Society Cafe: Business Plan for Growth and Succession Strategies

This report provides a comprehensive analysis of Society Cafe's growth strategy, examining various aspects of its business operations. It begins with an introduction to the cafe, its background, and the competitive landscape. The report then delves into major evaluations for growth opportunities, including asset assessment, core competencies, and PESTLE analysis. It analyzes growth opportunities using Porter's generic strategies, the BCG model, and Porter's Five Forces. The report also explores Ansoff's Matrix to identify growth strategies. Furthermore, the report identifies various sources of fundraising and develops a detailed business plan for growth, incorporating financial information and strategic objectives for scaling the business. Finally, it addresses succession and exit plans for the small business, outlining their advantages and disadvantages, before concluding with recommendations for future growth.

Planning for Growth

Table of Contents
INTRODUCTION...........................................................................................................................................4
TASK 1..........................................................................................................................................................4
Major Evaluation for growth opportunities........................................................................................4
Analysis of various opportunities about growth through the use of competitive advantage and Ansoff’s
Matrix................................................................................................................................................6
TASK 2........................................................................................................................................................10
Identification of various sources of fund raising..............................................................................10
TASK 3........................................................................................................................................................12
Business plan for growth including the financial information and strategic objectives for scaling the
business...........................................................................................................................................12
TASK 4........................................................................................................................................................18
Succession and exit plan for small business with their advantage and disadvantage.......................18
CONCLUSION.............................................................................................................................................20
REFERENCES..............................................................................................................................................21

INTRODUCTION
Anticipating development is the administrative cycle which includes assessment of outside
business condition to decide open doors for augmenting income and deals by making ventures
into money related and different assets for upscaling and updating (Hu, 2016). Society café is a
quick bite café which is located in St Michaels Street of Oxford. The café was established in the
year 2011. It is a café which offers the excellent coffee which is preferred the mist by customers
and some small quick bites food. The café has 2 directors in it. The total number of employees
working in the café is between 10 and 15 with a turnover of 2 to 10 Euro million. The café faces
the huge competition from the market and some of the major competitors include Colombia
Coffee Roasters, George street Social, Formosan Tea Bar and etc.
TASK 1
Major Evaluation for growth opportunities
In the age of the present serious business condition where creation and assembling
exercises at expanding exponentially, it gets basic for each business association to continually
lead statistical surveying and recognize the open doors for business development and
advancement to keep up the intensity and determine economical business execution in the long
haul(Park and LaFrombois, 2019). A portion of the significant contemplations for assessing
various open doors for business development for the executives of Society Café are being
examined as follows:
Assets: Considering a development open door for any association requires a fundamental
thought of the current and the necessary assets also that assume the part of building blocks in the
development of an endeavor. Significance of considering assets for development openings
strengthens on account of little and medium business association, for example, Society Café
since these organizations have restricted monetary and physical assets. Thus, the administration
of Society Café ought to decide the current assets of the organization and the ideal degree of
assets for development opportunity and whether these assets are open to the
association(DODDS, DIMANCHE and SADOWSKI, 2018).
Capabilities: It can be named as the quality of a business association which decides its capacity
to convey uncommon incentive to the customers. Each organization has a novel selling
suggestion which gives solidarity to the association and goes about as the center competency.
Assessment of center skills is significant for the administration of Society Café to assess any
development opportunity and recognize the way wherein center competency of the association
can heighten or expand the capability of development opportunity.
PESTLE Analysis:

It is system of vital administration that is actualized to investigate the effect and impact
of outside condition changes on the inner dynamic and activities. The administration of Society
Café ought to investigate and think about the accompanying outer variables for assessment of
development openings:
Political Factors: It incorporates factors, for example, government intercession and strategies,
dependability in a business domain etcetera. For thinking about any development opportunity,
the administration of Society Café needs to consider it with the political measurement to decide
if the development opportunity has a positive effect or a negative contact as for government's
strategy and rules(Kumar, 2016).
Economic Factors: It incorporates factors, for example, level of salary, charge rates, import-
trade rate etcetera. Financial variables decide the market favourability of the development
opportunity and business advancement methodology. For instance, with the ascent in level of
salary, a business chance to build the nature of food items at expanded costs can be defended for
the administration of Society Café because of an ascent in level of family pay.
Social Factors: Social components are fundamentally worried about buyer request and conduct
which impacts the dynamic cycle of each business association. A business association may
choose to put into a business opportunity which isn't in amicability with the shopper patterns and
increment the danger of misfortunes. Subsequently, the administration of Society Café needs to
consider buyer requests, for example, expanding request of solid food items and put resources
into a business opportunity which lines up with the social elements(Baschat, 2018).
Technological Factors: Technological advancements and improvements have developed at an
exponential rate introducing open doors for business associations in each industry. Thus, the
administration of Society Café ought to assess the development opportunity with thinking about
the mechanical changes and advancements. For instance, advancement in food handling
innovation which expands the span for which food can be shopper etcetera.
Legal Factors: Every nation has a lot of rules and guidelines for overseeing and observing the
direct of organizations and organizations in the area which ought to fundamentally be considered
by the administration of little and medium business associations. For instance, the administration
of a private venture may settle on growing business universally which requires a thought of rules
and guideline of other nation and consistence with equivalent to resistance can prompt hefty
fines and complexities.
Environmental Factors: In the previous decade, natural activism has expanded a great deal
because of concerns introduced by a worldwide temperature alteration and environmental change
affecting the business tasks. Thus, the administration of private companies needs to decide if the
business opportunity positively affects the earth or not. For instance, opening up new stores may
be an open door for the board of Society Café to grow however the effect of business
development should be resolved as opening more stores converts into utilization of more energy

