Pot Kettle Black: Business Growth, Funding and Exit Strategies

This report analyzes the growth strategies for Pot Kettle Black, a small medium enterprise (SME) located in Manchester, UK. It begins with an introduction to the importance of growth planning and competitive advantage, followed by an explanation of how Pot Kettle Black achieves a competitive edge through operational efficiency, innovation, and technology adoption, using Porter's generic strategies and the VRIO framework. The report then evaluates growth opportunities using Ansoff's growth vector matrix, including market penetration, market development, product development, and diversification. It further explores funding options, comparing angel investors, peer-to-peer lending, crowdfunding, and bank loans, and justifies the selection of bank loans and crowdfunding. The report also addresses business plan development, and potential exit strategies for the owners. Finally, it offers recommendations to enhance the company's performance.

PLANNING FOR GROWTH

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO1..................................................................................................................................................3
An explanation of the basis of competitive advantage for the business......................................3
Evaluate the opportunities for growth applying Ansoff’s growth vector matrix ........................5
Pot Cattle Black growth of understanding by analysing options ................................................5
LO2..................................................................................................................................................6
Available funding by the business for assessing the potential sources........................................6
Sources of funding evaluation and justification for adoption of the appropriate source of
finance..........................................................................................................................................7
Potential sources of funding were critically evaluated based on the needs of the organization .8
LO3..................................................................................................................................................8
Business plan development and communication on scaling of business ..................................8
LO4................................................................................................................................................12
Owners of the small business can exit by assessing the various ways and implication on the
option.........................................................................................................................................12
Recommendations......................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth play an essential role in the business, where it helps to reduce such
unplanned risks which are occurred from competition in the current market. For having a long
term survival rate planning helps to create an effective change which helps to survive in this
competitive market. It is used to set out such proper visions as well as having a different kind of
strategies as well. The small medium enterprise, which will choose in the discussion is Pot Kettle
black. It is situated in Manchester, United Kingdom. It serves tasty bunch of dishes and its coffee
quality is famous around the country. The current report will discuss the explanation on the
competitive advantage of the chosen business with the critical assessment of the opportunities.
Further, the critical assessment will have on the options of growth with applying the Ansoff's
growth vector matrix. Lastly, the report will include the exit and succession options for the
business, with the evaluation of the different options to access such benefits with the
disadvantages. It will also include some recommendations which helps company to improve their
quality.
MAIN BODY
LO1
An explanation of the basis of competitive advantage for the business
Competitive advantage is a very crucial term for the businesses in which it helps
organization to gain a better profitability as compare to its competitors (Abdullah, 2020). For
gaining a better competitive advantage Pot Kettle Black use the better differential value before
its rivals, which helps company to be more productive.
There are some strategies which are adapting by the Pot Kettle Black, it helps the business to
gain a proper competitive advantage.
 Organization is maintaining its operational activities which will further help to enhance
its productivity.
 Pot Kettle Black is utilizing the innovations in its new products, and always do
modifications in its existing products as well.
 It uses the new and advance technologies which is very useful for the organization to
attract more customers and know about the needs and requirements of them.
With the help of the Porter's generic strategies, it will help Pot Kettle Black to gain a better
competitive advantages.

Cost leadership- Pot Kettle Black is focussed with its marketing strategies, and it has an
advantage for having a proper strategy related to the cost in the marketplace. It has a cost
reduction strategy, which are creating an average performance level of the cafe in the whole
SME's. So, the cost leadership helps the organization to have a better command on its product
prices and also increases it business standards.
Differentiation- this strategy help organization for having a different type of dimensions
with the unique product strategy (Cant, 2018. With this kind of planning it will simply help to
attract more buyers as well as helps to fulfil their needs and satisfy them by its unique products.
Focus- this strategy used to create a proper focus on the market segment, where the
people different choices. Pot Kettle black has adapting many strategies which help them to have
a different market segment in the new as well as existing market. It includes the both cost
strategy and differentiation strategy which are important in the market segment.
Vrio Framework which are used by the Pot Kettle Black for determining the competitive
advantages.
It is an internal analysis in which it always helps the organization for identifying such
advantage which are involved in gaining the competitive advantage as well.
Value- it is basically counted as a basic needs of the products of the company in which it
will help to determine the proper worth and value of the product (Ferreira and Pinheiro, 2018).
Pot Kettle Black has a better value in the market except its competitors and also helps to
determining such current value of its products.
Rarity- it is basically helps to identify the resources, which are used by the Pot Kettle
Black, to gain more competitive advantage (Ferreras-Garcia, Hernández-Lara and Serradell-
López, 2019). It plays a crucial role, because it involves the values and different type of
programs.
Immitability- it is a same as the rarity, but it provides a proper solution of every problem
which are occurred due to the huge competition in the market. Pot Kettle Black is using this
element which helps to find the proper services for increasing the standard level of the
organization.
Organization- it is counted as a specific circumstances of the internal analysis, which
have a solution to gain a proper competitive advantages. It is simply helps to identify the goals
which are very important in the market to achieve it.

