Business Growth Strategies for Dulce Coffee London Cafe - Unit 42

This report provides a comprehensive analysis of growth planning for Dulce Coffee London, a small cafe business. It begins with an evaluation of growth expectations using PESTEL analysis, generic models, and the Boston Group Matrix. The report then explores the application of the Ansoff matrix to identify development prospects, focusing on product development as a key strategy. It also addresses market strategies to improve profit, evaluating the path to growth while considering associated risks and mitigation. Furthermore, the report examines potential financing sources, including bank loans, and discusses their advantages and disadvantages. A business plan for growth is designed, incorporating financial information. Finally, the report explores exit or succession options for small businesses, comparing different alternatives and providing a critical evaluation of each. The report concludes with key findings and recommendations to help Dulce Coffee London achieve sustainable business growth.

Planning for Growth

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1.Evaluating growth expectation of Dulce Coffee London Cafe by analyze their key intellect
ion................................................................................................................................................1
P2 The prospect for development by applying Ansoff framework.............................................4
M1 Cover the procedure for improvement using analytic expectation........................................4
D1 Evaluating the path to grow while attracting the endangerment into intellectual..................5
P3 Maintain the potential financing sources which are available in business and their
advantages and disadvantages......................................................................................................5
M2 Evaluate potential sources of funding and justification for the adoption of source..............6
D2 Critically standard the potential sources of funding with explanation argument .................6
P4 Design of business plan for growth along with financial information ..................................6
M3 Appropriate and detailed business plan for growth and securing investment.......................7
D3 Present a extent business plan that establish the knowledge and perceptive how to apply
and achieve business objectives...................................................................................................7
P5 Explain exit or successiveness option for small business with their advantages and
disadvantages:..............................................................................................................................7
M4 Examine the exit or succession options for a small business while comparing the other
options .........................................................................................................................................9
D4 Critical evaluation of the exit or succession option for the small businesses ......................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The organisation made strategical action regarding the growth planning which is
beneficial to business plan. The working of the employee in the same organisation brings a huge
gross in return for a company. Basically it is an action plan for growth outcomes to the
organisation. The strategic design may consist of SWOT analysis such as strenght, weakness,
threat and opportunities in relation to the organisation or the employees. These strategic in
growth planning helps employees in order to manage time, helps the employee to improve their
emotive ability as well as boost the confidence level in public. As these are the very first or
primary plan for the organisation growth. It has limited resources to work in order to gain
maximum profit. In relation to economy development the human action plan is the main prospect
as business. This project is in the context of Dulce Coffee London, the cafe primary work is to
make organic coffee along with many different beverages or with different snacks item. Here the
Dulce Coffee London is taken an example in order to analyse the growth opportunity for small
business or evaluating the cafe through applying ansoff matrix growth vector. The project report
discussed on the different source of funding and their drawback or benefits. Along with that, the
project reports includes a business plan for scaling up the business or their benefits and its
drawback in the context of Dulce Coffee Cafe shop.
MAIN BODY
P1.Evaluating growth expectation of Dulce Coffee London Cafe by analyze their key
intellect ion
The small business organisation need to expand their organisation through identifying or
acknowledging the approach or situation which is requires in the benefits to consumer or the
employee. The opportunities are required by the organisation to yield the maximum market
share. There are different plan and evaluation are studied in regarding the Dulce Coffee London
Cafe.
PESTEL Analysis- It is a study through which the organisation compare their opinion
which is made inside the company or the organisation along with their impacts on the external
factors. While analysing the external factors such as the impact on decisions or changes, the
organisation can make a proper planing by keeping the desired outcomes in the mind. It is
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generally need to consider the various factors while planning the business development or
possibility (Englert and Helmig., 2018).
 Political- This includes different government or leadership policies which might effect
the regular trends of the marketplace. The different policies which the government
determines such as the quality of beans. From this they can do the export or import
business. They have the authority to banned the coffee which are grown by the use of
fertilizers or pesticides along with many other things. Hence, the cafe needs to provide
the healthy meals to their customer. As government has regulated the very strict law in
the measure for food industry.
