Planning for Growth

PLANNING FOR GROWTH

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1. Key Business Growth Drivers..............................................................................................1
P 2. Analysing Growth Opportunities With Ansoff Matrix.........................................................3
LO 2.................................................................................................................................................5
P3 Potential Sources of Funding..................................................................................................5
LO 3.................................................................................................................................................7
P4 Design Business Plan for Growth...........................................................................................7
LO 4.................................................................................................................................................9
P5 Assess Exit or Success Options..............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Growth planning is a business strategical action which helps business owners to evaluate
the economic growth and increase productivity. Planning also helps to optimally utilize all the
available resources in the operation of business activities which helps to grow. Growth planning
also ensures the market trends which will help to implement business transition to increase the
efficiency of the products and services. This includes market analysis of external factors of
business environment helps to understand the competitor’s strategical policies. This report has a
brief description of business opportunities which will help Prufrock Cafe. The study will also
help to evaluate all the sources of funding for the cafe to launch its new coffee products in
market. In Addition, a business plan will also be designed in this report to understand all the
market strategies which can grow business with the opportunities available.
LO 1
P 1. Key Business Growth Drivers
Business organization needs to analyse the external factors in the market to formulate
effective strategies as it also helps to determine opportunities available. Prufrock Cafe analysed
business growth drivers which helps to increase the efficiency in market and support growth in
market effectively. This also help to ensure competitor's marketing strategies.
Vertical Integration
Vertical integration is the process of developing production stages and different supply
change in business which helps to successfully integrate with market factors and increase the
efficiency of the company in market. It is effective business structure which is formulated by
business to increase the value of products and services and reduce cost to gain better profit
margins and attain better opportunities for growth effectively. Prufrock cafe has the opportunity
to vertically integrate with all the value chain factors, like suppliers, distribution channels,
marketing, retailing to have better control over business financial and improve quality of
products and services according to customer's needs and wants and to increase customer base and
to achieve core competency in market effectively.
Forward Integration
Forward integration is the process when high value Chain business move forward in
order to expand its business and integrate with lower value chain businesses. Like manufacturing
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business has the opportunity to expand its business by integrating its business to wholesale or
distributors to reduce middleman in the business and increase profit margins this also gives a
better opportunity to business to control the function effectively.
Backward Integration
It is also called upstream integration when a business vertically integrates with higher
supply chain businesses to expand its business in market. For example, Prufrock has the
opportunity integrate backwards as it is currently a retail coffee shop and it can become
distributors of coffee beans and other products to increase the profitability and grow effectively.
Balanced Integration
This is the types of integration in which the business has the opportunity to grow
forwards and backwards by collaborating with different business and increase market share
effectively. Prufrock can also merge with other cafe to facilitate this type of integration and
support growth effectively.
Advantages
 This helps the company to avoid the competition from supply chain and also increase the
efficiency of the company to become more profitable in the market.
 This also reduces the bargaining power of suppliers and customers as it increases the
uniqueness of products and services to gain better growth.
 Vertical integration also increase the sales and reduce per article cost to develop its
products and invest in innovation of new products to attract more customers effectively.
 By vertical integration company also develop healthy relation with end consumers which
help businesses to understand needs and wants to customers to reduce extra wastage of
resources and provide specific products.
Disadvantages
 Vertical Integration is very ineffective for small businesses as it requires large capital to
operate. This also increase the expenses of companies.
 Vertical integration method is inefficient as the business can not focus on one supply
chain
Key drivers for Growth
Customers
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