Planning for Growth

PLANNING FOR GROWTH

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1 considerations for evaluating growth opportunities..............................................................1
P 2 Evaluation of opportunities for growth applying Ansoff’s growth vector matrix.................2
LO 2.................................................................................................................................................3
P3 potential sources of funding available to businesses..............................................................3
LO 3.................................................................................................................................................5
P 4 Business plan.........................................................................................................................5
LO 4...............................................................................................................................................10
P 5 Exit or succession options for a small business...................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Growth and development are one of the most important things that are required to be
focused on by the organizations (Altinay and et.al., 2016). Especially for SME's planning for
growth is extremely important as it helps them to expand their business. In order to expand
business or for the growth of the business there are various things that are required to be planned
by the business organizations. This assignment will focus on a small to medium size business
that is planning to expand their business. Coffee Spot is a small coffee shop in London which is
planning to expand their business further. This assignment will lay emphasis on key
considerations that Coffee Spot should consider when evaluating growth opportunities and
possible risks associated with their business, methods through which organist can access funding
and when these types of funding can be used by them, and lastly an in-depth business plan will
be developed for scaling up Coffee Spot's business.
LO 1
P 1 considerations for evaluating growth opportunities
In order to evaluate key considerations for growth opportunities Porters generic strategies
and PESTLE analysis can be used.
Porters generic strategies:
It helps an organization to analyse ways in which they can peruse competitive advantage
within the chosen market (Sen, Ozturk and Vayvay, 2016). There are four types of generic
strategies that can be used by Coffee Spot organization such as: Cost leadership strategy: Using this strategy organization focus on becoming low cost
producer in the industry in which they operate. Coffee Spot can use this strategy can
focus on providing the lowest cost products and services to their customers in order to
enhance their overall profit. Differentiation: Using this strategy organization focus on making their products or
services more attractive as compared to their competitors products and services (Foroudi
and et.al., 2017). Coffee Spot can use this strategy as a growth opportunity but for this to
focus on few things such as: good research, ability to develop high quality products and
services, effective sales and marketing. This strategy can help Coffee Spot to gain
competitive advantage over their competitors and enhance their customer base.
1

 Cost focus: It is one of the most suitable strategy that can be used by Coffee Spot as in
this strategy organization can focus on low cost advantage in just one or a small market
segment. If the product is acceptable to the customers of chosen segment then it can help
them to introduce that product to large market segment.
 Differentiation focus: Using this strategy Coffee Spot can focus on seeking differentiation
in its target market.
PESTLE: it can help Coffee Spot to link competitive advantage with growth opportunities.
Political: Political factors can help in analysing government stability and laws that are applicable
to the organization (Schwab, Gold and Reiner, 2019). Analysis of this factor can help Coffee
Spot to analyse laws that are favourable to their organization and can support them to grow
within the market in which they operate.
Economic: these factors can affect overall revenue, economy state and profit of the organization.
Analysis of social factors can help Coffee Spot to analyse labour cost, inflation rate etc. that can
affect their organization expenditure, profit, revenue etc.
Social: It is important for Coffee Spot to focus on lifestyle choices of their customers, customers
buying trend as their overall profitability and revenue depends upon their customers buying trend
and their choices.
Technological: Usage of advance technology can help Coffee Spot to gain competitive advantage
and provide much faster and better service to their customers which can further help them to
enhance their business.
Legal: Nowadays health and safety laws for organizations and their products is increasing that
are important for organizations to focus on. Adhering these laws can also help Coffee Spot to
handle their products demand, and facilitate their business in a much better manner.
Environmental: Today a greater number of customers are becoming eco-friendly and prefer eco-
friendly products that are healthy to be consumed. Providing such kind of products to the
customers can help Coffee Spot to enhance their customer base.
P 2 Evaluation of opportunities for growth applying Ansoff’s growth vector matrix
Evaluation of growth opportunities for Coffee Spot can be done with the help of Ansoff
growth vector matrix (Gielnik, Zacher and Schmitt, 2017). It is important for small business
organizations to find new ways through which they can enhance their customer base and increase
their profitability. Ansoff’s growth vector matrix is also known as product/ market expansion
2