Planning for Growth

PLANNING FOR
GROWTH

Table of Content
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Key Considerations For Growth Opportunities...........................................................................1
Ansoff Matrix for Growth ...........................................................................................................3
LO 2.................................................................................................................................................5
Potential Sources of Funding.......................................................................................................5
LO 3.................................................................................................................................................6
Business Plan...............................................................................................................................6
LO4..................................................................................................................................................9
Exit and Succession Options........................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning for growth is plan of action of business which help them to understand al;l the
factors while analysing the strengths and weakness to attain opportunities to grow effectively. It
is the integration of different factors which helps the business to grow and expand in the new
market effectively (Van Niekerk and et.al., 2016). This also helps business to compete in the
market due to change in the market trends and achieve core competency effectively. Growth
planning helps the organization to increase revenue and size of business by improving internal
factors like human resource, capital. Products and services plays an important role in business
growth as it helps to increase sales and profit margins which gives potential for business to invest
in expansion. This report provides different factors and drivers for growth of Prufrock a small
Coffee shop which is situated in London, UK. Report also discusses Ansoff matrix growth
analysis which helps to understand all the opportunities to increase the potential of small
business. In addition, report highlights the merits and drawbacks of types of funding which
Prufrock coffee house need to adapt to increase the potential and returns and it discusses the
business strategic plan for business and exit plan to reduce risk of losses in the market effectively.
LO 1
Key Considerations For Growth Opportunities
Small businesses has to analyse different factors to consider effective growth
opportunities and increase their potential in the market effectively. It is very essential for the
business to understand the opportunities in order to integrate strengths with them and convert
weaknesses into strengths effectively. With the use of different factors this helps to understand
the growth opportunities and improve the quality of products and services and satisfying
customers and increase customers base of Prufrock coffee shop effectively.
BCG Matrix
BCG matrix is the tool which is used identified the uniqueness products of the business
and improve the quality of products effectively (Mishra and et.al., 2019). This tool helps business
to formulate strategic planning for long term by analysing the strength of products effectively.
This matrix helps the business to understand the products which are more potential in investing
and gaining more profits.
Dogs
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This quadrant of matrix analyses the products which are having low growth opportunities
and low market share. Prufrock Coffee shop also has analyses that the use of plastic mugs which
is very ineffective for customers who are having coffee at the cafe and it cools downs very easily
and reduce the efficiency of products. The demand of plastic cups has also decreased which
impacted the sales of coffee of Prufrock cafe negatively.
Cash Cows
Cash cows quadrant includes all the products which are having high market share and low
growth market opportunities (Tian, Ge and Li, 2017). Prufrock cafe has coffee which is cash
products and also has the potential to increase the market share and profit margins of the
company. As the company has the uniqueness In its taste which can improve the customers base
and sales of cafe to grow in market effectively.
Question Marks
This quadrant of matrix analyses high growth market products which have low market
share. Prufrock analyses that eateries have the high potential to grow in market but due to high
competition its market share is low and impacting the sales of cafe negatively.
Stars
This quadrant helps to understand the products which have high market share in high
growth market. Cafe has customer friendly environment and high skilled labour which helps the
Prufrock to increase their sales effectively. Cappuccino is also star product of Prufrock as it
provides better sales and attract more customers due tom its tastes and quality effectively.
Mckinsey Matrix
This matrix is analysis tool which helps to ensure effective investment opportunities for
business growth and expansion in the market effectively. This is very similar to BCG matrix and
also has very effective in understanding the product portfolio of the business effectively.
Invest
These are the quadrants which are under-investment boxes in the matrix and also has the
potential to grow effectively. This box helps to ensure the high return in long run of the business
to improve the market share. Prufrock needs to analyse that if the company is generating enough
profits margins and comes under this quadrant than they have the potential to invest in market to
grow and expand effectively (Agyemang and Silva, 2019). Cafe also analyses that it is very
essential for business to understand the products and services with the help of BCG matrix to gain
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