Evaluate the opportunities for growth applying Ansoff’s growth vector matrix
By using the Ansoff's growth vector matrix, it identifies such opportunities which help
the business to be more successful in the market.
Market penetration- it simply refers to selling the proper products with providing the
useful services to customer in the existing market which helps to increase the business growth.
Pot Kettle Black easily achieve its target and having a proper growth with its innovative products
(Fu and et.al., 2022). It helps to know about the present needs of the customers which helps the
organization to successfully help them to achieve goal.
Market development- this specifically helps to achieve the target growth in the existing
market. After applying this strategy Pot Kettle Black gain a proper competitive advantage.
Product development- this strategy is work when Pot Kettle Black launches its product in
the market with the keeping in mind the needs and satisfaction level of the customers. It also
helps to achieve the competitive advantage as well as a better market growth (Glushchenko,
2021). For the better product development management need to have a better strategies in which
it helps the business to gain a better competitive advantages.
Diversification- Pot Kettle Black have a proper growth and success in the market in
which it has a proper modification in the different market with the different segment and in its
new product. It helps to achieve the revenue as well as in the new market segment.
Pot Cattle Black growth of understanding by analysing options
Developing the market strategies- developing such marketing strategies which are
completed under the geographical area with the different market segments. It also helps the
market to develop different kind of strategies which will help in developing the new products as
well as decreasing the risk of competition.
Change of growth strategy- it is a very risky strategy which are used in the businesses for
the growth. It will basically need a more market products as well as the growth in the market in
which it helps to develop the market segment properly (Han and Kang, 2020). By this it can
easily be thought about the product growth s well as developing such market strategies in which
it helps to achieve the proper advantage. The growth strategy is sometimes more risky but such
challenges helps to get an easy return in which it helps to enhancing the business as well.
Selection of the better product and specific market strategy- organization have many
capabilities in which it helps to get the proper investment on the resources with the existing

market penetration as well. It is a less risky as well as having a faster growth in the market, in
upcoming era there may be had a growth in the food industries which helps to increase such
growth rate as well.
Strategy for the new product development- it clearly helps with the technologies in
which it helps to create different flexibilities for increasing different kind of satisfaction level of
the Pot Kettle Black (Henriques, Matos and Jerónimo, 2022). It has a proper growth with the
better quality of products in which present in front of the customers.
LO2
Available funding by the business for assessing the potential sources
There are the different kinds of sources in which some external and internal sources are
available for the growth of the organization. These different type of sources helps the SME's
with the granting the loans as well as helping in every stage as well. The funding which are
available in these sources is angle investor, peer to peer lending, crowd funding and bank loan.
Angle investor
Advantages-
 It is safe and not require any kind of security amount. It makes a quick and simple decisions regarding the investments.
Disadvantages-
 It takes much more time to find a compatible investor
 Business share does not require while taking a loan from the business angles
Peer to peer lending-
Advantages-
 The interest rate is lower for in this loan. To gain a higher return on the investment it helps in that.
Disadvantages-
 It has a much higher risks in which borrowers may find more suitability for taking suhc
loans.
 Governments are not likely to be involved in this investment or not gives any protection
for taking such loans.
Crowd funding
Advantages

 the role of this funding is to provide the loans to small businesses without charging any
kind of fee upon it. It gets the media attention in which it helps to get the more consumer base.
Disadvantages
 Company needs to be successive in their particular goal, because if it fails to reaching out
with that specific goal then the investor will not invest again.
 It is not a easy process and different from the other sources of funding as well.
Bank loan
Advantages
 It is a loan where the person needs to put any of the asset to the bank after that only bank
provides the loan. The owner will pay the proper interest but did not pay any kind profit percentage.
Disadvantage
 At the time of repayments sometimes it occurs the cash flow problems.
 The repayments need to be on that given time, otherwise the asset which are to the bank
may have a risk on that.
Sources of funding evaluation and justification for adoption of the appropriate source of finance
The suitable funding for the Pot Kettle Black is the bank loan and crowd funding.
Bank loan- this loan gets very easily which Pot Kettle Black take and it needs not to pay
at any kind of profit percentage which the organization is gaining (Hopp and et.al., 2018.). It
only pays the starting while taking the loan and then it not needs to pay any kind of charges in
the lifetime. Bank loans are more flexible and without having any kind of hesitation,
organization may get proper formalities. Against the asset company takes a loan and need not
provide any kind of the security amount.
Crowd funding- it simply helps small businesses and Pot Kettle Black is allowing the
specific funds which are in the different amounts which needs to run the business. The funding
are in any specific amount that would be the lower or higher amount. It helps the investors to
track such progress of the company in which it easily helps to promote their brand network as
well. Crowd funding helps to provide any kind of ideas which are used to convince the investors.

