Entrepreneurial Research Project on Growth Strategies for Muffin Break

This project presents a comprehensive analysis of growth strategies for Muffin Break, a franchise business operating in multiple countries. The research begins with an internal analysis, including a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The project then delves into an environmental analysis, examining global, regional, and competitive factors within the coffee industry. It explores the opportunities for Muffin Break's expansion, particularly in the United Kingdom. The research incorporates a detailed methodology, outlining the research type, philosophy, approach, design, data collection methods, and ethical considerations. A thorough literature review explores various growth strategies applicable to business organizations, followed by a proposal for growth strategies, including resource-led approaches and partnerships/alliances, aiming to provide Muffin Break with actionable recommendations for international expansion and increased market share. The project concludes with a synthesis of findings and recommendations.

MKT4007 Entrepreneur Research
Project

Table of Contents
INTRODUCTION...........................................................................................................................................3
ORGANIZATION IDENTIFICATION................................................................................................................3
Internal analysis.......................................................................................................................................3
Environmental analysis............................................................................................................................4
Analyzing Opportunities..........................................................................................................................5
Strategic analysis.....................................................................................................................................5
DATA COLLECTION AND ANALYSIS..............................................................................................................6
Research type..........................................................................................................................................6
Research philosophy................................................................................................................................6
Research approach...................................................................................................................................6
Research Design......................................................................................................................................7
Data collection Methods..........................................................................................................................7
Ethical consideration...............................................................................................................................7
Data analysis...........................................................................................................................................8
LITERATURE REVIEW....................................................................................................................................9
Notion of growth strategies for business organisation.............................................................................9
Several growth strategies that can be adopted by Muffin Break while operating at international scale. 11
Several ways through which growth strategies can be implemented at workplace with minimal barriers
...............................................................................................................................................................13
GROWTH STRATEGY PROPOSAL................................................................................................................15
Resources led approaches......................................................................................................................15
Partnership and Alliances......................................................................................................................16
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................18

INTRODUCTION
Growth strategy is an action plan that permits business to attain high market share that
presently have. The growth strategies are helpful for business in enhance the sales as well as
business. This is one in which the management plan to attain the growth of business in the
different fields such as marketing, financial resources, manufacturing and others. The growth
strategy is helpful for the business to expand at the international level. The growth can be
attained through the practices such as adding the new locations, expanding product line and
investing in the acquisition customer (Bannò and Trento, 2016). Muffin Break is franchise
business of the Foodco which operates the small cafe shops throughout New Zealand, Australia,
India and United Kingdom. The growth of Muffin Break has come as partnership result with the
franchisee that trusts on company and brand.
ORGANIZATION IDENTIFICATION
Internal analysis
Internal analysis is exploration of competency of company, competitive viability and cost
position at marketplace. Conducting internal analysis incorporates the measures which give the
useful information on strength, weakness, threats and opportunities. For the internal analysis,
there has been SWOT analysis conducted. SWOT is associated with internal influences.
Strengths and weaknesses fall under category of the internal variables, both of which they can
manage fairly. Opportunities and threats are come under the umbrella of external factors and find
issues for which can do little (Beamish and Lupton, 2016). The two types combine to give a
detailed view of the role of business model. SWOT Analysis of Muffin Break given below:
Strengths
 This is a well established and the brand
recognition company.
 The Muffin Break has the strong brand
image that related with the quality of
coffee as well as the excellent customer
services.
 This possesses potential for the new as
Weaknesses
 Muffin Break needs wider spread of the
consumer base.
 It has the limited presence at the
various locations.
 The large number of competitors
available at market place.

well as innovative operations of store.
Opportunities
 It has the opportunities to expand its
market in the emerging economies.
 Muffin Break can enhance its
knowledge in the new advancement in
technology to use in the stores.
 It has the opportunity for the strategic
growth initiatives.
Threats
 High competition.
 The recession in economy impact on
the spending of customers.
Environmental analysis
Global, Regional and emerging markets- Coffee is one of the best-traded agricultural
goods in world, exporting for 2017 alone 70 percent of all coffee production, valued at USD 19
billion. 1.2 Industry retail demand amounted to 83 billion dollars during the same period and
generated 125 million jobs. Coffee is significant factor in society's daily life, and a source of
caffeine is best in the world. The global coffee industry is growing substantially through the
manufacture of goods almost exclusively in developed countries. More than 70 per cent of
clients enjoy home-crafted coffee, according to a study by the National Coffee Association.
Customers were slowly switching from cocktails to coffee beverages (Bianchi and Mathews,
2016).
Socio cultural influences- In this present time, preferences and tastes of consumers are
changing on rapid basis. Stereotypes that say Britain generally drinks strong pots of coffee or
brown pints in local pub, but 70 million cups of coffee beverages in the UK say something
different every day. Cursory look down the local road now reveals the nation addicted to coffee.
Across various cafes, commuters are taken care of to avoid exhaustion across espressos and
soup-ball lattes. The impact of coffee was enhanced by the advent of the digital era when
computers, mobile phones and tablets freed several workers from the office. Café stores filled
holes when recession struck and demolished the supermarket lane. Coffee shops are a convenient
place to socialize and interact together through WiFi.

Environmental & Competitive Analysis- The business, as well known brands exist
across United Kingdom and other countries is challenged by rivalry companies as per Porter's
Five Forces. The competitors of Muffin Break are Caffè Nero and Costa Coffee (Buckley, 2016).
Analyzing Opportunities
United Kingdom is turning coffee quaffers from nation of the tea drinkers. Many sources
say that UK consumes about 70 million java copies every day and that there is no indication that
it thirsts for quality beans that die. The shopping malls, the petrol stations, the touristic sites and
other crowded areas can be seen in coffee shops. It leads to inference that coffee shops are a
lucrative start-up sector. For businessmen who wanted to start a coffee shop, one of best options
is to purchase a franchise of the popular coffee company. United Kingdom is turning coffee
quaffers from nation of the tea drinkers (Buckley, Doh and Benischke, 2017). Many sources say
that UK consumes about 70 million java copies every day and that there is no indication that it
thirsts for quality beans that drop. The shopping malls, the petrol stations, the touristic sites and
other crowded areas can be seen in coffee shops. It leads to inference that coffee shops are a
lucrative start-up sector. For businessmen who wanted to start a coffee shop, one of best options
is to purchase a franchise of the popular coffee company.
Strategic analysis
The coffee shop faces risk of a constantly evolving customer demand along with a shift in
understanding in terms of getting strategic analysis. As the trend of coffee increasing in the
country rise, more international players enter the market that is increasingly creating a
competitive level. The coffee shop is often faced with the possibility of taste, competition and
expectations in a market setting. The business does have a moral and environmental
responsibility to carry out the company's corporate as well as sustainable management. The
organization will protect consumer confidentiality along with culture.

DATA COLLECTION AND ANALYSIS
Research methodology seems to be the specific mechanism by which research knowledge
may be evaluated using instruments and techniques. This is based on the theoretical context
associated with the specific application of assumptions in science. Research to outline the several
growth strategies that can be adopted by businesses while expanding at international scale has
been carried out. Different methodologies are mention below:
Research type
This is focused on types and essence of analysis and action that is used in study to
classify the facts and data and interpret them. There are two main types of quantitative research
and qualitative research in the study form category. The researchers used qualitative analysis
focused on people's preferences and non-numerical elements in this research study. This form
has helped to define several growth strategies that can be adopted by businesses while expanding
at international scale. The knowledge is focused on theoretical aspects and events as qualitative
analysis is most reliable, as the growth strategies to expanding business at international scale
(Cardoza and et. al., 2016).
Research philosophy
This is the essential part of the methodology for analysis as it assumes that the data is
obtained and analysed on the particular event. In particular, the research phenomena are
concerned with the growth of knowledge, the source and existence. This is the easiest way to
gather and evaluate the knowledge related to the research project. The study in this report
describes various elements of interconnected human interest and truth by means of the method
and consciousness by using interpretivism 's philosophy. It provided the researcher a deeper
understanding about the growth strategies.
Research approach
There is a strategy and process for the various assumptions in the research project. The
approach has been implemented based on the behaviour and nature of research issue. The
method is divided into two kinds: deductive methods and the methodology of
inductive approach. The investigator has used the inductive approach of research in order to
identify existing theories along with the philosophy of interpretivism that involve various human
elements (Chandoo and Ngui, 2019).

The aim of suggesting strategies for maintaining the organization can be suggested with
an inductive approach and an interpretativism philosophy. As this approach begins with
the observation and hypothesis for end result of research and observation, the inductive research
approach is to conduct this research project. This helps to define the trends of the ideas to follow
from the sequence of hypotheses.
Research Design
This may be defined as the system of methods or techniques selected by researchers. This
determines the conceptual relationship among the various research project components or
element. The work designs are two types such as exploratory and conclusive. Mainly the
investigator investigated the basic aspect of the study on its intent and objectives through
exploratory design. The use of such a research design does not yield consistency but did allow
the researcher to evaluate the answers to the question in order to achieve the study objective. By
using this research method, several growth strategies that can be adopted by businesses while
expanding at international scale has have been properly analyzed (Cuervo-Cazurra, 2016).
Data collection Methods
This is way to gather the necessary data from different sources or surveys in order to find
responses check the hypothesis and analyze the findings for the research question. This is
systematic methodology for the processing and analysis of information obtained from
different sources, in order to examine the exact insights into the issue using established standard
methods. Most of the study data collection methods consist of two separate forms such as
primary and secondary data. In the primary method, information is gathered via questionnaires
and interviews, in secondary data, but in journals, reports and the internet. The secondary data
has been used to collected and analyzed based on a number of papers, journals and articles. The
data were analyzed more closely from the data collected on different growth related strategies.
For this study, the investigator used secondary method of data collection to collect information
from internet and journal papers.
Ethical consideration
The ethical emphasis is on common problems and the fundamental principles which the
investigator should understand and take into account as time of study competition. It contains
common ethical aspects needed for the accuracy and effectiveness of problem statement. The

ethical problems to be addressed when carrying out the study should be observed and preserved
by research participants. There must be a reach study of respect for the integrity of every
individual. Through maintaining privacy and security of study participants, an investigator will
preserve the credibility of the report. The investigator will preserve the level of confidentiality
through the provision of access. Transparency and consistency should be given in time for report
to be completed with fraudulent practices (Cherunilam, 2020).
Data analysis
A secondary analysis was made for data analysis of the specific research study. The
secondary study includes a re-examination of the qualitative data that different researchers have
obtained for other research to deal with the issue of new research.

LITERATURE REVIEW
The purpose of literature review is to present the specific reader, and have a strong
understanding of, the big published work on, or Broad field problem. This work can be
performed in any medium and online sources included. It could be’s work or one of report's
introductory pieces. The assessment is driven in the latter cases in specific through research
goals or the author argued and offers the context for the problem or study further research by
researchers. For collecting information in the literature review, there have been secondary
sources considered like books, articles, internet sources, journals and others. This should be
noted that analysis should not necessarily be a summary of what. Some have been released, but
will take the form of a description. A critical discussion consist an exploration of various claims,
hypotheses and knowledge achievements. The related published research should be summarized
and evaluated in accordance with own purpose and reasoning every time.
Notion of growth strategies for business organisation
Wendel Clark (2020) stated that Growth strategy is strategy for winning rising market
shares, such that company continues to expand. The plan for growth helps businesses to grow.
Practices like the introduction of new sites, consumer acquisition investments or an expansion of
a product line may achieve growth. The sector and target audience of a company determine what
growth strategies they should select. The strategy of growth falls under framework of
the strategic planning to identify the potential growth plan for a business. Companies use this
tactic to ensure that more customers learn their brand and thrive in business. The most essential
set of the strategies to build and manage the development of growth in company are business
growth strategies. With businesses growing and developing, business owners still have an
exciting chance to diversify the markets, heading into unparalleled region (Durand, Grant and
Madsen, 2017). With any company it extends to enter foreign markets among most aggressive
growth prospects. Such international expansion can be a tremendous opportunity for a business
to profit in many ways. Companies within a particular region are increasing and expanding to
reach every region beyond the boundary. The international expansion of industry allows this firm
to enter new markets outside of country's reach. This topic forms part of a series that integrates
the competitive advantage with designing and executing company growth strategies and market
development strategies. This strategy is adopted as organizations extend dramatically the reach

of their consumer groups, customer services and emerging solutions either individually or in
conjunction with one another. These approaches require significant increase in performance
goals. In context to Muffin Break, The multi-store holding is characteristic of UK franchise
network Muffin Break. One interesting point is that British Asian businesses are majority of
multi-store franchises. These guys are one of the business people that can get the most centred.
The growth of Muffin Break can, at least to some extent, be due t o the USP, which offers only
a small range of bakery items that are produced by hand every day at home. Their wider family
and their community strongly support them in increasing a portfolio of shops around the world.
However, the consistency of its specialty coffee has made it popular.
According to Denny (2020) Investment and capacity building in companies is for
economies of scale. Firm is planning to expand to new markets through efficient exploitation of
their resources and the development of reliable revenue opportunities. In view of this, both in
the developed countries with low demand and in developing countries with rising demand, there
are numerous opportunities. Companies will reflect on and prepare for the implementation of
their global growth strategy. If a company is dependent on current or new brands to expand in
existing or new markets, global growth strategy can be classified. This market expansion strategy
is designed for businesses with broad product lines that can satisfy diverse customer demands in
various countries. Such strategy allows a business to be able to market a narrow line
internationally with competitive advantage. Global expansion allows companies to grow
audiences and create credibility essential actions for becoming world leader. This is good chance
to advertise the business as an international brand, not just highly successful star. Creating global
presence means making deals and reasons to trust business more open to customers. If potential
consumers are attracted that they are operating in a variety of markets, they may see an existing
business that sells goods or services in different markets. On the other hand, International
expansion provides opportunities for diversifying the investment field of business. As a foreign
market prospect, it has the ability, to acquire new resources, to strengthen operations in order to
withstand competition in new country and to implement new operating strategies. Diversification
makes this business operationally viable. Companies with global market reach, compared with
companies that restrict themselves to a specific nation, are much more stable or diversified.
Companies also gain the decisive strategic advantage in international expansion. Unmatched
markets are typically a first-class opportunity for companies in intense competition, as first

business to gain a market presence is to benefit from additional advantages like ease of market
domination. In general, businesses with an international reach get a better brand name, higher
market recognition and a much greater reputation.
Several growth strategies that can be adopted by Muffin Break while operating at international
scale
According to Rick Suttle (2020), Muffin break have potential to increase business and
boost the sales. Nonetheless, there are several methods firm must use for executing a growth
strategy. The approach that a business makes to expand business depends largely on the financial
situation and competitiveness of company and even government regulation. Growth strategy is
not only a collection of tasks that you attach to your organization to improve product
development as this is also way to coordinate and operate as a team. There are different growth
strategies mention below which Muffin Break can be used while operating the business at the
international scale:
Market penetration- It is one strategy for market growth. If business wants to sell its
goods within the same segment it does, it does a market penetration strategy. According to
business experts, only way to expand with established goods and customers is to raise market
share. This reflects percentage of the unit and dollar revenue that a company retains over all
other rivals within an industry. The reduction of prices also is way of rising market share. For
example, a cheaper price may help a business gain market share in markets where there is little
competition between goods. In general, Muffin Break when choosing to launch new coffee and
sell within the same region uses a consumer penetration strategy. In the other words, businesses
are seeking to gain market share of existing goods. When company can enhance the current
functionality or find new uses to it, it can inspire more customers to purchase product. For
certain instances, however, no improvements to product are usually needed. Changes to
packaging and advertising on "new and improved" product are always enough to draw
consumers ' interest (Gama, Bandeira-de-Mello and Spuldaro, 2018).
Market Expansion or Development- A growth plan for business growth, also known as
market creation, includes the selling of existing goods on a new market. A business may pursue a
policy of expansion of the market for many reasons. First of all, competition may be such that
the existing market has no scope for growth. Unable to boost revenue or income, if business fails

to find market opportunities for its goods. When a business seeks new applications for their
product, this could also use market growth strategy. A product analysis can also disclose
potential applications for product, which would push it beyond the existing market. A new
product exists in this case, but the market is new and the company would be in a position to gain
greater market share, more revenue and certainly more income in this new market. The target
market is either extended by finding new consumers or using new goods.
Product Expansion Strategy- Brand growth takes place through the implementation of a
plan to increase their companies. A company can also extend its product line or incorporate new
features for increasing its revenues and profits to other markets after capturing their target market
value. When businesses use a plan for product growth, which is also called product creation, they
tend to sell on existing market. When the technology begins to evolve, a product growth plan
also works well. A business will be forced to add new items as older ones become obsolete. In
addition to execute this strategy effectively, Muffin Break must be able to adapt rapidly to
market trends that demand product changes. It does not succeed if the organization is unable to
rapidly find alternatives because another shift will already have occurred before they are able to
find a solution for changing markets.
Growth through Diversification- In business growth plans, diversification is often included
when a company is selling new goods to the new markets. It can be very dangerous kind of
strategy. By pursuing a diversification development strategy, a business would have to prepare
carefully. Marketing research is crucial because business needs to determine whether customers
in new market are likely to like new products. This is high risk strategy, a high-return strategy,
as it essentially is similar from scratch to begin from scratch, as though the company is starting
again (López-Cózar-Navarro, Benito-Hernández and Platero-Jaime, 2017).
Acquisition of other companies- Business growth strategy can include acquisitions as
well. In acquisition, a corporation purchases another business to extend its activities. That kind
of tactic is used by a company to expand its product range and reach new markets. A strategy for
procurement development can be risky, but it’s not as risky as strategy for diversification.
Another explanation for this is the development of goods and markets. A business must know
exactly, particularly because of the large investment it has to make, how much it seeks to
accomplish by using an Acquisition Strategy.