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INTRODUCTION

Planning is one of the main and essential part for the each and every organisation to plan an effective strategies and policies. With the help of this, an enterprise easily maintain their all work and activities in systematic manner.  Effective planning assist in achievement of long term goals and objectives in limited time period (Albert, 2017). Planning is also important for the growth and development of company. In present assignment, chosen organisation is Cafe concerto, it is a SME which has employees less than 250 and turnover is £25m. Main aim of this business is to apply digitalisation for its growth and innovation. This report is divided into different parts which are covers various points such as key consideration for evaluating business growth, Ansoff's growth vector matrix and many other. Potentials sources of funding and business plan determined this assignment which is essential for the development and growth of company. There are some exit and succession option  which are beneficial for the organisation.

TASK 1

P1 Key consideration for analysing growth opportunities

Growth opportunities is identified as an essential and main part for the each and every enterprise in order to achieve long term growth and success in marketplace. For achievement of this, Cafe concerto apply digital technology which support them to reduce their times and cost. It  is also essential for the restaurant to attract large number of customers for business services and products. There are different consideration recognise which is mainly related with the chances of growth. It is needed by the business managers in order to do their all work and activity in proper manner. There are some key consideration which are applied by the Cafe concerto are determined as below:

            Competitive benefits: It is one of the main and foremost element which is needed by the each and every organisation. In this role of manager is to satisfy basic needs and wants of the customers by providing quality products and services (Allmendinger, 2017). Further, administrator tries to apply digitalisation in their production process and many other activities which are highly support to gain competitive advantages in given time period. There are some competitive benefits for restaurant of opportunities and growth are shown under this:

            Core competency: It is a main factor which is beneficial for the company to maintain their growth and success in marketplace. For accomplishment of this, Cafe concerto need to apply different tools and techniques related to digitalisation. Along with them, they can easily attract large number of customers in their organisation.

Optimum utilisation of resources: It is depict as an another important part for the organisation to gain maximum amount of money and competitive benefits. In order to utilise entire resources in proper manner, business need to used digital technology and innovation in their production, transportation and many other process. Thus, competitive advantages automatically achieved by Cafe concerto in a systematic manner.  In this one of the foremost process is product life cycle which includes four stages such as introduction, growth, maturity and decline. All these are main elements for innovate products and services as well as increase profit. 

SWOT Analysis: This factor includes internal and external factor which cover strengths, weakness, threats and opportunities. All these are determined as below:

SWOT Analysis:

Strengths

Weakness

·       One of the best strength of the company its tasty and quality products.

·       Strong loyalty from the growers.

·       Customer perception about coffee and many other beverage is most better as compared to other brand.

·       Effective and maximum base of customers.

·       High profitability

·       Appropriate amount of money to deal with different situation easily.

 

·       Main weakness of the restaurant is amount of capital that highly effects on business capability.

·       Poor research and development department which is also hinder its competitive position in marketplace.

·       Lack of talented and knowledgable staff members.

·       Poor research and development team.

Threats

Opportunities

·       Natural disasters may cause serious damage to tea crops, coffee and cacao.

·       High offering can output in product value to decline.

·       Main threats of  Cafe concerto is its competitors whose are produce similar kind of services.

·       Promotion by nearby venues.

·       Having excellent and strong relationship with growers in all around the globe, provides good image, developing the chance of going worldwide in future successfully. 

·       To maximise customer base by applying digitalisation.

·       Maximum sales of restaurant by applying entire resources in a proper manner. 

 

PESTLE Analysis:

PESTLE Analysis

Description

Political

In this, restaurant follow different rules and regulation  which is regulated by the government. This factor high;y effects on the business performance and profitability. Changes the the government policy and strategy that impact entire production process of the restaurant.  

Economical

The effect of coffee and many other beverage on Brazilian economy, it was mote stronger. The main effort of coffee trade and production established essential sectorial connection within the economy of Brazilian. 