and characteristic assets and an alternate course of action must be readied(Gounaridis,
Chorianopoulos and Koukoulas, 2018).
Analysis of various opportunities about growth through the use of competitive advantage and
Ansoff’s Matrix
Porters generic strategy for Society café:
Cost leadership: It is strategy in which the organisation seeks focus upon the its cost. The
organisation makes the prices for their offered products or services low as compared with other
competitive organisation just to gain the competitive advantage. In this strategy the major focus
is put upon the ways organisation can minimize it’s lost by minimizing the cost for production.
As in the case with Society café the prices set by the organisation is quite high as compared with
the other café. Therefore the café does not gain adopts the strategies for cost leadership.
Differentiation: This strategy seeks focus upon producing the products which is very much
different from the products which are available in the market. Here the differentiation is
something upon which the organisation puts its focus. Here the quality matters not the cost for
the product. As in the case with Society café, the produces the fine quality coffees and breakfast,
although the prices for these are quite high. Through maintaining the quality the organisation
achieves the competitive advantage in the market.
Focus: In this strategy the organsiation focuses upon satisfying the needs and desire of a
particular segment of customers only. They only operate in a niche market. Through satisfying
the needs and wants of such people the organisation gains the competitive advantage in the
market.
As in the case with Society café, it uses the differentiation strategy for its operations. The
café does not try to make any compromise with respect to their quality. The prices set by the café
is high but the satisfaction level is equal to the price paid.
The BCG model for Society café is as follows:
Question mark: These are the products with high market growth but very low in respect to
market share. As in respect to Society café the café produces some tasty but limited morning
breakfast menu which is preferred by majority of customers. The menu set by the café has the
high product growth among the customers but as the café only produces them for breakfast only,
it has the low market share.
Stars: They are the products which are very much famous among the customers. They are high
in market growth as well as they are also high in market share. As in the case with Society café
the coffees which it brew and makes is the best for the customers. The café is majorly famous for

the coffee which it offers to the customers. These are the products which provide the huge profits
to the café and come in the category of star products.
Cash cows: These are the products with the low product growth and with the high in market
share. As in respect to the café, it manufactures different varieties of biscuits which are produce
in buck but are yield low profits to the café as only a part of customers prefers to bring these
biscuits manufactures by the café. But the café has noticed that slowly but steady the sales and
demand for these biscuits are increasing time by time. This shows that these products have the
capacity to come in the category of Star products later.
Dogs: These are the products with low product growth and also with the low market share. The
company manufactures some chocolates which currently has low product growth and also less
ion market share. These products are manufactured from the profits which are earned from the
star and question mark products. The café wants to continue with this product only just to
increase their product diversifications.
From the BCG presented above, it is clear that majority of profits the company earned
from Star category product i.e., coffee. The company can also yield more profits from the
products of question mark category if they increase its market share. Apart from this the
company can make some improvements if they want the dogs’ category products to become
Cash cows at least.
Porter’s Model of Five Forces:
This instrument of vital administration is extremely imperative in assurance of the quality of
serious market powers and recognizes the upper hand for an association in its industry.
Investigation of Porter's five powers for Society Café is as per the following:
Purchaser's Power: It is a solid power for the administration of Society Café since there are
various business associations and organizations with immense speculation working in the food
business and the exchanging costs are low which empowers the purchasers to overwhelm the
exchange and appreciate the best nature of items at extremely serious costs.
Suppliers's Power: It is a feeble power since the organization has overseen great associations
with a scope of providers incorporating solid associations with the cultivating network too to
acquire crude materials straightforwardly from the ranches and get the best nature of items at an
all around arranged cost as the exchanging costs are additionally irrelevant.
Danger of substitutes: Society Café offers a wide scope of espresso items including hot and
cold fermented espresso, different refreshments, cakes and sandwiches etcetera and the quantity
of substitutes for these items is extremely high which expands the danger of substitutes for the
organization(Wey, 2019).

