Planning for Growth: Key Considerations for Evaluating Growth Opportunities

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Analyze key considerations for evaluating growth opportunities..........................................3
P2/M1..........................................................................................................................................4
Ansoff growth matrix..................................................................................................................4
D1................................................................................................................................................6
P3.................................................................................................................................................6
M2/D2..........................................................................................................................................8
P4.................................................................................................................................................8
Balance Sheet.............................................................................................................................11
Resources Required...................................................................................................................12
Resources Available..................................................................................................................12
HR Plan......................................................................................................................................13
Operations plan..........................................................................................................................13
P5...............................................................................................................................................14
Business exist strategy...............................................................................................................14
M4/D4........................................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Planning for growth is very necessary for all the business irrespective of their sizes as it
facilitates assessment of how a business is performing currently along with the identification of
key opportunistic areas that could assist in expanding business operations in the future. In this
report, with respect to CafePod Coffee Co., the analysis of key considerations that must be
considered by this SME business while evaluating growth opportunities will be done. CafePod is
a small business acting as the provider of flavoured and several varieties of coffee in the region
of London, England, United Kingdom. It sells coffee related products both through online and
offline mode (in its coffee stores). Further, the various methods through which the small business
can access funding will be discussed along with highlighting the suitability of different methods
in different situations. Then, business plan would be developed for CafePod in order to
communicate how this business could scale up its operations. At last, the discussion will be done
regarding how small business can exit from the market and implications of each options.
MAIN BODY
P1 Analyze key considerations for evaluating growth opportunities
PESTLE:
It is known as strategic tool that helps the organization in identifying the external factors that
can create positive and negative effect on the performance of firm.
Political: This factor is consisting of policies which has been implemented by government in
order to maintain the business in competitive market. Along with this, café Pod coffee has faced
negative outcomes due to restriction on trade policy which has been implemented by government
of UK due to pandemic (Wichmann and et.al., 2022). In addition to this, policy like lockdown
has also affected performance of company as café was closed for several months.
Economical: The company has established their business in UK which have good economic
condition and it has allowed firm to earn good revenue. Along with this, when company operates
in goo GDP rate country it is able to enhance their business as customer rate of income is also
high and it tends to spend on luxury services.
Social: Café Pod coffee is already making products and services according to customer taste and
preferences which has helped in improving profit and attracting large consumers. Moreover,

organization is targeting customer of young and middle age in order to increase their sales. In
addition to this, company can offer cheaper products which is key socio cultural challenge that
company will face when it will expand its consumer base. It is also targeting audience with high
and middle level income.
Technological: As Cafe Pod Coffee is small organization it need to make use of digital
marketing in order to increase the sales by creating brand awareness in the competitive market
area (Al Badi, 2018). Although in store it can make use of digital products for recording bills and
good equipment’s for making products.
Legal:
The organization is following company law act and employment in order to keep their
organization safe from false litigation as it damage brand name.
Economical: The company is following CSR policies in order to give their contribution towards
society and to attract customer.
The company have competitive advantage company have is making use of digital marketing in
order to increase their sales.
P2/M1
Ansoff growth matrix
Market Development: To make use of different channels in order to increase the sales of the
company. The advantage of this method is increase in customer base as well as creating
awareness in market. However, some of the disadvantage is it require more capital investment.
Product Development: This strategy mainly focusses on introducing innovative product in new
market area. The advantage of this strategy is it allow in increasing the market share. Moreover,
disadvantage is high competition.
Diversification: This is known coming up with totally new product and in new area of market.
The advantage is it allow in attracting new customer and boost brand image. Moreover,
disadvantage is it increase the market risk and reduce the quality.
This strategic tools helps the company in identifying the opportunities to grow sales by
either developing new products and services, entering into new market area. Along with this, it
is one of the most used widely marketing model that evaluate opportunities for organization.
It is to be recommended to firm to make use of Market penetration in order to expand their
business in positive way. It expands into local cities of UK so that it can attract more customer as