Society Cafe: Evaluating Growth, Funding, and Strategies

This report examines the growth strategies for Society Cafe, an independent coffee shop. It begins with an introduction outlining the objectives, followed by an analysis of growth opportunities using PESTLE analysis and VRIO framework. The report then evaluates growth strategies using the Ansoff matrix, considering market penetration, market development, product development, and diversification. It assesses potential funding sources, including personal savings and bank loans, discussing their benefits and drawbacks. The report also includes a business plan and explores exiting strategies. The conclusion summarizes key findings and recommendations for Society Cafe's sustainable growth and expansion within the competitive market. The report emphasizes the importance of strategic planning, financial management, and market analysis for business success. The report is contributed to Desklib, a platform providing AI-based study tools.

Assessment
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1 Key consideration for evaluation of growth opportunities for society cafe...........................3
P2 Evaluation of growth opportunities using Ansoff matrix.......................................................5
LO 2.................................................................................................................................................7
P 3. Assessing the potential set of sources through which funds are available for the business
and also discuss the benefit and drawback of each source..........................................................7
LO3..................................................................................................................................................9
P4 Business plan..........................................................................................................................9
P5 Exiting strategies..................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Business in order to grow and expand its business operation have to planned several steps
that needs to be taken so that end goals can be achieved in the best possible manner. Company in
order to diversify its operation needs huge amount of capital or finance so it have to evaluate
several sources and select best possible among them for smooth operation of business. This
report is about society cafe is an independent coffee shop in heart of Oxford city centre that
make great coffee to fulfil needs of customers. The report has contained information related to
key consideration for evaluation growth opportunities of firm. It has also discussed about
potential sources of fund available to company, business plan and existing or succession
strategies that are able for society cafe.
MAIN BODY
LO1
P1 Key consideration for evaluation of growth opportunities for society cafe
Pestle analysis is an effective framework that can be used by management of company to
understand key opportunities that are available in external environment that can helps in growth
and survival of enterprise. There are several factors that acts as an opportunities for society cafe
operation in United Kingdom such as:
Political condition: Government of UK have made several policies to encourage small business
to expand their operation so that GDP of country can enhanced and more individuals can get
employment. Such as government have implemented free trade regulation that have provide
opportunity to society cafe to grow its operation in both domestic and international market.
Economic condition: Covid-19 has resulted in economic recession in UK which in turn leads to
overall decrease in disposable income of individuals so they are preferring products or services
that are available at low price. So, Society cafe has opportunity to attract maximum customers by
providing coffee at minimum rates (Takeaki, 2019).
Social factor: Most of the people like to drink coffee so company have opportunities to increase
its sales and profitability by maintaining taste of coffees. Society cafe by amending taste,
ingredients as per existing taste and preferences can easily motivate customers to be part of firm.
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Technology: with changing trends, technologies are also changing and people are making use of
innovative technology such as smart phones to book products online. Therefore, society cafe by
making investment in digital technology can easily market or promote its business to large
number of customers in limited time frame thus able to gain competitive advantages.
Environment factor: There are several enterprise that make ineffective utilisation of resources
or more amount of wastage that have resulted in threat of natural resources and environment. So,
people as well as government have become more concerned about protection of resources
therefore Society cafe by taking steps towards sustainable management can easily get
competitive advantages (Gamidullaeva, Vasin and Mkrttchian, 2019).
Legal factor: There are several legal laws that are made by government so that enterprise can
easily operate their business operation like employment, health and safety, working hour and
discriminative. Society enterprise by following ethical principles and legal values can promote
growth and expansion of business.
Resources based view and core and capabilities view
VRIO or resources based view is use to understand core capabilities or strength of
company that helps it in expanding its business operation. Like
Basis Valuable Rare Imitable Organised
Technology Yes Yes No Yes
Human resource Yes No Yes No
Organisation
culture
Yes No Yes Yes
Products and
services
Yes Yes No Yes
Valuable: It can be understood from above table that all resources of firm such as technology,
human, organisational culture and products and services are valuable that helps in influencing
maximum customers.
Rare: Only technology and products that is varieties of coffee delivered by firm are rare that
helps in gaining and retaining competitive advantages.
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Imitable: Other competitors can easily have similar type of organisational culture or hire human
resources that have similar skills and knowledge to perform specific task (Ratten and Usmanij,
2020).
Organised: Except human resources, others basis such as products, culture and technology are
organised in particular manners that helps in performing task within limited time frame.
