Higher Nationals: Planning for Growth and Business Strategies

This report examines growth strategies for the Monmouth Coffee Company, a UK-based café, addressing key considerations for evaluating growth opportunities, including internal and external environmental factors. It applies Ansoff's growth vector matrix to assess market penetration, product development, market development, and diversification strategies. The report also evaluates potential funding sources like banks, financial institutions, and crowdfunding, discussing the benefits and drawbacks of each. Furthermore, it develops a business plan with financial information and strategic objectives for scaling up the business. Finally, it explores exit or succession options for a small business, outlining the advantages and disadvantages of each, providing a comprehensive overview of growth planning and implementation for the company.

PLANNING FOR GROWTH

Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 key considerations for evaluating growth opportunities and justify these considerations
within an organization.................................................................................................................3
P 2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix..................5
LO 2.................................................................................................................................................6
P 3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................6
LO 3.................................................................................................................................................9
P 4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business....................................................................................................................9
LO 4...............................................................................................................................................12
P 5 Exit or succession options for a small business explaining the benefits and drawbacks of
each option.................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
This report highlights the importance of planning of growth and the measures that are taken in
order to implement it in their culture. Monmouth Coffee Company is an established café and
coffee shops in UK which is viable and strong enough to plan for growth. This can be done but it
needs to be ensure that practices such as these are considered. Considerations for evaluating
growth opportunities and justify these considerations. The opportunities for growth applying
Ansoff’s growth vector matrix. The potential sources of funding available to businesses and
discuss benefits and drawbacks of each source. Business plan for growth that includes financial
information and strategic objectives for scaling up a business. Exit or succession options for a
small business explaining the benefits and drawbacks of each option.
LO 1
P 1 key considerations for evaluating growth opportunities and justify these considerations
within an organization
In order to assess the opportunities for growth it is necessary for the business that are
operating on a small scale to analyze both the environment of the company that is internal and
external. This will help them to form and establish the structure of the company through which
they will be able to comply with these factors and be able to increase the visibility of the
business in the market. External factors can affect the business of the company but they are the
ones that determine that business will be able to avail the opportunities of growth (Tomlins and
et.al., 2020).
Product Development-
Development of offerings by the Monmouth Coffee Company will be able to help them
to make and design the path so that business can achieve growth. This aspect is concerned with
making sure that with time business is making changes in their offerings and portfolio so that
customers do not get bored. The café believe that it will enhance the reach and quality of their
services. If they are able to add more to the varieties of the product then it will help them to
retain their customers.
Portfolio Management-

This aspect will help the Monmouth Coffee Company to find out their position in the
market through which they will be able to work on the strategies that leave their competitors
behind. It helps to increase the aspect of branding so that they can be able to win the trust of
consumers and enhance the scale of operations of business.
Boston Consultancy Group Matrix-
This aspect helps the business to assess their portfolio on the basis of needs and trends of
the market and the services offered by the competitors of the brand. This tool is considered as an
effective measure for the company to imply as it helps them to analyze the viability of the
operations and the rate of growth for them (Park and LaFrombois, 2019).
Brand quadrants-
This way Monmouth Coffee Company will be able to invest in that areas that gives them
substantial rate of return so that they can survive in the market.
Dogs-
This aspect states that business has a low share in the market in the sector they are
dealing in. This way business is able to gain insight so which tells them that they need to make
changes in their structure, strategies they have implemented and most importantly they need to
bring more improvement in the level of quality through which they will be able to retain their
customers (Olesen and Hansen, 2020).
Cash Cows-
This aspect of the Matrix assess those services which has high level of share in the
market but on the downside opportunities for them are less. Most of their services and items that
are classified under this aspect turn out to be profitable for the company but the rate on which it
grows is lower. The junk food that is offered by Monmouth Coffee Company has a high demand
but on the basis of recent trends the rate of their growth is low.
Stars-

This aspect of Matrix states that all the items that are offered by the Monmouth Coffee
Company have high possibility of rate of growth and high share in the market. This aspect helps
the company to achieve growth in the sector they are operating in. The items that are offered by
the company are reasonable which is considered as one of the factors of success for them.
Question Mark-
This aspect states that in the beginning the varieties offered by the company will have
low share in the market but they will achieve growth if the strategies used and implemented are
effective. There is another reason which takes time to achieve growth and that is many of the
people do not consider the offerings of the café valuable on the basis of money charged that is
what needs to be changed by the company.
P 2 Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
Matrix of Ansoff growth
With the help of this strategy the business is able to enhance their capabilities in the
sector they serve. With this strategy the company will be able to analyze the market in which
they serve in and those markets where they want to expand.
Market Penetration-
This aspect of strategy states will help the Monmouth Coffee Company to increase their
chances of getting the opportunities through which they can increase the scale of operations. It is
believed that when the cycle of product meets saturation point then it will observe reduction in
sales. In order to overcome this issue they work on market penetration. This strategy will allow
Monmouth Coffee Company to reduce the prices of their offering and divide their attention to
the aspect of marketing. Other than this it is necessary that they make sure that strategies taken
are compulsive and aggressive so that they can make a deal with the competitors of the café
through which they will be able to serve more people (Rienzo and Chen, 2018).
Development of Product-
This aspect is concerned with the analysis of the market and its capabilities so that they
can derive their focus on products that are expected to be launched. This is done so that more

customers can be influenced in order to make a purchase. For example whenever café wants to
introduce some new dish or beverage they will conduct a research or analysis of the market
through which they will be able to know the taste and preferences of people so that they can
introduce something that can satisfy their needs and wants. Monmouth Coffee Company can also
partner up with someone who changes their menu consistently so that it will be easier for them to
follow up the trend.
Market Development-
This aspect will help Monmouth Coffee Company to form a strategy through which they
can make their way to new markets and serve to more consumers where the growth and potential
of business is more. This is considered as an effective measure because with the help of it they
are able to expand their business in different markets. For example just like they have been
successful in establishing the base of customers in UK they can establish their base in different
countries (Moro Visconti, Montesi and Papiro, 2018).
Diversification-
With the help of this aspect the Monmouth Coffee Company will be able to enter into
different markets with the same varieties and services that they offer in they already offer in
other markets. This way they will be able to serve the same services for the markets that are
domestic and the markets that are foreign. For example with the help of this strategy Monmouth
Coffee Company will be able to increase their visibility and make their brand known through
which they will be able to achieve growth.
On the basis of analysis it has been assessed that Ansoff Matrix will help the company to
achieve growth and enhance their capabilities but it is important that they focus more on the
aspect of development of product and market penetration so that they can attract more people.
LO 2
P 3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
Banks-

Every business irrespective of their scale and nature considers this option so that they can
get funds to maintain the operations of business. The money invested in the business helps them
to meet the needs and wants of people. Another reason that business entities prefer this method is
that they are believed to be that method which is safest among all. After the option has been
finalized business asks the bank to structure for the repayment of funds taken and it is done in the
form of equated monthly installment (Long, Geng and Shakeel, 2016).
Benefits-
 The rate of interest that is taken for loan can be easily returned by Monmouth Coffee
Company.
 Even the timing of payment divided is flexible for the company.
 Loan can also be taken in the form of personalized manner (Linovski, 2019).
Demerits-
 The decided Equated monthly installment’s rate of interest is not fixed as it can change
anytime on the basis of demand and supply of goods in market.
 The process of foreclosure turns out to be expensive for the business which creates
difficulties for them.
Financial Institution-
Many businesses consider this aspect to get funds for their business so that they can look
and claim the opportunities of development and reach the level of growth. There are many
institutions for finance in UK such as Barclay so that they can invest in the sector of corporate
which helps them to reach the level of objectives and goals. The method of taking funds through
these institutions seems to be convenient and easy because when it is compared to bank this
aspect impose less restriction on funds. For instance Monmouth Coffee Company can get funds
from Barclays by completing the required details so that they can get their funds (Kim and
Newman, 2020).
Benefits-
 The benefit of it is that the schemes provided by these institutions are better than bank.

 This method is also considered as a source of finance on which people puts their trust.
 The procedure of finance and the completion of it is fast than banks.
Demerits-
 The things that are asked for collateral are higher if compared with bank.
 This source of finance is also expensive for the business.
Crowd Funding-
This option of finance also comes under the sources that are major for the companies.
This aspect takes funds by offering and selling the shares in the market. Many people consider it
as a necessary aspect as they put their money into these shares as an investment; it is because
they believe that it is safer to invest money and get returns than to just keep it safe. This way
Monmouth Coffee Company has the option to make themselves as a public company and attract
the people so that they can get their required funds. For instance if they raise money by issuing
their shares they can get the funds and meet with the level of expected expansion (Harrison,
2020).
Benefits-
 This tool is considered as effective because it meets the criteria of getting the funds.
 All the activities are assessed which are related with funds in this aspect which are
concerned with getting the money and the process of their repayment.
Demerits-
 This aspect breaks the ownership and give them to people on the basis of shares bought
by them.
Justification-
It is best for Monmouth Coffee Company to consider the option of banks or institutions
that lends money as both of them are safe and the rate of interest increases on the basis of
standard of living and the GDP of the country in which business will have to pay more but they
will earn more.

LO 3
P 4 Business plan for growth that includes financial information and strategic objectives for
scaling up a business.
Executive Summary-
Monmouth Coffee Company is working on things which can help them to make changes
in their range of services. The reason behind that is so that they can enhance their reach by
expanding their base of operations and serve in different markets. They are working on different
strategies through which they are able to increase the base of customers. They are forming the
structure of the company so that they can make their base in other countries where they need to
expand and suit their operations. This will help them to enhance and develop their audience
through which they will be able to generate more revenue and increase the scale of operations by
building the name of the brand in the market.
Mission and Vision
They want to serve the best quality beverages and food which makes people crave for it again
and again.
Objectives-
 To achieve 20 per cent of the share in market by the end of 2021.
 To maintain 50 per cent of the customers that already exist and those that are acquired so
that they can get repeated business by them by May 2021.
 To increase the sales of the company by 30 per cent till May 2021.
SWOT Analysis-
Strength
 The campaign of marketing used by the Monmouth Coffee Company is aggressive so that
it leaves an impact in the eyes of target audience.
 They have been successful in decreasing the overheads with the help of taking the use of
technology that is new and developed.

 It is because of the variety offered by Monmouth Coffee Company to their customers
which helps them to attract more customers.
Weakness
 The Monmouth Coffee Company has faced the issue of getting funds many times which
has decreased the power of their resources and left a negative impact on the minds of
target audience.
 The coffee shops that are established and which have a successful image of their brand
are able to take their customers away from them which affects the business of Monmouth
Coffee Company.
Opportunities
 In order to increase their sales they have the opportunity to keep the stores open till late
so that they can serve more customers and bring in more revenue.
 They have the opportunity to enhance the services of the brand through which they will
be able to improve their brand. They have the option to sell their raw coffee beans, coffee
makers and other products related to this aspect and all of them needs to be sold under the
name of brand.
Threats
 The strategies that are used by competitors which are large chains can affect the business
of the company.
 The expenses incurred are harder to bear as there are many of them such as cost incurred
by the regulations of FDA and expenses that are unpredictable.
Strategies of Marketing-
Monmouth Coffee Company use different and various strategies of marketing in order to
promote their brand and enhance their capabilities. Strategies such as marketing through social
media, digital marketing, traditional methods of advertising such as television, newspapers,
banners etc. They have also tied up with online partners so that they can boost their sales by

making their products available on their platform which will increase the level of convenience
for customers as they can get it delivered on home.
Budget-
In order to set the budget company assess where they are lacking so that they can make
the necessary changes in that area. The budget drawn is taken on the basis of these areas which
needs improvement so that they can improve the visibility of the brand. The estimate designed by
Monmouth Coffee Company is more than 30,000 Euros (Gumel, 2019).
Sources of Finance-
There are many sources which are available to the company and whichever provides
them better assistance, facilities, schemes the Monmouth Coffee Company will take them as a
source of finance.
Factors of Risk-
There are many factors of risk involved which takes away the business of the company.
For instance competition is high in the market, the level of expansion and working on setting up
the brand requires many external factors to be assessed and solved.
Monitoring and Control-
In order to monitor the performance of the café it is important and useful to enable the
strategy of key performance indicator. This way they will have an insight about where the
changes needs to be made so that they can improve their quality and offerings through which
they will be able to meet the results set by them.
LO 4
P 5 Exit or succession options for a small business explaining the benefits and drawbacks of each
option.
Liquidation-

This method will help the company to sell all of their assets such as machineries etc. to an
interested buyer and get the rate of those to close the operations of business and exit the market.
This aspect is considered to be taken when they have no other option to leave the market or close
down their services. In order to get good rate of return for the assets sold out is important that
they take care of them and keep them in good condition so that deal can be finalized with no
negotiations (Globocnik, Faullant and Parastuty, 2020).
Merits-
 For leaving the market no other method is considered as fastest as compared to it.
 The process of liquidation is simple and easily understandable.
Demerits-
 It is not necessary that this method will always get the rate of return which is expected by
the leaders and owners.
 The money that is received after the selling of business first given to the creditors after
that whatever amount is left is divided between the partners.
 The equipment, machine or assets that are listed by the company for sale will be
considered as second hand and the face value of many of the assets will not be worth
because it is assessed after the value of depreciation is taken out.
Sell it to competitors-
In order to leave the market Monmouth Coffee Company can offer a deal to those who
are operating in the same sector. This is considered by them easily as there are many benefits for
them. Some of the business consider for synergy so that they are able to reduce the immense
level of competition they face from others (DODDS, DIMANCHE and SADOWSKI, 2018).
Merits-
 It is necessary that the interested dealer or entity is motivated enough so that it gives the
benefit to the Monmouth Coffee Company of getting the rate of return.
Demerits-