Planning for Growth

This report discusses growth opportunities, funding sources, and business planning for Kaffeine London, an independent small-scale coffee shop in the UK. It explores different models and strategies for achieving growth in the retail sector.

Planning for Growth

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Section A.........................................................................................................................................3
Growth opportunities for company..............................................................................................3
Funding sources...........................................................................................................................6
Business plan...............................................................................................................................7
Section B........................................................................................................................................13
Exit or succession strategies available...................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15

INTRODUCTION
Growth is the procedure of increasing capabilities of the business in the form of
achieving profitability and productive outcomes of the enterprise operations. To achieve high
growth in the business needs well-defined planning that directs individuals to work in right
direction. To understand role of planning for the growth has an example of Kaffeine London. It
is independent small-scale coffee shop that is UK-based business and runs it’s business in the
food retailing sector. It is one of the fastest growing independent small medium sized enterprise
that is located in London. In this report will discuss about various growth opportunities with the
support of different model. It will further discuss business plan wherein highlights various
growth opportunities that available for the company.
Section A
Growth opportunities for company
Growth is denoted as enhancing the potential of company for entertaining profits out of
the business operations. Growth options are identified as all the possible approaches company
can adopt to entertain more profits for business. Keffein is one of the emerging small scale
enterprises based in London. Following are the points denote about the possible growth options
available for the business organisation in the sector.
GE/ McKinsey Matrix
This model would analyse about the different growth options available for the company
in market. Growth is simply a term denote about all the possible ways and approaches that can
support company in enhancing the potential of organisation for earning profits. Different factors
denote about all the possible ways that can support company in identifying future growth
opportunities available in market.
Long run growth rate: Keffein is a small scale organisation based in UK. The organisation is
associated with technology solutions. The sector is among one of the leading emerging market
sector. The way sector is growing in market it can be projected that the growth of the sector will
also increase in future the way technology solutions are gaining demands in market (Wooliscroft
and Ganglmair-Wooliscroft, 2018). All across the globe people become keener towards using

technology for doing different functional activities. Company has options to upgrade its
technology solutions to attract more demand in market for the products and services Keffein
offer in market.
Industry size: Industry size is another crucial element that denotes the growth of the sector in
market. The sales turnover statistic projects that the sector is one of the most emerging sectors in
United Kingdom. The market size of the technology solutions products are recorded as $32.8bn
as per the latest records of sales. The industry is growing rapidly at the rate of 5.9%
approximately in the present financial year (Ncube and et.al., 2017). The growth rate will further
rise up to 7.6% in the coming financial years. The sales records and growth rate of industry
denote that Keffein technology solutions have a great opportunity to address the effective market
share in future by developing its products based on the requirements associated with market.
Product life cycle: Product life cycle is another professional technique to assess the growth
opportunities available for organisation in market. On the basis of the different elements like
market share, product demand, industry growth rate and so many other factors product life cycle
is decided of the industry. Information technology solutions are among the fastest growing sector
part of the business environment (Oh and Kim, 2016). Demand of the sector is increasing day by
day. Not just in United Kingdom but requirements of technology solutions products are raising
all across the globe. All these critical aspects project that the sector belongs to growth stage in
product life cycle. The growth has just started as per the product lofe cycle so it can be projected
that in coming years the growth will further increase of the sector.
Ansoff Growth Matrix
This is a model project different approaches company can channelizes to entertain growth
in market. Various strategic techniques Keffein Company can adopt to enhance the growth rate
of company in market.
Market penetration: Market penetration is a crucial growth options suggested under Ansoff
growth matrix model. This approach focus on increasing growth opportunities of company with
the support of its existing products in market. In the strategy company give discounts and
affordable or friendly deals over its existing products (Holzmann, 2018). This is a strategic
choice available for the Keffein Company that will drive the organisation to increase the sale