Social

Society is identify one of the main and foremost factor that must be focuses on quality products and services. In order to provide information to the customers, company use   different social media platform and promotional mix such as advertisement, sales promotions, public relation on television, newspapers and so on.

Technological

It is important factor that highly effects on business operations and activities.  It is identified as a process which is follows by the all organisation in order to introduced their new products and services in marketplace and to the customers through  using digital technology. Recently, Cafe concerto tries to established innovation in their products and services which assist them to attain maximum base of customers.

Legal

introducing their own brand name of Fair trade coffee is Progresso' which is sold-out on not yet constituted premises such as book stores. In this they highly need to take permission from government. So it is also impacted on business activities and functions in an effective manner.

Environmental

The environmental effects is almost always  in positive manner which is essential that the production of coffee. It is important factor for the Cafe concerto because it encourage reasonable living standard and stability for the populations considered with coffee and to make the sufficient care.

 

P2 Ansoff's growth vector matrix for evaluating growth opportunities

Ansoff's growth vector matrix: It is represented as a planning model of marketing that assist an organisation in analysing its product or services and growth strategy in the market (Ansoff Matrix – The growth share Matrix of Ansoff, 2017). It is also identified as a planning technique that renders an effective framework to support managers, senior managers and executives devise strategies and policies for future development and growth. It is an essential and foremost tool which is utilized by Cafe concerto in order to evaluate growth opportunities and changes in marketplace (Beatley, 2014). This approach includes four parts such as market penetration, market development, product development and diversification. All these are essential and beneficial for the company to analysis basic requirement of customers, market demands and trend, location, technologies and many other. This matrix helps the organisation to expand their business operation at large scale. It is used by Cafe concerto with different motives which are shown under this:

  • Evaluating various strategic directions an enterprise can pursue.
  • Analysing the balance portfolio.
  • Assessing the market growth and share of an organisation.


(Source:  Ansoff Matrix – The growth share Matrix of Ansoff, 2018)

            Market penetration: It is the role and responsibility of the business manager to sell their existing products in available marketplace with the aim to gain competitive advantage and increase their growth and development as well. To grow and penetrate the maximum base of clients in the present market, Cafe concerto can reduce the prices of products and services, enhance its distribution channels, spend more in marketing and maximising capacity of existing food products.   

            Market development: In this, business entity sell their existing products to innovative marketplace. It is essential for company to target new segments of customers or expand their business operation in international market by choosing fresh geographic locations (Bradley and Sparling, 2017). In this restaurant, with the introduction in digital technologies, companies will be able to do their operations in an effective manner and develop in competitive market as well. . With the help of this aspects Cafe concerto conduct research with motive to recognise basic demands of market.

            Product development: It is another essential part of the Ansoff's matrix which is beneficial for restaurant to develop and sale innovative products to present marketplace. For example: Cafe concerto made some changes in their present food or services to give maximise value to the clients for its purchase and established new products development in an effective and efficient manner.. So it is essential for cafe concerto to gain maximum advantages and benefits by providing quality products and services to the customers at reasonable price. In this company used digital technology which help to maximise their revenue and sales.

            Diversification: This is a last aspect which is highly included in the Ansoff's matrix. In this, business enter into new marketplace with innovative foods that are either unrelated or related to the business's existing offering (Chen and et. al., 2014). It is classified into three parts such as horizontal, conglomerate and vertical diversification. All these are important and beneficial for the company to easily attract large number of customers and accomplish their predetermined goals and objectives in limited time period. Further it assist in evaluating opportunities and changes of development and growth in international and national level.  

M1 Options for growth using a range of analytical framework

There are different options of development and success could calculated like market and product development, digitalisation and many other aspects. In order to keep efficiency and effectiveness company require to  apply analytical framework which assist in handle progress and growth. Main aspects which is apply by the  Cafe concerto such as PESTLE analysis. This factor highly set in order to analysis effects of political, social, economic, environmental, legal and technological. So with the help of this methods they easily retain their growth and success in marketplace. By determining entire appropriate and proper aspects, Cafe concerto become capable to manage and retain risk.