Potential sources of funding were critically evaluated based on the needs of the organization
Angle investors- it is having an easy and very quick investment in which it does not
require any type of such security deposits. The loans which are related to the business are needed
to be more specific with the loan. It will simply help the Pot Kettle Black in which it provides the
loan on the proper interest rate so it will have a difficulty to find an investor.
Peer to peer lending- it is required to fulfil the needs of the Pot Kettle Black in which it
creates a easy process to get the loan (Jukova and et.al., 2019). It allows to gain the highest
return on investment which will help to increase the growth on such different kind of sources as
well.
LO3
Business plan development and communication on scaling of business
The business plan in the context of the Pot Kettle Black:
Vision-
 to create a flexible and comfortable environment for the customers.
 To develop the better product quality. To gain the satisfaction level of the consumers with serving the delicious foods
Mission-
 Providing the better quality of services
 To provide the better quality services while serving the food. To have a better pricing strategy which attracts more consumer base.
Objectives-
 To launching the new products which have a better taste as compare to the existing
product which satisfies the needs and wants of the consumers.
 To increasing the sales by the 40 % in upcoming years. Till the next year it will increase its food quality and launch many products which attract
the customers.
Industry analysis-
It will use the PESTLE, to analysis the better country condition in which it is creating an
impact upon the businesses.
Political- many countries does not have a stable political conditions except UK, it has a
stable political condition which are affecting the Pot Kettle Black in positive manner. It may

have a very friendly and better political relations with the political leaders in the country which
will help them to get the better outlet for their business.
Economic- as after the Covid-19 pandemic it has created a negative impact upon the
country, because the unemployment rates are increasing and profits are decreasing rapidly.
Profits are the essential for run any business in which, this factor shows that the profit of the
business are decreasing frequently.
Social- changing the new trends which are increasing the profitability level as well as
increasing the productivity, which is creating a positive impact upon the Pot Kettle Black.
Business may have a proper focus on the changing in such trends, changing the lifestyles of the
consumers are increasing the efficiency level of the business.
Technological- Pot Kettle Black is making an advance and innovative technologies
which helps them to be more productive which helps to get the advantages from the product as
well (Mahdi, Nassar and Almsafir, 2019). It is basically creating a positive impact which are
attracting more customer base towards their business plan.
Legal- for changing in sudden rules and regulations it is creating a major impact on the
whole country condition in which it is creating a negative impact on the Pot Kettle Black. It is
ensuring with the labour laws as well as gaining an attention towards business.
Environmental- with changing the sudden environmental rule and regulations, which are
imposed by the government to be safer and happy environment. Changes in certain rule and
regulations which are related to the environment are creating a negative impact on the Pot Kettle
Black.
SWOT analysis:
Strengths- Weaknesses-

 Provides unique and innovative
products.
 It has a better customer services.
 It has a manual operating system.
 Market data collected by the
organization are very limited.
Opportunities-
 New technologies innovations with the
unique strategies.
 It has a product expansion opportunity.
Threats-
 Market competition are much higher
 Cash flow is difficult to maintain
properly.
Stakeholder
There are the different stakeholders are involved in the Pot Kettle Black are customers,
suppliers who are supplying the firms and coffee, investors and government as well. Pot Kettle
Black always prioritizes their employees which helps to fulfil the demand. It also helps to gain a
better result with this. The next stakeholder is customers, who are one of the essential
stakeholder for the business which are much-needed for the businesses. It needed the high
quality products in which it is related to the coffee and beverages as well. The suppliers are the
one who supply the different products on the wholesale which are included such firms and coffee
farmers as well.
Capital funding
This is mainly requires in a small businesses in which it helps them with the required
fund for the business. The same is used by the Pot Kettle Black with having a proper
management of such resources. There are different type of funding which are used by the Pot
Kettle Black is angle investors, bank loans and the crowd funding as well. But the focus of the
organization is on the crowd funding, in which it helps to get the better loan in a very average
interest rate (McKenzie and Sansone, 2019). Also, the venture capital are also the huge part in
which it helps business to take funds easily which it helps to win the contest as well as to
accelerate their opportunities. It easily helps with taking such loans from different kind of
government programs as well as it creates an easy process which helps to take the loans. It will
simply help with increasing the different kind of funds with the selling assets as well as the credit
cards. Crowd funding helps the business to get the sufficient amount which are help with its
business to gain a productivity as well.
Operational plan

