Planning for growth in an organisational context

PLANNING FOR GROWTH INTRODUCTION 1 LO11 P1 Analyse key considerations for evaluating growth opportunities and justify these considerations within an organisational context.1 P2 Opportunities for growth applying Ansoff's growth matrix3 LO 2 6 P3 sources of funding: 6 LO 4 8 P4 Design a business plan 8 LO 4 12 P5 Succession options for the business 12 CONCLUSION 14 REFERENCE15 INTRODUCTION Planning and growth- it is an important business activity that ensures business owners to

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organisational context.....................................................................1
P2 Opportunities for growth applying Ansoff's growth matrix..............................................3
LO 2.................................................................................................................................................6
P3 sources of funding:............................................................................................................6
LO 4.................................................................................................................................................8
P4 Design a business plan......................................................................................................8
LO 4 ..............................................................................................................................................12
P5 Succession options for the business ...............................................................................12
CONCLUSION..............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Planning and growth- it is an important business activity that ensures business owners to plan as well as track the growth in the
revenue system. As it allows the business to assign their scared resources towards the organisation to accommodate to changes within
the industry driven through digital interruption and from different rivalries. This study is based on the Antipode coffee shop located in
Hammersmith, London(Brinckmann and et.al., 2019). This report includes the study of Analyse key considerations for evaluating
growth opportunities and justify these considerations within an organisational context and Opportunities for growth applying Ansoff's
growth matrix. This report also includes the business plan for the Antipode company.
LO1
P1 Analyse key considerations for evaluating growth opportunities and justify these considerations within an organisational context.
Antipode:-
“An Antipodean is a cafe established in the shadow of Hammersmith flyover”.
it is a cool little shop located a Hammersmith flyover on the Fulham palace road. Coffee shop brings magic from the Lane ways of
Melbourne and Sydney's Bondi beach to London. It is a Australian cafe situated in London, which provide high quality and standard
products. In a busy day it is a coffee and brunch cafe and by night it is a bar serving natural wines, point cocktails and craft beers.
Apart from this Antipode provides lots of innovative dishes with there signature mature cheddar toastie and kimchi, as a healthy
option for Londoners.
Cafe works with the some worlds well known brands includes, Stone and wood, Squaew Mile Coffee Roaster and Seedlip and
little creature(DeMartino and et.al., 2015).
PESTLE Analysis of Antipode cafe
success of any organisation is depends on the how accurate there pestle analysis is. Pestle analysis covers all the factors with
affect a business and correct analysis of those factors can give competitive advantages for the business. For the coffee shop this issues
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are specially problematic since the changing in laws regarding coffee chain of production. It includes several legal and political factors
contended with the business. The main factors affecting the Antipode shop-
Political:- The coffee shop Antipode can be face so many political issues including the trade relation between material providers and
government, Antipode owners has to look he relation between the his own country. Antipode is and Australian brand so that it also
have to bear the issue of outside boundary trade conditions. Political factors also affect the business start up and the taxes by the
owners. For example, antipode is a Australian brand so it will hard to survive in those places in which anti Australian sentiments are
high (Lambert and Oatley, 2017).
Economical:- The first factor affecting the Antipode coffee shop in economic factors would be the spending power of the particular
area in which they are trying to establish themselves. If the spending power of the public is high then there will be high demand of the
products, but if not than there will less demand of the items particularly coffee. It also have to concern about the exchange rates of the
country where they want to business, because it increase the price of the products and it negative impact on the sales. Exchange rate
also affect the raw material rates for the shop.
Social:- One of the most important social factor that affect the business of Antipode coffee shop is that consumption of coffee is how
beneficial for the health. Social factors also affect by the what are the trends of the area, people willing to spend money on coffee,
what will be target area, age group. Attitude of the public towards the coffee is also affect the sales of the coffee.
Technical:- one more factors affect the antipode coffee shop is technology, what technologies they use in the market. What they use
for the advertisement of the cafe (Lambert and Oatley, 2017). What they use in the making of products
Legal:- legal factor the factors which are affect while the starting of the business. The minimum wages law forb the workers and so
many laws which bound the firm for the starting of new business or decrease the profit of the firm.
Environment:- This is a uncontrollable factors for the business which can not be controlled by the planing. This is the factor taking
care that how this will affect the business.
Porter's Generic Strategies
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In 1980 Michael porter gives three strategies which can be use by small, medium and big size organisation obtain competitive
advantages company can use two type of competitive advantage either lower cost from the competitor pr differentiating itself along
dimension to command higher price (Lambert and Oatley, 2017).
