Growth Planning Report: Bold Street Coffee Shop, Unit 42 Analysis

This report focuses on growth planning for a small coffee shop, Bold Street Coffee, aiming to expand its business operations in the UK and Australia. It includes an analysis of key considerations for growth opportunities, such as Porter's generic strategies (cost leadership, differentiation, differentiation focus, and cost focus) and franchising. The report also utilizes PESTLE analysis to evaluate the macro-environmental factors impacting the business and examines growth opportunities through Ansoff's matrix (market penetration, market development, product development, and diversification). Furthermore, it assesses potential funding sources, their advantages, and disadvantages, and develops a business plan incorporating financial information and strategic goals. Finally, the report addresses exit and succession planning options for the small business, comparing their benefits and drawbacks, and concludes with recommendations.

Unit-42 Planning for
Growth

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse various key considerations for analysing growth opportunities as well as
justify them................................................................................................................................1
P2 Evaluation of opportunities for growth through Ansoff’s growth matrix.....................4
M1 Discussion for options which are available for having range of growth by analytical
frameworks for understanding of competitive advantage....................................................6
TASK 2............................................................................................................................................6
P3 Assessment of potential sources of funds which are present to businesses along with
its advantages and disadvantages............................................................................................6
M2 Evaluation of capable sources of funding along with justification for adaption of
proper source.............................................................................................................................8
TASK 3............................................................................................................................................9
P4 Business plan for growth that involves financial information along with strategic
goals for carrying business.......................................................................................................9
M3 Detailed business plan for growth as well as having investments by setting out goals.
...................................................................................................................................................12
TASK 4..........................................................................................................................................12
P5 Identification of exit or succession plan for small business through its benefits and
drawbacks................................................................................................................................12
M4 Analysis of succession as well as exit plan for small business by comparing them
along with recommendations.................................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning is said to be a method that takes a positive impact of individual to achieve their
targets and goals in an effective manner. It is basically termed to security of future by performing
out specific operations as well as different working practices in present scenario. It is said to be a
prior thoughts of individuals that could be improved by carrying out success with development in
future time scale (Andrianov, Markov, Shmakov and Mozhaev, 2021). It also helps in benefiting
determining as well as analysing impacts of several strategies that could be applied in companies
for achieving their success through growth. This report is based on planning for growth of a
small business which is a coffee shop bold Street coffee shop based in London and wants to
expand their business practices in various cities also with Australia through their food and
beverages products. This report includes evaluation of different considerations for measuring
growth opportunities, different growth opportunities that are to be examined by ansoff matrix,
capable sources which are required for funding with their benefits and drawbacks, business plan
for having growth through financial information as well as objectives, exit and succession plan
options for running a small business true advantage and disadvantage along with its conclusion.
MAIN BODY
TASK 1
P1 Analyse various key considerations for analysing growth opportunities as well as justify
them.
As planning is referring to a process of mentioning along with evaluating different changes
as per requirement for achieving required goals as well as objectives. It is said to be a method
that is carried by company for having a balance division between company that are recently
along with company that wants to achieve in a timescale (Hardjono and Safitri, 2021). As in
terms of bold Street coffee shop which is a small business as balance required to achieve its
growth by expansion of their business operations in various cities of United Kingdom also with
Australia.
Porter's generic strategy
As it is said to be a strategy that termed to be a guidance along with it provides competitive
advantage towards company for having competitive marketplace. Porter's generic strategy
involves 4 different strategies that are carried by a company for achieving their advantage for
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competitive rivals. It generally benefits in terms of designing different strategies that could be
beneficial for board Street coffee e-shop in terms of expanding their business operations and
these strategies are as follows: Cost leadership: As this is referred to a strategy that is performed by company when it
considered as in offering different product as well as services by their minimum cost
which could provide support to accomplishing large market share (Sharma and Jain,
2021). As bold Street coffee shop should use cost leadership theory for attracting their
large number of customers along with providing their beverages products with various
services through comparatively low price as per competitors. Differentiation: This strategy generally defines to a strategy which is used by company
for presenting their innovation along with creativity for their products or services that are
carried for achieving higher amount of sales by widening their market. As by using this
strategy company could be capable in order to develop and design various product that
are completely in new market. Terms of Bold street coffee shop this strategy could be
used by a company in order to accomplish competitive advantage by having attention
level of high customer base. Differentiation focus: As it is generally defined to a strategy which is used by company
for providing a diversified product as well as services to customers in corporate markets.
