Planning for Growth: Analysis of Key Considerations and Growth Opportunities

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.