Planning for Growth: Analysis of Key Considerations and Growth Opportunities

This document discusses the key considerations and growth opportunities for planning business growth. It analyzes the potential sources of funding and their benefits and drawbacks. It also explores the Ansoff growth matrix for evaluating growth opportunities and discusses the strategies for market penetration, product development, market development, and diversification. Additionally, it provides insights into investment decision making for funding growth.

Planning for growth

Table of Contents
INTRODUCTION ..........................................................................................................................3
Main body .......................................................................................................................................3
TASK 1............................................................................................................................................3
P1: Analysis of the key consideration of growth opportunity................................................3
P2: Evaluation of growth opportunity by Ansoff growth matrix ..........................................8
TASK 2..........................................................................................................................................10
P3: Analysis of the potential source of funding along with it’s one of its benefits and
drawback ..............................................................................................................................10
TASK 3..........................................................................................................................................13
P4: Designing of business growth plan , along with the financial information and strategic
objectives..............................................................................................................................13
TASK 4..........................................................................................................................................23
P5: Evaluation of exit and succession strategy along with consideration of advantages and
disadvantage ........................................................................................................................23
CONCLUSION .............................................................................................................................26
REFERENCES..............................................................................................................................27

INTRODUCTION
Planning for growth is one of the most important organization management function
which involves the consideration of multiple factors and business strategies in order to make the
effective growth and development plan. which should be competitive and sustainable for
growing in the exist and new market (Birkin, 2017). Business market is full of the competitors
due to which small business organization have to focus on development of their new branches
across the different location in order to meet the competitive edges and earn the higher revenue
along with development of brand name well known and stable organizations. Planning for
growth is the strategy to make small business entity higher at the national and global market (Yu,
2019). BOULD BROTHERS COFFEE, is this small scale coffee shop business in UK.
Developed by Max and Alex located in the 16 round church St, Cambridge CB5, 8AD. Offer
best speciality coffee e with freshly cooked products. In this report planning for growth is done
in context to the Bold brothers coffee, which is involving the analysis of key consideration of
growth opportunities, along with the analysis of growth opportunities by different tools.
Different source of funding along with its advantages and disadvantages also considered in this
plan. Then in context to the growth opportunities analysis, effective business plan is developed
along with the consideration of exit situations and strategies to manage it.
TASK 1
P1: Analysis of the key consideration of growth opportunity
The small business organisation what is already established in the selected market, if plan
for the growth then they need to consider various factors of organisation and market such as they
have to consider their resources and product portfolio that has how much potential this factors
are having in order to offer the growth opportunity for business. Along with internal factors there
are some other external factors which are the key consideration for growth such as the different
method of Business expansion for international and global level (Alemayehu, 2017). Broader
consideration of all important factors related to growth and development opportunity in context
to BOULD BROTHERS COFFEE.
Porter’s generic matrix

(Source: Porter's Generic Strategies, 2020)
This is one of the essential framework, also known as the Michael Porter's Generic
Strategies which help the organisation to identify the key factors by the aid of which organisation
can gain competitive edges and use it as a growth opportunity. Michael developed three
strategies. Such as cost leadership, differentiation and focus. Then he further divided focus into
two factor coast focus and differentiation focus (Widiatama, 2018).
Cost leadership- This strategy is involving planning for increasing market share by
reducing the cost of products due to which highest sale of the product help to increase the market
share. BOULD BROTHERS COFFEE use the strategy to increase the customers and
organisation revenue. This can be done by the offering the relevant cost or cost effective
products to the Cost restricted customers.
Differentiation- This is another strategy of growth and develop which used by the
organisation to meet competitive wages. What is involving the strategy to add uniqueness and
innovator properties on products and services in comparison to other competitors. By the help of

