Planning for Growth - CafePod Coffee Co

Planning for Growth
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Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1 determine the key considerations for evaluating the growth opportunities and also given the
justification on the behalf of consideration within the CafePod Coffee Co................................3
P2 Discuss about the opportunities for growth by using Ansoff’s growth vector matrix...........5
P3 Understand the different potential source of funding which available for the business and
also identify benefits and drawback of each source....................................................................6
PART 2............................................................................................................................................8
P4 Develop the business plan for the growth that include financial information and strategic
objective for scaling up the business...........................................................................................8
P5 Evaluate the succession and exit option for the small business and also determine benefits
or drawback of each option..........................................................................................................9
REFERENCES..............................................................................................................................13
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INTRODUCTION
Growth planning is basically the strategic for enterprise activity that enables the owner to
plan and track all the information of growth and development. it allows the enterprise to allocate
an appropriate resource towards the development and adopt for changing the industry driven
through digital technology and other differentiate competitors.
CafePod Coffee Co is based on the small scale business that provide the exciting coffer for
the adventurous coffee drinker. It provides many products to their customer for selecting coffee
drinking products.
This report will discuss about the different types of key considerations in the small
business to evaluate the growth opportunities. It will describe the growth opportunities by using
Ansoff’s matrix in the business. Furthermore, this documentation will understand the variety of
method that can assess the potential sources of funding which available for the business and also
identify its drawback or benefits. Moreover, it will design or develop the business plan for
growth that include strategic objective and financial information of scaling up business.
PART 1
P1 determine the key considerations for evaluating the growth opportunities and also given the
justification on the behalf of consideration within the CafePod Coffee Co.
It is important to analyse the key considerations that help for business to maintain their position
and find ways of growth and development. CafePod Coffee Co must be focused towards the
business growth so that they can measure the enterprise activities for looking the statistics (Asmi,
Salama and Ahmad, 2018).
The Small business is used the Porter’s five forces framework for analysing the
competition of enterprise in growth and development. It also draws from the economics that
derive into five forces or identify the competition level and its intensity.
Threat of New entrants
The Cafepod Coffee Limited has a moderate threat of new entrance and they have limited
barriers. Its initial investment to start with the minimum and the level of firm must be limited. It
successful enterprises remain start form low to moderate. CafePod coffee co firm has wanted to
grabbed the large market share which based on their product quality and efficiency but still the
cost of switching being low. The organization is planning to reduce the prices of products in
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market so that many customers are attracted towards their services. Based on the product quality,
CafePod Coffee firm has access the best quality of coffee products and supply in different areas.
Threat of Substitutes
The Cafepod Coffee co. can view the high threats in the substitutes products and services.
There are multiple retails chain that offering the different coffee products. In this business, it
easily available the substitutes and company gain the more competitive advantage by using
consumer’s satisfaction strategy (Bridge and Dodds, 2018). In this way, it is maintaining the trust
and loyalty towards the brands. On the other hand, the cost of switching is negligible.
Bargaining Power of Buyer
The bargaining power of buyer become low to moderate because the individual purchases
were small and single buyer doesn’t hold the enough influences. Coffee firm must be
diversifying in the global marketplace. The consumers are finding the quality sensitive and
willing to pay more money for the premium items. They are watching the latest trends and move
towards the another product.
Bargaining Power of Supplier
The bargaining power of supplier is low because it depends on the quality of product and
services. The organization is finding the supplier those who will fulfil the need and expectation
of customers. Cafepod Coffee Co. Firm contract with the supplier and maintain the structure pf
business according to the demand of consumer. Even CafePod Coffee firm acknowledge the
significance of having the efficient supplier that hold the entire business performance in proper
manner.
Competitive rivalry
The CafePod Coffee Co faces the various challenges regarding the competition from another
enterprise. There are various small businesses establish their branches in global market to
increase the level of competition in marketplace (Gounaridis, Chorianopoulos and Koukoulas,
2018). In this way, the organization has planning the strategic to perform action and dealing with
the rivalry. CafePod coffee has designed the effective strategies that handle the overall
competitive pressure in the organization.
