Planning for Growth in Espresso Coffee Shop

This report discusses the growth opportunities for Espresso Coffee Shop through VRIO and Porter's generic strategies, as well as Ansoff's growth matrix. It evaluates potential sources for capital funding, presents a budget plan, and a marketing plan that includes product, pricing, place, and promotion strategies. The report also includes the company's vision, mission, objectives, stakeholders, and capital budgeting.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
Analysing the key considerations to evaluate the growth opportunities......................................3
Evaluating the opportunities for growth through applying Ansoff’s growth matrix...................5
LO2..................................................................................................................................................6
Evaluating the potential sources for capital funding in coffee shop............................................6
LO3..................................................................................................................................................8
Business plan:..............................................................................................................................8
LO4................................................................................................................................................12
Exit or succession options:.........................................................................................................12
RECOMMENDATION.................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth is referred as the strategic business activities that helps business to
plan its growth in terms of business profits and revenues. It helps company to prepare the
realistic vision and mission as well as enhance the profitability and its growth. Dose Espresso
coffee shop located in Smithfield, London, United Kingdom. Company supply the coffee
machines, coffee, coffee accessories to lots of satisfied customers. There are various types of
coffee products such as coffee pods and capsules, coffee beans, coffee merchandise and coffee
packs. This report will discuss the new business plan for espresso coffee shop and evaluate the
business growth opportunities for company through apply the porter generic, Ansoff matrix and
marketing plan. This report will also analysis the sources of funds such as loan from bank,
personal savings, etc. this report will also elaborate the succession and exit option for business
with advantages and disadvantages for business crisis and uncertain to maintain business in the
future.
MAIN BODY
LO1
Analysing the key considerations to evaluate the growth opportunities
The company must have the successful vision in order to have better growth
opportunities that helps them to earn better revenues in the market. The growth opportunities of
Espresso Coffee shop is as described by using the VRIO and Porters generic strategies (Weiss
and et.al., 2020). The analysis is as described below:
VRIO analysis:

Resource Valuable Rare Imitable Organized
Management of
the company
Right Right wrong Right
Innovative
technology
Right wrong Right wrong
Employee of the
company
Right Right wrong Right
Value of brand
Right wrong Right wrong
Infrastructure of
the company
wrong wrong Right wrong
From the above VRIO analysis it can be said that the coffee shop used to have various
resources that helps them to have continuous business in the market. The firm used to have better
working staff which makes them to have better working and provide the better level of
productivity in the company. Moreover, there are various other factors that will help the
company to have better growth in the market. Thus the company has to make the special
attention towards their working as they are bringing the new product in the market. The major
advantage that the company can have is to have the enhancement in the market and by this the
company can have better opportunities in the market.
Porters generic strategies: There are basically three types of strategies from this the company can
choose one of the best that helps them to grow in the wider market. The strategies are described
as below:

▪ Cost leadership strategy: In this strategy the company used to decide the cost that
must be lowered which used to have wider target market (Zanjani and et.al.,
2020). This strategy can be used by the company which helps the organization to
have increase in the profits by having the target customers. By this the company
used to provide the average quality of products that will satisfy the customers in
the market.
▪ Differentiation strategy: This strategy will help the company to have better focus
on the development of the new products in the market. The company can
manufacture the unique products which will be helpful for them to have more
customers by differentiating the products in the market.
▪ Focused strategy: This strategy can also be adopted by the company by having
combination of the above both strategy. In this the company can sell the new and
unique products at the lower rate which attracts more customers.
From the above stargates it is recommended to the company that they must adopt the
differentiation strategy. This helps the cited coffee shop to sell the new product to be
successfully launched in the market. Thus, it will increase the market share and profitability of
the company in the competitive market. Moreover, this strategy will also help the company to
generate better revenues so that the cited company can grow at the faster rate.
Evaluating the opportunities for growth through applying Ansoff’s growth matrix
The Espresso Coffee shop is one of the most famous coffee shop in the UK and thus it
used to have better management as well. There are certain opportunities that are undertaken so
that the company must have the better market share. The company must make the strategic plans
that helps them to develop the plans in order to achieve the goals. This can be achieved through
the Ansoff growth matrix, as this model is used when the company needed to bring new products
and services in the market. This model consists of different elements which are as described
below:
▪ Market penetration: This type of strategy is basically focused on increasing the
sales of the existing product in the existing market. This can be done by
increasing the overall market or by decreasing the process so that the company
can have better customer segment (Chintalapati, 2020). Moreover, this strategy
will help the company to have new customer segment by lowering the process of

