Business Growth Strategies: Apple Tree Coffee House Analysis

This report provides a comprehensive analysis of growth strategies applicable to the Apple Tree Coffee House. It begins by examining key considerations for measuring growth opportunities, including resource management, capabilities, and core competencies, and the application of Porter's generic strategies. The report then delves into the Ansoff Growth Vector Matrix, exploring market penetration, market development, and diversification strategies. Furthermore, it identifies potential funding sources such as angel investors, government grants, and family/friends, evaluating the benefits and drawbacks of each. A business plan for growth is presented, incorporating financial information and strategic objectives, alongside a SWOT analysis and market analysis. The report also explores research and development considerations, and concludes with an examination of exit or succession options for the small business. The report offers practical insights and strategic recommendations for the coffee house's expansion and sustainable growth.

Planning for
growth

Table of Contents
INTRODUCTION :..............................................................................................................................3
P1- KEY CONSIDERATION FOR MESAURING GROWTH OPPORTUNITIES :.........................3
PORTER'S GENERIC STARTEGIES :...............................................................................................4
P2 – ANSOFF GROWTH VECTOR MATRIX :
..............................................................................................................................................................5
P3 - POTENTIAL SOURCES OF FUNDINGS AVAILABLE TO THE BUSINESS : .....................6
P4 – BUSINESS PLAN FOR GROWTH THAT INCLUDES FINANCIAL INFORMATION AND
STRATEGIC OBJECTIVES :..............................................................................................................7
SWOT ANALYSIS :.............................................................................................................................8
MARKET ANALYSIS :.......................................................................................................................8
RESEARCH AND DEVELOPMENT :...............................................................................................9
P5 - EXIT OR SUCCESSION OPTIONS FOR A SMALL BUSINESS : ........................................10
REFERENCES...................................................................................................................................13

INTRODUCTION :
The growth of business have the strategies which have the profitable effect on the business
and there are various growth opportunities which have the consideration in an organisational
context. In this report there will a lot of context which will be very useful for any business for the
growth and evaluation of the organisation and it will cover up the Ansoff's growth vector matrix in
consideration with the The Apple Tree coffee house for having the different types of funding for the
business for the benefit of the organisation. There are certain type of business plan for the financial
information with the strategic objectives for scaling up a business along with the benefits and
drawbacks of the each source funding that was available to the business. Lastly , there will be a
elaboration about the exit plan strategies for the business.
TASK 1 :
P1- KEY CONSIDERATION FOR MESAURING GROWTH
OPPORTUNITIES :
As per today's environment the business is competitive and it is an important aspect for any
business to plan the growth and development for their business and on an constant basis as it helps
the company to maintain the long time success and sustainability in the industry and it benefits the
competitive advantage over the competitors. There are certain essential factors through which the
growth and opportunities of the business evaluate in the market and in context to Apple Tree , those
factors are : (AhmadiAlizadeh2018)
 RESOURCES : It is one of the most essential and important requirement for any business
for having adequate resources covering physical , financial , human or technology resources
of the business. Having the sufficient amount of capital provides convenience to the owner
to run the regular operations of the business.
 CAPABILITIES : It demonstrate the requirements of the plan and strategies of the business
for the implementation of the growth plan and strategy for having the skilled human
resources in the management all of these factors helps the business to grow and makes the
business owner to realise the goals and efficiency of the business.
 CORE COMPETENCIES : It enables the enterprise to offer new and unique value to its
customers. It is necessary for any kind of business in today's world to use high end

technology in their business so that they can offer much better quality services and product
which can be the main competence of the business as it helps in gaining the high
competitive benefits in the specific market.(,Ali2021)