In general, it is considered to be a bringing out Company image in minds of customers so
that they could be aware about their products which they are offering and they will be
able to have long term success in markets (Mahmood, 2021). In terms of bold Street
coffee shop, they could use differentiation focus strategy in their business practices for
providing their coffee products new creativeness along with various services in business
environment for increasing efficient market share along with increasing their revenues for
enhancing their sales.
 Cost focus: It is considered to be a strategy through change which is carried by company
for covering up a niche market along with that it generally provides different products by
its minimum as well as low cost. This strategy should be introduced by small business by
understanding a full identification of market along with satisfying needs and demands of
customers. In terms of bold Street coffee shop business should use this strategy for
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collecting and attracting large number of customers by providing them their customer
service at a low cost.
To achieve growth in the business sector it is important that new innovations are being
conducted and diverse ways to attract large number of customer base. On the basis of this
franchising is a good option for them because through this a better brand image would be built
up. In context with bold street coffee shop also as they want to expand their business operations
franchising is a good option for them. The business enterprise can achieve growth and also builds
up extra operational efficiency. In accordance with new products the chosen company is now
adding up special product ideas in comparison with other competitors.
PESTLE analysis
It is said to be an analysis that determines macro environmental factors which could affect
performance of bold Street coffee shop in terms of their increasing advantage for providing
growth for having expansion. As these environmental factors are analysed as follows: Political factors: It is basically involving various interventions of government. As
government of United Kingdom has most capability and having stability and therefore
they give larger number of opportunities to their businesses for determining more
development facilities. So bold Street coffee shop should take advantage for performing
at their business practices in different cities also along with Australia. Economic factors: It involves various factors like inflation, currency rate, foreign
exchange along with other rates of country (Harrison, Galland and Tewdwr-Jones, 2021).
As economic value of country is police stable as compared to other countries. So it will
be considered as an effective opportunity for bold Street coffee shop to perform its
business expansion practices in different cities of United Kingdom also along with
Australia. Social factors: As it basically contributes about belief, values as well as living standards
of society that could create a straight impact on Bold Street coffee shop business. As
country has a large acceptance of food as well as beverages company and provides a
positive impact in carrying out expansion method for performing out their business
operations which could be beneficial for coffee shop to perform its business operations
effectively in cities of United Kingdom with higher level of profitability.
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 Technological factors: As United Kingdom is implementing various technological
advancement for carrying out their business practices as well as companies of country are
generally focused on providing satisfaction to customers by identifying their
requirements as well as demands on high number by effective technology medium.
Therefore, it is helpful for Bold Street coffee shop to perform its business practices
through you getting support of various technological instruments in terms of preparing
coffee as well as other products by having innovation in their business operations. Legal factors: As this factor generally reflects about countries legal rules and regulations.
It has various disputes which are associated in terms of diversity, quality as well as
wedges and others rules. As United Kingdom carries a large understanding as well as
following regulations and rules on strict basis which are made by government of country
(Friedman, 2021). These laws and regulations should be followed by Bold street coffee
shop to perform its business practices as expansion in different cities of United Kingdom
along with Australia.
 Environmental factors: As it involves factors of climatic changes along with
conservation of environmental protection surrounding in different cities of United
Kingdom. As countries following strict laws and regulations for having safety of
surroundings. So in terms of Bold Street coffee shop business should use effective
implementation of various resources for developing their coffee products with safety and
ensure that they are not wasting resources and leads to to waste management and could
be recycled.
P2 Evaluation of opportunities for growth through Ansoff’s growth matrix.