Danger of new participants: It has been seen that because of the allure of food industry,
numerous business associations especially at little scall have begun entering the business with
remarkable incentives for the clients, for example, advancement of smart dieting propensities
with a pleasure for the taste buds too making the danger of new contestants a high power for the
association.
Serious Rivalry: Food industry observes a hardened rivalry with various firms running from
large café chains, for example, Starbucks or Costa Coffee to numerous nearby shops and bistros.
It makes value wars, broad showcasing and utilization of deals special devices, item
advancement etcetera a typical component of the business to keep up the seriousness and
subsequently, serious contention is a solid power for the administration of Society Café(Wey,
2015).
Ansoff's Matrix:
It is one of the most critical instrument of vital administration that gives a system to supervisors
to devise and investigate future development heading and technique. The model gives four
distinct bearings of vital future development for an association and furthermore helps in
1602765199 (1)recognizable proof of the danger and measures to kill hazard related with every
course(Hu, 2016). According to the Ansoff's Growth Matrix, the different vital development
choices accessible for the administration of Society Café are being assessed as follows:
Market Penetration: It is the principal bearing for key development of business where
endeavors are made to expand the deals of existing items in the current business sectors with the
assistance of broad utilization of apparatuses of deals advancements, for example, limits,
cashbacks, vouchers etcetera. With regards to little and medium associations, market infiltration
is the alternative which has least chance and can be actualized viably for cultivating higher
income age plan of action. For instance, the administration of Society Café can offer client
dependability projects to increment monotonous deals and actualize client referral programs for
pulling in more clients and informal exposure of the organization. Counter from different
contenders which can prompt more broad value wars is the essential danger of market entrance
that can be disposed of with the assistance of conservation procedure where the supervisors of
the organization can zero in on investing aggregate amounts of energy on most significant items
and benefits and pulling back minor endeavors(Yu, Yanxu and Bojie, 2019).
Product Development: As the name proposes, item improvement is a key development
alternative accessible for private ventures where the organization offers an advanced and novel
scope of new items in the current commercial center and business region for amplification of
income and business development. It helps in expanding market strength and setting up a stage
for long haul supportable business execution of the association. For instance, chiefs of Society
Café have an open door for business advancement with the assistance of offering solid food
items and developing the current scope of food items being offered by the organization. Potential

danger related with the cycle of item advancement for private companies is fluctuating degrees
of enhancement in the whole creation innovation and segments for developing items which can
be hard to support for independent venture association and the administration of Society Café
can deal with this danger with the assistance of apparatuses, for example, hazard register to
decide the probability and the effect of various dangers(Tian, 2016).
Market Development: In this, the association offers the current items and administration in
another business region or market zone. For instance, opening of new stores by the
administration of Society Café. Essential danger associated with market advancement is
organizing the advertising exertion in various geological area and the absence of required market
information which can be disposed of with the assistance of statistical surveying and basic
examination(Khajezadeh and et. al., 2019).
Diversification: For little and medium business association, expansion methodology is the most
least secure procedure where the firm offers new items and administrations in new market
territories which includes an extremely enormous measure of venture and whenever turned out
badly, can hamper the benefit of tasks for a significant stretch in future. For instance, offering
new sound items in another store is an expansion methodology for the administration of Society
Café which has potential dangers, for example, pressure from investors or danger of losing
venture. The administration can take out these dangers or control these dangers with the
assistance of vital arranging and collaboration between different offices in the association and
having a reliable dependent on successful statistical surveying and field preliminaries(Wey,
2019).
In view of the above assessment, item improvement can be suggested as the most appropriate
system for business development and advancement for the administration of Society Café which
can expand deals and encourage high income for the organization with moderate danger(Bridge
and Dodds, 2018).
Discuss options for growth for analytical framework
To above analysis it is examined that the Society café adopts the various options for
growth in terms of future perspective. In this they can adopts the use of PESTLE and porters
generic model that helps in ensuring the competitive advantage within marketplace. In this it also
helps in examine the external factors so that firm will easily analyzed opportunities and threats
so that best strategy can be select out. In this ansoff matrix provide the suitable option for
success and position the company within competitive market.
Critically evaluate options and pathways for growth

From above scenario it is critically evaluated that there are several options and pathways
for the business growth and success. In terms of Society café can examine the best options that
are suitable for growth and setting the success pathways. in this organisation can examine the
market development strategy so that they can effectively gain high profits by targeting the new
market. This also ensures in beating the rival firms and helps in their longer survival.
TASK 2
Identification of various sources of fund raising
Wellsprings of reserve can be named as the diverse elective alternatives from where a
business association can meet its present moment and long haul monetary prerequisites. Diverse
accessible wellsprings of store for the administration of Society Café are as per the following.
There are basically two type of sources of funding i.e. internal and external that can be shown
below:
Internal source- This defines as those options that are present within the company for
generating the funds for their future growth. It involves retained earning, sales of assets, working
capital etc.
External source- It refers to those source of funds which the company can collect from
outside the business entity to expand and grow the organization. It involves various sources such
as equity share, bank loan, leasing, hire purchase etc(Hess and Sorensen, 2015).
Following are the several sources that are useful for the Society Cafe:
Retained Earnings:
It alludes to the measure of benefit which has been retained by a business association after
installment of fixed intrigue and profit commitments. Private company associations can consider
retained earnings as it is a fitting wellspring of assets which is in effect basically assessed as
follows:
Preferences:
•It is a practical strategy or wellspring of assets because of disposal of any intrigue or profit
necessities (Mobin, Li and Komaki, 2017). It doesn't include any weakening of control in the
business tasks and the power to settle on choices can be brought together.
Detriments:

•Reinvesting the benefits earned once again into the organization can result into demonization of
investors and strife with their inclinations. It can result into over-capitalization.
Bank loan
It refers to that amount which is borrowed by the company from the bank in the promise
of paying some fix interest to the bank within a specified period of time. As it is very effective
and safe for using this source of fund to finance the operations of the business unit. In case of
Society Cafe this source of fund is containing both positive and negative aspects that can shown
below:
Advantage:
 One of the best benefit of bank loan is that interest rate is fixed and it is decided in
advance at the time of taking loan. As it is the type of secured loan due to this company
cannot face the any issue regarding payment and anything else(Agyemang and Silva,
2019).
Disadvantage:
 Main disadvantage of this type of fund is that in this company can grant the loan against
some security so that if the firm will fail to pay the amount of loan than bank will seized
the organization security.
Overdraft
It is one of that source of fund in which there is a agreement between the two parties i.e.
customer and financial institutions in which the bank can exceed the limit of withdraw than their
actual amount.
Advantage :
 As it is one of the most common and flexible source of fulfilling the financial needs
where one person can withdraw the extra money that is beyond their balance at any time.
Disadvantage :
 Major disadvantage of this source of fund is that the organization can pay the
arrangement fees to their financial institution or banks for their extra credited money.
Loans from relatives: The entrepreneur can also take the loans for his close family members or
from his friend to the expanding or financing purpose. Family for example parents help their
child in properly establishing their business by providing them the money. Funds provided by
them can be returned by the entrepreneur whenever he has money. when the funds are provided
by these people, the entrepreneur does not went through the burden of providing or giving back

the funds on time as it saves him from interest also and the monthly payment of installments. But
there is always a risk carries with this point as it can hinders the relationship between the
entrepreneur and the relative from which he has taken the money, that can be consider a
emotional loss.
Angel investors: these are the people with finances who major business is to invest into the
business. The angel investor would finance the whole business idea if he thinks that the idea has
the capacity to perform better in the environment. But convincing a angel investor is a very hard
task as they only put the money where they believe would a return. Also finding an angel
investor is a tough job. These investor controls the operational activities and some also exercise
the decision making power once they invest in the business which something can be an annoying
activity.
From the above analysis it is to be analyzed that Bank loan is the best source of fund for
Society Cafe because it is one of the most secured type of loan. In this firm will pay the fixed
amount of interest. As it is very flexible in nature that is best for the SME firm. As this helps in
expanding the business so that high profits can be attained. It also have low interest rate due to
this Society Cafe does not feel pressure to to pay the high interest. Because of this it is the best
source of fund to generate and arrange financial resources for expanding business.
Evaluate potential sources for funding and justify suitable source
To the explained sources of funds it is evaluated that for Society café bank loan is the
best source of fund to arrange the financial resource for market development. as it is one of the
best and secured type of loan in which the bank can set the interest rate that is fix at the time of
taking loan so that firm will not face the issues at the time of repayment because they arrange
the funds effectively and efficiently. It will helps In enhancing the image of the organisation in
marketplace.
TASK 3
Business plan for growth including the financial information and strategic objectives for scaling
the business
Business plan refers to that outline document of the company that includes the strategies
and policies for attaining the specified goals and objectives in effective and efficient way within
a specify period of time. It considers the essential information that is related to the activities and
functions of the business firm. Developing business plan is significant because it gives the
various knowledge regarding vision, mission, objectives and financial budget etc. Implementing
the business plan helps in executing the several policies and strategies that are related to
investment which gives successful results to the firm. In case of Society Cafe that is a small
business in UK offers the quality food to their consumers want to expand the business in some