Justification:
It has been justified that Porter’s five forces help the business to analyse their overall
competition level in global world. It useful for analysing the level of business and how they can
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improve in proper manner. Porter’s five forces are the important key considerations in the
CafePod Coffee Co. Firm that can analyse their strategy for maintain and controlling the level of
competitive.
P2 Discuss about the opportunities for growth by using Ansoff’s growth vector matrix.
The Ansoff’s Matrix is the most common approach in terms of product or market matrix that can
help to identify the risk of particular strategy related growth opportunities. It may expose the
strategy from one level to another (Kemp, 2018). It is based on the strategic tool and platform
that connect with the marketing strategy for providing the right directions. It offering the
different types of growth opportunities that include diversification, market penetration, market
and product development.
Market Penetration
CafePod Coffee firm is selling the may products to their existing consumers those who
are available in market. The business requires to find the better opportunities to increase the
consumer loyalty. It helps to develop the life time values of clients. It might improve the process
of business which make easier for consumer, the organization has extending their enterprise in
global world. They also make some adjustment for long term improvement.
Market development
It can develop the new approach in the business so that new potential consumer attracts
towards their existing products and services. Many new clients must be defined through the
geographic area and location. When the firm sells the new products in market so that it requires
to use the new campaigns for promoting and selling the product through new channel. It helping
to target the potential consumers. It is an essential concept whether support the demand of
customer in global marketplace.
Product development
CafePod coffee Co. is developing the new item and variations in the services to sell
existing consumers. The organization must be adopting the product those who will belong to the
long lasting. They also took at another way to enhance the item capability and improve in
effective manner. A new product development always influences the consumer towards the
brand. In this way, it easily identifies the consumer feedback regarding product and services.
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Diversification
It is considered to the high risk in the business strategy while selling the new products in
global market. CafePod Coffee Co has planning an effective marketing strategic for helping the
enterprise increases the productivity and profitability (Leick and Lang, 2018). Diversification is
another factor that can work in effective way if the enterprise already has an accurate foundation
in different places. Cafepod Coffee must be adopted the new geographic areas to diversify their
business global world. In this way, it will increase the growth opportunities of business
effectively and efficiently.
P3 Understand the different potential source of funding which available for the business and also
identify benefits and drawback of each source.
The CafePod Coffee Co is based on the small business that requires the financing which needed
to develop the business up to the productivity and profitability. It is to be considered according to
size and type of business (Lombard and et.al., 2019). For CafePod Coffee business can use the
different sources that available in marketplace.
Small business administration Loan
This type of loan has provided by Government that help the CafePod Coffee business to
develop their organization. It helping the enterprise to obtain the capital and ensuring 23%
government contracts that awarded to the firm. It is type of guarantor on the local of small
business to develop their business all over the world.
Benefits:
 The SBA loan is treating in proper manner to increase the more chances of receiving loan
to the banks.
 It also useful to improve their relationship among borrowers as well as lenders.
Drawback
 Sometimes, they provide the specific strict guidelines when the SBA look out the
information from past years. In this way, it is difficult to obtain the new companies.
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Angel Investors
This type of investor is based on the individual those who will give the financing of
Cafepod Coffee entrepreneur. It also exchanges the equity in the business as per the size of
investment but it might be less than $1 Million (McLean, 2019). They often time work on the
specific organized groups and screen their deals and investment. These investors are serious
about the funding to identify all necessary information about the business.
Benefits:
 They have usually experience in the business to offer the specific guidance and also
introduce their network.
 It is flexible in terms of enterprise agreements.
Drawback:
 The investor always forced to give up some degree of control over the organization
because of the high risk related growth and development.
Venture Capital
These are the investors those who will put in the amount of money in the exchange for
equity in the enterprises and also get return when the organization goes on the public. It is based
on the money and invest in the business.