potential of all its existing products that have gone into less demand. Many solutions products of
company have gone into outdated. Company will get to increase the sales of all such products
that have lesser demand in market by making potential improvement in utility of such solutions
products. This strategic choice will also improve the profitability of the company.
Product development: Product development is another crucial strategic option associated with
the Ansoff growth matrix model. In this growth option company get to introduce its new
products in the existing dealing market. On the basis of the requirements of the market company
get to introduce either the brand new product in the market or the upgrading the existing products
of company. This strategic options will allow the Keffein Company to sustain its existing
customer base along with it will allow to expand the customer base by attracting new customers
towards the technology solutions offer by company. In order to engage with potential customers
company need to make sure availability of the products in such a way that it can meet up the
needs and requirements of customers in market. Keffein Company deals in technology solutions
products which allow company to make continuous changes in its software to serve the best
quality in market. This strategy will improve the market share of company and further it will
allow improving the brand value of company in market.
Market development: Market development strategy involves entering into the new market with
the support of existing product portfolio of company. This is an aggressive strategic choice in
order to gain growth in market. Company needs to expand its business by opening up business
ventures in new locations in United Kingdom and beyond the UK. These strategic options will
require heavy investment of company’s financial resources and also organisation will require
recruiting human resources for managing various operations of company at new location (Copur-
Gencturk, Plowman and Bai, 2019). Market development is a risky strategic choice available for
the company but it will provide opportunity to expand the market share of company. This will
also support company in improving the brand value at global level. High risk always comes up
with great opportunities to achieve growth in market. This strategic choice will allow company
to boost its market presence. Company will get to address the new customers in new market for
all its existing products part of the product portfolio of company.
Diversification: Diversification is a critical strategic option available for the Keffein Company
to entertain growth in market. This strategic choice allows company to make a unique and

different image of company in market. In this strategy company enters into a new market by
launching a brand new product or service. This strategic choice would allow company to conduct
research on product development and also to research about the market to finalise the perfect
launching of new venture of company. This is a very aggressive option available for the
company to improve the growth of company. This strategy would allow company to enhance the
brand value in market. Diversification always allows company to introduce new dimensions that
can boost the growth opportunities available for the company.
Keffein Company is a small scale organisation based in UK. Company can go for market
penetration strategy to enhance the sale of all its existing products along with it must go for
product development strategy. Both the strategic choices available for company will allow the
organisation to enhance the growth in market. Market penetration would boost the growth of
company in short term and enhance the product demand in market in a short time. Product
development strategy would support company in enhancing the growth of company in long run.
Funding sources
The sources of funding highlights base of the capital or funds for the small-medium sized
business. It also assists to create infrastructure of the business to perform wide number of
business activities. Kaffeine London requires to develop strong capital infrastructure to launch
new products and services while strong funding sources helps to earn high profit in it’s sector.
Currently Kaffeine London looking for strong capital sources that supports to introduce
new products or services which fulfil needs of individuals and in exchange earn high profit
margin on such products.
Angle investors
It is one of the potential business investors among others who always seeks to invest their
funds into new start-up business because such businesses are highly involved in innovation and
posses’ aim to differentiate their brand from others (Brown and Lee, 2019). the major benefits of
the angle investors is that they are supportive, talented and good advisor as well as supervise all
business activities at personal level. But there are some limitations of angle investors such as
they give high interruption in business activities that directly impact on business’s decision-
making process.

Bank loan
It is another funding source that is quite good as compared others because it provides
legal financial support and gives huge contribution to promote new start-up businesses. It is
lifelong stable funding source that supports all type business either small scale or large scale to
stay long run in market by offering capital supports as per their needs. Kaffeine London can use
such source to develop strong potential in it’s business market (Camilleri, 2018). With the bank
mortgage organization can develop strong working environment and influences and become
liable to put more funds for bring innovation in product and services as well.
Crowd funding
It is another effective source of funding wherein people invest their money to purchase
market shares on risk to keep hope that they will achieve maximize in return investment.
Kaffeine London can use this funding source as well by attracting large group of people to buy
it’s shares to commit that they get good return back. With this source company can promote it’s
business expansion successfully in it’s sector. The major limitation of the funding source is that
it leads negative publicity of the business among people (Cooper, 2019).
Kaffeine London must use angle investors as funding source because there is angle
investors are responsible for the investing their funds as per the needs of owners. This source
supports new start up business to achieve stronger business functioning. With this funding source
company enables to generate high revenue and can extend it’s business growth in other sector as
well.
Business plan
Business plan is the effective approach that involves number of activities such as goals,
objectives, situational analysis, funding sources, marketing tactics. Implementation and control.
These activities support organization to achieve growth in it’s business sector.
Executive Summary: Retail sector is one of the most booming business markets among
others so competition is rising day by day. It is necessary for all business to bring new
strategies and tactics to improve their business capabilities then they will enable to gain
competitive advantage in the business sector. In this plan will demonstrates number of

