Club Express: Business Growth, Funding Sources, and Strategic Plan

This assignment analyzes the growth opportunities for Club Express, a coffee shop launching in London. It begins with key considerations for analyzing growth, including Porter's Generic Strategies (cost leadership, differentiation, focus strategies) and PESTLE analysis to understand the external environment. The report then applies Ansoff's growth vector matrix (market penetration, market development, product development, diversification) to evaluate growth possibilities. Furthermore, it identifies potential funding sources, such as internal sources, crowdfunding, bank loans, and angel funding, outlining the advantages and disadvantages of each. Finally, the assignment develops a business plan that defines financial information and strategic objectives for scaling the enterprise, covering aspects like market analysis, competitive advantage, and financial projections.

Planning For Growth

INTRODUCTION
Planning in the important management function, where consists of deciding beforehand
what is to be done (de Roo, 2017). To get success and growth in the business need to proper
planning and the effective performance of an organization not only for businesses but also for
individuals. There are including select mission and objectives and the actions to accomplish
them. A manager prepare plan to execute operations as well as activities that has to be performed
by the business in a potential period of time. The club express is a coffee shop and be launched
in London. It will provide different flavors of coffee with cookies. The present assignment
consists of key consideration to an analysis of growth and applies Ansoff's growth matrix in
order to evaluate possibility. Apart from the report, determine the potential source of funding and
their advantage and disadvantage. Additionally, develop a business plan which can define the
financial information and strategic objective for grading up a enterprise.
TASK 1
P1 Key considerations for analysing growth opportunities
Planning is a management tool that is beneficial acquire goals and prepare strategic
decisions. With the help of planning prepare other alternative that will work as a back up plan.
Club express is a part of the restaurant industry and sale out coffee in different flavours with
cookies, it is going to be introduced in London. To introduce successfully in the market need to
prepare an effective plan for motivation. There are recognized important circumstance which can
help to obtain development accusative.
Porter's Generic Strategy – The position of a firm base on the profitability which is
above or below the industry average. It is firstly developed by Michael Porter and it is applied by
a business to reach to get success in competitive market. The particular method can help to get
attainment and compete with their challenger by supplying in low cost and different types of
items to clients. The particular strategy has been categorised into four parts that will be explain
below: Cost leadership – According to this plan of action an organization focus on their cost and
according to that set objects to deduct amount of cost (Dimitriou, 2013). Club express
adopted a particular scheme to reduce cost in their industry as a result people aware about
the restaurant and visit here. The particular scheme connected to collective product where
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a business focuses on the manufacturing of end numbers of commodity which is deducted
the cost of production. For instance, Club express maintains the cost of products in a
lower way at the time of launching. Customers aware for the cafe and visit with their
family. Differentiation – The particular strategy defines a business manufacturing different types
of products to compete with the competitors in an effective manner. As a result, it can
promote business and target those people who are interested to purchase specific items.
The manager of the club express applied a particular strategy in the shop due to introduce
their products in London. It is mainly applied by club express to provide variety and
choice commodity as compared with others. Focus on cost – It is used by a business when introducing their goods provides to people
at lower price at small market. Cost focus strategy selected by Club express to introduce
their products in the market of London at the time of launching products there. On the
basis of the strategy set the price of their products lower compared to other than. For
instance, Club express is going to establish their products introduce with lower cost in a
small market portion. With the help of it understand perception of customers regarding to
their products (Boserup, 2017).
 Differentiation Focus – According to plan of action, introduce specific items in specific
area for target customers. There are defining about requirement of clients due to
introducing the creation. Club express focus on it and execute in effective manner for
their commodities. It can help to understand perception of customers to grab chances to
complete its needs. To promote their goods in small market need to develop good
reputation and provide at low price.
On the basis of these options, The Club express selected to differentiation focus to launch
their business in London. To introduce their business there is a need to understand market
activities then take appropriate steps (Kerzner and Kerzner, 2017).
PESTLE Analysis – The particular analysis based on the external analysis and apply as a
tool in an organization. The Club express apply a tool of PESTLE analysis to determine of
external activities of the London market. Through analysis define about different elements which
can impact to performance as well as growth of the business -
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 Political – These factors based on the government policies, laws & regulations. There are
consisting of several policies like fiscal, monetary, tax policies. These are obligatory by
the authorities of the nation. After analysis of UK politics it is recognised that political
environment remain stable. Thus, it is considering as opportunity for The Club Express
introduce their business in London (Mitchelmore and Rowley, 2013). Economical – In this factor define about the interest rates, inflation rates that are direct
influenced to economy a nation. After the analysis of economy of London it is getting
that they have good chances for The Club express launch their business to generate
maximum profits. Social – With the help of social factors analysis of social activities as well as
environment of London market regarding to company. There are considering of ethnic
direction, social group, statistic, customer's mode etc. In London mostly customer aware
for the new and creative commodity. As a result grab opportunity to launch new product. Technological – There are considering those technological factors and innovations of
technology due to introducing their products in London. The Club express should focus
on those factors that will introduce into market with invention. Mostly customers nature
is friendly and easily communicate. Hence, it is considering as big opportunity for the
business to introduce their products in market after apply new application of technology. Legal – In this factor define about several laws that may influence to business and their
plan of action on the basis of management plan of a business. The government of London
has prepared effective policies in order to launch coffee in different flavours in the
London. Thus, it is considering as a chance for The club Express to increase level of
development (Phelps, 2013).
 Environmental – There are including several environmental safety acts and laws
regarding to business. The Club express is afraid with environment protection act and it
will develop positive reputation.
P2 Opportunities for growth using Ansoff's growth vector matrix
The particular strategy firstly introduced by H. Igor Ansoff. It is applied by different
types of business in order to analysis several market to launch products. It will help to recognise
the appropriate market for the organization for introduce its products. There are defining about
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the four various strategies that can be selected by The Club express to introduce their items in
London. There are defined about the strategies - Market Penetration – It will define about the sale of already existing products and
services in existing market segment. With the help of this build up new opportunities in
order to earn profits through accomplishing more clients in existing market segment. On
the basis of this strategy a researcher already know about the customer needs so there is
not requirement of promotion (Gleeson, Dodson and Spiller, 2012). Market Development – According to this strategy, promoting of existing products at new
place. To sale out of their product need to target various types of customers to attract for
their products. With the help of this plan of action save cost of alternation. Product Development – It will related to launch of new product in existing market.
Through particular strategy company fastly grow due to marketers know about the
perception of customers. If the company is having good market image then this strategy
can save cost of researchers and promotions.
 Diversification – With the help of particular strategy launch of new product in a new
market segment. To launch new market company also target to new customers. If
products are developing in effective manner so easily get success into new market and
business get growth (Haughton, Allmendinger and Oosterlynck, 2013).
As per the above defined strategy selected differentiation strategy for The club express
due to connected of situation of business.
TASK 2
P3 Sources of funds with advantages and disadvantages
Fund are financial resources that are used to operating the business activities. Normally,
Capital is required to open a business as well as handle the daily activities of firm. Sum of fund
can be managed by a firm through various resources like Bank loan, NBFC, Long term loan.
Club Express required total capital of £200000 while launching as the start up in London But it
is only £100000 and the rest of the amount will be raise through various types of funds. Start up
is providing the its services related to flavoured coffee and snakes item. For raising the funds
firm is identified certain ways that are described as follows:
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Internal sources: There are some internal medium to raise the finance requirement for
the business plan like earning from the sales of assets, cash, preserved capital etc. To launch a
start up plan in the London, It is required to have some internal resources to the business owner.
So that he can manage the rest of funds from somewhere else (Batty and Marshall, 2012).
External sources: It refers to the external sources that are available outside of the
organisation. Here is some of the example of the external resources to gather the required fund
such as finance form private organisation, long term loan, bank finance.
Following are the external resources to raising the finance requirement;
Crowd funding: It is small business practice of funding for a venture to accumulating
small amount of fund from a large number of group. It is a fund outsourcing method that
provides money from large number of people worldwide with the help internet. Owner of the
venture can invite the people through internet medium like e mail, websites, social media. Club
Express is raising its fund from outside market to fulfil the requirement of money.
 Advantage: It is simple and easy way to collect the required money from the various
investors. It is alternative finance method that provides the fund as per requirement.
Investors who help the owner in providing guidance to alters the business plan, structure
and their business activities.
 Disadvantage: It may have bad side also. These kind of funding creates the problem for
the business entity in order to want their money back in urgent as well as no market
credential (Pothukuchi, 2015).
Bank Loan: It is most efficient way to raise the required money from banking
institutions. Banking institution provides the fund by taking collateral security as well as specific
interest rate. It is probably good medium to raising the fund as these institution are secured and
well recognition of the customer. The owner of the firm must choose this option to raise the
required money of £100000.
 Advantage: It is easy option to choose the essential requirement of the business. The
interest rate of the loan are fixed so borrower can pay the fix amount as a interest.
 Disadvantage: Banking financial institution holds the collateral securities of the
borrower and it will be an task get back after approving the loan amount.
Angel funding: It is also known as business angel, private investor, angel funder. It is
substantial individual who provides the business capital for start up firm. Coffee Express can pull
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the money from this resources too by attracting them with their brilliant idea of the business plan
(Holman and Rydin, 2013).
 Advantage: when firm is funded by angel funding then no need to pay the interest of any
kind of securities to them or requirement to raise fund from outsider.
 Disadvantage: The owner needs to share all the business detail like power, authority,
control, profit and cost of the firm.
TASK 3
P4 Business plan for growth of business:
Business plan is a document which provides the internal information of a firm to the
shareholder and outsiders. In this business plan, it consider Firm's vision, mission, goal and
objectives, financial information of a firm. Coffee express is a services sector organisation that
providing the services related to foods and drink item such as flavoured coffee and snacks. So
owner should make systematic business plan in order to make profit and achieve the financial
growth in future. The main target of the owner is to attract new customers such as students,
employees,other customers and create the business opportunities in order to increase customer
base by rendering the valued services with some unique taste and variants. Business plan assist to
formulate a particular business strategies for future and make policies or rules and regulation to
reduce risks associated in operational activities (Thapa and Murayama, 2012). Thus the
management of the organization is recommended to build a business plan before expanding their
regular activities. The business plan is as follows:
Vision: Vision of the Coffee express is to render best business services to its valued
customer and offer them a broad range of coffee with snakes item to be a top in service industry.
Mission: To identify the needs of the customer and provide the valued services of exotic
range with minimum cost. So that it will a create a positive brand image and attract the customer
at various market places.
Strategies Goal: The main objective of the Coffee Express is to launch the services in
the London market successfully by a creating a new and optimistic brand value and target to
increase the profit margin by 10 to 20 % in upcoming 10 year. The second objects is to enhance
the market share of London by higher the sales with customer satisfaction. This can attained by
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systematic approaches to its business activities and controlling on the execution of business
practices.
Financial Information: The success of the business plan is totally based on the proper
or systematic business planning control over the business services operations. Coffee Express
requires fund to perform the business activities and these fund can be generated by many method
like internal as well as outsiders fund to achieve the financial goal (Ozanne, Biggs and
Kurowski, 2014).
To planning for expansion of coffee Express, It is required to estimates budget plan that
provide the detailed information of those fields where a company can manage the fund and how
it can be utilised. This budget shows the various expenditure that may happen while expansion
i.e. technology installation, transportation, promotions.
TASK 4
P5 Succession and exit plan for small business
The Club express is a coffee shop which provide different flavour coffee with cookies.
The particular company has been gone to be open new cafe and provide coffee in different
flavours with cookies. Thus, for an organisation to get success prepare succession plan and due
to face problems select different exit plan. There are defining about the succession and exit plans
-
Exit plan – This is a scheme that will apply the business in fully and give responsibility
to any other person. It will plan to provide help to owner to exit from their business. It is mainly
applied owner when they are suffering loss from long time. So it is suggested to owner to select
exit plan from business activities. There are defined alternatives -
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Winding up – There are defined on the basis of particular exit option a business has been
sold out all the assets, pay off their creditors and administer spare monetary fund. If The Club
express did not get success in London so they will apply particular option (Ozanne, Biggs and
Kurowski, 2014).
 Advantage – In this option they can not face problem of debts.
 Disadvantage – The company has been lost effective work force.
Selling in open market – According to this option a business can selling their business
in market and that will buy of other person. As a result business will be hand over to another
person and change of the owner.
 Advantage - The benefit of this option do not harm of reputation of business
 Disadvantage – The limitation of this option to owner will lose his authority and skilled
employees of his business.
Succession plan – According to this plan identify of new leaders and which can take
responsivity instead of old leader and conduct business activities.
Merger and acquisition – Merger is a option where two same level of organisation
merge with particular object and in acquisition, acquire by big company to small company.
 Advantage – The main benefit of this option to improve level of development and get
success in competitive market.
 Disadvantage – The drawback of this option that it will increase burden of pay off to
creditors and obligations.
After the analysis of all succession and exit plan it is recommended that select the
alternative of merger and acquisition in effective manner.
CONCLUSION
Planning is a process where prepare strategy to execute plan in effective manner. There
are defining about the aims and objective in order to expand business at higher level. To achieve
growth in business planning is important factor that will adopt by every organisation. There are
applied porters generic in order to select particular scheme differentiation in products and
conduct PESTLE analysis. It can help to understand external factors that can affect to business in
direct and indirect manner. For business apply Ansoff matrix to adopt best strategy to get success
and accomplish their objectives. In critical condition adopt plan of exit and future events for
business.
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