Kaffiene Cafe: Business Plan for Expansion and Funding Strategies

This report provides a comprehensive analysis of Kaffiene Cafe, a small cafe chain in the UK, focusing on its growth opportunities and expansion strategies. The report begins with an introduction outlining the current market rivalry and the importance of strategic planning for business success. Task 1 explores the external factors influencing Kaffiene Cafe's operations, including political, economic, social, technological, legal, and environmental factors. It then evaluates growth opportunities using the Ansoff Matrix, focusing on market penetration, product development, market development, and diversification strategies. Task 2 delves into the sources of funding available for small businesses, such as bank loans and personal savings, discussing their advantages and disadvantages. Task 3 presents a business plan for Kaffiene Cafe's expansion, outlining key strategies and objectives. Finally, Task 4 examines exit and succession options for small businesses, considering their advantages and disadvantages. The report concludes by summarizing the key findings and recommendations for Kaffiene Cafe's sustainable growth and success in the competitive market.

UNIT 42

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1) Consideration to evaluate growth opportunities within an organization context...............................3
P2) Evaluate growth opportunities with the implication of Ansoff Matrix..............................................5
TASK 2.......................................................................................................................................................7
P3) Discuss sources of funding for small business entities......................................................................7
TASK 3.......................................................................................................................................................8
Business plan...........................................................................................................................................8
TASK 4.....................................................................................................................................................11
P5) Discuss exit and succession options for small business along with advantages and disadvantages 11
CONCLUSION.............................................................................................................................................13
REFRENCES............................................................................................................................................14

INTRODUCTION
The current contemporary world there is extreme rivalry available in the market area that creates
it more crucial too make suitable plan of action in order to attain success as well as growth in the
upcoming period of time. There are several potential opportunity which are there in the market
area for the organisations like small enlarge but this is also very much crucial for the managers
or the leaders of the business in order to detect the score of development and make the required
techniques as well as strategies in accordance to grab those opportunities effectively as well as
efficiently (Chen, and Wu, 2022). The following report is entirely based on the organization
kaffiene café That is basically situated in the different locations of the United Kingdom and it is
a small café outlet which focuses offering different beverages of coffee and various more in
accordance to accomplish the requirements of their consumer base in the market area.
Management of the respective organization of this segment after getting inspired with the coffee
culture of the New Zealand as well as Australia and the organization is currently functioning in
the 2 places in London. In addition to this management of the effective organization is now
focusing to scale the operations of their business in accordance to gain more income as well as
large profit margin also. Moreover to this the following report will cover about the methods in
order to determine the several opportunities of growth together with the application of different
frameworks. In addition to this several different source of investment together with the several
advantages as well as limitation will also be covered in the following report. Also a specific
business plan in order to expand the operations of the business will be made in this report as well
with having several various options of business winding. Furthermore planning of the growth is
crucially essential in case of facing the upcoming obstacles as well as uncertainties in an
effective as well as efficient way.
TASK 1
P1) Consideration to evaluate growth opportunities within an organization context
This has been evaluated that the attainment of the success is basically the main goal of all the
commercial businesses in the market area and in order to do this management of the respective
organization is required to detect several potential growth opportunities which are there in the