Porter fundamental business strategies:-
11 Cost leadership:- in this company will go to save the cost of the production which help to increase the profit of the
organisation. Attracts the more costumer with the low price of the products and it increase the sales.11 customer focus:- many organisation focus on the same customer section and target a fix area to sale the products. They develop
product for only those customers. Its help to gain a fix customer base and product line (Kumar, 2016).11 product differentiation:- companies adopts the strategies of product differentiation by adopt different branding and packaging
for the products. Company use different size, shapes and services to sale the product.
P2 Opportunities for growth applying Ansoff's growth matrix
Ansoff's growth matrix:- Igor ansoff gives this matrix, he said that a business can grow in terms of the customer base, employees,
international coverage and profit but growth often calculated on the basis of the revenue of the firm. There are different structure of
growing business. Ansoff matrix is also known as product market expansion grid. The matrix look at the product, market and services.
 Market penetration:- “existing product and existing market” in this types of market company is selling more product in the
same previous market by cut down th prices, ivest more in market and by improving distribution channel. This type of market
have the lowest risk but this also not have that much profitability. But investment may be lesser to adopt this market
 market development:- “existing product and new market” market development means the company is selling more products in
the new market because company have a good sales and brand image in previous market which helps to increase the sales and
development of new market. This type of market are help to generate more profit because peoples knows about the products.
This type is less risky and more profitable (Leick and Lang, 2018).
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 product development:- “new product and existing market” in this type company is launching new product in there existing
market to earn more profit. But this types of product may be risky because for production of new products company needs
investment and it may not be successful as the previous products.
 Diversification:- “ new product and new market” in this type of market company is selling new product is new market . Which
is the most risk full market because firm is launching a new product in a new market. Which is very less chances of being
successful. May be this is the most risk full market but if company manage the factors affecting it and adopt the best strategies
of growth and development this market can be the most profitable among all the options (Leick and Lang, 2018).
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For the Antipode coffee shop market development is most suitable growth opportunity because it have very good image
product and its coffee is famous in the market so, if antipode want to expand business it will be go to new market with its old product,
which is less costly and less risky and it also help to gain more profitability and large number of customer base which can it target and
achieve maximum revenue. And second most suitable choice will be the product development in which it can launch new products in
the existing market and attract potential costumer, which help to grow business and gain more profit (Kinossian, 2018).
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Illustration 1: Ansoff matrix
(source: Ansoff Matrix: How to Grow Your Business, 2017)

LO 2
P3 sources of funding:
Every new start-up or business needs capital for running a business. A small cafe in UK named Antipode needs capital for
running or development of business. Some sources of business are discussed as follows:
Bank loan: Bank loan is the most ordinary used method in souring of fund in small and medium sized businesses. Bank offers
various advantages, it is service which personalised or customized repayment. Banks were looking and checking the trade records of
the firm and it should be sound(Brinckmann and et.al., 2019). Start up loan is typically mandatory a personal guarantee from the
owner of the business. A bank loan is available only for financing the inventory purchase, purchasing of equipments and in operating
capital and expansion of the business.
Pros of taking a bank loan:11 Banks charges very low and fixed interest rates for loan in comparison to other sources of funding.11 Loan interest will be repay inn easy monthly instalment scheduled hence it will not create financial burden on Antipode(Burns
and Dewhurst, 2016).11 The interest on business loan can be deductible on your taxes. It is the one of the biggest advantage.
Cons of taking bank loan:
 One of the disadvantage of taking bank loan is that, it is very difficult to qualify for small business to bank loan.
 Loans are not very flexible, business have to pay interest for that amount that not be in used(DeMartino and et.al., 2015).
 Banks incurs charge if the loan repay before the date. By paying monthly repayments may cause cash flows problems in the business.
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Crowdfunding:
Crowd funding is source of funding in which a firm raising small amount of money from huge number of peoples, or say with
the help of internet. It is largely used by a profit making firms via creating a creative project, travel and social entrepreneurship
projects(Fahed-Sreih and El-Kassar, 2017). Antipode cafe needs capital for expansion or for another uses, cafe may use such method
for the source of fund, pros and cons of crowdfunding are disused below:
Pros of crowd funding:
 It is the fastest way to raise fund without any fee.
 Through sharing the ideas to the public via internet often gets feedback and new ideas to explore or improve it.
 Investors makes eyes on the project it helps to promote brand of the firm through their networks(Frenchman, 2017).
Cons of crowd funding:
 Not all projects are that much capable to crowdfunding platforms get onto them.
 If a project not reach on the prescribed funding target, than firm has to return the amount which they collected till the date.
 Risk of stealing the projects and ideas is increased in crowdfunding. Firm needs to build up interests before the date of launching the projects for funding.
Venture capital:
Venture capital is the way of financing that investors gives to start-up or small businesses and believes to have long termed
potential growth. It comes from the investors or investment banks or any other financials institutions which are deals with the venture
capital(Kemp, 2018).