PORTER'S GENERIC STARTEGIES :
It is a strategic tool that elaborates how an organisation formulates competitive benefits in
the particular market. These strategies has been adopted by the organisations for gaining the
competitive benefits and further it involves 3 strategies for pursuing the high competitive advantage
in the specific market (AnwarAltermanFroidevauxFasbender2020).
 Differentiation : By the differentiation strategy organisation targets to be the irreplaceable
in their business industry. The organisation selects one or many features which is very vital
and unique position for any consumer for knowing he requirements and rewarded as the
high price for the business.
 FOCUS : Focus strategy applied by the business when company start focusing on the
narrow competitive scope in its own industry. There are 2 variants cost focus where
company pursues cost benefits on the target customer segment and on the other hand
differentiation focus aims to have the uniqueness for their services and products in their own
sector.
 COST LEADERSHIP : The strategy where a business sets out to turn a low cost business
in the industry so depend and varied are the sources of cost benefits on the structure on the
industry. The business user of this strategy shall identify to use all the sources of the cost
benefits as it might comprehend the pursuance of economics of scale , superior access to raw
materials ownership technology etc.
For aiming the competitive benefits by the Apple Tree it can apply the differentiation strategy in
which the business would be able to provide the goods and services which are completely
distinctive from other business in the leadership along with that they can serve the green or organic
coffee in their business or having the art or musical shows can enhance the engagement of their
customers which will help them gaining the attention of the customers and having the growth in
their business(Chernev2020).

P2 – ANSOFF GROWTH VECTOR MATRIX :
Ansoff Matrix is the tool which offers the framework for supporting the senior managers and
executives to evaluate the strategies for the growth and development of their business. The ansoff
matrix look upon the market development and penetration with the development of the product as
and the diversification strategies which are the growth alternatives that could be effective in other
markets for evolving the product.
 MARKET PENETRATION : It gives an extract for growing the business which has been
already present in the market with their goods and services and the exact aim of this strategy
is to enhance and promote it's market share by focusing on the new potential customers in
the same market or getting more sales from the existing customer base. The main beneficial
aspect of this strategy is lowering the amount of the product which will increase the demand
in the product and services and increasing the market share and the only potential risk is that
the customers might(Daniel2018) loose the interest and the profits margin on the product
will be deducted.
 MARKET DEVEOPMENT : The strategy where the company exploit the present goods
and services and try to evolve in the different market place. This would be a compromise
expansion to a different municipalities and it is more risky as compare to the market
penetration strategy and it helps in providing the innovation of the product by having the
opportunities for growth and development of the business by the change in the products and
services and the demerit of this strategy is this could cost more expensively if the research
and advertising is not getting the results in a proper way(MalheimLeachMelicher2020).
 DIVERSIFICATION : This strategy applies by the matrix when an organisation wants to
set up in new marketplace with new goods and services. It has been considered as the most
riskiest strategy as the organisation involve the untested goods and services of which they do
not have any experience in. The advantages of this strategy is it helps in raising the revenue
of the business by adding new products and services in the market which enhance the
opportunities for the evolution and recognition of the brand. The disadvantage of this
strategy is that if the requirements of the customers are not satisfying enough then it could
lead to the downfall in the revenue of the business and reduce the productivity of the
workers in the business.

The Apple Tree can go with the diversification strategy because it is best for the growth of
their business as it could expand the business through adding new beverages or food in the menu
list and modify their services. It should apply the appropriate research for testifying the new
customers because it carries a huge risk in this strategy.
TASK 2
P3 - POTENTIAL SOURCES OF FUNDINGS AVAILABLE TO
THE BUSINESS :
The sources of funding are very vital for the any business to enhance as it contributes to the
financial resources for the need of the project and program of the business and these funding could
be for short and long both period of time and as per the business of the Apple Tree there are some
sources through which they can generate the funds for their business :
 ANGEL INVESTORS : These investors has the finance background and do have the funds
to invest in other's businesses by providing the investments to the business owners in return
of the shares of their business. They provide their knowledge and experience to enhqance
the growth of the business and it is not complexed and risky because the investors already
have the know;edge and experience to provide to the business and provide the mentorship
the growth of their business(Milne.2020). The only demerit of these investment is that they
take heavy returns for their investments which might be 10 times more of the actual funds
plus the risk of loosing control in the business ownership as well.
 GRANT BY EUROPEAN GOVERNMENT : The financial aid by the government of
United Kingdom and the European Union has a tough competition and has a certain
limitations for releasing the funds as they provide funds to the certain specific projects like
having the new service or product and the advantage of this financial grant is that no part of
the income profits would be taken by the government and it will not be having any kind of
control on the business. The only demerit is that there are various types of grant and it is
difficult to look forward through the appropriate grant and there is a lot of competition for
getting the grant by the governments of UK and EU because of the flexibility it provides
specially for the new business owners.

