Planning For Growth Assignment Sample

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Introduction Of A Business Case For The Investors Will Be Produced Together With A Description Of The Company's Existing Status In Order To Secure Finance Assignment.

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The report is going to highlight the potential of growth in business and planning for the growth in the startup business The Black Cab Coffee. The report is going to highlight the growth of the small business where it includes the competitive advantages for the business. Moreover, this will also highlight the opportunities that are available for a business to expand its business and achieve the targeted profits. Besides having this, this will also highlight the risk and issues that occur during the expansion of the business. The current situation of the business will also be highlighted and a business case for the investors will be developed for its secure fundings. Additionally, the report will also highlight the growth and the sources of the findings that are required in the organization. The success of the business will be achieved by making various plans that will explain various benefits and limitations of the growth.

Competitive advantage for the business

A competitive advantage is the planning of the company that is made to make success over its competitors. This helps to make various unique products that are helpful in attracting the customers and also helps in the growth of the business. The methods that are helpful in gaining the competitive advantage. The first one is the cost leadership that is helpful in deciding the cost of the products that are lower from the competitors. This is beneficial to attract more customers and make profit as well. Additionally, this can be done with the help of high price elasticity for example the transportation and energy. The products that can be used by the startup business can be even beneficial if the new innovative items are made using less resources (Lik and Andriani, 2022). This is beneficial as it helps in gaining higher revenue and share peace in the market is important as it is helpful in decision making. The second most important part is the Product differentiation which is important in attracting more customers to capture the market. This can help the market to capture the competitive market. The products should be according to the needs and demands of the customers so that more customers are attracted towards the product. Customer relationship management is important as it can change the attitudes of the customers which can also affect the decisions of the people in respect to the services and products. Besides having this, the most important point that can help in gaining the competitive advantage is the cost focus.As cited, narrated and opined by Chenet al. (2021), the cost focus strategy is beneficial as it can attract the customers to buy the goods for which the prices are set affordable and according to the customers. Businesses that use this low-cost strategy can be profitable if Black Cab Coffee can reduce the staff and the expenses of the equipment as compared to other companies. The startup coffee shop can be beneficial if it sells the coffee products at lower prices as compared to its competitors (Mudau, 2022). This can attract the customers and can be helpful in organizing the customers to feel comfortable buying the goods from this coffee shop.

The commitment to the customers strategy is another strategy that can be used by The Black Cab Coffee to attract the customers more towards the business. The services that are provided to the customers should be satisfactory to attract the customers. The customers are the important part of the organization that should be provided with the best products and services to attract the customers and increase the sales. Additionally, this strategy can be helpful in increasing the sales and profit of the business by providing satisfactory services to the customers (Kellokumpu, 2021). Besides having the commitment to the customers, the commitment towards the employees is also important as they are the one who can serve with the best services to the customers. The happiness of the employees is important and they can be kept happy by providing incentives and bonuses occasionally and also the rewards for their best performance. Some of the more competitive advantages are the teammates' unique use of the technology such as the more machines to make a variety of products to attract the customers. The skilled employees should be hired to give the best advice for making various different products to attract the customers. The product uniqueness can be most of the major reason to attract the customers that can lead to the rapid growth of the customers. The products that can be used by the startup business can be even beneficial if the new innovative items are made using less resources. As stated, cited and narrated by Lamker andDieckhoff (2021), the satisfactory services that are provided to the customers is beneficial as the customers will suggest more people to try this cafe that can increase the profit of the company. Additionally, this can also help in the expansion of the brand and reputation as well. Hence, the competitive advantages unlock most of the engaging benefits and also targets many audiences. This will help The Black Cab Coffee to have several competitive advantages and can also promote the brand and promote in the market. Furthermore, the sustainable advantages can be used as it can be helpful in gathering the valuable things that an organization should have. This helps in the acquisition of the company and also helps in the long-term growth of the Black Cab Coffee.

A critical assessment of the opportunities available to the business

The opportunities of the business mainly refer to a successful occasion to time to start a new idea of business as well as creating new products for the market. Hence the coffee shop could develop different types of seating arrangements in their coffee shop for the customers (Auma and Waithaka, 2020). Through these different types of opportunities, new startup businesses can take the advantage of occurring in the business market.