business analysing tools that supports to examine all internal and external factors so that
company can achieve growth in it’s business market.
Business Idea: Kaffeine London has invested huge funds to introduce new organic product
such as organic coffee, organic salad etc. With this initiative organization wants to achieve
high market share on it’s products.
Vision: To invest huge funds in organic products and improve quality of services that
increases level of satisfaction in users for the organization’s products and services (Echeveste,
Rozenfeld and Fettermann, 2017).
Mission: Kaffeine London has mission to increase selling infrastructure of the company by
improving demand in customer for the new organic product such as coffee as well as build
strong customer base.
Business goals and objectives
 To improve 35% profit margin on it’s new product with the end of 2023.
 To improve sales revenue up to 40% with the end of 2025.
 To increase 30% market share with the end of 2024.
Situation Analysis
SWOT ANALYSIS
Strengths
 Kaffeine London is highly friendly
with customers trend so it constant
change in it’s products accordingly
customers trends. it is major strength
of the business.
Weaknesses
 Retail sector is become one of the
most competitive market in such
state company needs to keep strong
workforce who supports company to
stay in the competitive market and
brings competitive advantage on it’s
products.
Opportunities
 Online marketing is the best
opportunity for the company whereas
it can sell it’s products through
online media except traditional
Threats
 There are numerous threats that can
face by organization while running
it’s business in retail sector such as
high competition and Brexit. But

method. Thus, company can generate
high revenue from both online and
offline media (Gürel and Tat, 2017).
company has strong loyal customer
base due to it’s advanced quality
product and services that can support
to differentiate brand among others.
Pestle Analysis
Political factors
There are various factors such as Brexit that has brough vast change in the policies and
legislation and essential to impose time to time. So, it is essential for the Kaffeine London to
keep flexibility in it’s policies which helps to bring change effectively without investing
huge funds, as per the government norms. Thus, company can sustain in the market as well
as gain highly competitive advantage (Išoraitė, 2016).
Economic factors
Disposable income is increasing in the UK because large number of people are employed.
So, it is the best opportunity for the company because it can sell it’s organic product at
higher cost while maintaining quality and influences customers to buy healthy products. In
addition, Kaffeine London has established good online presence in e-commerce market
through online retailing approach. Currently this factor has become effective to access new
customers.
Socio-cultural factors
UK has strong financial performance as well as technological, so UK’s people are highly
updated for the E-commerce market and prefer to buy product from digital media instead of
traditional. It is great opportunity for the Kaffeine London to build string customer base that
will help to expand it’s business on large scale (Kuntsi, 2017). Apart from this, company
can use effective promotional tool to aware it’s customer about new organic product that
will create excitement in them for buying products. However, these tools lit bit time-
consuming but are cost-effective so company can recruit experts to operate digital media
effectively.
Technological factors
Emerging technology and development in technology are the major technology factors that
directly impacts on organization’s performance. As same Kaffeine London runs it’s business

