Planning for Growth: Evaluating Opportunities and Justification

This document discusses the key considerations for evaluating growth opportunities and justification in an organization. It covers Porter generic strategies, Ansoff matrix, and resource-based view. The document also explores potential funding sources, drawbacks, and benefits, as well as the importance of a business plan.

Planning for growth

Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Discuss the key considerations for evaluating he growth opportunities and justification b in
respective to organization............................................................................................................3
Porter generic strategies...............................................................................................................3
Ansoff matrix...............................................................................................................................4
Resource based view or model....................................................................................................6
TASK 2............................................................................................................................................7
Identifying the potential source of funding available to business and describe about draw back
and benefits..................................................................................................................................7
Task 3...............................................................................................................................................8
Business plan...............................................................................................................................8
Monitoring and controlling........................................................................................................13
Task 4.............................................................................................................................................13
Exit and Succession Options for Small Businesses...................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Planning is the key existence which is looking out for the business throughout its
existences as very successful business have the major responsibility to have review the business
plans in order to have the continuation of meeting the business needs (Brill, 2017). It will be
helpful in the reviewing the current performances on the regular basis and identify the business
strategies for the growth. This will be allowing the enterprising to have allocation o the limited
resources towards the achievements in order to have adapting the changing industry by the
difference in alternative competitors.
The report will be having the descriptions of the key considerations for evaluating the
business growth by application of the Ansoff matrix as advisability of the identifying the
accurate business improvements, providing the better level of advantages as drawbacks of the
multiple sources. It will be having proper developing the business plan enhancements evaluating
the successions and exit options the enterprise benefits and drawback other opinion.
Task 1
Discuss the key considerations for evaluating he growth opportunities and justification b in
respective to organization.
Endeavour Café is a chosen SME who has managed its venture with 20 workers. Firm
provide quality food and drink services to local people which make them able to earn money in
form of profits. They can earn 2.3 million which is quite enough to sustain in Food & beverage
industry. The vision of this company is to satisfy customers and retain them for longer period of
time.
In order to have the establishment of the business plans, there is need to have the proper
identifications for the specific considerations as the way always to be helping out for growth and
prosperity of business. As to have the systematise growth, it is important to have the selection of
the right strategy’s in order to have acquiring he long term profitability’s. So, the Endeavour café
will have the look out to the different considerations in order to perform different actions in the
business enhancement.
Porter generic strategies
This is basically the competitive environment as culture will help in building the
competitive advantages along with creating superiority with consumers. The generic strategies
will have the focus on the different broad differentiations, low cost providers which plays an
3

important role in constructing the business strategy. The café will be establish by implementation
of the different focus, cost leadership and differentiation as part of hybrid in order to have the
handling of the completive pressure in significant manner (Brogi and Lagasio, 2017). the firm
will pays major attention in identifying the customer base and sale in term of the intensive
growth through effective product development, market development, diversifications and market
penetrations strategy.
Cost leaderships
This is helpful in gaining completive benefited by adopting generic ones by proving the
various coffee products to the costumer markets. The firm have major objectivities transition the
leadership portion by always supporting effective value chain in the business expansion. This is
start-up company to have target the people in order to provide the effective audiences major
preferences for making the sale of product. S the firm will have the try for reducing the
production cost and increasing the supply chin in effective manner.
Differentiation strategy
This is the important generic strategy as building the competitive advantages with
combinations with cost leaderships along with achieving he specific objectives by expanding the
customer base and unique item. This is differentiation strategy by embedding the innovations.
For example, the Endeavour Café will have expansion of product line as per the changing
preferences of costumers along with expanding the scope of different opportunities.
Focus strategy
This will be helping the firm in order to encourage and motivates for adapting different
resources as expanding the business and target segment. The firm will be trying server the
particular markets and gain the completive advantages through serving the respective niche
marketing. This will pay major focus on the product designs a as well as the providing the
satisfaction in client needs.
Ansoff matrix
Ansoff matrix is the growth strategy based is the management model which is
considering the different strategies in order to have the enhancing the business growth and
development in the marketplace.
Market penetration
4