which organisation can use higher price rate strategy which can help to increase the revenue and
profit. But in order to use this strategy organisation have to consider various factor such as
product uniqueness, quality and durability. This is strategies can be good for BOULD
BROTHERS COFFEE as they are offering best quality products.
Cost focus and differentiation focus- This is another strategy of growth and
development which involves the application of cost leadership and differentiation selectively at
this more segment of selected market (Arbatani, and et. Al., 2019).
From the three Porter’s generic matrix strategies BOULD BROTHERS COFFEE
should use differentiation to develop business in the new and existing market with development
of new and modified products of good quality and taste. Differential strategy is can be the best
for BOULD BROTHERS COFFEE in terms of brand value development and higher growth with
higher profit.
GE McKency Metrix- This is a nine box matrix which is considering the different units
of organisation in context to the analysis of growth opportunity, Bible you waiting the strength
and be weakness of those units. There are two major group of the factors in context to which
different units of business is analysed by measuring them in three terms of potential at both
group of factors.
Industry attractiveness- This involves consideration of different business unit, such as
product, infrastructure, services, that how attractive these units are in the market according to
which organisation can choose one of them as a growth opportunity. But along with the
attractiveness business unit should be having the competitive strength.
Competitive strength- That is involving the consideration of products, location, market
segment, services and infrastructure. That how competitive are these units.
These two variables of factors is qualified into 3 categories of potential.
 High
 Medium
 Low
Then in context to this analysis organisation can use 3 different approaches of growth and
development management.
 Invest/grow
 Selective investment/earning

 Harvest/ divest
What is the GE-McKinsey Matrix?
(Source: What is GE-Mckisney Matrix, 2021)
If the selective unit of organisation is having the higher attractiveness and higher
competitive strength then there should be best investment by using that as a growth opportunity.
Another hand if the business unit is having medium attractiveness and medium competitive
strength then the unit should be and the business plan with selective investment. The last factor is
about business unit which is having lower attractiveness and lower competitive strength then it
should be harvested or divested from the business plan. BOULD BROTHERS COFFEE is
having best infrastructure, products, services and location. So organization have to use all these
units as a growth opportunity.

Growth opportunities:
Along with the business resources and product portfolio there are some another key
consideration of business growth and development opportunity.
Such as Digital platform- this factor has to be considered for analysing the growth opportunity
because that is the way a of leading at the global market by coordinating with the team through
virtual and internet connection.
In other hand Partnership is the mode of Business expansion for example by this process
Bould brothers Coffee can find partner in different location and foreign country to develop the
business model at that place.
Franchising- this is one of the best way of business growth and development because
that is involving the handover of brand name, resources and strategies through the franchise by
franchisor in order to run the business in different country which further add the equal share of
profit and brand value development at global level.
Merger- by this strategy organisation can merge with the foreign country and work
together to grow each other. Bould brothers use this strategy as growth opportunity to develop
in the new market by the help of merger.
Acquisition- this is the process which can be used by the higher performing organisation
to by the company of foreign country about to quit. Company can by the organisation of foraine
country and use their resources, name and staff to develop in that new country.
Vertical and horizontal- integration is a type of foreign direct investment what is done
among the participative country of economical integration. This helps to do free trading within
the participated country. bould brothers can use this strategies to effectively run their businesses
at different country .
Along with products and business unites there are some another elements which should
consider in the analysis of growth opportunities and competitive advantage. Such as
collaboration and RBV.
Collaboration- This is business strategy or methods of collective working and goal
achievements. But along with the working support it also helps to meet competitive advantages
by reducing the competition. This is one of the process which also comes under the category of
key consideration of growth opportunity. Because the availability of partners and legal
permission. bould brothers can extend their business at global level by the aid of this strategy.

RBV- This is the analytical tool which helps to analyze the competitive advantage and
growth opportunity. By evaluating resources of business interest of value, rare, inimitable and
organized. Such a the BOULD BROTHERS COFFEE is having some resources which reach
the competitive advantages and growth opportunities. Such as products and services of the
organization is valuable, rare, organized along with this the interior, marketing strategy and
staffs are also valuable, rare and organized. So the product and marketing strengths is can use as
growth opportunities.
Recommendation
In context to BOULD BROTHERS COFFEE some most appropriate growth
opportunity consideration models and tools are GE McKensy Matrix and franchising.
Because GC Matrix analysis of organization is indicates the competitive strength and industrial
attractiveness.
P2: Evaluation of growth opportunity by Ansoff growth matrix
There in the market of business, different factors of growth and development are
available in context to analysis of which different tools and techniques are used related to some
specific factors of growth. Such as in order to analyse the market and product development
opportunity for business and growth matrix is used in this report.
Ansoff growth Matrix
This is analytical tool which is also considered as a product and market expansion grid
which guide the organisation for market and product development opportunities and risk. This
involves the four strategies of growth and development which further analyse in context to the
organisation by considering the advantages and risk (Tsakalerou, 2018.).
Market penetration- This is the strategy of expanding the business at existing market
with existing product to make more customers by the help of effective strategies such as offer,
discounts and good quality of the product at reasonable price. In context to the BOULD
BROTHERS COFFEE market penetration will be lower risk opportunity of growth.

