CafePod Coffee Co: Growth Strategies, Funding Options, & Exit Planning

This report provides a comprehensive analysis of growth planning for CafePod Coffee Co., a UK-based coffee company. It examines growth opportunities using frameworks like the Boston Consulting Group (BCG) matrix and the GE-McKinsey matrix, along with Ansoff's growth vector matrix, to identify potential strategies. The report also explores various funding sources available to businesses, discussing the benefits and drawbacks of each, and designs a business plan incorporating financial information and strategic objectives for scaling up the business. Furthermore, it analyzes exit and succession options for small organizations, evaluating the advantages and disadvantages of each to provide recommendations for CafePod Coffee Co.

Unit-42
Planning For Growth

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
TASK 1............................................................................................................................................1
Analysation of the basic concentrations to evaluate for the growth opportunities along with the
justification for these consideration within an organisation........................................................1
Boston Consultancy Group Matrix-.................................................................................................2
Evaluation of the growth opportunities by applying Ansoff's growth vector matrix..................4
Discussion on the options for growth by using a range of analytical frameworks for
demonstrating the understanding of competitive advantage within an organisation...................5
TASK 2............................................................................................................................................5
Analysation for the potential sources of funding that are available for the businesses as well as
discussion for the benefits and drawbacks of each source...........................................................5
Evaluation for the potential sources of funding along with the justification for the adoption of
an appropriate fund sources for a given organisation..................................................................9
PART 2............................................................................................................................................9
TASK 3............................................................................................................................................9
Designing a business plan for the growth which includes financial information along with the
strategic objectives for scaling up a business..............................................................................9
Evaluation for the potential sources related to funding along with the adoption of an
appropriate source of funding for a given organisation.............................................................12
TASK 4..........................................................................................................................................12
Analysation of exist or succession options for a small organisation that explain the drawbacks
and benefits of each options.......................................................................................................12
Evaluation on exist or succession options for a small organisation to contrast and compare
options as well as make valid recommendation for it................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Planning for growth is important for every organisation as it makes their management to
assess their organisational performance along with this identify their opportunities which helps in
expanding their business in better manner. It assist them in setting their targets and goals related
to their business as it also provides a clear and broad strategies and tactics which helps in
achieving their organisational goals and targets (Amri and Giyarsih, 2021). Planning help
companies to identify and evaluate growing and large market which helps them to increase their
revenue in effective way. In the following report, the selected small enterprise of UK is CafePod
Coffee Co. which is an private coffee company of UK which provides coffee to their potential
customers in various variety which includes intense, smooth, ristretto, origins colombia hulia and
so on. The company was founded on 2011 and its headquarters is in Portsmouth, GB. The report
covers the identification of the basic consideration which may be considered by SMEs for the
evaluation for their growth opportunities. It further covers different kinds of methods which
helps company to access funds as well as when to be used these different sources of funding. It
also cover a business plan as well as describes how a company intend in scaling up their
business. In addition to this, it also covers various methods which helps owner of small
enterprise to exist the business as well as implication of each options.
PART 1
TASK 1
Analysation of the basic concentrations to evaluate for the growth opportunities along with the
justification for these consideration within an organisation
The primary goals of every organisation is to increase the growth of their business in the
market in order to make their survival for longer run. This makes essential for the owners of an
organisation to analyse their market in order to found growth opportunities which helps in
increasing the growth of their business in effective manner. Boston Consultancy Group matrix
and GE-McKinsey Matrix are two important frameworks which helps company to analyse their
growth opportunities in order to increase their growth in the market in better manner (Balducci,
2018). In aspect of CafePod Coffee Co., the analysation of their growth opportunities with the
help of Boston Consultancy Group Matrix as well as GE-McKinsey Matrix are described below:

Boston Consultancy Group Matrix-
It is referred to a process in which the company uses diagrammatic representation for the
products and services which assists the organisation regarding what to sell, invest and keep. The
internal management use it for company to assists the present value of the product and lines
units. This matrix has four distinctive classification such as dog or pets, cash cows, question
mark and stars. All these category are very dissimilar and unique in there own. In the context of
Cafe Pod Coffee Co all the matrix is discussed below:
Dogs or Pets: In this factor it briefs us about the organisation products share in the
market as it has low share in the economy due to this it will have the declining growth rate which
will make the company go sold of and liquidated (Chigudu and Chavunduka, 2021). However it
tells us that the product has the capacity to generate significant amount of money because of low
demand and growth. In the regards to Cafe Pod Coffee Co their dogs or pet services is brunch
blend which turns out to be cash dupe and their funds for a long period of time.
Cash Cows: In this it tells us about the organisation product which has low growth but
there is a huge market share due to this reason the company milt cash cows for the longer time.
Moreover these products has the higher returns than the market development and keeping up in
the cash flowing position. The decaf espresso service makes the skyrocketed margin of profit as
much as possible in the terms of Cafe Pod Coffee Co.

Stars: It is explained in a way where the market and growth are their for the products and
organisation invest very effectively as well as constructively. However it gives the profit but it
also takes away the huge margin of company cash. For the cafe pod coffee co supercharger
espresso become the leader of the market but it become cash cows for declining share in the
market.
Question marks: those products are regarded as question mark which has significant
amount of developing rate but it has very minimal share in the market. These categorical
products shows the growth in its price it takes away the organisation resources. In the regards of
cafe pod coffee co the daily grind services are evaluated habitually and decision is to make it
worth holding (Demazière, 2018).
GE-Mckinseymatrix
It is refers to the tool which examines the portfolio and it gives the blueprint implications
as well as help in ranging the investment needed in each entrepresie unit. There are two
dimension in a matrix competitive strengthen and attractiveness of industry of a business unit. In
the regards of cafe pod coffee co has two categories are discussed below:
Industry attractiveness: In this the company can have profit within industry. In this the
organisation is examined and evaluated with the categories which are regarded for the long term
development of Industry and profitability , entry barriers. It examines and analyse the buyers
and sellers powers by keeping environmental factors in mind which influence the industry
attractiveness. According to Cafe Pod Coffee co. it esures and regards to their service and
moreover the change in the criteria of price, labour and time as keeping this in a focal point all
the distinct future for the dimensions are essential as dedication and commitment is required for
long term instead for short term for investment (Deacon, and Gruezmacher, 2018).

Competitive strength: while analysing a business unit with the these dimensions it is
regarded as it shows how it fares the relational to its enemies which exist within the industry. In
the regards of Cafe Pod Coffee co there are few factors which can help in evaluating and
examining the competitive weigh in a market. The products of a company are distinctive and
quirky itself as the satisfaction of a customer is high and their margin in profit is in mediocre
whereas the brand image in a market is low.
Evaluation of the growth opportunities by applying Ansoff's growth vector matrix
This growth model is explained as most efficient and effective tool which company uses for
analysing and constructing a blue print for the growth of a company. There are the four strategies
of matrix which company uses to enhance their growth as to analyse the risk prevalent in the
market. With regards of Cafe Pod Coffee co. the plan of action is mentioned below:
Market Penetration : This action is taken when the company wants to marketise their product
in the existing market. The utmost objective of a organisation is to have the increment in market
share through penetration strategy. In the case of cafe pod coffee co they will decrease the price
of a product in order to bring the more and new customers in a constructive manner (Graham,
Han and Tsenkova, 2019).
Products development: The organisation want to use this strategy when they want to bring the
new product in the existing market. For this the deeper research is involved as well the
development to expanding and bringing the numerous products range. In the context of Cade
Pod Coffee Co the organisation has to focus and invest more in the department of research and
development to caters the need of customer wants and needs in the market.
Market development : In this the any organisation enters into a completely different market
with their existing market. In the plaintext of cafe pod coffee co by using this action plan they
have the chances to expand their market in the overseas this will attract many new customers and
they will have the exponentially growth in a constructive manner.
Diversification : This strategy is completely different from all the action plan in this the
organisation enter with new product in a new market whereas this action can be the risky as it
needs the product development. In context Cafe Pod Coffee Co . The diversity is between the
established business with the sustainable service in the abroad market.

From the above report, the market development is regarded as the growth opportunity for
cafe pod coffee co in accordance of its existing product in a overseas country in effective
manner. They can expand their business in India because there are not high barriers as well it is
cost effective.
Discussion on the options for growth by using a range of analytical frameworks for
demonstrating the understanding of competitive advantage within an organisation
With the help of above frameworks, the owners of CafePod Coffee Co. can effectively
finds various opportunities which helps them to increase their growth of their business in order to
make highly competitive position in the market. As per the BCG matrix, the owner of the
company need to focus on their best products in order to provide effective service to their
potential customers which helps in increasing their growth in better manner (Horn, 2020). GE-
McKinsey Matrix assist its owners two analyse the dimensions which helps in gaining
sustainable competitive advantage which makes CafePod Coffee Co. highly competitive in their
coffee industry. By the analysation of Ansoff's matrix, the owners of the company need to focus
on the development of the market as it helps in increasing their business growth in the market.
This makes company to enter in another country that is India for increasing their customer base
as well as improve the growth of their business which has been affected due to Brexit.
TASK 2
Analysation for the potential sources of funding that are available for the businesses as well as
discussion for the benefits and drawbacks of each source
Different kinds of sources are available which help company to raise their fund which has
been required to operate their business in smooth way. For the improvement of growth as well as
get over from the negative impacts of Brexit, SMEs required proper funds in order to operate and
control their business functions in better manner (Kalliomäki, 2018). In respect of CafePod
Coffee Co., various kinds of fund sources which may be used by its owner for improving their
business growth are described below:
Internal source of funding-

In this kind of source, the owner of the company generated fund within its internal part
through selling of their assets as well as using retained earning. The benefits and drawbacks of
internal sources of funding for the owner of CafePod Coffee Co. are described below:
Benefits Drawbacks
 It refers to the easiest and fastest
method for the owner of CafePod
Coffee company in which they does not
require to focus on their repayments.
 This will helps them to avoids dilution
of ownership and control which makes
them to raise their funds effectively in
order to operate their business in
smooth manner.
 This type of fund source generate low
amount of fund which may be create
challenges for the owner of CafePod
Coffee Co. to improve it business
growth.
 As it also create problems for them in
order to operate their business smooth
manner because this methods decrease
their assets of the company.
External sources of funds-
In this kind of sources of fund, the company raise their funds with the help of external
factors like bank loan, debenture, venture financing etc. Many Kind of external sources that are
available for helping the owner of CafePod Coffee Co. in order to improve and increase the
growth of their business as well as enter in foreign market (Mai and Smith, 2018). These external
sources of funds along with the benefits as well as drawbacks to the company are described
below:
Bank Loan- In this kind of source of funding, the owner of the organisation takes loans
from the bank for the operation of their business. In this, company has to repay the loan amount
in small instalments by including interest amount also continuously for a certain period of time.
Its benefits and drawbacks, if the owner of CafePod Coffee Co. uses this sources for raising their
funds are described below:
Benefits Drawbacks
 This refers to the cost-effective method
which helps owner of CafePod Coffee
Co. to raise funds in low cost. As the
 It charges penalty amount, if the owner
of CafePod Coffee Co. does not pay its
instalments on time. In which penalty

interest rate of bank loan lesser than the
credit card and overdrafts.
 This type of sources of funding, render
flexibility to the owner of the
organisation for the repayment of the
loan in which they can pay as long as
they can according to their
convenience.
amount is included in their repayment
amount. As it also affects the
creditability of the company towards
the bank.
 It create difficulty for the small
company in order to generate their
funds from bank loan because their
finance in based on collateral method.
Bank Overdraft- It describes the facility which has been provided by the bank to those
customers who has their account in the bank. In this customers can use higher amount in addition
to the current balance in their bank account. For the use of excess amount bank charge interest
amount to the customer (Mattila, 2018). The benefits and drawbacks of bank overdraft, if the
owner of CafePod Coffee Co. are described below :
Benefits Drawbacks
 The interest has been charged in only
borrowed amount which makes easier
for the owner of CafePod Coffee Co. to
repay the overdraft amount
 In this type of sources of funding,
owner has flexibility to create changes
within their borrowed amount limit.
This makes easier for them to raise
funds as per their requirements.
 The interest rate of bank overdraft
higher from the bank loan in which the
owner of CafePod Coffee company are
required to high amount of interest for
the repayment of their overdraft
amount.
 This type of sources of fund can not be
used by the owner of the company if
they want large amount of borrowings
for the improvement of their business
growth.
Crowd Funding- This kind of sources of funding, makes company to generate higher
amount of funds, by collected from the large group of individual through various online
platforms. This will not help company to raise fund but also promote their product and service as

well as brand in better manner. The benefits and drawbacks of crowdfunding, if the owner of
CafePod Coffee Co. uses this method are described below:
Benefits Drawbacks
 This describes an effective method for
the owner of CafePod Coffee Co. as it
provides easy access to them in kind of
different donations as well as interest
free loans.
 This refers to the easiest and
convenience method for them in order
to set their crowdfunding platform
through internet.
 This refers to the most time consuming
methods in which owners of CafePod
Coffee Co. require specific time for
creating their crowdfunding campaign
for generating fund.
 In this source of fund owners of the
company can negative or false results
from as their ideas or products may not
like by people. This will also creates
difficulties for them in order to improve
their business growth.
Peer-to-peer funding- In this type of source of funding, makes company to generate
funds with the help of start-ups, venture capital as well as render funds. This types of source of
funding is also known as equity financing (Neugebauer, Duineveld and Buizer, 2019). The
benefits and drawbacks of Peer-to-peer funding, if the owner of CafePod Coffee Co. uses this
method for raising their funds are described below:
Benefits Drawbacks
 This type of source of funds makes
easier for the owner of CafePod Coffee
Co. as well as it also charge low
interest rate which helps them to
improve their business growth and
increase their profitability.
 As this method provides effective
accessibility to them which makes them
to increase their funds without facing
 Due to this, the owner of CafePod
Coffee Co. may bear higher risk as the
no insurance has been provided by the
government.
 This will cause higher amount of risk
which makes them to bear higher
amount of credit risk.

more difficulties and issues.
Evaluation for the potential sources of funding along with the justification for the adoption of an
appropriate fund sources for a given organisation
As per the above analysation of different sources of funding, it has been analysed that
many option are exist in the market which helps companies to generate funds according to their
necessity and suitability. By having proper funds, SMEs can effectively improve their business
growth and productivity which has been got affected from the Brexit in UK. In context of
CafePod Coffee Co., it has been analysed that, Bank Loan refers to the best method of source of
funds which helps its owner to generate more funds for the improvement of their business
growth in better manner (Rahmafitria and Putro, 2020). In this method, the owner of the
company required to pay low amount of interest for the repayment of the loan and can raise in
easiest manner for the improvement of growth of their business in better manner. By having
proper funding with the help of Bank Loan, it helps company to enter their business in another
country for increase their growth in better manner.
PART 2
TASK 3
Designing a business plan for the growth which includes financial information along with the
strategic objectives for scaling up a business
The business plan describes the summary of an organisation which shows what their
business organisation does, how it has been developed in better manner as well as where the
organisation want to go. The business plan includes the strategies which helps in improving
companies to improve their current sales as well as process in order to reach their desire growth
effectively. This makes necessary for the owner of CafePod Coffee Co. to develop a business
plan for improving their growth in respect of their task orientation and strategic process. It
important for its management to follow their strategic process with the fully utilisation of their
resources. The owner of CafePod Coffee Co. can also use sustainable services which makes
them, unique as well as different from their strong competitors. This will also makes them
concerned toward the environment, which helps in increasing the customers for their products in

better manner. This will also help them to overcome from the impact of Brexit in better manner
in order to increase their business growth in better manner. This will also help them to gain
sustainable competitive advantages for their business in better manner (Rodas and Gómez,
2020). The business plan which describes strategies of CafePod Company for improvement of
their business growth are described below:
Basis Strategies
SWOT Analysis SWOT analyses describes as a framework which helps company to
identify their present strengths and weaknesses along with the future
opportunities and threats. This will helps owner of CafePod Coffee
Company to improve their business growth and productivity in better
manner (Stoker and Levine, 2021). The strengths, weaknesses,
opportunities and threats of CafePod Coffee Co. are described below:
Strength-
 CafePod Coffee Co. is
one of the independent
company of UK.
 It has wide range of
products as well as large
amount of market
capitalisation.
 It provides high quality of
products to their
customers in order to
make effective
relationship them.
 It manufactures unique
coffee capsules which
makes them highly
competitive for their
competitors.
Weaknesses-
 One of the hardest
weakness of the company
is lack of good
relationship with the
suppliers.
 As their decision making
process is not effective
because their employees
does not participate on
decision making process.
 Lack of advanced
technology is also creates
problems in order to
manufacture unique
products.