The firm want to have proper level of market penetrations by providing better quality
food products at the affordable prices in order to have the increase in market shares (Brown and
Lee, 2019). The product presentation and packaging will be perfects which will helpful in
increasing the sales and demand among customers. Endeavour Café can use this strategy and
provide existing products to current customer. They can add more value on items and then
provide it to people.
Market development
As the firm is introducing the new product through mobile vans in order to have expand
the market share, business and established the better positions. The firm have single channels to
make the customer experiences with better quality for services locating in posh areas. The firm
have introducing the digitals concept for gathering large number of information related
customers such as interest, preference, market demand, trends. With this tactic, Endeavour Café
can develop new item for target customers that help firm to gain competitive edge at small level.
Product development
On the other hand, the firm is also developing the hybrid recipes to have introduction to
the existing market with new innovations in term of growth as well as development in perfect
manner. this is will be helpful in storifying the need and requirement of business in order to
have enacting the overall business through efficient product quality in the respective
marketplace. Firm with this strategy can add new food item or recipe in their existing menu that
can also help to become competitive.
Diversification
This is actually the complete diversifications of there business in way of launching the
new products to the new sectors which is the unknown market as it will ne helping out in
increasing the market share, value and brand reputation. This will be targeting such as the
increase the inserts among the people to have the purchasing of cosmetic product. It is quite risky
strategy because company needs to develop new item and target new buyer for it.
Conclusion-
From above discussion, it has been summarized that Endeavour Café can use market
development because it can help firm to satisfy people and sustain for long in its sector.
5

Resource based view or model
It is managerial concept utilized in context of companies to determine key strategic assets
a company can exploit to achieve competitive edge, while operating in specific sector.
Tangible assets-
Endeavour Café has these types of resource which allow them to gain competitive
advantages. They has list of food and beverages that satisfy people and increase profitability of
company even better.
Intangible assets-
Along with above competence, firm also have intangible asset in form of social media
page where they update info about its services that is not much costly and under budget.
Heterogeneous-
Endeavour Café could not be able to develop different tactics and expand business as
they have limited resources.
Immobile-
They can create plan to maintain existing venture with limited workforce.
VRIO framework-
Value-
Employees are valuable assets of Endeavour Café because they are able to manage small
venture and strengthen company to serve its best.
Rare-
Quality is rare thing because either small or large company no one can stay for long in
sector without having quality products.
Imitate-
Worker and product quality give power to company to sustain business for long, but not
assure that success is possible.
Organization-
Endeavour Café can work effectively but because of few resources they could not gain
competitive edge.
6

TASK 2
Identifying the potential source of funding available to business and describe about draw back
and benefits
Here is the different level of potentiality of the funding which tends to have availability
in the marketspace in way of building the business opportunities. In this way the business will be
easy for the endeavour cafe for investing the money in the business establishments in the global
world.
Small business loans
This is load which is actually based on the government administration having the
dedication to helps their small business enterprises in order to have the capital, develop the
advertisements and training. It ensuring that 25% of contract, give a reward to small enterprises.
Benefits and drawbacks
This will be increasing the chance of receiving the bank loans along with improving the
relationships between borrowers as well as loan lender (Haludin, Sari and Prihartono, 2017). On
the other hand, inclusion of their strict guidelines and SBA will be looking out for information
for regular 5 years.
Angle investors
They are considered to be individuals such as the different family member and friends here are
approximates about here 2,50,000 investors that provide the finding for small enterprises each
years (Gregson, Bock and Harrison, 2017).
Benefits and drawbacks
This is having the advantages of the wide range of the financial solutions rather than
having any level of depleting the saving and drawing respective funds in the different areas. As
the other hand have the inclusion of the higher interest rate as comparative to personal loans.
Personal investment
This is sources of investment for small business as the owner have the usage of own money to
be fund for growth of business which can be in form of collateral and cash.
Benefits and drawbacks
There are various sources of money as these does not require owner too pay any cost of
interest which means that this is most cost-free source of funding. There is reduction is
7

responsibility have paybacks but the owner has the limited money for investments in the running
business.
Cloud funding
This have the number of groups in funding which will provide the path for the owner of cafes
for investors and the multiples one investing in the business.
Benefits and drawbacks
There are various investees who are looking for the unique ideas for business growth
potentiality. On the other hand, tis have drawbacks due to the rules and regulations are
considered to be strict. The business manager have to make the sharing the secrets and all details
for the business.
Task 3
Business plan
Executive Summary
The business plan has been based on their conceptual level of frameworks in order to have the
proper analysing of the different situations and condition of the marketplaces by having the
following of correct directions and increase the firm profitability and business. The Endeavour
café is the new entry in the food and beverage industries in order to have providing the hot and
cold beverages in the convenient and time sufficient way (Ishak, 2018). The firm will be
providing the customer with ability to have the drive-up Barista of their choices custom blended
espresso drink, freshly brewed coffee, or another beverage.
Mission
Product Mission - Provide customers with the finest quality beverage in the efficient manner
Community Mission - Provide community support through customer involvement.
Economic Mission - Operate and grow at a profitable rate through sound economic decisions.
Objective
 To have increasing the sale by 20% in next 6 months
 To have the gross margin for about 30% and more
 To have the net after profits taxes above 15% of the sales
 To increase the customer satisfaction
Market trends
8