(Source: The Ansoff Matrix, 2020)
Advantage- That is the best growth opportunity in context to existing market for
increasing the customers and revenue at that market with the best offers and services. This is not
having any risk of loss as compare to other.
Disadvantage- This is strategy is limited to the existing market area, which not work for
the international business and higher revenues.
Product development- This is another Business expansion strategy which involves
development of new products for existing market with the varieties of facilities in that. This
helps to satisfy the existing customers and aid to make more customers from the existing market.
This strategy is having medium risk which can be managed by the Bold brother coffee because
they are having the best resources and values.
Advantages- Helps to attract the new customers from existing market and satisfy the
existing customers which have to make higher revenues.
Disadvantages- Chances of medium risk due to the possibility of products unsatisfactory
results (Hart, 2018).

Market development- That is the third strategy of Business expansion which involves
the opportunity of converting The small business into large business, by expanding the business
in new market with existing products and services (Trigeorgis, And et. Al., 2021). In order to
make this analysis effectively that is important to consider the above analysis of porter’s generic
strategies and GE Metrix. In context to BOULD BROTHERS COFFEE this can offer the
medium risk growth opportunity and this can be good option for increasing the value of their
unique coffee test.
Advantage- This gives the opportunity for increasing the brand value and revenue and
help to make the organisation higher with different branches.
Disadvantage- There is the medium risk of loss due to the lack of customer relationship
with the customers of New Market.
Diversification- This is another growth opportunity strategy which involves the
expansion of business at New Market with new products. To make higher revenues and profit.
This can be good for the organisation which is already having higher values in the market with
strong financial stability and that is not good opportunity for selected organization.
Advantages- Give the opportunity for profit maximization by investing on different
product portfolio.
Disadvantage- There is higher risk of loss because for expanding into the new market
with new products organisation need higher investment and at the failure it can be very risky for
the brand (Alsem, 2019).
In context to the BOULD BROTHERS COFFEE Ansoff growth Matrix analysis the most
appropriate opportunity or strategy is can be market penetration it can help in lowering down of
risk and effective enough to extend and grow in the market with their existing product and in the
existing market.
TASK 2
P3: Analysis of the potential source of funding along with it’s one of its benefits and drawback
Meaning of investment decision making- this is the process of effectively managing fund,
within the organisation at different assets of business, so that gold is can be achieved for higher
revenue and firm can earn the higher returns for investors.
Investment decision making

The investment decision making is related to the selective investment of the funds in the
right business unit or assets. This involves the strategic decision in context to the selective use of
funds within the objective of higher returns , this can be long or short term depending on the type
of project or business plan. BOULD BROTHERS COFFEE investment decision making is
involving the management of payback Period and Net present Value in order to achieve
higher returns.
Payback Period- The payback period is involving the strategies or planing of timing
which can be require to recover the cost of investment. This is the simple way of evaluating the
numbers of the years or months takes to return the investment. BOULD BROTHERS COFFEE
is having best strategies and plan in context to their cost recovery.
Net Present Value - This is the important part of the investment decision making which
is also use by the Bould brothers coffee. This is involving the different between the present
values of the cash outflows and cash inflows over a particular period of time. This use the
investment planing and capital budgeting to analyse and evaluate the profitability of project
investment (Coyle, 2018).
Classification of source of funding
There are the different sources of funding on the basis, ownership, period and source of
gathering.
Based on the ownership
Owners fund- this is the type of fund which is facilitated by the owner of company or
solo trader, who provides the funding for different assets of business by retained earnings and
equity share.
Borrowed fund- this is a type of fund which borrow from the others such as public
deposit, commercial bank, financial institution (Hague, 2019).
Based on the period
Long term- money or fund which is borrowed for the 10 years.
Medium-term- open ended debt with the policy of three or four year returns.
Short term- debt provide with the return policy of 1 to 3 year.