in retailing sector so it faces issues as compared technology sector. But organization can
eliminate such issues by bringing constant change in it’s existing technologies that
automatically improves standard of products and services which attracts customers towards
company for buying such products.
Legal factors
To keep environment and public safe have imposed various laws by the UK’s government
for the different business sectors such as anti-discrimination policy, health and safety policy
and others (Liao and et.al., 2016). So, it is mandatory for the Kaffeine London to take all
safety measures while launching new organic products then company can expand it’s
business in it’s sector at wide scale.
Environmental factors
There are various initiatives such as launch organic products has been taken by Kaffeine
London that increases brand image in the UK market as well as supports to gain trust of
other retailers and customers on it’s product and services.
STP Marketing Segmentation
It is one of the major marketing process’ of dividing customers into different groups as per
their needs, choices, disposable income, education background and others then company
enables to improve level of satisfaction in individuals for the product and services. Kaffeine
London has practiced this segmentation strategy to target it’s audience for the new products.
Company divide it’s targeted audience into three segments such as behavioural, demographical
and psychological then these are further classified into subcategories or subsegments. For
example, demographical segment segregate customers into different categories such as
disposable income, education background, age and others (Lee. and Brown, 2017). These are
effective segments for expanding business more effectively so Kaffeine London targeted them
to earn large market share and builds loyal customer base. Targeting
In initial stage Kaffeine London identify all customer segments for targeting them effectively
in the retail market which is second stage of STP model. Kaffeine London targets all

coffeeholic customers because they always looking for good taste and ready to pay more
money to get effective taste of coffee. In addition, they also expect that they get such coffee
which does not give negative impact on their health. Positioning
It is final stage of STP model that supports organization to develop exclusive identification of
the brand or products in it’s sector. To bring growth in it’s business requires to achieve
exclusive identification of brand by Kaffeine London in the UK market.
Marketing Mix Price
Skimming price strategy is implemented by Kaffeine London so that it can better functioning
in it’s market. It uses psychological strategy as well that can support company to influence it’s
customer to pay extra cost rather than expectation. Place
Strong online presence is the major strength of the Kaffeine London that factor helps to
influence selling revenue of new organic products. Product
Organic products like organic coffee is the new product of the Kaffeine London that will
create positive image in the customer’s mind for the brand. With this product company can
influence demand in customers easily (Phadermrod, Crowder and Wills, 2019). Promotion
Digital marketing and offers & discounts for the regular customers are applied by company to
improve selling of new products in the UK market. Process
Online delivery and traditional shopping facilities are offered by Kaffeine London so that it
can access large number of customers and influences them to buying it’s new launched
product. Physical evidence
Kaffeine London has set up good infrastructure in the business market and keeps more hygiene
in the workplace that attracts customer to visit shop and take coffee while personal hygiene
encourages such people as well who prefer to online shopping.
 People

Kaffeine London always keeps transparency in salary structure and decision-making process
so that workers can maintain their wellbeing and work effectively.
Financial plan
It is essential for the company because there is common but important reason such as when
organization has well-defined financial plan then it can gain all long-term and short-term goals
within timeframe. Effective financial planning supports company to save from internal and
external crisis as well as enables company to earn high profitability by developing budget.
Start-up costs
Overall expenditures are acquired by Kaffeine London wherein involves in business plan. It
comprises R&D activities to give standard quality organic coffee to the customer. Start-up
cost has discussed below:
Basis Cost
Workers €700
Social media and
Internet
€1400
Conveyances €1900
Total €4000
Profit and forecast
It is one of the main effective approach of analysing financial position of the company in the
business market because when company aware about it’s position then can develop strategies
for grow business. With this approach Kaffeine London analyse it’s all expenditure and
incomes of the company to gain high financial profit. Generally profit and loss forecast are
developed to assume net profit and loss of the company which can negatively or positively
affect on growth tactics.
Cashflow forecast
Cashflow forecast is the term of financial report that is important for the Kaffeine London to
determine it’s all funds that have utilized or remained. It also supports to examine financial
positioning of brand in the business market. Balance sheet is one of the major example of
financial report whereas highlights total assets and liabilities of the company that can direct