D1 Critically evaluate specific pathways for growth by taking various risk in consideration

According to the Dong,  (2017) risk is highly involve in achievement of long term growth and success. Therefore, it is main responsibility of business manager is to identify accurate pathways to analysing risk. Entire work and duty of administrator is to reduce such kind of risk in an effective manner. In this role of Cafe Concerto owner is to analysis growth factors which are determined as below:

New product development: It is one of the main factor of business success and growth. In this business apply digital technology which assist them to introduced their new products and services in marketplace. Further, they can attract large number of the customers towards achievement of higher success. In this risk is highly involved so that manager is responsible for identifying risk and overcoming them.  Main risk in NPD is customer preferences, taste and many other options. 

Market development: In order to develop their business operations and activities at large level. Company face different difficulties regarding customer taste, market trends, changes in technology and many other. Main risk in this factor is different kinds of competitors whose are produce similar type of services and products.

TASK 2

P3 Potential sources of funding present to businesses and discuss drawbacks and  benefits

Fund and capital is considered as one of the most important part for each and every organisation as it helps in carrying out their entire activities and functions in proper manner. It is the manager's responsibility to analysis proper source of funding and then applying them. There are different sources of funds which are applied by  Cafe concerto such as Bank loan, Friends and family, Cloud funding and many other (Eddleston and et. al. , 2013). All these have some advantages and disadvantage which are determined as below:

Sources of funding

Description

Benefits

Drawbacks

Bank Loan

Bank loan is important and beneficial for organisation to arrange sufficient amount of fund. This source assists Cafe concerto in giving short and long term finance. It also represents fixed interest rate  and appropriate time.

It renders that interest rate and security is lower for an unsecured loan. 

Repayment and size of loan can be constructed to match organisation's exact requirements. 

It may need security on loan.

It can be costly because of interest payments.

Friends and family

This source render either debt or equity funding. It is one of the main and essential source of funding which is used by  Cafe concerto in order to do their activities properly.   

It is one of the best approach for company to easily arrange appropriate amount of money.

It is flexible. 

Main drawback of this approach is about potentials for personal disputes,

it may want and need influence  and control over decision. 

Cloud funding

In this, different group of persons are allowed to pitch new plan for investor through interest. It is a successful type of funding  which is useful for the restaurant to arrange sufficient funds for their business activities and functions.

It is essential for organisation to easily arrange sufficient money.

This approach assist in raising money from different people so that company become capable in handling business operations at large level.

Re-engineering of application might be needed.

Ownership and access of intellectual property should be retained.

 

M2 Adaptation of suitable source of funding

On the other hand, family and friends, it is also useful for the restaurant to arrange proper amount of money from their relatives. Their is no risk and difficult which is strong point for the business entity. Cloud funding is also beneficial for the restaurant to develop their business operation at different level in an appropriate manner.

D2 Critically evaluate potential sources of funding

According to the Levesque, (2017) there are main three type of funding sources which are apply by the  Cafe concerto appropriately. All these are highly useful and valuable for the restaurant to arrange  accurate fund for their business activities and functions. This methods assist the organisation to easily do entire work appropriately.

On the other hand Levy, (2016) above mentioned sources of funding have some drawbacks in different terms such as, expansive, not appropriate and many other. Family and friends source create disrupt among relatives. Cloud funding is also weak in terms of Ownership of intellectual property that should be maintained.