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Pros of Venture capital:
 Venture capital provides a large sum of capital which would not be possible through the bank loans or any other source of
capital.
 It provides industry connection and expertness that can be more valuable.
 A legal costs makes secure venture capital and it is difficult in procedures.
Cons of venture capital:
 It is very expensive process. Due to negotiation period firm has to hire an attorney to assist in the negotiation.
 Venture capital decrease the percentage of ownership of the existing owner.
 By using venture capital as a source of fund causes loss of control over something like investors demands some special rights
like voting rights, information right etc.
LO 4
P4 Design a business plan
Executive summary:- Antipode coffee shop is London based cafe which provide the best coffee in town. Cafe is planning to expand
business in Australian market where people prefer to have coffee and visit new cafes and restaurants. This firm is famous for its coffee
and coffee making process in traditional ways. Target people for the company will be the youth sector of Australian population
because they prefer to go out and have coffee and food outside. Firm is providing different range of coffee products and innovative
food dishes which attract customers.
Vision:- To become a leading brand in hospitality sector which offers beverages to the customers
Mission: To maximize customer base and sales within 3 years.
Objectives:
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 To increase the sales by 5% at the end of third quarter.
 To establish business in Australian market.
Environmental analysis
Pestle analysis
Political factors
 Political stability in food and beverage
rules and regulation.
Economic factors
 Exchange rates & stability of host
country currency
Social factors
 Demographics and skill level of the
population
Technological factors
Technological development by antipode in
Australia limited the competitors.
Legal factors
Anti-trust law in Food and Beverage industry
and overall in the country.
Environmental factors
 Needs to make focus on sustainability
aspect

SWOT Analysis
Strengths
 strength of antipode is there wide
range of product which make them
special and coffee of antipode is
famous in the London
Weaknesses
 the brand ia an Australian brand which
make local competitors to take
advantage of locality
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Opportunities
 Company have opportunities to
expands its markets and innovate new
products.
 Launch products in Australian market.
Threats
 The biggest threat for the company are
local competitors are having local
support which makes them threat full.
Marketing strategies:- the tactics adopt for the achievement of the objectives of the organisation company. Product:- Antipode will use the product which attract the customers where it uses wide range of products and flavours in
coffee.
 Price: - company decided to go with the nominal prices which can easily affordable for the public. It helps to increase the sales
of the company and profit. Price should be the main attractive that pull costumers.
 Place:- to sell the products and develop new market company will establish its cafe in Australian market to get more success
because Australian people prefer to have coffee.
 Promotion:- to promote the cafe in Australia it will use social media like Facebook, Instagram and YouTube advertisement to
promote the products.
 Physical evidence:- to create the physical evidence in mind of customers it will create attractive interior and services of
product in qualitative way.
STP approach
Segmentation: segmentation can be done on four basis demographic, geographic, psycho-graphic and behavioural segmentation. In
the growth of Antipode cafe it uses the geographic segmentation.
Targeting: it targets the youth where it focuses on age segmentation. Mainly youth prefer the go out and have coffee with friends.
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Positioning: to create positioning in the minds of youth it uses the attractive prices and products. So that youth come and consume
them.
Financial analysis
Cash flow statement or analysis
Particulars January February March April May June July August September October Novem
Cash inflows
Opening cash inflow 5000 6300 8682 11145.88 13691.45 16318.43 19026.48 21815.16 24683.94 27632.19 3065
Sales revenue 10000 10200 10404 10612 10824 11041 11261.62 11486.86 11717 11951 121
Other income 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 20
Total cash inflows 17000 18500 21086 23757.96 26515.77 29359.24 32288.11 35302.02 38400.53 41583.12 4484
Cash outflows
Material 2500 1530 1560.6 1591.812 1623.648 1656.121 1689.244 1723.029 1757.489 1792.639 1828
Labour 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 20
Other expenses 2200 2288 2380 2475 2574 2677 2783.702 2895 3011 3131 32
Administration expenses 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 40
Total cash outflows 10700 9818 9940.12 10066.51 10197.34 10332.76 10472.95 10618.08 10768.34 10923.92 1108
Cash deficit / surplus
or closing cash balance 6300 8682 11146 13691 16318 19026 21815.16 24684 27632 30659 337
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LO 4
P5 Succession options for the business
Succession is the process by which an ownership of the business are to be pass to another or winding up the firm. There are
different to have a succession plan (Kinossian, 2018). Some option of succession for the business are following below:
Sell to the outside party:
A small business owner can exits the business by selling the firm to another party or co owners of the business. For
implementation of this succession plan owner of Antipode needs to identify key business area and position after that the owner needs
to ascertaining competencies for key areas and positions and develops the strategies for implementation and evaluates the
effectiveness of it. If a business owner wants to retirer from the business then business owner may look for the another party to take
over the firm. Third party might be a competitor or another entrepreneur who might have interest in your business.