market area (Feng, Wu, and Zhang, 2022). In relation to the kaffiene café external analysis in
accordance to detect the probable opportunities which are there in the external atmosphere in
which the respective organization is functioning is described below in brief.
Political factors: This element is linked with the government policies, political stability,
regulation as well as rules that are imposed by the legal authorities which has influence over the
functioning of the business. In addition to this with modification in the current political party and
government as well as policies which are imposed in the current laws as per that commercial
business also need to alter their methods as well as strategies and also policies in accordance to it
only. In context to the kaffiene Café management is also getting influenced with the current
condition of the political stability of the United Kingdom. This has the optimistic impact on the
functioning of the organization because the stability of the political condition of the United
Kingdom he is very much table hence this is very convenient for the commercial business in
order to expand the operations of their business ineffective as well as efficient way (Lauermann,
and Temenos, 2022).
Economical factors: It involves several different components which are cost, demand, interest
rate inflation rate and various more. At the time when starting a new business or functioning
existing one this is crucial to understand the economic stability of the nation in the effective way.
In relation to the respective organization management or extremely influence with the existing
condition of economy in which the buying power of the consumer has been declined down
Social factors: It refers to the characteristics, personal trades of the consumer in accordance to
function the commercial business in the effective way. This also involves several components
which are behaviour of the consumer, buying condition of the customer, personality that
basically impacts the operations of the business in the crucial way. In case of the organization
kaffiene café management required to alter their approaches of functioning in accordance to the
buying habit of the consumers in the marketplace. So in accordance to the prevailing
circumstances management are also providing the services of takeaway as well as home delivery
in order to meet the needs and preferences of the consumers in an effective as well as efficient
way.

Technological factors: These elements are linked to the technological advancement, innovation
in the business as well as creativity. In current situation adaptation of the technology is the very
crucial element of the commercial businesses that has the essential part in the growth of the
organization also in giving the edge to the organization over their competition (Li, Wu, and
Zhang, 2022). In case of the organization kaffiene café management utilizes several advance
vending machines and tools in order to serve their consumers in a suitable way possible. In
addition to this organization are also needed to opt several different latest techniques in order to
grow and success in the marketplace.
Legal factors: This factor involves several different regulations as well as rules that are
particularly imposed by the legal authorities of the particular nation show that commercial
business can function in the effective and efficient way (MacLachlan, and Gong, 2022). This is
also linked with the legal model that requires to abide by all the commercial businesses in the
marketplace. In context to the kaffiene café management are also getting influenced with the
legal imposed rules and policies and in order to overcome that they need to follow all the laws
and regulations that are linked to the hey safety at the workplace, protection of the consumer and
various more for functioning the operations of the organization in the legal as well as systematic
way.
Environmental factors: This is basically linked with the opting those activities that are
beneficial for the environment. This is also crucial in order to make the optimistic goodwill
among the target consumer base of the organization. In order to do this commercial business
need to take required measures for the protection of the environment and in relation to the
respective organization management focus on following all the protocols for the betterment of
the environment in order to minimise the pollution as well as offering safe and clean atmosphere
to their consumer base.
P2) Evaluate growth opportunities with the implication of Ansoff Matrix
Market penetration: This refers to the functioning of the business in the existing marketplace
with selling current services and products to their consumer base. There is need in order to
concentrate in market penetration on several elements through which it can be more convenient
in order to get the attention of the consumer base of the respective organization. In relation to the
company Management can implement this technique through providing goods to their specific

consumer base at the lower rates (Murray, 2022). Moreover to this management can also focus in
promoting their offering in accordance to be suitably execute the strategy of market penetration.
In addition to this management can conveniently attract more and more consumer with the
assistance of this technique which will provide the organization and support in having the edge
over their competitors in the market area in an effective as well as efficient way.
Product development: This strategy refers to the development of a new product or modifying the
existing product in order to meet the preferences and desires of the current consumer base of the
organization. This is not at all easy in order to make a new service or a product and in order to do
this management of the respective organization need to conduct in depth research to modify the
existing product or launch a new world product in the market area. In relation to the respective
organization management can also focus in offering few of the new goods to their consumer
ways which are organic and herbal coffee. Moreover to this management can also alter their
current range of goods through increasing some new different flavors in it. As this will provide
assistance to the commercial business in accordance to increase the existing level of consumer
base that will basically increase the level of sales revenue which will lead to enhance
profitability of the organization (Wang, Zhang, and Wu, 2022).
Market development: This strategy states to target new group of consumer base into the new
market area through providing them existing good in order to do this it is needed to of the new
specific target market for the organization and in accordance to that management need to make
specific techniques and strategies for time take new consumer base in an effective as well as
efficient way. In case of the organization management is functioning in around 2 places in
London and they can also scale the operations of their business in order to increase their sales
avenue which will assist them in increasing their stability as well as success in the new market
area
Diversification: This is one of the most risky strategy of this framework in which the market as
well as offered products of the organization are new. So it comes with the enhanced level of risk
regarding the failure with this strategy but this also offers crucial growth opportunity to the
organization as well. In relation to the respective organization management can also opt this type
of strategy as this is risky still it is one of the most profitable strategies as well. In order to do this

