Business Growth Strategies and Funding for Change Please Report

This report provides a comprehensive analysis of growth strategies and funding options for the London-based social enterprise and coffee chain, "Change Please". The report begins with an introduction outlining the importance of planning for business growth and then analyzes key considerations for evaluating growth opportunities, focusing on competitive advantages and the application of Porter's Generic Strategies and PESTLE analysis. It then evaluates growth opportunities using Ansoff's Growth Matrix, considering market penetration, market development, product development, and diversification strategies. Furthermore, the report assesses possible sources of funding, including bank loans, venture capitalists, crowdfunding, and Small Business Administration loans, discussing the advantages and disadvantages of each. Finally, it designs a business plan for growth that includes financial information and strategic goals for scaling up the business. The report aims to provide a practical guide for Change Please to expand and achieve sustainable growth.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P 1 Key considerations for evaluating growth chances and justify these within an
organizational context.................................................................................................................1
P 2 Opportunities for growth implementing Ansoff's Growth matrix........................................3
LO 2.................................................................................................................................................5
P 3 Possible sources of funding and discuss advantages and disadvantages..............................5
LO 3.................................................................................................................................................7
P 4 Business plan for growth involves financial information and strategic goals for scaling up
business. .....................................................................................................................................7
LO 4.................................................................................................................................................9
P 5 Exist and succession option for small business advantages and disadvantages of each
option ..........................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Planning is the important to any business throughout their existence. It is necessary to
small business for identifying the growth opportunities as well as planning for development of
the business (Mason, 2015). This study is based on the “Change Please”. It is the London -based
social enterprise and coffee chain. Report will analyse key considerations for evaluating growth
chances and justify these considerations within company context. It will evaluate growth chances
by implementing Ansoff's Growth Matrix. Furthermore, assignment will assess the possible
source of funding and discuss their benefits and drawbacks. It will design the business plan for
growth which involves financial information and strategic objectives for scaling up the business.
LO 1
P 1 Key considerations for evaluating growth chances and justify these within an organizational
context
Competitive advantages:
It is the concept which enable company to exceed their challengers. Competitive
advantage is attribute of foundation of growth. It can involve access to natural resources like
high skilled labour, large entry barriers and access to new technology (Pugalis and et.al., 2015).
For that,“Change Please” follow the porter's generic strategies to determine and evaluate
competitive advantages as growth opportunities for the business.
Porter's Generic Strategy:
It is business strategy which can be followed in terms of earn competitive edge. The
strategies relate to level to which scope of activities of businesses. The main strategic challenge
for business is to discover mode of accomplishing sustainable competitive advantage over the
competing goods and company in the market. There are three generic strategies such as cost
leadership, differentiation and focus. These approaches are implemented at the business unit
level.
Cost Leadership Strategy:
This kind of generic strategy refers to be the low cost producer in an industry for
provided level of quality. Company like Change Please sells their goods like coffee either at
average prices of industry to gain larger profitability or below the average of prices in industry to
increase the market share (Porter's Generic Strategy, 2010). Some modes by which company get
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cost advantages are by better procedure skillfulness, increasing specific access to high source of
low costs material, creating optimum beginning and vertical integration judgement.
Differentiation Strategy:
This generic strategy refers to growth of good or service which provides specific
concepts that are valuable through consumers, and they realize to be improved than or different
from goods of competition. The company anticipation that larger costs will more than cover the
additional prices incurred in providing the specific goods (Wynn, 2017).
Focus Strategy:
This generic strategy focuses on narrow segment and within that section efforts to
accomplish either costs advantages or differentiation. Company is utilized focus approach
frequently enjoys large level of consumer loyalty and this established loyalty discourages other
company from competing directly.
In order to that, “Change Please” need to follow the PESTLE analyse for determining the
competitive advantages as the concept of growth opportunities for the business.
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Illustration 1: Porter's Generic Strategy
Source: (Porter's Generic Strategy, 2010)

Political Factors: It includes government regulations, trade policies, political stability etc. which
influence on the “Change Please” in both positive and negative ways. For example: political
instability in nation in which company want to operate (Sarin, 2019). Changes in government
policies influences on the operations and functions of company negatively.
Economic Factors: It involves inflation rates, interest rates, disposable income of customers,
unemployment rate, economic growth etc. which influence on the “Change Please” in both
positive and negative ways. For example: high level of income to consumers that can effect on
buying power of customers and can potential change in demand or supply models in the
economy.
Social Factors: It includes demographic features, norms and values of the population, income
distribution, safety, lifestyle and cultural barriers etc. which influence on the “Change Please” in
both positive and negative ways (Bridge and Dodds, 2018). For instance: changes in taste and
preference effects on operation and function of selected company.