Advantages:
 If a firm has proper strategic value to taker, it pays more that the business its worth.
 A third-party sale’s deal structure is usually more straightforward than other transfer methods of succession.
Disadvantage:
 If the owner of the company organise the business deals, its seems be unattractive to the buyers. In acquisition the buyer negotiates the prices.
Taking the firm public:
IPO (initial public offering) is the offering to the owners of equity of private firm may transferred their holding to the public. It
makes scene only for the small business that can beneficial from substantial infusion of cash. IPO offers to the business owner to sell
all part of their shares to the investors to exit from the business.
Advantage:
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 Increase in the worth of stock may be in ten or even millions of dollars.
 IPO has capabilities to raise the capital quickly by reaching with the large number of investors.
 By issuing the share of newer or less knowing company can generates publicity.
Disadvantage:
 One of the drawback of IPO is, it takes long time period to being in process.
 Firm's management has put their whole attention in IPO which cause firm has to suffer in other areas.
 Transaction cost of IPO is very high (Kinossian, 2018). IPO is an expensive and complicated process.
Liquidation:
Liquidation is the formal insolvency procedure in which a firm is about to end. Assets of such firm are liquidated and the pay-
off from the sale of assets is used in payments to the creditors. There are two types of liquidation for insolvent firms – compulsory and
credit voluntary liquidation. When the owner or entrepreneur wants to exits the organisation, liquidation is the one of the way through
which the owner change the assets into the cash and exits the business. It takes place when the owner become insolvent. It
implemented by the appointing a liquidator to the firm who takes care of such process of liquidation.
Advantage:
 The responsibility of the owner of the firm to deal with the creditors will be reduced after liquidation.
 Any customs will not chase after the liquidation (if any due).
 Employees can claim their dues like unpaid salary, holiday pay and redundancy from the government fund.
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Disadvantage:
 Any losses for tax purpose will be lost and can not be recover.
 A business is no longer in trade and it is restricted to open the same firm with using same name in the future.
 Once the process of liquidation starts, firm can not be save and owner will no longer allowed to trade with similar business.
CONCLUSION
From the given study on planning for growth it is concluded that there are some key considerations used for evaluating growth
opportunities in Antipode Coffee shop which are beneficial for growth of the organisation. These opportunities are analysed in the
report with help of Ansoff matrix. Company can use the market development strategies, which help to increase the profit and sales of
the organisation and take the competitive advantage. Further the report have given some potential sources of funding and also there
drawbacks towards the business. At last the report concluded about the different business plan which can help out for growth of
Antipode Coffee shop and in this financial information and strategic objectives have been designed for scaling the business.
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REFERENCE
Books and journals:s
Brinckmann and et.al., 2019. Of those who plan: A meta-analysis of the relationship between human capital and business planning.
Long Range Planning. 52(2). pp.173-188.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan International Higher Education.
DeMartino and et.al., 2015. Looking Inside the Black Box of Growth Efforts in Declining Small Firms: The Role of Growth Factors,
Planning, and Implementation. In Entrepreneurial Growth: Individual, Firm, and Region. (pp. 265-296). Emerald Group
Publishing Limited.
Fahed-Sreih, J. and El-Kassar, A.N., 2017. Strategic planning, performance and innovative capabilities of non-family members in
family businesses. International Journal of Innovation Management. 21(07). p.1750052.
Frenchman, D., 2017. Planning shapes urban growth and development. In The Profession of City Planning. (pp. 27-30). Routledge.
Kemp, R.L., 2018. Strategic Planning in Local Government. Routledge.
Kinossian, N., 2018. Planning strategies and practices in non-core regions: a critical response. European Planning Studies. 26(2).
pp.365-375
Kumar, D., 2016. Enterprise growth strategy: vision, planning and execution. Routledge.
Lambert, C. and Oatley, N., 2017. Governance, institutional capacity and planning for growth. In Urban Governance, Institutional
Capacity and Social Milieux. (pp. 125-141). Routledge.
Leick, B. and Lang, T., 2018. Re-thinking non-core regions: planning strategies and practices beyond growth.
Magasi, C., 2016. Factors influencing business succession planning among SMEs in Tanzania.
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Sosiawani and et.al., 2015. Strategic planning and firm performance: A proposed framework. International Academic Research
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Online
Ansoff Matrix: How to Grow Your Business. 2017. [online]. Available through <https://www.business-to-you.com/ansoff-matrix-
grow-business/>
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