Ansoff’s matrix is basically used by companies in order to develop different strategies as
well as frameworks that could provide help in designing different plans by which company will
be capable to accomplish growth in a particular time period (Fischer, Muthoora and Sworowski,
2021). As this model performs a focus to achieve needs as a demands of customers by grabbing
different opportunities which are present in markets for providing and generating more sales. In
terms of Bold Street coffee shop ansoff model is expressed as follows: Market penetration: As this is strategy existing product could be sold in markets for
generating high market share. It is basically valuable for Bold Street coffee shop as they
are aware related advancement in corporate markets as well as they have a royal brand
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base which could help them in performing out business operations unique from their
competitors. The most important and effective advantage of market penetration is that it
mainly focuses on the value of price reduction. Through this it becomes easy for Bold
street coffee shop also to attract large number of customers but at the same point of time
company may lose their product quality due to decrease in their prices which create an
impact on their brand image. Market development: As this strategy is used by company when they are selling out their
product as well as services in new corporate markets for targeting various marketplaces.
Basically it requires large investment along with funding for entering into new markets
through various factors in order to settle their market needs by carrying out various
research operations. Therefore, in relation with Bold Street coffee shop business should
implement different promotional tasks in order to expand their market share in new
corporate market segment in order to deliver their coffee products. With the help of
market development company get an opportunity to develop their customer base. Besides
this it becomes helpful for them to attract people to another geographical area but at the
same point of time a risk is also there as they will implement their products in complete
new marketplace. Product development: This method generally helps in introducing as well as launching of
new product or service in recent process scenario that is developed in terms of
accomplishing competence as well as confidence of customers so that objectives could be
accomplished by generating higher number of profits (Garvey, Taylor and Climate
Change Committee, 2021). As this Method could be implemented by Bold Street coffee
shop for improving their sales by making profits through innovation in their coffee by
making enhancement in their taste and flavours in order to generate competitive
advantage against competition. When a company launches a new product they achieve
growth by building up a professional network. Due to new innovative products better
development is being done. On the other hand companies may face failure also at
unexpected situations. So, on the basis of bold street coffee when they introduced a new
coffee it was beneficial for them to develop a new network.
 Diversification: This strategy involves launching of new innovative as well as creative
product and services in new markets for generating expansion of sales of business. This is
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strategy generally measures risk for business operations as well as it involves resistance
that could resist company’s performance. As Bold sweet coffee shop this strategy could
be used by their business in order to perform their business operations for entering into
new markets with their new products.
There are different strategies which are designed in ansoff matrix and could be used by Bold
Street coffee shop which is being used is of product development as well as diversification
strategies. As new markets basically take positive changes effectively in beverages market by
analysing different risk along with earning profit as well (Al-Ghrairee, 2021). Food sector is said
to be highly efficient factor in attracting more customers in higher numbers. So these strategies
will be beneficial for business to achieve their brand image in markets through contributing to
their growth along with development. As start up could use diversification strategy in order ton
enter into markets.
M1 Discussion for options which are available for having range of growth by analytical
frameworks for understanding of competitive advantage.
It has been analysed to that there are different strategies that are driven by various models
for providing higher and effective competitive advantage (Williams, 2021). As Bold street coffee
shop is basically focused on using cost focus strategy along with product development and
diversification strategy for achieving their productivity level in terms of generating profits for
carrying out expansion practices of business. As by implementing these strategies it could
provide business with different services that could minimise cost of business by attracting more
customers along with introducing new product in New market by having innovation in order to
increase productivity.
TASK 2
P3 Assessment of potential sources of funds which are present to businesses along with its
advantages and disadvantages.
As sources of funds provide benefits to companies for raising their capital as well as
benefit to business in relation to making support for achievement of goals. In terms of Bold
Street Coffee shop business needs $55,000 for expansion of their business operations as well as
business could security fund for approx. $20,000. So therefore business should have a limited
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number of sources why they require other sources of funds in order to raise capital as well as it
could be explain as follows: Internal sources: It basically defined to acquiring funds which would be increased by
company in order to collect by selling their own assets along with capital with a mote of
funding that are performed from market.
 External sources: As is defined two sources of funds which are gathered by company
businesses in various types of funds as well as it involves different factors like bank
loans, shares, debentures and other factors (Gallent, de Magalhaes and Freire Trigo,
2021). There are some of sources which could be limited and acquired by Bold Street
coffee shop that are as follows:
Angel financing:
It is said to be a source of fund that is needed by company in where few of investors invest in
their business as per their interest level along with achieving of sales and profits of condition of
business. Benefit: As Bold Street coffee shop provides more advantage as they are capable to
connect a provides interest level of investors according to their knowledge.
