Planning for Growth in Small and Medium Enterprises: A Case Study of Blighty Cafe in London, UK

This article discusses the key considerations for analysing growth opportunities, evaluating opportunities for growth using Ansoff's growth vector matrix, assessing various types of potential sources that can be used by companies to collect funding, and formation of a business plan that includes objectives, financial information and strategies for achieving growth in small and medium enterprises. It includes a case study of Blighty Cafe in London, UK.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1: Evaluating key considerations for analysing growth opportunities using related models :..3
P2: Evaluation of the opportunities for growth using Ansoff's growth vector matrix :..............6
P3: Assessing various types of potential sources that can be used by companies to collect
funding with their drawback and benefits :.................................................................................7
P4: Formation of a business plan that includes objectives, financial information and strategies
for achieving growth : ...............................................................................................................8
P5: Options for exit or succession to a small business enterprise with their benefits and
drawbacks :...............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Growth is a process of learning and getting better. This is a crucial process for
organisations and even for the people in their life. It is not a one time process and must be
consider and achieved in the lifetime. This provides expertise to the person or organisations that
is achieving growth. Growth helps companies to increase their markets that directly impact on
their revenue and profitability positivity (Peterson, 2018). Small and medium enterprise (SMEs)
are enterprises that operate on a small or medium scale. These are the most commonly found
types of business in the world. The following file is based on analysing methods for planning and
achieving growth to a business entity. The chosen company for the file is Blighty which is a cafe
situated in London, UK. It first starts with the analysation of the key considerations for
evaluating growth opportunities using several models. Than it analyses the opportunities fro
growth using Ansoff's growth vector matrix. Then there are some important sources of funding
for business enterprises with their advantages and disadvantages. It then includes a business plan
which comprises of the financials and strategic objectives. At last there are exit or succession
options for small scale firms.
MAIN BODY
P1: Evaluating key considerations for analysing growth opportunities using related models :
Achieving growth is not an easy process. There are opportunities always available in the
market. For attaining growth these opportunities are needed to be analysed according to the
market and scale of the busines (Adu-Gyamfi, 2020). Blighty is a cafe in the Porsche area of
London, UK. It was established in the year 2013 It provides mostly all of the food products that a
cafe renders to its customers such as – coffee, pizza, burgers, French fries, British food and wine
too. Its main focus is on particularly British food. It specialises in providing British food that has
been eaten from a long time by the British people. It claims itself as the best British food serving
place. Several models are used in order to scan the business environment and identifying the
growth opportunities. Some of these models are – Pestle, porter's generic and BCG. These are
discussed in the following in relation of the Blighty cafe.
Pestle of Blighty :

Pestle is a strategic framework used to analyse the external business environment of the a
company. This provides major factors of the external or macro factors. It's name is the acronym
of the factors that are included in the modal. Following is the elaborated pestle in context of
Blighty :
 Political – These are the governmental policies that have influence over the
business environment such as – fiscal policies and free trade disputes. The
policies that may be given for the quality of food or area of practices are some
political elements that can effect the company (Heim LaFrombois and et.al.,
2019).
 Economical – These factors has a direct impact on the economy of a country and
its performance such as – income distribution, employment levels and impact of
globalisation. Mostly every type of business boost the economy in which they
operate and the economy of w3hich it belong. Economical factors such as –
disposable income and spending power of the people can effect Blighty as higher
the income and spending power, more the people will spend on non essential
products such as eating in the cafe.
 Social – These are the people of the society related factors. The people have a
influence on generally every type of business as they are the final consumers for
which the business operate (Yan and et.al., 2021). Some types of social factors are
– consumer attitudes, buying patterns and demographics. If the related company
provides quality and food product to which the consumers can relate, it can be
benefited from this factor.
 Technological – These factors relate to the level of innovation and technology
that the company is using or can use for producing goods, distributing them and
communicating with the customers. Brightly can use efficient coffee rendering,
food storing and food serving innovatory ways to its customers. This can help it in
increasing the level of satisfaction of the consumers.
 Environmental – These type of macro factors relate to the environmental issues
of the surroundings and the world by practising sustainable ways of producing
and serving the goods to the market (Van der Wouden, 2020). The consideration
of these factors help a company to avoid any legal consequences and gain a

