Business Growth Planning Strategies

The assignment report discusses the significance of proper planning for businesses to grow, succeed, and sustain in a competitive market. It emphasizes the use of PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis and Porter's generic model to identify opportunities and threats. The report also highlights various funding options available for businesses to expand their operations and design business plans for goal achievement. In addition, it provides information on exit or succession options in case of facing issues.

Planning for Growth

Table of Contents
INTRPODUCTION.........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Evaluating growth opportunities and considerations.............................................................3
P2 Evaluate opportunities for growth applying Ansoff’s growth vector matrix.........................5
M1 Options for growth using analytical frameworks to demonstrate competitive advantage....6
D1 Critically evaluate specific options and pathways for growth, taking into account the risks
of each option and how they can be mitigated............................................................................6
LO 2.................................................................................................................................................7
P3 Sources of funding available to businesses and discuss benefits and drawbacks..................7
M2 Sources of funding and justification for adoption of an appropriate source of funding.......8
D2 Critically evaluate potential sources of funding with justified argument for the adoption of
a particular source or combination of sources, based on organisational needs...........................8
LO 3.................................................................................................................................................8
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business...................................................................................................................8
LO 4...............................................................................................................................................12
P5 Exit or succession options for a small business explaining benefits and drawbacks...........12
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations.............................................................................12
D4 Provide critical evaluation of exit or succession options for a small business and decide an
appropriate course of action with justified recommendations to support implementation.......13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................15

INTRPODUCTION
Planning for growth is outlined as a business strategy which assist manager and owner of
organisation to make plan and track growth in terms of revenues (Barbour and Deakin, 2012).
This can help business to allocating limited resources for centred efforts in order to adapt
changes of industry which are through digital disruption and differentiate from competitors. It is
very important for organisation to do proper planning for growth in order to survive in
competitive market. The given report is made on Small Street Espresso which was founded in
2012 at United Kingdom. It is a small organisation which serves delicious cakes, breads, pastries,
sarnies to their consumers. The aim of this assignment is to highlight growth opportunities,
various methods of funding and business plan. It also discusses about ways through exit and
succession of organisation is made.
LO 1
P1 Evaluating growth opportunities and considerations
It is a problem for small enterprise to adopt available opportunities from competitive
market. In order to solve such issues, they need to make proper strategy for business for survival,
growth and success. The factors considered for success and growth are as follows:
Competitive Advantages
It is defined as conditions which allow organisation to provide products and services at
low price in effective manner. This is regarded as favourable position which seeks organisation
to earn more profits then their competitors (competitive advantage, 2019). Small Street Espresso
has followed different strategies for competitive advantages which are as follows:
Competitive Advantages as a Foundation of Growth
For growth of respective organisation, it has used Porter's Generic Strategy that consists
of four strategies which are described below:
Cost Leadership- The objective of this strategy is to become low cost producer in
market. Small Street Espresso can use such strategy for becoming low cost producer by doing
high productivity, use of capacity of utilisation, using technology, lean production methods. In
this price is low and quality is high to attract large number of consumers.
Cost Focus- It is the strategy where organisation can produce similar products at high
prices. In order to adopt such strategy, Small Street Espresso need to focus on particular

