CafePod Coffee Co: Evaluating Growth Opportunities and Strategies

This report provides a comprehensive analysis of CafePod Coffee Co's growth strategies, encompassing market analysis, financial sources, business plans, and exit strategies. The report begins with an introduction outlining the importance of a growth plan for a company like CafePod, which was fou...Read More

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Evaluation for company growth.............................................................................................1
Understanding of competitive advantages..............................................................................5
TASK 2............................................................................................................................................5
Financial sources....................................................................................................................5
Evaluation of financial source................................................................................................6
TASK 3............................................................................................................................................6
Business plan..........................................................................................................................6
Evaluation of business plan for organisation..........................................................................9
TASK 4............................................................................................................................................9
Exit plan..................................................................................................................................9
Evaluation of exist plan........................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A growth plan is a strategic activity that a company or organization plans to promote growth in
the market. This allows the company to track organic sales growth. A good strategic plan helps
prepare a realistic vision for the future growth of the company and maximizes the chances of
successful growth. Planning for growth allows investor to see matter for establishment for their
business (Agyapong and et. al., 2021). This allows organisation to allocate with their resources
towards a centred efforts to adopt in order to change in the industry through digital disruption
and differentiate from their competitors. CafePod Coffee Co is an independent craft coffee
company founded in 2011. This report provides analysis relevant to small businesses to assess
growth opportunities, funding sources, appropriate business plans for growth, and exit plans. As
the company needs to improve its operations and take advantage of its growth to establish its
position in the market. A growth plan offers a variety of advantages for a company to make
strategies and decisions to drive the company's growth in the market.
MAIN BODY
TASK 1
Evaluation for company growth.
Various analyses of the company can understand the market analysis through internal and
external analysis and other various frameworks to understand the market, in order to assess the
growth opportunities of CafePod coffee. This is described below.
Pestle analysis
Political – There are various political issues that can affect the coffee industry.
Companies must respect all laws.
Economical – There are several economic laws that affect business growth. Business is
slightly dependent on the country's economy.
Social – There are constant shifts in market trends regarding customer preferences and living
standards that can affect CafePod (Christian, 2019).
Technology - There are constant changes in technology that businesses must consider in
their operational processes. And then there are the technologies that help grow raw materials.
Legal – There are several rules, regulations, and laws that can affect the growth of the
business.
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Environmental - Due to various governmental laws regarding the environment. They are
associated with CafePod because they are already organically harvested and farmed.
Strengths – Pestle analysis helps to understand the external market of the company and offers
opportunities to grow in the market.
Opportunities – Analysis allows CafePod to analyse new technologies and latest market trends
to grow in the market.
Porters five force analysis
Bargaining power of buyer - As there are diverse enterprise that provide uncanny
merchandise as CafePod espresso co. So, the bargaining strength of the client is high.
Bargaining power of seller- As employer is shopping for uncooked substances from
different reasserts and is supplying natural merchandise to the clients this offers benefits to the
employer to good buy with the dealer. But there are numerous different massive mounted
manufacturers withinside the marketplace with the dealer is dealing. Hence, the bargaining
strength of the dealer is moderate.
Threat of substitute- There are numerous different massive manufacturers who presents
similar merchandise withinside the marketplace and they're properly mounted withinside the
marketplace. Hence, the hazard of alternative strength is high.
Threats of new entrants- As it isn't always tough to go into beverage enterprise as does
now no longer require any most important capital, however the employer widely known
withinside the marketplace so, this could now no longer have an effect on the employer. Hence
the threats of recent entrants are moderate (Fox, 2018).
Exiting competitors- There are massive beverage employer who has a sturdy
establishment withinside the marketplace, which offers present opposition high.
Strength- This evaluation will assist in figuring out the competition and marketplace with the
intention to make in addition techniques.
Opportunity- With this evaluation CafePod Coffee co can deliver new innovation and techniques
withinside the marketplace.