New products and services: Society cafe have opportunity to add new customers by introducing
new products range in cafe such as organic food, ice cream or can provide home deliver services
to customers. So that customers can easily eat or consume as per their leisure and conveniences.
Identifying and mitigating risk: It involves some amount of financial risk as company is
planning to launch new products to meet customer’s expectancy. The associated business risk
can be easily mitigated through conducting effective market research in order to know existing
trend and taste and preferences of individuals.
Exploitation of technology: There are several technologies like digital that have contribute in
reducing cost and maximising profit of organisation. Such as Society cafe can easily market its
products to wide range of customers through social media platform like Twitter, instragram and
Facebook that are mostly used by younger generation (Cooper and Maio, 2019). So, company by
exploiting or making optimum utilisation of new technology can gained competitive advantages
in external environment.
Collaboration: Company by collaborating or forming partnership with other firms can easily
grow and expand its business operation across worldwide. It has opportunity to merger, form
joint venture with local firm to enter into ne market segment to enjoy high profitability and
market share. So, all these are several alternative growth options which could be considered by
society cafe while planning for growth and development of company.
P2 Evaluation of growth opportunities using Ansoff matrix
Ansoff matrix has its root in paperin 1957 by Igor Ansoff that have suggest four areas or
direction that can be used by enterprise to grow and expand their operation in domestic and
international market. It also helps in understanding associated risk with each alternative options
and the way they can be effectively minimised so that company can easily grow and operate its
business (Market, 2016). Such as:
Market penetration: It is strategy in which firm make use of existing products and services to
meet existing market needs thus it involves less amount of risk. Company is highly aware of
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existing preferences of customers, alternative options available or key competitors thus can
easily enhance its overall profitability. Society cafe can make use of market penetration strategy
by changing in its marketing styles so that more and more individuals are motivated to select its
products or service rather than other competitors in market. In this strategy company through
using marketing mix, or sales promotion , discount offers and other method can influence
existing target market to prefer existing products and services.
Market development: It is second growth strategy in which organisation decided to develop
new market or enter into new market segment with existing products and services. Thereby,
society cafe by making use of existing product portfolio and brand image to deliver qualitative,
tasty and delicious coffee can grow its operation in international market. Company through use
of digital technology can create awareness among people about type of products and services in
which company deals thus influence them to taste and have fun (Butt, 2016). Another options
that can be fruitful for society enterprise is collaboration with another local firm that have more
knowledge about taste and preferences of individuals thus organisation can easily cover local
market in limited time.
Product development: It can be stated that in this strategy company focus on introducing new
products and services to meet existing needs of customers. So, society enterprise by adding new
products within company can make existing customers base happy and satisfied. Thus,
motivating more and more individual to have its products in order to fulfilled their respective
requirements. Company before pursuing this strategy need to conduct deep analysis or market
survey in order to get information what are unsatisfied wants of individuals and the way they can
be fulfilled in best possible way. Society cafe can make use of social platform to gather
information related to existing taste and trends of customers thus find better strategies that can
lead in growth of enterprise.
Diversification: It is last and most risky strategy, as in it company plans to enter into new
market with new products so it may also result in damage to brand image or existing operation. It
is risky because company is unaware about situation and condition prevailing in new market thus
the new products may not helps company in enhancing its profitability (Harmer, 2020). Society
cafe in order to pursue diversification strategy needs to have more depth research about
preferences of people or existing condition so that it can get maximum outcome.
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From the above analysis and discussion of several strategies it can be suggested that Society
cafe needs to make use of product development strategy as it involve minimum risk and
maximum outcome. Company by introducing new products can quickly add new and existing
customers to have products in order to satisfy their respective requirements. At the same time
company have more knowledge about existing market so it can easily attain its objectives.
LO 2
P 3. Assessing the potential set of sources through which funds are available for the
business and also discuss the benefit and drawback of each source.
Source of fund is considered to be one of the key prominent measure which in turn is
mainly subjected to the transaction between Customer as well as the financial institution.
Funding is considered to be as the act of providing resources to finance a programme of project
or need of the company.
Personal capital or savings: It is considered to be one of the most prominent and easy
source of finance for the small business (Avazov and Maxmudov, 2020). When the company is
in the need of capital the entrepreneur of the company can tap into the personal assets like
mutual funds, stocks, jewellery and you will state in order to raise money and mitigate the needs
of the company.