consumers as all cannot pay high prices for same products which is available to others industry.
The wastage is low because of customisation of products. As it is focusing on their loyal and
trustworthy consumer who purchase goods from them so they can charge high prices which leads
to create profit increment. This create opportunity to sustain loyal consumers.
Differentiation Focus- In this strategy, business differentiate themselves from one or
small number of target market segments (Porter's Model of Generic Strategies for Competitive
Advantage, 2018). Small Street Espresso has an opportunity to grow through this strategy as they
focus on particular consumer and different from their competitors. For adoption of such strategy,
market analysis is important to know about consumers’ requirements and produce accordingly.
Differentiation Leadership- This strategy helps respective organisation to target large
number of markets and achieve competitive advantages through differentiation. This helps them
to design new products that is low calorie chocolate and cookies and services for entering into
new Spain market.
After analysing various strategies, it can be concluded that, Small Street Espresso should
follow differentiation leadership strategy for their consumers. This helps them to move as per
their consumers and target large market segments. They can also design new goods and services
for their consumers in effective and efficient manner.
Competitive Advantage with Opportunities for Growth
For growth opportunities, Small Street Espresso has used PESTLE model in order to
analyse market and their competitors. There are six components of this model which are
described below:
Political Factors- If Small Street Espresso wants to expand their business in other
market such as Spain then they have to analyse political factors like policies, barriers, rules and
other for effective decision making. It assists in conducting business activities in effective
manner and grabbing opportunities for production (Beatley, 2014).
Economic Factors- For expanding business in Spain, Small Street Espresso need to
analyse power of consumers to buy goods and services. It aids in designing proper strategies
according to economic rate of that place. This helps respective organisation to know about their
consumers and make planning accordingly.
Social Factors- It is defined as belief, values and attitudes of individual with various
factors like population growth, age distribution. For expanding business, requirement of

consumers should be known by Small Street Espresso to provide them high quality products. As
people of Spain loves pastries, breads which is good opportunity for them to expand business in
such place.
Technological Factors- In case of Small Street Espresso, they should use technology in
terms of online delivery and payments for their consumers. There are many buyers who cannot
go to buy product in this case if they get online delivery then they prefer it. Therefore, it is good
opportunity in their business though it might be costly but create future benefits.
Environmental Factors- This is related with climatic change, weather and others. As
business is operating in market so there are some rules and regulation which should be followed
by Small Street Espresso for expanding their business in competitive market (Esmaeeli and et.
al., 2015). The products and services manufactured by respective organisation does not create
any harm to environment.
Legal Factors- Business running in society should be legal by following various laws
such as health and safety, consumer law, employment law. The staff working in Small Street
Espresso should be treated well. If they expand business in Spain for increasing growth and
success then they have to follow all laws for their employees and staff for maximum production
that helps in creating image and goodwill of firm. With this organisation has opportunity to
create goodwill and brand image in the market that helps in increasing sales and profitability of
business.
P2 Evaluate opportunities for growth applying Ansoff’s growth vector matrix
Ansoff's Matrix is referred as techniques that assist in rendering helps and guidelines to
executive, senior and managers for implementing effective strategies for expanding and growing
their business in competitive market (Keough, 2015). It assists in evaluating opportunities for
success and growth of business. This model is used by Small Street Espresso for growth of their
business which is described below:
Market Penetration- This is referred as strategy where firms grow their business in
existing market with same products. It is an opportunity for Small Street Espresso to grow their
business in UK market by providing existing products in order to fulfils their consumer
requirement. This can be done by creating awareness, promotion, lowering price and others.
Market Development- It is defined as strategy where firm expand their business with
existing product in new market. This can be adopted by Small Street Espresso for increasing

market share and profits. As they are planning to expand their business in Spain so they can
perform it in effective manner. This requires innovative packaging, new channel of distribution,
strategies.
Product Development- It is referred as strategy where firm introduce new good in same
market. Small Street Espresso can produce new product such as low calories chocolate, cookies
for their consumer in existing market for increasing growth and success in competitive market. It
requires proper market research, new and innovative products, right manufacture and others.
Diversification- It is defined as strategy where business produce new products in new
market. It is risky strategy because organisation does not have any knowledge about new market
(Ansoff Matrix, 2018). Here, Small Street Espresso need to analyse market in effective and
efficient manner. They are planning to expand business in Spain with low calories chocolates
and cookies for their consumers to fulfils their requirements.
After analysing various strategies, it is very important for Small Street Espresso to use
market development strategy in order to grow and success in competitive market for survival and
sustainability. As product is already known in market and consumers are aware of it. This is an
opportunity for respective organisation to enter into new market with same products.
M1 Options for growth using analytical frameworks to demonstrate competitive advantage
In order to sustain in market to gain competitive advantage, Small Street Espresso has
adopted market development strategy for growth and opportunities. With help of such strategy
they can enter into new market with same products which can help them to achieve their set goal
and objectives. In order to get competitive advantage from market, they have to choose market
for increasing profits and gains. Therefore, in this way this option of growth creates various
opportunities for Small Street Espresso to increase their market share and earn maximum profits.
D1 Critically evaluate specific options and pathways for growth, taking into account the risks of
each option and how they can be mitigated
There are various options available for growth of business. The respective organisation
has chosen market development strategy for their business (Mitchelmore and Rowley, 2013).
This can help firm to enter into new market and create relationship for survival and
sustainability. Similarly, this is risky strategy as market is totally new and providing existing
products. In order to mitigate risk, they need to analyse market through proper research and
development.