Based on source of Internal and external funding- Internal funding is type of self sufficient
funding which comes from the organisation profit and equity. In other hand external funding
collected from the outsiders such as investors in exchange of interest.
Types of funding sources
In the business market there are the various investors and banks who to provide highest
source of funding to the small businesses and large businesses for the Business expansion and
development.
Private bank loan- There are the various private bank who are providing funding for the
small and large business entities in exchange of the selected interest rate and policies.
Advantages- This provide higher amount of funding within short period of time.
Disadvantages- It takes the higher interest rate and documentation procedure with the
huge number of security document collection.
Government bank loan- UK Government always support the entrepreneur and small
business development for the higher economic growth. Due to which government bank is
providing free money and some other funding with exchange of small interest rate.
Advantages- lower interest rate, save and no conflict. This is one of the best funding
source which provide the long-term funding at lower interest rate.
Disadvantages- Its take use time and documentation to proceed funding for business
plan.
Angel investors- This is the type of financial backing funding source provided to the
company in exchange of ownership equity. This is provided by the individuals who are having
high net worth.
Benefits- Easy process of funding by just the presentation of innovative and effective
business plan, this also helps to use the investors knowledge and contact.
Drawback- There will be the chances of higher interference from the side of Angel
investor. Chances of the laws of complete control (Bova, 2018).
Crowd funding- This is the source of funding done by the internet and small social
media group of charity, this source of funding helped to raise the fund for a small business
organisation by collecting the small money from multiple peoples.
Benefits- Easy and effective way of funding, help to collect the fund without any interest
charges (Nakyejwe and Sabi, 2021).

Drawback- It can cause bad impact on organisation brand value, and this it can also
cause the higher returns in the form of offer and discounts (Ishak and Kamaruddin 2021).
Recommendation
The best source of funding which can be suitable and appropriate for the BOULD
BROTHERS COFFEE is government loan as it is lower intrastate rate conflict free, legal source
of funding with opportunity of free money from government. This will provide safe and long
term financing which some more opportunities of befits provided by the government in context
to small business development.
Bank loan is suitable for Bould brothers because it is one of the most secured sources of
generating money in ling run, further it will also assist Bould Brothers in generation of funds at
lower interest as Compared to other sources that is angel investors or crowd funding that
involves high amount of risk that may affect the future expansion plans of Bould brothers in long
run.
TASK 3
P4: Designing of business growth plan , along with the financial information and strategic
objectives
1) Executive summary
That is used to represent the main goals and objectives of business plan, Bold brothers
coffee new business plan goals and objectives is related to the Business expansion, increasing the
rate of employment and innovation within the line of coffee shop business, by the aid of new and
speciality coffee taste. This businessman is involving the detailed description of vision, mission,
marketing strategy, financial and team management plan along with the consideration of other
important factors.
2) Company description
Name of the company is BOULD BROTHERS COFFEE, this company is known for its
speciality coffee and freshly prepared food items. Located in the 16 round Church St, Cambridge
UK, with the best attractive infrastructure and interior (Pöschl and Freiling, 2020).
Promoters, stakeholders and board advisors- the major functions of BOULD
BROTHERS COFFEE is managed by Bould max bould and Alex bould.

Products and services - It includes offering authentic taste of coffee with reasonable
prices but high quality.
Long term aim of business: Vision- It is developed by the two brothers with the vision
of offering best speciality coffee. The aims to provide best quality coffee and drinks.
Mission- Mission is to become one of the best leading company of coffee shop with the
positive image of sustainability and speciality in coffee taste. Aim is to achieve higher revenue
and develop at the different location in order to offer the best taste of coffee.
Objectives- Organisation is having plan to co-ordinate with the changing trends of
society.
1) To achieve a market share of 10 percent in coming time period of year ending 2022.
2) To enhance the present revenue by 5 percent in year 2122.
SWOT analysis
This is a strategic tool which helps to make the market analysis in context to the internal
and external factors of business with influence the growth opportunity and market strategies.
Where are the four factors which consider under the same work strength, weakness, opportunity
and threat.
Strength Weaknesses
Best product and services innovation and
value. Bould brothers coffee is also good in
there pricing and infrastructure.
Their is the lack of market and product
development approach and effectiveness.
Opportunity Threat
Government free money for small business,
low Intrawest rate funding source.
Innovation of the company make it eligible
for future competition.
Competitors and substituted are threat for the
company and the higher range of technology
cost is also problematic which can be solve
with cost effective innovation.
3) Market analysis
Industry outlook
In UK there are the well known famous outlets of coffee shop with higher brand value
such as Starbucks and Costa Coffee which make it's common to understand that UK is having

