Planning for Growth: Strategies for Society Cafe in UK

This report discusses the planning for growth of Society Cafe in UK. It covers key considerations for increasing growth opportunities, Ansoff's growth vector, funding sources, business plan, and succession and exit options. The report also includes a PESTLE analysis, BCG matrix, SWOT analysis, and VRIO framework for understanding the competitive advantages of the cafe. The market development strategy is less risky and increases the profit.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
P1 Key consideration for increasing the growth opportunities and justification of given
consideration...............................................................................................................................4
P2 Growth opportunities for the business by applying the Ansoff's growth vector: .................7
M1 Discussion of the growth option by analysing the analytical framework for understanding
the competitive advantages in context with the organisation......................................................8
D1 Evaluation of the pathways of the growth and associated risk with the specific alleviate
way..............................................................................................................................................8
P3 Different funding source for the business with the advantages and disadvantages...............9
M2 Evaluation of potential source of funding and justification of appropriate source of
funding with respect to organisation...........................................................................................9
D2 Critical evaluation of potential sources with the justification for adoption of source in
context with the organisation....................................................................................................10
P4 Business plan with financial information and strategic objectives for growth of business. 10
M3 development of appropriate business plan for growth and setting the strategic framework
for getting the objectives...........................................................................................................11
D3 Describing the depth of the business plan and how to apply this in achieving the objectives
of the business...........................................................................................................................11
P5 Describe the succession and exit option in the business with their merits and demerits.....11
M4 Evaluation of the exit and succession option with proper recommendation......................12
D4 Critical observation of the succession or exit plan for the small business with justified
recommendation........................................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14
INTRODUCTION

The Planning for growth is the granular record of setting the business goals and targets
for increasing the profits. The planning for growth is very important aspect in increasing the
business goals by enabling the precise actions. This is the process of increasing the resource of
the company for enhancing the revenue rates. Market development, partnerships, market
disruption, product diversification and acquisitions are the different strategies for expanding the
business in the market. The given discussion is about the growth planning of the society cafe of
United Kingdom. The Society Cafe is the small coffee house which is situated in the centre of
the bath (Jena, 2020). The uniqueness of this cafe is that it provides the best quality of coffee
which is prepared from the best coffee beans. The report has discussed the pestle analysis, BCG
matrix, Ansoff model and marketing mix for increasing the growth opportunities of the cafe
(Delmar, 2019). The given report has also included the different funding techniques and their
benefits and demerits. The report has also focused on the succession and exit of the small
business.
MAIN BODY
P1 Key consideration for increasing the growth opportunities and justification of given
consideration
The business planning increases the capacity of any organisation and company to catch
the opportunities which is beneficial in the growth of the business. The micro factor and macro
factor both plays important role in growth of business by developing the brand and design of the
cafe (Nuscheler, Engelen and Zahra, 2019). The different model which is evaluating the growth
opportunities of the Society Cafe and their factors are described below:
Porters generic model: This model is developed by the Michael Porter in 1985. Porters generic
model is consisting of various strategies which increase the business approach in the market as
well as increase the competitive advantages of the business in the markets (Jardon, 2018). The
strategies of the Porters generic model are mentioned below:
 Cost leadership: This is the strategy of maintaining and establishing the lower cost of
product and services than the competitors in the markets. The Society Cafe has provided
the best quality of coffee to their customers in reliable rates.
 Differentiation strategy: This is the way of enhancing the quality of products by adding
the uniqueness in the products. This strategy focuses on durability, product performance,