management of the respective organization can focus in offering new segment of the product to
there new consumer base (Wang, 2022).
From the above discussion this has been evaluated that market development can be one of
the effective technique for the respective organization as this will assist them to increasing their
sales revenue which will basically lead to the long term sustainability of the organization in an
effective and efficient way. Moreover to this respective organization will also be getting a
suitable chance in order to expand the existing market area that will assist them in gaining more
loyal consumers.
TASK 2
P3) Discuss sources of funding for small business entities
Bank Loan: This is known to be the capital that is given by the financial institute or bank for the
specific period of time on specific rate of interest on this amount. In relation to the respective
organization management can also attain sufficient investment or capital fund by the loans which
are offered by the banks in order to meet the needs as well as requirements of the expansion of
the business (Wenjie, 2022).
 Advantages: Loans that are offered by the banks for the expansion of the business Are at
the affordable rate of interest.
 Disadvantages: This is one of the time consuming method in order to get capital as there
is need for the major documentation or paperwork that is very time taking.
Personal savings: In this owner of the business users it’s personal savings in order to meet the
requirements of the organization. In addition to this the respective organization is the
independent café that is basically owned by the single individuals so the owner can utilise its
personal saving in order to scale the operations of the business in to the Newmarket area.
 Advantages: There is no burden to return or provide any type of interest because the
capital belongs to the owner itself.
 Disadvantages: One of the main limitation of this type of source is that this is linked to
the limited investment and because of this it is not possible in order to meet with extreme
large needs of the capital investment (Wu, and Zhang, 2022)

Family and friends: This is known to one of the method in order to attain required capital in
which the owner of the business can ask for money from their family or friends at zero to low
rate of interest. For the expansion of the operations of the business owner of the respective
organization can also ask for the funds from it’s family or friends for the specific period of time.
 Advantages: It is one of the appropriate and fastest method for the small organization in
which there is no need to provide any type of security as leverage and also paying almost
zero rate of interest in this specific period of time.
 Disadvantages: This process is not the authentic way and it also involves the other
parties which have the major influence on the functioning of the business as well..
TASK 3
Business plan
Business plan is known to be the set of various different techniques and strategies in accordance
to accomplish the long term goals as well as objectives within a specific time (Wu, 2022).
Executive Summary: Kaffiene Is a small coffee café that is situated in United Kingdom that
basically deals in different segment of the coffee as well as beverages and the organization is
specifically focusing in spending their operations of the business at the broad level.
Overview of company: Respective organization a small coffee café that has been launched on the
foundation of only culture of coffee which is prevailing in New Zealand and Australia.
Mission and vision of company: The mission of the respective organization is to get the loyalty
as well as trust of their consumer base for success and sustainability in the market area for the
long period of time. Moreover to this vision of the respective organization is to earn large
amount of margin of profit in order to establish the position in the market.
Objective:
 The main objective of the organization is to enhance the sales by 30% tell the year 2023.
 To scale the operation of the business in several different nations (Wu, Pan, and Chen,
2022).

