Bold Brother Coffee: Growth Strategy and Funding Plan Analysis

This report presents a comprehensive growth plan for Bold Brother Coffee, a UK-based coffee shop. It begins with an introduction outlining the importance of strategic growth planning in a competitive market. The main body analyzes key growth considerations, including Porter's generic strategies and the GE McKinsey matrix, to identify competitive advantages and opportunities. The report then evaluates growth opportunities using the Ansoff matrix, examining market penetration, product development, market development, and diversification strategies, along with their associated risks and benefits. It also explores potential funding sources, detailing their advantages and disadvantages. A detailed business growth plan is designed, incorporating financial information and strategic objectives. Finally, the report evaluates exit and succession strategies, considering their advantages and disadvantages, to ensure the long-term sustainability and success of Bold Brother Coffee. The report concludes with recommendations and references to support its findings.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
Analysis of the key consideration of growth opportunity...........................................................3
Evaluation of growth opportunity by Ansoff growth matrix......................................................7
Analysis of the potential source of funding along with it’s one of its benefits and drawback. . .9
Designing of business growth plan , along with the financial information and strategic
objectives...................................................................................................................................11
Evaluation of exit and succession strategy along with consideration of advantages and
disadvantage..............................................................................................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22

INTRODUCTION
Planning for growth is one of the most important organization management function which
involves the consideration of multiple factors and business strategies in order to make the
effective growth and development plan. which should be competitive and sustainable for
growing in the exist and new market (Birkin, M., Clarke, G. And Clarke, M., 2017). Business
market is full of the competitors due to which small business organization have to focus on
development of their new branches across the different location in order to meet the competitive
edges and earn the higher revenue along with development of brand name well known and stable
organizations. Planning for growth is the strategy to make small business entity higher at the
national and global market (Yu, D., Yanxu, L. and Bojie, F., 2019). Bold brother coffee, is this
small scale coffee shop business in UK. Developed by Max and Alex located in the 16 round
church St, Cambridge CB5, 8AD. Offer best specialty coffee e with freshly cooked products. In
this report planning for growth is done in context to the Bold brothers coffee, which is involving
the analysis of key consideration of growth opportunities, along with the analysis of growth
opportunities by different tools. Different source of funding along with its advantages and
disadvantages also considered in this plan. Then in context to the growth opportunities analysis,
effective business plan is developed along with the consideration of exit situations and strategies
to manage it.
Main body
Analysis of the key consideration of growth opportunity
The small business organisation what is already established in the selected market, if plan for the
growth then they need to consider various factors of organisation and market such as they have
to consider their resources and product portfolio that has how much potential this factors are
having in order to offer the growth opportunity for business. Along with internal factors there are
some other external factors which are the key consideration for growth such as the different
method of Business expansion for international and global level (Alemayehu, B.Z. and Van
Vuuren, J., 2017). Broader consideration of all important factors related to growth and
development opportunity in context to Bould brothers coffee.
Porter’s generic matrix

This is one of the essential framework, also known as the Michael Porter's Generic
Strategies which help the organisation to identify the key factors by the aid of which
organisation can gain competitive edges and use it as a growth opportunity. Michael developed
three strategies. Such as cost leadership, differentiation and focus. Then he further divided focus
into two factor coast focus and differentiation focus )(Widiatama, Y., Hamid, A.A. and Matrono,
M., 2018).
Cost leadership- This strategy is involving planning for increasing market share by reducing the
cost of products due to which highest sale of the product help to increase the market share. Bould
brother coffee use the strategy to increase the customers and organisation revenue. This can be
done by the offering the relevant cost or cost effective products to the Cost restricted customers.

Differentiation- This is another strategy of growth and develop which used by the organisation
to meet competitive wages. What is involving the strategy to add uniqueness and innovator
properties on products and services in comparison to other competitors. By the help of which
organisation can use higher price rate strategy which can help to increase the revenue and profit.
But in order to use this strategy organisation have to consider various factor such as product
uniqueness, quality and durability. This is strategies can be good for Bould brothers coffee as
they are offering best quality products.
Cost focus and differentiation focus- This is another strategy of growth and development
which involves the application of cost leadership and differentiation selectively at this more
segment of selected market (Arbatani, T.R., Norouzi, E., and et. Al., 2019).
GE Mckency Metrix- This is a nine box matrix which is considering the different units of
organisation in context to the analysis of growth opportunity, Bible you waiting the strength and
be weakness of those units. There are two major group of the factors in context to which
different units of business is analysed by measuring them in three terms of potential at both
group of factors.
Industry attractiveness- This involves consideration of different business unit, such as product,
infrastructure, services, that how attractive these units are in the market according to which
organisation can choose one of them as a growth opportunity. But along with the attractiveness
business unit should be having the competitive strength.
Competitive strength- That is involving the consideration of products, location, market
segment, services and infrastructure. That how competitive are these units.
These two variables of factors is qualified into 3 categories of potential.
 High
 Medium
 Low
Then in context to this analysis organisation can use 3 different approaches of growth and
development management.
 Invest/grow
 Selective investment/earning
 Harvest/ divest