 FRIENDS AND FAMILY : It is one of the easiest source for getting the funds as they trust
the owner of the business and it is not hard for convincing the known then the unknown
people. They won't be having the shares or equity in return of the investments they will be
providing and the downfall for this investment is the risk of loosing the investment and the
relationship may going to pedestal if the business fails to have the profits and the business
owner fails to return the investments by the profits of the business(OsnesWilhelmsen2020).
As per the situation of the business of the Apple Tree it will be best for them to have the angle
investor for their business as they can get a valuable knowledge and experience along with the
investments which might be helpful for enhancing their coffee shop in the United Kingdom and
have the basic boost on their business which can be helpful for them as the angle owners can help
them to grow their business not only in UK but even at a global level which will generate the
massive income and that would be beneficial for both the business owners and the angle investors.
Though they should be considerate about the thoughts of getting the loss in the business as well
which might prevent them for taking the avoidable risk and they should be ready to face any type of
downside in the business as well.
TASK 3 :
P4 – BUSINESS PLAN FOR GROWTH THAT INCLUDES
FINANCIAL INFORMATION AND STRATEGIC
OBJECTIVES :
The business plan have collectively relied upon the enhancement of the business of the
Apple Tree as they have a small coffee house in the United Kingdom and they are having a thought
about expanding their business by the scope of the market share and customer base and the key
points for the followings are :
1) Boosting the Product line
2) Building an strong brand image
3) Enhance the sale of the business by 7% with in 4 months.
Company : The Apple Tree is known for providing the high quality products and services like
delighted coffee and courgette cake and having a great records of sale in ground coffee. Now , they
want to increase and establish the business in all over the world. For that they need the various

analysis for their business.
SWOT ANALYSIS :
STRENGTH : The employee's of the Apple tree are highly skilled and qualified which helps in
maintaining the good and healthy relationship with the customers of the Apple
Tree(Quesenberry2020).
WEAKNESSES : The lack of awareness in the business because of the insufficiency in the capital
amount and enhancement of the market and cost exhibit is the main reason for that.
OPPORTUNITIES : As per analysation of the customers their niche is the coffee and the demand
for coffee is enhancing in the market so they could grab this opportunity to expand their market.
THREATS : There is a lot of demand for the coffee in all over the world so the competition is very
high in the market despite the fact whether the business is on a small scale or large scale.
MARKET ANALYSIS :
SEGMENTATION : The customers can be divided on geographical basis and the cultural basis
around the world to understand the value of the product in the particular area.
TARGETTING : Age plays a vital factor in targetting the customers and as per the market report
the Young Costumers will be the top most priority.
POSITIONING : Providing high quality products and services will enhance the brand image of the
Apple tree.
The business aims to provide the tasty and delighted coffee to the potential customers that will lead
the profits for the business and this is the key point which needs to be analysed. The competitive
players are costa coffee , strabucks and etc. It helps in making plans and strategies in enhancement
of the business and by limiting the cost they would be able to offer more of the products to the
customers(Rojek2019).

MARKETING AND SALES STRATEGIES : It is a process about getting awareness about the
company market and this advertisement has been used by Apple tree in their business.
REVENUE SOURCES : The main source to generate profits for the Apple Tree is through coffee.
SALES STRATEGY : For generating more sales for the business they have been encouraging the
option of take away and online delivery as well.
PRICING STRATEGIES : The Apple tree has been using penetration pricing method for their
business.
MARKETING COMMUNICATION STRATEGY : Traditional marketing and digital marketing
will be used by the coffee shop of Apple Tree.
RESEARCH AND DEVELOPMENT :
TECHNOLOGY ROADMAP : Helps in analysing the present trends of the market.
R&D : This backhand the company by giving them informations about the present trends in the
market while making a clear coordination with the department of production and inform them about
the change as well(ShulerPalmieriCooper2020).
TECHNICAL PARTNERS : The technical partners are the social media marketer.
TREADEMARKS : It protects the right of the intellectual property of the business.
STAFFING AND OPERATIONS : The niche point of any business is the employees and
employers work together as a team and help the business to grow , every operational work has been
done by the employees of the coffee shop and the organisation divide the work amongst the workers
to have a better work flow in their business.
FINANANCIAL OPERATIONS : Its necessary to observe the financial aspects of the business as
the activities and operations can take place in an pre determined budget.