LO 2
P3 Sources of funding available to businesses and discuss benefits and drawbacks
In order to expand business in market and achieve success and growth, Small Street
Espresso need to take funding from various sources to accomplish their goal and objectives.
There are various sources of funding available to business which are described below:
Bank Loan- This funding is borrowed from banks for specified time period and charging
interest rate at fixed rate (Mobin, Li and Komaki, 2017). Small Street Espresso can take money
from bank for expanding their business in proper manner as it is secured and interest should be
paid timely. The benefits and drawbacks are:
Benefits- It includes:
 It charge low interest rate as compared to others financial institutions. Through regular payment of interest, organisation increases credit scores.
Drawbacks- These includes:
 More legal documentation and formalities.
 Monthly instalments should be paid and in case of failure, property can be seized.
Angel Finances- This is given to new start-ups who want to start their business. Small
Street Espresso can take such funds because it does not possess risk and collateral security. The
benefits and drawbacks are:
Benefits- This includes:
 Lack of collateral security.
 Lack of monthly interest and payments
Drawbacks- This are:
 Requires more control.
 Takes more time to search best angel investors.
M2 Sources of funding and justification for adoption of an appropriate source of funding
There are various types of funding available to organisation such as bank loans, angel
finance, peer to peer lending, venture finance and others (Olesen, 2014). Small Street Espresso
should adopt bank loan funds as it is simplest and easiest way to take funds from financial
institutions and interest charged for it is also low as compared to others. Therefore, through this
they can run their business in effective and efficient manner.

D2 Critically evaluate potential sources of funding with justified argument for the adoption of a
particular source or combination of sources, based on organisational needs
Small Street Espresso has adopted bank loan funding for their business which is very
easy and simple way to borrow money from banks at interest rate. Though this funding carries
some pros as it requires more documentation and legal formalities to take funds from bank and
failure to payment of interest on monthly basis leads to seize of property or assets.
LO 3
P4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business
In order to expand business, organisation need to make plan which should contain
information about objectives and financial information. The business plan prepared by Small
Street Espresso are as follows:
Business Concept
Small Street Espresso is expanding business in Spain so it need to make proper
information about mission, vision, products, services, strategy and others.
Organisation Product and Services- The product supplied by Small Street Espresso is
less calorie chocolates and cookies to their consumers. Similarly, service which they are going to
offer is online delivery and electronic payment system for users to make order online and get it
timely (Ozanne, Biggs and Kurowski, 2014).
Mission and Vision- The mission is to develop and maintain relationship with their
consumers and vision is to provide quality products to users for fulfilment of requirements.
Strategic Objectives- To increase market share by 25% in next three years by expanding
business in Spain.
STP- The STP of Small Street Espresso is as follows:
Segmentation- It is new launching products for their consumers such as low calorie
chocolate and cookies (Rydin, 2013). It has segmented market on basis of consumer need and
demand to achieve goal and objectives.
Targeting- They have targeted 3 to 50 years of age group for their new product that is
chocolate and cookies. They have all aged group as cost of products and service is not very high.

Marketing- In order to market, they have used online media such as Facebook and
Instagram to create awareness about new market and products.
Market Analysis
For market analysis, SWOT analysis has used which is described below:
Strengths Weaknesses
 Offer high quality products
 It follows hygiene in producing
products.
 Low channel of distribution
 Using traditional method for producing.
Opportunities Threats
 They can expand market in other place.
 Use new technology for online
services.
 Large number of competitors
 Low market size.
Financial Plan
Pre launch cash budget
Cash Flow budget
Particulars Jan Feb Mar Apr May June July
Cash inflows
Investment 8000
Credit sales 2000 3000 3000 4500 1500 3500 4200
Total inflows 10000 3000 3000 4500 1500 3500 4200
Cash outflows
Fixed : Equipment’s 2000 2500 1500 2000 1200 1500 800
Variable : Direct material 300 300 200 300 150 500 300
Total outflows 2300 2800 1700 2300 1350 2000 1100
Net cash flow 7700 200 1300 2200 150 1500 3100
Opening balance 0 7700 7900 9200 11400 11500 13000
closing balance 7700 7900 9200 11400 11550 13000 16100

August September October November December Jan
1000 2000 800 1200 1500 3600
1000 2000 800 1200 1500 3600
200 300 100 600 300 2000
400 500 100 100 400 300
600 800 200 700 700 2300
400 1200 600 500 800 1300
16100 16500 17700 18300 18800 19600
16500 17700 18300 18800 19600 20900
Feb Mar Apr May June July
3000 3000 4500 1500 3500 4200
3000 3000 4500 1500 3500 4200
2500 1500 2000 1200 1500 800
300 200 300 150 500 300
2800 1700 2300 1350 2000 1100
200 1300 2200 150 1500 3100
20900 21100 22400 24600 24750 16250

21100 22400 24600 24750 26250 19350
Post launch cash budget
Particulars Jan Feb Mar Apr
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000
Total inflows 9200 2000 7500 3000
Cash outflows
Fixed : Equipment’s 2500 1200 1500 2500
Variable : Direct material 350 300 250 150
Total outflows 2850 1500 1750 2650
Net cash flow 6350 500 5750 350
Opening balance 0 6350 5850 11600
closing balance 6350 5850 11600 11950
May June July August September October November December
5000 6500 1200 3200 1500 8200 1250 3210
5000 6500 1200 3200 1500 8200 1250 3210
1100 1500 1200 600 500 500 1200 700
100 500 500 250 450 250 1300 500
1200 2000 1700 850 950 750 2500 1200
3800 4500 -500 2350 550 7450 -1250 2010

11950 15750 20250 19750 22100 22650 30100 28850
15750 20250 19750 22100 22650 30100 28850 30860
Jan Feb Mar Apr May June July
1200 5000 2500 4500 1500 3500 4200
1200 5000 2500 4500 1500 3500 4200
2000 2500 1500 2000 1500 2000 200
300 300 200 250 360 250 500
2300 2800 1700 2250 1860 2250 700
-1100 2200 800 2250 -360 1250 3500
30860 32160 32360 33660 35860 36010 37510
29760 34360 33160 35910 35500 37260 41010
Monitoring and Control- This is last stage of business plan which requires planner to
monitor each and every activities and work in proper manner and should be controlled
effectively and efficiently.
LO 4
P5 Exit or succession options for a small business explaining benefits and drawbacks
Small Street Espresso has faced different issues such as consumers, quality, behaviour of
employees due to which they need to adopt succession option in order to survive at marketplace.
It is described below along with benefits and drawbacks:
Joint Venture- This options can help respective organisation to pool resources of two
organisations for specified problems along with following of rules, regulation and laws (Seto and
et. al., 2014). This is for particular time period and there is sharing of risk and cost. The pros and
cons are:

Benefits- This includes:
 Equal sharing of risk and cost.
 This helps in creating opportunities for new capabilities and expertise to increase their
knowledge.
Drawbacks- The drawbacks includes following:
 This method is very expensive.
 This is for short time period so difficult to build correct relation with parties.
Merger- This an agreement where two existing organisations form one new firm (Špicar,
2014). It can be adopted by Small Street Espresso to solve various issues and problems of
business. It helps in gaining profits and create opportunities for business. It has both advantage
and disadvantages which are:
Benefits- The benefits are:
 It assist in increasing goodwill and market share of business.
 There is operation of business activities at bigger level.
Drawbacks- These are:
 Rise in unemployment because of merger.
 Loss in productivity of employees.
M4 Evaluate exit or succession options for a small business comparing and contrasting the
options and making valid recommendations
There are various options available for Small Street Espresso for succession such as
merger, joint venture, amalgamation, strategic alliance, partnership and other. As it is small
business which need to get success and growth in market. The organisation should adopt joint
venture options in order to solve particular issues and problems of business. With rise in need
and demand of consumer, it fail to provide them in effective manner. Therefore, this can help
them to sustain and grow in market.
D4 Provide critical evaluation of exit or succession options for a small business and decide an
appropriate course of action with justified recommendations to support implementation
Small Street Espresso has adopted joint venture succession option for their business. As
it assists in solving particular problem of organisation in effective and efficient manner (Ying,
Chaolin and Xiaojiang, 2014). There are some negative impacts of this options to business. This

is expensive options available for organisation and creation of building relationship with partners
take time.
CONCLUSION
The report concluded that organisation should make proper planning in order to grow,
success and sustain in competitive market through use of PESTLE and Porters generic model.
There are various sources of funding available for organisation to expand their business in
market and designing business plan for goal achievement. In case of facing any issues by
organisation then they can select exit or succession options.

REFERENCES
Books and Journals
Barbour, E. and Deakin, E. A., 2012. Smart growth planning for climate protection: Evaluating
California's Senate Bill 375. Journal of the American Planning Association. 78(1).
pp.70-86.
Beatley, T., 2014. Habitat conservation planning: endangered species and urban growth.
University of Texas Press.
Esmaeeli, M. and et. al., 2015. Multistage distribution substations planning considering
reliability and growth of energy demand. Energy. 84. pp.357-364.
Keough, S. B., 2015. Planning for growth in a natural resource boomtown: Challenges for urban
planners in Fort McMurray, Alberta. Urban Geography. 36(8). pp.1169-1196.
Mitchelmore, S. and Rowley, J., 2013. Growth and planning strategies within women-led SMEs.
Management Decision. 51(1). pp.83-96.
Mobin, M., Li, Z. and Komaki, G., 2017. A multiobjective approach for multistage reliability
growth planning by considering the timing of new technologies introduction. IEEE
Transactions on Reliability. 66(1). pp.97-110.
Olesen, K., 2014. The neoliberalisation of strategic spatial planning. Planning Theory. 13(3).
pp.288-303.
Ozanne, E., Biggs, S. and Kurowski, W., 2014. Competing frameworks in planning for the aged
in the growth corridors of Melbourne. Journal of aging & social policy. 26(1-2).
pp.147-165.
Rydin, Y., 2013. The future of planning: Beyond growth dependence. Policy Press.
Seto, K. C. and et. al., 2014. Human settlements, infrastructure and spatial planning.
Špicar, R., 2014. System dynamics archetypes in capacity planning. Procedia Engineering. 69.
pp.1350-1355.
Ying, W., Chaolin, G. and Xiaojiang, L., 2014. Research progress of urban growth boundary at
home and abroad. Urban Planning International. 29(4). pp.1-11.
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<https://searchcio.techtarget.com/definition/competitive-advantage>.
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competitive-advantage>.
Ansoff Matrix. 2018. [Online]. Available through:
<https://www.tutor2u.net/business/reference/ansoffs-matrix>.