 Economical- This is the fundamental aspects of financials conditions which have the
huge impact on the organisation. The economical aspects includes mainly the foreign
exchange rates, food standards as well as the growing incomes. When the price of coffee
in UK rise then it may affect the business as customer might not visit the place again
when some alteration in price is seen in the coffee menu (Borzaga, Salvatori and Bodini.,
2019).
 Social- From this, the provider understand the need or wants of their customer
circumstance. Social deal with the current trends which are related to the social changes.
This social changes is occurring due to the alteration which is seen in the changes in
lifestyles, culture as well as the behaviour. These modification or alteration need to
understand because nowadays coffee cafe change or alter the meals as per individual
client.
 Technological- This is the important factor which is need to be focus or considered
according to the running marketplace. The fundamental concept of is to being updated
with the CCTV as it helps the provider of being completely updated on the ongoing
action in the cafe as well as provide the full safety to the organisation or the cafe.
 Environmental- The environmental is the factor which include the modification or
alteration is done to get the environmental conditions benefits of that area. The conditions
involved in the consideration of environment is to avoid the plastic use as well as rise the
the use of recycle products and reusable products.
 Law- Dulce coffee London require the legal approaches in order to open the cafe in the
given area. The Law includes are consumer law, maintenance law as well as lobar law.
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There is need to monitor on regular basis of their hygiene or safety condition of the Dulce
coffee London as it provide risk free inspections (Guha and et.al., 2019).
Generic Model Poster- These generic model considered the some external factor which may
affect or influences the growth of organisation.
 Cost- The strategies are design in order to examine the competitors. This strategy is
provided in order to increase the gross revenue of the Dulce Coffee London by providing
their customer a better service in cost effective manner in compare to their competitors.
 Differentiation- This strategy is executed by Dulce Coffee London in order to preparing
the meals while examine the customer demand or need. This strategy were implemented
while providing the healthy food to their customer which will helps to increasing the
sales.
 Centring- While adopting this strategies by the Dulce Coffee London, they need to
consider discount or combo schemes. When this scheme provided to the customers, then
it will attract more number of customer towards the cafe which will helps in increasing
the sales.
Boston Group Matrix- This strategies helps the provider in order to evaluating the marketplace
for long-term growth of the organisation in the marketplace. From this, they analyse the
opportunities by evaluating the factors such as which meals is need to discontinue from the
menu, which meals need more focus or which meals the consumer demanding the most. The
Boston consulting the four matrix such as star, cash cow, dog and question mark which is
mentioned below:
 Star- It is the symbol which symbolise the plan of enterprise. They are having the great
market assets. By providing the high quality organic coffee bean the Dulce Coffee
London using this symbol as their strategic plan in order to gain more customer
(Hamdoun, Jabbour and Othman., 2018).
 Cash Cow- This symbol helps the cafe in order to describe that their is huge market share
of the cafe. But their growth is declining or changing due to the upcoming changes in the
market share. However, the Dulce Coffee provided their customer an organic coffee but
they might face a competition from the branded coffee shops like cafe coffee day or
Starbucks. Due to tough competition they need to focus on improving the taste and
quality of the products.
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 Dog- This symbol describe the low market share and low growth in the market. This will
happen when the customer shift their interest or stop using the organic coffee. It is
because of the bitter taste of the coffee.
 Question mark- This symbol describes the high growth market with low market share.
The new business growth is seen in the Dulce Coffee London, as the customer of their
cafe were impressed with organic coffee taste as this help cafe in increasing the business.
They need to do more campaigns to increase the awareness about their organisation. This
process helps the organisation to make more revenue (Yeow, Soh and Hansen., 2018).
P2 The prospect for development by applying Ansoff framework
The Ansoff frameworks model help the provider in order to examine the opportunities
which help in the development of new products as well as the services. This model helps the
organisation to generate the huge revenue output.