If the selective unit of organisation is having the higher attractiveness and higher competitive
strength then there should be best investment by using that as a growth opportunity. Another
hand if the business unit is having medium attractiveness and medium competitive strength then
the unit should be and the business plan with selective investment. The last factor is about
business unit which is having lower attractiveness and lower competitive strength then it should
be harvested or divested from the business plan. Bould brother coffee is having best

infrastructure, products, services and location. So organization have to use all these units as a
growth opportunity.
Along with the business resources and product portfolio there are some another key
consideration of business growth and development opportunity. Such as Digital platform- this
factor has to be considered for analysing the growth opportunity because that is the way a of
leading at the global market by coordinating with the team through virtual and internet
connection. In other hand Partnership -is the mode of Business expansion for example by this
process bould brothers can find partner in different location and foreign country to develop the
business model at that place. Franchising- this is one of the best way of business growth and
development because that is involving the handover of brand name, resources and strategies
through the franchise by franchisor in order to run the business in different country which further
add the equal share of profit and brand value development at global level.
Merger- by this strategy organisation can merge with the foreign country and work together to
grow each other.
Acquisition- this is the process which can be used by the higher performing organisation to by
the company of foreign country about to quit.
Vertical and horizontal- integration is a type of foreign direct investment what is done among
the participative country of economical integration. This helps to do free trading within the
participated country.
Along with products and business unites there are some another elements which should
consider in the analysis of growth opportunities and competitive advantage. Such as
collaboration and RBV.
Collaboration- This is business strategy or methods of collective working and goal
achievements. But along with the working support it also helps to meet competitive advantages
by reducing the competition. This is one of the process which also comes under the category of
key consideration of growth opportunity. Because the availability of partners and legal
permission. Organization can extend their business at global level.

RBV- This is the analytical tool which helps to analyze the competitive advantage and growth
opportunity. By evaluating resources of business interest of value, rare , inimitable and
organized. Such a the bould brothers coffee is having some resources which reach the
competitive advantages and growth opportunities. Such as products and services of the
organization is valuable, rare, organized along with this the interior, marketing strategy and
staffs are also valuable, rare and organized. So the product and marketing strengths is can use as
growth opportunities.
Recommendation
In context to Bould brother coffee some most appropriate growth opportunity consideration
models and tools are GE Mckency Metrix and franchising. Because GC Metrix analysis of
organization is indicates the competitive strength and industrial attractiveness. Of the company
in terms of their best infrastructure, products, services and location. Which is the indicates of
growth opportunity and in other hand this important growth opportunity factor is can be
effectively or collectively use with the franchising opportunity in order to develop at the global
level.
Evaluation of growth opportunity by Ansoff growth matrix
There in the market of business, different factors of growth and development are available in
context to analysis of which different tools and techniques are used related to some specific
factors of growth. Such as in order to analyse the market and product development opportunity
for business and growth matrix is used in this report.
Ansoff growth Metrix
This is analytical tool which is also considered as a product and market expansion grid which
guide the organisation for market and product development opportunities and risk. This involves
the four strategies of growth and development which further analyse in context to the
organisation by considering the advantages and risk (Tsakalerou, M., 2018.).

Market penetration- This is the strategy of expanding the business at existing market with
existing product to make more customers by the help of effective strategies such as offer,
discounts and good quality of the product at reasonable price. In context to the Bould brother
coffee market penetration will be lower risk opportunity of growth.
Advantage- That is the best growth opportunity in context to existing market for increasing the
customers and revenue at that market with the best offers and services. This is not having any
risk of loss as compare to other.
Disadvantage- This is strategy is limited to the existing market area, which not work for the
international business and higher revenues.
Product development- This is another Business expansion strategy which involves development
of new products for existing market with the varieties of facilities in that. This helps to satisfy the
existing customers and aid to make more customers from the existing market. This strategy is
having medium risk which can be managed by the Bold brother coffee because they are having
the best resources and values.
Advantages- Helps to attract the new customers from existing market and satisfy the existing
customers which have to make higher revenues.
Disadvantages- Chances of medium risk due to the possibility of products unsatisfactory results