Benefits of Personal capital or savings
One of the key significant advantage associated with the personal capital and personal
savings is that it is one of the easiest Source of fund through which it is useful in using the
money for the small business to carry out the functions with utmost degree of accuracy. It is
considered to be useful because it gives more control over the business and other finance options.
It is one of the prominent way to access the funds.
Drawback of Personal capital or savings
One of the biggest disadvantage linked with the personal capital is that in case the
business fails the owner of the company might lose all the personal possessions. Another major
disadvantage linked with the personal feeling is that minimum balance requirement has to be
maintained and low interest rate is given on the savings.
Bank loan: It is another one on the key prominent way or source of fund to raise money
for the small business (Kozubikova, Homolka and Kristalas, 2017). In order to get loan from the
bank the minimum criteria Associated with the Bank loan has to be qualified by the small
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business. A bank loan is considered to be as amount of money which has been borrowed for the
specified set up period with agreed repayment schedule. However, interest-rate has to be paid
upon the bank loan and there is no need to provide specified Share of the business to the bank.
Benefits of Bank loan
One of the biggest advantage linked with the bank loan is that it is useful in keeping
control of the business and also perceived ability of the services by making payment in lump sum
or in full. It is considered to be significant in providing flexibility to raise funds through bank
loan.
Drawback of Bank loan
One of the biggest disadvantage linked with the bank loan is that it charges higher
interest rate. It is also difficult for the small business to qualify for the bank loan until unless they
have substantial track record or has valuable collateral.
Venture capital: It is considered to be one of the key significant source of fund for the
small business. Here, the fund is provided by the outside investor to effectively invest to finance
into a new business idea (Setiadharma and Machali, 2017). It is considered to be as for private
equity and also a significant type of financing which the investors provide for the start-up
companies as well as small businesses which are believed to have high degree of long-term
sustainable growths and potential for the future.
Benefits of Venture capital
The venture capital is one of the key significant source of fun because it is useful for the
small business to grow quickly. The source of funds is useful in building networks and
connections for the small business and is also significant for creating wide set of opportunity for
the expansion of the business.
Drawback of Venture capital
One of the biggest disadvantage linked with the venture capital source of fund is that it
leads to dilution of the control and ownership in the small business. The investors tend to take
stake of the company which eventually leads to divides the profit share.
For the Society Cafe, Bank loan is considered to be as one of the key prominent measure
through which it is useful in improving the business functions with great degree of accuracy and
utmost degree of key relevance. This is one of the easiest way for the entrepreneur of the Society
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café to raise funds for the business. This way it is useful in keeping full control over the business
functions.
LO3
P4 Business plan
The society cafe will be focusing on establishing new working efficacy business plan
where there are various parameters to be analysed, for keeping larger working goals actively
wide within new scenarios.
EXECUTIVE SUMMARY: The business plan will be analysing various aspects of new
strategies for taking new steps into business scenarios, for competitive strength and larger work
growth domains by enhancing menu services and digital market presence.
About company: Society cafe is new cafe where there are various organic food services, menu
with well classed facilities and large convenient facilities.
Aim: Society cafe aims to open cafe with best facilities, highly convenient culture for guests and
also to be largely working on diversified productive new enhanced menu.
Vision: The vision is to form best cafe and expand into various cities of UK, with large
productive services in menu, food items through which businesses will be expanded further.
SMART objectives (Malerba and McKelvey, 2019).
 Specific: The cafe will be specifically focusing on bringing organic food products within
business horizons, \which will attract larger customers.
 Measurable: The cafe services are measurable and based on functional innovation, to
create functional growth and larger business services.
 Attainable: The targets are attainable for cafe, where strategic planning will be use within
functional working paradigms to bring on new work growth efficacy.
 Relevant: Its also relevant within long term products targets.
 Time target: The objectives will be attainable in period of 6 months
STP: Segmenting: The society cafe will be focusing on segmenting parameters among various
customers based on preferences and larger productive services, where there will be keen
target growth based on market demands.
 Targeting: Cafe will be targeting business customers services by innovative marketing
strategies, larger technical growth and also competent functional revenue goals.
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 Positioning: The positioning will be done based on working growth operational
parameters to program out growth objectivity goals, develop competitive work
operations.
Marketing strategies:
 The society cafe aims to market out various innovative marketing strategies based on new
functional innovation, productive diversity of wide operational growth scenarios and
digital aspects shall be actively explored on varied domains by keeping up competent
working strength.
