Planning for Growth: Analysis, Evaluation, and Business Plan for The Little One Coffee Shop

Unit 42
Planning for
Growth
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INTRODUCTION...........................................................................................................................3
Part 1................................................................................................................................................3
Analysis of evaluation of growth opportunities.....................................................................3
Evaluation of growth opportunities by usage of Ansoff's growth vector matrix...................7
Assessment of potential sources of funding...........................................................................8
Business plan for growth along with financial information and strategic objectives for scaling
up a business...........................................................................................................................9
Part 2..............................................................................................................................................16
Assessment of exit or succession options for a small business along with their benefits and
drawbacks.............................................................................................................................16
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................18
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INTRODUCTION
Group planning is a strategic business activity which allow business owners to conduct
planning and tracking growth of organisation in order to increase revenue. Planning benefits
business organisation to allocate resources in order to adopt changes that are prevailing in
industry that can be driven by different competitors or other factors (Addae-Korankye and
Aryee, 2021). In order to perform business operations in a systematic manner it is important for
organisation to develop an effective business plan in order to enhance growth in market. A
growth plan mainly defines as a systematic record for business future which set goals and targets,
strategies and tactics to accomplish them. In order to successfully expand business activities in
national or international market it is essential for an organisation to develop plan while
emphasizing upon certain aspects like resources, services, products and cost. Growth planning
allow organisation to have an overview of the manner in which business is performing as a
whole and prioritise key areas of growth in order to make further efforts.
Present report has been conducted on The Little One Coffee Shop which is offering
qualitative products and services to consumers. This Cafe was established in the year 2009 by
Ben & Lisa. This coffee shop offers crepes and mouth tempting coffee and muffins to
consumers. Report includes growth opportunity, business plan, sources of funds for
organisational growth. Along with this succession and exit option for small business is also being
discussed in present form.
Part 1
Analysis of evaluation of growth opportunities.
Small business organisations mainly face number of challenges to grab effective growth
opportunities in competitive market segments. In this it is essential for management of
organisation to develop effective strategies and further make plan for long-term survival and
attract market opportunity. In terms with The Little One Coffee Shop, this firm is operating its
business services with limited number of workers but have effectual plan and strategy. However,
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in order to assure growth and success it is essential to consider different factors which is
mentioned below:
Competitive Advantages
It is defined as a condition in which organisation prevailing in business environment in
respective industrial sector provide same or similar form of products and services to consumers
in lower pricing segment in order to influence large base of customer. In this The Little One
Coffee Shop management have responsibilities to formulate planning strategies effectively to
ensure higher competitiveness (AHMAD and AHMAD, 2021). With the help of Porter generic
strategy model The Little One Coffee Shop can attain competition as foundation for growth:
Resources and capabilities
 Main source of The Little One coffee shop is that it has highly talented and capable
employees.
 Along with this, they offer high quality products and services as compared to other rivals.
 However, in terms with weakness company invest less of digital media marketing
comparatively to other competitors.
Porters Generic Model:
Cost Leadership:
With the help of this strategy organisation can develop their position within market
segment by offering services at lower rate. In this The Little One Coffee Shop can undertake use
of methods as well as tricks to conduct market analysis and target audience in order to identify
their actual needs and demand. In this case by offering price of commodities in low range with
high quality will allow organisation to capture the attention of consumers. With the help of this
strategy organisation can have the opportunity for increase in market share as well as size which
help them to gain more competitive than other rivals.
Differentiation Leadership:
The goods and services are furnished by The Little One Coffee Shop is incomparable in
context with quality. This feature in their products allow coffee shop to set consumers strategies.
This allows organisation to bring innovative features in their services as well as products in order
to enter in a market segment (Baporikar, 2021). For instance, The Little One Coffee Shop with
creativity in their services and offering coffee with healthy options such as low calory can
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