New techniques and innovations

The coffee shop will be doing their business in manual progress. However, the coffee shop needs to develop and keep trying on innovative techniques in order to increase the business performance in future. Therefore, it could be helpful to develop a test of the new products for business development (Hassan and Liu, 2018). Hence the coffee shop could develop different types of seating arrangements in their coffee shop for the customers. Therefore, these developments will also help the new business shop to create a better future in the competitive market. Additionally, the coffee shop owners could change the work routines of the employees in order to develop better employees' engagement in the business for future growth.

Offering rewards to the customer

The coffee shop will be developing their brand loyalty through offering different types of rewards to their consumers. The business opener could offer different types of rewards as well as discounts to their regulated customers (Irwansyahet al. 2018). Therefore, these different types of offers and discounts could help the business in order to increase brand loyalty. Also, this progress is to help the business to attract brand new consumers and also help to retain the old customers. Therefore, through this process the business can grow in future.

Superior customer experience

The business will develop the customer experience through providing new offers on their purchase of the products, Also the business can provide different types of rewards to the consumers in order to develop the superior customer experience in the business, Also the business owners should launch different types of newly developed techniques for creating better customer experience for the business.

Expand product line

The business can expand the product line by offering snacks, cookies and cakes to their consumers along with their coffees. Therefore, this progress can help the business to develop better opportunities in future (Buckley et al. 2020). Therefore, this will create better options with the products of the customers' orders. Although, through this expanded product line progress the business owners can also earn extra profit in business.

Advertisement to increase Brand awareness

The business owners can apply different types of advertisement strategies in order increase the brand awareness with the customers. The business owner can use the social media advertisement in order to target the new customers. Also, through this social media advertising, the business power can target new markets in order to open new franchises amongst the new region in future.

Expand the Geographical Target Area

The business owners can expand the target market through setting up new franchises of the business in different types of regions with the same name of the brand. Also, the business owners could develop new franchising in different locations in order to expand the market of the business for future development. Therefore, this can help the business in order to target the business market as well as increase the market share for the business in future.

Creating Direct Contact with Customers

In recent times the coffee shop business can provide some opportunities to the customers in order to develop directly amongst them. Therefore, this impact will help the owners for developing the new opportunities for the business as well as make better relationships with the customer.

Smartphone App and Home Courier Service

  • The business owners should set up a new marble application in order to provide additional products options for their customers. Therefore, this progress is also creating better opportunities for the business and increasing the customer rate in future. Also, the business owners should start home delivery service of their products to the customers. Therefore, the progress also helps the business owner to earn some extra profit in order to develop the business in future.

A critical assessment of the options for growth

Ansoff’s Growth Vector Matrix

Market Penetration

Product Development

? Increasing the marketing efforts for business development

? Also streamlining the process of product distribution to the customer

? Investment in the R&D in order to develop the product

? According to the product producing rights and sell to the customer

Market Development

Diversification

? Open a new franchise in the domestic market for regional expansion

? Creating different types of customer segments.

? Help to archive the long-term business investment plans for future development

? Reducing the impact on business volatility of the market

Table 1: Ansoff’s Growth Vector Matrix

(Source: Jintanaet al. 2021)

 Analysis:

As per the Ansoff’s Growth Vector Matrix of market penetration it has been noticed that the business can increase the marketing efforts for future development. It will also streamline the business process of product distribution to the market (Batunova and Gunko, 2018). In order to develop the financial growth for the business in future. Also, this can increase the sales of the products in the business market.

As per the Ansoff’s Growth Vector Matrix of market development it has been noticed that the business owners can develop the market through open new franchisees in the domestic market for the regional expansion in order to meet the financial growth in future. Also, the business is creating different types of segments for their customers in order to develop the business's financial growth in future.

As per the Ansoff’s Growth Vector Matrix of product development it has been noticed that the business should need to develop its investment in the R&D in order to develop the product and implement better financial growth for the company (Olesen and Carter, 2018.). Also, the business owners should produce product rights in order to sell their products to the customer and develop better and implement better financial growth for the business in future.

As per the Ansoff’s Growth Vector Matrix of Diversification it has been noticed that through this matrix the business owners can achieve the long-term investing plan for implementing better financial growth for the business in future. Also, reducing the business volatility of the market to create better financial growth. 

