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TOP9658 Unit 42– Planning for Growth

   

Added on  2021-02-20

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TOP9658 Unit 42– Planningfor Growth

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

INTRODUCTION Growth opportunities help business to expand and explore its existing capabilities so thatprofitability and success of the business can be increased. Thus, in long turn in order to success itis very essential for the small business service providers to assess the existing growthopportunities and to expand the business. While planning for the growth companies must alsoevaluate 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 smallcoffee shop based in London. The effective quality services make it possible for the organisationto expand its business. The study will also provide business plan and possible exit options for thecoffee shop. PART 1P1: Competitive advantage for business One of the greatest advantages for Prufrock cafe is its quality services. The organisationuses differentiation techniques and tries to serve the best products to its customers. Anotherfeature which differentiates the organisation with other competitors is its staff members. Thestaff 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 specialtraining programs for barista’s so that more and more people from community can engage andstaff members can make a unique identity among customers (McKenzie, 2015). The interactivenature of the barista’s in cafe, attractive interior, special unique hand brew coffee makes theorganisation capable enough to completive with other organisations. Higher prices of coffee inthe local market can make it good choice for the customers who desires to prefer the goodquality product but does not take organisations such as Starbucks in their choice due to theirextreme high cost. P2: Opportunities for business In terms of growth there is wide range of opportunities for Prufrock cafe. Currently theorganisation 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. Itwill help organisation to serve different types of customers. The organisation can also extend itsservices to lunch or breakfasts. To enhance the number of customer’s cafe can also provide homedelivery services or the online booking system (Weinstein, 2016). Since most of the hospitalityservice providers allow their customers to have this facility Prufrock cafe can also launch asystem to deliver coffee or the food products in its nearby regions. The existing system of theorganisation is highly effective in terms of delivering services thus the online mobile basedapplication for the bookings can also be good choice for the expansion. In order to make brandname more popular along with the effective promotional strategy organisation can merge orwork 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 orfranchises can be popular choices for the cafe. M1: Growth options for the organisation The cafe can have vast range of growth options in terms of improving products orenhancing 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 theexisting market in which it is providing its services. This can be achieved by improving thequality of services. For instance to make customer experience the organisation can provide a freecoffee on birthdays of individuals or a special cake for them so that people can emotionallyconnect with the cafe and their memorable experience can force them to visit repeatedly. One ofthe advantages of using this strategy is that it does not have any kind of risk though it canincrease the operational cost. Product development: Along with the emphasis on increasing sales in the existing market cafe can also launchor 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 goodchoices for Prufrock cafe. However, such type of innovations in the product are cost and time

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