 Insight market- This process is used by the provider in order to sell the more products
and services to their regular customer. In order to attract the more customer, the Dulce
Coffee London adopt this process for gaining the accessibility for online delivery of their
products.
 Devolution- This process is used by the producer in order to advance their organisation
by broading its more. For opening their cafe to many other countries or state this
technique is used by the Dulce Coffee London.
 Development of product- Cafe improve their meal as well as their coffee for attracting
more customer.
 Diversification- This process is provided by the provider in order to increase the
different types of meal as well as introducing some innovation techniques while serving
their existing product (Piepoli and et.al., 2020).
From mentioned strategies, it is determined that effective growth option for Dulce Coffee
London is product development wherein the company can develop coffee flavour profiles and
meal for appealing to particular customer segment. The establishment is required to put huge
efforts along with resources to transform something saleable in market.
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M1 Cover the procedure for improvement using analytic expectation
It is well-advised to develop some market strategy which help the organisation for
making huge profit. The market strategies helps the small-scale business to lower the risk in
order to capture the market share. The market strategies development plan help the Dulce Coffee
London to make their own brand image. Also help in collecting the profit, maintaining the
equality in their quality.
D1 Evaluating the path to grow while attracting the endangerment into intellectual
Modification in small-scale organisation require large amount of investment which may
increase the risk in case of Dulce Coffee London because they don't have large fund for
investment (Wilson and et.al., 2020). It has been evaluated that option for growth that is
available with Dulce Coffee London is product development from ANSOFF matrix. The risks
associated with product development option for Dulce Coffee London are performance risks,
market risks, supply chain risks and organisational risks. Key strategies to mitigate risks that are
related with product development are controlling risk, transference of risk, assume and
acceptance. At same time, another pathway for growth for Dulce Coffee London is
differentiation strategy in which managers will differentiating offerings by improving taste or
using healthier ingredients. In this pathway, risks are imitation by competitors as well as changes
in customer taste. In order to mitigate the risks, tactics that can be adopted by the company are
watch and monitoring risk.
P3 Maintain the potential financing sources which are available in business and their advantages
and disadvantages
 Bank loan- This is the most common known funding form which are usually adopted by
the organisation. Bank provided the fund to the small-scale business in a fixed interest
along with asked some document as a security.
Advantage- Most convenient way to use the finance for increase the growth of the organisation.
There is no need to pay the extra amount after clearing the loan amount to the bank. Having a
account in the same bank can get the benefit of the other services side by side.
Disadvantage- Bank need the documents or property paper as a security. In some case bank do
not provide the full loan to the organisation. In order to granting the loan the need lot of paper
work as for security deposit or for verification.
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 Angel Investment- The funders who provide the funding support to the small-scale
organisation along with capture the stake position in business as in funding exchange.
Apart from this, they use their business expertise to ensuring the company market share.
Advantage- They do not need any asset as a security deposit. They do not need any interest or
returns in exchange of funds (Janssen and et.al., 2020).
Disadvantage- The amount which are generated as a profit is directly goes only to the investors.
Command related to the regulation of the organisation were in investors hand.
 Venture Capital- The funding which are generated to company from the investors for
the start-ups. The investors may be insurance bank, investment companies as well as
pension funds. These investors usually invest in those company from where they can
make huge amount of profits.
Advantage- This funding provide network opportunities along with risk management plan
support to the organisation.
Disadvantage- They can make control on the decision which is made by the organisation. The
business development can rise the pressure on the employees as well as the producer.
From the above discussed model it is examine that the Dulce Coffee London can select
the Bank Loan as their funding source. This source helps the organisation to increase the
finances in speedy or in easy way. From this, the cafe work in more efficient or in decent
manner. This source helps the organisation with less interest in return (Paul., 2019).
M2 Evaluate potential sources of funding and justification for the adoption of source
For every day growth financing is required by the organisation. Without funding
company face many crisis. Dulce Coffee London cafe adopt the bank loan as their funding
source because they provide funds with less interest.
