Strategic Growth and Funding Plan for Dimello Coffee House Expansion

This report provides a comprehensive analysis of Dimello Coffee House's growth strategy, examining key considerations, including competitive advantages, market analysis using Porter's Generic Strategies, and the BCG matrix, and external factors through PESTLE analysis. The report applies the Ansoff Matrix to evaluate growth opportunities, including market penetration, product development, and diversification. It also explores potential funding sources for business expansion and outlines the development of a business plan for growth, including strategic elements and financial considerations. The report concludes by identifying potential exit or succession options for the SME, providing a complete overview of Dimello's strategic planning for future growth and sustainability.

Planning for
growth

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Analysis the key considerations to evaluate the growth opportunities and justification............3
P2. Applying The Ansoff Matrix to evaluate growth opportunities.................................................6
TASK 2.................................................................................................................................................7
P3. Explaining the potential sources of funds..................................................................................7
TASK 3.................................................................................................................................................9
P4. Making a business plan for growth............................................................................................9
TASK 4...............................................................................................................................................15
P5. Identify exit or succession options for SME...........................................................................15
CONCLUSION..................................................................................................................................17
REFERENCES ..................................................................................................................................18

INTRODUCTION
Business planning is a type of strategy related to business planning that allows corporate investors
to create organic plans and track sales and growth, profits and sales. This allows businesses to
allocate limited and specific resources that strain the core of the organization driving competitive
differentiation and digital disruption. This plan and tactics certainly includes a growth plan, which
can be meticulously, systematically and fairly documented. It's all about ambitious, long-term
management of the company. This method sets goals and targets and also shows the correct
strategy for achieving them for the company. A growth plan is considered the current state of the
business. It also includes threats, strengths, opportunities and weaknesses. This project covers the
Dimello Coffee House. (Abdullah, R., 2020. )The company was founded in 2002 and is
headquartered in the UK. The project also covers the possibility of further expanding the existing
business in the market. The Ansoff Matrix is an important model that also reflects the growth
opportunities Dimello needs. There are many sources from which a company can obtain funding to
run its business, and it can be obtained through a close evaluation of the appropriate sources,
covering part of the report. In addition, Dimello's final business plan is drawn up with all the
specific details and includes a description of the various outcomes and existing options available to
the company.
TASK 1
P1 Analysis the key considerations to evaluate the growth opportunities and
justification.
A company must have a place in the market related to its business. This is very important for
organizations to develop business growth plans and there are different frameworks and models for
these activities. (Barzehkar, et,al., 2021. )In the case of Dimello, the recruitment and selection of
members required for staff requires high skills, and staff must also be able to meet the needs of
consumers. These various factors make the company efficiently analyse growth opportunities.

 Competitive Advantage – Competition in the market has allowed companies to constantly
step up and get more sales and growth. Consumers have the lucrative advantage of being
able to purchase a wide variety of end products with high quality and low prices. The
company knows your wants, your tastes, your preferences. Realize cost resource benefits
based on the proposals that describe the decision framework. It can also be used for
resource planning. A key focus is on the company's capabilities, assets and capabilities to
give it an edge over its competitors. For Dimello Enterprise, poster's generic model strategy
can be applied.
Porter's general matrix:
A matrix is beneficial to a company as it helps the company make the right decisions to find the
right position for it in a competitive market. The company follows this method. This allows the
organization to grow and achieve more success within the company. Here we discuss different
strategies for organizing Dimello.
 Cost Leadership - In this strategy, the primary focus is on costs to help reduce costs. This
gives the organization the loyalty of its target customers and an advantage over the
companies that dominate the market. This tactic can improvise a customer base. (Bruijl,
H.T., 2018.)
 Differentiation – The main focus is to create products and services that also reflect market
differentiation through new components. This allows the Dimello company to offer several
different and superior flavours of quality and great tasting product coffee, which also helps
in achieving benefits such as a competitive advantage.
 Focus – This strategy is primarily company focused and tends to focus on the company in
the market. This method has a primary focus on launching and offering superior and
different products.
Boston Consultancy Group Matrix:
BCG matrix is essential approach this may assist the business enterprise to examine and perceive
the possibilities within the marketplace for increase. This could be very beneficial for the
organization as this additionally enables to examine the essential portfolio and make choice
primarily based totally at the commodities and offerings that (Chiu,, 2019, )employer will sale and
now no longer sale within the goal marketplace. The Dimello enterprise follows the BCG matrix
here:
 Dogs- This level within the approach, the employer's product is low and percentage within