appearance, brand image and other different ways which makes the product and services
different from their competitors in the marketplace (Vögele and et.al., 2020). The Society
Cafe provides the elegant aesthetic and cosy atmosphere in their cafe with the different
flavours of coffee. The uniqueness of this cafe is that it provides the polite service and
very delicious food.
 Focus strategy: This strategy focusses on the needs and demands of the customers by
observing the niche market. This is the way of understanding the different dynamics of
the business which increase the profit of the business (Nowak and et.al., 2020). The
Society cafe has followed the focus strategies for increasing the demands of customer
towards their products. The cafe has offered the discount and free home delivery services
to their customers for targeting the customers towards their products.
PESTLE Analysis: This is the way of influencing the organisation by analysis of external
factors like social, political, economic, environmental and legal. The different external factor of
the pestle analysis are as follows:
 Political: The political factor includes the rules and policy of the government which
influence the business (Horton and et.al., 2021). The political factor consists of excise
duty, fiscal policy and tariffs, corporate taxation etc. The quality, hygiene, safety
measures and other parameter of the cafe has set according to the policy of government.
 Economical: The economic factors include the employment rates, interest rates,
inflation, exchange rates for determining the economic performance of the organisation.
The increased inflation rates decrease the purchasing power of currency. The cafe has
enhanced their business and has increased the recruitment process of their employees for
providing the best and quick service to the customers (Ansoff and et.al., 2019). The
increase inflation rate during the pandemic time negatively affect the business of Society
cafe by decreasing the demands of customer due to rise in the price of products.
 Social: This factor helps in marketing to understand the demands and need of customers
by focusing the demographics, lifestyle trends, cultural trends and behaviour of the
customers. With the help of social factor, the Society cafe has introduced the organic tea
and meal for their customers. The quality and taste of food and coffee has decided by
considering the feedback of different groups of customers (Bhandari, 2021).

 Technological: This is the macro factor of the PESTLE Analysis which focus on
technological development of the organisation by increasing the automation, cyber
security and technology infrastructure. The Society Cafe provides the well automation
technique by online table reservation, automatic billing, online ordering, cloud telephony,
accounting and reporting process.
 Environmental: The climate, weather change, natural disaster, stewardship of natural
resources and many more natural factors which influence the business of any organisation
are termed as the environmental factor. The Society Cafe maintain the cleanliness in the
cafe and focus on recycling of the waste material by proper waste management.
 Legal: The legal factors include the industry regulation process, licences and permits as
well as laws and regulation for protecting the employees and consumers. It is the set of
regulations which increase the proper functioning of the organisation by providing the
regulatory environments. The Society cafe has established their regulatory bodies for
proper checking of their work area. The legal policy of the Cafe has focused on proper
hygiene, safety and quality of their products and services.
Boston Consulting Group Matrix: The Boston Matrix provides the graphical representation of
products and services for examining the portfolio of the business in the market share (Holt,
2019). The four matrix of BCG matrix has described below in context with the Society Cafe.
 Star: This matrix includes the products which has the increasing market share along with
growth and profitability. The product in this category are market leading products and it
needs the proper investments for increasing the competitive advantages in the market.
The cafe has invested in the healthy snacks which is made up of organic materials and
organic coffee for enhancing the market area for their business.
 Question marks: This quadrant of BCG matrix has included the products having low
market share and it requires the inclusive resources and extensive investment for
increasing the sale of the products. The Cafe has to invest more resource in the snacks
items because there is huge competition of snacks in the marketplace with the
establishment of MC Donald, KFC etc.
 Cash cow: The products having the slow growth and high market share are coming in
the cash cow matrix of the BCG (Bhatiaand Thakur, 2018). The products come in this
matrix requires low investments. The cafe has to manage the slow growth of the cafe by

providing the local discounts and increasing the advertisement process by different kinds
of social media.
 Dogs: The product of this part has low market share and its growing capacity in market is
also very slow. The product under this matrix increase the percentage of loss of the
business by decreasing the cost of the products and services. The Coffee and tea of the
Society Cafe comes in this category. The reason for low demands of coffee among the
customers is due to more competition in this field.
SWOT analysis:
STRENGTH
 High service culture.
 Continuous sale.
 Team work.
 Quick and motivated staff.
 Direct relationships with clients.
 Quality product and services.
 Positive attitude towards Brand.
WEAKNESS
 Less market information.
 Face challenges while estimating profit
and capital.
 reduced market share.
 Cost disadvantage.
 Highly competitive.
OPPORTUNITIES
 Improving direct relationship with
clients.
 Improve Brand loyalty by offering
rewards.
 Enhance product line.
 Better experience of clients.
 Mobile applications and home delivery
services.
THREATS
 Low margin of profit.
 Hard to maintain cash flow.
 Costly supplier.
 Low price of competitors
VRIO:
Resources Valuable Rare Inimitable Organisable
Financial
resources
Yes No Yes Yes Competitive
sustainable

Technical
capability
Yes Yes Yes No Parity not
used
Brand
image
Yes No No No Competitive
disadvantage
Human
resource
No Yes No Yes Impermanent
parity
Valuable: In context with Society Café, the brand image of the Café is valuable as it can offer
the quality of services that is familiar with the existing service users. The leader of the company
effectively focusses on adopting efficient innovative technologies to provide an effective
characteristic to design its goods.
Rare: It is generally analysing that which of the technical ability of Society Café is not rare as
it can able to adopt advanced technologies to promote the brand in order to offer the quality and
innovative services towards clients.
Inimitable: The financial resources of the Society Café organization are high and it quite hard
to imitate. It generally aids in fighting with the rivals within the market and can also aid in
creating the improved gains.
Organisable: The Society Café offer the progression towards all the employees to make them
update about the significant trends and can enhance their skills as well as the competencies.
P2 Growth opportunities for the business by applying the Ansoff's growth vector:
The Ansoff's vector is the framework for analysing the product and market expansion by
evaluating the growth initiatives. This is very important tools in the market which decrease the
risk factor which is associated with the products (Vo and et.al., 2020). The concept of the
Ansoff's matrix can be understand by analysing the given below terms:
 Market penetration: The market penetration involves the selling of the products and
services in the existing market. The Society Cafe has decreased the cost of their products
by offering the 15% discount for increasing the sale of the products in the current
marketplace.
 Market development: The market development process is the way of selling the
products in the new market area by enhancing the new different techniques. The market
development process does not focus on the research and development department. The

market development process focus on different customer segment according to their
demographics for increasing the area of market (HuangYang and Tu, 2019). The cafe has
increased the way of advertising by social media, websites, and campaigns.
 Product development: The product development is the process of developing the
product for selling into the existing markets. In this process the company develop the
quality of existing product and produce the new product in the market. The society cafe
worked in the field of product development by providing the different kinds of flavours in
the coffee and introducing the vegan burger and pizza in the fast food for increasing the
sale of their products in the markets.
 Diversification: Diversification is the set of process which help the company to enter
into the new market for developing the new product in the market. This creates the
highest risk for the company because both product and market development are required
in this strategy (Anson, 2022). The society cafe diversifies its strategy in food meal by
introducing the vegan products in the market. The cafe has also added the different new
flavours in the coffee and tea for increasing the sales of the products.
The Society Cafe has more focussed in the product development by increasing the quality
of products for increasing the customers. The market development is the another strategy by the
Society cafe in the development of their business in the market. The cafe has expanded their
business in different cities by maintaining their product quality and price for enhancing the
market area of their business.
M1 Discussion of the growth option by analysing the analytical framework for understanding the
competitive advantages in context with the organisation
The market development process helps the Society Cafe in increasing the demands of
their products in the markets. The market development process helps the cafe in increasing the
brand image and boost the brand awareness in the market. The market development strategy is
less risky and increase the profit of the business. The cafe has developed the content marketing,
increase the online connection of the customers by building the different kinds of websites, email
marketing, advertising through the different social media, review meetings of their employees
and many more process for increasing the market development (Kim, San Kimand Sohn, 2020).
The all process in market development has increased the revenue and cash flow of the Society
Cafe.

D1 Evaluation of the pathways of the growth and associated risk with the specific alleviate way
Diversification process has been used by the Society Cafe for increasing the business
which is riskier strategy for the small business. As diversification process involve the product
development and market development simultaneously. The small business works with the small
amount of capital so it will create the huge economical change for the business. The risk
associated with the diversification process is the lack of experience by the small business
increase the Tax implications, cost of investments and chance of mistakes (Fullerand et.al.,
2018). The Society Cafe needs development in the technology and modification process for
developing the quality of products. The technology development process is expensive and not
affordable by the cafe. The cafe has to focused on the detailed market before entering into the
new market. The cafe has also focused on the customer needs with the different assessment
program before launching the new products in the cafe.
P3 Different funding source for the business with the advantages and disadvantages
The funding is the important components for smooth running and growth of any business
organisation. The different types of funding which is available for the small business are given
below:
 Angel investments: The large scale business or company provides the capital to the
small business for start-up and enhancement of the business by taking the equity in return
process. The advantages of this funding is that this investment do not take more time for
approval, involvement of personal investor in increasing the profit. The disadvantage of
this funding includes the loss of control of the owner over their business as well as profit
of the company will be shared (Bazelais, 2022). The loss of equity and control and
increase of pressure are also associated with the angel investments.
 Venture capital: This is the type of private organisation which provides the funds to the
small business company by taking the equity from the small business company in form of
share. The advantage of this funding is that it provides large amount of capital for long
term. The monthly payment is not necessary in this funding source (Kuzmina and et.al.,
2020). The disadvantages of this funding is that it increases the pressure on the company
for rapidly growing of the business as well as increase the interference of the investor
over the business.

 Bank loans: The bank provides the capital to the company or business in low interest
rates. The funding from the bank requires some security in terms of property papers and
essential documents before the funding of the loans. The advantages of this source of
funding that it is more flexible and do not take the equity from the company or business.
The bank loan gives the money in low rates as compared to the private investor (Salim
and Purwanto 2022). The disadvantage of this funding source is that it is time consuming
process because bank takes more time in verification process of documents. The another
disadvantage includes the collateral security which is given by the company before taking
the loan as the security amount.
M2 Evaluation of potential source of funding and justification of appropriate source of funding
with respect to organisation
The potential source of funding for the Society Cafe is the bank loan. The bank loan will
provide the adequate capital to the cafe for proper operation of the business (Jedin and
Balachandran, 2021). The bank loan provides the debt in low interest rates as well as there is no
any interference of bank in running policy and any other activities of the cafe. There is no need
of sharing the profit of the company with the bank so bank loan is the rightest source of funding
for the Society Cafe.
D2 Critical evaluation of potential sources with the justification for adoption of source in context
with the organisation
The funding sources is very essential components of the business development because it
economically supports the company for function properly. The angel investment gives large
amount of capital to the business but it takes the equity from the business. The second option is
venture capital which also provides the money to the business or company but this also requires
the ownership over the company (Ghani and et.al., 2021). The third option is bank loan which
takes time but gives the money to the business at very low rates. So, Society cafe have chosen
the bank loan option which requires monthly instalments according to their funding money.
P4 Business plan with financial information and strategic objectives for growth of business
The business plan for the society cafe and their strategic objectives which is helpful for
the development of the cafe business and increase the profits are as follows:

 Executive summary: The Society Cafe has developed their business by increasing the
quality of food and coffee. The cafe has provided the best and healthy snacks, meal,
coffee and tea to their customers for better experience.
 Business overview: The society cafe has incorporated in 2011 and serving the fantastic
coffee. The registered office of this cafe is in Oxford. The cafe has been giving their
service since 10 years. The cafe is popular for their best quality of coffee. The cafe has
also provided the healthy meals and snacks (Santoro, Bresciani and Papa, 2020).
 Mission: The mission of the society cafe is to satisfy their customers by providing the
best quality of snacks and coffee in reliable rate. The cafe has also focused in good
vintage experience.
 Vision: The vision of this cafe is to create the brand image of their products. The cafe
has to focused on the development of the business in the different cities for increasing the
customer base.
 Objectives: The objective of this cafe is to increase service quality and taste of products
by recruiting professional staff and adding different flavours.
 Funding: The funding source which has chosen by the cafe is bank loan. The bank
provides the loan to the cafe in time of needs.
 Marketing mix: The marketing mix is the group of ideas, process and tactics which
increase the area of business in market by promoting the brand or products. The 4P in
context with the cafe are given below:
 Product: The society cafe serves the different flavours of coffee, vegan meal item as
well as different kinds of snacks.
 Price: The price of Society Café organization must be set as per the profitability of the
café. The organization should set low pricing strategy as it is beneficial for the
organization which gives value to the client.
 Place: The Society Cafe has established in the main area. The company should also
expand their market in area which is near to college for increasing the customers.
 Promotion: The cafe has promoted their business through the banners, advertisements
and social media etc.

M3 development of appropriate business plan for growth and setting the strategic framework for
getting the objectives
Business plan is the set of documents which includes the target of the business and way
to achieve these targets. The business plan increases the opportunities of the business in the
market as well as also enhance the profitability of the business. The business plan of the society
cafe is based on analysis of different model like Pestle, Porters, BCG matrix etc. The plan has
included the development of the business in different area to increase the profit and full fill the
customer demands.
D3 Describing the depth of the business plan and how to apply this in achieving the objectives of
the business
The business plan is very necessary for proper functioning of business. Business plan also
help the organisation in creating the brand image of the business in the marketplace. The depth
business plan for the Society Cafe for achieving the business target include the business
overview, mission, vision, marketing mix, budget, funding sources etc.
P5 Describe the succession and exit option in the business with their merits and demerits
The positive outcome of business leads to the succession of the business while the
negative feedback, risk increase the chance of exit in the business.
Succession: The succession plan involves the business strategy for continuing the business
without any disruption. The different succession plan in context with the Society Cafe are as
follows:
 Franchising: It is the association between franchisor and franchise. The advantage of
this system is that it expands the business without equity and risk of debt. It reduces the
risk of failure of the business. The disadvantage of franchise is that it increases the
restriction on the business (Van Eden, 2018).
 Licensing: This is the succession plan in which the company or business give its
copyright to other business for increasing the profit of the business. The advantage of this
succession plan is that it increases the capabilities of other party. The demerits of this
plan is that owner loose the control over the products.
 Merger: It is the way of combining the two business entity for the development of the
business. The Society Cafe has merged with other branded coffee for increasing the

quality of the products. The advantage of this succession plan is that it increases the
opportunities and enhance the market area. The disadvantage of merging increases the
communication gap due to the different environment of the business.
Exit: The Exit is the way of recovering the investment in the time of loss. The exit plan is
described below:
 Dissolved: This is the process of liquidating the business by selling the all assets when
the business is not properly working. The advantage of this exit plan is that it is the
simple and quick way of recovering the investment. The disadvantage is that this plan
cannot refund the whole amount of the investment of the business (Turner, 2019).
M4 Evaluation of the exit and succession option with proper recommendation
The succession option which has chosen by the Society cafe is franchising and merging.
The franchising helps the cafe in expanding their business in different market area. The merging
with other branded cafe will increase the quality of the products and services.
D4 Critical observation of the succession or exit plan for the small business with justified
recommendation
This is very important for any organisation to create the succession and exit plan for
proper understanding the business strategy and problems associated with it. The Society cafe has
worked in the succession plan by adopting the merging and franchising policy to increase the
cells and profits of the business.
CONCLUSION
As per above report the business planning is very important aspects for the growth of the
business. The above discussion has included the PESTLE analysis, marketing mix, BCG matrix.
Porter's five force, Ansoff matrix for the evaluation of the business strategy. According to the
report the bank loan, angel investor, venture capital are the source of funding for the small
business. The Society cafe has chosen the Bank as funding source. Moreover, the report has also
focused on the succession and exit plan in context with the Society Cafe. The succession plan
includes the franchising, merging and licensing while exit plan includes the dissolved plan.

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