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Managing Business Growth and Sustainability

University: Bedford College

  • Unit No: 4
  • Level: High school
  • Pages: 10 / Words 2468
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 10491
Question :

This assessment will guide you through:

  • Introduction of Managing Business Growth
  • Elaborating Strategic Plan of business
  • Types of Greiner stages
Answer :
Organization Selected : N/A

Introduction to Managing Business Growth and Sustainability

In order to succeed in the competitive market, it is essential for management to focus on managing their growth and sustainability. However, there are different ways through which management of the organization would manage their growth in the competing industry that is through using different growth models, growth strategies so that they can ensure proper growth and sustainability. The present report focuses on framing future strategic plan for cafe in Cardiff that is one of the largest territorial divisions in Wales. The report will further emphasize on assessing different growth model and strategies for the cafe so that they can manage new plan in Cardiff. Furthermore, the report will also assess the different growth model that is being used by the organization in order to manage the future growth.

Strategic Plan

Strategic plan is an essential procedure that supports the management and organization to undertake effective decisions regarding future of company so that they can ensure proper growth and success in the market. The strategic plan mainly focuses on defining mission of organization as well as assessment of current state of the organization so that they can plan and easily allocate required resources within the organization . The plan cafe in Cardiff is an effective option as it will result in enhancing business growth as well as sustainability in the beverage market. Depending upon the extent of business or organization, strategic planning for cafe must be done for future so that they can manage growth in future also. In order to ensure the sustainability of cafe in Cardiff it is essential for the manager to focus on the different changes as well as determining opportunities existing in the external environment for the growth of the enterprise. In order to manage the business growth, there are different ingredients of growth success which can be used by the cafe. The different ingredients of growth are-

1.Entrepreneurial character

The foremost element of growth include entrepreneurial character that is owner or manager of the cafe must have adequate and competent characteristics as well as skills which would assist in managing and adapting change within the business.

2.Business culture

Another element of attaining growth in the cafe is ensuring effective business culture that is leaders or manager within the Cafe must have growth extent or ambitions that assist them in managing the growth.

3.Company strength

In addition to this, another ingredient of growth for planning the cafe in Cardiff includes strengthening the company's capabilities and strength so that they can manage business growth in the competing environment. However, it will also support cafe manager or owner in understanding their customers who will purchase the beverage product or coffee from them instead of their competitors.

4.Business strategy

Another determinant that supports the organization in attaining overall growth is the business strategy of the organization. Selecting an effective business strategy supports the organization as well as plan cafe in the future to attain higher growth. However, selecting an ineffective business strategy may also act as disastrous for the organization as it will reduce their productivity.

With assessing the determinants of growth there are different barriers that affect the business growth that is market saturation. It is a situation under which the demand of certain products gets diffused in the market. However market saturation generally arises with changing purchasing power of customers, decrease in the requirement of customers, obsolescence etc. another obstruction in the growth include dissatisfied customers. For instance, if the customers are dissatisfied with the taste of plan cafe it may results in affecting the growth of plan cafe. However, dissatisfied customers will not repeat the purchasing activity. In addition to this, if company chooses the wrong or ineffective business strategy then it may also adversely affect the growth of overall business. As, ineffective business strategy would affect the overall operation of the business as it results in occupation financial losses for the firm.

In addition to this, there are different growth models which can used by the cafe manager or owners to ensure potential growth within the market by focusing on Greiner model, Klofsten, Growth through merger, acquisition or joint venture etc. Business plan generally focuses on the time period of five year under which cafe in Cardiff emphasizes on managing the business growth in future through merging, acquiring or forming joint venture with another existing cafe or lounge so that they can easily increase their market share as well as the profit margin. As per the view of Urban and Naidoo merging is an effective growth option that support two organizations to become a single entity. Growth through merger is undertaken by the company to amend their stakeholder value for long term and also improve overall performance of the company. However, the benefit of enabling merger that is merging activities and services among the new cafe in Cardiff manager or owners can easily assess the funds as well as assets that would support in new development. In addition to this, the benefit of merger to the cafe is that it would assist in accessing large audiences that further enhance or increase the market share.

However, the five year business plan for cafe in Cardiff must also focus on managing business development through focusing on acquisition technique under which the cafe in Cardiff buys or acquire company's assets as well as ownership to control the firm. However, growth through acquiring the business will be beneficial for the cafe in the future as it will assists in reducing the costs associated with setting up cafe in Cardiff. In addition to this, with the help of acquisition in the future it would also support cafe in expanding their market reach. Moreover,

On the other hand, the future strategic plan will also include business growth through innovation. An innovation is defined as totally unique thought which is being adopted by the organization to gain competitive advantage as well as it will also support the firm in gaining long term growth. For instance; the cafe must introduce new flavour coffee drink which is not introduced by any other cafe to serve their customers. Thus, it will be considered as a key aspect for enabling the business growth and sustainability in competing market. In order to extend the product life cycle of cafe products, it is essential for business to introduce new flavour drinks and beverages that would attract customers towards their products. However, in future to gain competitive advantage from their rival companies the cafe must make innovation in their coffee products by serving new coffee products to the customers.