TASK 3

P4 Business plan for success that includes strategic objectives and financial information

Table of content: Executive summary, Business details, Industry and market analysis, Customer and value proposition, Marketing Strategy, Operational plan, Management team and company structure, Resources and Financing. All these are the part of business plan which is determined as below:

Executive summary: Business plan is one of the main and important part that determined overall information about company mission, vision values, financial strength, strategic objectives and financial performance. All these are highly essential for the growth and development of company in limited time period. Business plan of the Cafe concerto includes some steps which are determined as below:  

Business details:  It is a small restaurant which has worker less than 250 and turnover rate is £25m. Main purpose of this concern is to utilize digitalisation for its development and innovation. They offer different kind of services and products to the customers at reasonable price.  “Mission statement of the company is to gain maximum amount of capital by providing quality products and services”.  “Vision statement of the  Cafe concerto is become leading coffee service manufacture in UK so that clients satisfaction get increased by considers some factors such as cleanliness, friendly and healthy environment, quality and many other”.  Company require to be based on some value which have to determine by business managers and renders it in proper manner to target customers (MacLeod, 2013). There are some other values of restaurant which are determined as below:

  • To render higher quality products and services to the customers.
  • To adopt digitalisation for increasing customer base.
  • To promote friendly and healthy atmospheres for the customers.
  • To gain maximum amount of money.

Industry and market analysis: It is important and essential for the company in order to analysis market. In this  Cafe concerto use Porter's five forces analysis which help to easily evaluate bargaining power of the supplier, bargaining power of customers, Threat of substitutes, Threat of new entrants and Industry rivalry. All these are highly support business organisation to analysis demands of the marketplace and needs of the customers towards business products and services.

Customer and value proposition: It is another main and foremost part of the company which is essential for them to easily achieve competitive edge in limited time duration. It is used by the Cafe Concerto with aim to identify value for the customers. This factor includes some parts such as symbolic, economic, emotional, end and functional value. All these are significant for the enterprise to easily accomplish long term goals and targets in a given time duration.

Marketing Strategy: It is also important part of the company to introduce their new products and services in marketplace. In this business organisation use different kind of marketing strategy such as advertisement, promotion, public relation, publicity and many other. All these are highly support to maximise their sales and revenues in limited time duration.

Operational plan: It is another important part which is mainly related to the operational plan of the restaurant. In this they develop an effective plan in order to produce quality products and services to the customers at reasonable rate. It is identify as an effective process of planning a long term strategic objectives and goals.

Management team and company structure: In the organisation different teams are working together with aim to achieve predetermined objectives and goals in given time duration. In this, different team such as finance, human resource, production, research and development and many other. Cafe Concerto apply hierarchical structure which is useful for them because in this all members are take an effective decision about accomplishment of growth and success. 

Resources: Financial resources; It is another important and main part of the organisation which is necessary for them to recognise their financial statement in an effective and efficient manner. Blow show is determined financial position for the  Cafe concerto (Moseley, 2013). Another is human resources which is also important part of the company and play vital role in hiring best candidates who can accomplish long term objectives and goals of company.

Financing: Friends & family and Bank loan both are essential and appropriate source of funding. These are apply by the Cafe concerto in order to manage all activities and operations appropriately. Bank loan is one of the best and appropriate source for the organisation because by which they easily gather sufficient amount of money for long as well as short term (Galland,  2012). It is main part of the business plan which is shown financial position of company in marketplace. In case of  Cafe concerto, it is a SME in UK whom has better financial situation which identify as main reason behind development and success consideration (Mobin, Li and Komaki, 2017).

It is a income statement of the Cafe Concerto that shown business is good position in marketplace. In 2016, profit of the organisation was 1554212 which is maximum as compare to past year. It means financial position of the organisation is better which assist in handling all activities and functions in proper manner. 

M3 Formulation of suitable business plan for growth and securing investment

Business plan is important and foremost element for the Cafe Concerto in order to introduce their financial position. Above discussed business plan of the company identify the future growth and success in marketplace. This plan is more essential that includes entire information related to internal and external (Paloviita, 2017). In this business entity capable to analysis different factors for achievement of higher growth and success in marketplace. Financial position of the restaurant is good so that they are able to complete their whole work in allotted time period. 