MARKETIN
G OUTLAY
PROMOTIO
N
6500 3200 4300 3300 3250
SALES
PUBLICITY
2200 2100 3300 2200 2000
DIRECT
SELLING
4200 2500 6000 3000 4650
TOTAL 12900 7800 13600 8500 9900
MARKETIN
G BUDGET
Particulars 1ST YEAR 2ND YEAR 3RD YEAR 4TH YEAR 5TH YEAR
INITIAL
MONEY
6000 8500 12000 14500 18350
Investment 12000 14000 25500 32000 13500
TOTAL 6000 22500 37500 46500 31850
TASK 4 :
P5 - EXIT OR SUCCESSION OPTIONS FOR A SMALL
BUSINESS :
The strategy for the exit elaborates the plan of the owner for selling the investment of the
business and support the owner having an outlook to sell the business. It is one of the important
factor to design a exit plan before beginning the business. As per the Apple Tree there are few
following different options for the business exit strategy :

1) CONTINUING THE LEGACY IN THE FAMILY :
Most of the business owners plans and wish to keep their business in the family for the long run and
that turns to be the plan for transitioning the business to a relative or child at a particular moment
but it is essential to ensure that the family members would be able to manage the stress and burden
of the business ownership.
ADVANTAGE : The owner of the business would be able to select and prepare the individual for
continuing the business when they will be leaving and would be having the privilege of not leaving
out the business completely and can play the role of an advisor in the business.
DISAVANTAGE : Applying this method might create a lot of financial and mental burden to the
family and new business partners and investors probably not support the individual for dealing with
the business.
2) MERGER OR ACQUISITION :
This method is acquired by the merges with the organisation along with the aligned with the
objectives of the business. Getting dependent on selling the business , the exit plan gives freedom to
walk away and the flexibility of shutting the business when it is not working in favour of the
business. The beneficial point about negotiating the selling price of the business would be worth for
the business industry(Yanes-GarcíaOreja2018).
ADVANTAGES : Negotiating the price of the business and other terms is open for the owner of the
business and owner will have a break from the hassle of the business.
DISADVANTAGES : This method could be costly and probably not even a successful process for
the business.
3) BECOMING A PART OF AN ACQUIHIRE : The dissimilar function of the traditional
acquisition , the exit plan for the business is one of the organisation which purchases out the
commerce only for getting skilled and professional members for the staff as it supports in taking
care for the staff members as they are required to discuss the terms with the staff members(Sohl, J.,
2022).

ADVANTAGES : The owner of the business can exit without worrying about anything about the
responsibilities and accounts of the business as owner would be able to have the conditions in this
acquisition which will generate the revenue therefore have the good future for the workers of the
similar business.
DISADVANTAGES : The owner would be leaving the legacy of the business and probably would
fail to get the purchaser who will be interested in this method and lastly it will be time consuming
and as well as expensive for the business.
After getting through all the strategies of the exit plan the appropriate method for The Apple
Tree would be “ CONTINUING THE LEGACY IN THEIR BUSINESS ” as this method would be
supporting the business choose a person who can represent the legacy of their business in the
coming future for the betterment of the business and they will be having enough space and time for
guiding and train those new business owner individuals to the run the business in the way that they
would be able to generate the profits. Though , there is no doubt about the fact that owners will be
having benefits by the involvement of the experienced person in the business(Turlings, D.L.C.M.,
2019).
CONCLUSION :
As per this report it has been concluded that the process of planning plays the most vital and
significant role in the growth and development of the business despite the fact of the business
quantity whether it is small scale business or a large one so it is crucial for the business to assess all
the major aspects which are connected to the business and it is very important for the business to
establish the goals and targets to create the strategy which would be beneficial for the business for
achieving the objectives of the business. Ansoff Matrix can be considered as a tool which will help
in analysing the competitive benefits in the market. Business entity can prepare their business for
following the important process for achieving the goals of the business and that would be beneficial
with the help of the growth plan of the business as initiating funds for the business is essentially
important but it is challenging at the same time for the organisation and there are various souce of
funding that have been discussed in this report by analysing the crowd funding , angle investors and
the grant by the government of UK and EU. The business plan is important as it creates the road
map for achieving the objectives of the business and for the business owners for having the plan of
exit from the business is an essential key element and strategy.