Strategic Growth Analysis and Business Plan for Dimello Coffee Shop

This report examines the growth and development strategies for Dimello Coffee House, a small coffee shop in the UK. It analyzes key considerations for growth opportunities, including market competition, product innovation, and collaboration. The report evaluates growth options using the Ansoff matrix, focusing on market penetration, product development, and diversification strategies. It explores potential funding sources such as bank loans, crowdfunding, and government funding, discussing the benefits and drawbacks of each. Furthermore, the report includes a comprehensive business plan with financial information and strategic objectives for growth, and examines succession and exit options, outlining the advantages and disadvantages of each. The report emphasizes the importance of strategic decision-making and market research for successful business expansion.

Planning for growth

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
TASK...............................................................................................................................................4
Analysis of key considerations for growth opportunities and justify them.................................4
Evaluation of growth opportunities with the use of Ansoff’s growth vector matrix...................5
TASK 2............................................................................................................................................7
Finding out the potential sources of funds with the discussion of benefits and drawbacks........7
TASK 3..........................................................................................................................................10
Business plan which includes financial information and strategic objective for growth of
company.....................................................................................................................................10
TASK 4......................................................................................................................................14
Examine succession and exit options for with drawbacks and benefits of each option............14
CONCLUSION..............................................................................................................................15
References......................................................................................................................................16
Books and journals:...................................................................................................................16

INTRODUCTION
The report has the main purpose to provide the significance of growth and development for a
business. There are many small business organizations who are seeking many efforts in order to
make effective growth into future by high profitability and brand name into market. Small
businesses are an integrated part of our society which is helping fulfilling customer needs and
requirements at their best services. So that growth and development consist various part and
contingencies that will be present in this report. It is about Dimello coffee house which is a small
coffee shop tablet in UK from the year 2002 (Angotti, 2018). They are dealer of finest coffee
with the accumulation of coffee plant and Beans directly from the nature. This report is going to
present the key considerations and growth options for Business expansion by ascertain a
coherent business plan with the evaluation of its strategic decision making. Also, the report will
present the market segments through Ansoff matrix and how the organization could raise funds
by evaluation of each benefit and limitation will be helpful to take business decisions.
MAIN BODY
TASK
Analysis of key considerations for growth opportunities and justify them
The growth opportunities for business are surrounded with many considerations that need
to undertake by organization. With a small organization are affected through several macro
environment factors. The Dimello coffee house is a s m e located in UK which provide finest
coffee beans into their are serving. For the purpose of growth an expansion the company needs to
analyses the elements described below:
Competencies
The dilemma coffee shops which to undertake the consideration of competency they could face
in present or future circumstances. Growth opportunities lack in front of market competitions.
The more number of competition Rises the more doors will be closed for small organizations due
to having large investment profitability of big reputed organizations. So that dimello coffee

needs to take competitive advantage by acknowledging the factors of Porter five forces model.
This tool provides the analysis of political power environmental economical social and
technological factors in order to general knowledge of market competition and the restrictions
involved through government intervention.
New products and service innovation
In order to enable growth opportunities for the dimello coffee shop, continuous Innovation and
change in product and services will better achieve customer requirement and provide value into
products which customers can resist of. Also due to the rising competition, innovation is become
the key for growth and success. Dimello coffee shop maintaining this innovation in terms of
refreshing beings and delivering other refreshments by way of using home equipments,
grounding and different flavors into the premium coffee packages (Fusarelli, Fusarelli, and
Riddick, 2018). The new innovations would be in terms of operational practices are launching
new product into market stop the digital platforms such as websites social media are becoming
most vital factor. The Dimello coffee has their own website in which customers get all the
information regarding organization and their products as well as service information which will
be helpful for them to know their existence.
Collaboration
Nowadays, many successful business are seems to undertaking collaborations in order to enable
growth opportunities. Collaboration will make the business practice in easier and benefit into
together efforts in terms of capital , marketing and sale. Collaborations could be in any form such
as acquisition mergers joint ventures and strategic alliances in which two or more people work to
make growth into leading market.
Evaluation of growth opportunities with the use of Ansoff’s growth vector matrix
In order to implement the growth opportunities successfully in the organisation there is
need to determine strategic directions which would be helpful in order to reduce the chances of
failure. Develop coffee shop needs to analyse various options which good provide the benefits as
well as expansion of the coffee shop as per their capabilities. For that instance, Ansoff matrix is
perpetual framework of growth which gives 4 elements that are discussed below:
Market penetration

Under the strategic direction the organisation look for expansion by increasing their sales growth
into the existing market with the existing product. In which the company focus on the left out
areas where they I haven't reached yet so that the company conduct proper research in order to
analyse all the market and customers which are still unaware about complete existing products
and services. It is a good growth option for demand coffee shop in order to increase their
customer arrival can make their retention through serving the best coffee beans crafted through
home equipment.
Market development
The strategic direction focuses on development of market which mean accompany take a growth
from existing to New Market opportunity (Götmark, and Andersson, 2020). Therefore, they what
get benefit of new customers and competitive advantages by delivering the existing product into
new market. Dimello coffee shop could avail this advantage through collaboration and strategic
alliance in order to start their Coffee House in different City.
Product development
Most of the company's first accept this strategy of product development to give rise to new
products categories and varieties for the existing market customers . this way the organisation
wants to retain their potential customers by fulfilling each and every demands. It is also an
effective strategy to enable growth in competitive market by pushing the investment as well as
profits in financial year.
Diversification
The strategic direction is mainly for the organisation that has adequate financial position and
would take risk in competitive market. It enabled the opportunity for establishing new products
into the whole new market. This strategy is quite riskier but if performed in an effective manner
will lead to Rapid growth of organisation.
From the about evaluation, the coffee shop needs to undertake the strategy of market
penetration and product development for the existing market as the company work on small level
so that this strategy will come out with many other benefit in future for growth and expansion.

The more they a work for customer satisfaction and provide variety into their coffee and
beverages the more they would reach the height of success in a less time.
It has evaluated that there are many good options availing for the small business Enterprises in
which new product and service innovation is one of the leading growth opportunity for
organisation. as it give the usage of Internet and digital benefits which enable large reach in
minimum investment. Also the collaborations and franchising are another growth options is it
give competitive advantage in to market (Grant, 2019). They will be less risk by working
together for the same objective. All these growth opportunities are mainly in the key
consideration of gaining competitive advantage in two market as competition is becoming the
major threat for small enterprise is which must be overcome by giving undertaking the
opportunities in an effective way. Competencies worked as an obstacle for small business owners
due to family impact of large business environment in terms of Technology, political interference
social and environmental outcome. Therefore Dimello coffee shop needs to undertake the option
of new product and development by enabling digital and social selling in a broader manner.
There is an evaluation of many options for growth opportunity in the context of The
Dimello coffee shop. Every growth options are entitled with both risk and benefits. So that it is
true to analyse and interpret all the options before taking any decision for market development
and product development and diversification as it requires proper market research in order to
create new product and service innovation for collaborate with other organisation or people. In
collaboration, there will be risk of Trust issues on the other party as they could destroy the
existing reputation of company. Whereas new products and service development will lead to
create risk of investment and resources and lead to company losses. Therefore it is required for
The Dimello coffee shop to analyse each and every growth opportunity before implementing it
into practical manner.
TASK 2
Finding out the potential sources of funds with the discussion of benefits and drawbacks.
An organisation covers a large area of investment and funding in order to implement desired
productions operations and other day to day activities into business operations. In order to make
Innovation and extension there are a lot of funding process through which an organisation get

assistance with minimum formalities and interest rates. There are potential sources of funds
which are described below with their advantages and limitations:
Bank loan
This source is almost ascertained by every organisation weather for capital investment or treating
expansion in terms new product and increment of assets and Technology. Bank loans are
popularly funded and easy to take with minimum formalities. Dimello Company grants loans
from Bank by knowing their advantages and limitations. One of the main advantages of bank
loan is that they are secure and safe also it gives less amount of interest through which
companies enjoy high profits in to market (Hexter, and Kaufman, 2017). Whereas, one of the
main limitation is that the company will be held liable for paying all the amount of principal and
interest on whether they would make profit or loss. Otherwise personal assets will be get cease in
terms of not paying any amount.
Crowd funding
As the name suggests the findings are utilised through number of crowd that are are any
individual or people from group or organisation. Mainly the small organisations are taking
advantages of crowd funding for their new start up or innovation into organisation. The funds
would be raised through small amounts bye number of people. It could be done through social
media websites and collaborations. There are some advantages and limitations of this fundraising
option which needs to undertake by Dimello coffee as crowd funding is a low interest great
opportunity to raise funds which will be beneficial for small organisations. The procedure in
quite easy and quick ok of transferring money from individuals and paying back. One of the
main limitation of this option is as the fund are raised through number of people the company
main get failure into their plan which will not be e accepted by the crowd funders and will
destroyed the whole reputation of company.
Government funding
The Mellow coffee shop could also undertake this fundraising option into their list. Government
funding is available for those who have good reputation and contribution in to society as the
government require trust and security over the amount. Government funding will be very
beneficial in terms of minimum or no interest rate as government would not charge any extra

amount from small business owners in order to support them by giving subsidies or rebates.
Apart from the fact that it is funded through government, it has also some advantage and
limitation. As a government funds are safer for and low interest rate which is an advantage but
the most crucial limitation is the company need to be sure about their business plan and growth
opportunity so that it would not lead to failure otherwise government will seize the licence and
keep an eye on every activity of business practices.
It has evaluated that bank all the three options are equally beneficial for Dimello coffee
shop but they need to be very e effective in their business plan so that they would not face any
loss during future.
The potential sources of funding includes bank loan, crowd funding and government
funding . all these are essentially beneficial for small business organisation who wants to achieve
the heights of success in terms of profitability and market growth. It has evaluated that all the
three sources are profound with many advantages and limitations but if used wisely they would
give a great opportunity for business growth. As the bank loan is safe source of fund but requires
to be sure about business plan otherwise it would lead to personal assets and acquire the property
of organisation (Ohm, 2017). Whereas, government organisation and crowd funding also impact
on organisations existence and reputation. The Dimello coffee shop need to be sure about the
Strategies and plans they are using and adopt the most equitable source of fund which could be
the bank loan and government funding.
From the evaluation of different sources of funds all the sources are safe and secure and
require minimum rate of interest which will be beneficial for company in terms of profitability.
What the bank loan require Collateral security through which the company would not use it as an
investment until the repayment of loan. The government funding give benefit in terms of
profitability by charging no amount or less amount of interest but any wrongful acts or failure
would lead to permanent the closure of company. Similarly the crowd funding make the relations
with people who could destroy the image of company if not stand on their expectation. Therefore
the wisest source of fund for Dimello is bank loan as it is secure and safe also provides long-term
assistance with a good initial capital investment.

TASK 3
Business plan which includes financial information and strategic objective for growth of
company
Business Plan
Executive summary The Dimello coffee shop is one of the finest coffee
provider in UK which was established in 2002 and
still running their operations effectively. The
company wants to make growth through new
product and development by providing varieties
and enable market development through social
media marketing.
Business details Dimello coffee shop is a small organisation of UK
which enable the innovation for delivering the
finest coffee and hand craft it beans by using home
equipments and enriching the flavour of grounding.
The company vision is to provide a great
experience of taste and intensity which relax the
mood my enjoying coffee.
Industry and market analysis Dimello company comes under the Retail Industry
which has large competition and wide market. The
industry is mainly known for giving good growth
and employment opportunities by contributing in
Economics GDP. The industry is known for
utilising resources and innovation at the whole.
Customer and value preposition Dimello company has their customer segments
which includes people with average income level
and for all the age groups and gender. They provide
coffee beans per coffee extract and serve delicious
coffee through online and at the shop in a
reasonable price and sufficient quantity. This give

value to their customer into the product
Marketing strategy The organisations marketing strategy involves
social media marketing true launching event and
videos of crafting and making coffee and the
procedure of beans (Rosen, and Charney, 2018).
The unique procedure of preparing coffee gives a
homemade feeling to the customer.
Operations plan Dimello over fees operation plan involves Sourcing
the beams from travelling around the world in
involve fashion energy in coffee beans which
served through hot water and get delivered by using
home equipments. Operations involved blending,
roastery and packaging.
Management and company structure The company manage their functions and regulate a
chain of command by giving divisional work as per
employee’s abilities. The management involve
specialisation of employees into the field of bean,
grinding and serving coffee.
Resources Company has quality and effective resources in
terms of grounding and packaging the coffee beans.
But more mainly the use home equipment which
give sustainable business and acquire less
knowledge for employees to adjust with the
technology. The Undertaker optimum utilisation of
resources by keeping in mind the recycling and
reuse.
Financing The company could acquire funds from Bank as
they are the safer source of fund which give
assistance to long term period so that the
organisation would fulfil their aims and objective
into the stipulated period of time and it will

contribute in to the Nations GDP.
Risk plan Risk are everywhere in the business sector, so that
The Dimello coffee shop must analyse the external
environment which will reduce the uncertainty and
any government interference so that work will flow
smoothly.

Marketing budget
Marketing budget
Particulars 1st year 2nd year 3rd year 4th year 5th year
Capital money 5000 7500 11000 13500 1350
Investment 12000 14000 25500 32000 13500
Total 6000 22500 37500 46500 31850
Marketing outlay
Promotion 6500 3200 4300 3300 3250
Sales publicity 2200 2100 3300 2200 2000
Direct selling 4200 2500 6000 3000 4650
Total 12900 7800 13600 8500 9900
It has evaluated that the business plan is a road map for strategic decisions in order to take
growth and fulfil objective of organisation. An effective business plan includes executive
summary, business detail industry analysis customer and value proposition marketing strategy
operations plan resources financing and plan. All are these provide information and procedure of
undertaking the activities into business functions. Therefore the coffee shop has and all the
business mission which require to developed the market and product through undertaking new
coffee delights and Beans extracted through nature and enhance online selling which is the main
aim of the company.

Business details: Demillo coffee shop is a small coffee retailer which provides finest coffee
beans by using home accepted equipments.
Industry and market analysis: it comes under the Retail Industry and has wider competition
into the market.
Customer and value proposition: the company undertakes all age and gender people by
providing delicious taste and experience of coffee.
Market strategy: the company could complete their Mission by using online selling through
website and social media tools.
Resources: the company has resources of raw materials and finest beans with professional
employees.
TASK 4
Examine succession and exit options for with drawbacks and benefits of each option.
There are a lot of options for succession and exit into a small business. The future existence is
not stable and could not interpret as per the future requirement due to having dynamic business
environment. Therefore, a company good amplifier these options in order to to gain knowledge
about its advantages and disadvantages.
Liquidation: the most popular and used option is liquidation in which company get liquid apply
by accumulating all their assets liabilities and that. The liquidator self all these elements into
market in order to wind up the company (Sorbe, and Johansson, 2017). So that it is the benefit
for organisation which is cost effective for winding up. My liquidation the owner pay to their
creditors and shareholders with the funny so that it would not get insolvent. The main
disadvantage of this exit and succession is that the owner will be liable for paying them up to
their personal liability. Also they would not get high amount of investment from selling the Asset
into market.
Sell business in the open market when company has good brand name and reputation it could
sell the business into Market by acquiring the investment and funds from the marketers. This is
also a beneficial way of exit and succession from a business. Marketer will call Upon A decided
price as per company’s reputation and Goodwill system. The benefit of this option is all the hard

work will pay off in terms of good money at the time of selling the business. One of the major
limitations is that it contains high legal cost and a lot of formalities.
There is a valuation of two succession and exit option. With the viewpoint of small
business like Dimello coffee shop the best option would be liquidation as small business does not
have much goodwill and Global brand reach so that liquidation will page of the value of Assets
and investment they made but selling into open market will not feasible as it contains many legal
actions and uncertainty (Var, and Gunn, 2020). Therefore, liquidation is a quick procedure of
winding up also the debts and liabilities will paid off but sometimes could lead to personal assets
also. It has critically evaluated that the company needs to ascertain an effective exit of succession
plan in order to remain apart off losses and will ascertain the investment cost. They need to
identify which option will give highest return as in the case of dimello coffee shop they require
the liquidation process as compared to selling business into online market due to having small
business.
CONCLUSION
The report has concluded that growth and development are all based on company’s investment
efforts and effective operation. Therefore, in order to analyses the entire environment it has
evaluated the key consideration for growth opportunities. Also, various sources of funds are
elaborated with an effective business plan. There are two major options of exit and substation for
small business which are defined with their benefits and drawbacks.

References
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