Strategic Business Planning for Growth: CAFEPOD Coffee Co. Report

This report provides a comprehensive analysis of CAFEPOD Coffee Co.'s growth strategies. It begins with an introduction to growth planning and its importance for business development. The report then analyzes key considerations for evaluating growth opportunities using the PESTLE model and Porter's generic strategies. It identifies suitable growth strategies using Ansoff's growth vector matrix, exploring market penetration, product development, market development, and diversification. The report assesses potential funding sources, discussing the benefits and drawbacks of each, and designs a business plan for scaling up the business. Finally, it discusses succession and exit plans for small businesses, outlining their advantages and disadvantages. The report uses CAFEPOD Coffee Co. as a case study, analyzing its specific context and offering tailored recommendations for achieving sustainable growth.

Planning for Growth

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analyse key consideration for evaluating growth opportunities and justify these
considerations within an organizational context..........................................................................3
P2. Opportunities for growth using Ansoff's growth vector matrix............................................6
TASK 3............................................................................................................................................7
P3 Assess the potential source of funding available to businesses and discuss benefits and
drawbacks of each source............................................................................................................7
TASK 3............................................................................................................................................8
P 4 Design a business plan for growth that includes financial information and strategic
objectives for scaling up a business.............................................................................................8
TASK 4..........................................................................................................................................12
P5. Succession or exit plan for small business with its advantage and disadvantage...............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Planning for growth is necessary for the development and improvement of company in
market. It is a strategic business process and activity which consider growth plan and
development strategies made by business owner. It allows company to proactive in every
situation. Planning for growth in business brings many benefits such as it allows businesses to be
proactive in every situation, it help to set proper direction of growth, it help to enhance
operational efficiency and also market shares and business profitability. The organization is
taken for this report is CAFEPOD Coffee Co. It is a Craft Coffee company establish in 2011 and
founded by Peter Grainger and his partner Brent Hadfield in London, United Kingdom. This
report analyses the key consideration of growth opportunities with the help of external
environmental factors. To evaluate the external environmental factor company use PESTLE
model. And to identify the growth opportunity for business, company use Porters generic model.
With the help of Ansoff's growth vector matrix, this report identify a suitable strategy for the
market growth and design a business plan to expand the growth in other market. This report
explain benefits and drawbacks of small business.
TASK 1
P1 Analyse key consideration for evaluating growth opportunities and justify these
considerations within an organizational context.
Every organization needs some growth opportunities so that organization prepare plan to
increase market growth. Proper planning for growth is very significant for each and every
businesses to achieve common objective. CAFEPOD Coffee Co. is the small company and want
some growth opportunities so that company can expand business in other market location. There
are many key consideration are given. With the help of these consideration company evaluate
growth opportunities ((Hu, 2016).
On the basis of key consideration company use PESTLE model. With the help of
PESTLE model, company analyse and evaluate the external environmental factors which help to
identify growth opportunities in market.
Political factors - This factors deal with taxation policy, trade restrictions and
government stability which gives impact on the external environment. These factors are

uncontrollable for the business. CAFEPOD Coffee Co. want to expand their business so its
important to consider the political factors. With the help of this factor company easily identify
the opportunities. CAFEPOD Coffee Co. follow all the procedures and rules of the government
so that it will help to take the political advantages. Customers and clients of the company also
consider this factor that company is followings proper rules and regulation of government or not
so that if company is following all the government procedures then it will give positive impact
on customers and clients mind and company can easily expand their business all over the UK.
Economical Factors – This factor includes interest rate, wage rate, minimum wage,
exchange rate, unemployment rate and also over all economic growth of the company.
CAFEPOD Coffee Co. company need to measure the economical factors so that company easily
understand the economic scenario. Economic factors influenced a business a lot. For small
business it necessary to consider this factor. According to the market and economic condition
CAFEPOD Coffee Co. need to work on operational margins and then prepare budget for
expanding their business in other market area. In this time, there is unpredictable economic
environment because of Brexit in UK so company need to more focus on growth opportunities to
expand their market (Park and LaFrombois, 2019).
Social Factors – This is also known as social culture factors. These factors includes
population growth rate, culture norms, age, career, safety etc. with the help of these factors it
identify that what is acceptable socially or good for the society. CAFEPOD Coffee Co. consider
this factors and evaluate the demand of products. Company offering coffee and drinks products
so company evaluate it market demand and analyse the social demand of the product. Coffee is
a most demanding product and liked by every culture and age group people so its easily for the
company to get opportunity for expand their market.
Technological factors – This factors consider changes in technologies in context of
business to get the more growth opportunities. In this current time, every businesses is
incomplete with out technology. In this time online shopping is on demand so CAFEPOD Coffee
Co. need to use some advance technologies for their products sand operations. With the help of
technologies, company function smoothly. Company also start business in online platform and
home delivery so that customers easily take advantage of company products.

