Planning for Growth in Small Businesses: Evaluation of Key Considerations, Ansoff Growth Matrix, Funding Sources, Business Plan Design, and Exit Options

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Evaluation of key considerations for growth opportunities .......................................................1
P2 Ansoff growth matrix.................................................................................................................4
M1 Options of growth by using a range of analytical framework. ............................................5
P3 Sources of funding with its benefits and drawbacks..................................................................5
M2 Evaluation potential sources of funding and justifying appropriate source of funding........6
P4 Designing a business plan for growth ........................................................................................7
M3 Developing an appropriate and detailed business plan for the growth and securing
investment ..................................................................................................................................7
P5 Assess exit or succession options for a small business with its benefits and drawbacks of each
option.............................................................................................................................................11
M4 Evaluation of exit or succession options for a small business comparing and contrasting
the options and making valid recommendations.......................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES:.............................................................................................................................14

INTRODUCTION
The planning for growth allows the organisation in assess how the company is
performing and key areas of opportunity are identified which helps the business in future
expansion. The company strategic plan defines the medium term to long term goals for
accomplishment. In the company, planning for growth is the strategic activity to track the
growths in regards to returns and planning is done by stakeholders (Afzalan, N and et.al., 2018) .
The report is based on Cafepod coffee company providing quality coffee to the customers. It was
established in 2011 by two South African friends i.e. Brent Hadfield and Peter Grainger. It's
headquarters is located in Filament Walk, London, Greater London, SW18 4GQ,
United Kingdom (CAFEPOD COFFEE, 2021). In the report the discussion is based on the key
considerations for growth evaluation and Ansoff matrix is used. Furthermore, sources of funds
and business plan is prepared. The succession and exit plan is also discussed for the small
business.
P1 Evaluation of key considerations for growth opportunities
The planning for growth is required by small or medium enterprises which implies
specific model and framework in the competitive environment to have growth opportunity. The
Cafepod coffee company uses several models which helps in business expansion and growth rate
of market is enhanced by gaining growth opportunities.
Competitive Advantage- It is described as the prime growth module in the business as
the competition in the market place supports the firms to conduct business in innovative manner.
When Cafepod coffee company serving coffee competing with competitors for the market share
and acquiring unique attributes which are valuable to consumers, resulting in competitive
favourable position (Ahani, S and et.al., 2020).
Porter’s generic strategy
This strategy describes how business increases its competitive benefit of organization by
applying appropriate strategy. This model was formulated in 1980 involving strategy of cosh
leadership, differentiation and focus.
 Cost leadership strategy- The organization gains the competitive advantage by reducing
in the cost market share is increased. The middle class are targeted by the Cafepod coffee
company to enlarge the market share which leads to ample consumer market mix. To
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have the high brand awareness and sales the Cafepod coffee company focuses on
affordable and easily accessible of produce. This strategy offers the advantage in
expansion of consumer base, brand recognition.
 Differentiation strategy- It is the type of the strategy used to differentiate its products
from the competitors having unique benefits. For expansion of customer base the
Cafepod coffee company focuses on unique product features. It takes the use of brand
logo to make strong brand image in the minds of consumer (Ali, Z and et.al., 2019).
 Focus strategy- In such strategy the companies are focused on resources for serving the
niche market. The Cafepod coffee company seeks the cost advantage in its target market.
To satisfy the customer expectations the Cafepod coffee company focuses on product
attributes by making the changes in the product.
In accordance to above cost leadership strategy is appropriate as it helps in gaining large
customer base by lowering the prices and offering discounts and creates the high brand image
and awareness.
Boston consultancy group matrix
This matrix is denoted as planning tool having the opportunity of growth in the firm for
goods & service. It includes the four elements which are determined on the basis of the market
share and market growth level on the criteria of high &low performance. The use of this matrix
in Cafepod coffee company will help in analyzing growth status and opportunities.
 Dog- It is the stage where the firm is having low market growth and share in the market
place having slow growth. The cash returns generated are low which does not require
investment in the Cafepod coffee company. The strategic choice of this stage is
retrenchment, divestiture.
 Question mark- In this large amount of cash is consumed but having the low market
share. It is known as 'problem child' where there is the potential to gain the market share
and becoming star. It is concerned with the strategic choice of product development and
market penetration. The close consideration is required by the Cafepod coffee company
as it comprises low market share in rapid growing market which consume high money
and incur losses (Boden, P and et.al., 2020) .
 Star- This stage describes the high market growth and high market share. The stars
comes in both category of cash generators and cash users. The strategic choice of this
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