Market development- That is the third strategy of Business expansion which involves the
opportunity of converting The small business into large business, by expanding the business in
new market with existing products and services (Trigeorgis, L., Baldi, F., And et. Al., 2021). In
order to make this analysis effectively that is important to consider the above analysis of porter’s
generic strategies and GE Metrix. In context to Bould brother coffee this can offer the medium
risk growth opportunity and this can be good option for increasing the value of their unique
coffee test.
Advantage- This gives the opportunity for increasing the brand value and revenue and help to
make the organisation higher with different branches.
Disadvantage- There is the medium risk of loss due to the lack of customer relationship with the
customers of New Market.
Diversification- This is another growth opportunity strategy which involves the expansion of
business at New Market with new products. To make higher revenues and profit. This can be
good for the organisation which is already having higher values in the market with strong
financial stability and that is not good opportunity for selected organization.
Advantages- Give the opportunity for profit maximization by investing on different product
portfolio.
Disadvantage- There is higher risk of loss because for expanding into the new market with new
products organisation need higher investment and at the failure it can be very risky for the brand
(Alsem, K.J., 2019).
Analysis of the potential source of funding along with it’s one of its benefits and drawback
Meaning of investment decision making- this is the process of effectively managing fund, within
the organisation at different assets of business, so that gold is can be achieved for higher revenue
and firm can earn the higher returns for investors.
Classification of source of funding
There are the different sources of funding on the basis, ownership, period and source of
gathering.
Based on the ownership
 Owners fund- this is the type of fund which is facilitated by the owner of company or
solo trader, who provides the funding for different assets of business by retained earnings
and equity share.

 Borrowed fund- this is a type of fund which borrow from the others such as public
deposit, commercial bank, financial institution (Hague, P., 2019).
Based on the period
 Long term- money or fund which is borrowed for the 10 years.
 Medium-term- open ended debt with the policy of three or four year returns.
 Short term- debt provide with the return policy of 1 to 3 year.
Based on source of
 Internal and external funding- Internal funding is type of self sufficient funding which
comes from the organisation profit and equity. In other hand external funding collected
from the outsiders such as investors in exchange of interest.
Types of funding sources
In the business market there are the various investors and banks who to provide highest source of
funding to the small businesses and large businesses for the Business expansion and
development.
 Private bank loan- There are the various private bank who are providing funding for the
small and large business entities in exchange of the selected interest rate and policies.
Advantages- This provide higher amount of funding within short period of time.
Disadvantages- It takes the higher interest rate and documentation procedure with the
huge number of security document collection.
 Government bank loan- UK Government always support the entrepreneur and small
business development for the higher economic growth. Due to which government bank is
providing free money and some other funding with exchange of small interest rate.
Advantages- lower interest rate, save and no conflict. This is one of the best funding
source which provide the long-term funding at lower interest rate.
Disadvantages- Its take use time and documentation to proceed funding for business
plan.
 Angel investors- This is the type of financial backing funding source provided to the
company in exchange of ownership equity. This is provided by the individuals who are
having high net worth.
Benefits- Easy process of funding by just the presentation of innovative and effective
business plan, this also helps to use the investors knowledge and contact.

Drawback- There will be the chances of higher interference from the side of Angel
investor. Chances of the laws of complete control (Bova, T., 2018).
 Crowd funding- This is the source of funding done by the internet and small social
media group of charity, this source of funding helped to raise the fund for a small
business organisation by collecting the small money from multiple peoples.
Benefits- Easy and effective way of funding, help to collect the fund without any interest
charges.
Drawback- It can cause bad impact on organisation brand value, and this it can also
cause the higher returns in the form of offer and discounts (Ishak, M.S.I., Kamaruddin,
M.H., 2021).
Recommendation
The best source of funding which can be suitable and appropriate for the Bould brothers coffee is
government loan as it is lower intrastate rate conflict free, legal source of funding with
opportunity of free money from government. This will provide safe and long term financing
which some more opportunities of befits provided by the government in context to small
business development.
Designing of business growth plan , along with the financial information and strategic objectives
Executive summary
That is used to represent the main goals and objectives of business plan, Bold brothers coffee
new business plan goals and objectives is related to the Business expansion, increasing the rate
of employment and innovation within the line of coffee shop business, by the aid of new and
speciality coffee taste. This businessman is involving the detailed description of vision, mission,
marketing strategy, financial and team management plan along with the consideration of other
important factors.
Company name and brief introduction
Name of the company is Bould brother coffee, this company is known for its speciality coffee
and freshly prepared food items. Located in the 16 round Church St, Cambridge UK, with the
best attractive infrastructure and interior.
Vision- It is developed by the two brothers with the vision of offering best speciality coffee.
The aims to provide best quality coffee and drinks.