Unit 42 - Planning for Growth: Opportunities, Considerations, and Funding Options for Prufrock Coffee

This guide explores the growth opportunities, considerations, and funding options for Prufrock Coffee. It covers SWOT analysis, Ansoff Matrix, and business planning to achieve sustainable growth. The guide also evaluates the different sources of funding available for small businesses.

UNIT 42 – PLANNING FOR
GROWTH

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysation of the opportunities available to the business by using Swot analysation for the
business of the “Prufrock company”:..........................................................................................3
Analyzing key considerations for evaluating growth opportunities and justifying these
considerations within an organizational context:.........................................................................4
Opportunities Available to the Business – Business Plan...........................................................6
A critical assessment of the options of growth by applying Ansoff Matrix:...............................8
A critical evaluation of the options available for the sources of funding:...................................9
Analysation of the appraisal of the exit or succession options for the business of “Prufrock
coffee” critically evaluating different options to assess benefits and drawbacks:.....................10
Recommendations:.....................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
The process of planning for growth is an effective strategy for forecasting in advance as
to what all enables a business and its constituents to plan and organize activities for growth.
After forecasting and planning in advance it is necessary to keep a track of all the activities to
allocate the limited resources in order to utilize them in time of need. It carries all the business
vision and important elements that are essential for the success of any organization. For
sustainable business growth it helps and enhances the potential of the firm in attaining
competitive advantage for successfully promoting the overall business activities.
This particular brief about planning for growth will consist of various growth strategies
that can help a coffee shop in UK named Prufrock Coffee, that was founded by enthusiast people
who have now become a talented team of coffee and cafe professionals. The analysation of the
competitive advantage, to determine the opportunities available as well as the growth options
available will be analysed. An evaluation of sources of funding to appraise the exit and
succession options for the business along with a well drafted business plan will be mentioned.
MAIN BODY
Analysation of the opportunities available to the business by using Swot analysation for the
business of the “Prufrock company”:
Strengths: the strengths of the company is distinguished with the numerous characteristics like
there marketing strategy as it is located in the highly populated and moving area that gives the
business a competitive advantage over the competitor. By bringing in the new products specially
in the coffees the firm can become more popular with the distinctive range of products range as
per the preference of people.
Weakness: the company by operating in the primary markets can face the major weakness as it
might lose the potential of the business. The firm by targeting the audience for different audience
can limit the audience and this might limit the business of the company.
Opportunities of the business: the company by adding new and innovative products and the
products related to the elder peoples like low sugar products in the menu can win over the market
and can enlarge the market of the firm. Older adults of the firm might appreciate the low cost of
coffees and snack and a place where they can meet up with the family and friends. The firm can

generate the charity for the local public that might help the business to cover up the corporate
social responsibilities.
Threats to the company: the organization may have to face the tight competition in the markets
as there might be largely functioning and diversified company in the market who might give
tough competition to the organization. The company might have to face some of the loss because
if it fails in working as per the preferences of the general public.
Analyzing key considerations for evaluating growth opportunities and justifying these
considerations within an organizational context:
To highlight the competitive position of firm, VRIO analysis has been conducted for
proper evaluation of the growth opportunities:
RESOURCES VALUABLE RARE IMITABILIT
Y
ORGANIZAT
ION
COMPETITIV
E
ADVANTAG
E
Supply chain Yes Yes Might be
optimizing
similar
supplier chains
Effectively
consumed
Strong
competitive
advantage
with high
growth
opportunities.
Market
position
Yes Yes Challenging
environment
with close
substitutes
Yes Sustainable
competitive
advantage
Services
provided
Yes No High chances
of imitation of
services
provided as
the primary
focus area is
Yes Moderate
competitive
position

