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planning for growth - CafePod Coffee Co PDF
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Added on 2021-02-22
planning for growth - CafePod Coffee Co PDF
Added on 2021-02-22
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Planning for Growth
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Examine main considerations for evaluating growth opportunities along with justification................................................................................................................................................1P2. Evaluate the opportunities for growth with the application of Ansoff's Growth Matrix.3TASK 2............................................................................................................................................4P3. Identify potential sources of funding along with their benefits and drawbacks...............4TASK 3............................................................................................................................................5P4. Design a business plan for growth including financial information and strategic objective5TASK 4............................................................................................................................................8P5. Assess exit or succession options for small business together with benefits and drawbacks................................................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONGrowth planning is a process in by which owners of an entity make plans which will helpgrowing the business by increasing the revenue. This involved management of limited resourcesby allocating them efficiently in achieving the tasks. An organization adopt many strategies andtechniques for its growth (Mitchelmore and Rowley, 2013). It should be a continuous processwhich needs review and monitoring for implementation. The company chosen in this report isCafePod Coffee Co. which is located in London, UK. It covers key considerations for evaluatinggrowth opportunities, application of Ansoff Matrix, potential sources of funds along with itsbenefits, development of business plan and how can a small business exit. TASK 1P1. Examine main considerations for evaluating growth opportunities along with justificationGrowth opportunities are essential to increase the scope of business so that high revenueand profit can be generated. This can be done in number of ways such as expansion of market,product, diversification, acquisition and many more. It is necessary to have competitiveadvantage in order to survive in the long run. Small businesses have limited opportunities forgrowth because of lack of sufficient resources. There should be proper planning along withstrategies to be implemented within the organization for the growth. CofePod Coffee Co. isexploring opportunities for increasing sales in UK to make a position in the marketplace. Forgrowth prospectives, different areas particularly strategies of competitors should be examined.Therefore, variety of key considerations that can be taken into account by CafePod Coffee Co.for growth opportunities are as follows: Competition and competitive advantage- It refers to the situations of a market in whichan organization sells the goods at a price which is equal or lower than its competitors in order toattract them (Rydin, 2013). There are many factors which are included in this such as coststructure, quality of product, intellectual property, customer satisfaction and many more. It isimportant to track the performance of competitors and analyse their strategies. In the context ofCafePod Coffee Co., it should be aware about its rivals and their working. Furthermore, theirposition in the marketplace should also be considered in the planning. This can help CafePodCoffee Co. to provide better quality in their products as compared to its competitors.1
Price structure- This includes the prices that are offered to customers for the products orservices of an organization. This consideration plays a vital role in growth of a business. Whilepaying the price, a customer wish to have expected perceived value. With regard to CafePodCoffee Co., the existing prices should be checked and amended as per the needs of customers.This can be done by going through historical data. Furthermore, the company should understandthe price strategies that are being implemented by different entities in the same line of business.The prices should be favourable to customers along with offers like discounts. Prices which meetthe expectations of customers help it grown its business (Rahmanda, 2012). Market share- It is the part of the whole industry or a market's total sales which is theresult of total sales made over a particular span of time. It reflects the number of customers whoare aware and using the products of a particular company. Every organization wish to have anincreased market share so as to enhance its sales and revenue. In the context of CafePod CoffeeCo., it should expand its business in those market where has colleges education institutions etc.and have higher customers as compared to its existing level. The growth opportunities will give achance to increase its current market share. Market opportunities help in adding more marketshare which reflects the total sales. Financial viability- It is again an important factor for evaluating a growth opportunities.This is regarding funds required by the company, estimation of cash flow, profit ratio etc.Without financial viability, no entity can achieve its objectives resulting in difficulty to survivein the market. CafePod Coffee Co. should analyse those areas or opportunities which offer highviability and stability in financial resources. Budget is prepared which can be allocated as per theneed of the objectives. Financial viability helps in making decisions as it is the first elements indecision-making. Investors' reward- Organizations look for different kinds of investors who are willing toinvest in the business for a return (Berger, Wagner and Webster Jr, 2014). Therefore, companiesfind avenues and prospects through which it can generate more revenue to be able to give higherreturn to its investment. CafePod Coffee Co. should take into account the expected return ofinvestors so that more investors can be interested in making investments. Growth opportunitiesshould be such which provide high ROI. Risk assessment- Risk is defined as the uncertainty which may create difficulties incarrying business operations. These are unforeseen which affect desired outcomes. Also, it can of2
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