The marketing strategies on digital platforms will enable business to be competently wide, also
determined horizons to be worked on with diverse attractive strategies and higher innovative
planned structure (Maul and Stam, 2020).
Budget: The financial investments projections will enable business to be worked on with
planned working domains strategy, vision for pertaining higher growth among operational
innovation and efficacy among larger functional domains.
Required amount for expansion of business Amount
Building 10000
Equipments 2000
Labour 1000
Technology 1500
Vehicles 4500
Other asset 500
Total Fixed Asset 19,500
Operating Capital Amount
Pre- opening salaries to workers -
Inventory 2500
Prepaid insurance premium 100
Rent Deposit 700
Legal and accounting fees 200
Advertisement cost 1000
Total 45,00
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Sources of funds to be used: Venture capital and bank loans will be used as source of funds for
gaining effective funds and capital for investments, which will keep building new larger goal
productivity. The society cafe by using these sources of funds will be able to form informative
working scenario for generating larger competent efficacy aspects, and to be yielding higher
productive goals worked on.
Monitoring and controlling: The strategies and objectives of business plan will be monitored
and controlled with new functional innovative digital platforms where consumer’s feedbacks can
be analysed widely. The advanced monitoring and controlling will enable business to
competently grow on varied target arenas, explore technical working domains which hall be
explored for keeping up higher efficacy goals widely.
P5 Exiting strategies
There are various business existing strategies through which there will be informative and
strategically enable business to exit if it is undergoing losses at present, and also avail larger
functional advancement to be competently focusing on higher efficacy aspects. Existing
strategies have larger functional importance for keeping up larger work goals in future, based on
various situations and exit targets (Hossain, Whiteside and Mercieca, 2020).
Liquidation: The liquation is focused on aspects where assets are sod to repay creditors when
business closes down when business is undergoing losses and are not able to repay financial
debts. Liquidation is also understood to be mostly used within existing business strategies where
all assets are liquidated, main aim is to collect its assets and determine outstanding claims for
satisfying larger claiming scenarios widely. Benefits of liquidation are based on the fact that it is
easy to form and attain where resources and assets can be sold easily, which will enable larger
work efficacy. The drawback is that liquidation is not widely legal , and takes legal toll within
future operations.
Mergers: Another exit strategy that can be used by company is merger or acquisition in order to
continue business and expand its operations, where company is amalgamating with another
company where operations are correlated with each other. (Vai and et.al., 2017). On the other
hand some entrepreneur plans to acquire another business that have enough resource, capability
and brand image to increase its market share and profitability. Advantage is based on company
has also right to negotiate on various terms and services pertaining on varied arenas, where price
of agreement for smooth operation of business is wide. Disadvantage is based on fact that merger
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is based on the fact that there is higher informative demand for legal efficacy aspects, which may
be difficult to be attained. Mergers also let business to redefine its business parameters widely,
also scale up larger goals advanced for keeping up higher working goals analysed to be widely
productive on new arenas.
Management buyout: This strategy is based on fact that when management wants to sell all
assets the various assets and resources can be sold within functional arena, where employees
groups form strategies to buy company assets based. The advantage of this is based on fact that
all assets and liabilities are known among employees along with management services which
makes owner easy to pass on company within them. However the disadvantage is based on fact
that all time employees may not be widely sufficient for capital collection for management
buyout. Out of all exiting strategies Society cafe shall use the management buyout, as it is highly
easy for capital to be reattained, also it becomes easy for management to be informative and
employees to contribute for exiting fundamentals. There is also future growth within working
scenarios with competent advanced functional strategies to be formed on higher efficacy aspects,
larger work domains to be focused on (Henrekson and Sanandaji, 2020).
CONCLUSION
This report can be concluded with explanation that planning for growth is highly
important for companies to expand their functions on various horizons with changing
competitive business culture and rational technology usage. Society cafe, company business
operations can be concluded within this report that there are varied growth parameters of various
innovative tools, diverse functional capabilities among employees through which the company
can later gain huge profits. Report has concluded various efficacy scenarios for planning of new
scale business domains among specific customers services widely, where there are higher
working productive goals analysed. Sources of funds such as venture capitals and bank loans,
business plan formulation which are based towards latest marketing needs through which
company can gain competitive edge benchmarks.. Society cafe company with continuous success
and functions being highly integrated with latest technology factor can connect with the varied
industry demands, leverage business gaols.
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