higher growth and competitive market of small and large scale coffee shops. In 2019 UK
coffee shop Industry has reached 47.5 billion US dollars.
Target market- In context to the selected organisation target market is the segments of
geographical and demographical factors. Such as youngsters are the are the demographical
segment of organisation in which youngsters are target for the sell of different coffee products .
And in other hand for the extension of businesses organisation is targeting the geographical
segment for global business such as India and some more place of same country where the
organisation not yet reached.
Total market valuation- BOULD BROTHERS COFFEE is developing with best values
and customers development . It owns 50 ordinary shares, with a value of 1.000000 GBP each.
Targeted share- BOULD BROTHERS COFFEE target £20,000 and the recent
employee in organisation is 50 and organisation is planing to increase this along-with branches.
Market trends- It is analysed with the application of PESTEL analysis given below.
 PESTEL analysis- This is one of the most important tool used in a market analysis to
analyse the different factors of market which can impact the business plan. Such as those
environmental factors are politics, economy, social, technology, environment and legal
rules or regulation (Garg and Shivam, 2017). And from the analysis it has been found that
technology and customers are contributing as a growth opportunity for organisation by
increasing their demand for the good taste of coffee. Technology is supporting the
business growth by offering the best innovative techniques of business processing and
management. Environmental factor is covid-19 due to which both positive and negative
impact is rising on the organisation. Political and legal factors are involving trading law,
tax rate and economy integration agreements by the help of which organisation can plan
for the global development.
 Profile of Competitors- bold brother coffee is having competition such as Hot numbers
coffee and The coffee house. But bold brother coffee shop is having their own unique
Identity with the innovative taste of coffee and attractive interior.
Other competitors include cafe blue sage that is offering vegan cuisine, hot numbers
coffee that is dealing ins speciality of hot fast food options, savino's, indigo coffee house
that is offering competition to Bould vofee house.

 Competitive advantages: Organisation is having best brand value along with good range
of products with premium quality and taste. Company is having best location between the
market and best infrastructure which is the biggest competitive advantages.
Furthers sources of competitive advantage for Bould brother include:
Advertisement- Bold brothers coffee is doing strategic investment and using digital
expertise to advertise their products. Along with this organisation as using small and creative
shop banners and posters to interact with the new customers.
Marketing and pricing strategy- marketing and pricing strategy will be related to the
new technological factors and customers demand. Price of the product will be reasonable and
lower than the other competitors to attract more customer. And marketing will be done on the
social media with the best and attractive content or blogs.
Benefits to client
BOULD BROTHERS COFFEE is organisation which deals B2C and in context to this
business model organisation is providing best products at relevant prices and quality. They are
also offering quick services and best place that will help them in meeting all the needs of
potential customers.
4) Marketing/sales strategy:
Income sources: In context to the selected organisation the source of income is mainly
from the physical outlet that is offering of unique coffee experiences to their target segment of
customers in the crowded market.
Marketing strategy: For the purpose of achieving a higher market share Bould brother
will be focussing on using of digital marketing strategy. In this there will be a campaign that will
be started on various social media platforms like facebook, Instagram and snap-chat to engage
the customers. For this purpose additional 10 percent discount will be offered to customers who
are adding their personal experiences, photos with the brand and then it will lead to creation of
higher brand awareness. Using digital expertise to advertise their products, with the aid of all
essential social media platform.
Pricing: Price of the product will be reasonable and lower than the other competitors to
attract more customer. Bould brother will be using price penetration as a strategy in order to
attract the customers by offering them lower prices as compared to other existing brands in the
market.