goodwill in the market. Brightly can consider the use of eco-friendly products in
packaging their food items.
 Legal – These factors tell about the practices which are allowed and not allowed
to a business entity. These factors can differ from territories to territories or
countries. Some of legal factors are – equal opportunities, consumer rights and
product safety. There are various food and safety related legalities that Brightly
need to follow and consider. When not followed, it can face strict government
issues that can lead to fines and punishments.
BCG Growth Share Matrix :
The Boston Consulting Group growth share matrix commonly known as BCG is a
strategic tool that represents a company's products and services through graphical representation
to help its decided what the company should carry on, which needs more investment and which
should be sold. It has four components that are used to classify the products or services of a
company according their market and importance (Tomaney and et.al., 2019). These components
are – cow, star, question mark and dog. These are explained in the below in context of Blighty :
 Cow – This includes products that have low growth opportunities but the
company has good market share of them. These are called as cows as they
generate good amount of revenue to the company but have low market growth
opportunities so it needs to continue them as long as possible. British foods such
as bacon, black pudding and salmon lie in this factor for Blighty.
 Dog – These are the products / services that have low market share and low
growth opportunities. The variety of soft drinks section lie in this category for the
related company.
 Question mark – Items that have high market opportunities but low market
share comes under this type. These currently render less revenue but have high
opportunities to gain market share. Coffee lies in this as it have a large market
but currently it is focusing less on coffee products as they have less margin.
Focusing and specialisation in coffee can attract new customers for it (Bitala and
et.al., 2022).
 Star – These are the products or services that provide major revenue to a
business firm. These have high market share and growth opportunities. The

alcohol section is a star for Blighty and it have high margin, growth opportunities
and market share for it.
P2: Evaluation of the opportunities for growth using Ansoff's growth vector matrix :
The Ansoff matrix is a marketing tool that is used by companies to achieve growth in
their business through several ways. These ways are - increasing the sales, increasing the market,
bringing new products or services and diversifying in segment. The matrix is also known as
product / market expansion grid. It was developed by H. Igor Ansoff in the year 1957 who was a
business manager and a mathematician (Agajie and et.al., 2020). Blighty can use this framework
to increase the level of customers it serves and achieve growth which will directly help it in
enjoying increased profit generation. The matrix concludes of four different concepts of markets.
These are discussed below in context of the chosen company Blighty :
 Market penetration – This concept is about focusing on increasing the sales of
the current products / services of the company in the current market in which it
deals. For this Blighty can improve the quality of the food and use several
marketing methods such as advertising to attract more customers and increase its
sales.
 Market development – The same product or service in which the company deals
are sold but to the new customer base by expanding to the new market. The
corresponding brand can increase its presence in the new cities or even in
different countries. This will greatly help the company as the food products of it
will be new for the market which they would love to try (Carrión and et.al., 2020).
 Product development – It is about the introducing of new types of products /
services to be sold in the existing market by the company. In this, Blighty can
increase the amount of choices that it provides to the customers as different
customers have different taste of food and the customers who do not like British
food will also be attracted.
 Diversification – This is the most investment needed concept in which the new
types of products or services are introduced and even the market gets increased to
newer ones. This may be the highest investment needed concept but it have the
potential to positively affect the revenue of the company . It can make presence to