the market is likewise low. Hence, that is very vital step that organization must pick out to
stop the goods which falls within the class that is below and do now no longer generate any
earnings or income for the employer and additionally will increase the glide of customers.
 Question Marks- This level displays that very last items have excessive call for however
the stocks are located low within the market. So, the employer want to make efforts at the
the ones matters that could assist the development the percentage within the marketplace
and enables in achievement of the employer.
 Cash Cows- This step covers the location wherein commodities and offerings will located
excessive within the marketplace however the increase is located low within the
marketplace. The employer wishes to place efforts and additionally want to formulate the
making plans and techniques which can hold the call for excessive of the goods within the
goal market.
 Stars- This step, the quadrant that covers the percentage marketplace and product increase
charge could be very within the marketplace, those regions wishes excessive efforts. So,
the business enterprise will hold the product to be able to fall beneath neath this line and this
could additionally assist to enhance the photo of the Dimello employer and this enables to
generate greater earnings margin and greater income within the enterprise of the
organization.
Pestle Analysis::
Dimello has discovered external factors that help the company's business environment make
comprehensive decisions that affect the company's growth. This is a great management tool that can
be used to develop strategic plans. (Achinas, et,al., 2019. )External factors that affect business
operations are described below:
 Political Factors – A company's market survival depends heavily on domestic political
stability and commercial restrictions. These include factors such as policies, tax rates,
government influences and trade restrictions. In the Dimello organization, profit margins
constantly fluctuate with high and low tax rates. The government also supports small
businesses.
 Economic Factors – A company's growth can affect many variables in the economy, such as

the labor market, inflation and interest rates. The company has a high GDP rate and high
turnover yielding high disposable income. Whenever inflation is high, input and material
costs come into play. Economies of scale are also undermined by economic instability.
 Social Factors – Companies are strongly influenced by social factors that are about to
change. These factors may result from changes in consumer income or consumer
preferences. This can be seen as a threat or an opportunity for Dimello's business. Dimello
and many consumers consider coffee to be unhealthy and harmful to health.
 Technological Factors – These days, all organizations, from small businesses to large
corporations, use the latest technology to keep their organizations up to date. This is very
important for companies to invest in technology tools that manage HR processes and
company payroll. This leaves less exposure to the technology that helps consumers pay for
their coffee via Wave.
 Legal Factors – The foundation of the organization is to operate within the legal framework
established by national judicial and local government agencies. It is a legal requirement for
employees that they are treated as humanely as possible and have a special working
environment. This is essential for his Dimello company, which offers peace of mind, chaos
at work, the right to medical care, and more.
 Environmental Factors – Nowadays, everyone is more likely to notice climate change and
this also counts among the new responsibilities of providing the best possible environment.
P2. Applying The Ansoff Matrix to evaluate growth opportunities.
The Ansoff Matrix helps companies analyze the strategies they are developing and growing
internally. An in-depth strategy that helps the company develop and grow in the market. The
Dimello model is described as follows.
 Market Penetration: In this method, the company works on the finished product in parallel
with the cutting edge market. This affects the growth of the company, the highest income of
the final products, moreover, these final products are always on the market, thus
successfully satisfying the desires of consumers. Dimello company tries to keep the price of
the final product low in order to (Coakley,.2021.)achieve market satisfaction.These
advantages are associated with the method and the low interest rate method so that the
company's business can increase its income. It can also be a very positive advantage and at

