SME Growth & Succession: Business Plan for CafePod Coffee (UK)

This report explores growth planning for CafePod Coffee, a UK-based SME. It analyzes key considerations for evaluating growth opportunities, applying the Ansoff matrix to assess market penetration, product development, market development, and diversification. The report also explains potential funding sources for businesses, highlighting the benefits and drawbacks of each, including banks, venture capital, and crowdfunding. Furthermore, it assesses exit and succession strategies for SMEs, explaining the advantages and disadvantages of direct succession. A detailed business plan is constructed, outlining the company's objectives, marketing activities, and financial projections. The report concludes with justifications for the chosen strategies and recommendations for CafePod Coffee's future growth, emphasizing the importance of customer satisfaction and continuous monitoring of market relations.

PLANNING FOR GROWTH

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analyzing key consideration for evaluating growth opportunities in an organizational context:
......................................................................................................................................................3
Evaluating the opportunities for growth by applying Ansoff matrix:..........................................4
Explaining the potential sources of funding available to businesses along with benefits and
drawbacks of each source............................................................................................................6
Assessing exit and succession for SME's explaining benefits and drawbacks of each:..............7
Business plan:..............................................................................................................................8
Justifications:.............................................................................................................................10
Recommendations:.....................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning for growth can be seen as a necessity for all the business operating firms and
has to be carried out efficiently in order to achieve the overall organizational planning. This
particular report will focus on the business growth opportunities available for the business so that
it can avail a proper growth strategies and crucial points in favour of developing an effective
productivity rates. The report is about a UK SME, CafePod Coffee, that produces coffee in
various ranges for coffee lovers on a small scale. It will be analysed as to which are the best
growth opportunities options that the firm should consider to enhance their success rates in the
global environment. Further, it will also be determined and evaluated that how the firm manages
to operate in the competitive market and how it can impact the overall operational activities of
the firm. Along with this there are numerous sources of funding available to the business that can
help the firm in organizing activities financially. Also, a detailed business plan will also be
constructed that will highlight the reason behind the existence of firm and its marketing
activities. At last, the exit and succession options will be mentioned that will appraise its benefits
and drawbacks of each.
MAIN BODY
Analyzing key consideration for evaluating growth opportunities in an organizational context:
There are many areas where a firm can take its business activities in order to achieve
maximum growth potential by optimizing its valuable resources. This needs proper identification
of innovative and digital activities that can improvise the ability to approve what the firm needs
the most at a particular point of time (Olmos. and et.al., 2020). These can be further evaluated
when it is fore mostly decided and reflected upon the lacking and growth areas. When all the
standards and deviations are identified then it is the time to come up with creative and unified
ideas that can drive more sales to the business environment in light of its competitors. All these
activities have to be properly monitored and taken care of by proposing various available KPI's
that will help in the utilization of developmental ideas and creations.
Talking specifically about the SME's, it can be evaluated that these should pay more and
close attention to the available resources with them that will not be reliable on anyone else. In
order to expand the creations and establishment, these should always focus on their customers'
preferences, tastes, as well as the recent trends that are ongoing in the global environment. The
benefit to the firm will be in the form of assessing how much was their monthly earnings and

how can they further impact such activities with their overall operational production. It should
also be kept in mind that adequate amount of resources are necessary to be employed in
necessary activities that will mainly have its impact on the customer, their lifestyle, etc. The key
consideration for the start ups is the capital and investment sources through which they can
measure their rate of returns in accordance with the requirements of the business. Moreover, to
expand the service sector of the firm in the global market, it is essential for the firm to focus and
reflect on its own strengths and opportunities it can seize in order to offer its potentiality to the
targeted audience (Jensen. and Creinin. 2020). To measure all these activities for the evaluation
of growth opportunities, it is advisable for the SME's to continuously form a tight schedule
defining its activities and the process they are going to undertake. From this evaluation, they can
avail a chance to study their market relations and act accordingly with the competitors prevailing
in the market. Also these should be ensured with proper monitoring and controlling activities to
measure the growth opportunities.
Justification
The above mentioned growth strategies can be beneficial for the firm to further interact
with the global position it can get when elaborating its overall expansion for its customers. The
main point of consideration is always the satisfaction of customers when it comes to achieve
the desired growth rates (Luthra. and Mangla. 2018). If the growth rates are not achieved as per
the plans and the firm is not experiencing the required success rates then it is clearly identified
that the firm did not carry out its activities as per the process prescribed.
Evaluating the opportunities for growth by applying Ansoff matrix:
1. Market penetration:
If the firm wants to expand its growth rates with the least risky strategy, then this is the
best option available to the firm (Alos-Simo. Verdu-Jover. and Gomez-Gras. 2020). For SME's it
is highly recommendable to opt for such areas where there are options for them to succeed before
they encounter any uncertainty. With such a strategy, where everything is in the hands of the
firm, it will be beneficial to adapt to the environment effectively.
2. Product development:
The main task of the strategy is to determine and expand its product portfolio by
introducing new products in the market to expand the product appreciation. That is why it is also
known as product expansion due to its expanding and expansion feature. In this process, either