 SmartArt

(Source: Self-created)

Ansoff’s growth vector matrix

Risk

Level of risk

Market Penetration

During market penetration the company can face the risk of

? Lower prices

? Choosing wrong channel

? Employee turnover (Zheng, 2022)

Moderate

Market Development

During market development the startup coffee house can face the problem of

? Maximum investment capital during expansion

? Low interest rate risk as well as the equity risk

? The major risk can arise is the commodity risk as well as the currency risk 

High

Product Development

In the process of product development, the company can face the risk of

? The risk of economic costs and delays can be the major issue (Steele and Stefansson, 2021)

? Increasing cost can result in the slow progress of the work

? Sometimes it cannot identify the products 

High

Diversification

During the diversification the risk that is associated is the

? Investing in the industries and creating one portfolio

? It reduces the productivity of the employees and also the ability of multitasking

? Investments need of the capital and funds

Moderate

Table 1: Risk associated with Ansoff’s growth vector matrix

(Source: Self-created)

Analysis

The various kinds of risk that are associated with Market Penetration are the prices being lower and also the risk of choosing wrong channels. Additionally, this can also create the risk of employee turnover that can be unfavorable for the existing company. This can be the major risk that can be faced by the startup company. Additionally, the risk that is associated with the Market development is the investment capital during expansion. As cited and narrtaed by Pawski et al. (2021), the risk that is added to the market development is commodity risk as well as currency risk. The next is the Product Development that can be a risk for the company and especially for the startups business. The risk that is associated with the product development is the economic costs and delays. Moreover, the more risk associated with it cannot identify the products. Besides having this the more risk that is associated is the Diversification. The risk that is associated with the diversification of the product is the investing in the industries and creating one portfolio. Moreover, the risk that is associated is that it reduces the productivity of the employees and also the ability of multitasking.

A critical evaluation of the options for financing growth and sources of funding

Financing options

The Black Cab Coffee can develop their financing growth through implementing Debt financing and Equity financing. Equity financing helps to raise the amount of the business shares. Additionally, the debt financing can help the business owners to lend some money from the lender and then pay back the money with interest.

Debt financing

The coffee shop business can leverage some small capital amount of capital from the market by implementing debt financing in the business. Therefore, this impact will help the business owner in order to create better growth in future. Debt financing is generally deducted from the large amount of tax for the business. Therefore, the coffee shop will develop financial growth in the future (Ahmad et al. 2020). Through implementing the debt financing, the business owner has retained all the control of ownership from the investors. Also, the debt financing is lower cost than the equity financing. Therefore, the business owners should implement this financing in the business in order to meet the future development.

Equity financing

The Black Cab Coffee can repay all the loans by implanting equity financing in the business. Therefore, the business can develop the financial growth by equity financing. The business has contained low risk by implementing equity financing. Because businesses need to pay their loan in monthly loans. Also, this does not implement any positive cash flow for the business in the early months (Cleave and Arku, 2020). The equity financing will also solve the credit problem of the business. Therefore, the business will develop the financial growth in future. Stockholders do not anticipate seeing a quick return on their capital. Additionally, stakeholders get a long-term perspective and recognize that they could lose money if such a business fails. The equity financing does not take out the funds from the business. Therefore, through this financing the business can develop the financial growth. Also, this financing helps the business to increase the money of the business to implement better financial growth.

Source of funding

Bank loans

The business owners also get the extra financial sources from the bank loansin order to grow the business. The business owners did not wait for the profit in order to fund the financial sources in the business (Swan et al. 2018). Therefore, the business owners need to develop the business pan in order to implement high financial funding for the business. Therefore, through this implementation, the business owners keep total control of the business.

Angel investors

The business owners can increase their score of funds by implicating Angel investors in the business. Additionally, this will create credibility with investors from the beginning of the business. Therefore, the business doesn't need to repay the interest in order to develop better financing in business. Also, the business owners assess the sector of the investors to create better knowledge and contacts for the business.

Critically evaluate the current business situation

Current situation of the business

The revenue of the company is $65.8 million in 2021, which shows that it is favorable for the company. This was founded in 2012 and the company is a startup that is using various strategies for the growth and development of the company (Shah et al, 2021). This is important as it helps in making strategic plans with a top priority. It also helps in monitoring the profit margins. The company can use the Acquisition strategies to grow and expand the business and achieve the targeted plans. This strategy helps the business to know the internal aspects of the company and also adds the achievements of the organization.