the right time, the disadvantage is the fees, which are low, but a company that reduces profit
margins.
 Market Development: Companies with other methods expand their business with more
profit margins. The company improves its business by leveraging new services and products
in new markets. This greatly helps consumers and increases Dimello's profit and higher
sales curve. The biggest advantage for the company is the development of market methods
to help Dimello's business find lower-risk consumers, the disadvantage is that early markets
are compared and may not yield desired results.
 Product Development: Company follow our methods to try to develop current end products
in the market today. This is the last method, but it helps DiMello to create and innovate new
things for consumers in the final product by appealing to more consumers. This is a way to
prevent it from happening. DiMello primarily used this method to add a unique element to
their goods and services. The advantage of this method is to increase the demand for the
goods within the company. The downside is that this new product is easily customized by
the consumer, but the company may lose loyal customers to the company.(Hejna, A., 2021.)
 Diversification – This is the last quadrant approach as the company focuses on launching
new end products in new markets. This also poses a great deal of risk to the business, but is
more likely to be profitable for the company as it begins developing new coffee flavors and
offering them in many new countries. Advantages of this process is Dimello's high profit
and turnover. The downfall on the other hand, is that the company has to deal with
significant risks and mismanagement in achieving its goals.
.The Dimello organization analyzes all strategies and the company also finds increasing
opportunities in the ongoing target market. The company therefore decides on a tactic to develop
new end products that help increase purchases in its target market, which also improves its
portfolio to protect its objectives of generating additional competitive advantage and revenue. It
also supports the development of production and profit.
TASK 2
P3. Explaining the potential sources of funds.
Financial re assets is are very essential for any enterprise. Without finance the enterprise can't work.
Although there are a few fees which can't be neglected via way of means of the enterprise. So, to
decorate and to run the operational sports in the enterprise in a green way the investment may be
very important for the organization. (Taherdoost, 2021. )So, this turns into very important to take

accurate choice in recognize to the re assets of price range with a view to have low hobby charge for
the business enterprise Dimello. The elements that has to ascertained as they makes use of the
enterprise at the precise time, the making of choice is related with funding like pay go back length
because the time is compute to regain the fee of funding. However, the enterprise must repair the
NPV this is internet buy fee. This may be alteration with the coins that is really well worth for
inflation. (Rajnoha, et.al, 2019.)The enterprise could be all determinants that permits them to make
proper choice for industrial strolling of the enterprise and additionally permits to spend extra money
to adopt the immoderate returns. These are few options for enterprise Dimello for growing the price
range for the enterprise are:
 Bank Loan- This is one of the maximum beneficial platform of money. The banking
organization gives the enterprise the mortgage and in change the company gives them the
collateral security. The hobby charge is essentially decided that company pays for a few
normal time interval. Also, financial institution wishes greater papers like formalities and
documentation which can be additionally finished through banking organization. Best
appropriate for SME organization and additionally the company wishes to discover the
proper establishments with a view to fulfils typical wishes.
Pros Cons
 Organizations can get to market quickly
and easily.
 The company gets the highest amount
in a short period of time.
 The organization wants to pay a little
interest.
 Not all small businesses and start-ups
have the right approach to fundraising.
Crowdfunding: Through this method, the company raises funds from various medium investments
from various capitalists. The company can run equity-based crowdfunding campaigns. This is also
an investment-based campaign that trades stocks and allows investors to earn stock trading profits.
(Sørensen, H.E., 2018. )
Pros Cons
 There will be a quick comeback of the
invested money in the organisation.
 The company may not deliver as
promised, which can lead to loss of
brand and public image.