the same.
Financial
resources
Yes, a basic
component for
survival in the
long run
No Can be
imitable at a
certain rate
Financial
position can
be secured
Not
permanently
advantageous
Brand
recognition
Yes Yes Not really
possible
Beneficial for
the
organization
as it spreads
brand
awareness
Very strong
competitive
advantage
From above analysis of the competitive position of the business firm, it can be
ascertained that the firm enjoys an overall sustainable position. Most of the growth opportunities
are viable and can be effectively utilized for better competitive advantage in the marketing
industry (Fadhil. and et.al., 2018). The investment made in the valuable and rare resources that
can prove out to be an exceptional growth opportunity for achieving success. For the firm to
evaluate growth strategies, an understanding of why certain things might happen and what
measures should be taken in such situations to assure the development process never stops and
continues to ensure success rates. For the coffee business to grow, the promotional activities can
play a great role in the brand awareness as it will ensure growth opportunities through customer
satisfaction and retention theories.
If these strategies are best connected with the common requirements of growing a
business, many unique and valuable chances of attaining desired competitive advantage can help
the firm in keeping tracks of the work performance. In a competitive space like the modern era,
there should be a consistent servings of the quality coffee types and the related beverages to
promote the existence of the business. For this, there will be a requirement of right people at the
right time as they will be responsible for making a difference between success and failure of the
business activities. With this, the concerned organization can achieve the required growth
opportunities in the form of loyalty programmes, and maximization of the profitability rates.

The recent trends and fashionable consumables that are in demand can be added by the coffee
shop owners in order to expand their area of operating in the industry and can also benefit from
the thus formed competitive advantage by making efforts in satisfying the customers.
Opportunities Available to the Business – Business Plan
There are various opportunities available to Prufrock coffee and for its growth one of
which can be using the automation services and its other processes (McKeever, 2018). This can
be done through the following business plan:
Vision:
To be able to reduce the cost of operations and increase profits earned for surviving in the long
run.
Mission:
To achieve more of the customer satisfaction and faster operations with the adoption of the
automation of processes.
Objectives & Goals:
 To set up automation systems in all the stores till the end of 6 months.
 To increase the revenue by at least 10% at the end of year.
 To reduce the cost of processing by at least 15% at the end of 10 months.
Stakeholders:
The stakeholders here will includes the owners of business, employees working in the
organization, customers of the company, suppliers, competitors and the government.
Capital Funding:
The company will be requiring funding of £25,000 for which it will be taking as commercial
loans from the bank as it will be the most dependable source of funding (Jukova, and et.al.,
2019). It will be paying fixed rate of interest that it will earn from the automation.
Operational Plans:
Operational plans includes setting up software and technology related to the automation,
management of inventory and store packaging along with usage of TPR spreadsheets for giving
the alerts when store went out of stock (Watson, and McGowan, 2018).
Resources Plan:
Such automation will require resources like soft-wares and hardware along with proper training
related to how to effectively install resources to use them at their full potential.

Technology Plans:
Technology will be required to automate the areas of workplace, staffing, TPR pricing, stock,
reporting & forecasting and financial operations.
Risk Factors:
 Inefficiency of technology in meeting objectives.
 Up-gradation of the soft-wares and hard wares on the regular basis.
 Failure in the system causing the blockage of operations.
Marketing Plans:
Marketing will involve promotions through social media platforms like website and web
application of the company to reach the maximum number of people and advertising the
objectives to be obtained by using the print media.
Time Frame:
Task
Mode Task Name Duration Start Finish
1 Project Initiation 8 days Wed 8/17/22 Thu 8/26/22
 Vision 2 days Wed 8/17/22 Thu 8/18/22
 Mission 2 days Fri 8/19/22 Mon 8/22/22
 Smart Objectives 4 days Tue 8/23/22 Thu 8/27/22
2 Project Planning 20 days Fri 8/26/22 Mon 9/21/22
 Budget 3 days Fri 8/26/22 Tue 8/30/22
 Creating Infrastructure 13 days Wed 8/31/22 Tue 9/16/22
 Delegation of work 2 days Wed 9/14/22 Thu 9/15/22
 Establishing Internet connection 2 days Fri 9/16/22 Mon 9/19/22
3 Project Execution 7 days Tue 9/20/22 Tue 9/28/22
 Setting Up Systems 3 days Tue 9/20/22 Thu 9/22/22
 Linking Processes to Systems 4 days Fri 9/23/22 Tue 9/28/22
4 Project Monitoring 7 days Wed 9/28/22 10/06/22
 Analysation of resources 2 days Wed 9/28/22 Thu 9/29/22
 Monitoring funds 3 days Fri 9/30/22 Tue 10/4/22
 Feed backs 2 day Wed 10/5/22 10/06/22
5 Project Closure 3 days Thu 10/6/22 Mon 10/10/22
 Reporting 2 days Thu 10/6/22 Fri 10/7/22
 Submitting 1 day 10/10/22 Mon 10/10/22

