Planning for Growth.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Analysis of considerations to evaluate growth opportunities................................................1
P2. Application of Ansoff's growth vector matrix. .....................................................................4
TASK 2............................................................................................................................................6
P3. Sources of funding that are available to business..................................................................6
TASK 3............................................................................................................................................8
P4. Business plan.........................................................................................................................8
TASK 4..........................................................................................................................................13
P5. Exit or succession options with benefits and drawbacks of each........................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Planning is characterised as predetermined activity through which an organisation
performs practices to think about future activities for achieving desired results. In other words,
planning is practice of creating along with executing the plan to strengthen business existence
through meeting all objectives in effective ways (Angotti, 2018). All institutions plan various
activities and strategies that aids in achieving sustainable growth addition to development. To
gain understanding of planning for growth, Vero Caffe is selected which is small coffee shop
located at London, UK which serves to satisfy wants of local residents for distinct variant
together with flavours of coffee. Present report covers analysis of considerations that SMEs must
consider while evaluating opportunities of growth. It also includes various methods for accessing
funds, a business plan and ways to exit the business.
TASK 1
P1. Analysis of considerations to evaluate growth opportunities.
Planning is an essential function that includes deciding beforehand by managers to
determine future actions which includes what action, when to take, how to take and why to take
action. It is a concept of managerial action which incarnate skills of anticipating, stimulating and
controlling change' nature and direction. It empowers internal department to execute the tasks to
achieve goals through accurate direction. With proper planning, organisation like Vero Caffe can
attain milestones through emphasising towards developing innovative idea together with
planning things and activities with small number of manpower so that they can scale up the
business as well as satisfy needs of large customer base and retaining them.
Competitive advantage is said to the condition which puts the enterprise in favourable
together with superior position (Arzaghi and et. al., 2017). In this situation, business firms
leverage opportunities which are residing within macro environment for overcoming competitive
pressure. Through using Porter's generic Mode, managers of Vero Caffe can pursue competitive
advantage within selected market scope. The model assist in enhancing capabilities along with
gaining competing advantages over rival firms. It comprises following strategies:
Cost leadership: By adopting this strategy, organisation emphasis to cover large
population unit as well as mass market segment through offering diverse commodities at low
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prices. Vero Caffe can adopt cost leadership strategy for capturing larger segment through which
the entity can scale up its activities and can gain immense profits.
Differentiation leadership: The entity adopting this strategy generally focuses to serve
market through providing premium product quality and keeping high prices. In order to add
valuable attributes as well as targeting higher income group, Vero Caffe can use differentiation
leadership for gaining competitive advantages.
Cost focus: Through this strategy, business entities targets niche market by offering
suitable commodity as per preferences of particular market segment so to gain loyalty. At Vero
Caffe, adopting of cost focus strategy could help in attracting nice market and satisfying their
demand which leads in attaining competitive advantages.
Differentiation focus: With this strategy, business enterprise have aim to differentiate
population of target market segments and offering them distinct and unique products (Channon
and Jalland, 2016). When Vero Caffe have objective of building and maintaining brand name,
differentiation focus should be preferred for strengthening operation as well as sustaining in
market efficaciously.
From the strategies of Porter's generic model, Vero Caffe emphasis on cost leadership
strategy with the assistance of which the company produces premium quality commodities and
offers at low prices that helps in attaining competitive advantage aver rival business.
PESTLE analysis
An organisation exploits growth opportunity by analysing the factors that exists within
macro external environment and accordingly formulate strategies. PESTLE analysis is one of the
framework that help in analysing along with monitoring the surroundings in which the entity
functions. The managers of Vero Caffe can evaluate growth opportunities by focusing on the
factors that may impact revenue, performance and sales volume of company. The dimensions of
PESTLE analysis are analysed underneath:
Political: The factors that are connected with political system and government control are
political factors (Colantoni and et. al., 2016). In UK, there is generally stable political system and
these authorities promote development of small enterprises by providing various opportunities.
In context to Vero Caffe, the company needs to consider the rules, regulation, policies and
governance while performing operations and grab the opportunities and resources so to achieve
success.
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