 Do not take over the patent rights, your
company's ideas may be distorted and
stolen by other companies.
 Government grants and subsidies: This platform counts overall like state, federal and
local government authorities. This is the actual method of payment which can be transferred.
This also not include financial and technical support that can be revenue and loan distinction
and direct appropriation. The security is not kept or also giving back the money is taken but
also expected to use the funds for purposes that are stated within the company.
Pros Cons
 There is no need to return the amount
in the company.
 The SME companies can easily take the
benefits for the same.
 This process can take a lot of time
applicable to grants and the company
must also fill out paper regulations.
 The company must meet the criteria,
after which only loans are allowed.
For Dimello, the company must choose the bank financing option. This can be viewed as a
source of funding for a Dimello business as it allows banks to systematically pay constant interest at
specified times. This also helps financially support the company and protect the company. This
makes the competitive market ready to pay interest on a regular basis.
TASK 3
P4. Making a business plan for growth.
Overview: A business plan detailing Dimello's growth and profits can be reviewed in detail. This is
a UK small business. The company plans to expand its business. To do this, the company needs to
draw up an initial business plan.Aims and objectives are:
 This will expand the end product portfolio.
 As a result, the company will be in a dominant and competitive position. •
 This contributes approximately 5% to the organization's revenue growth over the next three
months.
About the Company: The organizers, Ioannis Iosifidis and Ms. Niovi Kallergi, plan to expand and

increase the profitability of Dimello's business by increasing its market share. We also focus on
speciality products such as ground coffee, coffee beans, consumer electronics and capsules. The
company also tracks sales of "ground coffee." The company's goal is a long-term business that gains
a strong position in the market by expanding its business in various sectors around the world.
 Market Analysis: This is very important to analyse the target market in which the company
intends to operate and assist the company's loyal customers in the most reliable and well-
built way. For this purpose, the STP approach serves his Dimello company.
 Segmentation: There are very specific approaches to targeting consumers. In this context,
Dimello adjusts consumer targets based on behavioural and psychographic segmentation.
They can make recommendations to consumers by understanding their preferences, ratings,
lifestyle, what they can consume, and more.
 Targeting: People who like to drink coffee like espresso.
 Positioning: The Dimello organization has loyalty and supreme benevolence in order to
provide targeted customers with an offer of high quality end product. The company focuses
on end products and amenities that target its audience, increasing sales and profitability. This
is very important to know and research competitors like Starbucks that exist in the market.
This company is a formidable competitor. Studying your competition can also help you
clarify your strategy and gain a competitive advantage. (Mazzarol, T, 2020.)It does this by
lowering prices and attracting more trusting consumers. Therefore, we change our services
and end products such as espresso his coffee daily so that consumers do not get bored with
the same product Dimello never compromises on the quality of its products. This is a big
advantage for Dimello Corporation.
 Funding - Generating funds to help the company conduct its business activities at all levels
is a must for the company. Bank loans are used by Dimello and are a good source of
funding for the company as well. This helps with Dimello payments and interest payments.
The company also plans to provide finished product quality to its target customers in the
market.
Market or Sales Strategy:

 Marketing strategy: Marketing strategy is the process of creating consumer awareness of
your brand and its contributions. Dimello Corporation promotes its products with real
marketing strategies. This is used in media such as social media. Examples of this media are
television, commercials, etc.
 Revenue Streams: Organizations have the opportunity to capture more profits and margins
on sales and revenue as ground coffee sales increase in the market.
 Sales Strategy: We focus on offering online ordering and take out to help improve returns
and revenue.
 Pricing Strategy: Dimello employs a penetration pricing strategy to capture consumer
attention. The company also attracts services offered at low prices during coffee.
 Marketing and Communication Strategy: A digital strategy is beneficial to a company as
it captures consumer attention.
Means-
 Research and Development: The company conducts research while researching
technology. The company also focuses on technology trends and emerging roadmaps.
Research and development focuses (Dawes, J., 2018. )on the latest market trends, which also
informs the company in time to innovate the final product.
 Human Resources and Operations: The company is very precise and observes its
employees through innovation and education, playing an important role in each final
product. Enterprise productivity focuses on the workforce. Dimello also utilizes an internal
departmental system.
Financial projections:

Main assumptions:
 The major product of sales and goods is Coffee to earn the profit.
 Within 30 days the suppliers will receive their salaries.
Profit and loss statement: