Growth Opportunities and Exit Strategies for Prufrock Cafe

TOP9658 Unit 42– Planning
for Growth

Table of Contents
INTRODUCTION...........................................................................................................................2
PART 1............................................................................................................................................2
Competitive advantage for business............................................................................................2
Opportunities for business...........................................................................................................2
Growth options for the organisation............................................................................................3
Financing options.........................................................................................................................4
Recommendations........................................................................................................................5
Business plan...............................................................................................................................5
PART 2............................................................................................................................................7
Exit options for small businesses.................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Growth opportunities help business to expand and explore its existing capabilities so that
profitability and success of the business can be increased. Thus in long turn in order to success it
is very essential for the small business service providers to assess the existing growth
opportunities and to expand the business. While planning for the growth companies must also
evaluate the possible choices to exit the business so that risks can be minimised (Burns, 2016).
The report will analyse the growth opportunities for Prufrock coffee shop which is one of small
coffee shop based in London. The effective quality services make it possible for the organisation
to expand its business. The study will also provide business plan and possible exit options for the
coffee shop.
PART 1
Competitive advantage for business
One of the greatest advantages for Prufrock cafe is its quality services. The organisation
uses differentiation techniques and tries to serve the best products to its customers. Another
feature which differentiates the organisation with other competitors is its staff members. The
staff members are well trained and are highly efficient to gain the attention of the customers.
Along with the taste of coffee the staff members are highly efficient. The cafe conducts special
training programs for barista’s so that more and more people from community can engage and
staff members can make a unique identity among customers (McKenzie, 2015). The interactive
nature of the barista’s in cafe, attractive interior, special unique hand brew coffee makes the
organisation capable enough to completive with other organisations. Higher prices of coffee in
the local market can make it good choice for the customers who desires to prefer the good
quality product but does not take organisations such as Starbucks in their choice due to their
extreme high cost.
Opportunities for business
In terms of growth there is wide range of opportunities for Prufrock cafe. Currently the
organisation does not have any other outlet but is very popular among people. Using this
popularity the organisation can initiate by opening new outlets in different parts of London. It

will help organisation to serve different types of customers. The organisation can also extend its
services to lunch or breakfasts. To enhance the number of customer’s cafe can also provide home
delivery services or the online booking system (Weinstein, 2016). Since most of the hospitality
service providers allow their customers to have this facility Prufrock cafe can also launch a
system to deliver coffee or the food products in its nearby regions. The existing system of the
organisation is highly effective in terms of delivering services thus the online mobile based
application for the bookings can also be good choice for the expansion. In order to make brand
name more popular along with the effective promotional strategies organisation can merge or
work in collaboration with some well known and popular brand name (Burns and Dewhurst,
2016). With this option organisation can enhance its brand value. Acquisition, mergers or
franchises can be popular choices for the cafe.
Growth options for the organisation
The cafe can have vast range of growth options in terms of improving products or
enhancing the market scope. The growth possibilities can be analysed by using Ansoff matrix.
As per this analysis Prufrock cafe can opt for any of the following growth options.
Market penetration:
The first growth strategy which can be used by Prufrock cafe is to enhance its sales in the
existing market in which it is providing its services. This can be achieved by improving the
quality of services. For instance to make customer experience the organisation can provide a free
coffee on birthdays of individuals or a special cake for them so that people can emotionally
connect with the cafe and their memorable experience can force them to visit repeatedly. One of
the advantages of using this strategy is that it does not have any kind of risk though it can
increase the operational cost.
Product development:
Along with the emphasis on increasing sales in the existing market cafe can also launch
or introduce a new product which attract customers to visit again (Toymentseva and et.al., 2016).
For example the hand brew coffee with special or exclusive coffee beans can be one of the good
choices for Prufrock cafe. However such type of innovations in the product are cost and time