VRIO analysis
Value- The CafePod's most valuable assets are its unique flavours, taste, and authentic
coffee. The café's environment and atmosphere are valuable to the brand.
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Rare- The source of information is scarce for such brand, which results in high-quality
and delighted products. The company's product quality, taste, and flavours are exceptional.
Imitable- Flavours, taste, and quality can all be imitated. The setting and atmosphere are
unmistakable.
Organised- CafePod has a well-organized authentic taste, flavours, and process. The
organisation has also well organised the environment and surroundings.
Strength- Based on this analysis, the CafePod can recognize various analysis and make decision
making to develop innovative ideas (Guerriero and Hopkins, 2018).
Opportunity- As a result of this analysis, the company has risen to the top of the market.
SWOT analysis
Strength- The company's brand image is its strength. Their appropriate formula is their
strength, which allows them to attract loyal customers.
Weakness- In attempt to deliver its products, the company has a limited market share.
The market is highly competitive.
Opportunity- There are numerous new opportunities for CafePod to seize, such as new
technology to help it grow and run smoothly.
Threat- Competitors such as Starbucks, Dark Arts Coffee, and Marshfield Bakery pose
significant threats.
Strength- Using this analysis, the company can determine its strengths and weaknesses in order
to make better choices for market growth.
Opportunity- Using this analysis, CafePod can recognise several operational opportunities. This
allows the company to identify its long-term vision.
Porter generic framework
Cost leadership theory- It states that a company can decide to cut various manufacturing
costs. It will assist CafePod in lowering its prices in order to gain a competitive advantage over
its competitors.
Differentiation theory- In order to meet their needs, the CafePod company may need to
focus on expanding their target market. As a result, the company will be able to establish itself in
the market.
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Cost focus theory- In this theory, the industry will be able to focus on a specific niche
market while also satisfying the requirements and expectations of the consumers. This will assist
the CafePod grow by attention on a particular market.
Differentiation focus theory- This strategy enables an organization to focus on its
customers' preferences and needs. This enables CafePod to focus on a niche market in order to
offer a growth opportunity.
Strength- This analysis offers a cost-effective strategy for cost reduction.
Opportunity- It identifies market trends, customers, and various opportunities for market growth.
Ansoff matrix
Market penetration- It refers to a company's ability to offer its products and services in
an existing market. This will enable the company to gain more customers.
Advantages- Through market development, CafePod will be able to increase its sales and profits.
Disadvantages- If the plan fails to produce the desired results, the company may lose loyal and
old customers.
Market development- This strategy suggests that the company develop and establish itself
in a new market. CafePod can successfully establish its business outside of the United Kingdom.
Advantages- The strategies allow for growth in various markets and provide multiple benefits in
terms of foreign investment (Hansmann, 2018).
Disadvantages- There are numerous risks associated with this strategy, and it is a time-
consuming and costly process.
Product development- This strategy suggests that the company offer new products and
services in the current market. In order to grow in the market, the company can improve the
flavours and quality of its goods.
Advantages- It will provide CafePod with numerous opportunities to develop new products and
expand its operations.
Disadvantage- The company's biggest disadvantage is that it will prevent competition and will
solely concentrate on the strategy.
Diversification- This strategy suggests that the company develop new products in
untapped markets. However, there is a higher risk factor involved in the company's new products
in order to develop themselves in the market.
Advantages- It offers a variety of advantages in order to boost market growth.
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Disadvantages- This strategy involves several risks for the organisation.
Understanding of competitive advantages.
In relation to the development of the market by CafePod coffee Co. The company can
strengthen its market position by implementing several of the aforementioned strategies, such as
product development. As it will aid in the development of a new brand image in the marketplace
and the attraction of more customers.
TASK 2
Financial sources.
Bank loans and overdrafts- This is a versatile funding option with immediate access. Small
bank loans are not collateralized, but when a firm increases large sums of money, it must publish
some form of securities. Then pay the bank interest.
