Planning for Growth: Analyzing Considerations, Options, and Funding Sources for Small Businesses - Desklib

This guide from Desklib covers key considerations for analyzing growth opportunities, evaluating options for growth, assessing funding sources, and designing a business plan for scaling up a small business. It includes discussions on competitive advantage, BCG and GE matrices, Ansoff growth vector matrix, and potential sources of funding such as bank loans, angel investors, and venture capital.

Planning for Growth

Table of Contents
INTRDUCTION..............................................................................................................................3
TASK...............................................................................................................................................3
Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context....................................................................3
Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within and organizational context.........................5
Critically evaluate specific options and pathways for growth, taking into account the risk of
each option and how they can be mitigated............................................................................5
Evaluate the opportunities for growth applying Ansoff growth vector matrix......................6
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................7
Evaluate the potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organizational context.............................................................9
Critically evaluate potential sources of funding with justified argument for the adoption of a
particular source or combination of sources based on organizational needs..........................9
Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.......................................................................................................10
Develop an appropriate and detailed business plan for growth and securing investment, setting
out strategic objectives, strategies and appropriate frameworks for achieving objectives...11
Present a coherent and in-depth business plan that demonstrates knowledge and understanding
of how to formulate, apply and achieve business objectives successfully...........................12
Assess exit or succession options for a small business explaining the benefits and drawbacks
of each option.......................................................................................................................12
Evaluate exit or succession options for a small business comparing and contrasting the options
and making valid recommendations.....................................................................................14
Provide critical evaluation of the exit or succession options for a small business and decide an
appropriate course of action with justified recommendations to support implementation. .14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRDUCTION
Small and medium scale enterprise is defined as those type of organization where various
business activities single owner. In this type of organization positive relationship between
employees and employer are easily sustained in long term. The main advantage of this type of
organization is that customers always received best quality product and service from
organization in long term. The chosen company is Portland Coffee Shop and the main products
of this company are soft drinks, hot coffee and ice tea (Aguilar and Lopez, 2018). Headquarter of
this company is located in UK and was established in 2021. The report will cover the key
considerations for analysing the growth opportunities and justify these considerations within an
organizational context. It also covers evaluating the opportunities growth applying Ansoff
growth vector matrix, access the potential sources of funding available to businesses and discuss
benefits and drawbacks of each source.
TASK
Analyse key considerations for evaluating growth opportunities and justify these considerations
within an organizational context
Competitive advantage is refer to prestige and position which is gained by firm by using
different types of strategies in market. Due to the effective use of competitive advantage sale of
their goods are effectively enhanced in market within short duration. In this method basically six
factors are there which is considered by company it includes price, quality, location, service
turnover etc. In relation to Portland Coffee Shop, they need introduce new and variety of goods
with best quality to all customer segments. Due to providing best quality services and food and
drinking products to users, the profit margin of firm are easily enhanced at higher rate within
short duration.
BCG Matrix -
The full form of BCG matrix is basically a strategic tool which is applied by various
organizations as an graphical representations. Due to the use of graphical representations firm are
able to identify in which amount their goods are sold inb different areas. In this method basically
four types of categories are involved which are explained below -
 Dogs – Here organization have low market share and low reputation in market for their
product in comparison with other brands. Because here products are limited in number

which creates negative impact in the minds of customers towards firm. In relation to
Poland Coffee Shop they must increase the availability of their product at wide range
with different flavours and taste for consumers. In this way their profit margin is easily
sustained for long duration.
 Cash flows – In this stage products comes under the category of less growth but the
market share of this type of firm is already high (Bellone, Ranucci and Geropanta, 2018).
Due to less growth of company's market share chances are easily enhanced for decreasing
their productivity at maximum level. In relation to Portland Coffee Shop, management
must facilitate unique features in their product according to customer demand. In this way
the sale of their products are easily sustained for long duration.
 Stars – It refer to enhance the productivity and goodwill of firm at maximum level in
market with help of providing good quality products to users. With help of providing
durable or quality based goods according to consumers needs products of firm are highly
popularised in market for long time. In relation to Portland Coffee Shop management
must modify their product with help of various flavours and taste. In this way young
generations and other consumers are easily attracted at large number.
 Question Mark – It is considered as one type of position which is highly important for
company for maintaining their prestige in market or between customer. In the stage of
question mark firm are not able to maintain their popularity and productivity in market
and in different areas. Therefore, it is necessary for Portland Coffee Shop that they must
utilize their resources effectively or properly to increase the life of their product and also
produce in best quality. In this way question mark is highly reduced from the minds of
consumers regarding their product in long term.
GE Matrix -
It is a method which is utilized by firm for using the correct ingredients during the time
of producing the product and also beneficial for delivering right product to customers. With help
of this method the over development and profit of firm are easily sustained in market for long
time. The factors which is involved in this method are described below -
 Industry attractiveness - It refer to in which manner organization is used various
methods or techniques for serving high quality service and product to users. Due to
facilitating high quality goods to users attractiveness and uniqueness of the small

business are easily sustained in the minds of customers for long durations. In relation to
Portland Coffee Shop they need to enhance the availability of their services in both
offline and online mode with affordable price at maximum location. It leads to increase
the sale of the product easily.
 Competitive strength – It is basically a strength which is highly essential for small and
medium business organisations to maintain their prestige between other brands
(Choudhary and Srivastava, 2019). In respect of Portland Coffee Shop it is high because
in present time the other shops also facilitates same product to all customers. Due to this
threats are developed for this company's goodwill and productivity. Therefore, for
solving this problem it is essential for management that they use different types of
advertising and pricing strategies for popularising their product. It leads to attract the
customer in large number especially young generations.
 Strategic implications – It is basically a negative effect which is mostly faced by small
and medium business organization. This positive and negative effect comes under the
category of low, medium and high. This method is basically divided into three categories
which includes harvest/divest strategy, selective/ earning strategy and invest/ grow
strategy.
Discuss the options for growth using a range of analytical frameworks to demonstrate the
understanding of competitive advantage within and organizational context
From the above analysis it is conclude that BCG Matrix is one of the effective and
suitable strategy for Portland Coffee Shop. Due to the proper utilization of BCG matrix
technique company are able to identify the beneficial product which leads to increase their
overall productivity and market share at higher rate. Due to the effective use of BCG Matrix the
competitive strength of the firm is also increased at higher rate. Because the products of this firm
is highly liked and popular between young generations and children. Due to this their products
are highly consumed by every customer for long duration.
Critically evaluate specific options and pathways for growth, taking into account the risk of each
option and how they can be mitigated
In aspect of competitive advantage company considered basically six factors for run their
business successfully and it already mentioned above. Due to considering those factors Portland
Coffee Shop is able to capture large number of customers in right location which leads to

increase the sale of the product easily. In aspect of BCG matrix it is highly helpful for analyse
the present situation of market and also for maintaining the proper demand and supply of their
product. The other one is GE matrix which is highly essential for the success of company
product.
Evaluate the opportunities for growth applying Ansoff growth vector matrix
Ansoff Matrix -
Ansoff matrix is basically a technique which is used by all types of small and medium
organizations for initiating different types of plans and strategies in market (Ehsan and Yang,
2018). The other benefit for using this tool is that growth and success of firm effectively
increased within low time. The strategies which comes under this tool are described below -
 Market penetration – Here firm is focusing on enhancing the sale of existing goods in
existing market. In respect of Portland Coffee Shop, they must use highly effective
techniques for increasing the sale of their products. Products includes soft drinks, healthy
drinks, fast food etc. Due to the use of effective techniques such as advertising, use of
social media and others the reach of their goods and services are easily increased at
international level. In this way the overall market share of company is highly enhanced.
 Market development – In this stage management is mainly focused on developing new
market with help of existing product. In relation to Portland Coffee Shop, they must
utilize digital platforms such as official websites, software and various apps. Because due
to the use of digital platforms convenience are highly increased for both company and
consumer. In aspect of firm they are able to deliver their product and services to users in
quick manner. In this way the basic or essential requirements of customers are effectively
fulfilled in time without any delay.
 Product development – Here firm are mainly focused on developing high quality and
unique goods in existing market which is totally different from other brands. In relation
to Portland Coffee Shop, they must modify their products according to customer needs
and wants. Because in present time tea, coffee, fast food and soft drinks are those
products which is highly liked by the consumers especially young generations. For
increasing the sale of these type of products it is important for authority that they
facilitate new flavours in their product for attracting the customers at higher rate.

 Diversification – Here market and product both are newly developed which is essential
for enhancing the reach of the services and product of firm at global manner. In context
to Portland Coffee Shop, they must facilitate variety in their products to all consumers.
Due to facilitating variety in their products their goodwill are easily spread in different
locations within short period.
Recommendation -
After analysing above data of Ansoff matrix it is concluded that market development is a
suitable and effective strategy for Portland Coffee Shop (Garcia-Vicuña, Mallor and Esparza,
2020). Due to the use of market development strategy small business firm are able to enhance the
awareness of their goods effectively. Due to the use of this technique the positive relationship
and effective communication between small business and customer are easily sustained for long
time. Due to run their main business in UK their profit effectively maintained in UK country
only.
Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
Bank loan – It refer to borrowing the money in the form of loan from various from
various banks for run the whole business activities smoothly. Here Poland Coffee Shop have a
particular time period for returning back the borrowed money according to the terms and
conditions of a bank which is mention in written format. That means if firm did not return the
amount in time then definitely bank will take strict actions.
Advantages Disadvantages
 It is a highly reliable source of finance
and can support the Portland Coffee
Shop for maintaining their cash assets
properly.
 The first disadvantage is that here the
rate of interest is very high in
comparison with other source. Due to
high rate of interest burden is highly
increased on Portland Coffee Shop
which leads to decrease the
productivity at maximum level.
 In this source the time period for
returning the borrowed money flexible.
 The other disadvantage is that due to
high interest rates company is not able

It is also convenient in long term as the
interest is paid timely.
to sustain their vision, mission and
objectives effectively
Angel investor – It is the another source of funding of funding and in this source
individual person plays the crucial role for providing capital to firm according to their
requirements. In this procedure that single person will take risk at the time of providing finance
to small business organization (Guo, Wang and Anastasopoulos, 2018). The main motive of
using angel investor by Poland Coffee Shop is to increasing their portfolio at higher rate. Here
also firm need to return that amount in particular time.
Advantages Disadvantages
 Here the time period of returning
borrowed money is not fixed which is
highly helpful for the organisation. Due
to this Portland Coffee Shop are able to
stabilise their position in market for
long time.
 The loss of equity is one of the major
threat for Portland Coffee Shop
according to this source. Because the
angel investor might try to take over
whole activities of business.
 The other advantage is that high
amount of contacts, knowledge and
experience of investors are essential for
the growth of company.
 Due to taking high risk by single person
he faced lot of problems for collecting
funds in prescribed time. Due to this in
this procedure after the specific time
period relationships are getting bad
between company and financier.
Venture capital – This is also a one type of source for borrowing money and in this
procedure firstly venture capital analysed the current position and details of firm. Then if the
details and current position of the market is good then only the required amount is sanctioned
from the side of venture capital to organization.
Advantages Disadvantages
 In comparison with other source it is  In this procedure funds for the

highly beneficial money borrower
method for company. Because here
Portland Coffee Shop are able to
borrow huge amount of money in legal
manner. Due to this company are able
to maintain positive relationship with
financier for long time.
organization is released by venture
capital according to the performance of
company. Due to this it is essential for
Portland Coffee Shop that they must
facilitate required equipments or
resources to their employees for
sustaining their overall performance
 In this procedure also any type of time
period is not fixed for the borrower
which provides flexibility to Portland
Coffee Shop and their employees.
 Due to high expectation of capital
venture organization tried to develop or
expand their business activities quickly.
But in this situation owner and the
employees will face lot of stress in
business activities.
Evaluate the potential sources of funding and justification for the adoption of an appropriate
source of funding for a given organizational context
From the above analysis it is concluded that bank loan is a suitable and effective source
for Portland Coffee Shop in aspect of borrowing huge amount of money (Khan, Teng, and Khan,
2019). Due to the use of bank loan small business firm always run their business activities in
legal way and also facilitates best quality product to consumers. The other advantage for using
bank loan is that very less legal formality are faced by company because small in size. Due to
run their activities legally positive relations are easily sustained with customers for long time.
Critically evaluate potential sources of funding with justified argument for the adoption of a
particular source or combination of sources based on organizational needs
From the analysis of above information it is concluded that bank loan, venture capital and
angel investor all are important for the organization. Due to the use of these type of sources of
funding firm are able to sustain their goodwill and credibility in market for long time. But out
these as already mentioned above bank loan is useful for company. Because in comparison with
others bank loan helps the firm to run their activities legally and smoothly. When firm taking
loan from bank then they need to serve the best quality product to customers which leads to
increase their market share at maximum level for long time.

Design a business plan for growth that includes financial information and strategic objectives for
scaling up a business
Summary of company
Now Portland Coffee Shop is going to introduce the business of food products at wide
range in other location and the name of that location is Scotland. With help of this location
company is able develop strong connectivity with all customer segments. Products includes fast
food, coffee, soft drinks etc. and due to serving these type of products young generations and
children's are easily attracted in large number. The other benefit of this location is that effective
distribution channel and infrastructure are easily developed within short duration.
The mission of this company is to develop strong and positive relationship with all
categories of customers for long duration (Lityński and Hołuj, 2020). Next mission is to stay
committed with our roles and responsibility towards public in long term.
The vision of this firm is to change the overall lifestyle of society and also providing best
quality food products to users in time. In this way positive relationship is effectively sustained
between company and customer in long term.
The main objective of Portland Coffee Shop is to sustain the popularity of their product
in market or between public for long duration.
Strategy -
Here the strategy which is suggested to company is market development which is
essential for increasing their market share and profit within short duration. Due to the use of this
particular method chances are highly increased for kids and youngsters category of customers in
large number. With help of this strategy firm is able to fulfil the needs and desires of customers
in time.
Tactics -
Marketing mix -
It is defined as a set of activities which is used by applied by organization for enhancing
their market share at higher rate. In marketing mix mainly 4P's are involved which is described
below -
 Product – In relation to Poland Coffee Shop, they must facilitate their product to
customers with best quality and unique features. They also facilitates correct information
to users regarding their product.

 Price – Management of Poland Coffee Shop must facilitate their product to customers
with fair and affordable price.
 Place - In respect of Portland Coffee Shop, management must choose suitable or
appropriate location in London for enhancing the sale of their product.
 Promotion – Management of Poland Coffee Shop must use different promotional
techniques for popularising their product in different locations. It includes digital
marketing, advertising, personal selling and others.
Strength -
 In respect of Poland Coffee Shop, authority must utilize skilled and talented workforce
in their workplace area (McCann and Van Oort, 2019). Due to this company are able to
deliver best quality products to users in time.
 Due to facilitating quality product to users their level of satisfaction are easily sustained
in long term regarding company product.
Opportunities -
 With help of best quality product the Portland Coffee Shop are able to maintain their
goodwill successfully in market or between customers for long time.
 Due to facilitating best quality product to customers Portland coffee shop easily expand
their departmental functions at international level
Sources of finance
From the analysis of information bank loan is suggested to company because it is the best
source of finance. In this source business activities are always run in legal manner which is
essential for company goodwill and reputation. The other highlight of this method is that it is
created in the form of written document or agreement.
Develop an appropriate and detailed business plan for growth and securing investment, setting
out strategic objectives, strategies and appropriate frameworks for achieving objectives
Business plan is defined as those activities which is executed by the higher authorities of
organization. Activities includes planning, executing, staffing, controlling, managing etc. Due to
the use of effective business plan Portland Coffee Shop is able to expand their business in every
location. Effective business plan also helps to maintain positive relationship between employees
and employer or employee and customer for long time. It also helps to deliver the quality
products to customers in time in various locations.

Present a coherent and in-depth business plan that demonstrates knowledge and understanding of
how to formulate, apply and achieve business objectives successfully
There are various benefits when organization follow the business plan effectively. Firstly
with help of effective business plan firm are able to increase the convenience of customers
through online and offline mode. In aspect of online mode users are able to avail the services and
products of firm within low time.
Assess exit or succession options for a small business explaining the benefits and drawbacks of
each option
Exit Options -
Sold company stake to a partner or investor – In this procedure tangible product or
amount are directly sold to business partners by the company owner (Moroni, 2018). Due to
applying this technique the liability and reputation of the company owner are highly decreased.
Advantages Disadvantages
 In this procedure the legacy of Portland
Coffee Shop is easily sustained in long
term in various locations.
 Due to giving stake to investors and
business partners real owner faced lot
of problems for run the business.
 With help of this strategy the overall
profit of firm is effectively increased
for long time.
 Due to increasing work stress on
company owner is not able to stop their
business for long duration.
Liquidating business – It also refer to the another type of business exit strategy and in
this procedure organization fully close their whole business functions in various areas. It leads to
decrease the financial support of firm at large scale.
Advantages Disadvantages
 In this method owner did not need to
take any stress for continuing business
again.
 Due to taking this decision chances are
enhanced for decreasing the goodwill
of company in minds of consumer.

 In comparison with other methods this
is the simplest method procedure for
closing the organization quickly.
 Due to shutting down organization in
various locations return on investment
is easily decreased which leads to loss
of company performance.
Succession Options -
Merger and Acquisition – It is basically a technique which is utilized by organization
for increasing their whole business at international level. In this procedure entities are fully
mixed and facilitates products to consumers in the form of one company.
Advantages Disadvantages
 Here the revenue and market share of
organization effectively increased
within low time (Næss, Saglie, and
Richardson, 2020).
 In this procedure cost is high for the
operational activities of Portland Coffee
Shop.
 In context to Portland Coffee Shop due
to using this strategy effective supply
chain is also developed for delivering
the product in time.
 In this procedure ability and ability and
potentiality of firm is reduced at higher
rate.
Franchise – It is defined as a license which is facilitated by company to others. With
help of this method single person is able to run their business smoothly in selected location.
Advantages Disadvantages
 Here franchiser has the full
responsibility for the success of firm.
He is also responsible for encouraging
the workers.
 Franchise recruitment can be slower
and less efficient than employee
recruitment.
 In this procedure franchiser put little
cash in selected area which is important
 Franchisees cannot be managed as
closely as employees and they may

to provide financial support company. have different goals to the franchisor.
Evaluate exit or succession options for a small business comparing and contrasting the options
and making valid recommendations
After the analysis of above data success option is suitable for the Portland Coffee Shop.
Because with help of this option company are able to increase their productivity and performance
in every location (Navarro-Ortiz, Sallent and Pérez-Romero, 2020). In succession option
awareness of new and existing product is easily increased with in short duration. But in aspect of
exit option only negative effects are faced by the organization for example financial loss,
decreasing popularity etc.
Provide critical evaluation of the exit or succession options for a small business and decide an
appropriate course of action with justified recommendations to support implementation
In comparison between succession and exit option succession is more effective because
in succession, owner has the opportunity for establishing their presence in every location. Due to
this the goodwill and growth of company is easily increased in every area. Merger and
Acquisition is a technique which is utilized by organization for increasing their whole business at
international level. In this procedure entities are fully mixed and facilitates products to
consumers in the form of one company.

CONCLUSION
After the analysis of above information it is concluded that small and medium scale
business played important role for increasing the profit of multinational companies. Because big
firms are directly connected with the function of small businesses for enhancing the sale of their
various goods in effectively. But in aspect of small business (Portland coffee shop) due to
facilitating quality service and product to customers their portfolio and brand image are
effectively increased in market.

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