Entrepreneurial strategies used by the business

The various entrepreneurial strategies that are used by the business to grow and expand the business is making the strategic plans that is important and is in the top priority. This is helpful for tracking the growth of the competitors and staying close to the customers. Additionally, this can be helpful in developing a planner of the cash flow (Nandagiri, 2021). Additionally, this can be helpful and can diverse the sets of the skills and can commit to the organization. The strategies are needed in the business as it helps in the growth of the company and alsoattract the customers by making various new products and generating the products according to the demands of the customers.

Example of the company using the strategies

Costa Coffee is the best example as this coffee shop has used various strategies for the growth of the company. This company has used the Acquisition strategy to geo and expand its company. This company has this strategy with the help of which it has set less cost according to its competitors. This was helpful for the company as it attracted many more customers. This was helpful for increasing the cost and revenue of the company (Nandagiri, 2021). This strategy helps the business to know the internal aspects of the company and also adds the achievements of the organization. In addition, this is helpful in gaining the competitive advantages over all the competitors. On the other hand, this is also helpful as it helps in increasing the profitability and also helps in the strategic directions. Improvement in the management skills and also minimizing the risk is important and apart from this the allocation of the resources was helpful for helping the business to grow and expand.

Critically evaluate different options to assess benefits and drawbacks

  1. a) Appraisal of the exit or succession options

The company should choose the appraisal of success option rather than the exit option in order to meet the social enterprise of the business. The business owners planning the succession in the market by train the employees. Although the company could transfer the leadership management to the other employees in order to develop the succession rate in the business market (Gilbar, 2021). Although the company needs to choose the potential employees for the business in order to meet the success in the market. Also making effective performance in the business in order to meet success of the business. 

  1. b) evaluating different options to assess benefits and drawbacks

The benefit of the coffee shop is they will provide jobs to the people and increase the employment rate. Also, the coffee shops have been supporting the local business in order to provide all benefits to the local people. Also, the coffee shop will mostly Diversey the local economy. Therefore, it will create an environmental impact on product sourcing.

The coffee shop business has a low-profit margin in the market. Also, it will be too hard to paint the business cash flow (Hersperger et al. 2020). The supplier cost is very expensive and the business market is very price sensitive. Although, managing the employees is hard in the coffee shop business. Therefore, these are the main drawbacks that the coffee shop business will face in the market. 

Recommendations for the business

The business can use various strategies to mitigate the risk of the business. The following are the recommendation to the business below

  • The process of managing the risk related to this is to use heavy models and b m monitoring the works daily. The risk that is related to the market penetration is the problem of choosing the wrong channel and employee turnover. This is the major risk faced by the company and this can be overcome by adjusting the piece and using more distribution channels for the growth of the company.
  • The major risk is the requirement of capital investment and this can be reduced by expanding the business and applying various strategies to mitigate the risk. Black Cab Coffeecan use various technologies and software and can also follow various companies who have already used various strategies in the company. The different types of market research in the field trials and also the qualitative interviews that can lead the company.
  • The main part to reduce the product development risk is to identify the risk and this can be mitigated with the help of risk acceptance and also the risk limitation. The risk of Product development can be reduced by preparing the lessons that affect the threats that are already created and faced by the company.
  • The last risk that is associated with the company is with the diversification strategy. The risk of investment needs of the capital and funds can be mitigated with the investment in the vehicles and also the span of different financial instruments. This is also useful in eliminating all the risk that has occurred in the business.

Conclusion

It has been concluded that A business case for the investors will be produced together with a description of the company's existing status in order to secure finance. The report will also highlight the expansion and the sources of the data that the company needs. Although, it has been concluded that the companies would develop some different types of techniques in order to get opportunities for future development. As a result, the coffee shop could create a variety of sitting options for their patrons. Therefore, these developments will also aid the startup firm in building a better future for itself in the cutthroat marketplace. Although, the company is creating advertisements in order to increase brand awareness. The researchers are using the Ansoff’s Growth Vector Matrix in order to develop the financial growth.

Although, the business will develop implicating the Debt financing and Equity financing in order to develop the financial growth in future. Also, the business will fund their source from the bank loans and angel investors in order to develop the financial growth. Therefore, through planning lessons that address the challenges already present and being faced by the organization, the risk which is associated with product development can be decreased.

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