Prufrock Coffee: Business Plan for Expansion and Growth Strategies

This report provides a comprehensive business plan for the growth of Prufrock Coffee, an independent coffee shop located in London. It begins with an analysis of key considerations for evaluating growth opportunities, including PESTLE analysis and Porter's generic strategies. The report then applies the Ansoff Growth Matrix to assess expansion opportunities, such as market penetration, product development, market development, and diversification. Furthermore, it evaluates potential sources of funding available to businesses, detailing the benefits and drawbacks of each source, including angel investors, bank lending, crowdfunding, and family/friends. The report culminates in a detailed business plan outlining objectives, vision, and mission for the company's expansion, including strategies for increasing employee retention, profitability, customer experience, and market share. The plan also details technological factors, and potential exit strategies, providing a thorough framework for Prufrock Coffee's future growth.

PLANNING FOR GROWTH

Table of Contents
LO 1.................................................................................................................................................3
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context....................................................................3
P2 Evaluate the opportunities for growth applying Ansoff Growth Matrix...........................5
LO 2.................................................................................................................................................6
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source.......................................................................................................6
LO 3.................................................................................................................................................7
P4 Business plan for growth of company...............................................................................7
Technological Factors............................................................................................................9
LO 4...............................................................................................................................................10
P5 Exit or succession options for a small business explaining ........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Planning is considered as the fundamental management which determines the more than
one to accomplish optimum balance as well as the demands within the available resources. The
planning process recognizes the goals and objectives to be achieved, make strategies to achieve
them successfully as well as implements, monitors and direct all the necessary steps in proper
sequence (Abolhasani and et.al., 2016). Growth is known as the progressive development within
the individual oneself as well as the organization. Here the report explains the evaluation growth
opportunities of the organization. Here, Prufrock coffee shop served brewed coffee for both the
young and old people located on the lovely leather lane in clerkenwell london, United kingdom.
this Report also highlights the various generic models and strategies.and also9 highlights the
ansoff growth matrix and also potential sources of funding available to businesses and discuss
benefits and drawbacks of each source.this report also lay emphasis on the pestle analysis for
Business plan for growth of company.
LO 1
P1 Analyse key considerations for evaluating growth opportunities and justify these
considerations within an organizational context.
PEST ANALYSIS-
Political factors-these are the factors which tells us that how the government can influence the
economy for example when a government can introduce new tax schemes which may impact on
the organization or a particular company. It would also include political policy as well stability
and trade and fiscal (Bagheri and et.al., 2018).
Economical factors-These are the factors which influence on the economy as well a
performance of the company. It directly impacts the profitability of the organization. For
example factor include inflation, interest rates, employment and unemployment. These factors
may impact directly and indirectly long term effect of the company and it also affects the
purchasing power of the people and could also fluctuate the demand and supply of the customers.
Social factors-These factors highlights the social environment as well recent trends of the
market. Such as safety measures, health factors, lifestyle attitudes, educational level, cultural
trends. Social factors are especially important for the market people when targeting the specified
customer (Birkin, Clarke and Clarke, 2017).

Technological factors-factors which consider the innovation within the technology and
development that will affect the organization favourably and unfavourably both. By knowing
what is going in the market will helps to prevent the companies to spend a lot of money. for
example factors include the changes in the digital technology and mobile technology a well as
research and development (Duncombe, 2017).
Environmental factors-these factors plays a vital role due to the increasing scarcity of the
resources as well pollution targets etc. these factors include the ecological and environmental for
example climate change which also may affect the tourism sector as well as farming and
insurance. Here it will raise the importance of the CSR (Corporate sustainability Responsibility).
Above factors can affect the Prufrock coffee shop.
PORTERS' MODEL OF GENERIC STRATEGIES-These generic strategy can be introduced
to give the strategy to the organization. Michael porter can use the four strategies in order to
achieve the goal of an organization to beat the competitive market. The two basic types of
competitive advantage combined with the scope of activities for which a firm seeks to achieve
them, lead to three generic strategies for achieving above average performance in an industry:
cost leadership, differentiation, and focus. The focus strategy has two variants, cost focus and
differentiation focus.
Cost leadership-here the objective is clearly defined to become the lower cost producer within
the industry. Here there are two choices within an organization can react one is to keep the cost
as low as possible or to make sure that broad market have average prices. In both the cases the
organization can focus the cost as low as possible. If an Organization can achieve overall as well
sustain overall cost leadership then it will be considered as the above performer in its
organization (Keough, 2015).
Differentiation- when a company targets the high demand market then its products have unique
features. While following this strategy makes product as unique as possible also, makes it more
attractive than others products in the market. This strategy is also known as the uniqueness with
exceptional price.
Cost focus-when a company target the market which has little competition and provides the
lowest possible price. Here to choose a target in niche market and by understanding the wishes of
the customers as well the dynamic approach of the market (Stein, 2018)..