new markets in which customers will be attracted to its specialisation and even
some new food products need to be added in the menu as the eateries that they
like can also be ordered.
P3: Assessing various types of potential sources that can be used by companies to collect
funding with their drawback and benefits :
A new or already present business entities required money in the business operations. The
capital investment is essential for establishing a business entity in the market for many different
reasons such as buying machineries, buying or renting land, building infrastructure, paying
employees and keeping cash in hand or various miscellaneous expenses. It is not necessary to use
only own money (owner's money) as the investments requires in businesses are generally high.
There are many different sources which provide investment as funding to these business entities
that maybe for collecting interest, mutual connection or for boosting economy growth (Huang,
and et.al., 2019). Different types of sources have their different drawbacks and benefits. Some of
these sources are discussed in the following points :
 Lease finance – In this source of finance, large scaled companies or companies that have
investments and are planning to increase their presence fund the small and medium
scaled companies. This helps both the parties as the small or medium sized company gets
funding that can used in the business and the company that is providing the funding have
increased presence as they become legal owner of the asset during the lease.
◦ Benefits – The one who gives lease gets assured and regular passive income without
doing any work till the period of lease ends. The lessee gets money on less interest
rates (De Satgé and Watson, 2018).
◦ Drawbacks – The lessee may use the carelessly as he is not particularly the owner and
so does not have any responsibility over it. This may damage the asset of the lessor.
 Local money lenders – There are people in the society who gives loans to the needy
ones. Generally they are not registered with the government and provides money with a
risk of occurrence of bad debts and are themselves responsible for everything.
◦ Benefits – There is no need of much documentations and sometimes even collaterals
are not demanded. Also the people who have bad civil score or from any reason they
do not get loans from the banks can lend money from these people.

◦ Drawbacks – The interest rate charged for the money is very high compared to the
bank and other registered loans providing firms.
 Trade credit – When a business entity purchases goods or raw materials from other
business entities without the need of paying them at the time purchase is known as trade
credit. The companies agree to give and receive payments on a continuos basis or in a
fixed period of time.
◦ Benefits – No amount of interest is charged and there is no need of documentation or
collateral required. It also helps in building trust and contacts in the market.
◦ Drawbacks – The amount of money involved in this is very limited and
comparatively less then sourcing funds from other sources (Garnaut, 2020). Also the
business entity can only take goods or services that the other company is providing
not money.
P4: Formation of a business plan that includes objectives, financial information and strategies
for achieving growth :
Business plan is a strategic plan that includes the goals and objectives of a compay and
strategies that it will use to achieve them in a fixed amount of pre-determined time duration. It is
presented in a written form (Sudarshan, 2020). All the important aspects of the business entity
are included in its business plan that forms a blue print for it. Several fixed elements that forms
the structure of a proper business plan are mentioned in the following :
 Vision, mission – The vision of Blighty is to become the best renowned cafe/
restaurant in UK together with building worldwide presence. Its mission is to
serve its customers with quality food.
 Stakeholders – Blighty does not have shareholder yet but people that are impacted
and invested in the project can be its customers, employees and suppliers.
 Capital funding – For diversifying, it need funding that can be sourced through
different types of sources that can be chosen according to its need. The source of
funding must be chosen efficiently. Some of the sources Blighty can use are :
◦ Bank loans – It is the most common type of source for funding in which
money is borrowed from authorised banks as business loans with low interest
rates.

◦ Investors – There are some investors in the market that look for opportunities
in which they can invest their money and earn passive income through it
without working. The company can render them some level of ownership in
their business and get funding from them.
 Operational plan – It is a strategic plan in which mostly all of the important
operations that are being practised or to be practised in the company are
mentioned with their effective ways.
 Resources plan – In this, all the resources such as tools and raw materials that are
used in the operations of the company are written in the amount and way in which
they are needed (Bonakdar and Audirac, 2021).
 Technology plan – All the technological machineries, innovations and
upgradation are mentioned in this plan.
 Risk factor – There are different ways and factors which provide risk to the
growth, profit or goodwill of the company. To analyse and maintain them
efficiently, these factors are mentioned in this plan.
 Marketing plans – Marketing is a complex process that includes various methods
of it. The related marketing methods and ways that can prove to be effective for
the company are written in this.
 Time frame – The time period which is pre determined in the plans for completion
of objectives are written in this.
The three forms of forecasting qualitative, time series analysis with proper projection
towards casual models-
Particular 30/12/20 (£) 30/12/120(£) 30/12/120 (£)
Put on technology
rate
15000 - -
Marketing event 9000 8000 6000
Advertisement
disbursement
6000 5600 5800