Benefits:
 It is not only providing the funding but also give offer in the expertise that help to
develop the business across the world.
 This funding provides the credibility of business and also open the other door to connect
with the individuals.
Drawback:
 It may force to give the large amount of business because of their significant amount of
money or funding.
Family and Friends
The owner of CafePod coffee request to their friends and family members for doing help
regarding funds in the business. It is possible when the relationships must be stronger. It provides
the feasibility on the business to kick of operations through amount of funding.
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Benefits:
 It is the faster processing of funding and uses as a flexible technique for payment.
Drawback:
 Family and friend give the funding without having the viability of enterprises plan.
 It brings nothing to the business.
PART 2
P4 Develop the business plan for the growth that include financial information and strategic
objective for scaling up the business.
A Business plan is a type of specific role in the organization that can allocate the resources in
proper manner. It useful for managing and controlling the new funds on the basis of strategy
documentation (Sell and et.al., 2018). It always reveals the enterprises task that how can use the
loan and investment. CafePod Coffee Firm must be used the ongoing planning to monitor
objectives of business and it can possible through Business plan.
Company Description: CafePod Coffee Co Firm is based on the UK that provide the different
types of coffee products in marketplace. It is an independent coffee company which are situated
in the south London by using the simple idea. It is running the business with the competitive
spirit and single ambitions.
Vision: The vision of Cafepod firm is to build their coffee product and launch in the global
marketplace. It is the most challenging for increasing the product and services in global world.
It is basic vision of business to improve the quality of increasing the production and sales.
Mission: Main vision of cafepod business to hire new signals that help for increasing growth
and development. This ambition is accelerating its business towards the growth.
Tactics and Actions: It is important part of CafePod Coffee Co business to use different tactics
that help for managing and controlling the business operations. It useful for increasing the
productivity and profitability in marketplace. There are some important tactics applicable:
 Use the signals which help to track all the email communication effectively and
efficiently.
 Engage with the large number of new conversation and expand their networks.
 Planning an effective strategy for completing the business project on specific deadline.
Operational information: An operational administration of CafePod coffee has been created
the high level of efficiency within the business operations. It always focused on the materials
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and labour that convert into products or services as effectively. It helps to increase the
productivity and profitability in marketplace.
Financial Information: CafePod Coffee Co has recorded the financial activities of business. it
useful for identifying the position of business, entity and person. It should be including the
liabilities, equity and assets. It provides the loss and profit report of company by employee.
CafePod Coffee co firm always keep secure the records regarding the financial.
P5 Evaluate the succession and exit option for the small business and also determine benefits or
drawback of each option.
Small business must be requiring the effective strategies planning which help for increasing the
demand of business across the world. They must be used the policies and procedures in the
organization to improve the quality of services (WannMing, 2019). The owner of CafePod coffee
business must be exits the business because of two reasons: failure and success.
These are important part of business that can develop the business or minimize the quality of
production level in global marketplace. Business may failure in the internal and external ways:
Internal cause of business failure:
Poor Management: It is the most common factor of business failure because it mainly
refers the situation and condition where the owner is not able to understand the current issues. It
will directly impact on the business operations and functions. In this way, it is directly impacts
on the organization in terms of growth and development. Owner of CafePod Coffee has tried to
exit the business.
Unbalance the source of finance: when the owner relies the loan to the finance its business
operations, it has been increased a lot of pressure on the cash flow. It also occurs the risk on the
capital which are not enough and suffer various type of problems and issues.
External Cause of business failure
Environmental protection: when the law passed by government for the purpose to
protect the environment as well as society. It effects on the business process because it has
generated the waste that can effect on the environment through toxics. It should be requiring the
extra cost for maintain the proper disposal of waste material.
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Poor Economic environment: The business must be operating the poor economic
environment that may develop the more difficulties. There are various types of economic
recession may cause the business and also increase the chances of closure.
Benefits:
 It benefits of exist option to give idea shape of business that support to increase the value
of organization in global marketplace.