impact on decision-making process of the Kaffeine London.
Monitoring and controlling
To get sustainable growth in the business requires to monitor and control all operations that
are comprised in the business plan. Kaffeine London controls and supervises all activities that
are practiced by staff so that can be received expected outcomes. Customer trend and needs
always change according to time so it is important for the organization to keep flexibility in
their business activities so that all changes can be adopted easily ()Vallati and Grassi, 2019).
Benchmarking is also effective approach to monitor business plan effectively. Such strategies
and approaches help Kaffeine London to maintain high standard business functioning as well
as will assist to gain large market share on it’s new products.
Section B
Exit or succession strategies available
For every small business, the ultimate motive is to keep the business going and to earn profits
ultimately, but however, if the situation are not in favour of the company or if the sales and
profits are dwindling, then the owners might even think or plan of closing down the entire
business (Xie, Ma and Lu, 2016). Alternatively, the present owners might even think of passing
down the business to someone else. In such cases, there are a variety of exit strategies or
succession strategies, depending on the situation, that can be utilised by the Kaffeine coffee shop
as well. These can be analysed in following manner:
Liquidation: This strategy can be adopted when the owner knows that the business and it asset
are not of much value and hence decides to liquidate them (Satola, Wojewodzic and Sroka,
2018). Here all the liabilities are set off from the amount that is recovered by the selling of the
assets and then the owner walks away with the residual money that is left after meeting all the
liabilities.
Advantages Disadvantages This is a very simple process and
there is no complication of engaging in
negotiations as well. The time consumed in winding up The goodwill or any popularity of
business does not benefit the owner
under this method of winding up. The owners are left with little or

of the business is very less
comparatively. There is no transfer of control as
well since the business gets liquidated
and hence no longer exists.
no money as the obligation and
liabilities in this scenario are generally
much higher.
Selling business in open market: Here, the business is directly sold in the open market with all
its assets and liabilities intact as it is to the buyer of the business (Rahyuda, Indrawati and Satrya,
2017). The owner does not have to worry about meeting liabilities and walks away with the
entire amount on their own.
Advantages Disadvantages The profits are highest in this case
for the owner where the best and most
profitable amount can be selected
amongst the multiple bidders of the
company. If the company is operating
profitably and has good value, the
investor or buyer can pay even more
amount. The benefit of goodwill can also
be utilised by the owner of company. This can create resentment
amongst the other investors or even
employees of the company who have
worked loyally towards the success of
company. The time consumed is much more
as the assets have to be valued,
approved and then deal is finalised.
Transferring ownership to employees or management: This is a succession option where the
owner transfers all the rights as well as the assets and liabilities on the name of the management
of the company i.e. the employees (Pickard, 2019).
Advantages Disadvantages Giving entire organisation to its
employees is the highest form of
reward that can be given to the
employees. The future of the company can be
secured as the owner knows that the The employees are after all simply
employees who get fixed salary an
hence their vision and risk taking
might not be as broad as is required. If management becomes negligent
or overconfident, company can fail.

employees will be able to meet all the
challenges.
Selecting successor: According to this, a person is appointed as the successor or future owner of
the company after his capability to lead the organisation has been adequately tested and trained.
After owner retires, all the responsibility is taken on by the appointed successor (Koładkiewicz
and Wojtyra, 2016).
Advantages Disadvantages The successor is an internal party
and hence is more trustworthy and
aware of the internal matters of
company. The owner can still act as a guide
and exercise power over the decisions
being taken in the company. The selection of an employee as a
successor can demotivate other
employees and might also create a
negative environment in the
workplace. The selection of one person is a
very crucial and risky task where the
failure to correctly identify and select
them can jeopardise the future of the
entire company.
The analysis of the different exit and succession options that was done above indicates that the
best strategy for Kaffeine coffee shop in case they want to exit from their business would be to
sell it in the open market since company has already created a goodwill and position in the
market. However, if they want to select succession as an option then the best strategy would be
to appoint an individual as successor as the company can still continue to operate and owners can
guide in future as well.
CONCLUSION
Growth is all about achieving the better potentials to entertain sales in market. Different
growth options like market development, market penetration, product development and
diversification is available for company to achieve the growth in market. Precise plan is prepared
in this report that will involve different strategies that can boost the growth of company.

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