Operational plan is helpful for the organization in which it can easily complete such
formations which are included in such development of the business. Also, it will critically help to
increase the better alignment for the innovations in which it shows such effectiveness of the
strategy management as well. The plan also includes the better competencies which are involved
into the operations and which are required the most.
Resource plan-
For having an effective use of the resources, managers and leaders are the one who are
always required to make such effective resource plan which knows the better resource planning
as well. People are the most valuable resources in Pot Kettle Black in which, it needed them to
grow in a business as well. There are some certain issues which are able to continue with the
form of the relation in the business.
Technology plan
It includes the advance technologies, emerging new websites and the such application
which will help the business to gain the customer satisfaction level. It includes many features
basically but these are the main which are at the priority of the Pot Kettle Black (Widardi and
et.al., 2020). It is using the technological plan in which it gets a better experience which helps to
gain a better technological advancement as well.
Risk factor-
It involves the major risk factors which are Muscle Strains, Sprains, cuts and burn are the
physical risk factors as well the cyber attack are also the part of the higher risk factor. There are
the risk which also involves the property related risks as well as the owner always prioritizes the
health of its employees. This cafe owner has always make sure that their employees health are
come first and all the way it is necessary as well.
Marketing plan-
It involves the 5 Ps which are important in conducting the marketing plan.
Product- there are many innovations are provided in the Pot Kettle Black's products in
which it helps them to launches unique products which are necessary for them. It also provides
the different kind of roasted coffee beans with the tasty snacks.
Price- product price is depended upon the market competition which shows its peak and
the management needs to increase the price or not.

Promotion- Pot Kettle Black are promoting its products by the involvement of the social
media platform as well as advertising through the television and newspaper are also the part of
its promotion.
Process- for having proper access with the operational process in which it helps to satisfy
the customer needs as well as their requirements which are essential for the organization to fulfil
it.
Physical evidence- for creating a such good impression it involves the better quality food
products in which it also increases the capability of the consumers as well. As compare to the
other cafe owners the physical evidence of Pot Kettle Black are better.
Time frame
Activities 1 Week 2 Week 3 Week 4 Week
Vision
Mission
Capital
funding
Operational
plan
Technology
plan
Risk factor
Marketing
plan
LO4
Owners of the small business can exit by assessing the various ways and implication on the
option.
There are some strategies which can be used by the Cafe owner are following:
Public offering- by offering the shares in the public or return to the investors are the one
which are counted as better exit strategy.
Benefits- it creates the possible approach in which it also increases the profitability as well.

Drawbacks- more time consumable process because until the investors found themselves
satisfied before investing will not invest in that market.
Liquidation- in this strategy the cafe owner sells its existing assets to buy the new one
and ensures about having a proper use of this strategy which will help the company as well.
Benefits- it is very easy to approach and there is no time boundedness in this.
Drawbacks- buying the second hand equipments are having more depreciation charge on it.
Keeping in the family- to offer the business into the family or friends by which handover
its shares to the known person who are more able to take care of the business. It does not
required to shut down the business.
Benefits- the family member or friend can easily handle the business without any hesitation.
Drawbacks- sometimes it can be reason of the conflict in the house.
Recommendations
 By keeping up the business into the family are the best strategy which are counted
as a tool to gain profitability which are more useful in the business. The owner
need to think very carefully before handover the business into a family, it needs to
select the deserving member who can take care of the business properly. After this
the cafe owner need to decide the proper process for handover the business, and
should know the consequences which can occurred by this process. It will easily
help the owner to select the perfect person for its business as well.
CONCLUSION
From the above report, it has been concluded that organization needs the planning for
growth and it will actually help with achieved the aims and objectives of the business. Whereas,
the growth of the business are specifically depends upon the planning which helped to know
about the advantages and disadvantages of the business. Although, the sources of funding are
also necessary for the business to expansion or launching the new product as well. There are
benefits as well as the disadvantages which can be had with these sources of funding, so
organization needs to know the better source which are better for them. Further, The report
provided the justification for adapting the financial sources according to the needs of the
business. To scale the business the report design the business plan through the strategic
objectives and the financial information for the business.

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