Planning For Growth

Planning For Growth

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Task 1: Analyse the key considerations SMEs should consider when evaluating growth
opportunities...........................................................................................................................3
Task 2: Assess the various methods through which organisations access funding and when
to use different types of funding.............................................................................................6
Task 3: Develop a business plan (including financials) and
communicate how you intend scaling up a business.............................................................9
Task 4: Assess the various ways a small business owner can exit the
business and the implications of each option......................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
SMEs are the small medium enterprises which consist fewer than 250 members. They
play major role in economy as they contribute to growth, creates employment opportunities and
provide platform for new markets. The entrepreneurs of SMEs are attracting investors as with the
advance technology they are opening new market for these products. Further there aim is to
satisfy the customer and fulfil the needs of the localities, thus they easily cope up with the
changing environment. The companies identifies the opportunities for growth to attain the long
term success and sustainability in the competitive market. The SMEs adapt the changes in order
to sustain in the markets. These enterprises generally develop the exit and succession strategies
in initial business plans. Sometimes exit strategy is not acceptable by entrepreneur so they face
many challenges during the succession planning. The report examines the planning for the
growth of an organisation in the market.
MAIN BODY
Task 1: Analyse the key considerations SMEs should consider when evaluating growth
opportunities
COMPETITIVE ADVANTAGE
When an enterprise maximise the profits exceeding the average profit earned by the same
industry, thus creates a competition in the market and the enterprise which inherits the advantage
said to gain the competitive advantage (Rana, Agarwal, and Sharma, 2021). The basic advantage
which prevails growth opportunities in relation to Don’t-Look-Further Catering Services are:-
 when an enterprise is able to deliver the same product or service as competitors but at a
low price, gaining cost advantage
 or deliver the product or service exceeds those of competitors, causes differentiation
advantage
Further Margaret Millions utilised its resources and capabilities effectively and
efficiently in order to gain competitive advantage that will ultimately increase the goodwill of the
firm and its value towards the customers. Also the firm has capability of providing the highly
specialised catering service promptly than competitors. Thus, the competencies will somewhere
enable the firm the efficiency, better quality and customer awareness (Kanaan and et. al., 2020).

Porters Generic Strategies
Porter formulated four strategies in order to gain advantage in the competitive market. It
also determines whether the position of firm is above or below the market average. Don’t-Look-
Further Catering Services, a highly specialised catering business focus on providing services
effectively and efficiently (Razak and Vattikoti, 2018). Thus, using the above advantages the
Porter devised generic strategies so that the firm can effectively segment the market and gain
sustainability in the competitive environment. The generic strategies for achieving above the
average performance in the market are as follows:-
1. Cost Leadership: This strategy enable to target the market where the demand of customer
are high and offer them with the products or services at low cost. Thus, it focuses on
keeping the cost of the firm low. The application of this strategy results into high
performance as compared to its competitors in the market.
2. Differentiation: This strategy enable to target the market where the demand of customer
are high and offer them the products or services of unique features, i.e. those products or
services through its unique features distinct its from the competitors. The firm while
using this strategy requires a proper research of the market along with the trends and
changes in the environment, innovation and ability to maintain and provide high quality
products or services. Such unique product or service is required to be launched in the
effective market so that the firm can maintain its sustainability.
3. Focus: This strategy is further bifurcated into cost focus and differentiation focus. The
cost focus to attain the advantage by lowering the cost while the latter attain advantage
through product differentiation in the segment. Prestige of brand and its loyalty is formed
under the latter strategy. Thus, level of competencies is required to be focused by the
firm before adapting the strategy.
PESTLE Analysis
PESTLE Analysis focus to give an overview of the external factors which are affecting
the business. Accordingly the organisation formulates its strategies and make decisions regarding
the conduct of the business (Segura, Morales and Somolinos, 2018). This PESTLE analysis
examines the external factors which the Don’t-Look-Further Catering Services company faces,
these are:-