Legal factors – These factors includes law policies, rules and regulation of the
government such as import and export, legal procedures, materials etc. it is necessary to follow
all the laws policies and rules
These are the factors, which includes rules and laws imposed by the government and includes
import and export tariffs, access to material etc. this is difficult to follow all the laws of the
government in order to run the organisation successfully (Leick and Lang, 2018).
Environmental factors – In factor contains sustainable resources and those resources
which helping to save the natural environment with the help of following environment laws.
CAFEPOD Coffee Co. need to follow all the environment law it will hap to save the natural
environment for example use carry bags and hand bags rather than plastic bags. CAFEPOD
Coffee Co. need to more focus on the environmental activities to enhance the growth
opportunities.
On the basis of consideration to evaluate growth opportunities, CAFEPOD Coffee
Co. use porter's generic model. With the help of this model company evaluate that how company
take competitive advantage and competitive scope. All the strategies of Porter's generic model
are given below-
Cost leadership strategies – This strategy is used by the low cost producers. In this
strategies, company sell products at low cost so that they can take competitive advantage.
CAFEPOD Coffee Co is a small organization and company want to expand business in other
areas so its important to focus on the cost of the products. Company offer their products at low
cost as compared to other companies so it make easily for the CAFEPOD Coffee Co to to take
competitive advantage and take growth opportunities (Sell and et. al., 2018).
Differentiation Strategy – This strategy is use for the product development. Company
offer specific and unique products so that company will get a valuable response of customers.
And, customers satisfy with the uniqueness of the product which is totally different form their
competitors. CAFEPOD Coffee Co offering quality coffee for coffee drinkers. Company coffee
available in supermarket and also online retailers. CAFEPOD Coffee Co differentiate their
product as per the customers requirement and demand so that they can find different and
delicious taste.
Focus Strategy – This strategy mainly focus on narrow segment so that segment can
accomplish either cost advantage or differentiation. The need of the company is to more focus on

the services. With the help of focus strategy company can achieve a high degree of customer
satisfaction and loyalty. CAFEPOD Coffee Co analysing and set their focus on the market
situation. In this strategy, company focus on the cost advantages and also product differentiation.
For CAFEPOD Coffee Co organization, cost leadership strategy is suitable because
CAFEPOD Coffee Co is a small company and want to expand business in other areas of UK so
its necessary for the company to focus on the cost leadership strategies. Company need to offer
their products at lower cost so that people of UK easily purchase coffee and company get
customer’s satisfaction. CAFEPOD Coffee Co set coffee price low as compared to the other
company through this company growth opportunities increase in market and company will take
competitive advantage (Colantoni and et. al., 2016).
P2. Opportunities for growth using Ansoff's growth vector matrix
Ansoff matrix is a strategic tool which is used by an organisation in order to develop its
market image by following suitable strategy among four strategic options described under this
model. These strategies include the following:
Market Penetration
The market penetration is a strategy followed by company to serve to existing market
with the existing product. This will help in company to gain more market share in the current
market. CAFEPOD Coffee co. can be benefited in this strategy by focusing more on the
promotional tool to increase the sale of its existing products and this could be in favour of
company as with reduced renewable sources the consumers can be attracted more to purchase
existing offerings. The company can use its current existing market to gain the new and existing
consumers trust. The satisfaction of the existing customers can be restored by focusing more on
after sales service. This is one of the most favourable growth strategy which can be followed
upon by the company with less cash flow diverted in comparison to other strategies (Zhou and et.
al., 2017).
Product Development
In product development strategy the company focuses on new product development to
serve to the existing market. CAFEPOD Coffee co. is using this strategy to its advantage by
investing heavily on research and development cost. The company needs to have the proper
market knowledge before launching any product. The new product development could be the
different versions of existing product or launching whole new products.