D3 Knowledge about business plan related with accomplishment of business objectives

Business plan identified as one of the essential and foremost part that assist in the accomplish of long term objectives and goals. It is a role and responsibility of manager is to have proper knowledge and skill about business operations and function which turn in the achievement of maximum amount of money. Thus, it is necessary for administrator to gain appropriate knowledgable  and learn regarding business plan of an organisation. This plan covers some essentials aspects such as strategic intent, it describe vision and mission of the organisation. Along with them, it also determine weakness and strength in effective manner so that business operations is could be managed properly. Appropriate plan of businesses beneficial for the organisation to achieve predetermined objectives and targets in allotted time duration.

TASK 4

P5 Succession or exit options for a SME explaining the drawbacks and benefits

It is identify as an effective process in which business administrator close their operations and activities due to variation functions. One of the main way of exist their company is finance and goodwill. It is the role and responsibility of manager is to analysis proper resources of fund and maintain their all activities in appropriate manner. For achievement of long term goals and objectives, company should tries to provide quality services and products to the customers at affordable cost (Pred, 2017). Further, it support in gaining maximum  amount of fund in limited time period. So that business failures that can be reduced and acquire monitor with the help of effective and appropriate planing. Thus, management require to identify entire exit  things appropriately as well as charge whole debts effectively.

            Sell-off: It is identify as a main drawbacks for the organisation. It may be caused when business not have proper amount of money. It is a disadvantage for the organisation which cause in disputation. 

            Buy-in and out:  It is another decision for leaving their business operations and activities.  It is a both succession and exist reason. In case of succession, company has good value then they enlarge their business operations at international and national level. On the other hand, in cause of exist, reputation and goodwill of the organisation is not good so that they make an effective decision to exist their operation.

            Liquidation: The procedure of liquidation also develop when impost, an potency or authority in a country liable for gathering and measuring customs duties, identifies the end computation or ascertainment of the  drawback and duties accruing on an entry.

            Bankruptcy: In this business organisation not have money so that they decide to close their business operations. It is a legal proceeding considering an individual or business entity that is unable to give outstanding debts.

            Wind-up: It is also option to wind-up business. In this business doest not have sufficient money, resources and many other factor. Therefore, Cafe concerto wants leave from the existing marketplace as they are facing difficult situation and bad circumstances into company (Riggs, 2017). But according to their plan of company and past performance, they will expand their activities and functions easily.

            Cafe Concerto sell-off their business. Both are major cause which is face by the company so that in order to overcome this, they will tries to provide motivation to their all workforce. Further, they are motivated and give their full dedication in the  accomplishment of long and short term success.

M5 Exit and succession options with valid recommendations

As per the recommendation, exist and succession both are important part for the organisation in order to maintain their business success in marketplace.(Schetke, Haase and Kötter, 2012). There are some reasons for exist the business such as lack of money, employees, poor infrastructure and many other. Reasons of succession are higher competitive advantages, improved goodwill and image in marketplace and many other essential reasons. All these are major element in the organisation which are in influence on business performance and profitability in a negative and positive manner.

D4 Critically evaluation of such options with suitable recommendation

According to the Schetke, (2012) There are different options which are available in the marketplace. Exist and succession both are main reason for expanding and closing business operations and activities. In order to recommended, restaurant should tries to apply digitalisation in a proper manner. Thus, this will assist to reduce time and cost of the restaurant and increase sales and revenues in appropriate way.

On the other hand Haase, (2012) all these are important for the SME to maximise customer base by providing quality products and services the clients easily. In this role and responsibility of business managers to adopt digital technology which support in the the accomplishment of higher growth and success. 

CONCLUSION

From the above mentioned report, it can be concluded that, planning is one of the main and essential part for the business growth and success. There are different tools and techniques are used by the company to keep their reputation and goodwill in marketplace. One of the major tool is digitalisation and innovation which assist the business to decrees their cost&time and maximise sales. Ansoff's matrix is major approach for the enterprise to develop their new products in new marketplace. There are different sources of funding which is apply by the enterprise such as Bank loan, friends & family and cloud funding. Business plan is also main element for the firm to recognise their financial position and internal or external factor effectively. There are different ways of existing and succession for the company to expand and close their company.

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