The expresso has been beginning to appear as the quintessential bastion of the upwardly mobile
professional who wanted to have controls over the beverages would taste and smell. There have
been the introduction of the beverage dispensers at the convenience stores as the poorly blended
cappuccinos flavour such as vanilla or mocha been the part of substandard beverages.
Market growth
As per the stating of the industry statistic the consumption of the coffee and flavoured drinks has
been rapidly increasing has having the increased level of sales in the retail outlets in effective
manner. This have been the clear level of notifications over generating the increased avenue of
all about over $6 billion. The fi is targeting the community who is coffee lovers as the trend in
increasing in metropolitan city.
Market needs
As per the need of the market is concern, the market is made up of the consumer who have the
busy schedules, have the desire of quality and respective disposal incomes (Nation and
Modarres, 2019). They would be missing the opportunity to sit in the café and sip a uniquely
blended coffee beverage. So the market have the need to be firm which can have the proving of
the ungirly blended beverages as they hurry through their busy lives.
Segmentation, targeting and positioning
The firm will be having the market segmentation by focusing on the two market that is the daily
customer which are travelling to or from works, shopping delivering goods or services, or just
out for a drive. On the other the movements to the captive markets which don’t have the all level
of convenient departures and returns fir the search of the refreshments as the internals sort of the
environments. Examples would include high school and college campuses and corporate
campuses where the same time constraints are involved, but regarding meetings and project
deadlines, and special events
9

Target market
The market will be focused as the mobile individuals who have the more money as compare to
times along with high demand for the excellent tastes in the choices of beverages but dint have
the time to get linger in cages. The van will be located to the high viability areas as to gains the
regular level of guest. This will be turning out to be tremendous and painless ways in for the
insulation gains in term of the financial rewards by way of providing the peasants and fulfilling
benefits to the student and employee (Schultz-Zehden, Weig and Lukic, 2019). The market is
primed form the introduction of company by offering the superiors quality and specially beelined
n the convenient drives products as the environment prices to the national coffees store.
Competitors analysis
The firm is considering itself the player in the retail coffee industries as it have the knowing in
terms of competition for the products ranges from the different soft drinks and milk shakes adult
beverages. The firm is facing the major level of competition form three different sources which
areas such as
The national coffees houses such as the Starbucks and Panera, mobbing next to the locally
owned ad operation cafes along with the fast food chains and different convenience store. So to
10

gains the competitive advantage, the firm have the need to be most conventional and efficient
available which make it sperate from its competitors to its customers. The firm is looking for
customer who can drive or walk, order their beverages, receive and pay of the beverage and
then drive off. On the other hand, the café will be differentiating by providing the significant
level of benefits to the community through a possible 7.5% contribution to customer-identified
charities, schools, or other institutions.
Strategy and implementation
The firm will be providieng there exellent produsct by placing the Drive-thrus and Mobile Cafes
at easily accessible locations throughout the metropolitan area (Tahir and et.al., 2020). There will
be palving there competitve tsriansig to the prodsuction staff as been amosng best Baristas in the
country.
 So the stratergy is providing as provided the customer with perfect product quality .
 To have the provsieng the customer more convinient method in tersm of obtaining the
desrired produsctses,
 To have the demstratsieng the firm in loyality and patronage by donating money to their
personal cause.
Financial information
11

Breakeven analsyis
Profitability
12

Monitoring and controlling-
Company can monitor success of their business plan by using KPI and bechmarking as
performance metrics which are quite beneficial in form of improving further actions.
Task 4
Exit and Succession Options for Small Businesses
Exit strategy is contingency tactics that is executed by company to liquidate a place in
financial resource of tangible venture resource.
Succession strategy is a effective approach that help firm to gain competitive edge and
increase profits even better.
Every business has been started with the objective to run in profitably for the longer
period of times along with creating the proper sustainability in markets. On the other hand there
are the various reasons in which the business have opting the strategy to exist which can be such
as the any type of loss, the inability to have operating the business or appropriate compilation of
business for having the consideration to exist the business.
In addition, existence can be drawn as the selling the enterprises to another party where the
business owner has no other concern about the organizations. In such criteria, the different
situation can take place such as
Passing of the business to the successor
13