Differentiation focus- in differentiation focus a company has to target niche market with unique
features. This strategy involves the brand value of the company in front of the customers. It plays
a vital factor to maintain the uniqueness of the product in order to stable in the compensative
market.
Above porter's strategies can be followed by the Prufrock coffee shop.
P2 Evaluate the opportunities for growth applying Ansoff Growth Matrix.
This is a planning and marketing model for business, that help them to determine its
market and product growth strategy. The outcome of Ansoff Growth matrix series of suggested
strategies which sets direction for business strategies, these are the four strategies in Ansoff
Growth Matrix (Kim, 2017).
Market Penetration
In this strategy the business concentrate on selling more of current products in the current
market. This can be done by focusing more on distribution, promotion of existing products. This
is the least risky strategy and more effective for small businesses. PRUFROCK COFFEE is an
independent coffee store in London, if the firm want to increase their sales it needs to do more
promotion in all means in local market and improve their distribution channel, that will increase
the sales by attracting more local customers but it has a drawback too it will only attach the
consumer who resist or work nearby (Levesque, Bell and Calhoun, 2017).
Product Development
Product development is known as strategy where a business introduce a new product and
try to sell it in the existing market. This will attract a wide range of consumers to the existing
firm this will require development or the modification of the product. PRUFROCK COFFEE is
coffee store, if the company want to increase their sales by introducing new product in the
market they have to do a lot to research about the taste of consumer who work or resists nearby.
This will help the firm to attract more and new customers, but it has a drawback too. It will
increase the cost of products and it requires a lot of time (Rodríguez-Rodríguez and et.al., 2016).
Market Development
This is a type of strategy were the business try to enter a new market and try to sell their
existing products in it, this requires a lot of money to rent/ purchase a new place. This will help
the company to target more areas around the globe and will increase the brand value and have
international recognition of the firm If the coffee store want to use this strategy they need to

find a new market for their existing product, this may increase the market share of firm and can
attract more customers whether in local or new market but it has a disadvantage too, the firms
require lots of investment, research and time (Stein, 2018).
Diversification
This is the most risky strategy because in this strategy the firm is entering into new
market with almost zero or a little experience about the product this will require lot of research
and investment because the product and the market are both new for the firm. From this strategy
the firm to cover both different segments of the products and different type of consumers. If the
coffee shop uses this strategy they can collect more revenue and help the company firm to
increase their business activity day by day because the are selling different products worldwide.
The disadvantage of this strategy is that it is most risky and chances of failure are more
comparatively (Wear, 2016).
From the above study it has been summaries that all the strategies of Ansoff Growth
matrix will help the business to promote its sales. Some are more risky and highly profitable and
some are safe but will just push a little higher profits. The coffee house (PRUFROCK COFFEE)
shoing market and a good command on their existing customers, introducing new product will
help them to attract new customers and the old customers won't get boor from existing products.
LO 2
P3 Assess the potential sources of funding available to businesses and discuss benefits and
drawbacks of each source
Potential source of funding for business.
Angel investors-they are the investors who often have business background and wants to invest
funds in the business in exchange for share of fairness .some investors work within the groups
and provide funds in groups while most of them with their own (Wu, 2015).
Pros - They provide valuable advices and views since they are experienced about the business.
Flexible business terms are also provided.
Cons - forced resisting control on business at some degree.
Bank lending-banks are the major source of funding to companies like short term lending and
medium term lending. Short term lending are like short term loans up to three years and medium
term lending are the loans which have period from three to ten years.
Pros -various funding option depends on the needs of the customers.

