Unit 42: French Popotte Growth Opportunities and Business Plan

This report provides a detailed business plan for French Popotte, a juice shop in London, focusing on its growth and expansion opportunities. It begins by analyzing key considerations for evaluating growth, including competitive advantages and the application of Porter’s Generic Strategies. The report then examines the application of Ansoff’s Growth Vector Matrix to identify market penetration, product development, market development, and diversification strategies. Furthermore, it explores various funding sources available to French Popotte, such as debt financing, crowdfunding, social lending, and equity financing. The plan includes an executive summary, industry overview, competitor analysis, marketing, and operational plans. Finally, the report discusses exit or succession options for the business, providing a comprehensive overview of French Popotte's path to sustainable growth and development within the UK hospitality industry.

Unit 42 - Planning for
Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK 1............................................................................................................................................3
Analysing the key Considerations for Evaluation of Growth Opportunities Available to French
Popotte.........................................................................................................................................3
Opportunities for Growth of French Popotte by Applying Ansoff’s Growth Vector Matrix......6
TASK 2............................................................................................................................................7
Sources of Funding Available to French Popotte........................................................................7
TASK 3............................................................................................................................................8
Business Plan...............................................................................................................................8
TASK 4..........................................................................................................................................14
Exit or succession options for a small business.........................................................................14
CONCLUSISON...........................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Growth relates to the strategic stage which all successful business organisations reach
where they can expand and diversify their business operations and increase all operational
metrics such as customer base, market share, operational and financial performance of the
business organisation within the operational industries. Growth and development are immensely
important and essential for any business organisation to continue operating successfully within
the business environment and gain a sustained competitive edge against their competitor business
organisations within the operational industries (Agbola and Otchere-Ankrah, 2018). This report
analyses the growth and development opportunities that are available to French Popotte, a
privately owned business organisation that operates in London, England.French Popotte is a
dedicated juice shop in London and specialises in selling various types and varieties of fruit
juices, shakes, snacks to the customers of UK. French Popotte has been able to operate relatively
successfully within the hospitality industry of UK and this has presented the business
organisation with opportunities to grow and expand their business operations, with the intention
to generate increased amounts of financial profits.
MAIN BODY
TASK 1
Analysing the key Considerations for Evaluation of Growth Opportunities Available to French
Popotte
There are various key considerations which are required to be evaluated effectively by
the leadership and senior management of French Popotte towards the growth opportunities that
are present and available to French Popotte towards expanding and developing their business
operations further in an effort to increase their operational productivity, customer base, market
share and financial performance within the hospitalityindustry of UK. These key considerations
for the evaluation of the growth opportunities available to French Popotte are as follows:
Competitive Advantage:

The term competitive advantage relates to the business position of a business organisation
such as French Popotte, where it is able to effectively outcompete the other competitor business
organisationswhich operate within the same operational industry as that to the business
organisation and is effectively able to operate successfully despite the competitor businesses
operating towards similar business objectives. Competitive advantage is immensely important
for the successful operations and growth of French Popotte as this allows for the business to
effectively and profitably conduct its business operations of manufacturing and selling to the
consumer markets, aiding the French Popotte’s ability to grow and expand their business
operations, diversify their manufactured products and thrive within the hospitality industry of
UK(Buccioli and Kokholm, 2018). There are various ways through which French Popotte can
gain a sustained competitive edge against their competitor business organisations within the
hospitality industry of UK such as by embracing and incorporating new digital technologies into
their operations, creating beneficial supplier relations, optimising their manufacturing process
etc. In order to effectively gain a sustained competitive advantage against their competitors
within the hospitality industry of UK, the leadership and senior management of French Popotte is
recommended to make use of the Porter’s Generic Strategies model, which is a strategical
framework that details the different strategies that French Popotte can make use of in order to
effectively gain a sustained competitive edge within the hospitality industry of UK. These
strategies are as follows:
Cost Leadership: Using the cost leadership strategy, a business organisation such as French
Popotte effectively tries to gain a sustained competitive edge within its operational industry by
decreasing the overall cost of their sold goods and products within the consumer markets. This
allows for the business organisation to become cost leaders amongst all the business
organisations operating within the industry and aids the business organisation’s efforts to
effectively increase their market share, customer base, operational and financial productivity by
selling its overall goods and services to the customers at highly optimised and reduced
costs(Gondek, Boessenkool and Star, 2018).The cost leadership strategy requires for the French
Popotte to make effective and optimum use of their possessed organisational resources and also
minimise wastage of time and other operational metrics, in order to effectively decrease the
prices of their manufactured products and gain a sustained competitive advantage within the
hospitality industry of UK.