A critical assessment of the options of growth by applying Ansoff Matrix:
To evaluate the need of growth options and opportunities, Ansoff matrix is applied for
better understanding of the challenges, risk and opportunities involved in the carrying out of the
activities to ensure success rates (Winarno. and Harisudin. 2018). With this method applied,
companies can grow and enhance the expansion of their business activities across the global
market that can help the firm in attaining competitive advantage. There different marketing tools
that can also be utilized in promoting various combination of the products and services offered
by the organization.
1. Market Penetration:
This combination is considered to be the least risky as compared to the other strategies
because it encourages and stimulates the company to improvise the business activities that can be
properly evaluated for the increase in sales, thereby increase in sales. This strategy deals with the
increased market share to add desired revenue structure and implications to achieve those goals
and objectives. The changes made in the pricing policy can affect the overall business activities
in the form of adopting new strategies for retaining the customers in a positive way.
2. Product Development:
This growth opportunity helps the business firm in the expansion of the products range as
compared to the earlier range in order to create new demands in the market of the similar brand.
This strategy will hep the firm in introducing innovational products or services that can create
more opportunities and competitive advantage in the marketing industry for survival in the long
run. The firm can be able to render their services in a more creative way with the help of new
combinations for brand awareness.
3. Market Development:
In order to expand the market reach of the existence of the business as well as the
products and services, it is advisable to operate in a completely new markets with differentiated
products and services. This can result in better advancements made by the firm in order to
increase sales not only in a particular region but also in the global market. The organizations that
are bound to expand their business globally can opt for such a strategy in order to achieve overall
business development.
4. Diversification:

To diversify the existing offerings or introducing new opportunities in the market, the
load of risk taking has to be initiated by the firm to bring greater efficiency and benefits in the
market. This strategy requires proper evaluation of the growth opportunities and the resources
especially financial stability so that there are no areas of insubstantiality of the available and
optimized resources. Apart from risk management, there is a beneficial point that the profit
making is always higher than the risk management.
So, from the above analysation, it can be further interpreted that the selected organization
which operates on a small scale requires the analysation through Ansoff matrix because they can
enjoy increased sales and better competitive position (Maamoun. 2019). Considering the size of
the business, it is advisable to opt for the strategy of Market Penetration and Product
Development as these strategies can help the selected organization in diversification of their
activities to attract more customers and better growth opportunities.
A critical evaluation of the options available for the sources of funding:
The idea behind adopting a favourable source of funding for the business type is essential
for the development and growth of the business. In this way, a business can even highlight the
fact as to how stable are their financials to continue their overall business activities (Adeleke.
2020). To expand to different locations and regions, it is important to invest in various areas of
the business activities. For the selected organization in this report, since it is a small scale
operation, the following sources of funding will be suitable:
1. Personal savings:
For an SME to operate in the marketing industry sustainably, the most favourable option
of funding can be of personal savings. It is because this has the least cost involved and can even
be utilized to cover the emergencies and uncertainties of the business world. The personal
savings does not have any relying on others as a liability criteria and helps in the reduction of
interest applied on any of the resources of the firm. It is an effective way to organize the business
activities and helps in attaining desired marketing goals.
2. Business loan:
The business loans acquired by the SME's can be of a great help in meeting and achieving
working capital requirements and the opportunities to expand and enhance the business
resources. In order to safely fund the business without any involvement of hurdles and obstacles
of uncertainties and duplication of the offerings from the bank. This even increases the

creditworthiness of the business that can help in attracting major target audience within the limit
set (Bukvić. Šain. and Maršić. 2018). There are full chances of enjoying the financial stability in
a friendly manner as compared to other sources of funding that may involve illegal and
misconception of activities that can harm the business.
By acquiring benefits from the above mentioned sources of funding, the SME's can move
forward with their business visions and missions along with the primary objective of achieving
the overall business objectives and goals (Kesten. and El-Banna. 2021). The combination of both
the sources of funding can enhance the overall productivity of firm in order to attain and retain
the potential audience.
Analysation of the appraisal of the exit or succession options for the business of “Prufrock
coffee” critically evaluating different options to assess benefits and drawbacks:
Succession options for the business of “Prufrock coffee”:
Focus on the customer service: if the customers related to the business of the company finds
something bad or face out some bad experience they will not repeat with the organization. The
company by giving the good customer service can win out the customers and this will help them
in keeping up with them regularly attached to the customers (Moro Visconti, 2020). By
examining the customers and making the changes required as per the needs and wants of the
customers can help the firm by retaining the customers and having an competitive advantage
over the competitors.
Building the business with mouth: though the business of the firm is operated in the small
amount the customer turn towards searching for the reviews of the businesses, and according to
that they decide to buy out the things. So, building the good reputation for the business will help
the firm to reach out more of the customers and achieve the success for the business.
Expanding marketing efforts: the firm can grow their sales by doing more of the sales. The
firm can adopt various ways to do the marketing as stated under:
 Can do the promotion activities by creating and using the promotion kit.
 Sending out the promotions with the invoices.
 Joining the professional organization.
 Including the newspapers in the openings, charity events and other further moves.
 Providing with the free workshops and classes related to the products and services.