a new product is launched or the existing products are modified with the available resources and
technology. Uniqueness is the key feature of this strategy.
3. Market development:
Market expansion or market development is the strategy of expanding the overall
producing and selling activities in a new and improvised global market. There is no restrictions
of boundaries between the nations as there is a based targeted customer market that focuses on
increasing of market share and sales in that particular market. It is beneficial because the new
market is able to experience new products and services (ANSOFF MATRIX. 2022).
4. Diversification:
Everything is new in this type of strategy as it involves new markets along with the new
collection of products and services. As everything is new and diversified in this strategy, it is
therefore considered to be a riskier option as compared to the others. There are two situations in
this strategic option, one is the firm can experience great profitable rates, and the other one is the
whole opposite that is concerned with losses incurred.
The chosen organization is an SME, that is why it is better for them to opt market
penetration and product development strategies that can help them in acquiring the required
growth opportunities and success rates (Patrick. Chike. and Phina. 2022). It is because the firm is
operating in a small business line and has to enhance more in order to enter into the global
market. Therefore, it is advisable for them to initiate their operating activities by taking smaller
steps to diversify their overall operational activities.
Explaining the potential sources of funding available to businesses along with benefits and
drawbacks of each source.
In order to become successful it is important for the company to pay attention on
developing effectual form of the courses in turn good pattern of growth can be developed. There
are distinct types of the sources of funds which can be used by firm in order to have reliable
ability to meet the organizational objectives accomplishing can become possible. On the basis of
this it can be articulated that firm requires focusing on developing such relevant selection of
sources of finance in turn deriving competitive edge can be derived.
Banks
There are distinct types of the sources of finance which helps in gaining the effective
level of availability of funds of that conducting of the operational activities in effectual manner

can become possible. It is related with gaining the competitive edge by achieving the aspects of
like effective working capital loans, etc. the firm needs to meet the eligibility criteria so that
meeting the reliable level of performance can become possible.
Advantages Disadvantages
It ensures the flexibility of the organization
and does not interfere in the operational
functioning of the company.
This requires focusing on providing the
collateral in turn emphasis on achieving the
credibility can become possible.
This pay attention on maintaining the control
so that reliable level of actions to get effective
processing.
It requires the profitability in return of the
using the bank loan as firm require to pay the
interest to particular institution.
Venture capital
This is one of the reliable option with help of which firm can get the effective sources of
the funds in turn deriving the effectual processing can become possible. In this venture capitalist
firm invest in emerging companies in exchange for equity or an ownership stake. This can offer
the following benefits and drawbacks which are as follows:
Benefits Drawbacks
Higher level of the capital can be raised to
derive ability to increase the firm's
performance.
Leverage in negotiation is found to be lower
which decreases the power of the owner.
Networking opportunities provides the ability
to reduce the risks and incline efficiency in
order to get the reliable level of processing so
that competitiveness in overall organization
can be met.
The overall cost of the financing is higher
which is required to be focused for the purpose
of having effective performance.
Crowdfunding
This is one of the reliable option that can be taken into the consideration so that effectual
growth & development can be derived. It is related with having the pool of funds in turn deriving
the proper performance by achieving various advantages can become possible.

Merits Demerits
It helps in having incensed level of revenue
& profitability by rewarding the flexibility
(The Pros of Business Crowdfunding, 2022).
There is higher level of preparation which
gives higher cost can be incurred.
It gives higher level of exposure and helps in
identifying the reliable opportunities.
There is higher level of risk which can create
the greater positive impact can not be derived.
Assessing exit and succession for SME's explaining benefits and drawbacks of each:
The exit and succession plan for a business is important for all the firm irrespective of the
size and structure of the firm (Korang. Golly. and Osman. 2021). This is important for any
business to maintain the continuity of the activities of the business even after encountering an
uncertainty. This means that as life is uncertain, it is not sure as to how the future experiences
can affect the overall business growth opportunities as well as the success rates. Therefore, to
identify the right position for the right person it is important to find out and determine the
development goals and the insights for carrying out essential decisions. There are various options
for SMEs to opt for while recognizing the need to select one such suitable methods.
1. Direct succession:
Direct succession as the name suggests, means appointing a direct successor of a business
after the real owner leaves or any other thing happens (Hossain. Siddique. and Al Jamil. 2018).
The new successor appointed needs to position himself in that job particularly to carry out all the
differentiated activities that can demand successful operational production growth. The
development and leadership plans should be accordingly formed in order to leave the firm with
growth opportunities.
Advantages:
a. Boosts morale of the next successor and therefore helps in the evaluation of growth rates and
productivity.
b. The identification of assigned tasks and dutiful responsibilities take place as the employees
contribute towards long term goals.
Disadvantages:

a. The biggest disadvantage of succession is that it is difficult to scale its activities across people
in order to evaluate the critical positions.
b. The planning of who to select next is the critical task to follow as everything next depends on
how the successor carries it out in the wave of competition.
2. Merger and acquisition:
The process of Merger and Acquisition allows the SMEs o operate effectively in the
global market with the help of its way of carrying out activities in the course of action. They tend
to operate in the competitive market in alliance with various growth opportunities to gain the
desired objectives of the business. This feature helps in surviving in the long run and to attain a
specific success rate.
Advantages:
a. There is a scope of flourishing in the global market as it allows them raise and sale up their
economies of the nation through their activities (Amirul. Baharum. and Shali. 2018).
b. Cost effectiveness can be acquired through such activities by providing alternatives when
there is a need of dissolving the firm or exiting the market.
Disadvantages:
a. There can be a sense of conflict in the nature and behaviour of the people as they can feel left
out from the overall organisational activities.
b. With this, employees can be distressed by the partiality that might be carried out against
someone, resulting in inefficiency of the firm.
Business plan:
1. Mission and vision:
The mission and idea behind the chosen organization is to provide its customers with
variety of choices that defines different type of palates of coffee variants and related eateries.
The purpose is to set up a roof under which the customers will be able to enjoy the roasting and
brewing fragrance of coffee along with the ambience.
2. Objectives:
The objectives of a business is to earn profit rates through satisfying the customers with a
friendly atmosphere that will tempt them with various opportunities to visit the premises again.
For the coffee shop and chosen organization, the main objective is to maintain the expected
quality of coffee variants along with the catering services.

3. Stakeholders:
The stakeholders of chosen business can be in accordance with the business environment
it operates in. For the coffee shop, they can be employees, who can be the reason behind the
profitability of the firm. Others can be customers, suppliers, investors, etc. if the firm does not
have its own investments. Government also plays a great role in carrying out its activities in
order to protect public interest.
4. Capital funding:
There are various options available to the SMEs that they can optimise in their funding
sources. These need to know which are the potential options for them which can ensure them
with a significant investing groups such as working capital loan, term loan, crowdfunding,
etc. All these investing options can help them ion elaborating their growing demands of adopting
high profitability rates.
5. Technology plans:
In accordance with the operational activities of the firm, the coffee shop will opt for all
those technical and innovational plans that will analyse how all the machineries and equipment
will be utilised. Different methods are being optimised in order to upgrade the technical
resources by optimising the financial ability that can evaluate the success rates. This will even
decrease the operational costs incurred on transforming and repairing the existing ones.
6. Resources plan:
Small scale enterprises are required to define the resources that are being optimised by
them in order to particularly satisfying the customers (Sawyer. and et.al., 2020). Therefore, it is
important to highlight various factors that can be of valuable nature and can help them in the
achievement of their business objectives. The details about how the resources will be used, when
these will be used, etc. is mentioned in the plan that will ensure sustainability of financial ability.
7. Risk factor:
The risk factors are usually less as compared to other industries that might not be in their
most of the activities. Even if it encounters some of the risk factors, these might be related to
financial, reputational, operational, human resources, strategic, supply chain, etc. These
enable the firm to operate in a condition that can help them to learn how to satisfy the customers
by attaining the desired profitability rates.
8. Marketing plans:

The marketing activities of the firm has to be in a way that can effectively attract the
customers within the range of its financial ability (Giampiccoli. 2020). These usually include
Marketing mix and extended marketing mix if the operations are within the servicing sector
and needs more activities that can evaluate success rates. Normal marketing mix will be opted by
the SMEs, i.e. Product, place, price and promotion techniques that will identify the physical
evidence of the firm's business activities and that more customers can connect with them through
unique and creative activities.
Justifications:
With such type of growth options available to the firm, it becomes beneficial for them to
identify, determine and evaluate which all options can be profitable for them to opt for. It is
highly recommendable to the SMEs to initiate their activities with the least risky options that
collaborate with the services they provide (Kassirer. and et.al., 2019). For that it is very
important to plan for growth in order to have a schedule set in mind that can provide them with
the opportunities to grab on. There are many different strategies that can provide them with
opportunities to enhance the growth rates in order to minimize risk and maximize risk
management in the overall operational activities. These factors allow SME's to customize their
business plan with a view to invest in the planning process that can evaluate their ability to
achieve goals and rely on external and internal management. Moreover, SME's will be able to
plan, manage and activate their operational activities in relation to its competitors and
competitive advantage.
Recommendations:
There are many risk factors attached to the planning procedures that can negatively
impact the overall business goals and related activities. Many points of considerations can be
utilised in order to balance all the activities for improving sales and loyalty in the market. This
factor can allow the companies to acquire their desired market share and can be more than that.
However, it is also essential for the company to manage and handle the available resources that
can help them in the transformation of the activities (Bagheri. and et.al., 2018). Not only
planning is sufficient, but implementing planned activities into core actions can result in the
profitable actions and returning results that can ensure promising progress in the overall business
activities. The above applied growth theories and models can definitely ensure the firm in

