Planning Growth for Yorks Cafe & Coffee Roasters: Evaluating Growth Opportunities, Funding Sources, and Business Plan

This report provides a growth strategy for Yorks Cafe & Coffee Roasters, including evaluating growth opportunities using Ansoff matrix, assessing potential funding sources, and elaborating a detailed business plan. The report also includes a SWOT and PESTLE analysis of the cafe.

PLANNING GROWTH

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
Evaluating growth opportunities and Ansoff matrix...................................................................3
LO2..................................................................................................................................................7
Assessing the potential funding sources available to the business and discussing the benefits
and drawbacks of each source of funding ...................................................................................7
Business plan-..............................................................................................................................8
Exit or succession options for a small business.........................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The report of planning growth will comprehensively elaborate a detailed scenario where
business is striving to generate large amount of profit by hiking the diaspora in market. Report
will put forward an effective growth strategy for the business. The small business chosen for this
purpose is yorks cafe & coffee roasters which is based in Birmingham, united kingdom. It is a
small sized cafe which is specialized in serving coffee. Key considerations for SMEs for the
evaluation of the growth opportunities will be explained in the report. Ansoff vector matrix will
be used to explain the growth directions of the cafe. Various funding options available for the
business which can effectively support the growth opportunities will be highlighted. Report will
elaborate a detailed business plan for the cafe. Also, exit or succession options available for the
business will be elaborated along with the advantages and draw backs of each option.
MAIN BODY
LO1
Evaluating growth opportunities and Ansoff matrix
The small scale business is refer as the enterprises with the process of manufacturing,
production, and servicing are done on the small scale. The business are the types of industries
that involves the few machines, less labour and less capital investments for the business to
produce the goods and services. The small business mostly owned by the sole proprietorship,
corporation with the few employees and fewer revenues for the business to gain the profitability
and productivity within the business organization.
Yorks cafe and coffee roasters company is provide the home-made breakfast, cakes,
lunch and sources ingredients at united kingdom. The company will also provide the vegan
products to customer for enhance he business customer base and provide vegan products for
customer who prefer the vegan products so, vegan coffee will provide to customer that is the
planning for growth and developments of business.
VIRO framework
This framework is the internal analysis that helps in identify business advantages and resources
that helps in gives the competitive edge for business. The VRIO framework is includes the rarity,
values, imitability and organization (Chatzoglou, 2018). This approach is provide the systematics
analysis of intangible and tangible resources with the organizational value chains.

VRIO analysis of York's cafe and coffee roasters
Resource Valuable Rare Imitable Organised
Finance Right Right Wrong Right
Equipment's/
tools/ machinery
Right Wrong Right Moderate
(Human
resources)Staff
Right Right Wrong Right
Speciality in
dinning / lunch
Right Wrong Right moderate
Presence / brand
image
Wrong Wrong Right Wrong
From the above table, the analysis of VRIO for competitive advantages with the various
resources such as staff, specialty, presence, finance, machinery and tools. In the context of staff,
the valuable, rare and organized are right for the business and staff is not imitable for the
company. Finance for Yorks cafe and coffee roasters that it is valuable, rare and organized but
it is not imitable for the business (Miethlich and Oldenburg, 2019). In the context of presence
and brand image, the company's not valuable and rare as well as not organized but there are
imitable. The specialty in lunch are also valuable but it is rare and imitable as well as it is
organized within the organization. Furthermore,
machinery is valuable in business, there are rare chances in machinery and imitate.

Porter five forces
The cafe and coffee roaster is consumed and beverage in all over regions. It is usage on
the basis of taste and preference of customer and its overall usage are extremely high in the
coffee industry. The growth of the industry are also high and positive because it shows attract of
industry. The porter five forces helps in analysis their competitiveness of industry.
 Competitive rivalry: the coffee industry is face the fierce rivalry because the various
competitive competitors in the business (Isabelle, 2020). There are various organization
that leading the coffee industry such as Starbucks, Laynes company. Its means the
company York's cafe and coffee roasters face the competition in the competitive
marketplace. The company must have high financial position in business to meet the
competitiveness in business.
 Bargaining power of buyers: The bargaining power are also high in the coffee industry
because of the presence of large numbers of coffee provider in the competitive
marketplace due to the similarities in products so, the bargaining power of buyers are
high. The switching behaviors of customer in company are also high with switching cost.
The customers have various chances to choose the other brands because of their taste and
preference so, the bargaining power of buyers is high.
 Bargaining power of suppliers: The bargaining power of suppliers is low in the coffee
industry because there are large numbers of suppliers that they buy to buy from so, the
bargaining power of suppliers is low (Bruijl and Gerard, 2018). The company have the
options to buy from other suppliers which helps in generate the economics of scale.
 Threats of new entrants: the threats of new entrants in this industry are also high
because numbers of company comes with the innovation in products and it is easy for
company to enter in market as well as there is no requirements of high investments so, it
is not complex. The new comers up in the market is the threat of new entrants and it is
high.
 Threats of substitutes: The threats of substitutes are also high in this industry because
there are various availability of substitutes. Nowadays the numbers of substitutes are also
increasing that is threats for the coffee industry. The major substitutes of the coffee is tea
and it is directly affects on the cafe and coffee roaster company.