This is the situation when there busines owner don’t have the capability to run the business
operation alter on is been passed to other successors which can be defined as the among the
family member, partner and other staff member that perform the specific role within
organization. This have the providence of befits in terms of involvement of third parts as the
succession options which may have the employee influence in improvement of decision makings
related to receive business development. On the other hand, it has the difficulty in identify and
trains the business complexity in proper manners along with having the effective
communications to achieve the desirable goals and objective.
Employee buyout and management
This is the situation where the managers can have proper handling of business in efficient and
effective manner to have business interaction developments and maintains the environment
culturable. In addition to that’s there is need to have change in business values, moral and
cultures to achieve the knowledge conceptuality and business success (Wey, 2019). The business
have the associated advantage over the chasing the conceptual knowledge in business success by
supporting the staff to have performing the different actions and protect the enterprise legacy and
interdependency.
Selling the enterprise within open market
This is the exist strategy’s where the business will be selling by the owns withing the certain
cost and prices. this will be having the primary effects in over to have the understanding the
conceptual knowledges as this is the simplistic and easiest to exist the business. on the other
hand, the business will be achieving the success by setting up of adequate preciseness while
identifying the different assets and sold in the global marketplace. Enterprise use the process to
take step towards exit in the business operations. Furthermore, it has recommendation that adopt
the exit strategy when they will be retired. The business has required to sell by owner within
certain cost/price.
CONCLUSION
From the above part, it can be concluded as Planning is the key existence helpful in the
reviewing the current performances on the regular basis and identify the business strategies for
the growth. The firm will pay major attention in identifying the customer base and sale in term of
the intensive growth through effective product development, market development,
diversifications and market penetrations strategy. This have the number of groups in funding
14

which will provide the path for the owner of cafes for investors and the multiples one investing
in the business. They would be missing the opportunity to sit in the café and sip a uniquely
blended coffee beverage. There will be palving there competitve tsriansig to the prodsuction
staff as been amosng best Baristas in the country. Every business has been started with the
objective to run in profitably for the longer period of times along with creating the proper
sustainability in markets. This have the providence of befits in terms of involvement of third
parts as the succession options which may have the employee influence in improvement of
decision makings related to receive business development.
15

REFERENCES
Books and Journals
Online
Brill, A., 2017. Employee Stock Ownership Plans as an Exit Strategy for Private Business
Owners. Matrix Global Advisors White Paper. http://getmga.
com/wpcontent/uploads/2017/04/ESCA_ExitStrategy_Final. pdf.
Brogi, M. and Lagasio, V., 2017. SME Sources of Funding: More Capital or More Debt to
Sustain Growth? An Empirical Analysis. In Access to Bank Credit and SME
Financing (pp. 173-199). Palgrave Macmillan, Cham.
Brown, R. and Lee, N., 2019. Strapped for cash? Funding for UK high growth SMEs since the
global financial crisis. Journal of Business Research. 99. pp.37-45.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
Haludin, D.C., Sari, H. and Prihartono, B., 2017. Online Marketing Mix for Small
Business. Advanced Science Letters. 23(11). pp.10790-10793.
Ishak, I.D., 2018, September. STP Strategy on Guidance and Counseling Services Students in
Elementary School. In 1st International Conference on Early Childhood and Primary
Education (ECPE 2018). Atlantis Press
Nation, P. and Modarres, M., 2019. Modelling uncertainty in reliability growth planning for
continuous-use systems. In SETE 2019: Systems Engineering Test and Evaluation
Conference 2019 (p. 30). Engineers Australia.
Schultz-Zehden, A., Weig, B. and Lukic, I., 2019. Maritime Spatial Planning and the EU’s Blue
Growth Policy: Past, present and future perspectives. Maritime Spatial Planning. p.121.
Tahir, A. and et.al., 2020, January. Height Prediction for Growth Hormone Deficiency Treatment
Planning Using Deep Learning. In Advances in Brain Inspired Cognitive Systems: 10th
International Conference, BICS 2019, Guangzhou, China, July 13–14. 2019. Proceedings
(Vol. 11691, p. 76). Springer Nature.
Wey, W.M., 2019. Constructing urban dynamic transportation planning strategies for improving
quality of life and urban sustainability under emerging growth management principles.
Sustainable Cities and Society. 44. pp.275-290.
Gregson, G., Bock, A.J. and Harrison, R.T., 2017. A review and simulation of business angel
investment returns. Venture Capital. 19(4). pp.285-311.
16

17

18

19