11 If qualified properly the funding process is quite easy11 No need of give up control on business (Abolhasani and et.al., 2016).
Cons-here requirement of lots of documentation, can also be tiring as well time taking.uld opt of
the product development strategy because they have good knowledge about the exist
Literate people must needed about the option available for people, otherwise there is huge loss in
the business.
Money has to be return whether business is successful or not, loss in business leads to the loss of
assets (Bagheri and et.al., 2018).
Crowdfunding-it includes the funds for a business by taking small amount of funds from people
from large group of people through internet. Usually this kind of funding is work through the
vast circle of family, friends and colleagues from different networks to attract the goal of
accomplish the new investors.
Pros-for expanding business it has sufficient potential from huge numbers of investors who raise
the funds.
Cons- requirement of time and dedication before the results may appear.
Friends and family-a request can be done from the close friends and family to help in raising the
funds (Duncombe, 2017) .
Pros- faster and flexible payment methods are available here.
LO 3
P4 Business plan for growth of company
Company Information
Prufrock coffee is an independent coffee store located on leather lane, Holborn, London.
They serve wide rage of coffee, bakery and seasonal food they also provide training.
Business Plan
Business plan is a written document which states all the details about future plans and
goals of the business. Prufrock coffee is currently planning to open multiple store across United
kingdom.
Objective
To increase their employee retention rate up to 20 percentage in one year.
To increase profitability by 10% till the end of year 2020.

To enhance consumer experience by 20% in the upcoming 3 years.
To gain the market share by 2% till the end of year 2021.
Vision
The vision of the store is to open more coffee store across United Kingdom, and United
States of America.
Mission
The ultimate mission of the firm is to get international recognition and operate
worldwide.
SWOT Analysis
Strengths
Goodwill
Customer satisfaction
Quality products
Weakness
Lack of fund
Lack of store recognition
Deals most in coffee, bakery and seasonal food
Opportunities
Increase in markets share
Increase in Brand value
Worldwide recognition
Threads
International competition
Different laws
Exchange rate
Pestle Analysis
Political Factors
The firm need to consider all the political factors such as tax policy, import policy
employment policy etc. the trade policy of USA are Flexible it will surely have a positive impact
Environmental Factors
The environment factor that can affect the coffee store are environmental rules and
regulation and natural disaster in countries which export coffee. USA doesn't have their own
coffee farm and it is the biggest of coffee . It may be a barrier for firm.
Socio-cultural Factors

The major socio-cultural factor that firm need to think about are change in family pattern
from UK to USA, lifestyle, consumer taste. People of USA consumer more coffee so its an
opportunity for the firm.
Technological Factors
In this the firm need to be up-to-date on technology and machinery. If they or not updated
it will have a negative impact on firms goodwill. Since USA in technology hub and almost every
MNCs are their so this maybe a challenge for the firm.
Legal Factors
The thing's coffee store need to consider are licensing of the firm in different country,
trade policy and consumer policy. The legal factor are different not much different from UK to
USA, this will be a positive factor for the firm.
Economic Factors
This factor includes the exchange rate, taxation level of the country, economic condition
and the standard of living of people. Standard of living of people are almost same as UK's.
Taxation is little different in USA but it may not be such a big problem.
Marketing mix strategies- marketing plays a crucial role in customers satisfaction as well as
quality of products. Here are 4ps marketing strategies which describe the marketing strategies.
Product-when it is comes about the product its quality, packaging, unique feature, design should
be considered. prufrock cafe sells various types of coffee for the customers .example espresso
coffees, cafe latte in vanilla, filter coffee etc.
Place- prufrock cafe located on the lovely leather lane in clerken well London, United Kingdom.
Promotion-Promotion can be done through the social media like Facebook, twitter.
Prize- prufrock cafe uses prizing strategies.
SEGMENTATION TARGETING AND STRATEGY(STP)
Segmentation- prufrock cafe identifies the customers needs like which type of product(coffee)
they want ,in what quantity.
Targeting-here prufrock cafe focussed on the young people aged from 16 to 22 years old as well
old people aged from 60 to 75 years old as per according to their taste and quantity.
Strategies- prufrock cafe always focussed the strategies to attract the customers like weekend
days discount offers give to customers specially for old people they get more

