Growth Opportunities and Funding Sources for Beacon Coffee

UNIT 42
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Table of Contents
Table of Contents.............................................................................................................................3
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1Evaluation of growth opportunities and justification in organisational context......................1
P2 Evaluation of opportunities by applying Ansoff’s growth matrix..........................................2
LO2..................................................................................................................................................4
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................4
LO3..................................................................................................................................................6
P4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.............................................................................................6
LO4..................................................................................................................................................8
P5 Options in relation to exit and succession of business...........................................................8
REFERENCE................................................................................................................................10
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INTRODUCTION
For running a business and increasing performance planning is important that increases the
organisational performance and profitability. Planning is consider as process of thinking,
managing performance, activities and growing the business by attaining the business goals for
the purpose of increasing market share. This is important for all organisation to have a good
plans and strategies by making plans and developing activities which can help to deliver the best
quality of products and services (Stanciu, 2019). Small business are those which are starting and
running in small areas that helps to increase the organisational productivity. To understand about
this, Beacon coffee has been selected that is small café, providing coffee and refreshment to
customers as per their choice that increases business performance and deliver the best services.
This assignment is covering consideration point which affected the business, sources of funding
and business plans that can help to increase the working. Exit and succession option for business
that can help to maintain the performance.
LO1
P1Evaluation of growth opportunities and justification in organisational context
Small business are running in small areas which needed growth planning that can help to
increase the working and maintain the good performance. Growth means, a process of
developing physically, mentally and spiritually activities that can help to increase the
organisational productivity. Beacon coffee is small organisation that is selling the different
flavour of coffee to customers and increases the performance. This organisation is evaluating the
opportunities by applying the PESTLE analysis that are as defined:
PESTLE analysis – Such framework is related to business activities that are important for
maintaining the activities and organisational functions in challenging environment (Pennino,
2019). This can help to manage the performance and related activities by introducing new
policies and rules. The PESTLE analysis in relation to Beacon coffee organisation are as defined:
Political factor – The coffee organisation is heavily dependent upon tax regulation.
With globalization and internationalization, growing numbers of brewers are finding new
markets, while government has taken advantage of that fact by imposing high taxes on coffee
beans imports. Taking such factors into account helps Beacon coffee grow and develop in the
future.
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Economical factor – Factors such as exchange rates also affect the company's overall
revenues, particularly in the US. Dollar, guy. In addition , other factors, such as the recession, are
rising the buying power of consumers is reducing due to lack of unemployment. As a result ,
people would now choose to look for a cheaper option. Evaluation of such factors allows Beacon
coffee to take an intelligent choice on future growth and developing the business (Jin, Qu and
Bao, 2019).
Social factor – Customer expectations and desires are evolving faster forcing Beacon
coffee manager to deliberate a number of factors in order to growing and developing business
successfully. For example: Now-a-days not only youngsters enjoy drinking coffee but old ages
people are also enjoying the taste of coffee beans as well. So demand of coffee is growing
tremendously in changing environment.
Technological factor – For establishing and enhancing its supply chains, the food and
beverages industry is heavily dependent on advanced technology. Recent advances in technology
have opened up large markets for Beacon coffee to access the population of the world without
obstacle or barriers. c In fact, the organization can achieve a high competitive edge by using
digital technology that helps to grow the business continuously (Komninos and et. al., 2019).
Legal factor – The operation of the firm also gets impacted by legal considerations.
Beacon coffee manager must uphold by all laws and regulations in which company sells or sells
its products and services to expand operations in other emerging economies. In addition,
implementation with each nation's laws and regulations makes it much easier for Hook Norton
Brewery to conduct its operations effectively.
Environmental factor - This aspect hardly placed any influence on Beacon coffee 's
overall activities in expanding company operations. Yet the organization must follow these
business practices which do not affect the environment and which which improve humanity and
its members. Taking these factors into account allows firm to achieve strong brand image in the
industry (Alpermann and Zhan, 2019).
P2 Evaluation of opportunities by applying Ansoff’s growth matrix
Business are seeking towards growth and opportunities for increasing the profits that
increases brand image and high performance. For a business it is important to have good relation
with customers and employees as they buy products and employees are contributing towards
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