 Ideally, it should be moved towards the success of business because of family members
and management.
 It also manages the existing business by using change the policies and procedures of
organization.
Drawback:
 The Acquisition is not properly dependable to the exit because there are limited peoples
attracted towards the business. apart from that there are less competitors interested
towards the product and services. In this way, it may effect on the business production
and sales.
 The organization can lose their real identity in global market because the business has
decided to absorb the acquired firm that will be throwing the previous name and
uniqueness.
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Succession Options:
Succession planning is a type of process that help for identifying and developing the
leaders those who will have capabilities to handle the business operations and functions. The
CafePod Coffee requires the succession planning to increase the demand of experienced
employees those who are capable to understand the business role in proper manner.
Exit strategies:
CafePod Coffee business needs some exit strategy planning that must follow the
predictable approach and patterns. It must be identifying the specific vision of business which
help to increase the productivity and profitability in global marketplace. Exist strategies are used
some common methods:
Transferring the enterprises to another family members- It has required to identify an
appropriate candidate those who will manage the business efficiently and effectively. It depends
on the business process and its complexity (McLean, 2019).
Selling the business- The CafePod Coffee always prepared for sales when the owner can
increase her/ his return. It is simply change the business and also putting it on the market for the
purpose of sales to reduce the outcome of return. It has required the sales for long term strategic
management that can produce the indication of growth and development.
Employee and management buyouts- It is also important option for Cafepod Coffee
owner if they don’t have much employee for the purpose of succession. It always concerned with
continuous improving the culture and environment of business. The organization is usually
implemented the legal aspects to maintain the enterprise activities.
Benefits:
 It is great opportunities for business to transfer the information from one person to
another.
 It always helps for maintain the corporate knowledge of business in global environment.
Drawback:
 There will be negatively impact on the team members and they are not chosen their
specific role. It has more chances of confliction between employees and employers.
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CONCLUSION
As per discussion, it concluded that Growth planning is a type of strategy of business
operations that help for tracking and collecting information of business. it allows the business to
allocate an appropriate resource towards the development and adopt for changing the industry
driven through digital technology and other differentiate competitors. It summarised that the
different types of key considerations in the small business to evaluate the growth opportunities. It
also describes the growth opportunities by using Ansoff’s matrix in the business. Moreover, it
should be analysed the different method that can assess the potential sources of funding which
available for the business and also identify its drawback or benefits. it also developing the
business plan for growth that include strategic objective and financial information of scaling up
business.
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REFERENCES
Book and Journals
Asmi, R.Y., Salama, M. and Ahmad, I.A., 2018. Distributed generation’s integration planning
involving growth load models by means of genetic algorithm. Archives of Electrical
Engineering.
Bridge, J. and Dodds, J.C., 2018. Planning and the Growth of the Firm. Routledge.
Gounaridis, D., Chorianopoulos, I. and Koukoulas, S., 2018. Exploring prospective urban growth
trends under different economic outlooks and land-use planning scenarios: The case of
Athens. Applied geography. 90. pp.134-144.
Kemp, R.L., 2018. Strategic Planning in Local Government. Routledge.
Leick, B. and Lang, T., 2018. Re-thinking non-core regions: planning strategies and practices
beyond growth.
Lombard, A.T. and et.al., 2019. Key challenges in advancing an ecosystem-based approach to
marine spatial planning under economic growth imperatives. Frontiers in Marine
Science. 6. p.146.
McLean, M., 2019. Understanding your economy: Using analysis to guide local strategic
planning. Routledge.
Sell, L. and et.al., 2018, January. A Dynamic Programming Approach for Planning Reliability
Growth. In 2018 Annual Reliability and Maintainability Symposium (RAMS) (pp. 1-6).
IEEE.
Wann-Ming, W., 2019. Constructing urban dynamic transportation planning strategies for
improving quality of life and urban sustainability under emerging growth management
principles. Sustainable Cities and Society. 44. pp.275-290.
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