Planning for Growth: Key Considerations, Opportunities, and Funding
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This document discusses the importance of planning for growth in business and explores key considerations and opportunities for growth. It analyzes growth opportunities using the Ansoff growth matrix and discusses potential sources of funding, along with their benefits and drawbacks. The document also provides recommendations for growth strategies and discusses the importance of collaboration and resource-based view in achieving competitive advantage.
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Planning for growth
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Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Analysis of the key consideration of growth opportunity...........................................................3
Evaluation of growth opportunity by Ansoff growth matrix......................................................7
Analysis of the potential source of funding along with it’s one of its benefits and drawback. . .9
Designing of business growth plan , along with the financial information and strategic
objectives...................................................................................................................................11
Evaluation of exit and succession strategy along with consideration of advantages and
disadvantage..............................................................................................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Analysis of the key consideration of growth opportunity...........................................................3
Evaluation of growth opportunity by Ansoff growth matrix......................................................7
Analysis of the potential source of funding along with it’s one of its benefits and drawback. . .9
Designing of business growth plan , along with the financial information and strategic
objectives...................................................................................................................................11
Evaluation of exit and succession strategy along with consideration of advantages and
disadvantage..............................................................................................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
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, M., Clarke, G. And Clarke, M., 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, D., Yanxu, L. and Bojie, F., 2019). Bold brother 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 specialty 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.
Main body
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, B.Z. and Van
Vuuren, J., 2017). Broader consideration of all important factors related to growth and
development opportunity in context to Bould brothers coffee.
Porter’s generic matrix
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, M., Clarke, G. And Clarke, M., 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, D., Yanxu, L. and Bojie, F., 2019). Bold brother 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 specialty 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.
Main body
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, B.Z. and Van
Vuuren, J., 2017). Broader consideration of all important factors related to growth and
development opportunity in context to Bould brothers coffee.
Porter’s generic matrix
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, Y., Hamid, A.A. and Matrono,
M., 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
brother 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.
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, Y., Hamid, A.A. and Matrono,
M., 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
brother 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.
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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, T.R., Norouzi, E., and et. Al., 2019).
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
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, T.R., Norouzi, E., and et. Al., 2019).
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
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 brother coffee is having best
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 brother coffee is having best
infrastructure, products, services and location. So organization have to use all these units as a
growth opportunity.
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 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.
Acquisition- this is the process which can be used by the higher performing organisation to by
the company of foreign country about to quit.
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.
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. Organization can extend their business at global level.
growth opportunity.
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 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.
Acquisition- this is the process which can be used by the higher performing organisation to by
the company of foreign country about to quit.
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.
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. Organization can extend their business at global level.
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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 brother coffee some most appropriate growth opportunity consideration
models and tools are GE Mckency Metrix and franchising. Because GC Metrix analysis of
organization is indicates the competitive strength and industrial attractiveness. Of the company
in terms of their best infrastructure, products, services and location. Which is the indicates of
growth opportunity and in other hand this important growth opportunity factor is can be
effectively or collectively use with the franchising opportunity in order to develop at the global
level.
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 Metrix
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, M., 2018.).
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 brother coffee some most appropriate growth opportunity consideration
models and tools are GE Mckency Metrix and franchising. Because GC Metrix analysis of
organization is indicates the competitive strength and industrial attractiveness. Of the company
in terms of their best infrastructure, products, services and location. Which is the indicates of
growth opportunity and in other hand this important growth opportunity factor is can be
effectively or collectively use with the franchising opportunity in order to develop at the global
level.
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 Metrix
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, M., 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 brother
coffee market penetration will be lower risk opportunity of growth.
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
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 brother
coffee market penetration will be lower risk opportunity of growth.
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
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, L., Baldi, F., 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 brother 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, K.J., 2019).
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.
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.
opportunity of converting The small business into large business, by expanding the business in
new market with existing products and services (Trigeorgis, L., Baldi, F., 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 brother 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, K.J., 2019).
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.
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.
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Borrowed fund- this is a type of fund which borrow from the others such as public
deposit, commercial bank, financial institution (Hague, P., 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.
deposit, commercial bank, financial institution (Hague, P., 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, T., 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.
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, M.S.I., Kamaruddin,
M.H., 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.
Designing of business growth plan , along with the financial information and strategic objectives
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.
Company name and brief introduction
Name of the company is Bould brother 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.
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.
investor. Chances of the laws of complete control (Bova, T., 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.
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, M.S.I., Kamaruddin,
M.H., 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.
Designing of business growth plan , along with the financial information and strategic objectives
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.
