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Unit 42 Planning for Growth - Assignment

   

Added on  2021-02-19

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42– Planning for Growth

Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................1P1 Analysing the key consideration for evaluating growth opportunities.............................1P2 Evaluating the opportunities for growth applying Ansoff's growth..................................3LO2..................................................................................................................................................4P3 Assess the potential source of funding available to business and discuss benefits anddrawbacks...............................................................................................................................4LO3..................................................................................................................................................6P4 Design a business plan for growth that includes financial information and strategicobjectives................................................................................................................................6LO4..................................................................................................................................................8P5 Assess exit or succession strategies for the company along with the benefits and drawbacksof each option.........................................................................................................................8CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11

INTRODUCTIONPlanning for growth is the strategic business activity that business owners carry out toplan and track organic growth in their revenue. Continuous planning is the opportunity for thebusiness to control future uncertainty and effective management task into more developed area.Present study will be based on Planning for growth that will be on David Nieper which is fashionretailer situated in UK. Now, the company planning to expand its business into online market.However, the study will outline the opportunities and threats company might have occurredduring its journey. Besides that, company also evaluate the growth matrix of Ansoff vector todetermine the new opportunities. Therefore, study also explains that how business gathered theirfunding and business opportunity.LO1P1 Analysing the key consideration for evaluating growth opportunities.Strategic growth is the key to get more success that helps to meet the company aims andobjectives (Bell, Bryman and Harley, 2018). In order to take the business at new level, DavidNieper needs to evaluate the market possibilities and choose the strategies accordingly. DavidNieper can use the Porter Generic model in order to gain the competitive advantage. All thestrategies or ways can help company to determine the different objectives and goals.Porter's Generic Strategies ModelCost Leadership: Cost Leadership is the initial strategy that is based on lowest costproducer in the industry. That means under this strategy, company can get the huge marketattention by offering lower possible price of products. Efficient logistics and low cost producercan helpful to maximize the company expenses. David Nieper can use this strategy option toenhance the business growth opportunity.Differentiation: Differentiation strategy is the another option to expand the growth of thebusiness (Bellavitis and et.al., 2017). In order to apply this form of strategic growth option,Company should need to implement some unique features in their product or services.Differentiation strategic tool is helpful to increase the high demand in the market. That gain thedifferent opportunity and growth in the competitive market. This method or tactic requiresattractive marketing to generate huge market growth. 1

Cost Focus: Cost focus tactic of business growth is more focused on the lowest possibleprice. In this strategy, the market has been choosing low cost and more focused on the lowestpossible prices. In this market analysis this will help to continue the long-lasting opportunity andtask to build up the new opportunity and gain.Differentiation Focus : In this opportunity and growth where the focus of the company is on theunique features rather than the cost (Bizri, 2016). This strategy often involves strong brandloyalty among the consumers.However, from the above given strategies, company should need to acquire costleadership strategy in order to develop the customer attention and attract huge market demand.PESTLE AnalysisPolitical: Political factor of the business affect the business function very often due tosudden changes in the political policies and rules and regulations in the context of specificindustries. In the context of E-commerce business, so there are several risk factors affecting thebusiness in direct or indirect manner. For example: changes in e-commerce policies could affectthe David Nieper business growth.Economical: Economic condition of the country depends on how many businesses andretailers earn profit. Economic factor is the most significant term in the business environmentthat affect the business into direct manner (Burns, 2016). For example: In the situation ofrecession, customer spending power has been decreased that direct affect the business profitratio. That holds the business growth and different advantageous to be more specific.Social: Social cultural factor to have a deep impact in e-commerce industry. That is themost important and leading business change. While it grows the business opportunity and task.However, changing trend or demand of the market can also affect the business and its demand aswell. Distinct cultural factors impact the business. In this context of business, David Nieperneeds to generate new business growth to expand the market opportunity and new developmentareas.Technological: Technological factor are the most essential feature for the industry. Thatmakes the business more challenging and growth. Technological changes arise growth for thebusinesses through they can easily get the better developing growth into the best possible manner(Daspit and et.al., 2016). However, the business needs to be more specific and leading businessgrowth.2

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