Advantages:
• The main advantage is that it is simple to set up, and the owner must pay a certain amount
of interest.
• The main advantage is that it is simple to set up, and the owner must pay a certain amount
of interest.
Disadvantages:
• If the owner exceeds the overdraft limit, the bank will charge a fee, and the company
must meet the repayment deadline.
• If the owner surpasses the credit limits, the bank will charge a fee, as well as the business
must meet the repayment deadline (Ikrama, 2019).
Savings and friends- It is the most reliable resources. They provide low interest rates. However,
relatives and friends should be made aware that the investment could result in losses. As a result,
there is mutual trust to assist one another, which is financially motivated.
As a result, there is mutual trust to assist one another, which is financially motivated.
Advantages:
• The company has the benefit of paying little or no interest.
• For success, the company should seek suitable advice and assistance from friends and
relatives.
Disadvantages:
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• The company could lose money or go bankrupt.
• Family members may have disagreements (Yu, 2019).
Retained earnings- It is related to the cash flow of the company. This is the net sales income
after all dividends have been distributed to shareholders. They can borrow quickly and easily
without paying interest.
Advantages:
• The best thing about this resource is that it helps to create business stability as well as
financial stability.
• Starting a business is simple because there are no unnecessary procedures.
• It is a simple, convenient, and interest-free source.
Disadvantages:
• The disadvantage is that shareholders may not value the option because they prefer a
higher return to reinvesting their money.
• Due to future uncertainty, the company may be unable to use this fund.
The company must obtain a large sum of money through bank funding sources. Bakeries
are also independent to use their internal reserves and are not required to pay interest.
Evaluation of financial source.
This allows the business to recognise different sources of financial through which CafePod
coffee co can develop innovative strategies and strengthen its market position. It is clear from the
options listed above that the company has several options. A company can obtain funding from a
variety of sources. Retention, savings, or friendship. CafePod Coffee Co has the potential to
generate a source of retained earnings for the company. It enables businesses to maintain smooth
business functions and operations while expanding into new markets (Toles Jr, 2020).
TASK 3
Business plan.
Business name- CafePod Coffee Co is the chosen company for the business plan.
Summary- It is the private organisation that usually deals in coffee pods, capsules and coffee.
Background of the company- The organisation was founded in 2011.
Vision- The main vision of the organisation is offering a premium quality of coffee-to-
coffee lovers.
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Mission- The aim mission of the enterprise is the offer coffee to each coffee lover at their
home.
Objective- The objective of the organisation is to build a strong brand image and
reputation in the marketplace.
Product range- The product range of the CafePod Coffee Co are their premium range coffee
products and Coffee pods.
Stakeholders- Governments, investors, shareholders, and suppliers are examples of stakeholders
who invest in businesses. These stakeholders are critical to the organisation and will have an
impact on the business, either directly or indirectly (Kjellander, 2018). Employees, suppliers, and
managers are CafePod internals who can contribute to the company's success. They develop
strategies and plans to implement systematic workflows throughout the organisation. External
stakeholders such as shareholders, governments, and investors must be financially stable in order
to invest more in innovation, diverse product lines, and meeting their objectives.
Capital- CafePod will require approximately £20,000 in capital to establish a business in Spain.
This company may require funding, which CafePod can obtain through bank loans. Because of
its meaningful goal and market recognition, the company should be able to provide loans to
banks without difficulty. Constant deposits or financial institution loans are examples of short-
term investments. These budgets will most likely be closed for one year. Long-term budget
reassessments include retained income and foreign direct investment. As a result, the bakery
desires to acquire every supply in order to achieve long-term commercial enterprise growth.
Target- The company's turnover in the first fiscal year should be approximately £70k, and
revenue that year should be approximately £40k (Toke and Kalpande, 2021).