Technological Factors: It involves level of innovation, research and development action,
technological changes and figure of awareness of technology etc. which influence on the
“Change Please” in both positive and negative ways. For example: lots of money on developing
practical application which can be outdated in coming year due to disruptive technological
changes. This can influence on operation and function of selected organization.
Environmental Factors: It includes enhancing scarcity of raw material, pollution, carbon
footprints, weather, climate, environmental offsets, climate change etc. which influence on the
“Change Please” in both positive and negative ways (Chambers and Humble, 2017).
Legal Factors: It involves different law discrimination, antitrust, employment, consumer
protection, copy rights and patent, health safety regulations etc. which influence on the “Change
Please” in both positive and negative ways. For example: company necessary to follow all the
regulation for protecting health and safety of consumers in terms of providing the social services
to consumers.
P 2 Opportunities for growth implementing Ansoff's Growth matrix
It is the necessary to identify the opportunities by small company in terms of planning for
growth of business. Therefore, “Change Please” can be followed Ansoff's Growth Matrix. This
matrix is directed on present and possible goods and consumers. There are four potential
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combinations of product and market through involving modes of grow via existence and new
goods, and in existent and new marketplace. Such as:
Market Penetration:
Company tries to accomplish the growth with existence goods in their current market segments
which aimed to raise their market-share (Burns and Dewhurst, eds., 2016). In developing
marketplace, easily maintaining market share which result in development. There can exist
chances to raise market share if challengers accomplish capacity boundaries.
Market Development:
Organization tries growth through targeting their existence goods to new market segments. If the
core competencies of company are related more to particular goods rather than their experience
with market segment, so that new market development is effective strategy (Ansoff's Growth
Matrix, 2010). In this context, Change Please follow this strategy in which they provide the
existing goods in the new market for increase their market share.
Product Development:
Company evolve new goods targeted to their existent market segments. If strength of company is
related to particular consumers instead of particular good itself, so that development of new
product strategy can be appropriate for firm. It can explore their strengths through developing
new commodity targeted to their existent consumers (Chambers and Humble, 2017).
Diversification:
Company develops through diversifying into new businesses through growing new goods for
fresh marketplace. It needs both development of product and market as well as can be external
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Illustration 2: Ansoff's Growth Matrix
Source: (Ansoff's Growth Matrix, 2010)

the core competencies of the company. It can be reasonable choice if large risk is compensated
through opportunity of high rate of return. It is the most risky growth strategy for the
organization.
In order to that, market development strategy will be suitable for “Change Please” coffee
shop and social enterprise. Company want to provide the existing goods within the new
marketplace. This can be increased attraction of consumers towards the products or services and
company.
LO 2
P 3 Possible sources of funding and discuss advantages and disadvantages
Every kind of small and medium-sized company requires source of financing from where
they can gather money for growing company (McKeever, 2016). The main purpose of evaluating
all sources of financing is to make judgement for gathering finance and fund in effective manner.
“Change Please” can make decision about investment and funding through examine benefits and
drawbacks of each and every source of funds.
Investment decision-making:
It becomes essential for “Change Please” to make judgements in relation to explore their
company and investment. It has various methods that can create it capable to examine
significance of different tasks:
Pay back period: It means particular time that can be taken by company to find the cost of
investment. It is an finance appraisal method because in this kind of company needs taking initial
inflow and can avoid cash flows after the period in that firm find cash flow.
Net Present Value: It presents the return value. For calculating this value and understand the
bad and good return value, organization requires to figure out the difference among present value
of cash outflows and inflows in particular time period (Lehner, Grabmann and Ennsgraber,
2015). The task is being recognized only when if the value is positive otherwise in can be
rejected.
Sources of financing:
If the company decide to invest in terms of developing the product in the new market, so
that, they need to fund and finance for that. Thus, various sources of funds can be followed by
“Change Please” for their project. Such as:
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Bank Loan: It is the famous and most trending way of financing. It is called as more
secure financing way because it happens after having paper work. For financing from this way, it
is essential for company to make sure that they have enough knowledge of all process which
involves interest rate.
Benefits:
 It has many kinds of financing as it all base on requirements of organization.
 The financing procedure is relatively fast if company qualify (Mitchell, Palacios and
Leachman, 2015).
Drawbacks:
 Requirement to have appropriate knowledge and education to follow the best option.
 The main drawback of this way is firm needs lots of documents and written work which
can be time-consuming.
Venture Capitalists: These are known investors who put particular figure of money in
exchange for equity of the firm. Investors get returns if firm is being acquired through other
organization and become public (Seven Types of Funding Sources for your Startup, 2013). This
kind of capitalists online interest on those firms who have powerful image with possible to
provide good return.
Benefits:
 This kind of investors give post financing facilities like expertise and mentorship.
 Venture capitalist financing provides company direct credibility and open other doors to
broad network of essential people (Jorm, 2018).
Drawbacks:
 Due to importance about financing, firms can be strained to give up large chunk of their
business.
Crowdfunding: It is kind of gathering fund and money. Each and every kind of small-
medium sized and social company. In this kind, firms gather small amount of capital from
broader number of people. It can be advantageous when company does not need big amount. It
can gather through friends, family, colleagues if firm has powerful brand image, relationship and
reputation.
Benefits:
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 It does not need large figure of interest as the company can effectively create pool of
investor.
Drawbacks:
 This source of financing needs enough dedication and time to contact people and make
then agree.
Small Business Administration Loans: This includes financing from government
administration dedicated to help small-medium sized companies to succeed (Jaafar and Woertz,
2016). This can aid to get capital and assure that certain percentage of contracts are granted to
small firms.
Benefits:
 This aid to develop relations among lenders and borrowers.
 Raised opportunities of acquiring bank loan if SBA loan is appropriately handled.
Drawbacks:
 Strict qualification programmes.
LO 3
P 4 Business plan for growth involves financial information and strategic goals for scaling up
business.
Executive Summary:
This business plan is going to present vision of firm that it needs to accomplish and on
that basis it creates business plan. It will present internal analyse that involves strengths,
weaknesses, opportunities and threats of the organization that assist the growing their business.
Also, it will show competitive analyse that involves rivals and strategies of firm to decrease
competition and make itself capable to take chances (Weiss and et.al., 2019). Market analyse will
present target market and approaches of chosen firm in relation to attract broad range of
consumers. Also, it will show the financial information such as cash flows, profits and loss
account, balance sheet that help to identify the financial position of the organization.
Business Vision and Objectives:
“Change Please” are social enterprise who train and employ homeless people to job as
baristas in mobile coffee vans across London. The vision of “Change Please” is to handle
homelessness through selling great coffee. Company require to become wholly-fledged baristas
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through authorizing homeless people with abilities, instruments and special beans. The objective
of “Change Please” is to empower the homelessness people by training them to be baristas.
SWOT Analyse:
Strengths
 the unique selling of points which will
carve out the space for company to
trade in effective manner.
 Quality of coffee, environment and
décor of company, its location and
another positive views which attract the
consumer base.
Weaknesses
 Large level of competitor in industry in
which company is operated.
 Lack of financial resource which
impact on growth of business.
Opportunities
 High consumer demand and attraction
towards the “Change Please” which can
make chance to grow the business.
 Technological development in that
location or nation which can help to
connect the consumers in effective
manner.
Threats
 Modification in prices of coffee and
variation in economy which can
influenced on operation of firm.
 Essential financial and social trends
which endanger the coffee shop and
being of other rivals.
Marketing Strategy: The main reason of success of company is it does mouth promotion and
through social media platforms. “Change Please” find themselves at various level and create
calculated judgements according to available data and information from Return on Investment.
Through social media networks such as Facebook, Instagram, Twitter, it has created itself
capable to make all people know the significance of social services and coffee products
(Chambers and Humble, 2017). Marketing strategy aid the firm in advertising their enterprise
into another marketplaces. Also, it can help in achieving their objectives.
Financial Data:
Financial information such as cash flows, profits and loss account, balance sheet that
help to identify the financial position of the organization.
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Competitive analysis :This competitive analysis can be referred as the tool the help the
company and it management to identify their competitors in the current market, and also help to
identify the potential competitors, that can enter the market in the future.
Change Please company can also apply the competitive analysis as to identify the current
and potential competitors, that can affect its business and become threat for the company. With
the help of this, company will identify the strength, weakness, objective etc. of their competitors,
in order to make changes in their strategies and gain the market effectively (Burns and Dewhurst,
eds., 2016). In order to identify such information of the competitors, company can visit the
website of their competitors or can evaluate their marketing campaign.
Controlling and monitoring — This step refers with the proper controlling and monitoring the
business plan of the change piece company. In this step number of steps are included which are
reviewing the data, tracking the system of the business, developing the plan and can make
changes in the plan when needed.
This business plan will help the Change Please company, as it will help to identify
weather this plan have some scope or not in the market. This step is ongoing process, which help
the company to determine all the changes by proper monitoring and controlling each and every
action and their strategies (Chambers and Humble, 2017). So that company can make changes
and make improvement in their plan to gain growth in the market.
LO 4
P 5 Exist and succession option for small business advantages and disadvantages of each option
Succession planning can be described as approach and process of growing company in
exact direction in terms of replace business leader at the upcoming date. Exit planning is broad
analyse all these elements which can have effects on the performance and business owner. Many
options of both planning are defined as below:
Passing the business to a successor: Passing the business refers to pass existent company in the
hand of successor who have ability to operate the business. “Change Please” can pass their
business to their family member or the manager of firm (McKeever, 2016).
Advantages:
 It decrease the opportunities of any third party engagement.
Disadvantage:
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