Building online presence of the business: creating the website for the business will make the
business of the firm grow faster as working on e-commerce is expanding globally nowadays
(Bouncken, Kraus, and Roig-Tierno, 2021). A website by describing the logo of the organization,
business name, summarization of what the business performs in, contact and address
information, mission of the company, and testimonials for the customers depending on the target
market will come as the great way to promote the business.
Cutting the business cost: by keeping the cost in the business minimum can help the business to
grow on the rapid pace. Keeping track of the business expenses and making the adoption for the
new technology over the time can make it easy for the business to make the job as possible as it
will be.
Finding and keeping with the right employees: for the growth of the business attracting and
keeping the pace with the right employees comes up as the most of the beneficial step. As the
most of the successful business rely on the working and the performance of the staff and how
long they are working in the firm (Driouchi, and et.al., 2022).
Updating the business plan: the business plan helps out the successful business to grow at
higher pace and to determine the new goals and directions for the business. The firm by making
the business plan with the new vision and mission and the higher levels of directions for the
business to grow can help the organization to be more successful.
Exist strategies for the business of the “Prufrock coffee”:
Initial public offering: the plan of the IPO is used when the business entry that the business
have made is not appropriate to help the business continue the business operations. This can be
helpful to the business but it requires the investment of the lots of money in the opening of the
IPO (Sohl, and Folta, 2021).
Advantage: the persons who'll be performing as the shareholders of the company will have the
great opportunities of generating the profits from the existing business.
Disadvantage: this may arise the condition where the business might got sold off at low price.
Merger and acquisition: the exit plan of the merger and acquisition is found suitable when the
business is not capable of generating the revenue as per itself (Kato, Onishi, and Honjo, 2022).
Acquisition is the term that means being purchased by certain other business entity and term
merger means the business being got in to the similar type of the business.

Advantage: there might be higher levels of the potential for receiving the proper amount of
money and developing the good brand value of the business.
Disadvantage: the drawback that the company might have to face is that the company that will
acquire the business of the firm will make of the changes that might impact the structure of the
company in the drastic ways and that might make the company lose its identity.
Constant cash flow: this can be practised by the business if it has the secured position in the
market. By adopting this strategy the company have to pay the range of amount to the investors
by giving them the ownership of the company (McGuire, 2021). By doing so the company have
to hire out the individuals to look out about the operations related to the business and in the
owner always spends out the time in thinking about the invention of the new and innovative
product for the firm or to bring in the new business idea.
Advantage:the business might have the advantage of the retaining the control over the business
from the side of the investors. By doing so the owner might get the time to think over bringing in
the new ideas related to the major investment for the existing business of the organization.
Disadvantage: the disadvantage that the business will face is of poor management of the
business from the selected individual related to the ruining of the business's brand value in the
customers.
Complete cash out of business: the strategy demands complete sale of the company in the
hands of someone else whosoever, is agreed to pay the good price of the firm and is experienced
enough to take the business successfully and continue up the business operations in the managed
manner.
Advantage: the owner of the business can stay relaxed as the business will be managed properly
after it is sold to them.
Disadvantage: the new management of the business might change out the business completely.
Liquidation: the exit strategy of liquidation, is used by company as if all the assets of the
company are sold in monetary value and in exchange for cash.
Advantage: the advantage from this is that the business gets the ability to stops the opportunity
of stopping the losses that may occur In the business.
Disadvantage: the market image of the company might get affected.
The company “Prufrock coffee” by adopting the merger and acquisition exist strategy as
this will help the business of the company to grow and it will provide the company with the