the products and services. By this the company will be having better market
segment so this maximizes the revenue of the company. There are different
approaches that can be adopted by cited firm in order to know about the new
products in the company.
▪ Market development: This is the another strategy that helps the company to have
selling of the already existing products in the new market. The company can
adopt this strategy at that time when it has to generate more revenues rather than
having innovation in the market (Clarissia, 2019). This makes the company to
have the strong management which has higher efficiency to maximize the
efficient losses.
▪ Product development: This is considered as one of the best strategy as in this the
company used to sell the new products in the existing market. The strategy is
required to have the proper investment that helps them to do the research and
development in the market. This also helps the company to have the trained and
qualified staff in the market. By having the product development it makes the
company to be unrelated with the market by having the innovation. The company
has to be assure that there are qualifies individuals which supports them to sell the
new products in the existing market.
▪ Diversification: This strategy helps the company to have the new and innovative
products that are required to be sold in the new market. This is considered as one
of the most important strategy which might be helpful for the company to have
better selling in the market. The company must be sure about the existing
competencies so that they must have the roles and responsibilities to perform in
the market.
From the above growth opportunities the company must opt for the diversification
strategy in the market. In this the company can sell the new products in the new market so it will
be helpful for them to have new target market. Further it also helps the company to generate
better revenues in the market. For this the company has to assure that they must have the better
use of the technology so it reduces the chances of occurring any errors in the new market.

LO2
Evaluating the potential sources for capital funding in coffee shop
Bank loans: It is one of the best source that helps the company to raise funds in the
competitive market. The financial institutions or banks used to provide loans that supports the
company to grow in the market (North and et.al., 2022). By having the amount of money it used
to supports and have expansion in the market.
Advantages Disadvantages
 Financial institutions used to provide
loans to company.
 Interest rate is lower than as compare to
bank overdraft.
 Collateral security has to be paid by the
company in order to get loan.
 Lots of paper work is done in order to
get loan from banks.
Crowdfunding: In this source of capital funding the small amount of the money is
collected from the number of people in order to get money which helps them to start the to start
or do something new. Further it makes the company to have the easy availability of the finance
by getting the better finance from the market.
Advantages Disadvantages
 This source used to help the company
to have increase in the innovation.
 It also helps the company to avoid in
order to give up in the equity.
 The company will be having low
success rate by getting amount fro this
source.
 It used to have high rules and
restrictions.
Peer to peer landing- with the progress of time this method is getting great prevalence in the
business community (Fortna, Lotito, and Rubin, 2018). Under this method, the cost is cut down
and this alternative comes up with great basket of salubriousness.
advantages disadvantages
 It cuts down interest cost. Since other  If there is no surety of revenues then

alternatives such as bank loan are prone
to occur cost.
 This is quite innovative avenue since it
gives edge to new corporations.
 By this method diversification can be
brought to the organizational findings.
this method does not suit to the
organization.
 Sometimes organization does not get
due to some goodwill related reasons.
 If profitability is lower than it does not
suit.
Angel investors:
This is the method where some new investors help innovative business practises. If an
organization is doing something innovative then may get loan from such avenues (Mason and
Botelho, 2018).
advantages disadvantages
This is the most suitable method for innovative
business. Along with funds sometimes better
assistance is also given.
If the organization is not having ability to
impress such investors then it does not remain
a suitable alternative.
Form the above analysis it can be twigged that there are number of avenues are available
to the organization and it may go with these alternative as per its suitability and appropriateness.
The cited organization. The all alternatives are having their positives and negatives it totally lies
in the need of an organization to go with certain source. So it is extended that the organization
may go with short term loan which will help it in confronting with the prevailing circumstances.
LO3
Business plan:
vision of company:
will become the large craft coffee business over the world. It will provide the best
quality products and services to customer for become the successful in industry.
Mission of company:

company will establish their whole business different from the other business and provide
better quality coffee and its products from competitors, and they also increase their profitability
with the new business plan.
Objectives of Dose espresso:
The main objectives of business to satisfy their customer and enhance customer
experiencing and make them feel enjoy (Lopes, 2021). Espresso want to serve their services to
every customer with innovation to provide the sugar free coffee because there are many
customers who avoid sugar because of diabetes.
Stakeholders:
The Dose espresso have some few numbers of employees and stakeholders in their
company because it is local business. Stakeholders of business such as investors, governments,
employees and environments. All theses are most important for business because they help in run
company in effective ways. Dose espresso are also verified from the UTZ coffee so, they are also
stakeholders.
Capital budgeting:
capital budgeting is the plan where company evaluate the potential and also apply the
time value concepts for business investment decision-making skills. It consists the budgeted their
projected cash flows for sugar free coffee products (Tipu, 2018). There are various types of
funding which includes in the equity capita, bank loan, debt capital, personal capitals, retained
earning, venture capital, etc. company need the 7000 to 25000 dollars for new products ideas for
Dose espresso company. It will be the initial capital funds for Dose espresso coffee shop.
Budget plan:
Budget for Dose espresso coffee shop
particulars Amount (in £)
salary 5500
Ingredients 4000
New equipment’s 3000
Raw material 500

Administration expenditures 6000
Marketing expenditures 3000
Monitoring expenditures 3000
Total expenditures 25000
Capital budgeting of Dose espresso company is not includes the depreciation expenses
because they are lowering the operating income as well as it also reduce the business tax
burdens. Budget is estimate the various funds and it will also depend on the capital equipments,
size of shop, supplies, staff cost, locations costs, local market factors, etc. business ca raise their
capital with the helps of retained earnings because it is easy and also boost the functioning for
growth as well as corporate liquidity.
Marketing plan:
Marketing plan is refer as the operational for marketing strategy that company will
implement to sell its new products and services to customer. There are various elements of
marketing such as product, price, place, promotion.
 Products: the Dose espresso coffee shop will offer the flavoured coffee with sugar free
products as well as it also consist the various range of items such as candy, desserts and
caffeine, etc. the coffee products will made the flavoured ingredients in order to meet the
needs and expectations of customer who are face diabetes problems and drink coffee on
the daily basis.
 Pricing: Dose espresso company will decide to go with the penetration pricing policy
(Fotiadis, Mombeuil and Valek, 2018). The company will keep price in the initial stage to
attract more customer and aware them about the product with low pricing strategy so
company able to cover the significant customer. It will also consider the competitors of
company.
 Place: company products will offer at the coffee shop to customer and their retain
customers at the relevant time to satisfy them as well as provide services at consumer
place.

 Promotion: For promote the sugar free products and services of business with applied
the holistic approach because there are both traditional and non-traditional approaches
which can shall be practice. Company will use the social media marketing platforms for
real and relevant marketing.
SWOT analysis
SWOT analysis is the strategic management and planning with the helps of identify the
strength, weakness, opportunities and threats. There are two factors such as internal and external
factors, the internal factors includes the business strength and weaknesses thus the external
factors is includes the opportunity and threats.
strengths  Having great quality to make it.
 It will help to meet the needs and
demands of customers.
 The sugar free good with flavoured can
be contribution to lower prices.
weaknesses  It is a new product and services so there
is low awareness of customers.
 The sugar free coffee commodity are
not offering ever by it.
opportunities  Company can change the products by
hiring the improved chef (Benzaghta,
2021).
 May get bigger share of the market.
threats  There may be inadequate result from
the customers because they are not get
satisfied.
 Low cost of products may flowing
issues.
Technology plan:

 The technology plan are also most important for business to work effectively and
efficiently because there are various strategies which helps business which can be
adopted by the coffee shop. it also helps in sustain the competitive marketplace.
 Customer of Dose espresso can improve their customer expectations and their needs with
data collection technology that helps in send the personal information of customer at
coffee shop and send them message regarding the anniversary and birthday (Williams,
2020). It is the great strategy to attract customers towards the coffee shop.
 Business will also provide the convenient payment option with the helps of technology
such as debit card and credit card options.
 company will also provide the information regarding the products and online ordering
system because it helps in retain and attract more customers as well as convenience them
effectively and efficiently.
 Company will also establish the app for coffee shop so, customers place their order
before visit at shop and also every customer can know about company as well as
customer can connect with business for effectively.
 Technology plan helps business to provide better services to customers and also based on
the overall market strategy.
From the above justification, the capital budgeting, budget plan technology plan, swot
analysis and objectives of company are evaluate for the planning for growth. Dose espresso can
raise retain earning and own capital for secure the investment with the company stakeholders
(Pranata, 2022).
The business main objectives will be achieved the successful with the helps of business plan and
it is essential for formulate the business objectives and its goals. Dose espresso will adopt the
new strategy, and they can come with the new products and services which accomplish the
business objectives effectively.
LO4
Exit or succession options:
There are many strategies which can be use by the business. The owner of business can
plan to adopt the existing strategies at the time business may face some issues and challenges if
they face some crisis in financial and management so, the company have to plan the exiting and

succession strategy for business before staring the business. This strategy helps in make the
sustainable profit for business and reduce the chances of liquidate business in uncertain
situations. It helps in plan the successful strategies for business.
Acquires: it is the business exit strategy business is about the solely to acquire its talent. This
strategy is beneficial to the skilled employees (Shen, 2021). In this strategy, company can buy
another company. The ownership of business to the company that buy from. There are two types
of acquisition such as hostile and friendly. The hostile is referred as that business owners are not
agreed for stake to the complete acquisition. In friendly acquisition, the business owners are
ready to acquired by the other company.
Benefits:
 it helps in increase the business market shares and also come with new ideas in market.
 It helps in increase the capital gains and growth in revenues.
Drawbacks:
 it can enhance in unemployment.
 It can be created the cultural conflicts between two businesses.
 Some clashes are also occurred between companies objectives.
Merger: it is existing strategy where businesses are combine into one. Merger helps in enhance
the business values. It is the best strategy because owners are required to be the part of business
at the time of mergers. Mergers have various types such as market extension, vertical, horizontal,
product extension and conglomerate. The owner of company must be ensured that before
merging business about that the company must be good fit with the new one.
Benefits:
 business owner can negotiate the terms of business and price.
 Owner also get break from business.
Drawbacks:
 it is complex strategy for business to understand the terms and conditions.
 It is costly and more time-consuming strategy.
 This strategy may not become successful.
Sell business to other: owner of company can sell their business to someone knows as an exit
strategy. Business can sell to friend, employees, business colleague, family friends and customer.

But the owner must be ensured that they disclose their business profitability and liability of
business before sell business to friend, family and other acquaintance who are buy business.
Benefits:
 It is the easiest way for existing strategy.
 It also the great opportunity for business to get back their business.
 Business will carry out.
Drawbacks:
 Selling business to another is cam damage the plan of business and its growth and
developments.
 Company can also face the competition because of sell their business.
 Firm also face the market exhaustion because of the customer expectations and their
needs.
Initial public offering:
It is referred as the sale business stock to the public and it is also known as the going
public. The initial public offering helps business to secure their pay off debts and high growth
period because the company give their business ownership toe the stakeholders from the public.
It is complex strategy for the small business scale because it raises the large amount of money
and cost as well as time (Osei, 2019). The business also need to ensure about the investments
banks, financial information and company also require to register their business with securities
and exchange commission.
Benefits:
 It helps in retain employee and attract them.
 It also helps in raise business capital and reduce the corporate debts.
Drawbacks:
 Business can face the issues of cost sharing in IPO.
 Firm also face the risk of not accomplish the IPO.
From the above justification, Dose espresso coffee shop company can use the existing or
succession strategy, if company will face some problem in the future. Coffee shop company can
use the acquisition strategy for existing their business because it helps in remain business values

and its name as well as reduce the business competition and also helps in make the faster
competition for company and generate more profit.
RECOMMENDATION
 Company should provide the quality services to customer because they are able to attract
them and also focus on the coffee shop interiors.
 Company should evaluate their competitive analysis for better growth and developments
opportunities for Dose espresso coffee shop.
CONCLUSION
As the conclusion, planning for growth is the strategic planning for Dose espresso coffee
shop company with sugar free coffee products with favoured for the business growth and
developments. The report elaborated the business plan and its sources of funding that allow
business to raise their funds for business growth as well as competitive advantages with various
frameworks such as VRIO and porter frameworks. This report also discussed the exit or
succession plan such as merger, acquisition, business sell to others for Dose espresso coffee
shop.

REFERENCES
Books and Journals
Benzaghta, M.A.,and et.al., 2021. SWOT analysis applications: An integrative literature
review. Journal of Global Business Insights. 6(1). pp.55-73.
Chintalapati, S., 2020. BankBuddy. ai—Business Expansion and Marketing Dilemma: A Case
Study to Discuss the Ansoff Growth Matrix Concepts Combined with Business
Expansion Strategies for Expanding into Emerging Markets. Emerging Economies
Cases Journal. 2(1). pp.44-53.
Clarissia, M. S., 2019. A study on Ansoff Matrix Technique: As a growth strategy and an
adaptive learning technique adopted in the leading brand of products. Journal of
Composition Theory. 12(9). pp.1494-1506.
Fortna, V. P., Lotito, N. J. and Rubin, M. A., 2018. Don't bite the hand that feeds: rebel funding
sources and the use of terrorism in civil wars. International Studies Quarterly. 62(4).
pp.782-794.
Fotiadis, A., Mombeuil, C. and Valek, N.S., 2018. Designing and implementing a marketing
plan. In The Emerald Handbook of Entrepreneurship in Tourism, Travel and
Hospitality. Emerald Publishing Limited.
Lopes, G.R., and et.al., 2021. Insights on single-dose espresso coffee capsules’ volatile profile:
from ground powder volatiles to prediction of espresso brew aroma
properties. Foods.10(10). p.2508.
Mason, C. and Botelho, T., 2018. Early sources of funding (2): business angels.
In Entrepreneurial finance: The art and science of growing ventures (pp. 60-96).
Cambridge University Press.
North, M. A. and et.al., 2022. Tracing primary sources of funding for, and patterns of authorship
in, climate change research in Africa. Environmental Science & Policy. 127. pp.196-
208.
Osei, D., 2019. Corruption and the poor: Is social capital an exit option. New York: Mimeo.
Pranata, R., and et.al., 2022. Coffee and tea consumption and the risk of glioma: a systematic
review and dose–response meta-analysis. British Journal of Nutrition.127(1).pp.78-86.
Shen, C., and et.al., 2021. Exit rights open complex pathways to cooperation. Journal of the
Royal Society Interface.18(174). p.20200777.
Tipu, S.A.A., 2018. Business plan competitions in developed and emerging economies: What do
we still need to know?. Journal of entrepreneurship in emerging economies.
Weiss, P. and et.al., 2020. Funding sources and effects of limited funding in pediatric
pulmonology fellowship programs. Pediatric Pulmonology. 55(1). pp.221-225.
Williams, S.P., 2020. Developing a Successful Technology Plan. In Managing the New Bank
Technology (pp. 15-22). Routledge.
Zanjani, S. and et.al., 2020. Designing a Corporate Growth Strategy Based on Ansoff Matrix
Using Fuzzy Inference System. Innovation Management in Defense
Organizations. 3(2). pp.151-178.

2