achieving success rates, but only when these can be properly attained in the business
environment.
CONCLUSION
The report about planning for growth has now come to an end with the evaluation of
various theories and models about how a company grow in the competitive business environment
effectively. As it has already been mentioned in the above report that it is every important to plan
beforehand about how all the business activities can be carried out in order to achieve the overall
business goals and objectives that can avail different growth objectives and opportunities. A
clear description of expansion and expanding growth opportunities has been given, being
specific about the SMEs as to how they can efficiently determine their own financial goals that
can be utilised by them to invest in their own path of achieving goals. Also, a detailed business
plan has been constructed that highlights the competitive business environment that can help in
the identification of best options for growth as it has been mentioned that which all opportunities
and threats can be identified in carrying out overall business activities. All such procedures and
methods of achieving growth structures is only possible when it will be done through an
effective team members who will contribute towards meeting the growth and success
requirements.

REFERENCES
Books and Journals
Alos-Simo, L., Verdu-Jover, A.J. and Gomez-Gras, J.M., 2020. Knowledge transfer in
sustainable contexts: A comparative analysis of periods of financial recession and
expansion. Sustainability, 12(12), p.4916.
Amirul, S. M., Baharum, A. and Shali, I., 2018. Utilization of Electronic Business Plan for Small
and Medium Enterprises (SMEs). Advanced Science Letters, 24(2), pp.1432-1436.
Bag, S., and et.al., 2020. Big data analytics as an operational excellence approach to enhance
sustainable supply chain performance. Resources, Conservation and Recycling, 153,
p.104559.
Bagheri, M., and et.al., 2018. Green growth planning: a multi-factor energy input-output analysis
of the Canadian economy. Energy Economics, 74, pp.708-720.
Giampiccoli, A., 2020. A conceptual justification and a strategy to advance community-based
tourism development. European Journal of Tourism Research, 25, pp.2503-2503.
Hossain, A., Siddique, M. Z. R. and Al Jamil, M. A., 2018. Factors affecting women
involvement as entrepreneur in SMEs sector, economic development and its impact on
poverty reduction in Bangladesh. Business, Management and Economics Research, 4(5),
pp.51-65.
Jensen, J. T. and Creinin, M. D., 2020. Family planning, population growth, and the
environment. Contraception, 101(3), pp.145-147.
Kassirer, J., and et.al., 2019. Social marketing comes of age: A brief history of the community of
practice, profession, and related associations, with recommendations for future
growth. Social Marketing Quarterly, 25(3), pp.209-225.
Korang, V., Golly, M. K. and Osman, O. M., 2021. Evaluating the Influence of Succession
Planning on the Growth of Small and Medium Enterprises (SMEs) in Ahafo, Bono and
Bono East Regions of Ghana. Open Journal of Business and Management, 9(6), pp.3076-
3091.
Luthra, S. and Mangla, S. K., 2018. Evaluating challenges to Industry 4.0 initiatives for supply
chain sustainability in emerging economies. Process Safety and Environmental
Protection, 117, pp.168-179.
Olmos, L. E., and et.al., 2020. A data science framework for planning the growth of bicycle
infrastructures. Transportation research part C: emerging technologies, 115, p.102640.
Patrick, O.A., Chike, N.K. and Phina, O.N., 2022. Succession Planning and Competitive
Advantage of Family-Owned Businesses in Anambra State. Cross Current Int J Econ
Manag Media Stud, 4(3), pp.28-33.
Saad, G. B. and Abbas, M., 2018. The impact of organizational culture on job performance: a
study of Saudi Arabian public sector work culture. Problems and Perspectives in
Management, (16, Iss. 3), pp.207-218.
Sawyer, A. G., and et.al., 2020. Developing teachers as critical curators: Investigating
elementary preservice teachers’ inspirations for lesson planning. Journal of Teacher
Education, 71(5), pp.518-536.

Online
The Pros of Business Crowdfunding. 2022. 2022. [Online]. Available through:
<https://fitsmallbusiness.com/pros-cons-business-crowdfunding/>
ANSOFF MATRIX. 2022. [Online]. Available through:
<https://embapro.com/frontpage/ansoffanalysis/11840-associations-cafe>