Differentiation:Using the differentiation strategy, a business organisation such as French
Popotte tries to innovate, design and create new types of business goods and products to sell to
the consumers within the consumer markets, with these new products and goods being highly
distinguished and differentiated from the type of goods and products that are generally available
in the consumer markets, manufactured by their competitors(Kaar and Stary, 2019).
Differentiation strategy is also immensely useful for a business organisation to as through it the
business creates highly differentiated goods and products within the consumer markets, which
cannot be easily substituted or alternated for by the goods and products that are manufactured by
the competing business of French Popotte, within the hospitality industry, allowing for French
Popotte to effective gain a sustained competitive edge against their competitors and increase
their overall business operational metrics such as customer base, market share, operational and
financial performance.
Focus:French Popotte can also choose to focus their competitive strategies to be applied to a
chosen focused segment of the market in order to gain competitive advantage. French Popotte
can choose cost focus strategy and focus their operations to provide their goods and products to a
chosen market segment at decreased costs, in their effort to gain a competitive advantage.
Similarly, French Popotte can also choose to focus on the needs and demands of a particular
market segment and offer to them products that are highly differentiated and distinguished from
the products manufactured by their competitors, allowing for French Popotte to effectively gain a
competitive advantage within the UK’s hospitality industry.
The leadership and management of French Popotte is recommended to focus their
operations on developing new and differentiated products to sell to consumers within the
hospitality industry in order to effectively grow their operations.
Portfolio Strategies (BCG Matrix):
Another key consideration that leadership and senior management of French Popotte
need to factor in relates to the Boston Consultancy Group (BCG) Matrix. The BCG matrix is a
strategical framework that can be used by the leadership and management of French Popotte
towards effectively analysing the brand portfolio of the business organisation. The BCG matrix
effectively segregates the brand of a business into four categories:

Stars: These are products that make cash and profits for the French Popotte and require effective
management by French Popotte to be turned into cash cows.
Cash Cows: These are the previous stars of French Popotte and now have been effectively
managed towards making increased amount of profits and cash for the business organisation.
Dogs:Eventually cash cows of French Popotte shall become dogs, where they provide the
business with limited profits and cash (Kochkina, 2019). The leadership and management of
French Popotte is required to analyse dogs before they consumer essential resources of the
business resulting in decreased profitability.
Question Mark:These include products of French Popotte that aren’t highly profitable yet, but
possess huge growth potential.
Opportunities for Growth of French Popotte by Applying Ansoff’s Growth Vector Matrix
The Ansoff’s growth vector matrix is a strategical tool that can be used be the leadership
and senior management of French Popotte towards effectively devising appropriate growth
strategies for the expansion and development of French Popotte. The Ansoff’smatrix includes
four strategies that can help French Popotte grow and expand their business operations as
follows:
Figure 1:Ansoff’s Matrix

Market Penetration: This is the least risky strategy for the growth of French Popotte, through
which the business organisation can concentrate its business operations towards selling its
existing manufactured products into existing markets in order to grow the financial profitability
of the business. This requires the French Popotte to increase their brand awareness, value and
reputation metrics and conduct their marketing operations effectively.
Product Development:This strategy carries medium degree of risks attached and requires French
Popotte to develop and introduce new products and goods into the hospitality markets for their
consumers to purchase, providing to the business’s customers increased choices form amongst
the enhanced range of products sold by French Popotte(Mason and Botelho, 2018).
Market Development:This strategy for growth of French Popotte carries significant risks and
requires the business to place its focus on expanding to a new market segment and sell its
existing goods and products to a new segment of customers within the market, allowing for
French Popotte to effectively enhance their customer base, market share, operational and
financial productivity in the process.
Diversification:This is the riskiest growth strategy available to French Popotte and requires the
business organisation to effectively diversify their business operations to new industries and
markets selling new products to customers in new market segments.
TASK 2
Sources of Funding Available to French Popotte
There are present various different sources of funding to French Popotte for their growth
and development operations, each of which have their own disadvantages and benefits. The
sources of funding available to French Popotte are as follows:
Debt Financing: This is one of the most common sources of funding available to French Popotte
through which the business organisation can procure the necessary financial resources from
banks in the form of financial loans. This requires French Popotte to enter into a legal agreement
with a bank towards paying back the loaned capital in addition to added interests which are
prescribed along with the loan by the bank. The advantages of debt financing relate to its easy

process with the bank guaranteed to provide loan for a certain period of time and not having to
sell any of the shares or equity of French Popotte to procure necessary finding(Parnell, 2018).
The disadvantage of debt financing relates to the fact that banks require security deposit for
loaning financial funding and that banks also lack any form of flexibility in relation to repay
durations and negotiating interest rates.
Crowdfunding: This is another source of funding available to French Popotte, through which it
can raise the capital required from the small contributions of a large number of people on the
internet. The advantage of crowdfunding are that French Popotte can set the target amount for
their funding required through crowdfunding and that crowdfunding can also work as a way to
effectively market the business to consumers and the population. Disadvantages of crowdfunding
relate to the fact that should the target funding is not able to be generated, all amount is returned
to the crowdfunding investors and that it risks the idea of French Popotte being stolen as the
business is required to showcase the idea on public platform.
Social lending:Through this method, the leadership of French Popotte can procure necessary
funding from their family, friends etc., The advantage of social lending relates to its flexible and
negotiable approach in terms of interest rates, while limitation relates to no legal protection for
both investors and debtors.
Equity Financing: Sainsbury’s can raise the required financial capital by selling their
organisational shares to the public, with this approach being known as equity financing. This
source of funding, Sainsbury’s can make use of angel investors who are highly rich individuals
looking to invest their financial resources into the operations of business organisation in return of
the business’s shares or equity (Sahamkhadam and Stephan, 2019). The advantages of this
approach relates to Sainsbury’s being able to procure as much financial resources as are required.
The disadvantages of this approach relate to loss of control of the business’s operations and long
term vision.