Company name and brief introduction
Name of the company is Bould brother 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.
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.
And grow at the different cultural region with the aim of higher revenue, growth and
extraction of different cultural taste to make an effective approach of cultural exchange.
Business plan is about grabbing the opportunity of international market and different range of
customers to make higher revenue and profit.
Financing summary- This Bould brother 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.
Industry and 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.
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
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.
And grow at the different cultural region with the aim of higher revenue, growth and
extraction of different cultural taste to make an effective approach of cultural exchange.
Business plan is about grabbing the opportunity of international market and different range of
customers to make higher revenue and profit.
Financing summary- This Bould brother 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.
Industry and 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.
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
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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.
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, A. And Shivam, A.K., 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.
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.
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.
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.
Strategy and implementation summary
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.
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, A. And Shivam, A.K., 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.
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.
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.
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.
Strategy and implementation summary
Bold brothers coffee strategy is to expand the business at different geographical segments of UK
anud 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.
Personnel and management
Ownership- This business is type of the family business run by the two brothers as
partners. This is a private limited company.
Numbers of employees- organisation is having 11 to 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.
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.
anud 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.
Personnel and management
Ownership- This business is type of the family business run by the two brothers as
partners. This is a private limited company.
Numbers of employees- organisation is having 11 to 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.
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.
• Cash budget
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Payback period
Break even analysis
Break even analysis
Project profit and loss account
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Scaling option- future plan of the organisation related to the Business expansion and scale up is,
expansion of the business with new and existing varieties of product at the new and existing
market. In terms of New Market organisation plan is save the business activity and revenue
which can be further used to develop different branches of the organisation across the boundary
of UK. This can be done by the utilisation of horizontal integration and franchising.
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, B., Hasbullah, R. And Taqi, F.M.,
2019).
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.
expansion of the business with new and existing varieties of product at the new and existing
market. In terms of New Market organisation plan is save the business activity and revenue
which can be further used to develop different branches of the organisation across the boundary
of UK. This can be done by the utilisation of horizontal integration and franchising.
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, B., Hasbullah, R. And Taqi, F.M.,
2019).
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.
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.
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.
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.
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, C.M.M., Tseng, C.Y., 201).
Advantage-
Succession help to run the brand name for several years. Liquidation helps to recover the
business assets investment. Merge aid to retain at the market with strength of joint venture
and help to recover the losses. Acquisition help to get the complete recovery of business
investment.
Disadvantage
Succession can some time lead to the selection of wrong leader who can negatively affects
the brand image. Liquidation is providing only the recovery of half an investment. Merge can
sometime cause for the more losses and conflict. Acquisition causes the duplication of
business model in foreign country (Timothy Wyman, C.F.P., 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 Other different higher organisation, company
can overcome from the losses by using their resources and opportunity. And another hand
transition to family helps to handover the business one of the family member who is having
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.
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.
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.
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, C.M.M., Tseng, C.Y., 201).
Advantage-
Succession help to run the brand name for several years. Liquidation helps to recover the
business assets investment. Merge aid to retain at the market with strength of joint venture
and help to recover the losses. Acquisition help to get the complete recovery of business
investment.
Disadvantage
Succession can some time lead to the selection of wrong leader who can negatively affects
the brand image. Liquidation is providing only the recovery of half an investment. Merge can
sometime cause for the more losses and conflict. Acquisition causes the duplication of
business model in foreign country (Timothy Wyman, C.F.P., 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 Other different higher organisation, company
can overcome from the losses by using their 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, G. And Wilhelmsen, A., 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.
the strategies for long-term sustainability (Osnes, G. And Wilhelmsen, A., 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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REFERENCES
Books and Journals
Birkin, M., Clarke, G. And Clarke, M., 2017. Retail location planning in an era of multi-channel
growth. Routledge.
Yu, D., Yanxu, L. and Bojie, F., 2019. Urban growth simulation guided by ecological constraints
in Beijing city: Methods and implications for spatial planning. Journal of environmental
management, 243, pp.402-410.
Alemayehu, B.Z. and Van Vuuren, J., 2017. Munificence contingent small business growth
model (special emphasis to African SMEs’ context). Journal of Small Business &
Entrepreneurship, 29(4), pp.251-269.
Arbatani, T.R., Norouzi, E., and et. Al., 2019. Competitive strategies of mobile applications in
online taxi services. International Journal of Emerging Markets.
Widiatama, Y., Hamid, A.A. and Matrono, M., 2018. Business Environmental Analysis with
Competitive Profile Matrix Method on Market Optimization in Real Estate Company (A
Case Study at Tangerang Selatan Area). International Journal of Economics and
Financial Issues, 8(4), p.222.