D2 Critically standard the potential sources of funding with explanation argument
In accordance to Paul (2019) it has been critically evaluated that funding sources are
essential in company to make investment in research and development for achieving success of
expansion in new locations or markets (Paul, 2019). For Dulce Coffee London, one of potential
funding source available is bank loan that can benefit in permitting business growth with
favourable interest rates, keeping full control of company with entrepreneurs and borrow larger
amounts of money than with an unsecured loan. However, limitation of bank loan for the
company includes inflexibility, strict eligibility criteria and lengthy application process. Other
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funding source for the company is venture capital which can benefit in offering networking
opportunities, experienced leadership, raising huge amount of capital and connecting with other
business leaders. The disadvantages of venture capital are expensive financing cost, requirement
of expensive due diligence and giving ownership stake to others. The effective funding source
for Dulce Coffee London is bank loan because through this, the company do not need to share
profits with banks and benefits in taxations also.
P4 Design of business plan for growth along with financial information
Planning a business need a document which contains the operation along with the
financials plan for the organisation. There is need to plan for a growth for business because it
guide the organisation with their work or implementation. Planning provide the road map for the
organisation growth. Dulce Coffee London using the digital technology for providing the
differentiation in their commodities or services (Peters and et.al., 2020). The business plan for
Dulce Coffee London is as designed:
Particulars Description
Executive Summary Business plan helps Dulce Coffee London to put emphasis on
particular phases that are required for making business idea
successful. With this, the company becomes potential to attain
short term and long term objectives.
Overview of company Dulce Coffee London initially serve the organic coffee or some
fast food but now ready to use some innovation techniques for
improving the taste.
Product/service information Products that are offered by Dulce Coffee London are assorted
sandwiches & baked goods. It also offers wider dishes under
product lines that are French Toasts, Vegan Breakfast,
Shakshuka and many more.
Economic and industry
overview
Coffee shop industry of UK comprises independent operators,
branded chains and hence forth. It entails outlets which are
specialised in products such as beverages, bagels, donuts, frozen
yogurt, and ice cream.
Target market Target market of Dulce Coffee London includes coffee shop
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lovers, whole bean buyers, drip coffee drinkers and specialty
coffee drinkers.
Competition There is high competitive rivalry in coffee shop industry. Some
of competitors of Dulce Coffee London are Exmouth Coffee
Company, Grounded London, Copper Coffee, Peter’s Café
London and so on.
Marketing strategy Marketing strategy that Dulce Coffee London can use to
promote the business is social media marketing wherein
marketing team can use social media platforms along with
websites to promote offerings. Another marketing strategy is
influencer marketing that can let the company to work with
people who have influence with organisational audience to
promote your brand.
Operating plan Operating plan for the company puts focus on preparation,
marketing, logistics, human resource as well as financial limits.
In Dulce Coffee London, operating plan ensures that each
manager as well as each employee are aware about particular
obligations, and how they should execute them within a well-
defined timeline.
Key milestones and exit plan The milestone and exit plan for Dulce Coffee London:
Date Milestone
21.10.22 Initiation
20.10.22 Planning
15.10.22 Designing processes and outputs
01.10.22 Implementation
15.10.22 Evaluation and Closure
Financial information Key sources of funding that are available for Dulce Coffee
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London are as follows:
Profit and loss statement
Particulars Amount
Sales £26,000
Direct Cost of Sales £1,250
Total Cost of Sales £1,250
Gross Margin £24,750
Gross Margin % 95.19%
Expenses
Payroll £15,000
Sales and Marketing and Other
Expenses
£200
Utilities £250
Insurance £400
Rent £2,000
Payroll Taxes £2,250
Total Operating Expenses £20,100
Profit Before Interest and Taxes £4,650
EBITDA £4,650
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Interest Expense £609
Net Profit £4,041
Net Profit/Sales 15.54%
Cash flow statement
Particulars Amount
Cash Received
Cash from Operations
Cash Sales £26,000
Subtotal Cash from Operations £26,000
Additional Cash Received
Long-term Liabilities Principal
Repayment
£694
Subtotal Cash Spent £22,658
Net Cash Flow £3,342
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