Advertising and Promotion: There will be brochures, Hoarding that will be used as a
print media source for advertising of Bould brothers. Apart from this Online content and offline
posters or template along with some interactive campaigns will be used for the purpose of
promoting the brand among target segment of customers who are willing to looking for authentic
coffee taste in reasonable prices.
Sales Strategy- Effective offers and best product awareness created by the aid of sales
man to increase sale. There will be use of direct selling strategy where organisation will directly
approach to their customers. For the purpose of enabling sales there will be initial offers of
offering 25 percent discount on combo offers and further on bulk orders there will be a discount
vouchers of up to 50 percent that will assist bould brothers in attracting customers for
maximisation of their present revenue.
Strategy and implementation summary
Bold brothers coffee strategy is to expand the business at different geographical segments
of UK and it aims to expand out of the country within next three years. Another strategy of
organisation is to introduce new and innovative coffee and food items in the existing and new
market. So the strategy is market and product development along with the low cost strategy of
porter’s generic model (Pisoni and Onetti, 2018).
5) Research & Development
Patents, copyrights and brands: In context to the organisation brand value development
and security that is important to use IPR for the registration of new products formula of their
coffee variants.
Product/Service Development: Organisation is having the plan of adding some more
innovative idea ingredients to develop new range of the products. In this the present approach of
bould brother towards coffee that is taking of complex product and then preparing it with care is
the main aim. They are working towards enhancing the speciality by addition of new variants to
maintain their unique brand image. Further service development can take place by using online
delivery options to expand the present network of customers.
Research and development: In this aspect bould brother will be working towards
identification of the customers who are typically looking for high quality coffer experiences on
the high street. It generally does not offers any type of luxurious experiences to their customers.
So mainly there will be use of a survey method to analyse the preferences of target segment of

customers in terms of their tastes, variants and other supportive snack options. This research
method will help in reaching to relevant conclusions to select a particular variant for expansion
of present product range.
6) Staffing and operations:
Management and organisation chart: the organisation and Management chart that is
followed in Bould brother is mentioned below:
(Source: Coffee Cafe Organizational chart Organizational structure, 2020 )
Staffing: In this process there is finding of right employee with required qualifications
and experiences. In this qualified individuals who can work as per expectation of top
management will be selected by using direct interview method of hiring candidates.
Training plans: There will be proper on the job training methods that will be used to
train the new staff. So that they can get trained and simultaneity contribute towards organisation
functioning. New tools and techniques are implemented in the organisation along with the best
training guide to manage the performance with new techniques.
Operations: the major operations in Bould brothers is focused on combination of
heating, spinning and addition of air to the milk.
7) Financial projections
Key assumptions: Numbers of employees- organisation is having 50 employees with all
essential logistics skills and knowledge. And development plan is involving the strategy of
recruiting more employees and make it approx. 200 within next three years.

Employees cost for next 3 years- the payment and salary of the employees within next three years
will be approx. 35% of the organisation turnover.
Profit and loss accounts:
(Source: BOULD BROTHERS COFFEE LTD, 2020)

Cash flow projections:
Sales pipeline: It includes the sales that have to be made per week for this purpose sales
department has to train their staff for lead generation, led qualification, initiating of contract,
scheduling of demo, negotiation and further closing of deal. For this there will be a approx of
100 cups per sales person that will be set up each day.
Name of customer Size of deal Date of PO expected Probability of getting
sale
xyz 10 cups 16th July, 2021 70 percent

(Source: The Complete Guide to Building a Sales Pipeline, 2020)
Financing summary- This BOULD BROTHERS COFFEE shop started with the internal
source of investment, which can be also considered as owner fund, funded by the two brothers
Max and Alex. But now organisation need external source of investment along with their internal
source in order to expand the business. Invested £25,000 at beginning. This BOULD
BROTHERS COFFEE shop started with the internal source of investment, which can be also
considered as owner fund, funded by the two brothers Max and Alex. But now organisation need
external source of investment along with their internal source in order to expand the business.
Invested £25,000 at beginning.
9) Funding requirement
Financial plan- in context to the BOULD BROTHERS COFFEE budget plan is
developed according to the cash flow and financial statements on the basis of profit and loss.
Break even analysis: The funding requirement can be evaluated with the help of below
mentioned variable cost and direct production costs. The overall funding requirement will be
fulfilled by using bank loan as a source of generating funds. Bank lending will be use for
research and development process.