numerous benefits like economies of scale and scope of growth, helps to gain the competitive
advantage in the market, it will provide the firm with the access to the best talent and the
resources.
Recommendations:
It is recommended from the above report that the firm “Prufrock coffee” must have its own new
brand value and brand importance by adopting the use of the website and applications through
which it will be able to receive the feed backs from the customers. This will help the customers
of the firm to make smart decision related to the purchase of them from the business of the
company. This can be done by displaying the star rating of the company on the websites and web
applications they are using (Bolland, and Lopes, 2018). The demanding online presence will help
the firm too as the public in the present days like to visit the stores and enterprises that have a
strong online presence.
Adopting the automation technology for the stores of the firm will provide the firm with
benefits and helps the firm in saving the time related to the business activities. This will also
helps the firm in saving the time taken in the business activities of the organization. It will help
the company in taking care of the customer service too and helps in improving the profitability
ratio of the firm and will help in improving the shelf conditions of the business.
CONCLUSION
The above report based on the planning for growth of the business have concluded about that
what is the competitive advantage for the firm and have critically assessed the opportunities
available for the business of the firm (Johnson, and et.al., 2018). The report have also shown
about the options of growth for the firm by applying the Ansoff's growth vector matrix with the
assessment of the risk options. The report have also provided with the critical evaluation for the
financing and other sources of funding. Report have also concluded about the exit and the
succession options for the business by providing with the benefits and the drawbacks. Further,
recommendations have been given for the business in the report.

REFERENCES
Books and journals
Adeleke, A., 2020. A Case Study of the Marketing Tools Coffee Shop Owners Use to Sustain
Businesses. Open Journal of Business and Management. 8(2). pp.726-753.
Bolland, E.J. and Lopes, C.J., 2018. Recommendations for business. In Decision Making and
Business Performance. Edward Elgar Publishing.
Bouncken, R.B., Kraus, S. and Roig-Tierno, N., 2021. Knowledge-and innovation-based
business models for future growth: Digitalized business models and portfolio
considerations. Review of Managerial Science, 15(1), pp.1-14.
Bukvić, I. B., Šain, M. and Maršić, I., 2018. Alternative sources of funding in culture: Case of
eastern Croatia. Ekonomski vjesnik. 31(2). p.427.
Driouchi, and et.al., 2022. Ambiguity, managerial ability, and growth options. British Journal of
Management, 33(3), pp.1323-1345.
Fadhil, R., and et.al., 2018. Development strategy for a quality management system of gayo
coffee agro-industry using soft systems methodology. Periodica Polytechnica Social
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Johnson, and et.al., 2018. Succession planning for large and small organizations: A practical
review of professional business corporations. Succession planning, pp.23-40.
Jukova, and et.al., 2019. Planning a new business: typical mistakes of a business plan in the
service sector. Journal of Environmental Management & Tourism, 10(3 (34)), pp.441-
447.
Kato, M., Onishi, K. and Honjo, Y., 2022. Does patenting always help new firm survival?
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pp.449-475.
Maamoun, A., 2019. COFFEE-INFUSED COKE? YES PLEASE!. Global Journal of Business
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McGuire, E., 2021. Entrepreneurial experience and firm exit over the business cycle. Journal of
Economics & Management Strategy, 30(2), pp.308-337.
McKeever, M.P., 2018. How to write a business plan. Nolo.
Moro Visconti, R., 2020. Digital Scalability and Growth Options. In The Valuation of Digital
Intangibles (pp. 63-107). Palgrave Macmillan, Cham.
Sohl, T. and Folta, T.B., 2021. Market exit and the potential for resource redeployment:
Evidence from the global retail sector. Strategic Management Journal, 42(12), pp.2273-
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Watson, K. and McGowan, P., 2018. Emergent perspectives toward the business plan among
nascent entrepreneur start-up competition participants. Journal of Small Business and
Enterprise Development.
Winarno, S. T. and Harisudin, M., 2018. Competitiveness analysis of robusta coffee in East Java,
Indonesia. Academy of Strategic Management Journal. 17(6). pp.1-9.
Kesten, K. S. and El-Banna, M. M., 2021. Facilitators, barriers, benefits, and funding to
implement postgraduate nurse practitioner residency/fellowship programs. Journal of
the American Association of Nurse Practitioners. 33(8). pp.611-617.
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