Ansoff matrix
The company promote their products and services across the globe. There are various
marketing tools that helps business with growth and marketing techniques. It is the promoting
tool for growth strategies of products and services of Yorks cafe and coffee roasters is operating.
The matrix helps business to select the best growth strategy for the business developments and
its expansion (Dawes, 2018). The Ansoff matrix analysis of Yorks cafe and coffee roasters.
 Market penetration: It is the low risky growth strategy that suggested by the Ansoff
matrix. This helps in encourage business to increase the sales for products and services in
market. In other words, sales the current products in the current market is known as the
market penetrations. The company have to increase their promotion in the other ways and
adopt new strategies such as loyalty cards and rewards for customers.
 Product developments: It is the growth strategy. It encourages for exp-and comp-any
products by establishing the new products in current market. This strategy is also known
as the product's expansion strategy. Company can relaunch the products, different
versions of same products either launch new products for business expansion. The
company will provide the vegan products in the current market for the product's
expansion.
 Market developments: It is also known as the market expansion because company
expand their products in new markets. Furthermore, the company can launch their old or
current products in new market for market developments. The market developments can
be demographically and geographically. It is the best opportunities for York cafe and
coffee roaster to expand themselves in the new market place.
 Diversification: the diversification refer as the company launch the new products in the
new market for the growth strategy, it is the riskier strategy as compare o another strategy
because the new products launch in new market (Kurniawan, Iswahyudin and Suciati,
2020). If the diversification strategy is get hit then this helps in brings the greater benefits
for business. The York cafe and coffee company can launch their new products in new
market for the business expansion and diversification. It may help in enhance the sales of
organization products and it is bets opportunities for company to grow its market.

LO2
Assessing the potential funding sources available to the business and discussing the benefits and
drawbacks of each source of funding
The sources of funding is mainly defined as the options available wit the business to fund
as for expanding the range of business products to attract large target consumers. In the yorks
cafe and coffee roaster being established for serving the coffee and the various dishes in brunch
by experimenting the new concepts. With introduction the new vegan sandwiches and platter in
the company the funding sources available with the business are as follows:
Loan from banks(SBA) : As taking loans from the SBA mainly results in attaining the
best source of funding which is available for the small business at the low rates (Lin, Dong and
Lu, 2022).
advantages disadvantages
It provides longer repayment option
Granting loans with relaxing requirements for
funding the small business.
It takes longer and slow process and required
additional paper workings.
Guarantee is required for taking loans.
Financial institutions: These funding source mainly provide the funding and wide range
of services including the banking, insurance companies, trust companies. Funds from these
institutions is being agreed of various terms and conditions with charging particular interest
rates.
advantages disadvantages
For repaying the loans provides is easy in
instalments.
Grants loan for financing over longer term.
Granting funds at the time of depression in
economy.
It restrict the power of company With taking
loans.
With following rigid rules for providing funds
to businesses.
Private investors: These are those funding sources which invest as for obtaining the
certain amount of profit by investing into the particular businesses.

advantages disadvantages
Provide funding and secured the business
position with granting the creditability for
operating the yorks cafe and coffee roaster
business.
No particular date to pay the funding back.
Create pressure on the small businesses as for
reaching the expectation of investors in
attaining profits.
Limits on earnings as for sharing the part of
profit among the investors.
Venture capitalist: These are those which is mainly provide loans to the small
businesses which helps in ascertaining growth for sustaining the business in the long run (Röhm,
2018).
advantages disadvantages
It does not require to pay on monthly basis.
No persona assets are ascertained for obtaining
funds.
Difficult to ascertain funding.
Expensive in nature.
Lack of negotiations.
Thus, the best source of funding for the yorks cafe & roaster is obtaining funds from the SBA
banks. Taking funds from these results in providing wide range of benefit to the company as by
charging low rate of interest rates assist in attaining more revenues and profits while operating
the business at small scale. Further more taking loans helps in providing longer repaying option
to the yorks cafe as for expanding the new products and funding to attract the target market with
using the best quality of ingredient for serving the vegan platter and sandwiches. More over, this
funding sources is best for the yorks which helps in creating the best terms to repay the loan
being granted by the bank on the easy terms and conditions.
LO3
Business plan-
Company overview:

Yorks cafe & coffee roasters is a cafe which established in 2012. York is a new
generation cafe which was created on foundation of passionate people. It is an award-winning
Birmingham coffee shop. It is serving a limited range of options in its menu such as hot lunch,
coffee, frappé, etc.
Vision:
it is the short term goal of the cafe which is to introduce an inclusive food menu and
attract more customers on the cafe (Hanák and Grežo, 2020).
Mission:
it is the long term goal which is to maximize the profitability and increasing the customer
base by grabbing large market share.
Product:
york cafe is famous for its offering of different products such as cakes, pastries, coffees,
vegetarian option, sandwiches, hot lunch option, drink menu etc. it has maintained the quality of
the products so far so well (Inkon, 2019).
The new product introduction will have vegan option in the menu such as vegan platter,
sandwiches and vegan coffee as well. As these option will make the cafe very inclusive.
Situational analysis:
SWOT analysis: lets use SWOT analysis to understand the various capabilities, shortcomings,
opportunities and threats associated with business of cafe (Barrow, Barrow and Brown, 2018).
Strengths
 Strong brand image due to award won
by the cafe.
 High quality and superior taste.
Weaknesses
 No expertise with the vegan food
options before.
 Lack of an inclusive menu.
Opportunities
 Maximization of profits.
 Attracting large customer share.
Threats
 High competition in the food business.
 Perishable food items.
Pestle analysis:
Political factors
Yorks cafe is a small cafe which has less
government intervention yet cafe needs to
Economical factors
Factors like high inflation and unemployment
rate will not affect the small cafe business at

abide by the governmental rule and
regulations.
the large extent yet the Covid -19 like factors
affect the business of the cafe.
Social factors
Customers taste preference and lifestyle
changes has positively impacted the business
of the cafe as vegan menu will be very
attractive to these customers.
Technological factors
Yorks cafe needs to incorporate the
technological advancement in the business
which will faster the business process.
Legal factors
Cafe needs to comply with the various laws
like food safety which can enhance the brand
image of the business.
Environmental factors
Practising various environmental friendly
approaches like eliminating the plastic,
reducing waste in cafe kitchen will improve the
brand image of the business.
Competitive analysis:
Cafephilia Faculty cafe York cafe
Products The Best attraction is
two tier cake,
sandwiches, rolls etc.
Bread, sausage rolls,
savoury filling etc.
sweets, pastries, hot
lunch, vegetarian
options.
speciality Providing both in shop
and online services.
Only on shop, no
delivery services.
Both online and offline
services.
STP analysis:
STP stands for the segmentation, targeting and positioning. Here segmentation is based
on the behavioural aspects. People who believe in a healthy lifestyle practice and believe in
eating vegan food will be the basis of segmentation. New vegan options will be targeting people
with vegan food choices (Watson and McGowan, 2018) Every customer who is trying to
incorporate the heathy food choices will also be targeted. Positioning is how you want to be
perceived in the market, yorks cafe will be putting forward the new menu which gives people a
sense of value for money food options and high quality feeling.

Marketing mix: let's understand 4 Ps of marketing as follows.
Product: food options and their quality, taste will remain at the centre of the marketing mix.
Yorks cafe is launching an inclusive menu of vegan food option which will have vegan platter,
vegan sandwiches, vegan coffee etc.
Pricing: York cafe is trying to put the prices in the menu at a very competitive prices prevailing
in the cafe industry. As price is also a point which attract the customers (Henriques, Matos and
Jerónimo, 2022).
Place: Place of sale is very important, facility of dining in, takeaway and online delivery is being
provided. York is putting all sale options active for getting a competitive edge.
Promotion: Different modes of promotions will be undertaken such as social media platform,
digit modes, flyers, newspapers etc.
Budget for the new product:
particulars Amount (in £)
Row materials 2750
salaries 3500
Marketing expenditure 7200
packaging 450
New equipment 2600
Administration expenditure 5000
Monitoring expenditure 3500
Total expenditure 25000
Monitoring-
Monitoring is important to keep a track of the plan and process. Without monitoring
business plan will be a waste of resources and time. Various key performance indicators given
below must be used to monitor the effectiveness (West, 2022).
 Revenue growth.
 Number of new customers.
 Profit margin on vegan food items.