TASK 3
Business Plan
Executive Summary
French Popotte is looking to bring a organic energy drink in the market, on the basis of
the market research. For the same reason Business plan explain the overview of the company.
After that business plan highlights the Industry overview and competitor analysis. After that
explain the marketing, operation and financial plan of the company in the market. In the end the
report explain the risk associated with these sort of the move for the business .
Company Overview
French Popotte, is a privately owned Juice Shop establish in London. French Popotte
generally used to offer variant kind of fruit juice with some sort of the snake as well. French
popotte used to operate at small scale in the market (Katz, 2018).
SWOT
Strength Weakness
 Customer relationship
 Quality of Product
 Product Awareness
 Profit margin
Opportunity Threat
 Expansion
 Improve product line
 Competition
 Legal Factor
PESTLE
Factor Description
Political Factor There is good political stability but decision
like Brexit may create issue.
Economic factor Inflation and Interest rate are at favourable side

may assist the company but increasing rate of
water and diesel will create issue as well.
Social Factor Rapidly changing consumer preference open
up new opportunity for the business.
Technology factor Rapidly changing technology may create the
issue of selecting the technology which has to
be selected.
Legal Factor Rapidly changing law and regulation may
impact efficiency of business.
Environmental Factor These factor are very much favourable as all
the cited firm generally used recycled raw
material in their operation.
Economy and Industry Overview
Looking at the Economy overview it can be said that Economic condition are very much
positive in the nation. As there is good presence of money in the economy and also interest rate
are very low (McKenzie and Sansone, 2019). This eventually gives a good amount of the room
for the company to have the finance whenever they require. At the same time rapid increase in
the price of water and petrol which will increase the cost of the company in long run.
Industry Overview
Potters 5 forces, is a framework which is generally used in the market to identify the position of
the company in the industry.
Threat of competitor: This threat is very high for the business as there are many variant
sort of the competitor who used to dealt in the cited firm and used to provide the same kind of
product.

Threat from new entrant: This threat is normal in the industry, as many new entrant
into the market but out of which very few number of the individual are able to attract the
consumer.
Bargaining power in the hand of consumer: This sort of factor is high, as there are
good sort of the choice to be made by the consumer which used to give good sort of power in
hand of consumer.
Bargaining power in the hand of supplier: These factor will have low impact, as there
are many varient supplier available in the market. This reduce the amount of the power from the
hand of the supplier.
Threat of substitute product: This force will impact high as there are many variant sort
of the substitute product of the company such as Soft and Hard drink.
Target Market
Segmentation: For the energy drink product variant segment will be made in the market
on the basis of previous customer feedback, age and health issue if any they are suffering from.
Targetting: Out of the variant segment, customer of age group 15-45 will be targeted as
they are the one who are more addicted to the energy drink as compare to the other group of
customer in the market ((Ivanisevic and et.al., 2016).
Positioning: Product of the company will be positioned in a way that it used to assist the
consumer in overcoming the variety of the health issue as health issue is one of the biggest issue
which is being seen by the variant individual in the long run.
Competition Analysis
Red bull Red bull used to offer
the energy drink in
variety of the variant
flavour to attract the
Penetration pricing
strategy is being used
by the red bull to
promote the product of
Strength of company is
goodwill and good
product line/ weakness
is that price of

eye of consumer. the company in front
of the other.
company product is
very high.
Monster Offers variety of the
product in the market
but only few are able
to earn the name as
expected.
Cost Plus pricing
method is the pricing
method which will be
used to priced the
product of company
(Tipu, 2019).
Strength of company is
the goodwill and good
market are coverage/
weakness of the
company is variety of
the quality issue faced
by consumer in past
Marketing Strategy
For the new product of the company Marketing Mix is as follows:
 Product: Company is looking to bring the new product in the face of the energy drink it
will be made of the organic product, reason behind the same is identified that there is
good level of the obesity which is present in the UK and demand of organic product is
increasing.
 Price: Company will be using the skimming pricing scheme in the market. Under these
scheme price of variant product will be kept high in the initial stage and on the basis of
the same price of the product will be reduced to cover large market.
 Place:These product will be first launched in the local market of the UK and on the basis
of the same looking at the performance of the business product decision will be taken in
regards of launching it into the global market or not (Teasdale, Steiner and Roy, 2019).
 Promotion: variant product of the company will be promoted in the company with the
assist of two kind of promotional platform. Two kind of promotional platform which will
be used will be social media platform as well as advertisement in the news paper and the
radio.
 Packaging: Product of the company will be packaged in two varient size, the first size
will be 750 ml can and another size will be the 350 ml can of energy drink (master and
Okkerse, 2019).