 Market Development
This strategy is focused on serving to new markets with existing product portfolio.
CAFEPOD Coffee co. is using this strategy by focusing on to enter new markets. The company
can focus on to enter new untapped markets which can offer them more opportunity to increase
in its brand image. The one of the markets where CAFEPOD Coffee co. can hit is India due to
having huge demand of people that wants to consume coffee.
 Market Diversification
The diversification is one of the strategy which is serving to new market with new
product. CAFEPOD Coffee co. should work on developing diverse product line as they are
having the great research and development team and company can focus on entering new
markets also by analysing the opportunity and threat present in the new market. The company is
working on towards developing the existing offerings and can be planned on more to diversify
the product range. The company can even collaborate with other companies to bring in new
product this will result in synergy of the resources (Rudolf, Kienast and Hersperger, 2018) .
TASK 3
P3 Assess the potential source of funding available to businesses and discuss benefits and
drawbacks of each source.
Source of funding is important for every start-up and small businesses enterprise. Every
Company required financial resources to start business. There are many sources of funding
which are given below-
Angel Investors – Angels investors are the private investors. They mainly invest on new start-
ups and small business. These investors are wealthy individuals who provide funds to the
entrepreneurs and in exchange of funds they take a shares of equity in the company. The size of
investment is generally less then 1 million. Most of the time angel investors work in a team and
their screen deals and also invest with each other rather than invest own.
 Benefits – Angels investors have experience of investment and industry they can offer
good advice and also introduce company to their network. Angels investors are helpful
and less rigid and compared to the VC firms (Zhou and et. al., 2017).
 Drawbacks – they can force to give up few degree of control over your business. There
is high risk.

Bank financing – Bank loans are the most flexible source of funds but some time it become
tricky because there are various kinds of bank financing option and interest rates available . Its
important to learn and educate and learn yourself about the whole terms and conditions and
options before going to take bank financing.
 Benefits – bank provide a range of funding and also payback options according to your
needs and requirements. If your complete all the procedures then bank will provide quick
funds.
 Drawbacks – Bank financing is a very complex process. In this , company owner need to
provide the large number of documents that is very time consuming.
Venture Capital Funding – Most of the businessmen think that VC is the key of successful
business. In ventures capital funding includes investors who want to put forward the large
amount of fund in exchange for equity shares in the businesses. They are professional investors
who provide money at a large level (Kumar, 2016).
 Benefits – The main benefits of the VC is that they provide large amount of
money at once and they also offer expertise and another assistance that is good for
the growth of the company.
 Drawbacks – VC take important steps to take the returns on their funding.
venture capital is all about the money.
All the funding sources are playing a prominent role and every funding sources is
offering their best services. For CAFEPOD Coffee Co company need to consider all the funding
sources. CAFEPOD Coffee Co is a small business organization so the most appropriate for
CAFEPOD Coffee Co is ventures capital funding. Ventures capital funding offering quick
credibility to company. This is also provide their services to the vast network of individuals ,
futures investors and partners. So it is good to CAFEPOD Coffee Co to use VC funding.
TASK 3
P 4 Design a business plan for growth that includes financial information and strategic objectives
for scaling up a business.
CAFEPOD Coffee Co is a small company that offer craft coffee to the UK people.
Company providing quality of coffee to their customer who love to drink coffee. It bis a very

creative and innovative business. Company want to expand their business in other UK areas.
CAFEPOD Coffee Co design a business plan for the development and growth of the business
Mission
the mission of CAFEPOD Coffee Co organization is to offer high street coffee and
expand their business all over the world (Nikolopoulos and et. al., 2020).
Vision
The vision of the CAFEPOD Coffee Co organization is to change the whole scenario of coffee
in UK and Europe market so people can easily excited buy coffee in local areas.
Objectives
CAFEPOD Coffee Co company want to build a suitable coffee market that their customers
enjoy coffee at home with the help of coffee blends (Wey, 2019).
SWOT Analysis
With the help of SWOT analysis company identify its strengths, weakness, opportunities and
threats as per the current market scenario. The SWOT analysis of CAFEPOD Coffee Co are
discussed below-
Strength
 company deals with the hospitality
industry so this is the biggest strength of
the company.
 Company have customers loyalty because
their delicious coffee taste liked by
everyone
Weakness
 The size of the company is very small.
 Lack of financial resources.
Opportunities
 This company expand their business in
other market areas.
 Company can get good market growth
opportunities by variety of products.
Threats
 Economic condition is uncertain.
 Huge competition in hospitality
industry.
Segmentation