 Customer satisfaction.
 Revenue per customer.
It is important to keep checking on the benchmarks set, as to measure the performance of
the entire plan. This can give a true insight of the actual state of the plan and in case of any
modification needed this will be precisely indicating that.
LO4
Exit or succession options for a small business
There are multiple options available for small businesses to exit from the business
whenever they want. When a business or small enterprises faces difficult times, and they feel like
there is no profitable tomorrow, they try to approach various methods of exit from the business.
As exit option will allow the sale of business in some way or other which will generate money in
some way or the other which can make the core business people meet some liabilities and free
from the Burdon (Chirico and et.al., 2020). There are few very prevalent methods such as
passing to the family member, merger & acquisition, launching initial public offer, liquidation
etc. let's understand each method in detail.
Selling a business: it is a method of exiting from business by putting the current business on the
sale in open market where different entities, individuals, business etc. can buy the business. This
is a widely used method, which is generally used by those enterprises who need an immediate
exit from the business and want urgent money to either solve a problem or meet the liabilities.
Let's understand the pros and cons of selling business.
Pros:
 Getting Burdon free immediately.
 Money can be urgently generated.
 Liabilities can be paid off.
Cons:
 Hard to get good price of the business due to the immediate sale.
 Low valuation of the business.
 Creates controversy for immediate selling.
Liquidation: it is final method of taking an exit from the business as it in this method. Assets are
sold of in order to meet the liabilities and paying the stakeholders out of whatever money is left
(Morris, Soleimanof and White, 2020). When a business or a business unit is no longer serving

the profits and there seems no potential future of the same, it is recommended to sale the assets
and pay off the liabilities. Pros and cons of the liquidation are s follows.
Pros:
 End of business obligations and Burdon.
 Very simple and easy method
 Bargaining for assets can be done.
Cons:
 Return on investment is very low.
 Due to the priority pay of liability there exist the chances of conflict.
 Shareholders tend to get nothing.
IPO: it stands for initial public offer where company or organization tries to transfer the
ownership of the business to shareholders in the organization. It is considered to be a great
method of exiting as it supports business in two ways (Sardeshmukh, Goldsby and Smith, 2021).
Very first is the raising of the money via transferring the ownership and second is the transfer of
ownership. It helps business focus on expansion and growth opportunities as money is diverted
for good cause in the company. Lets understand pros and cons of the same.
Pros:
 Saves the image of the enterprises.
 Raises money for the company's future.
 Transfer of ownership where core people no longer face direct losses.
Cons:
 Very complex and tedious procedure.
 It takes a lot of time.
 It needs money in the first place to launch an IPO.
Transferring to family members: in this method of exiting, business is being transferred to
another person in the family, mostly the heir of the business remains the owner of the business in
such cases. Here the potential future owners of the business groomed over the years which makes
them perfectly suitable for the business. This is a very prevalent method in small businesses. As
this way business remains in the family only. Pros and cons are as follows.
Pros:
 Future owner can be groomed the way current business man's vision.

 You continue to be a very core person in the business.
 Business remains in the family only.
Cons:
 There exists high chances of conflicts in the business.
 Difficult to come up with a single name for the transfer of the business.
 Creates high emotional and mental stress on the person.
Merger and acquisition: it is a method where business is either merged into the other business
or being acquired by the other businesses. In merger the identity of the existing business tends to
dissolve s it is being merged in to the another business entity (Cotei and Farhat, 2018). On the
other hand acquisition is where business of the existing is being acquired by another entity
altogether. The assets and liabilities both are transferred to the other business. It is very prevalent
in the market. Let's understand the pros and cons.
Pros:
 Liabilities are taken care of by other entity.
 Gives a clear break from the business.
Cons:
 Very complex procedure.
 Takes a lot of time some times years.
 Cessation of the business.
CONCLUSION
In the conclusion, the growth planning is the strategic business activities that allow
business owners to tract the growth and developments of company with their revenues. The
Yorks cafe and coffee roaster company provide the best quality services to customer and deliver
at the accurate and serve them in proper ways. The vegan products help those customers who are
not use the contain animals ingredients and it is the best ways to attract more customers and
provide facilities to that types of customers. This report discussed the small scale business and
the VRIO framework as well as porter five forces for analysis the competitive advantages. As the
conclusion, the report also elaborated the sources of funding for raise capital for innovation in
business as well as elaborated the business plan for the vegan products. This also provided the
exit or succession option for business to overcome the crisis and critical situations for business.

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