discounted ,attracted furnitures and smart workers who can handle the customers and their needs
with smiling face easily.
Financial plan
Items Cost
Operating Cost € 5,000
Direct Expenses € 2,000
Advertising and promotion cost € 1,000
Salary and Wages € 2,000
Total € 10,000
Monitoring and controlling-here key performance indicators used in monitoring and controlling.
Key performance indicators-it is a measurable value to measure that how effectively and
productively an organization can perform to accomplish their goals and objectives. Company
uses key performance indicators to evaluate their success at specified reaching targets. Each
department uses the kpi for evaluation of their department based on specific targets and
objectives. it can be done by using dashboard reporting software by evaluate the whole
organization performance. for example digital marketing matrix and KPIs ,SEO KPISs to track.
LO 4

P5 Exit or succession options for a small business explaining
EXIT STRATEGY
Exit option is that option which is apply if prufrock cafe fails to generate revenue to run the
international business.
Now there are several exit strategies that prufrock cafe can choose to recover from the loss that has
occurred or to control the future of the company or business these are as follows :-
LIQUIDATION
This is the wind up strategy in which the cafe can sell all the assets to recover the amount of
loss that have been occurred .There are some advantages and disadvantages of this strategy these
are as follows :-
ADVANTAGES:- by adopting this option this company can have the following benefits:-
legal action stops :- by adopting liquidation option the action which is legal against any
company ends up, therefore the company cannot be pressurised by any of the creditors (Julius
Giarmarco, 2017).
Clear all debts:- by adopting this strategy of liquidation there is the option in which the
company can write off all the outstanding debts If the director of this company have any personal
guarantee that was made for the purpose of any company debt than there is no legal liability to
repay the money which is owned by the company itself.
leases are cancelled:- if prufrock cafe has done any agreement of lease or hire purchase it
will be cancelled at the time of liquidation means there is no need to pay any amount in future
(Abolhasani and et.al., 2016).
DISADVANTAGES:-there are some disadvantages the company can face while adopting the
liquidation strategy that are as follows:-
Selling of all assets: - all the assets will be sold by adopting liquidation option means there
will be no assets further to invest to any new business, whatever assets which are existing in the
business will be given to the creditors (Hawkey, 2017).
Wrong allegation: - there is an investigation which is conducted by the department of
business ,skill and innovation if the investigation is successful and it is against the directors they
could experience severe problems of fees or the directors can face the situation of not acting as a
director for 15 years
Increase personal liability:- if the director has made any personal guarantee against the debts of
the prufrock cafe then the director will be responsible (How to Pick an Exit Strategy for Your
Small Business, 2019).

CONCLUSION
From the above report it was concluded that planning for growth can support the various
business strategy there are many sources for Business plan for growth of company used here
segmentation, targeting as well strategy for the customers' satisfaction, in above report also
concluded that the pestle analysis, marketing mix strategies as well as performing monitoring and
controlling where key indicator is used to evaluate the performance of the organization. Reporting
it can also be done by using dashboard reporting software. In above report also done swot analysis
where focused the strength and weakness as well opportunities and threads .

REFERENCES
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Julius Giarmarco, J.D., 2017. The three levels of family business succession planning.
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Online
How to Pick an Exit Strategy for Your Small Business. 2019. [Online].Available through <
https://www.thebalancesmb.com/small-business-exit-strategies-2947988>