Operational plan- As it establishes itself in a new market, the company can develop the
organisational function within the business. The company may need to hire 30 employees in the
beginning and must make a decision and form a committee to discuss future strategies.
Resources- The company should concentrate on developing a variety of operational resources. In
order to attract customers, the company also requires high-quality, organic raw materials.
Infrastructure, ingredients, packaging material, and monetary funds are all required by the
organisation.
Technology- CafePod Coffee Co's objective is to contribute to the supply of sustainable food by
utilising modern technology. Technologies like technological resources, SEO, cloud computing.
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These will aid in attracting large customers and understanding their needs and desires. Digital
marketing and SEO are required to raise customer awareness of green brands through online
promotion and digital portfolios (Sharma and Tewari, 2021).
Risk factor- Employees must follow safety and hygiene regulations, according to the UK
government. Organic coffee beans should be used. If the company's labelling and information are
incorrect, it may be reported under the Food and Safety Act. There is also the risk of food waste,
which, if not properly disposed of, devastates the environment. Café and other employees must
be instructed in a set of guidelines and practical lessons; failure to do so may lead to a serious
fire hazard. As a result, the bakery should be insured in this particular circumstance so that it
would not go out of business.
Marketing plan-
• The target market is Spain, Europe, and the company is working to reach them through
discounts in the beginning, so the value for feat clients is low.
• Advertising and online platforms must be used to promote the selling set. As the
company launches its search and products in a new market, it must collect customer
feedback through social media platforms such as websites, Facebook, Instagram, and
Twitter.
• Through a social media strategy, the CafePod café hopes to increase sales by 10%. To
attract customers, they plan to sell free samples of organic bars and candies.
Timeline- In order to achieve the target, set by the organisation within 1year period of time
duration.
Gantt chart-
It is a chart that displays a horizontal line series that describes the amount of work done
as well as goods produced in a particular period of time in direct comparison to the amount that
was take some actions for the specific period (Šebestová, 2021).
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SWOT-
Strength-
• Company do better when they enter a new market since the company develops a new
taste relative to the competition.
• They hire highly skilled workers.
• They successfully develop new items.
Weakness-
• There is little funding for research and development.
• The inability to fully implement businesses into various working cultures.
• They are unsuccessful aside from them deserve the best.
• They are not able to start competing in stealing market share from competitors.
Opportunity-
• It can enter new markets with the government's permission.
• It can expand into new markets with the government's permission (Park and LaFrombois,
2019).
• In comparison to competitors, marketing strategy will enhance the company's effort.
Threat-
• There is fierce competition in this market because the major corporations have already
seized control, giving providers more authority and affecting them to influence it.
• Because the company only functions in one country, competition is fierce within that
country.
Evaluation of business plan for organisation.
According to research, finding an effective and productive business plan is critical for the
company's growth. Recognizing about the tactics that can be used in business expansion is
advantageous to business owners. It can evaluate the success of a business by considering
different factors associated and time frames. In the case of CafePod Coffee Co., the company
may develop a successful business plan by considering a variety of concepts and elements,
allowing the company to meet its growth objectives.
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TASK 4
Exit plan
When a company's ownership changes, the owner retires, or the company goes bankrupt, it
needs an exit strategy. A few things that businesspeople should really be aware of are as follows:
• The timetable for the company's operations.
• Assumed financial expectations and situations at the beginning of the project.
• Before closing or eliminating the business, the company's remaining debt, including such
creditors and investors must be completely paid.
Small scale business exit strategies for business owners are also discussed-
Liquidation- The process of ending a business and trying to sell its investments or
repaying debt holders and other liabilities so that it is no longer responsible in the market.
Benefits-
• The primary advantage of this strategy is that the business is not subject to lawsuits.
• The Managing Director's debts and creditors will be discharged.
Drawbacks-
• The disadvantage is that all current cash are sold with the purpose of paying dividend
payments to creditors and collecting fees from inventors whenever the opportunity arises.