Tsakalerou, M., 2018. Intellectual property as a key driver of business performance: the case of
Singapore and its implications for innovation in a knowledge-based economy.
International Journal of Learning and Intellectual Capital, 15(1), pp.83-92.
Trigeorgis, L., Baldi, F., And et. Al., 2021. Valuation of brand equity and retailer growth
strategies using real options. Journal of Retailing.
Alsem, K.J., 2019. Applied strategic marketing: a step by step approach. Routledge.
Hague, P., 2019. The Business Models Handbook: Templates, Theory and Case Studies. Kogan
Page Publishers.
Bova, T., 2018. Growth IQ: Get Smarter about the Choices that Will Make Or Break Your
Business. Penguin.
Ishak, M.S.I., Kamaruddin, M.H., 2021. Mudharabah based crowdfunding as an alternative
source of funding book publications in Malaysia. Journal of Islamic Marketing.
Garg, A. and Shivam, A.K., 2017. Funding to growing start-ups. Research Journal of Social
Sciences, 10(2), pp.22-31.
Rahardjo, B., Hasbullah, R. and Taqi, F.M., 2019. Coffee shop business model analysis.
Integrated Journal of Business and Economics, 3(2), pp.140-152.
Kuo, C.M.M., Tseng, C.Y., 2018. Choosing between exiting or innovative solutions for bed and
breakfasts. International Journal of Hospitality Management, 73, pp.12-19.
Timothy Wyman, C.F.P., 2020. Successful succession: Insights from a third-generation financial
advisory firm. Journal of Financial Planning, 33(6), pp.36-37.
Osnes, G. and Wilhelmsen, A., 2020. Leadership and Strategic Succession: The How and Why
for Boards and CEOs. Routledge.
Books and Journals
Birkin, M., Clarke, G. And Clarke, M., 2017. Retail location planning in an era of multi-channel
growth. Routledge.
Yu, D., Yanxu, L. and Bojie, F., 2019. Urban growth simulation guided by ecological constraints
in Beijing city: Methods and implications for spatial planning. Journal of environmental
management, 243, pp.402-410.
Alemayehu, B.Z. and Van Vuuren, J., 2017. Munificence contingent small business growth
model (special emphasis to African SMEs’ context). Journal of Small Business &
Entrepreneurship, 29(4), pp.251-269.
Arbatani, T.R., Norouzi, E., and et. Al., 2019. Competitive strategies of mobile applications in
online taxi services. International Journal of Emerging Markets.
Widiatama, Y., Hamid, A.A. and Matrono, M., 2018. Business Environmental Analysis with
Competitive Profile Matrix Method on Market Optimization in Real Estate Company (A
Case Study at Tangerang Selatan Area). International Journal of Economics and
Financial Issues, 8(4), p.222.
Tsakalerou, M., 2018. Intellectual property as a key driver of business performance: the case of
Singapore and its implications for innovation in a knowledge-based economy.
International Journal of Learning and Intellectual Capital, 15(1), pp.83-92.
Trigeorgis, L., Baldi, F., And et. Al., 2021. Valuation of brand equity and retailer growth
strategies using real options. Journal of Retailing.
Alsem, K.J., 2019. Applied strategic marketing: a step by step approach. Routledge.
Hague, P., 2019. The Business Models Handbook: Templates, Theory and Case Studies. Kogan
Page Publishers.
Bova, T., 2018. Growth IQ: Get Smarter about the Choices that Will Make Or Break Your
Business. Penguin.
Ishak, M.S.I., Kamaruddin, M.H., 2021. Mudharabah based crowdfunding as an alternative
source of funding book publications in Malaysia. Journal of Islamic Marketing.
Garg, A. and Shivam, A.K., 2017. Funding to growing start-ups. Research Journal of Social
Sciences, 10(2), pp.22-31.
Rahardjo, B., Hasbullah, R. and Taqi, F.M., 2019. Coffee shop business model analysis.
Integrated Journal of Business and Economics, 3(2), pp.140-152.
Kuo, C.M.M., Tseng, C.Y., 2018. Choosing between exiting or innovative solutions for bed and
breakfasts. International Journal of Hospitality Management, 73, pp.12-19.
Timothy Wyman, C.F.P., 2020. Successful succession: Insights from a third-generation financial
advisory firm. Journal of Financial Planning, 33(6), pp.36-37.
Osnes, G. and Wilhelmsen, A., 2020. Leadership and Strategic Succession: The How and Why
for Boards and CEOs. Routledge.
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