TASK 4
P5: Evaluation of exit and succession strategy along with consideration of advantages and
disadvantage
Key reason of business failure and how it can be prevented
It is clear to everyone that businessman should have best and appropriate strategies
according to the each and every factors of business environment. Mistake in any reason and and
effective management is can call tree several reason of failure. Such as lack of funding and
capital due to inappropriate financial strategy and management. Inappropriate management team
and ineffective marketing strategy. All these reason lead to the and unsuccessful achievement of
desired goal and reason for exiting the business (Rahardjo and et. al., 2019).
how business failure might be prevented
In context to the prevention of the business failure there are the various types of the
strategies such as supervision of the cash flow, avoiding debt, manage good customer service,
learn from the competitors. Bould brothers coffee is can effectively manage its failure through
some selective strategies approaches. Such as for this selected organisation one of the best way
to prevent failure is supervise cash flow, business owner should balance between shelling out
cash for the business expenses and generating a business profit via sale, organisation can also
focus on the activities of accounting to manage finances in order. At the situation of failure
organisation can effectively use the customers satisfaction approaches to come out of that
situation, by offering the good product at lower price and via managing loyal relationship.
Reason of failure is can be prevented with the proper risk management and strategic planning in
context to each strategic task and activities of new business plan.
Exit route or succession planning
Succession strategy- This strategy is used by the owner of organisation when they not
able to further lead the organisation and want to handover this organisational leadership
responsibility to someone which is best and eligible for that position. So in order to select that
leader owner should make the members of employees and family members that who is having
the best leadership skills and capabilities.

 Transition to family- This is one of the best succession strategy which involves the
transition of leadership role to the, best and leading person of the family who can
effectively manage the organisation with their all efforts.
Benefits: Succession help to run the brand name for several years.
Drawbacks: Succession can some time lead to the selection of wrong leader who can negatively
affects the brand image.
Exit strategy- This strategy is required by the organisation when the situation becomes very
difficult for the company, with lack of goal achievements and higher loss. Due to which
members of the organisation are having the only option to exit the business, as they have
executed all possible plan and solution but not getting the positive results.
 Voluntary liquidation- This is the strategy of exit according to which each and every
members of organisation should give their collective advice to dissolve the business and
recover the possible investments.
Benefits: In this employees can make claim for unpaid salary, notice pay, holiday pay and any
type of redundancy pay. It leads to insolvency of business in a organised and legal manner
business can be closed and all creditors can be dealt with appointed of insolvency of practitioner.
Drawbacks: Business will be no longer to trade there are issues of overdrawn directors loan
accounts that have to be repaid.
 Direct liquidation- This is the exit strategy according to which business assets of the
company is can be directly sale out into the open market for recovering the financial
investment of it.
Benefits: Liquidation helps to recover the business assets investment.
Drawbacks: Liquidation is providing only the recovery of half an investment.
 Merge- That is the process of preventing exit and loss of the company by collaborating
with the other best performing organisation, which can help to use it resources and
opportunities to retain in the market.
Benefits: Merge aid to retain at the market with strength of joint venture and help to recover the
losses.
Drawbacks:- Merge can sometime cause for the more losses and conflict because there is
involvement of more than two organisation that leads to complete change in existing business
policies. .

 Acquisition- This is another process of exit by which the whole organisation along with
its name and values is sold out to the other higher organisation. This exit strategy help to
get almost all the investment recovery (Kuo and Tseng, 2018).
Benefits: Acquisition help to get the complete recovery of business investments that can prevent
from future financial losses.
Drawbacks: Acquisition causes the duplication of business model in foreign country (Timothy
Wyman, 2020).
Recommendation with justification
For bold brothers coffee the best exit strategy is can be merge and succession which
means transition to family. Because by merging to the existing coffee brand there can be availing
of maximising the use of resources and opportunity. And another hand transition to family helps
to handover the business one of the family member who is having good leadership skills and
financial stability. Who can manage the financial losses and improve the strategies for long-term
sustainability (Osnes And Wilhelmsen, 2020).
CONCLUSION
From the above study it has been concluded that each and every business organisation in
order to retain at the competitive market for a long time, have to make effective business plan by
the approach of planning for growth which is involving the proper consideration of all essential
factors related to the growth opportunities. Such as key consideration of growth opportunities
which can be resources potential and product portfolio status, along with the all other different
way of Business expansion. Such as porters generic and GE Metrix is applicable along with
Ansoff growth Metrix in order to analyse growth opportunity’s. Then in order to utilise those
opportunities that is important to consider the different source of funding which can be achieved
by the organisation, such as crowdfunding, government bank loan, Angel investors etc. By
considering the growth opportunities and different sources of funding effective business plan
have to be develop with proper market analysis and strategy objectives. Although each and every
business organisation have to consider a backup plan in there business plan due to which exit and
succession strategy’s should be consider such as merger, family member succession, liquidation
etc.

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