• Shareholders may be ordered to pay personal outsiders' debts.
Asset Closure and Sale- This method of exiting the business involves selling the assets
as soon as possible. If the customer relationship fails, the firm will be obligated to its
stockholders and other lenders to profit from asset sales. Ensure that business assets are sold on
time.
Benefits-
• The main claimable benefit is that the owner can pursue other projects and pay off
individual debts (Linnik and et. al., 2020).
• The company can easily pay off its liabilities by selling its assets.
Drawbacks-
• The disadvantage is that it may be a lengthy process that entails numerous legal fees.
• To sell the property, a new licence must be obtained or transferred.
Liquidating the business over time- This is an easy option to select when the company's
finances are in disarray and there will be forced to close their r doors. A lifestyle business is
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another term for it. Entrepreneurs take money out of their businesses, but they reinvest it for the
future. The business, on the other hand, provides cash flow for a balanced lifestyle. On the
downside, investors may become dissatisfied with the company for no apparent reason.
Benefits-
• The main advantage it provides is that all creditor disputes are terminated when the
company is declared bankrupt.
Drawbacks-
• the organisation does not have the right to do business with or use similar trade names for
other companies that may be formed in the future.
Sell their existing business to known- Partner, customer, acquaintance, family, relative,
manager, or employee. In the sense that the previous owner can provide assistance and guidance
to the buyer. When disagreements between relatives arise, it can be disastrous. Even after leaving
the company, the owner can continue to participate in the project. The next business owner may
not set a price that is significantly lower than the previous one, but may sell at a discount.
Benefits:
• The buyer understands the business systems and processes, ensuring business continuity.
Drawback:
• The successor may require important coaching and mentoring from the original party.
Sell the business in the open market- Starting a new company is the least risky option if
the business is sold to an unknown person in the market. Sellers may be unfamiliar with existing
systems, customers, strategies, policies, and so on, so selling in the marketplace allows them to
make more money. profit from It has monetary value if the company's financials are appealing.
Buyers benefit from brand development and customer relationships as well. Selling their
company at a reasonable price can take time.
Benefits:
• Buyers benefit from a well-established company whose products and services have
already been tested.
Drawbacks:
• This can create a negative image in the minds of their customers.
Sell to another company- A smaller company may be acquired by a competitor or
another company in the same industry in this case. This can be a wise investment because it can
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help the buyer's business grow while also reducing competition. This acquisition is aided by a
sense of responsibility. It doesn't take long to become acquainted with the company's work
culture and dynamics. Given that the company's sale price will be higher. However, the
employees of the company were unable to accept the change (Mazzarol and Reboud, 2020).
Benefits:
• The owner will save time and may be capable of investing in the next project or venture.
Drawbacks:
• The owner might very well lose control of their company's activities and operations.
Evaluation of exist plan
As a result of the foregoing, CafePod Coffee Co is not able to expand its operations and is
forced to decide between closing the business and trying to take over rather than incurring losses.
Aside from the coffee shop, researchers recommend selling their company to another company.
This is because transmitting responsibility to another individual is more financially beneficial
and helps to reduce market competition. It is advantageous to run a business effectively because
a company cannot deal with difficulties and environmental changes (McKenzie, 2021).
CONCLUSION
To conclude the above growth plan report, a brief summary and analysis should be provided.
The first is CafePod Coffee Co., a small to medium-sized company based in the United
Kingdom. The report then identifies the key concerns of the businesses being evaluated in order
to determine opportunities for growth within the company's context. The organisation has
undergone Pestle Analysis, Porter's Five Forces Model, and Ansoff's Growth Vector Matrix ID.
Following that, the report discusses potential funding sources, as well as the benefits and
drawbacks of each funding source. The next step is to develop a growth strategy for the
company. This includes financial data as well as strategic objectives for the organization's
growth. Finally, the report finds with an examination of the various approaches taken by small
business owners can go bankrupt and the impact it causes.
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