Planning For Growth

This report discusses the strategies and considerations for SMEs to achieve growth opportunities. It explores the Ansoff Matrix for Prufrock cafe and various sources of funding for business expansion. The report also provides insights into creating a business plan and exit strategy.

Planning For Growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1.Consideration for SMEs for growth opportunities.................................................................3
P2.Ansoff Matrix for Prufrock cafe:............................................................................................5
LO 2.................................................................................................................................................7
Various sources of funding..........................................................................................................7
LO 3.................................................................................................................................................8
Business plan...............................................................................................................................8
LO 4...............................................................................................................................................11
Exit Strategy..............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth one of the difficult tasks for any organisation as different factor
influence as well as effected in this process. There are various strategies for the growth of
organisation but with analysis of different factor for example competitors, product value,
location, trend and taste of the customers. Prufrock cafe is one of the best serving beverage shop
in the UK and for the old as well young generation. This report highlights different consideration
for example innovation and launching of new product for market gain. This report will explain
about growth opportunities for SMEs and also it will explain Ansoff Matrix. Report also explains
different sources of funding the growth of organisation like investors, collaborators, loans etc
which helps in increase capital, expand business and also describe various drawback attached to
it. Below reports describe a plan for the growth of organisation with the help of available and
funded finance with proper strategy. At the end of report explain different methods of closing the
company as well its succession it includes selling to friend, neighbour or any other big company
and also discuss benefits and drawbacks of it.
LO1
P1.Consideration for SMEs for growth opportunities
Opening and running of SMEs always has a primary goal to expand and growth. Prufrock cafe
started with aim to provide best coffees in the London as well as around the world. Its beverage
taste attracts large number of customers from youth to old ages.
Company has focused on different consideration which becomes opportunities as well as
threat for the organisation for example competitive advantage and innovation can helps in
increasing growth of the organisation.
BCG MATRIX:
BCG Matrix is use to help in strategic planning of the organisation by considering growth
opportunities as per analyse of investment, discontinue or developed products and hence helps in
increasing growth of the organisation (Onu and Mbohwa, 2019).
Dogs:
In this category product has very small market share and growth for Laoshan black and
Losshan green tea in Prufrock cafe is less sailed because of bad taste and high price and hence
decrease company’s profit as well revenue on the other hand large number of customers choose
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another shop after tasting it which ultimately effect on the growth of organisation hence decrease
market share.
Question Marks:
In this category product with high growth but because of less investment its market share
is low for an example in Prufrock cafe Ethiopia Debello is highly in demand but limited with
only one cafe of the organisation because of high price of raw materials.
Stars:
In this category product with high demand in the market as well high share market share.
Prufrock’s Espresso with milk and without milk and Assam tea is high in demand because of
taste as well as long time energy quality on the other hand law raw material cost again become
preferable choice. These beverages have high market share from the long time and hence
increase growth of the organisation (McKeown, 2017).
Cash Cows:
In this beverages with low growth but high market share. Caffe Chino of Prufrock is one
of the highly purchased beverages but its growth is either stable or low because of old
generation’s choice which they don’t want to change on the other hand youngsters are more
flexible to explore new beverages rather than stuck on the one (North and Varvakis, 2016).
Justification:
From the above Prufrock consider question marks as market share can be increased by
product launching in different shops. Ethiopia Debello has a high growth capacity and can attract
large number of profit which increase growth of the organisation as well create its unique image
of serving different variety of beverage in competitive gain. Growth of the organisation is
depend on uniqueness or variety of taste it serve hence choosing Ethiopia Debello increase
market share of the organisation.
Competitive Advantage:
There are different considerations while planning growth of the organisation. As Prufrock
has a strong fame of serving large number of customer in UK. Extensive use of digital media
influence large number of people and favour competitors so considering and increasing customer
loyalty become another task for the company. UK youngster welcomes new taste and trend for
example Assam tea is more popular but limited hence if the company launching new product it
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has to considered this factor so as to gain competitive advantage. Organisation has to focus on
beverage habit of old citizens who are habitual or addicted to one type of beverage, most of them
attracted to Café Chino but providing complimentary cookies help in gaining their loyalty.
New products and Service innovation:
Innovation and new product play significant role in the growth of the organisation. For
growth of the company, it has to focus on launching new variety of flavours of beverages as well
as introducing new beverage help in increasing growth of organisation. Company profit and
customer will drop down if the company didn’t focus on taste and trend of the customers.
Collaboration:
As the Prufrock has good long reputation of serving UK customer with high profit, it can
expand its business by merging, acquisition and collaboration with other shops. Instead of
opening new stores company can collaborate with other shop which has an ideal location with
growing reputation and hence decrease expenditure of company and hence increase the growth
of organisation
P2.Ansoff Matrix for Prufrock cafe:
Ans off Matrix is use to check different strategy in which company’s growth can be
possible.
Market Penetration:
This strategies penetrate market but product remain the same and hence extra
expenditures can be reduced. For market penetration company can use strategy in different ways
and as per need. Growth can be possible by reducing prices of product so that more and more
customer can be attracted. Increasing loyalty of customers can be possible by providing loyalty
cards and discount time to time. Another approach of market penetration is use of digital
marketing to influence large number of customer by adding, description and benefits of the
product.
Product Development:
Product development is another strategy for increasing market share and launching new
product in existing market Company can choose product according to taste and trend of the
customer for example UK consist of large number of youngsters, Company can introduce
different variety of products as per taste and trend of youngster and hence attract large number
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of the youth. Promoting new product on media, social media and other platform again helps in
the growth of the product as well as become competitive advantage.
Market Development:
It is one if the best way of marketing and old product launch in new place. Company
attract large number of customer by using digital marketing and other form to describe brand of
the company in old market as well as various benefits of its product. Companies promote product
in new market on digital and media platform and show various type of product, benefits and
quality which create its unique image from other competitors (McDonald, 2016).
Diversification:
Diversification is one of the riskiest strategy as new product launches in new market and
improper analysis leads to shut down of the company. This type of strategy can only be possible
where the customer welcome new taste and trend. Company can increase its market with new
products in the different location of UK as most of youth in country welcome new brands and
product hence can increase its profit (Loredana, 2016).
Justification:
From the above Market development will be the best option for PRUFROCK coffee
shop. Cafe can use media as well as digital platform to attract large number of customer.
Company has a advantage of most preferable shop in different part of the country hence its fame
again helps in the growth of organisation as well as increasing its profit and revenue
(Gurcaylilar-Yenidogan, and Aksoy, 2018).
LO 2
Various sources of funding
There are a lot of changes and improvements which have to take place in the organization
so that they can maintain their reputation and image in the market. There are funds which are
required so that the company will be able to function effectively in the market and for that there
are a lot of investments which have to be done. This is important so that the organization can get
a competitive advantage and especially in this industry there are a lot of changes which have to
be done. The further report is going to consist of the different types of funds which can be opted
by Prufrock Cafe.
 Angle investors
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There are rich businesses which want to expand themselves in small businesses and are ready
to give out the loan or investment which is required by these other businesses. This is a great
opportunity for small businesses because there is an exchange of knowledge and experience as
well (Crow, 2017). With sharing these large businesses also take control on the organization
which is not good for a long run because they take over the organization so that there is a good
functioning. There are a lot of decisions which have to be taken by businesses but without the
right skills the operations are not going to be effective. Prufrock café is not having a lot of
experience in the market but they do not want to lose the control as well on the business which is
why they do not opt for this funding so that they do not lose control on the organization and the
conflicts in the organization is also going to be limited which is a very essential factor for the
long run.
 Bank loans
There are a lot of legal factors which are involved in this aspect. The companies which opt
for this kind of funding have to have strong decision making ability in the organization because
the amount taken will have to be paid back on time. If the organizations are not being able to pay
back the amount on time then they can lose control over their assets and the banks can take away
the business even so that they can get the right amount back which had been agreed upon. There
has to be a good economic factor in the company so that they can have a good functioning and
performance in the market for a longer run.
 Crowd funding
The café has a very good interior of the company which is why the organization must go for
crowd funding since the organization will be able to operate effectively. There are more
customers who can get attracted and the results of this funding are going to be better than before.
There is higher profitability and the control on the organization is not going to be reduced. This
is a very good planning measure which can be opted by Prufrock café for a longer run in the
market and be able to compete in this market (Ragde and Shukla, 2019).
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LO 3
Business plan
Executive Summary
There are a lot of strategies and measures which organizations have to take so that they can
operate successfully in the market. Companies in the market have to analyse the market
effectively so that they can make the further decisions according to that which is going to make
the company have superior effectiveness.
Objectives
 By the end of 2023 there is going to an increase in the profit margins of Prufrock by 45%.
 The sales will increase by 40% by the end of 2024.
 There is going to be a market share increase by 35% by the end of 2023. It is going to make the organization have a better strategy and objectives for the
organization by the end of 2026.
Marketing mix
 Price
The company would be using competitive pricing strategy for themselves because they have
unique products and services in the organization which is going to make the company have a
higher image in market.
 Place
Prufrock has already established themselves in London Centrally and that is a huge factor for
firm to get in the right customers and loyal as well.
 People
The customers, employees, stakeholders, etc have to have a transparency of operations and
functioning which are taking place in the company so that Prufrock will be able to create a strong
image and status in market (Deng, Ma and Zhang, 2017).
 Promotions
There are offers and discounts which are being given to the customers and there are cards which
have been given to the loyal and daily customers which are coming in the café.
 Process
There are a lot of changes which are enchanting place in products and services so that the
satisfaction level of the customers are improved which is a good factor for longer run of business.
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 Physical Evidence
The customers and the employees are having a good functioning and environment to work in so
that there would be a good functioning and the café’s portfolio will get stronger.
 Product
The quality of services and products of Prufrock café is well maintained which is why the
company is having a stable performance and reputation in the market.
Marketing strategy
 Segmentation
All the needs and opportunity of customers are different from one another and the café must be
able to operate and improve accordingly. There are a lot of strategic changes which are needed in
the company like informational technology which will have to be invested into so that the café
will be able to compete effectively. Behavioural Segmentation- For making the employees loyal and satisfied in the
organization is the aim of the organization so that they can maintain their operations. Geographical Segmentation- The organization focuses on the culture, values, population
density and other factors while improving the product and services. Demographic Segmentation- The focus is on the students, working age, etc by Prufrock
café so that they can have loyal customers (Ercoskun and Akunal, 2018).
 Targeting
The target for the company is to get in better and more options for the customers which are
travelling so that they will be able to get in more customers and make the brand image and
portfolio stronger.
 Positioning
The organization has placed themselves online which is a great factor for organization because
there organization has attracted and given all information to the customers on time and gained
their trust through this medium.
PEST
 Political Factors
There is a stable political power in the company which is why the organization has to make the
right and stable decisions for themselves. There are a lot of policies which have been changed for
the employees and customers which are being implemented effectively in the café so that the
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reputation of the organization is not affected.
 Economic Factors
The GDP of the country is getting better which is why it is very essential for company to be able
to have a strong base for themselves and the unemployment rate in the country is getting better
which is a great opportunity (Garnett, 2017).
 Social Factors
Improvement in products and services according to the trends, needs and demands is being well
taken care of by the organization keeping in mind the culture and value.
 Technological Factors
There are a lot of technological changes which have taken place in the organization which have
to be well maintained so that the company will be able to have a good efficiency and operations.
SWOT
 Strengths
There are the right skills and knowledge which is present in the company so that there is a good
functioning which can make company get a competitive benefit. The right decisions have been
taken for Prufrock café for a long run which is effective in the market.
 Weaknesses
There are not experienced employees who are working in the organization but the objectives and
targets of the company are being matched by the employees which are making the company be
strong.
 Opportunities
The products of Prufrock are improved from time to time according to the customer’s demand
which is a great factor for the company to have so that the organization will be able to operate
better in future (Gunder, Madanipour and Watson, 2017).
 Threats
There is a lot of competition which is present in this industry which is why the company will
have to have a clear sense of direction to function within so that they can compete efficiently.
Finance
Basis Amount
Labour €6,000
Raw material €5,000
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Technology €7,000
Components €2,700
Total €20,700
Sourcing Finance
Capital working is the source of funding which Prufrock café will opt for if they need the
investment amount for a better functioning in the organization. This is going to make the
economic factor stabile in the organization which is good for a long performance in market.
Monitoring and controlling
The employees have to be monitored and controlled so that the customers are satisfied. The
managers and leaders of Prufrock café are evaluating the employees on bench marking method so
that they can find out the capabilities of the employees and then make the further decisions
accordingly.
LO 4
Exit Strategy
There has to be a good exit strategy which has to be present in market so that organization does
not have to face any loss. There are a lot of scheme which are present in market for which
organization will have to make the risks factors be moulded accordingly for Prufrock café so that
they can operate effectively in market (Álvarez-Romero and et.al., 2018). Prufrock has taken a
lot of risks which are present in the company so that there is going to be a good aggressive
advantage. Sell business to director or employees
The managers and employees have an idea and gain interest in the company which is
good for company since organization can be handed over to them. Experience in the market and
changes according to the employees are very essential which can be done in this. There is going
to be a strong trust and strong bond in the organization which is good for the organization to
have so that there are a lot of decisions which can be taken and organization can get a
competitive advantage for a longer run.
Limitations
The limitation on the organization is going to be that the employees are not going to have
the right skills and knowledge to be able to operate effectively in the market. The employees will
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not have the right experience of controlling the organization as well which is not good for getting
in competitive advantage.
 Keep business in the family
There are family members, companion who can be trusted with the organization so that
the controlling and monitoring is going to be strong so that operations and productivity of the
company can be maintained (Pettit and et.al., 2018). There are trustworthy and loyal family
members to whom the businesses can be given so that there would be a better functioning. The
control and decision making power is still in the owners hands because they have a lot of
experience which can be very helpful or the businesses long run.
Limitations
There are a lot of conflicts which are created because of businesses in the family and that
is not good for the business since the operations are very slow. There are a lot of responsibilities
which are present and they have to be fulfilled.
 Liquidation
This is not having too many legal issues and can be done faster and without many
troubles which are a very good factor for the company to be able to get back the investment
which they have made in the organization (Hill, 2018). This is a good strategy for businesses to
not get bankrupt so that they can get more ideas for the future which are going to be better and
effective for a longer run.
Limitations
Without legal advices there are going to be a lot of drawbacks of this strategy for
Prufrock because the equipments and technologies which have been added in the organization
are going to have depreciation and the amount is not going to be the same.
Prufrock Café would opt to sell the business to managers and employees because they
have supported the idea of the café from the beginning and there are better performance. There
are a lot of decisions which have been taken by the managers of the company as well so that
there would be better functioning and company will be able to operate effectively in market.
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CONCLUSION
From the above report it can be concluded that there are different method for
PRUFROCK cafe’s growth for example by using market development shop can increase its
revenue as well expand its business. Report also explains different factors that in BCG Matrix
influence growth of the organisation. Ethiopia Debello is more popular among customer of the
cafe so company can add into different cafe to attract the customers and hence increase the
growth of organisation. Company also considered innovation, competitive advantage to increase
its business for example using different creativity on cups and in the shops can attract large
number of customer. Report describe various funding sources available for company’s growth
for example bank loan which helps in cafe’s expansion and increase financial capabilities, it also
explain drawback like high interest and others. In the above report describe plan for growth of
the organisation with finance and in this plan explain methods like attracting investors, launching
new products in the market etc. In the last report describe exit or succession of organisation, in
this by giving organisation in right hand maintain the good-will of organisation as well as gain
loyalty of customers.
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