The strategic plan for cafe also focuses on attaining future growth through joint venture. If two or more business units come together and brings out a specific work by providing resources and expertness, then is known as joint venture. As for the setting up cafe in a new city Cardiff, joint venture could be help in reducing risk. Through joint venture, cafe can have more resources as two firms will be joining together that would increase the availability of capital and other resources too. This can help cafe to open their hands for new markets all around. Cafe will require new and improved technology for creating a setup. Joining with other firms, will help cafe to generate new and improved technology for themselves. It can also affect in a way that if one firm is efficient in resources and other one in technology then it will be beneficial for both the firms. As being in a joint venture they can interchange there uses. This venture can help cafe to establish their name among big market by using the existing fame of other firm. It can also help cafe to use the existing distribution channel of other party. Joint venture can enable cafe to have expertise staff, greater floor capacity and even sound financial resources.

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For instance; through venturing with another existing firm or cafe in Cardiff, the plan cafe would result in increasing their resource base. Therefore, in order to grow the business, plan cafe would manage and utilize their income and resources in effectually so that they can easily expand their business activities. However, all the organizations do not operate their activities to earn or generate profit but they generally focus in sustaining business in the competing environment. Thus, managing cash within and outside the organization is essential for the plan cafe to perform their daily business activities. Another example; the cafe can serve maximum 50 customers per day and operates full week. Thus, through enabling joint venture with another firm, they must utilize the resources of restaurant to which they have alliance in order to sustain and grow their business.

However, the future strategic plan for cafe must also include assessing Greiner growth model that would support cafe to develop their existence in the Cardiff. The Greiner growth model basically focuses on different phases through which organization operates their activities and they grow. All form of organization experiences these stages of growth however each stage is precede by the crisis or a situation under which the organization needs to resists the change if they want their cafe to grow in the market. The crisis or problem that arises at the end of every stage is termed as turning point which is required to be overcome to manage the proper growth.

Greiner stages

Greiner stage 1: Growth through creativity

The foremost stage in the growth is growth through creativity at this stage entrepreneur is engaged in creating the coffee products and opening up the markets under which they can sell their products. At the starting phase there are not much staff as well as there is informal communication that result in arousing leadership crisis. This phase requires professional management as well as leader who can proceed further stage in the growth model. Therefore, human resource management plays vital role at this stage to overcome the leadership crisis.

Greiner stage 2: Growth through direction

Another stage within the model include growth through direction that is manager focuses on separate activities related with the production as well as marketing of the cafe products that would ensure their future growth. However, there is only single person that directs and lead the activities of cafe in order to ensure proper processes. Therefore, this phase ends with gaining the autonomy crisis.

Greiner stage 3: Growth through delegation

Under this growth model stage middle level personnel in the cafe have to react upon the opportunities so that they can ensure proper growth in the new market. However, top management as well as owner mainly deals with the observing and monitoring the large issues. This growth stage ends with arousing the control crisis as owners or top manager keep focus on monitoring and dealing the problem they do not focus on controlling process.

Greiner stage 4: Growth through coordination and monitoring

Another stage in the model include growth through coordination and monitoring that is business units are re-organized into different product groups so that they can coordinate accordant with the goals and objective of the cafe (Dauvergne and Lister, 2013). However, payment is being shared from the profit schemes of the organization that is being aligned with the organizational objectives and goals. However, the growth phase ends with the Red-Tape crisis that basically focuses on introducing organizational new culture and structure so that they can ensure proper growth through coordination and monitoring.

Greiner stage 5: Growth through collaboration

However, another stage in the growth model include growth with the help of collaboration that is staff within the cafe are grouped in the structure so that all the staff and employees within the cafe jointly renders the proper services (Willard, 2012). Furthermore, manager of cafe must also ensure team-based financial rewards so that they can ensure proper growth of the cafe. In the present scenario, with the help of different technological information system they can easily manage the business growth. However, the growth phase last with arousing the internal growth that can be ensure by developing partnership with completing organizations.

Greiner stage 6: Growth through extra-organizational solution

This last stage in the growth model is recently added by Greiner as it suggests that cafe in the future will continue to grow their activity with the help of merger, acquisition or other solution so that cafe can attain growth in the future.

Therefore, it can be stated that Greiner growth model supports the manager to focus on the growth of the cafe in Cardiff as well as it also ensure better plan to cope with the future growth transition so that in future they can manage the business growth (Morecroft, 2015). In addition to this, this model is also useful for the cafe as it supports the business to review the crisis that arises at each and every phase of growth model so that they can adapt the circumstances in such a manner that they can easily attain business growth.


The above report summarizes that defining strategic plan is an effective process that support the organization in taking effective decisions regarding allocating the resources as well as activities so that they can attain future prospective. However, the report has also evaluated different growth models that plays essential role in attaining potential sustainable growth of the business. In addition to this, the report has also measured the significance of Grenier growth model for managing the business growth and sustainability. The growth model focuses on six different stages that assist the plan cafe in enabling growth within the competing market.


  • Dauvergne, P. and Lister, J., 2013. Eco-business: a big-brand takeover of sustainability. MIT Press.
  • Epstein, M. J. and Buhovac, A. R., 2014. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers.
  • Morecroft, J. D., 2015. Strategic modelling and business dynamics: A feedback systems approach. John Wiley & Sons.
  • Werbach, A., 2013. Strategy for sustainability: A business manifesto. Harvard business press.
  • Willard, B., 2012. The new sustainability advantage: seven business case benefits of a triple bottom line. New Society Publishers.

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