 Drawback: Bold Street coffee shop carries a limitation of acquiring Angel parents for
carrying out dividing their shares in sales and profits for business expansion.
Bank loan:
It is considered to be a number of amount that is borrowed bike company from along with it
could be repaid back to bank within a particular time period by having a specific amount of rate
of interest. It is most common and effective kind of funds acquiring method that could be used
by businesses for availing funds. In terms of Bold Street coffee shop long term as well as short
term businesses could avail loan through a specific amount of interest rate. Benefit: As Bold Street coffee shop has advantage from acquiring loans from bank as
well as they could get a large amount from balance and which is being paid off with the
particular time scale.
 Drawback: As Bold Street coffee shop drawback that because of loan is provided in
return of some assets along with bank takes few securities in order to provide loans and
they are seized by them if business will not be able to pay them back (Harrison and Gu,
2021).
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Overdraft:
As this source of funds is considered to be as access services that are collected by bank for
their special customers along with a strategy. As banks could access their limit of credit by
which a particular amount is to be withdrawn by businesses. Benefit: As this funding source is comfort less as well as flexibility by which coffee shop
could get more freedom in order to withdraw their amounts for balance.
 Drawback: As Bold Street coffee shop good have to pay a wide number of amount in
terms of overdraft acquired.
Crowd funding:
In accordance with this the amount is gathered from maximum number of audience and is
mainly performed through digital platforms. Benefits: - Bold street coffee has a benefit by this as they can use social media platforms
that promote all their product and services.
 Drawbacks: - They may face drawback as it create a low brand image in the market.
Trade credit:
As trade credit is defined to a business to business agreements by which customers could
purchase their products without paying out cash up front along with paying of supplier at a later
could be scheduled late. Benefits: In relation of Bold street cafe shop it could increase customer loyalty that could
protect buyer supplier relationship.
 Drawback: As by using out this mode Bold street cafe shop could face out loss of
goodwill along with higher price of raw materials.
M2 Evaluation of capable sources of funding along with justification for adaption of proper
source.
It has been analysed that there are different sources of finance that could be acquired by
Bold Street coffee shop for expanding their business operations by implementing the sources of
finance such as Angel financing as well as bank loans for generating more profits and sales in
terms of their expanding practices. As it is very effective as well as acceptability by attracting
different customers in order to manage their business operations in different cities. As we using
this source of finance it will be helpful for business to have funds for expanding business.
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TASK 3
P4 Business plan for growth that involves financial information along with strategic goals
for carrying business.
As business plan needs a large information in relation of document which good help
company for achieving its objective along with targets within a Time scale. It is said to be a
written document that it consists of all information which are associated with requirements of
business for having more growth and development. In terms of Bold Street coffee shop, it needs
a businessman that could help in assisting business to achieve development along with high
market share in an effective manner. It basically presents requirement of business which could
involves different factors like mission, vision, goals as well as other aspects. Business plan
benefits Bold Street coffee shop in performing out different functions by effectiveness through
help in performing out different roles by which their effectiveness could be increased in making
decisions for wellbeing of business (Xue, 2021). It also involves different policies that are related
with finance as well as investment which could be developed for accomplishing large number of
sales along with profits in order to expand business practices. Major goal for performing out
business plan to design positivism business environment along with achieved results in a specific
time scale. As Bold Street coffee shop comes under beverages company which deals in selling
product with their own ingredients. As bakery operations for giving effective directions which
are related to launching their coffee e bring as well as introducing their new products in new
markets. Where are different strategies that could be followed by business in order to increase
their effectiveness in corporate market cities of United Kingdom also with Australia for
attracting more customer in a large scale. As this plan all different aspects that are as follows: Vision: As Bold Street coffee shop has a vision of giving quality served cold drinks and
coffee with their own ingredients in terms of different quality of categorised services. Mission: As small business performs a mission to give quality served coffee drinks to
their customers by increasing satisfaction level of their customers. Financial information: It is related with inflows along with output of business that is
considered to be a main component of business which could help in accomplishing goals
in an effective manner (Huang and van Weesep, 2021). As Bold Street coffee shop uses
different factors like external as well as internal sources of funds for achieving their
business goals in a particular time scale.
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