CAFEPOD Coffee Co company design business for the growth of the company,. In this
strategy company understand whole scenario of segmentation and after than segment their
market as per the requirement of the company. CAFEPOD Coffee Co company segment their
market as per the requirement. There are many factors of segmentation. CAFEPOD Coffee Co
company segment their market according to the demographically. In demographical factors
company focus on age group , income and occupation of the people (Andreoni and et. al., 2019).
Targeting (Abolhasani and et. al., 2016).
In this strategy company target middle class people and university and college students.
CAFEPOD Coffee Co mainly focus on target market to expand their business all over the world.
The main concern of the CAFEPOD Coffee Co is target those customer who can buy their
coffee easily so that company set low price policy to target large numbers of students and office
people.
Positioning
CAFEPOD Coffee Co focus on promotional activities to increase their market position.
This is a small scale company so company only use social media platforms to promote their
products because advertisement on television is very expensive. To maintain their products
position in market company promote their produces with the help of posters and banners
(Pathiranage, Kantakumar and Sundaramoorthy, 2018).
Financial Information

 Budget - Budget refers as a financial plan and it is necessary for each and every
industry. Budget includes an estimation of profit and expenses over a future period.
Budget can be prepare for the individual, group, business, company, government. With
the help of budget company can easily manage all the resources (DODDS, DIMANCHE
and SADOWSKI, 2018).
 Cash flow – It is a real movement of fund. Cash flow increase or decrease in amount of
fund in context of business. It bis most essential for the accounting process of the
company. Company also prepare cash flow statement to maintain each and every records.

TASK 4
P5. Succession or exit plan for small business with its advantage and disadvantage
The expansion of market reach and new customers is good option when the company has
successfully catered to existing market and created its successful brand image in the existing
market. The company can further expand by various plans:
Mergers: In mergers, the company acquires new identity by merging with another company of
same industry. In this the company receives new brand image.
 Advantages – The CAFEPOD Coffee co. can have access to new and increased market
area when going in for merging. The company will be able to have result of synergy of
merging with another company (Perveen and et. al., 2017).
 Disadvantages – The merger will result in unemployment of excess staff and it may
create confusion and uneasiness to maintain the culture of organization.
Franchise: The franchise is an option to expand where the owner of company gives
permission to franchisor to carry out its business which gives it processes information and gives
them permission to carry out its business in return of certain fees.
 Advantages – This is a good option to go in for as there is a brand image created already
and customer loyalty exist. It will result in reach of more market.
 Disadvantages – The initial investment can be high as according to the brand. The
creativity will be limited of to add or change the product line.
Acquisition: The acquisition is where the company purchases the another company belonging to
the same industry to increase its operations.
 Advantages – The acquisition offers many advantages such as it provides the option for
more growth and will have access to the new technology and operation process.
The acquisition will result in more increase in market. The acquisition results in
formation of core competencies (Swan and et. al., 2018).
 Disadvantages – The acquisition may result in the loss in financial resources as the
purpose for which it is acquired it may not be served it will result in loss of
finance. The company may face difficulties such as culture integration problem,
resistance from employees etc.
The CAFEPOD Coffee Co. can go for the acquisition option to have access to increased
resources as they can acquire small coffee cafes and renovate it and start serving their own

brand. This will help in more market reach. The CAFEPOD can also go for the franchise option
as it will help the brand to reach to untapped market.
CONCLUSION
As per this report, it is concluded that planning for growth is playing a essential role in
every businesses and firms. In this report PESTLE analysis is used to analysed the external
environment situation and also evaluate the growth opportunities. Porters generic model helps to
identify that which marketing strategies are beneficial for the company. Cost leadership
strategies is most appropriate strategy to enhance the market product in other areas. This report
also design a business plan for the growth of the company. In this business plan company
evaluate all the market scenario and analyse their market situation as per the whole market so
that company easily expand their business and cover all the market of United Kingdom. This
report also identify the strength and weakness of the company so that company easily analysed
their strengths and take competitive advantages and also work on their weakness so that
company can accomplish their objective and goals.

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