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Planning for Growth - Aroma Cafe coffee shop

   

Added on  2021-02-20

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PLANNING FORGROWTH with references to Origincoffee roasting are mentionedbelow:

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1P1 Analyse key considerations which will help an organisation in evaluating growthopportunities...........................................................................................................................1P2 Apply Ansoff's matrix to evaluate opportunities for growth which available fororganisation............................................................................................................................4P3. Assess the potential of funding sources which are available for business activities andmention the benefits and drawbacks of each source..............................................................6P4. Business plan for growth with financial information and strategic objective for scaling upa business. ..............................................................................................................................7P5. Assess exit or succession options which are available for small business explain thebenefits and drawbacks.........................................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13

INTRODUCTIONPlanning is key to success for any business organisation; this is because future is alwaysunpredictable. However, within an organisation planning for growth plays a very essential role. Itis a strategic process which enable the owners of respective business to plan and formulateseveral standards in order to attain organic growth (Arend and et.al., 2017). Through this processbusiness organisation allocates their limited resources towards a particular direction in order toaccomplished desired objective. The main focus of planning is to generate more and morerevenue in long run. This report is on The Aroma Cafe coffee shop which is based in London,England. The company was founded in 2000 by Sergio Gratton. It basically provides coffee,espresso, tea and pastries. Therefore, this report will basically cover the following aspects whichwill directly help the respective organisation in achieving the desired business objective withinspecified time phase. It will primarily evaluate opportunities for growth through implementationof Ansoff's growth matrix. The potential sources of funding which can be made available tobusiness are identified. Furthermore, a business plan will be made in order to communicateintend of respective organisation. Lastly, several exit or succession strategy will be adopted inorder to identify key benefits and drawbacks of each strategy. MAIN BODYP1 Analyse key considerations which will help an organisation in evaluating growthopportunities.There are several opportunities which a small business organisation can effectively adoptin order to capture reasonable market share in the potential market. Therefore, in order toeffectively analyse marketing situation a proper analysis of business environment shall be made.Through this analysis, exact needs of potential customers are identified. However, in order toeffectively find out key considerations The Aroma Cafe might adopt porter five force model andPESTLE analysis to identify the current opportunities which are available in the market. Porter's Five Forces model: Porter's Five Forces is a model which is used to identifyand analyse the five competitive forces that guides to shape industry and determineorganisation's strengths and weaknesses (Benner and Pastor, 2015). This model was published byMichael E. Porter in 1980. These forces are used by Aroma Cafe to measure competitionintensity, quality and profits of an industry. The Porter's Five Forces factors are:1

Bargaining power of Suppliers: Coffee and beverage industry usually faces weak forcesof bargaining power of suppliers. This is basically because there is large availability ofsuppliers within this industry. Wherein each of the suppliers compete with each other inorder to generate revenue and several strategies are implemented by them. In context toAroma Cafe the company faces difficulty and has to purpose raw material at higher cost.This usually weakens the overall supply. Bargaining power of Buyers: Moderate force of buyers bargaining power isexperienced under coffee and beverage industry. Therefore, due this force severalcompany under this industry have to drive down the prices in order to attain the desiredbusiness revenue with efficiency. With references to Aroma Cafe if the prices are adoptedkeeping in mind needs of the customers then more customers would be attracted towardsthe cafe. Threats of new entrants: High force of new entrants within coffee and beverageindustry is identified. This is basically because new competitors easily entrants thisindustry which eventually reduces the profitability of all the existence companies.Therefore, in reference to Aroma cafe the company shall implement several strategies sothat new cafe do not enter the market easily. Threats of substitute products: Strong force of threat of substitute within coffee andbeverage industry is analysed. This because there are several competitors which providesimilar product into the potential market. (Geneletti and et.al.,2017). Aroma cafe shallaim at making an extraordinary product so that no substitute for those products areavailable in potential market. This will effectively help in increasing the overallprofitability. Competitive rivalry: Coffee and beverage industry faces strong force of competitiverivalry this is because there are vast coffee chains which are operated under UK market.These chain usually impacts the overall profitability. In context to Aroma Cafe thecompany should effectively aim at capturing a particular segment in market and satisfythe needs of the customers so that they become brand loyal through which the companycan achieve growth. 2

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