for example Brew & Booze Coffee by giving unique icing on coffee or
coffee with different flavours attract their customer and increase their sales in order to provide
customer satisfaction (DANIELS, RADEBAUGH and SULLIVAN, 2013)

Cost focus: Under this approach a particular market is selected and then that market is
offered with the products by minimising cost of production and cost of distribution. With the
help of this strategy Brew & Booze Coffee can offer lower priced products in order to get higher
profit and larger customer coverage in niche market (DERESKY, 2014).
Differentiation focus: With the help of this strategy niche market is target with the
unique feature of attribute of the product offerings. So Brew & Booze Coffee can offer
differentiated products in the niche market for example they can offer coffee with unique style of
presentation or they can opt a strategy to introduce a new flavour of coffee every moth in order
to stay unique and differentiated in the market.
From the aforementioned analysis this can be assessed that Brew & Booze Coffee can opt
for focused differentiation so as to earn high profits in niche market and get market capture.
PESTLE analysis
This is a strategical approach which is helpful in analysing factors of macro environment
that impact the performance of the business working and to establish those business strategies so
that negative situation of the business can be handled. External factors are elaborated as below:
Political factors: These factors are associated with rule and convention of countries such
as policies regarding taxation, tariffs related to trade etc. As due to Brexit the political situation
of UK is not stable so in order to cop up with these instabilities, Brew & Booze Coffee is
required to make flexible policies so that after any change they may have good control over
political factors.
Economic factors: These are the factors which are related to conditions of economic
systems of a country such as buying power of customers, GDP rates, fluctuations in exchange
rates, unemployment rates etc. As UK is a country with consistent economic condition and
buying power of customers as well. In UK people are ready to give more price for a better
product, this will help Brew & Booze Coffee to position their product in the market and in
getting high sales (Fingleton, Eraydn and Paci, 2017).
Social factors: These are the factors which includes the people which are living in the
country and are bifurcated on the basis of geographical area, cultures, shared value, belief,
gender and income etc. UK is having high living of standard so people tend to buy expensive and
innovative eatable products so Brew & Booze Coffee is having opportunity to grow in the
market by introducing unique beverages.