Collections 2000 4000 3000
Training charges 6500 8000 8500
Total Cost 38500 25600 23300
In above budgeted format, Checkout.com. create sustenance form by which organisation are
expanding business activities.
Cash Flow Statement
For the year ended 31st March,
2020
Particulars A
m
o
u
n
t
Cash flow from operating activities
Net profit before tax and extraordinary items 20,000
(+) Adjustment for
Interest on Debentures (10% of 3,00,000) 30,000
Loss on the sale of machinery 50,000 80,000
Operating profit before working capital changes 1,00,000
(-) Increase in Current assets and decrease in current liabilities
Increase in stock (30,000)
Increase in debtors (50,000)
Increase in bills receivable (10,000) (90,000)
Net cash flow in operating activities 10,000
Cash flow from investing activities
Proceeds from sale of fixed assets 60,000
Purchase of machinery (2,90,000)

Net cash used in investing activities (2,30,000)
Cash flow from financing activities
Proceeds from issue of equity shares 80,000
proceeds from issue of preferences shares 60,000
Redemption of debentures (10,000)
Dividend paid (70,000)
Interest paid on debentures (15,000)
Net cash flow from financing activities 45,000
Net decrease in cash and cash equivalents (1,75,000)
(+) Cash and cash equivalents at the beginning of period 2,50,000
Cash and cash equivalents at the end of period 75,000
The above cash flow is the Checkout.com. which enhanced their situation of accountability into
smaller association of assets Checkout.com. pays many types of taxes in this reporting year
P5: Options for exit or succession to a small business enterprise with their benefits and
drawbacks :
Through using several market approaches market situation can be scanned that can also
help in creasing exit plan for a company. Exit plan is a strategic framework that helps in
analysing all the important factors that can help a company in making its winding up effective.
When a company is winding up and closing its business enterprise that can be due to any reason,
an exit plan is formed to make the process easy and effective. The exit plan concludes the option
that the company is using for its closure. There are many different options available to a
company for exit. Some of the major exit or succession options are mentioned in the following
point with their benefits and drawbacks :
 Companies sold in the open market – The business entity gets sold in the market to any
other person, group of people or to any existing company. The amount of money in
return for the company gets negotiated and decided through considering various factors
such as – goodwill in the market, assets it is providing and many different related
elements. In this, the business entity does not stop or liquidate but it keeps on operating
in the same industry just the ownership gets changed (Hassan and et.al., 2019). Its
benefit is that the firm is in the operating condition, the new owner need not to find and

hire new employees as he/she can hire the employees that were already working in the
organisation who knows the work already. Its drawback is that the value in which it is
sold is generally low than its actual value if the owner was in hurry to sell it.
 Liquidation – This is most common process in which all the assets of a firm gets sold in
the market individually. These assets can be the company – building, machines,
furniture, vehicles, tools and many more. This increase the liquidity of the company that
increases its cash in hand and bank. Firstly, this money is used in paying the creditors.
The benefit is that the company can get free from all of its debts and laibilites. Its
drawback is that it is a hectic and time consuming process to sell all the assets
differently in the market.

CONCLUSION
From the above report it has been concluded that growth is crucial process for aching
success in life and in business. It is a continuous process that needs rapid and small steps without
getting stop. A company aspire growth in its process of business to increase the revenues. There
are many different ways in which growth factors are analysed for a business entity. For this
many different modals are used such as – pestle, BCG and porter's generic strategies. The small
and medium scaled companies are the ones that operate on a small and medium scale and are the
main sources for boosting economy. These are commonly found and are high in numbers. There
are various types of sources that are used by companies to collect funds that are needed in their
business. Business plan is strategic plan that is formed by companies in order to achieve growth.
It includes financials, objectives and many different related elements of a business. There are
different types of exit and succession options for small businesses.

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