Planning for Growth: Analyzing Laynes Espresso Business Expansion

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This report details a growth plan for Laynes Espresso, a UK-based coffee shop SME, focusing on key considerations for evaluating growth opportunities and potential funding sources. It utilizes analytical frameworks such as Porter's Generic Strategies and PESTLE analysis to assess the competitive landscape and identify growth options. The report includes an Ansoff Matrix to explore market penetration, market development, and product development strategies. Furthermore, it estimates potential funding sources and outlines a comprehensive business plan with appropriate frameworks for expansion. The analysis also covers succession options and exit plans for the business, providing a holistic view of Laynes Espresso's strategic direction and future prospects in the competitive coffee shop market.
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Planning for growth
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Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................3
P1 Key consideration in terms of evaluation of growth as well as opportunity..........................3
M1 Options for growth with help of analytical framework with reference to competitive edge 5
P2 Ansoff growth matrix.............................................................................................................6
P3 Potential funding sources.......................................................................................................8
M2 Estimate potential sources of funding...................................................................................8
P4 Plan for business growth......................................................................................................10
M3 Detail business plan with appropriate framework...............................................................11
P5 Succession option.................................................................................................................13
M4 Succession option and exit plan..........................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15
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INTRODUCTION
The overall planning process is mainly concerned with the process of strategic business form
of activity. This will leads to convey most enable type of business ownership that will facilitate
proper plan or track through organic sort of revenue as well as growth of business. This is highly
beneficial for business expansion with owner of company that conduct with proper planning and
continue with optimum plan or track through overall relatively growth in relation to revenue.
This will help most of the business that handle proper allocation through limited sources in
respect of given situation with effect for adoption to ensure new changes in business industry in
order to drive digital face disturbance through differentiate efforts as compared to competitors.
However planning for growth is properly linked with appropriate game plan that will reach up to
growth along with target of organization (Barnett, 2017). The company has taken significant
effort step in growing business world in competitive market. The chosen SME company in UK
coffee shop that is Laynes Espresso that is associated with small medium enterprises that is
associated with one of the famous freshly roasted coffee beans, the organization is formed in
2011. The organisation extend in order to expand with overall business within country that is
related with taste in terms of unique preference of coffee. The report consist of
detail explanation in relation of Ansoff Matrix that will determine with growth along with porter
generic. The report includes several sources with appropriate fund along with proper planning
success planning through coffee shop.
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MAIN BODY
P1 Key consideration in terms of evaluation of growth as well as opportunity
Overall process of planning and growth that is linked with defining with proper evaluation
through variation that is much needed for appropriate achievement with aim and objective
(Birkin, 2017). It is the process within organizations with useful through balancing through break
among organization as per preference of company desire to achieve at some point of time. In this
SME company Layne Espresso decided to achieve proper development through expansion of
business within country specific. The optimum level of Higher competition with higher
advantage through framework that is associated in the below report
Porters generic
It is optimal level of strategy which is recognized in appropriate manner that will provide some
competitive edge within Market place. It will leads to conclude some kind of optimum strategies.
This strategy is most useful in Laynes Espresso in order to expand their strategy within the
business opportunity.
Porter generic strategy
This is one type of useful strategy that is most useful for proper determination that will outline
suitable direction in order to analyses competitive edge within company market place through
high competition and strengthen its ability to compete (Bonakdar, 2020). This consists of four
kinds of strategy which is absolutely reflect proper guidelines within company that reflects upon
better kind of competitive achievement through higher advantage as compared to other
competitors. The porter generic is most useful kind of implementation with their better kind of
facilities or strategy that will extended through business strategy that is most useful in contrast of
Layne Espresso.
Cost leadership- This strategy is relatively associated with product range of company
that deals in offerings along with service that will consist of some sort of minimum range
of category with reference to price (Bridge, 2018). This will deliver proper support along
with directions towards company vision so that they can target highest share in the
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competitive market. Layne Espresso is mainly connected with adopting strategy in order
to influence highest number of consumer so that they can easily deliver highest number
of quality in terms of quality at very low price as comparing with other higher
competitors.
Differentiation focus- It will conclude highest optimal strategy that is mainly
concentrated within company specific implementation with features of innovation as well
as creativity in terms of products and services. This will mainly targets biggest market
share capturing with high level of sales. Through adopting this strategy Here organization
will try to create range of product which is introduced completely in existing marketing.
Layne Espresso adopted this strategy in order to conclude more advantage within
competitive edge in order to attract more loyal type of consumer that will exceed the limit
of highly base of consumer.
Cost Focus- This is one of the highest level of strategy that is adopted by company which
is much concentrated on market of niche (Egidi and et.al., 2020). This will consider
overall products offerings with differentiation range of services through minimum range
of price. It will leads to introduce for expansion of company so that they can easily deal
with the proper analysis within the higher growth market. This will gets to satisfy overall
needs and desires within consumer base as they will deliver high quality service with
optimum quality with respect of coffee through lower price.
Differentiation focus- This is one type of effective approach which is used by Layne
Espresso, which cover higher level of offerings that is highly diversified range of
products to target consumer through offering like wise coffee snacks and sandwich. It
will facilitate organization with exclusive and unique range of offerings such as coffee
Shop (Crow, 2017). This will provide them long terms success and achievements of goals
so that they gets success in capturing market and connect with the loyal consumer.
Laynes Espresso is highly competitive as they implemented this type of strategy that
consists of exclusive range of offerings and services to target loyal base of consumer.
This will collect higher range of revenue that will enhance overall range of sales process
within environment of company.
Innovation - The business tries to invent their products and service by which they can
sustain in the marker for the longer time for effective run. They can create with new sort
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of services like for their consumers. They will also create new websites for having an
impact on the applications with new pictures and representation through which they
might easily power several sort of customer. So, as an efficient result they can easily
enhance their functions and will have an impact exist and also the new visitors and
customer.
Collaboration - Other business can easily organize with several other fields of the
business concern and the institution that will easily gain attention of all their consumers
and visitors. They might present the way of the merger and strategical comfort with many
big companies
M1 Options for growth with help of analytical framework with reference to competitive edge
PESTLE ANALYIS
The framework of analysis is highly associated with environment of macro force which
gets highly affected in performance of business in terms of Layne Espresso so that they can
achieve competitive edge while competing higher level of competition. This will facilitate
maximum level of expansion through higher growth. This will conduct some kind of several
differentiation forces that will lead to measures higher level of analysis which is mentioned
below in report
Political driver- This will repression optimum level of interruptions with the government
of UK as this will count of some kind of strict direction or guidelines tackle by the government
(Frenchman, 2017). This will reflect upon or deliver higher terms of opportunity that reflects
upon some development of business. Layne Espresso leads to connect with several kinds of
advantage as with reference of UK it will consider whole range of acceptability with level of
acceptability through certainness.
Economic driver- It includes some kind of numerous forces such as inflation, economic
situation, foreign exchange in context of Nation country. The overall value of economic within
within UK is count as more valuable or stable through highest in compare to within country. It
will conduct appropriate opportunity within country and company so that it will cover optimum
level of expansion within business.
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Social driver - It will aids in order to share higher share of believe along with standard of
society perspective (Gualini, 2018). This will deal Directly with proper effect in terms of Laynes
Espresso. In context of good taste and preference towards coffee that is highly choice of
consumer. Here the company highlights proper and good quality range of coffee. This will
determine proper help within the enterprise in order to influence easily familiar range of
consumer.
Technological driver - Here in the coffee shop it will determine proper focus with range
of advanced technology so that they can deliver facilities of wifi. This will leads to cover range
of charging with the effect of musical so that most of the consumer gets attracted with their high
appealing attractive policies through organization as it will become chance of free wifi. This will
cover most talented youth in terms of things that is attached mostly.
Legal driver - Here the legal driver is totally concern with force of legal aspect of
organization. It will leads to reflects general help in order to resolve some kind of safety as well
as security with purpose of consumer. This will cover following purpose through effect of coffee
shop that will counter updated version.
Environmental driver- This is much associated through application ecological conversion
along with protection through substance with material through coffee as well food. This is most
harmful within environment through purpose to server their respective consumer. Here the
sustainability within environment will conduct some kind of benefits in terms of food as well as
beverage kinds of shops.
P2 Ansoff growth matrix
In context to determine higher level of competitive edge in SME Layne Espresso as they
adopted model of Ansoff Matrix is utilize properly through the process that is mentioned bellow
in particular with proper understanding market.
Ansoff Matrix is relatively optimum policy through effective framework with emergent
flow of positive type of strategy by fulfilling overall objective in business for its expansion and
growth with respective point of time (Harrison, 2021). The model of Ansoff Matrix in order to
understand higher achievement to conclude approximately desire and proper demand in context
of consumer so that it will attain optimum range of prospect that will conduct with market to
raise sales at higher level. This is most useful model that is mentioned below report.
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Market penetration- In this approach here present model of product will leads to
conclude within current market aspects by sharing advance level of market share (Hersperger,
2020). This is most beneficial with reference of Layne Espresso as it will associated with
abundant kind of Market share. Here the overall quality of individual in terms of coffee so that it
will conduct conscious that is related with changed process so that they can deliver some unique
kind of offerings as compared to its competitors. Market penetration is termed as the plan of
actions that will concentrates on improving the sale of the goods and facilities in present set of
the market.
Market development- This approach is mainly connected with coffee shop as it deals in
product facility in existing market share which is associated with coffee industry. This is much
related with proper funds in terms of market consumer with range of several features in context
of settle down while entire change within Market requirements so that they can easily invest in
coffee shop. Layne Espresso company utilize the diverse form of advertisement task in order to
enlarge optimum share of market which conclude profit of organization. Market development
will termed as an another developmental plan of action that concentrates on entering new market
with present set of the goods and services.
Products development- It will assist range of coffee shop in terms of launching exclusive
products through in terms of unique process. This will make snacks, coffee so that they can
compete with competitor. This is most useful in terms of development so that it will ensure
proper assurance within consumer in order to retain long period of profit. This is more utilize in
Laynes Espresso so that they advance higher level to extend higher sales in company so that
more revenue will leads to enhance the overall benefits of competitive edge. The product
development plan of actions is get adapted when the business of management is ready to
promote new set of the goods by determining the taste and preference of consumers by which
they can offer services and goods as accordingly.
Diversification- It consist of overall representation through innovation along with unique
kind of range of products offerings in line of market segment (Hu, 2019). It will consider some
sort of risk associated with business which consists of higher level of portion with higher terms
of struggle that is highly gets affected company performance and strengthening position of
business.
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Here are some unique kind of approach is mentioned below that linked with Ansoff Matrix
where Laynes Espresso adopted the strategy of diversification kind of policies. Here in the
exclusive Market it will deliver some kind of positive types of change in context of coffee
business as this will represent some more difficulties as well as more profit in context of coffee
shop business. This is most likely place for the individual by adopting some enormous kind of
interest with reference of coffee and snacks. This is really helpful in context of shop so that they
will reach its optimum tag and reputation with broader stage so that they can easily overall
growth and expansion within coffee industry and shops.
P3 Potential funding sources
The overall source of funding will be very great full in order to raise the capital level in
context of coffee shop that act as very beneficial for industry of coffee shop (Lambert, 2017).
This will contribute more for higher achievement of company with reference of company goal.
Layne Espresso has highly required some amount such as $ 250000 that is essential for starting
overall business in several countries as a result it will had more funds for such investment with
respect of company. The shop of coffee does not contains some proper requirement so that they
will conclude raising of funds in context of several sources so that proper planning leads to
cover growth and development within company. Here the source is highly connected within shop
of coffee for their betterment that is mentioned bellow in this report
Inside sources - This type of fund is developed by the company on its own so that they
can easily achieve higher number of selling assets through proper finding of sources so that they
can easily Focus in order to raise more money in highly market level. This is highly associated
with day as well as night type of shifts.
Outside Sources- Here it gained high amount of coffee shop that is much connected in
terms of external type of funds. It will linked with several kinds of factors just like debentures,
crowd type of funding, equity kind of shares (Lee, 2020). Here the most of the source is much
linked with optimum assistant that will leads to extend optimum coffee shop with context of
several types of companies.
Public deposits -
The fund is directly upraised by the business of management by public and the suitable
set of the rate of interest on public deposition that are high. The company will invite the public
deposit for period of time of three years and it is organized by Bank.
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Advantages -
The procedure of acquiring public deposits is simple that will not include any constrictive
condition in the business of management.
Disadvantages -
The drawbacks of public deposits is that it is undependable source of finance as because
public will not react suitably when administration may need monetary system.
Short term -
Trade Credit -
Trade credit is used by the company in respect to raise the stock for short term of
duration. The period and magnitude of credit calculate on the fiscal position, previous record of
cost and goodwill of the management.
Advantages -
Trade credit is easy and favourable source of finances and it also advance the sale of
management.
Disadvantages -
The drawbacks of trade credit is that the management might raise limited fund by trade
credit.
M2 Estimate potential sources of funding
Here are some kind of sources is much consern with proper use that is adopted in contrast
of Laynes Espresso that is mentioned below
Bank loan- This will consider some amount that will bring from bank with reference of
coffee shop as a result they will easily cover paid kind of owner in context of this coffee shop at
some specific time period (Li, 2020). This is most common type of sources that will reflect upon
each individual market segment. The overall availability with reference of period at specific
time frame. This is most useful way so that it will conduct some kind of common source that
involve both long and short period of time within company Laynes Espresso through their rate
of interest rate.
Advantage Disadvantage
Laynes Espresso will kinds of huge Laynes Espresso is some kind of
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terms of benefits in terms of bank
loan as it will deliver high amount
that is provided by the bank so as to
become more compensated within
same period of time frame with
proper planning and level of
interest.
Here the shop of coffee which not
conclude any types of equity in
terms of loan with reference to
bank. Venture capital with
reference to angel investor that is
highly needed with proper payment
in terms of banks to raise the
interest on specific time period.
difficult ones so as to provide
proper range of loan that is highly
delivered with proper asset and
associated with bank takings with
the proper terms of security paper
with proper form of assurance
through money. This will conduct
custody with reference custody
coffee shop so that they are enough
capable of payment the overall
return (Meck, 2020).
Receiving proper loan of bank is
highly extremely concerned with
banking time. This covers full
require through extensive
paperwork, it is much connected
with quite complicated but this is
not that much quick process with
highly comparison to various kind
of process.
Angle funding- It is much concentrated with optimum sources that is readily obtained in
form of NGO along with investor so that angle financing (Lynch, 2020). It consist of some
family relatives as well as friends which are much interested in order to undertake interest. It will
enlarge updated business due to emotional kind of attachment through the owner of coffee.
Advantage Disadvantage
Laynes Espresso are linked with
expansion with its advantage
Laynes Espresso are getting
drawback in terms of angle which
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through remain much capable in
order to connect some kind of
information with proper trust
towards the investor of coffee shop.
The greatest benefit in terms of
business through angel investor in
order to receive some kind funds
that linked with risk. This will
consider some small loan of
business. Here the business will not
pay back through angle investor
funding that are receiving with
proper exchange of equity
financing.
fund the overall stocks that is
separately divided towards sales and
return within coffee business shop.
Basic disadvantage of this investor
of angle that is occurred in business.
That is running business with
appropriate part of business with
part of income and business that has
been sold with image and
preference of consumer base.
P4 Plan for business growth
Overall planning growth of business context is much associated with activity through
strategic process. Owner are much capable will track plan for further growth with proper
allocation that will concentrated with optimum efforts of chance to manage business level
(Mobin, 2017). Through digital disruption will leads to convey some differentiated as compare to
competitors. It may consist of written document that count of overall growth by applying useful
information. Some consideration with reference to specific objective will leads to convey detail
plan of business growth.
Short-term goal: Laynes Espresso is working through their smart objective to
accomplish huge platform while serving high quality through coffee within base of
consumer that build overall trust under coffee shop. This will focus upon proper
implementation of new technology.
Long term goals: Laynes Espresso will convey their appropriate plan with mission of
seize through attraction to build loyal consumer with high quality.
Financial Plan
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