Market Analysis:
STP approach:
 Segmentation: In context to the respective organization management utilizes
demographic segment in which they divide their consumer waste into various segment on
the foundation of several elements which are income level, age and many more.
 Targeting: Choosing the targeting group of consumer base belongs to this category and
for the respective organization there mean consumer target is youth and teenagers.
 Positioning: Management utilizes several techniques of promotion and they also offers
sufficient rewards to their consumer base for establishing optimistic positioning in the
market area (Wu, Zhang, and Liu, 2022).
Situational analysis:
Strengths Weaknesses
 Goodwill of the organization is known
to be their biggest strength
 Lack of resources act as the major
weakness of the respective
organization
Opportunities Threats
Management can scale the operations of the
organization into several different parts of the
world which can give the major potential
opportunity in order to sustain and attain
success in the market area (Xu, and Ji, 2022)
.
 Competition is known to be the
biggest threat of the respective
organization.
Financial activities:

Marketing budget
Particulars 1st year 2nd year 3rd year 4th
year 5th year
Initial money 50000 9000 24000 30000 15000
Investment 21000 24000 30000 25000
Total 50000 30000 48000 60000 40000
Marketing
expenditures
Advertisement 1000 8000 3000 8000 5000
Sales promotion 2000 6000 3000 7000 5000
Direct marketing 9000 8000 3000 5000 8000
Total 12000 22000 9000 20000 18000
Available balance 38000 8000 39000 40000 22000
Risk plan: Management required to manage sufficient investment in order to meet
uncertainty in an efficient as well as effective way.

TASK 4
P5) Discuss exit and succession options for small business along with advantages and
disadvantages
Exit options
At the time when commercial businesses encounters enhanced level of laws then this is one of
the most suitable option in order to close the operations of the business. Few of the methods for
exiting the operations of the business are described below in brief.
Winding up: This type of closing of the business refers to the owner of the organization sells the
resources an asset of the organization as well as paying the liabilities of the organization. In
addition to this remaining amount are divided among the several shareholders of the
organization. In relation to the respective organization Kaffiene Café management can adopt this
type of option if they get field in expanding their operations of the business and they desires to
exit from it (Xu, and Huang, 2022).
 Advantages: This is one of the most suitable manner through which a commercial
business can conveniently close the operations of the business without having any type of
legal consequences and every party that belongs to this organization gets their own
deserving share.
 Disadvantages: In this owner of the business does not have any type of control over the
operations of the business as in this an individual is appointed by the top level authorities
in order to take the major charge of process of winding up. Moreover to this commercial
business can also let go up there competent as well as talented workers from the
organization.
Selling in open market: In this type of the closing of the business refers to the management
as selling the stakes of their business in the open market that commonly is done by the
assistance of auction. In it this is very much possible to attain sufficient amount of capital
because of several rich and wealthy people basically take the part in the process of auction so
this is possible for the organization in order to sell the organization at higher rate (Zhang,
2022).

 Advantages: In this type of the closing operations and functions of the commercial
business function in the similar way and it basically does not have the major influence
over the current reputation of the company.
 Disadvantages: Here owner of the business loses all the authority as the commercial
business is given to the new person which is the now new owner of the organization. This
basically also hampers the existing operations of the business.
Succession options:
Merger and acquisition: It refers to the acquisition and merging of the organization with
other organization in order to enlarge and expand the operations of the organization. At the
time of merger all the organization focus in merging the operations together in order to create
a new organization in accordance to attain larger market area which will lead to their long
term success as well as sustainability in the market area for the long period of time (Zhang,
and Wu, 2022)
 Advantages: This provide assistance to the organization in increasing the existing share
of market area for both the organization that are selling another one and this also assist
them in increasing their goodwill in the market place among the consumer base of the
organization.
 Disadvantages: Several of the time merger can modify the reputation of the organization
in the market area and moreover to this several of the individual also get unemployed
from the job at the time of 2 organizations merging among each other.
From the above topic this has been determined that merger and acquisition is known to be one of
the best suitable option which can be adopted by the respective organization as this will provide
assistance to the organization in order to attain success and sustainability in the marketplace. In
addition to this the respective organization is the small company and with the assistance of the
other large firm there is the more possibility of success and growth of the organization.