Planning for Growth: Opportunities, Funding, and Strategic Objectives

This report explores growth opportunities, potential sources of funding, and strategic objectives for small businesses, using Caffe Nero as an example. It examines Porter's Generic Strategies and Ansoff Matrix, and evaluates the advantages and disadvantages of exit or succession for SMEs. The report also includes a business plan for growth that includes strategic objectives.

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Determine key consideration for examine growth opportunities by using Porter’s Generic
strategies......................................................................................................................................3
P2 Study opportunities for development by emphasing Ansoff Matrix......................................4
P3 Derive potential sources of funding available to businesses by describing its benefits and
drawbacks....................................................................................................................................5
P4 Establishing business plan for growth that includes strategic objectives...............................7
P5 Study exit or succession for SME'S by evaluating its advantages and disadvantages...........9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning for growth is refers as strategic organization practices through which owner of
organization plan and conducts in effective way to achieve organization objectives and goals
effectively (Chen and et.al, 2021). The report is based on Caffe Nero, which is situated in
London, UK and provide services of coffee to their customer in order to provide them better
quality of products for raising performance of organization. In this report will determine growth
opportunist for business by using Porter’s Generic framework and Ansoff Matrix for developing
organization. Also, study about their potential sources for financing by examine their benefits
and drawback that develop in business due to various circumstances. The business strategy is
taken into consideration for scaling organization and their exit, succession plan is also emphasize
in this for facilitating their advantages and disadvantages.
MAIN BODY
P1 Determine key consideration for examine growth opportunities by using Porter’s Generic
strategies
It is important for business to make sustainable growth in business to enhance their growth
and derives opportunities by earning profitability for business. In order to develop
opportunities there are different ways that help Caffe Nero shop to expands their business.
By using new technologies and make their products innovative helps organization to attract
more and more customer towards organization in respective manner. This is explained
below;
Capabilities- In regard to organization, it is essential for business to determine their
efficiency and derives capabilities in effective manner. By implementing into business plan
helps business to grow and raise their performance in productive manner by implementing
their skills and knowledge in organization for enhance business. To boost organization
productivity and profitability for organization helps business to achieve their goals and
objectives of organization effectively.
Core Competencies- By making effective use of technology and satisfies customer needs,
helps organization to survive in competitive world (Ali and Anwar, 2021). Also, derives
competitive advantage to business by emphasizing competency of business by performing
their function in effective manner and compete with their rivals by satisfying customer and
attracts more consumers towards their coffee shop.

Porter’s Generic Strategies
The framework helps business to grow and expands their organization, by implementing in
their coffee shop boost organization productivity and efficiency (Deshpande, 2021). In
accordance o enhance competitive benefits, it includes three strategies under this. That are
explained below;
Cost Leadership- In terms of organization, this strategy helps business to raise their
profitability by declining cost and enhance market share in effective manner. By
implementing this strategy helps business to expand their cost efficiency.
Differentiation strategy- In context to organization, make their products and services
more innovative and attractive that helps business to differentiate their products with other
competitors (Suartini, 2021). The differentiation helps in attracting more customer towards
organization by innovating and developing products into creative form that boost
organization productivity.
Focus Strategy- In respond to Caffe Nero, by focusing on particular sector or market of
business helps organization to growth their business and achieves sustainability growth of
business and attain profitability of business.
Differentiation focus strategy- By estimating market sector of business by differentiation
focusing on organization, helps business to growth their competitive spirit and enhance
their organization performance in effective manner to build organization profitability.
P2 Study opportunities for development by emphasing Ansoff Matrix
The model of Ansoff Vector Matrix helps business to growth and derive opportunities for
organization in effective manner. This approach is diversified by different factors that comes
under this. In order to derive opportunities for Caffe Nero by implementing this approaches
boost organization performance and productivity. It is determine below;
Market Penetration- In regard to organization, it determines by aiming at raising sales of
existing products to existing sector (Mukangai and Murigi, 2021). Through this developing their
market by focusing on raising sales of organization in effective manner. By this penetration of
market helps Caffe Nero to growth their business and emphasize opportunities for organization
in perspective manner.
Product Development- The business aiming on introducing new goods to an existing area of
organization that helps in enhancing product through which attracts customer and increase their

productivity. Through product develops organization productivity as it helps business to grow
their firm by making their product attractive and innovative by which more and more customer
attracts towards organization.
Market Development- In order to organization, this helps in deriving opportunities for
organization as plan focuses on coming at new sector by existing products through diversified
nature that boost organization performance and develops market sector of business (Jintana,
Sopadang and Ramingwong, 2021). The market develops opportunities for business by aiming at
sectors and existing goods boost organization productivity and efficiency.
Diversification- By entering into new sector with new goods, establishes growth for
organization of Caffe Nero by deriving opportunities for their firm by considering new market
and products for expansion of business in respective manner (Sáez and et.al, 2021). Diversified
products and services raise organization profitability through facilitating in productive approach
for business.
P3 Derive potential sources of funding available to businesses by describing its benefits and
drawbacks
There are several derivation for financing in accordance to make business services and goods in
efficient manner to attain aims and goals of company. Also, expands their growth in organization
by implementing financing that maintained potentiality in sector of market. In order to
determining their benefits and drawbacks for facilitating their potentiality in sector. They are;
Retained Earnings- Organization earn profitability by selling its goods and services in order to
produce costs (Huey and et.al, 2021). It is useful source of finance for any organization that
derive in order to get cost for company. In regard to Caffe Nero, this may use retained earnings
for gathering cost, in order to expand their market or business for enhance business for them.
Advantages-
 It raise stock value by keeping organization earnings that boost balance sheet that
influence to shareholder equity.
 This provides funds for development that determine major benefits for firm through
gathering source of finance for research and growth.
 By using this keys for organization, may decline money productivity by issuing external
equity, also carried out losses that arise in under-pricing.

Disadvantages-
 It builds to above capitalization because if organization uses more to this can create
insufficient source of funds.
 This develops dissatisfaction for investor that doesn't like to use retained profits as source
of financing in other situations which not satisfied stakeholder due to which are not able
to focus on their work.
 The cost of opportunity is up that is relatively foregone because of equity shareholders
that emphasize disadvantage for business. As it may create negative influence on it that is
not good for coffee shop.
Debt capital- In context to firm, it can borrow money that may be done by taking loan from
bank on privately basis and may take debt issue by publicly whatever they find more suitable for
their organization (Alabousi and et.al, 2021). Though, it define as gathering funds from
distinctive sources in different manners for small medium enterprise to grow their business in
effective manner.
Benefits-
 It has major benefit which is from the source bank not involve in firm, they give all right
to take decision from their own whichever they determines as suitable for them.
 This will provide advantage in tax, amount that organization pay in interest is tax-
deductible by declining net obligation efficiently.
 By facilitating this strategy gets easier for business in order to knowing in advance about
which interest or dividend pay at each month that helps in simplifying budget for end of
every month.
Drawbacks-
 Debt financing has drawback that it is relevance to discipline as it is not aiming towards
their work by making repayment on time which can create issue for potential investor.
 It leads towards providing collateral to investor in respond to organization that develops
issue for firm from which their development not arise and occurs loss.
 This creates more costly for business due to many things that needs for financing of
Caffe Nero in terms to that consumes high cost which lead towards creating issues for
debt capital.

Equity Capital- It is refers as business, can raise their capital through trading off property stick
in accordance of dividend to investors who become partners of organization. This increase
capital even when the first one is not getting any cost (Sudjatmoko and Suprapto, 2021). Also,
emphasize by considering more money for organization. In terms to Caffe Nero, they may help
in raising capital of it’s by trading of distinctive services for business by examine their benefits
and drawbacks are defined below;
Advantages-
 In accordance to it fixed money not changed due to this, it has no fixed payment
requirements from this organization opportunities are needed.
 It provides long time of financing by focusing on future earnings and raising value of
organization in order to make comparison with return on investment.
 This derives no obligation to make payments in relevance to interests in accordance to
repay that not needed in it that creates benefits for them.
Disadvantages-
 Major disadvantage of this, it not provide any profits or development for organization
that are promised for equity investors.
 In regards to this, there are legal obligations related to government that facilitate return
get by an individual through investor that derives weaknesses for business and become
challenge for under growth of organization.
P4 Establishing business plan for growth that includes strategic objectives
The business plan develops opportunities for organization by expansion of firm creates or
may develop vision and mission, strategic growth relevance to this that helps in making proper
plan for business (Sharma and Sehrawat, 2021). Caffe Nero vision is to become world's coffee
shop brand in order to determine their expansion for conducting huge brand that attracts more
customer and enhance business growth. In accordance to make its strategy for development of
organization have proper aim on it, to derive suitable culture for coffee shop that attain
consumer. Its culture emphasize collaboration, creativeness and allows organization to earns
profitability and productivity of business.
The goal and objectives of this organization is to become globally certified number one brand by
raising name from which more consumers attract toward their organization. Hence, in order to
enhance their organization and growth for future.

Mission- Its main aim on secure world from coffee of mediocre, for determining as a reason for
being a purpose of getting right description of organization.
Values- Organization follows principles and ethics in order to operate business by lighting their
values for Caffe Nero.
A business plan is playing crucial role in allocation of resources throughout organization that
helps in getting attaining financing for their strategic procedure in accordance to derive
development in their firm. By market analysis of coffee shop in order to make strategies for
organization growth in way to attain aims of Caffe Nero. To boost organization productivity may
arise by innovating and developing products into new form helps business to grow and expands
organization respectively. Also, gathering funds for organization in accordance to do so fulfill all
needs for growth of Caffe Nero from various ways such as bank loan preferred for paying in
product development.
Strategic objectives for scaling up business- They are given in order to make strategies
for growing their organization in accordance to attain goals and targets of firm (van Boerdonk,
Krikke and Lambrechts, 2021). By scaling these many elements determined for development of
strategic of coffee shop that are determined below;
Expansion renewals- By raising rates of renewal, helps in rising growth of top sectors and bases
of revenue from which business grow. For raising organization profitability in accordance to
derive sustainable growth for organization.
Hire potential employees- To scaling up coffee business, it has to hire more workers from
which get good peoples in their business from which get ideas, creativeness from employees who
work in organization. This helps in leading better strategies for Caffe Nero, in order to
developing products in distinctive ways by which more peoples are attracted towards coffee
shop, builds profitability for business. In order to this, hiring potential employees derive
development in product with needs of market in which products are innovated.
Merge possession of goods management with supply delivery- This plans helps in maintaining
good procedure through which delivery services by booking through online mode. It helps in
expanding organization by offering this accommodation to consumer. As they find better source
for them without going anywhere they get their coffee at their place.
Collaboration- It provides various facilities by tie up with other organization, in order to this
funds get divided and all financing is not provided by them. This may help in broaden

organization by which develop infrastructure, structure of firm in accordance to do so business
enhance, network also builds through this firm established by conducting collaboration with
other peoples. In order to that helps in building connectivity and make effective communication
for making sustainable growth of business in productive manner.
Frame good team of workers- By creating effective team of employees in Caffe Nero,
productivity is observed, as they provide good knowledge about coffee (Pappas and et.al, 2021).
This help in achieving aims and objectives of organization towards attaining goals in effective
manner. They know how to deal with consumer, has efficient mind who helps in making
productivity of organization. Also, enhancement and growth is determined by maintaining plan
for coffee shop for raising in order to enhance consumer.
These strategic objectives of business helps in forming good scale for business by better planning
takes place in firm and conducts productivity for organization in effective manner.
P5 Study exit or succession for SME'S by evaluating its advantages and disadvantages
Exit for small business- When organization is facing losses in order to this they exit from firm
by closing their business in order to do, so they get out from issues that faced by them. It occurs
when owner of firm choose to end his engagement with organization (Ukairo, Igwesi and Ijeh,
2021). This arise at time of exit is emphasize by trade owner that stick in business for
maintaining legacy of family.
Benefits-
 It gives organization to make strategy for future from existing of firm which helps in
deriving plan for it by providing business, to other shareholder.
 This helps in determining sales time for organization of coffee shop by accurate period of
time for production in their mind in order to focusing on expansion of business in
productive manner.
 When business with exit plan helps in deriving more productive approach to buyers by
determining vision and mission of organization.
Drawbacks-
 It has major drawback that it allowance more in expenses which create issues for them
due to affecting their company and in normal life they also feel pressure in distinctive
circumstances.

 They feels terrified by observing that consumer decreases, their reputation and whole
organization get affected because of it (Valenza, Caputo and Calabrò, 2021). In order to
that they are not able to think about their own things that create disadvantage for them.
 By running organization so long then due to find exists develops more difficult situation
for business in accordance to again continuing business in same manner because of this
leads to dissatisfaction.
 Also, by making connectivity with others may destroy the business in various situations
that impact on relationship of two partners that affect growth of organization.
The advantages and disadvantages of existence in small business derives or given benefits in
some aspects by distinctive elements that distinguish it. In order to this, they finds good and bad
for organization in accordance to this not deriving sustainability in workplace.
Succession for small medium organization- It is created for plan with reason to run business
when get tired from it and observe that these periods is for relaxing. In order to this, it is a
procedure of controlling towards organization by others (Civelek and et.al, 2021). This ensure
organization runs in continuous way without getting influence that emphasize by operating
productively without having any involvement of people who are doing ownership of that sectors.
Hence, develops strategic of succession in accordance to make sustainability in their
environment and maintain efficiency in market without getting influence by anything. It has
distinctive benefits and drawbacks which is explained below;
Advantages-
 This helps in conducting security of organization by considering succession, it assure
business constantly operates long connectivity whenever owner gone. It defines that
coffee shop has few peoples who are feasible for taken over several part of job.
 It signifies qualified managers who derive creative ideas for successive in organization,
by which business is in condition to determining that which post is essential to
organization future recognition.
 Also, encourage towards guiding in direction of training and learning through which
employees development is derived in organization by getting more feasible and become
productive for their company. By which evaluate that peoples are capable to perform
specific job in which they provide training for their development in productiveness of
market.

Disadvantages-
 Its major drawback is that drain resources by which impact on organization in order to
this, reserves gets destroyed and effect on their efficiency in market.
 In relevance to the plans which is made for it are not able to remain flexibility by which
whenever times changes same strategy become not useful for them.
 This leads towards by impact on coffee shop through declining their consumers and they
observe organization not relevant for them.
CONCLUSION
The report has been concluded about coffee shop by making effective strategy for growth in
regard to achieving goals and aims of organization. The study has been examine development
opportunities for firm by justifying content with Caffe Nero, in order to emphasize Porter’s
Generic Strategic framework. Also, has been determined opportunities for growth of business by
using Ansoff growth vector matrix to develop small business. By assessing potential sources for
funding by considering their benefits and drawbacks for every source. It will justify by drawing
strategies of organization for enhancement that consist of financial information and strategic
objectives for scaling up firm. In this report has been summarize of exit and succession for
growing business by facilitating through their benefits and drawbacks. Further, by the study will
take place about development of business by taking corrective measure through innovating and
creating their products and services for attracting more customer and by effective plan helps
business to grow in effective manner.

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